Chapter 6: Economic Impact of War

Question 1

What did Napoleon’s failure to invade Britain by sea in 1804 led him to?

Answer 1

Attempt to destroy Britain’s trade through economic warfare.

Question 2

Why did Napoleon want to destroy Britain through economic warfare?

Answer 2

Britain was not self-sufficient so if Nap could prevent Brit from importing raw materials and foods as well as exporting manufactured goods the country would be starved into surrender.

Question 3

How did Napoleon plan to destroy Brit economy?

Answer 3

Domination of European ports. November 1806 issued the Berlin Decrees, in which he proclaimed Britain to be in a state of blockade and forbade European trade with Britain. Milan Decrees extended this, threatened any ships entered British ports could subsequently be seized by the French.

Question 4

How did Britain respond to the Berlin Decrees in Januaey 1807?

Answer 4

Orders in Council. Stated that all countries which excluded British ships would be subjected to a British blockade, imposed restrictions on neutral ships trading with blockaded ports.

Question 5

What happened in the months following the Orders in Council, January 1807?

Answer 5

Months of tit-for-tat by Britain and France, each one ramping up the stakes. Both countries were intent on mutual destruction.

Question 6

How was Napoleon harming his farmers? Doing more damage to France than Britain.

Answer 6

Napoleon prevented French what from entering Britain which harmed his own farmers; consequently during the harvest shortages of 1808-1810 he allowed the export of French wheat, sabotaging his own blockade.

Question 7

How was Napoleon’s plan flawed? Apart from effect on farmers.

Answer 7

He could not successfully seal off the entire European coast from British ships and they continued to trade through certain ports. He had no control over Britain’s trade with rest of the world, so Britain turned to this.

Question 8

How did Napoleon turn the once compliant Spaniards against him?

Answer 8

Bullying tactics, marking the start of the Peninsular War.

Question 9

What can the start of the Peninsular Wars be marked as?

Answer 9

A decisive move as it drained France of men and material

Question 10

How did Pitt originally decide to pay for the French War?

Answer 10

Raising loans.

Question 11

Why, in 1797 did the Bank of England have to suspend cash payments?

Answer 11

To stem the fall in gold reserves and issue paper currency to avert a serious crisis. Money was borrowed in such large quantities at the start of the war that the price of government stock fell.

Question 12

What was the National Debt by 1801?

Answer 12

£456 million, risen from £228 million at the start of the War.

Question 13

How successful was the Sinking Fund during the War?

Answer 13

Although successful in eacetime, disastrous in War as price of borrowing money had risen, but Pitt would not go back on the Debt. National Debt rose to £876 million in 1815 and interest was burden on taxpayers.

Question 14

What did Pitt introduce in 1798?

Answer 14

Income tax, as an alternative to raising loans to pay for the War.

Question 15

What did Addington make more efficient in 1803?

Answer 15

Income tax.

Question 16

What did Pitt do in 1805?

Answer 16

Raised income tax on all incomes over £150

Question 17

How successful was the introduction of income tax?

Answer 17

Although initially less successful than anticipated, by 1806 it began to offset some of the high costs of the war and helped the country’s financial recovery. Unpopular amongst middle classes, who saw it as state interference in private affairs but it had the virtue of excluding the labouring classes.

Question 18

What was a key factor in Britain’s ability to continue the long wars with France?

Answer 18

The strength of the British economy. Industrialisation continued, stimulating the economy.

Question 19

What was the result on Industry of the huge demand for armaments?

Answer 19

Increased the demand for coal and iron.

Question 20

What did factories, irnworks and coalmines order due to the War?

Answer 20

Watt’s steam engine to improve the efficiency and speed of manufacture.

Question 21

What boosted the textile industry?

Answer 21

The army and the navy required uniforms. It was given a further boost by orders for uniforms and blankets from both Britain’s continental allies and enemies including France. Napoleon was obliged to lift blockade from time to time for much needed supplies of British greatcoats and boots for armies.

Question 22

What crisis was there in 1810 and 1811?

Answer 22

Economic and political crisis, caused by government insistence on continuing to issue Orders in Council.

Question 23

What did merchants and manuacturers regard the orders as?

Answer 23

Unnecessary government interference.

Question 24

When did merchants and manufacturers clamour for the orders to be removed?

Answer 24

When neutral US closed its ports to both British and French shipping.

Question 25

As a result of the US closing its ports, what did British merchants do?

Answer 25

Saw an opportunity to switch the trading to newly emerging South American countries eager for British goods. But boosted by instant success.

Question 26

What was the result of the instant success of manufacturers in South American countries?

Answer 26

Manufactuers over produced and within months faced the consequences of an economic collapse.

Question 27

Added to the economic collapse of manufactuers what hppened?

Answer 27

Consecutive harvests failed, several banks collapsed, there was a shortage of cash, an over-production of banknotes and inflation.