Economic developments 1846-85 Flashcards
What does Peter Mathias say about the strength of the British economy on the world stage by 1851
Never before or since has a country dominated the world economy so much. Given the slow means of tech, the first nation to make this jump enjoyed a lead of two or three generations. As GB assumed this dominant role in the international economy, exploiting the unique advantages of a unique position, the prime dynamic of the economy became the industrial sector, and within that the export industries. A distorted industrial picture developed, with the few giant industries - textiles, coal, ship building and engineering - responding rapidly to the advantages of this very special position, with economy becoming dependent on the ability to sell cheap cloth, iron, machinery and coal, and to provide ships to carry these cargoes to the rest of the world
Give some statistics to show how Britain dominated the world economy at this time
- Produced over 40% of the total traded manufactured goods in the world
25% of the world’s trade passed through British ports
Regarded as the ‘workshop of the world’
Other countries (mostly colonies of the empire or nations financially dependent upon Britain) furnished GB with raw materials and foodstuffs for the growing pop
What was the great exhibition of 1851
Celebrated as a symbol of the inter dependent world economy: it was an international exhibition, with GB taking most of the prizes for industrial products and other nations for foodstuffs and raw materials
How was increased trade one of the spin offs of the 1851 Great Exhibition
Rapid increase in export orders and a growth in overseas markets. The growth in export trade continued almost unrivalled for the next 20 years. Period of unprecedented foreign demand for British goods. In every town and city, producers and manufacturers were working flat out to meet increasing orders.
Why was Britain referred to as the workshop of the world
Because it imported raw materials, manufactured the goods, and exported the finished products around the world
Where were all of these British exports going to
1/3 of all British goods were exported to the British Empire
Coal was exported to Europe
Many goods went to the US because its own industries were not sufficiently developed to cope with the demands of their rapidly increasing pop
When did this industrial and economic dominance on the global stage occur
Became apparent around the middle of the century and lasted until the 1870s
Describe how this economic growth was accompanied by technological advancement
Technological development occured in key industries like coal mining, iron and steel, engineering and the textile industry, leading to a rapid increase in production across the board
New tech and an increase in scientific knowledge led to agricultural improvements, generally referred to as the period of high farming
What economic principle did British governments remain committed to at this time
Laissez faire economics of limited interference in the workings of the market economy. Taxation was low and free trade was encouraged
Explain the Victorian virtue of self help that emerged at this time
The belief that honest hard work brought good results. The middle classes and the skilled working classes in particular enjoyed the results of hard work with higher incomes and increased consumption. Better education and public health. Living standards rose
How does Eric Hobsbawn counter this positive account
He says that ‘the stagnant mass of poverty at the bottom of the social pyramid remained’
Why can 1873 be seen as the end of this period of economic dominance
The economy was growing but at a slower rate
Imports were increasing against exports
Britain was beginning to face competition from newly industrialised nations like the US and Germany
GB needed to adapt to meet the challenge
Why was there fear in the farming community following corn law repeal
Fear that the price of domestic wheat would collapse against competition from foreign imports, and that farmers would be ruined
How did these fears turn out to be misplaced
By 1853 GB had entered a ‘golden age’ of agriculture, during which harvests produced successive high yields, prices were steady, farmers incomes increased and there was scientific and technological innovation and improvements were carried out
What does the expression ‘high farming’ mean
Been used to describe the practises adopted by many farmers during these years. Scottish farmer James Caird is often credited with introducing the term, though historian GE Mingay suggests the term was used by several agricultural writers at the time and probably stemmed from the early 19th century phrase ‘to farm high’ which meant ‘to achieve excellence in farming methods’
In 1849 Caird produced a pamphlet called high farming advising farmers on how to adapt their methods to cope with the possible fall in wheat prices. Called for more intensive farming, taking into account new methods and improvements, such as the drainge and fertilisation of the land.
