Impact of Empire - The Economic Impact Flashcards

1
Q

What event occurred in February 1722 involving a Royal Navy warship and Bartholomew Roberts?

A

The Royal Navy warship attacked the fleet of Bartholomew Roberts, resulting in Roberts’ death.

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2
Q

What happened to the captured crew members after Roberts’ fleet was attacked?

A

Some were executed, while others were enslaved and forced to work for the Royal African Company.

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3
Q

Why did merchants pressure Parliament to pass the Act for the Suppression of Piracy in 1722?

A

Merchants were losing valuable ships and cargo, particularly in the slave trade, as pirate crews captured nearly 100 slave ships, disrupting the triangular trade.

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4
Q

What was the fate of the crew members who escaped from Bartholomew Roberts’ fleet?

A

Many were captured and taken to Cape Coast Castle, where some were executed and others were enslaved.

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5
Q

How did pirate crews disrupt the triangular trade?

A

Pirate crews captured slave ships, causing significant losses to merchants involved in the slave trade.

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6
Q

What was the monetary value of the ships and cargo lost due to piracy in the early 1720s?

A

The losses were estimated to be over £100,000, equivalent to about £14 million today.

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7
Q

What was the main purpose of Cape Coast Castle?

A

Cape Coast Castle primarily served as a fortress to imprison captured African women, men, and children and load them onto ships for slavery.

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8
Q

How was Cape Coast Castle defended?

A

It had 4-metre-thick brick walls and was defended by 74 cannons pointing across the ocean in case of attacks by the Dutch or French.

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9
Q

What resources were exchanged at Cape Coast Castle?

A

Ships exchanged cargoes for gold, ivory, mahogany hardwood, and spices, in addition to loading human beings captured for slavery.

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10
Q

What were the conditions like for the captured individuals held at Cape Coast Castle?

A

They were forced to spend weeks or even months in disease-ridden, overcrowded, windowless underground slave holes.

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11
Q

What was one of the reasons Europeans sailed to West Africa?

A

Africa’s wealth in resources such as gold, ivory, mahogany hardwood, and spices attracted European traders to the region.

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12
Q

In addition to serving as a fortress, what other activities took place at Cape Coast Castle?

A

In addition to imprisonment and loading slaves onto ships, some ships exchanged cargoes for valuable resources to take back to England.

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13
Q

What was the Royal African Company (RAC)?

A

The Royal African Company was a business created by the Stuart royal family and their associates for their personal gain, with a monopoly on English trade with Africa.

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14
Q

Where did the RAC’s profits go?

A

A large portion of the profits went to King Charles II, brother of James II, who was the king at the time, through the monopoly on trade with Africa.

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15
Q

What was the significance of the elephant and castle logo of the Royal African Company?

A

The logo was used by the Royal African Company and became associated with many London pubs and eventually an area of south London.

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16
Q

How did Europeans establish control over the land in Africa where they traded?

A

They did not conquer and control the land but instead obtained permission from local rulers to build forts and conduct trade along the coast.

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17
Q

What were the key statistics regarding the Royal African Company’s activities between 1672 and 1713?

A

During that period, the RAC sent 500 ships to Africa, exported goods worth £1.5 million, bought 125,000 Africans, with one-fifth dying on the ocean journey, and 100,000 sold to planters in the Americas.

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18
Q

What event led to the end of the Royal African Company (RAC) monopoly?

A

The Glorious Revolution of 1688 provided English merchants and businessmen with the opportunity to end the RAC monopoly.

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19
Q

What was the argument made by merchants and entrepreneurs to end the RAC monopoly?

A

They argued that opening up the Africa trade to independent companies would lead to increased business and profits flowing back to England.

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20
Q

What happened to the RAC’s monopoly in 1698?

A

The Royal African Company lost its monopoly, and the triangular trade was opened up to private businesses.

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21
Q

How did the triangular trade benefit those involved?

A

The ships carried goods from England to exchange for enslaved Africans, who were then transported to the Americas and sold. The ships then returned to England with cargoes of sugar, tobacco, and other goods to sell.

