Economic developments 1851-86 Flashcards
what challenges did agriculture face?
- a repeal of the corn laws (had protected British farmers against cheap imported corn)
- faced foreign comp as entered period of free trade
how did high farming methods 1853-73 bring real benefits?
- mixed farming meant that they could spread their risk on crop prices
- improved ploughs + hoes, horse drawn reaper
- animal husbandry, saw improvements to pedigree breeds eg Aberdeen Angus cattle
- scientific farming
- development of railways
how was international trade being transformed?
the development of the steamship + the railway
Britain had industrialised first giving it an advantage
what was one of the biggest growth areas for Britain?
invisible trade eg finance, banking, insurance
where was almost all shipping insured?
in the city of London
between 1851 - 68 what % did British trade make up?
25%
how did railways contribute to Britians growth?
- tracks increased from 9500km in 1850 to 22000km in 1875
- created jobs + growth in industries eg iron + steel, coal, agriculture + manufacturing
- railroad machinery exports from 8600 tons in 1850 to 44 100 tons in 1870
- benefitted from own railway expansion but also growth of railways in other countries
how did Britain benefit from shipbuilding?
- created lots of jobs in areas eg Glasgow, Belfast + Liverpool
- when the Suez Canal opened in 1869, British steamships were only narrow enough to fit through
- London alone saw opening of 5 new docks
- Britain led the way with naval technology
how did the American Civil war lead to ‘cotton faminie’
the union blockaded southern ports to cut off confederate exports
where was the cotton industry based?
Lancashire, one of the important in Br
why was coal vital in the industrial revolution?
- powered trains + steamships, iron + steal production and the cotton industry
- growing pop. needed more for heating homes + cooking food
what accounted for nearly half of Europes total production of steel?
steel produced in Sheffield which was 90% of British output
why did steel demand increase?
railway companies switched to using it for rails + shipping companies started to use it for metal plating their ships
economic policy under Gladstone + peel?
free trade, reduction of income tax and combining small finance bills into a single budget
economic policy under Gladstone + Disraeli?
public heath acts, factory acts, labour relations + trade union legislation
economic policy during the Great Depression?
agriculture + industrial slump, limited govt action, splits in the liberal party over social reform
how much did coal increase from 1856-70?
65 mill tons -> 110 milll tons
how much steel increase from 1850-75?
60,000 tons -> 2 mill tons
what % of world trade did Britain have in 1850 + 1875
20%
25%
what no. did agricultural labours fall by?
half a million between 1851-71, while employment in all key industries increased significantly
what aided the growth in demand?
Br population grew by almost 6 mill
what helped feed the boom?
br pursuing free trade + laissez faire economics
what two countries made Britain struggle to compete?
Germany + USA
why did Germany + USA grow more rapidly?
- larger populations + greater resources
- outperformed br in areas eg education (male illiteracy rate in Br 11% G 2%)
- br industries typically small compared to G + US so lacked capital to invest in new machinery
causes of the depression?
- increased comp.
- failed to match educational advances particular in science + engineering
- introduction of protective tariffs across Europe + US
- failure of Br industry to keep up with advances in technology + continue with old machinery
what was Britain described as in 1851?
‘workshop of the world’ -> many nations relied on Br for the majority of their industrial impairs
what is protectionism
taxes on imports + bans of the import of certain commodities + restrictions on trade + goods not transported in British ships
what is free trade
no taxes on imports
what PM moved to free trade after 1841?
Peele
in Gladstone’s first budget what did he do? 1853
abolished or reduced 200 import duties eg excise + stamp duty were reduced
he also promised a staged reduction of income tax over 7 years
what happened in Gladstone’s 1860s budget?
he lowered wine, brandy and silk duties
what happened in Gladstone’s 1861 budget?
abolished duties on sugar, tea + controversially paper. it was controversial as this would increase production of newspapers thus more available to working class, more educated, more reforms will be demanded
what was the Cobden treaty 1860?
commercial treaty signed by Br + Fr
it substantially reduced the duties which Br manufacturers , coal owners + iron owners had to any when importing to Fr. in return, France was able to export wine, cognac + silk to Br at very reduced rates
why was the Cobden treaty important?
big boost to Br economy as we could export more, enabled more jobs, less people unemployed
