economic developments 1851-1886 Flashcards
high farming
switch to intensive farming to increase yields and profit
benefits of high farming
developments of railways mixed farming animal husbandry scientific farming artificial fertilisers machinery
mercantile ventures
Mercantile trade means the trade of wholesale or retail selling of commodities
invisible trade
the exchange of non-physically intangible items between countries.
visible trade involves the export, import, and reexport of physically tangible goods.
what was the great exhibition
demonstrated British wealth
exhibited successes: Lancashire cotton, Nottingham lace and steam machines
challenges in agriculture
repeal of the corn laws by Lord Derby introduced by Peel
depression 1873
value of international trade in 1800 compared to 1870
£300M -> £2000M
value of abroad investment 1840 compared to 1873
£160M -> £1000M
balance of payments
the difference b between revenue from exports and spending on imports
can be a surplus - revenue greater than spending
can be deficit - spending greater than revenue
during 1851-1868 why was there a negative balance of payment
due to surplus of imports carried on British ships, insured by British firms
railways effect on iron and steel industry
production of track and rolling stock
used in Crewe and Swindon repair centres
exports rose from 2,900,000 tons 1850-54 to 4,000,000 tons 1870-75
railways effect on the coal industry
aided distribution
enabled new coalfields to develop
railways effect on agriculture
enabled rapid transport of produce over greater distances
railways effect on manufacturing
enabled rapid transportation of gapped around the country and to ports for exports
exports of railroad machinery rose from 8600 tons 1850-54 to 44,100 tons 1870-75
what is an ironclad
highly advanced new type of battleship making earlier warships obsolete
why did cotton imports from US drop during the American civil war?
cotton was grown on the slave plantations of the Confederacy
the union blocked southern ports to cut off the confederacy exports
resulted in cotton famine in Lancashire
results of cotton famine
reduced production
loss of jobs
mill workers supported unions aim to end slavery
why was coal so important in the industrial revolution
industry being based on steam power
demand from increasing population
industries reliant on coal
powering trains and steamships
iron and steel
cotton industry
growth of coal production in tons 1855-70
60M -> 109M
with growth of demand and usage of coal resulting in what development?
new coalfields
ex South Wales
differences between Germany & USA and Britain
G and USA were mechanising
B was primarily using manual labour - hand extraction mining
characteristics of British mining
manual labour - hand extraction of coal
coal mines owned by private business = lack of investment in mechanised equipment
1/2M men employed in mines
best paid industrial workers
developments in iron and steel industries in 1859, 1856 and 1867
1850 George Parry improved the hot blast furnace by recycling some of the heat = iron works more profitable
1856 Henry Bessemer’s converter system = steel could be produced in larger amounts cheaper than the existing crucible system
1867 William Siemens devised open-hearth process
protectionism
the theory or practice of shielding a country’s domestic industries from foreign competition by taxing imports.
free trade
international trade without tariffs, quotas, or other restrictions
Adam Smith said about free trade 18th C
‘a system of a freely operating markets free from government intervention is the ideal economic model, as these markets would ensure competition that would rive down prices and benefit the consumer’
benefits of free trade
manufactures can operate at lower prices
decreased food prices
thriving manufacturing sector
low unemployment
critic of Adam smith
Alfred Marshall
Alfred Marshall said
‘people were as important as money; and services as important as goods’
arguments that 1873 was a depression
- profits were falling due to falling prices
- cut to costs, companies would lay off workers = unemployment rates increased
- global percentage share Britain held fell
- Germany x3 and USA x4 grew faster
- failure to adopt new industries
- European countries and USA protected their industries
- falls in profits = lack of money to invest in new premises and machinery
- British firms were smaller than USA and German companies
- British firms were headed by families of the man who started them whereas USA and Germany recruited on merits
arguments that 1873 wasn’t onset of depression
- falling prices were long-term trends in reducing the cost of production and fault of the government to alter the money supply
- trade unions unemployment was at 2% compared to 4.6% avg
- production of coal, iron, steel and cotton increased
- economy grew 1% annually
- foreign competition increased but Britain expanded new markers in developing world
- failure to invest but due to complacency and mismanagement by British businessmen not depression
- increase in retail: bicycles, telephone industries
- cost of living fell as prices fell, real wages increased
areas of visibility of a depression in agriculture
- weather issues declines harvests, ruined crops and led to disease among livestock: foot and mouth, liver rot and swine fever
- farming production and profits tumbled
- agriculture wages fell increasing the differences of living standards of industrial and agricultural workers
- Low prices were good for industrial workers but not agricultural workers as average earnings were 1/2 of industry workers
- some farmers switched to growing flowers over food produced as they could no longer make it profitable
- many among the landowning class dropped out of politics as no longer could afford/ take part and were replaced yb men from business and professionals
areas of agriculture shows there wasn’t a depression
- imports provided with the improvements made to shipping created the modern ‘traditional English breakfast’
- wheat from USA, Canada, India and Australia
- frozen meat from New Zealand, Australia and Argentina
- Bacon from Denmark
- farmers shifted from crop production to dairy, poultry and arable farming
- Britain mean struggled to compete on price but competed effectively on quality with foreign imports
what was Britains status in trade in the 1970s
30% of world trade was connected to Britain
what did the investment in railways to do industry
stimulated the engineering industry
linking industrial and commercial centres
increase use of machinery and new technologies
which decade was steam shipping and refrigeration on ships brought in?