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22
Q

What job opportunities did the ‘FACTORIES’ (trading centers) on the African coast provide?

A

The factories employed various skills, including administrators, clerks, soldiers, sailors, doctors, carpenters, cooks, and gardeners.

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23
Q

How did the Royal African Company employ free Africans?

A

They had free Africans on their payroll, some of whom maintained the factories, while others served as soldiers.

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24
Q

How did the demand for goods from the Americas impact the slave trade?

A

As the demand for goods such as sugar, tobacco, and other products from the Americas grew in Britain, the demand for labor also increased, leading to the capture and enslavement of millions of Africans.

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25
Q

What impact did the ACCESSION of William III have on the slave trade?

A

While the ACCESSION of William III was beneficial for English commerce, it was disastrous for Africans who suffered from economic, political, and humanitarian consequences due to enslavement.

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26
Q

What were some consequences of the slave trade on African communities?

A

The slave trade caused wars between communities as they fought each other to capture prisoners of war to sell to Europeans, leading to further destabilization and conflict.

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27
Q

Which age group was primarily affected by the slave trade?

A

The slave trade primarily targeted young adults, the strongest and most productive age group, causing significant demographic impacts on African societies.

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28
Q

How did the demand for labor in the Americas impact the scale of the slave trade?

A

The demand for labor in the Americas led to the capture and enslavement of millions of Africans to meet the increasing labor demands of industries such as sugar and tobacco production.

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29
Q

What were some consequences of the slave trade beyond economic considerations?

A

The slave trade also had political and humanitarian consequences, including the destabilization of African communities through wars fought to capture prisoners for sale to Europeans.

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30
Q

What characterized the new system of chattel enslavement introduced by Europeans in West Africa?

A

Chattel enslavement treated enslaved individuals as property that could be bought and sold, disregarding their humanity.

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31
Q

How did the arrival of Europeans impact the traditional system of slavery in Africa?

A

While slavery existed in Africa before European arrival, the new system of chattel enslavement differed by dehumanizing enslaved individuals and treating them as property.

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32
Q

What were some consequences of the European-dominated global system on West Africa?

A

The West African economy became dominated by a system that created vast profits for Europeans at Africa’s expense, leading to devastating humanitarian effects, decline of traditional industries, and loss of population.

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33
Q

What role did wars play in contributing to the slave trade in West Africa?

A

Wars between states, often fought with guns bought from Europeans, resulted in the capture of many individuals who were then sold into chattel enslavement.

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34
Q

How did the slave trade impact the economic gap between Europe and Africa?

A

The slave trade widened the economic gap between Europe and Africa by weakening Africa, taking away young and able-bodied individuals, and strengthening Europe.

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35
Q

What were some traditional African industries that declined or dissolved due to the slave trade?

A

Traditional African industries along trade routes crossing the continent from east to west and from south to north declined or dissolved as a result of the slave trade.

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36
Q

What was the Treaty of Utrecht, and when was it signed?

A

The Treaty of Utrecht, signed in 1713, marked the end of the War of the Spanish Succession and established Britain as the major slave-trading nation.

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37
Q

What was the purpose of the Treaty of Utrecht for Spain and other European colonial powers?

A

Spain, like other colonial powers, sought cheap labor from Africa for its plantations, but it was restricted by a treaty signed with Portugal in 1494.

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38
Q

What was the significance of the Asiento agreements mentioned in the Treaty of Utrecht?

A

The Asiento agreements allowed Spain to obtain slaves from Africa through agreements with other nations, such as Britain, which granted them control over the slave trade

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39
Q

How did the Treaty of Utrecht benefit Britain in terms of the slave trade?

A

Britain gained control over the Asiento, granting them the right to supply slaves to Spanish colonies for 30 years, which in turn allowed Britain to dominate the Atlantic trade.

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40
Q

What did the British government do with the rights granted under the Treaty of Utrecht?

A

The British government passed the rights to supply slaves to Spanish colonies to the newly created South Seas Company.

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41
Q

What did the South Seas Company receive in exchange for supplying slaves to Spanish colonies?