What was the benefit of many farmers switched from purely arable to mixed farming at this time
It meant that they hedged their bets by growing wheat and root crops as well as keeping cattle, sheep ang pigs. They were therefore cushioned against any potential downfall in the price of either crops of livestock. Surplus crops fed the animals and animals’ manure fed the crops
Describe how livestock proved particularly important at this time
Increasing interest in animal husbandry. Some farmers specialised in breeding specific types of cattle such as Herefords and Aberdeen Angus, which proved excellent beef. Much of the profits in farming at this time came from this livestock rearing
How much was the artificail fertiliser industry worth by 1870
£8 million
Why
Increased scientific knowledge about them, such as the discovery of superphosphates
Guano was imported from Peru in large quantities
How much did the market for animal feedstuffs made from linseed and cotton seed grow
Worth £5 million by 1870
Why was the growth of these two industries beneficial for farmers
Made it easier for farmers to pursue mixed farming and specialise in either arable or livestock farming
What was the problem of poor drainage met with
The construction of clay pipe
The govt introduced loan schemes for farmers to invest in drainage pipe systems
What was the two main factors in the substantial improvement in crop yields at this time
Improved drainage
Increased use of fertilisers
Describe the labour force that farmers had at their disposal
Ready supply of labour as agricultural labourers were amongst the most poorly paid
Introduction of farm machinery was slow
Widespread use of the horse drawn reaper. There were better ploughs, seed drills and steam driven threshing machines to improve efficiency in crop production
What factors led to an increased demand for food and other land based produce
Steady pop growth
The rising prosperity and general rise in wages
What met this demand
Agricultural improvements
Why was the development of the railways beneficial for farming
Food could be transported quickly to the growing towns, where there was a ready and ever increasing market
Give some statistics to show how well farmers were doing by the early 1870s
Producing about 50% of the home consumption of wheat and 90% of meat
Dairy farmers supplied the home market with butter, milk and cheese
Describe how the living standards for farmers improved at this time
They benefitted from the increasing prices of their produce. With their huge profits they built themselves solid, spacious farmhouses and a comfortable lifestyle
Give an example of how not all areas of GB enjoyed this agricultural prosperity
In the remote north west of Scotland, farming was under resourced and ploughing and harvesting was still carried out by hand with the old Scots foot plough and the scythe
Why can we not let examples like this colour our judgement of agricultural improvement as a whole
For most of the country, the accessability of plenty of good, cheap, home-produced food helped improve the general health and raise the standards of living in GB
How was there an element of luck involved in the golden age of agriculture between 1850-73
An exceptional run of high yielding harvests during this period, which can be attributed to a long cycle of fine dry summers
How did things change in 1873
The fine dry summers came to an end, rains fell and farmers were faced with a catastrophic fall in prices. The farming industry entered a long period of economic downturn
Factors contributing to the mid victorian boom
Being that biggest colonial power meant that GB controlled vital sea routes to and from its colonies and other overseas markets
Being the first industrial nation meant that they had far outstripped other countries in establishing markets at home and abroad for their high quality goods
Plentiful supply of natural resources such as iron and coal which it had the technology to exploit
Forged ahead in design, engineering processes and production
Laissez had given British investors and innovators the freedom to develop their ideas
Pop rose from 27 million in 1851 to 35 million in 1881, providing a large workforce and expanding home markets
Mobility of the workforce and the carriage of goods was made possible by the extensive railway network across the country, which by 1875 linked every major town and sea port and facilitated industrial development
How to Gladstone facilitate the move towards free trade
Through his tariff reforms while he was chancellor in the 1850s and 1860s
What did these tariff reforms encourage
Overseas trading, which stimulated British industry
What were the two key industries in Britain that were at the centre of the expanding economy
Coal and iron
Why were coal and iron so important
All manufactured goods relied on them - coal to produce heat/steam and iron to make the machines that manufactured the goods
Why did textiles continue to be an important industry
Remained a staple and Britain was a big exporter of cotton cloth
How much did exports of textiles grow between 1840-79
1840 - £38 million
1879 - £119 million
How much did exports of iron and steel grow between 1840-79
1840 - £ 8 million
1879 - £35 million
How much did exports of coal grow between 1840-79
1840 - £1 million
1879 - £9 million
Describe the technological developments in the coal industry at this time
The introduction of the wire rope and the steam driven winding gear at the top of the coal shaft replaced the hemp rope and the system of horse gin and dealt more efficiently with the 600-800 ton daily haul of coal at some pits
The increasing demand for coal had implications for the organisation and running of the coal mines. Even during rapid industrialisation coal was still dug up by hand. The absence of mechanical progress could be blamed on the lack of a national plan, which was a consequence of the laissez faire approach, and the continuation of private ownership of coal mines
There was one serious attemot ti develop a coal cutting machine in Scotland in 1860 but this failed
Give some statistics to show the immense growth of the coal industry at this time
In 1850 the output of coal was around 50 million tons and by 1875 it was around 130 million tons and still rising
What stimulated this increased coal production
A drop in the price of coal coupled with an increase in demand
Coal was required to power steam engines and was intergral in the development of the railways
After 1850 steam power was used in most major industries
The development of iron hulled steam ships demanded coal to fire the ships engines and iron for their construction
As other countries industrialised, they imported coal from GB
Give some statistics to show how coal was in particularly high demand within the iron industry
Iron depended on it and by 1870 the iron industry was buying an entire 1/3 of the coal produced in Britain
What two technological developments were responsible for the significant increase in iron output from 1850 onwards
