1857-1890: Trade and commerce Flashcards
Define mercantilism and protectionist
Mercantilism: System of regulations governing trade
Protectionist: Using tariffs on imported goods to regulate trade
What did the way of trade change to
Dismantled protectionist system, under the influence of Adam Smith’s “The Wealth of Nations”
To become free trade
How did Britain trade
Br would be in favour of free trade and were willing to threaten or coerce to achieve this. Br would mainly trade with its colonies. The rewards were mutual. As colonies already had a common language, currency and system of commercial law.
Br would buy raw materials from their colonies, use their industry to finished goods and sell them back to the colonies
How did trade grow
Many technological advancements in railways, steamships, underwater cables and telegraph lines
What are the 3 areas of infrastructure of trade
Ships and shipping
Railways
Canals and rivers
What was types of ships were used and why?
In 1860s sailing ships hit its highest state of efficiency in 1860s. The ships were fast and were ideal for low-volume, high-profit goods. Competition among clippers were fierce, and times were recorded in newspapers. Yet, the ships had short life-expectancy and had to be broken after 20 years of use.
For more bulky and heavy goods needed to be carried across oceans and up rivers, steamships were used. Br Iron-hulled ocean-going ships made more efficient by development of compound steam engine in 1850s (consumed less coal). Enabled steam ships to trade economically with distant possessions. 1850s onwards steamships companies reduced travel time from Br and West Africa to less than 3 weeks + increased cargo capacity. Opening of Suez Canal in 1869 and development of triple expansion steam engine in 1870s both help construction of steam carriers. Steamships also used inland. E.g. in 1870s Br companies send steam-trading vessels up Niger.
Why were railways important?
They were important as they were key to economic development, ensuring Br control. Br provided investment, engineers and rolling stock and colonies’ resulting dependence on Br was used to pressurise governments. Railways were largest single investment in self-governing settler colonies
How and why were Canals and rivers used
Internal river systems were an important means of transport for trading products and were focus of explorers’ quest to find accessible coastal areas of continents like Africa. To facilitate trade rivers may have been straightened, diverted and deepened, with large ecological effects. Canals may have been built to avoid hazardous stretches of water or provide waterways.
Example: In India new canals developed on a huge scale after 1857. In Canada after 1867 canals were deepened around St Lawrence/Great Lakes seaway system and the Welland Canal
What problems did railways face?
They encroached upon indigenous lands, disrupted long-standing ecologies and communities. They also led to displacement and forced removal of indigenous peoples. Railways were built with more strategic purpose in mind.
How did agriculture develop
Most colonial economies had some small-scale industrial development, were agricultural. Production of cheap foodstuffs and agricultural raw materials were cheaper than the already available in Europe.
The tropical colonies have goods that were not available in Br. Though production in these areas was small-scale. Farmers from indigenous populations were generally obliged to sell at whatever price they were offered. These were mostly very low.
Products might be grown on plantations. Indentured workers were paid low wages for hard, unpleasant work.
How did mining develop
One motive for Eu expansion was to exploit precious metals leading to them become an important trading commodity. Eu discovery of further mineral deposits in central and South Africa brought further colonial growth. What captured most attention was gold in South Africa. As Transvaal gold mines were found more skilled labourers migrated over there.
How did industry develop
There was a limited development of industry. Because of a small internal market and they could not compare with Br manufacture.
E.g. Indian textile industry was destroyed
Advantages: Undeveloped areas propelled to modernise
Disadvantages: Independent economic development was curbed
Role of charter companies
Charter companies used to organise trade in colonies until mid-1850s. Attitudes changed in 1870s due to challenges of European and American industrialisation, and the Long Depression.