A

In exchange for supplying human beings, the company received gold and silver bullion from Spain, which could be used in trade with India.

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42
Q

What were some challenges faced by the triangular trade?

A

Challenges included resistance in Africa from rulers opposing human trafficking, uprisings on slave ships, and piracy resulting from lay-offs in the Royal Navy after the War of the Spanish Succession.

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43
Q

What resistance did African rulers pose to the slave trade?

A

Some African rulers opposed human trafficking and even attacked and destroyed European forts, while kidnapped individuals attempted to run away from captivity.

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44
Q

How did lay-offs in the Royal Navy contribute to piracy?

A

Lay-offs in the Royal Navy led to an excess of sailors seeking jobs, resulting in reduced wages and poor working conditions, prompting many sailors to become pirates.

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45
Q

What were some examples of uprisings on slave ships during the triangular trade?

A

Examples include the 1729 uprising on the Clare, where captives forced the crew off the ship and reached safety, and the 1730 uprising on the Little George, where captives sailed the ship up the Sierra Leone River and escaped.

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46
Q

How did conditions on slave ships contribute to the rise of piracy?

A

Appalling treatment of sailors, including low wages, poor quality food, and high death rates, led many sailors to choose piracy as an alternative, resulting in mutinies on slave ships and the formation of pirate crews.

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47
Q

What was the impact of the 1722 law against pirates on the pirate crews?

A

The law against pirates ended the democratic and non-racial structures of some pirate ships, forcing many pirates to operate under harsher conditions and perpetuating a fabricated image of pirates as scary and bloodthirsty.

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48
Q

What was the initial state of Barbados before English and Dutch settlers arrived in the 1620s?

A

Barbados was uninhabited after the original inhabitants were killed or died of disease following the Spanish invasion a century earlier.

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49
Q

How did settlers in the Caribbean, such as in St Kitts, acquire land for cultivation?

A

Settlers in places like St Kitts seized land from native populations, such as the Kalinagos, and started clearing it for cultivation.

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50
Q

What were some of the crops initially experimented with by settlers in the Caribbean?

A

Settlers in the Caribbean experimented with crops such as tobacco and cotton before eventually switching to sugar cane.

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51
Q

What prompted the switch from tobacco to sugar cane in Barbados and other Caribbean islands?

A

The poorer quality of tobacco grown in Barbados, coupled with the fertile, well-watered soils, prompted planters to switch to sugar cane, which grew well in those conditions.

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52
Q

How did plantation agriculture evolve in the Caribbean by the 1690s?

A

By the 1690s, plantation agriculture in the Caribbean, particularly in Barbados, had evolved into efficient and thriving businesses, with larger plantations owned by richer landowners and merchants.

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53
Q

What impact did plantations in Barbados and Virginia have on the development of agriculture in North America and the Caribbean?

A

Plantations in Barbados and Virginia set the model for plantation agriculture across the North American eastern seaboard and the islands of the Caribbean, shaping the economic and social landscape of the region.

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54
Q

What is the middle passage?

A

the journey from Africa to the Caribbean endured by enslaved Africans.

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55
Q

What characterized the plantation workforce in Virginia and Barbados in the mid-seventeenth century?

A

In the mid-seventeenth century, the plantation workforce in Virginia and Barbados consisted of more indentured workers or convicts than enslaved Africans.

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56
Q

What were some advantages for planters in employing White workers instead of enslaved Africans?

A

Advantages included shared language with masters, lower cost (half the price of enslaved Africans), and the potential for positive and hardworking attitudes due to hopes of a better future once freed.

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57
Q

What factors contributed to the rising proportion of Africans on plantations by the end of the seventeenth century?

A

By the end of the seventeenth century, the proportion of Africans on plantations was rising fast due to factors such as increasing demand for labor and declining availability of White indentured workers or convicts.

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58
Q

What challenges did indentured workers often face, particularly in the Caribbean?

A

Indentured workers often faced harsh treatment and high mortality rates, especially in the Caribbean, where many died of disease.

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59
Q

What is meant by the term “plantocracy”?