Neilson’s hot blast (1827)
Nasmyth’s steam hammer (1844)
What were the great engineering projects of mid Victorian GB, such as railways, bridges, iron steam ships and textile machinery and tools all dependent on
The continuous production of good quality iron
Give some statistics to show the rise in iron ore production at this time
Jumped from 9 million tons in 1855 to 15 million tons by 1875
Why did the use of steel in manufacturing increase during this period
Tougher and more versatile than iron. In the 1860s new processes enable steel to be produced quickly and cheaply and in large quantities, with the result that by 1870, many rail companies had replaced iron tracks with steel ones
What had the railways already become by 1850
One of the most important industries in GB
Why was laying track across the Scottish Highlands difficult
Costly exercise because of the difficult terrain and sparse pop
Why was this done despite these difficulties
As it linked remote areas of Scotland to the rest of Britain
What was most of the new rail track at this time intended to do
To set up suburban railways or branch lines, often linking seaside resorts to larger towns, and in this way was instrumental in creating an entirely new industry of tourism
What factors led to the development of precision engineering
Railway companies became concerned with producing better, faster and more reliable engines
Give some examples of prosperous railway towns that emerged at this time
Derby
Doncaster
Crewe
When was the Metropolitan line, the first London underground line opened
1863
How many passangers did it carry in its first year
10 million
Why did it make for an unpleasant ride
The smoke and fumes from the steel locomotive, together with the sickly smell of oil lamps om yje carriages
What was the ‘Bessemer process’
The first cheap industrial process for the mass production of steel; invented by Henry Bessemer
How did the Bessemer process aid the railway industry
The Bessemer steel rails gave a further boost to the industry by cutting production costs and increasing profits which then provided capital for further investment. These profits were often invested in railway building overseas in India, Canada, Argentina and the US and this export of capital was an indication of a booming economy
Give some statistics to show how the railways developed in terms of miles of track between 1860-75
1860 - 9000 miles
1875 - 14,500
Give some statistics to show how the railways developed in terms of passengers carried between 1860-75
1860 - 150 million passengers
1875 - 490 million passengers
Give some statistics to show how the railways developed in terms of tons of freight carried between 1860-75
1860 - 90 million
1875 - 200 million
Give some statistics to show how the railways developed in terms money from ticket sales between 1860-75
1860 - £12 million
1875 - £24 million
Give some statistics to show how the railways developed in terms of money from freight charges between 1860-75
1860 - £14 million
1875 - £32 million
Where was Britain facing a challenge in terms of its shipping domination
From American sailing boats, especially on the Atlantic route
Why were steam ships not taken advantage of at this time
Because they were expensive to build and run
What was the most important stimulus for the post 1850 increase in ship building
The increase in world trade. This coincided with the massive increase in the production of cheap iron and later steel, making it possible for GB to forge ahead in the development of steam ships and to monopolise the shipping routes
Why was the opening of the Suez Canal beneficial in 1869
Drastically cut the journey time from the west to India, China and Australia
It was too narrow to allow a large sailing ship to tack through it and this gave a further boost to the British steam ship
Give a statistic to show the development in the shipping industry at this time
Between 1850 and 1880 the tonnage of steam ships registered in GB rose from approximately 320,000 tons to over 3 million tons
What did the textile industry depend upon the production of
Cotton and wool
What proportion of GB’s exports did textiles account for by 1851
almost 2/3
How did the importance of textiles progress over time
Remained a major industry but its rate of progress was slower. Its share of the export market began in 1860, as the export of other commodities such as coal, iron and steel and machinery rose. However, British manufactured cotton cloth still accounted for 2/3 of cotton sold in world markets until 1900
What staple industries was GB able to build up at this time
Coal
Iron and steel
Engineering
Shipping
Textiles
What kind of economic growth rate did these industries produce
Around 2% per year
Why was the growth of these industries beneficial
Output far beyond requirements for home consumption. As a result of the growing demands for British goods abroad, they created a boom in the British export market and accounted for almost all of GB’s exports. The profits raised provided capital for further investment at home and overseas
How did this international trade impact foreign policy
Cemented GB’s relationship with foreign countries and increased its influence abroad, and the dependence of nation upon nation promoted peace. This chimed with Gladstone’s policy of maintaining peace, which further encouraged economic stability
Give an example of how Britain’s potential economic rivals were distracted by war at this time
American Civil War (1863-6)
Franco-Prussian War (1870-1)
What Gladstonian policy undoubtedly aided this sustained economic growth
Free trade
How else did Gladstone’s economic policy aid industry
His reduction of taxation was made possible by the vibrant economy and this allowed entrepreneurs and businessmen to build up private fortunes and the wealth of the nation by investing large sums of capital in industrial enterprises at home and abroad
What was the problem with this wealth creation through the aggregation of profits
It meant that the newfound wealth was distributed unevenly
What must the high employment rate in these industries be caveated by
The fact that there was still unemployment and poverty
Why can economic growth be seen as a virtuous circle at this time
Those in work created extra demand within the economy because of their increased wages lending them a newly acquired spending power and desire for consumer goods that hepled fuel further prosperity
What did the end of G’s first ministry coincide with the onset of
Depression
Why was this depression more than just an end to a sustained period of growth
There was a fundamental change in Britain’s special position, as its supremacy in global markets was being challenged by a newly united Germany and a rapidly expanding US economy
What does Keith Robbins say about this ‘depression’
If by depression we mean a failure to sustain previous growth rates then there was one, but this does not mean that there was economic decline.