1880s
what did steam ships and refrigeration add to trade market?
cheap meat imports into Britain from Argentina, Australia, and New Zealand
cereals: corn primarily increased imports from USA, Canada
brought cheaper and more varied foods but did challenge British farmers to increase competition
why did free trade become the dominant economic policy between 1851 and 1865?
- Peel was faced with a trade depression the previous Whig party couldn’t cope with
- despite agriculturalists opposition from fears of foreign competition
- 1842-45 taxes reduced = cheaper imports and cheaper to produce exports
- Peel saw this as increasing employment, wages and standard of living aided by his shift of burden with taxation
- income tax 1842 for the wealthier classes
protectionism
- protecting British economy from competition from other countries
- via taxation on imports, bans on specific commodities and restrictions on good not transported on British ships
who argued against protectionism in 1776
Dam Smith
published a book called ‘the wealth of actions’
argued for removal of taxes and artificial barriers
which party did Smith’s ideas influence
conservatives
tory governments backed Robert Peel as prime minister with free trade economic policy
what choice did Peel make in 1846 to split the conservative party
ending the corn laws which protected British agriculture
what was Gladstone’s role between 1852-55 and 1859-66?
chancellor
as chancellor what did Gladstone do in his two terms
reduced taxes on imports, exports and goods within the country
oversaw a trade treaty with France: Cobden Treaty - tripling trade with France
exports increased x4 between 1850s-60s
despite the majority of conservative MP’s opposition to Peels step to end the corn laws who abandoned agricultural protection
Peel’s successor Lord Derby
by which decade was free trade unchallenged?
1860s
when was the first steam-powered ploughs introduced
1857
impacts on industrialisation on agricultural industry early 1850s
expansion of railways
demand for skill workers to provide components
increase urbanisation
1851 consensus puts over 1/2 of population living in urban areas
how did urban areas show the Mid Victorian Boom
- Asa Briggs referred to urban areas as in a ‘age of unprecedented prosperity’
- New industrial buildings and town halls
- increase of ships in London, Liverpool and Bristols ports
- design of 1858 Great Eastern, largest ship ever built at 19,000 tons until 1901
why did Peel want to repeal the corn laws
as attempt to revive the British economy because of the deficit left by whigs
what did Norman Gash say about the cause of the Mid Victorian Boom
driven by the growth of the industrial sector
‘it was a unique position which could not last forever; but while it lasted Britain led the world economy’
factors alongside improvements to world trade that caused the boom
- agricultural prosperity from high farming allowed real price of food to fall so working class had improved diets
- confidence in the financial system encouraged more investment via bank charter act 1844
- 1844 companies act, improving confidence that new companies weren’t frauds
- expansion of railways
Banks charter act 1844
a reform of banks improving their sustainability with new regulations that would underpin the British banking system until the Great War 1914-18
event in USA 1861-65 impacting Britain
Civil War - resulting in ‘cotton famine’ in Lancashire and movement to short time working
short term issue - once ended supplies of cotton quickly resumed
short-time working
amount of time worked in the week is reduced because there is not enough work available for a full week
an alternative to reducing the workforce
class differences in benefits from economic prosperity 1850s - Emma Griffin
- landed elite making large profits from agriculture or mining
- middle class income via owning or working in businesses in services: medicine, law or education
- working class males work with their hands and pay varied
- working class females and children work at low-status, low-paid and open to exploitation