A

The term “plantocracy” refers to societies in the Caribbean and North American colonies that were controlled and governed by wealthy planters, backed by military force and the law.

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60
Q

How did the plantation system evolve over time?

A

The plantation system evolved from smallholdings to large plantations dominated by wealthy merchants and businessmen who bought up smaller farms.

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61
Q

What factors contributed to the support of the plantation economy by the government in London?

A

Factors included access to valuable raw materials, new markets for British goods, work opportunities, economic and strategic advantages over other European powers, large profits for businesses, and revenue through taxation.

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62
Q

What was the economic significance of Barbados in relation to plantation economies?

A

Barbados became Britain’s richest colony and demonstrated the economic viability of large plantations.

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63
Q

How were plantations organized as businesses?

A

Plantations were highly organized businesses that utilized the latest technological advances and were geared towards maximizing profit in every aspect of their operations.

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64
Q

What were some reasons for the strong support of the plantation economy by the government in London?

A

The government supported the plantation economy for reasons such as economic prosperity, strategic advantage, revenue generation through taxation, and expansion of the British empire.

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65
Q

What role did the slave trade play in providing labor for plantations?

A

The slave trade provided plantations with permanent, indefinite free labor, facilitating the need for cheap workers.

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66
Q

What pressures did farmers face regarding slave ownership?

A

Fierce competition led many farmers to feel pressure to own enslaved workers, as stated by the council of St Kitts planters in 1680 comparing it to the Egyptians making bricks without straw.

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67
Q

What were some conditions faced by enslaved Africans on plantations?

A

Enslaved Africans in Barbados were unpaid and had to grow half their own food on small plots they were given, minimizing the cost of maintaining them.

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68
Q

What were the economic benefits for plantation owners in training enslaved Africans?

A

Plantation owners could reap the rewards of training an enslaved African for the rest of their lives, as their labor was permanent and free.

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69
Q

How did the economic calculation regarding enslaved Africans’ value play out in Jamaica?

A

In Jamaica, the purchase price of an African in 1695 was £20, yet they could produce £20 worth of sugar in one year and continue to work for many years, all for the owner’s gain.

70
Q

Who benefited economically from the labor of enslaved Africans on plantations?

A

Everyone involved in the process, except for the enslaved Africans themselves, stood to make great profits, from plantation owners to traders involved in the slave trade.

71
Q

What are some arguments against the economic success of plantations according to one perspective?

A

According to this perspective, enslaved Africans were not motivated to work hard as they were not paid, and the system was difficult to manage due to frequent rebellions and runaways.

72
Q

What are some arguments in favor of the economic success of plantations according to another perspective?

A

According to this perspective, plantations were efficient, modern businesses that generated far more profit from enslaved workers than the cost of buying them, and they paved the way for the industrial age.

73
Q

What was one reason cited for the eventual abolition of the slave trade according to one perspective?

A

According to one perspective, investors realized that the slave system was not as profitable as initially thought, which contributed to the eventual abolition of the slave trade.

74
Q

What role did enslaved workers play in the profitability of plantations, according to another perspective?

A

According to another perspective, enslaved workers produced far more profit over their lifetimes than the cost of buying them, contributing significantly to the profitability of plantations.

75
Q

What factors contributed to alliances between English, Scottish, and Irish workers and enslaved Africans?

A

Many English, Scottish, and Irish workers came from a tradition of struggle against upper classes, leading to strong bonds of class with enslaved Africans that often surpassed racial differences.

76
Q

How did planters respond to uprisings involving both servants and enslaved Africans?

A

Planters took measures to separate servants from enslaved Africans through treatment and laws, with Africans often facing more severe punishment than Europeans.

77
Q

What was the outcome for European laborers compared to Africans in the Caribbean?

A

European laborers were only temporarily enslaved due to a growing traffic in enslaved Africans and a shortage of skilled workers in Europe, while Africans faced permanent slavery for themselves and their descendants.

78
Q

How did escaped Africans in Jamaica resist plantation owners?

A

Escaped Africans formed communities of runaways known as Maroons in the central mountains of Jamaica, where they welcomed others and fought guerrilla wars against plantation owners until a compromise treaty was signed in 1739 to end the First Maroon War.

79
Q

What was a response to the 1712 slave rebellion in New York?

A

After the 1712 slave rebellion in New York, some members of the Pennsylvania Assembly proposed freeing all slaves in the colony, although the proposal was rejected, marking the first challenge to slavery by a representative assembly.

80
Q

What measures were proposed by the Pennsylvania Assembly following the 1712 slave rebellion in New York?

A

The Pennsylvania Assembly proposed imposing a high charge on buyers for each enslaved person, although the effectiveness of this measure was limited by higher authorities.

81
Q

What were the main commodities traded in Yemen along merchant shipping routes?

A

Yemen traded in spices, coffee, tea, and textiles, with coffee becoming particularly popular among European high society.

82
Q

What factors contributed to the growth of English (later British) power and influence in Yemen and other trading regions?

A

English (later British) power and influence grew in trading regions like Yemen due to business skill, military force, and corrupt dealings.

83
Q

How did the trade in coffee contribute to competition among European nations?

A

Coffee became a precious commodity that fueled competition among European nations like England, the Netherlands, and Portugal, who were vying for dominance in trade routes.

84
Q

What role did Yemen play in the merchant shipping routes between China, India, and Europe?

A

Yemen was strategically located along merchant shipping routes, dealing in various commodities and serving as a hub for trade between China, India, and Europe.

85
Q

What transformation occurred in Britain’s presence in India over time?

A

What began as a commercial venture for economic reasons eventually developed into the beginnings of an empire, with Britain’s presence in India becoming the heart of its Asian operations.

86
Q

When was the East India Company formed, and by whom?

A

The East India Company was formed in 1600 by a royal charter from Queen Elizabeth I.

87
Q

What was the original intention of the East India Company?

A

The original intention of the East India Company was to carry out trade with South and Southeast Asia, focusing on regions such as India, China, and other ports along shipping routes between those areas and England.

88
Q

What was the primary goal of the East India Company in establishing trade routes?

A

The primary goal was to rival the Portuguese, who controlled trade in regions such as India and China at the time.

89
Q

Who granted the royal charter to the East India Company, and in what year?

A

Queen Elizabeth I granted the royal charter to the East India Company in the year 1600.

90
Q

Which regions did the East India Company focus on for trade, according to its original intention?

A

The East India Company focused on regions such as India, China, and other ports along shipping routes between those areas and England for trade.

91
Q

What was the competitive objective of the East India Company in establishing trade routes?

A

The competitive objective was to rival the Portuguese, who dominated trade in regions targeted by the East India Company at the time.

92
Q

What type of business structure was the East India Company?

A

The East India Company was a joint-stock company with wealthy shareholders and no direct government involvement.

93
Q

How were directors selected in the East India Company?

A

Directors were selected every year, and there were 24 of them involved in the day-to-day running of the company on a part-time basis.

94
Q

What powers and privileges did the East India Company possess?

A

The East India Company had the power to mint its own money, run its own justice system, wage war, and it was granted a monopoly of English trade in Asia.

95
Q

What were some important features of the East India Company’s structure?

A

Some important features included equal voting rights for shareholders, annual selection of directors, and a part-time involvement of directors in the company’s operations.

96
Q

How did the East India Company initially fare in comparison to state-sponsored Portuguese and Dutch companies?

A

Initially, the East India Company struggled in competition with state-sponsored Portuguese and Dutch companies, which were more successful.

97
Q

What expansions and challenges did the East India Company face by 1688?

A

By 1688, the East India Company had bases in Surat, Madras, and Bombay in India, but it also faced near-collapse in the following years.

98
Q

What was one of the biggest challenges the East India Company faced?

A

One of the biggest challenges the East India Company faced was its relations with the Indian government.

99
Q

Who ruled India during the time of the East India Company’s operations?

A

India was ruled by Muslim Mughal emperors during the time of the East India Company’s operations.

100
Q

How did British companies address the problem of India’s lack of interest in English goods?

A

British companies addressed the problem by having access to gold and silver bullion from America, which India was interested in due to the slave trade and later the asiento.

101
Q

What were some of India’s resources that were in demand in England?

A

Some of India’s resources in demand in England included spices, tea, and fine textiles.

102
Q

How did the economic size of India compare to Britain during the time of the East India Company?

A

India had a far larger economy than Britain during the time of the East India Company.

103
Q

Who were the rulers of India during the time of the East India Company?

A

India was ruled by Muslim Mughal emperors during the time of the East India Company.

104
Q

What event led to the outbreak of the Anglo-Mughal War in 1686?

A

The collapse of negotiations for a firman (a directive granting special trading rights) between the East India Company’s representative and the Mughal emperor Aurangzeb led to the outbreak of the Anglo-Mughal War in 1686.

105
Q

Who interfered with negotiations between the East India Company’s representative and Aurangzeb, leading to the collapse of talks?

A

The governor of the East India Company in London, Sir Josiah Child, interfered with the negotiations, leading to the collapse of talks between the Company’s representative and Aurangzeb.

106
Q

What was the outcome of the Anglo-Mughal War for the East India Company?

A

The East India Company surrendered at the end of the war and was forced to pay a huge fine by Aurangzeb in return for trading rights.

107
Q

What significant outcome resulted from the Anglo-Mughal War for the East India Company?

A

One significant outcome was the establishment of a new factory in Bengal in 1690, which laid the foundation for the city of Calcutta (now Kolkata), where Britain would later rule India from for 200 years.

108
Q

How did Aurangzeb view the East India Company’s actions during the Anglo-Mughal War?

A

Aurangzeb viewed the East India Company’s actions during the war as rendering the British nation ridiculous and contemptible in all parts of India.

109
Q

Who was the Mughal emperor during the time of the Anglo-Mughal War?

A

The Mughal emperor during the time of the Anglo-Mughal War was Aurangzeb.

110
Q

What events led to the decline of the East India Company (EIC) between 1688 and 1700?

A

Several events contributed to the decline of the East India Company (EIC) during this period, including resistance to change, parliamentary action, corrupt dealings, the attack by English pirate Henry Every on a Mughal treasure ship, protests by weavers, the establishment of a new trading company by parliament, and legal restrictions on importing Asian cloth into England.

111
Q

What action did parliament take regarding the East India Company’s monopoly?

A

Parliament passed a resolution asserting equal rights to trade in the East Indies, effectively breaking the East India Company’s monopoly.

112
Q

What significant event occurred in 1695 involving a Mughal treasure ship and English pirates?

A

In 1695, English pirate Henry Every attacked and captured a Mughal treasure ship on its way to Surat, resulting in a breakdown in relations with the Mughal emperor and an outcry in England against the pirates.

113
Q

How did the Glorious Revolution affect the East India Company?

A

The Glorious Revolution prompted merchants and businessmen to seek an end to the East India Company’s monopoly, leading to parliamentary action and a series of blows to the company.

114
Q

What action did parliament take in 1698 regarding trade with Asia?

A

Parliament set up a new company to trade with Asia in 1698, signaling further challenges to the East India Company’s dominance.

115
Q

What were some of the reasons for the decline of the East India Company during this period?

A

Reasons for the decline included corrupt dealings, the attack by English pirates, protests by weavers, legal restrictions on importing Asian cloth, and competition from new trading companies established by parliament.

116
Q

How did the East India Company (EIC) continue to operate after parliament’s actions in 1698?

A

The East India Company (EIC) continued to operate by buying up shares in the new trading company and ultimately merging with it in 1702, forming the United Company of Merchants Trading to the East Indies.

117
Q

What was the result of the merger between the East India Company and the new companies in 1702?

A

The merger resulted in the formation of the United Company of Merchants Trading to the East Indies, effectively continuing the operations of the East India Company with renewed strength and a monopoly.

118
Q

How did the East India Company cope with the ban on imports of Indian cloth?

A

The East India Company coped with the ban on imports of Indian cloth by trading it for enslaved Africans on ships sailing to Cape Coast.

119
Q

What actions did the directors of the East India Company take during the three-year grace period given by parliament?

A

During the three-year grace period, the directors of the East India Company bought up shares in the new company and continued their operations.

120
Q

How did the East India Company expand after the 1702 merger?

A

After the 1702 merger, the East India Company expanded its trading network and military force, centered on its growing base in Calcutta.

121
Q

What was the name of the company formed after the 1702 merger?

A

The company formed after the 1702 merger was called the United Company of Merchants Trading to the East Indies.

122
Q

How did the East India Company (EIC) expand its operations across Asia?

A

The East India Company expanded its operations across Asia by employing large numbers of seamen from various ethnic backgrounds and offering employment opportunities for British administrators.

123
Q

What proportion of seamen on the ships of the EIC were from Bengal by 1700?

A

By 1700, Lascars from Bengal made up about a quarter of all seamen on the ships of the East India Company (EIC).

124
Q

What employment opportunities did the EIC offer for British men?

A

The East India Company offered employment opportunities for British men as administrators, which attracted many individuals, especially those from less well-off backgrounds and Scots after 1707.

125
Q

What cultural mixing was common within the East India Company in India?

A

Within the East India Company in India, cultural mixing was common, and many British men married Indian women due to the scarcity of British women.

126
Q

What is the legacy of mixed relationships during the period of EIC rule in India?

A

The legacy of mixed relationships during the period of EIC rule in India includes the existence of thousands of Anglo-Indians descended from such unions, reflecting the cultural diversity and intermingling of British and Indian societies.

127
Q

What new markets did the East India Company (EIC) create, and how did it profit from them?

A

The East India Company created new markets, especially in the opium trade, by growing poppies in north-eastern India and exporting opium to China. It profited from opium addiction in the East and tea addiction in the West.

128
Q

How did the decline of the Mughal Empire contribute to the East India Company’s success?

A

The decline of the Mughal Empire, marked by wars between nobles and peasant uprisings, weakened Mughal rule. This allowed regions such as Bengal and Hyderabad to claim self-rule, while the central Mughal army became weaker. The East India Company exploited this situation to extend its power and influence.

129
Q

What was the impact of the opium trade on Chinese society?

A

The opium trade facilitated by the East India Company led to widespread drug addiction in China, causing devastating effects on Chinese society.

130
Q

What was the significance of the firman granted by the Mughal emperor Farrukh Siyar to the East India Company in 1717?

A

The firman granted the East India Company the right to trade duty-free throughout the Mughal Empire in exchange for a small annual payment, further extending the Company’s influence and control in India.

131
Q

What led to the creation of the Bank of England in 1694?

A

The need to raise a loan of £1.2 million by the government, combined with the desire of merchants influenced by Dutch banking ideas to promote private business growth, resulted in the establishment of the Bank of England.

132
Q

What was the role of the Bank of England in relation to the National Debt?

A

The Bank of England was granted a monopoly on the issuance of banknotes in exchange for lending money to the government, effectively creating a new National Debt owed by taxpayers rather than the monarch.

133
Q

How did the Bank of England operate in terms of lending and receiving deposits?

A

The Bank of England lent money to the government at an interest rate of 8 percent and a flat rate fee, while also being able to lend to the public and smaller banks, and receive deposits. It became the primary storage place for Britain’s bullion.

134
Q

What impact did the National Debt and the Bank of England have on British society and the economy?

A

The National Debt, facilitated by the Bank of England, financed the wars of the eighteenth century and led to the growth of a new banking system and expansion of credit, contributing to the Industrial Revolution. However, it also resulted in a significant transfer of wealth from colonies and taxpayers to a minority.

135
Q

What was the significance of the Nine Years’ War and the War of the Spanish Succession in relation to the National Debt?

A

The Nine Years’ War cost 18 million (equivalent to 3.6 billion today), and the War of the Spanish Succession cost 50 million, half of which was added to the National Debt, which reached 54 million by 1717, amounting to 60 percent of Britain’s gross domestic product.

136
Q

How did the banking system contribute to industrial progress during this period?

A

The banking system enabled borrowing money on credit, allowing companies to plan long-term projects. Additionally, the wealth accumulated by bankers and merchants was invested in businesses and used by entrepreneurs, kick-starting the Industrial Revolution in the mid-eighteenth century.

137
Q

What role did the rebuilding of the military, especially the navy, play in stimulating industrial growth?

A

The rebuilding of the military, particularly the navy, stimulated the growth of manufacturing workshops producing fighting ships, armaments, and other necessary products, contributing to industrial growth.

138
Q

What societal and economic shifts occurred during this period?

A

This period marked a transition between the agricultural Britain of the Middle Ages and the industrial Britain of the late eighteenth century. Powers shifted from the monarch towards the new owners of wealth and their representatives in parliament, paving the way for significant societal and economic changes.

139
Q

How did the introduction of promissory notes by the Bank of England change the perception of money?

A

The Bank of England began issuing “promissory notes,” which were promises to pay rather than actual money. This allowed credit to become accessible to many people, enabling investment in new businesses.

140
Q

What was speculation, as described in the context of the South Sea Company?

A

Speculation refers to risking money in the hope of good returns. In the case of the South Sea Company, which controlled the asiento, investors bought shares in the company, hoping for the share value to rise and make a profit.

141
Q

How did the triangular trade contribute to the wealth creation needed for Britain’s increasing wealth and power?

A

The triangular trade, facilitated by the slave trade and slave labor on plantations, generated wealth that was essential for Britain’s increasing wealth and power. Many investors and directors of the Bank of England were directly involved in this trade.

142
Q

What role did the South Sea Company play in this system?

A

The South Sea Company was a prominent business involved in the triangular trade and the asiento. It attracted investors who speculated on its success, hoping for profits from rising share values.

143
Q

What was the South Sea Company granted after the Treaty of Utrecht in 1713?

A

After the Treaty of Utrecht in 1713, the South Sea Company was granted the right to the asiento, which involved selling enslaved Africans to the Spanish colonies in the Americas.

144
Q

How was the South Sea Company structured?

A

The South Sea Company was a joint stock company, meaning people could buy shares in its ownership. They shared its profits when it did well, but were liable for its losses if it performed poorly.

145
Q

What attracted investors to buy shares in the South Sea Company?

A

Shares in the South Sea Company sold well due to its lucrative grant of the asiento, which promised profits from the slave trade with the Spanish colonies.

146
Q

What was the potential risk for shareholders in the South Sea Company?

A

Shareholders in the South Sea Company faced the risk of having to pay for the company’s losses if it performed poorly, despite sharing in its profits when it did well.

147
Q

What were some factors contributing to the economic boom in Britain during this period?

A

The economic boom in Britain was fueled by factors such as the increasing consumption of tobacco, rum, and sugar domestically, the growing demand for British goods in the colonies, and the expansion of trade across the Atlantic, which positioned Britain ahead of France and Spain.

148
Q

How did those involved in the Atlantic trade, particularly the slave trade and plantations, benefit financially?

A

Participants in the Atlantic trade, including owners of slave ships and plantation owners in the English Caribbean, made substantial profits. Slave ship owners, for instance, could profit between 20-50%, while plantation profits provided investors in London with favorable returns.

149
Q

What role did the British state play in the development of capitalism during this period?

A

The British state became reliant on trade and colonial expansion, leading to the displacement of state monopolies by private businesses, thereby fostering the development and strengthening of capitalism.

150
Q

Describe the employment opportunities provided by the British empire during this time.

A

The British empire offered employment across various sectors, including administration for the East India Company, plantation work in colonies like Virginia and Barbados, shipbuilding, port work, sugar refineries, ironworking, and clerical work in banks and businesses.

151
Q

What factors contributed to Britain becoming the richest and most powerful nation by 1900?

A

By 1900, Britain’s status as the richest and most militarily powerful nation was influenced by its imperial expansion, industrial manufacturing system, extensive trading network, and the establishment of a political democracy.

152
Q

How did Britain’s wealth and dominance trace back to the late seventeenth and early eighteenth centuries?

A

Britain’s wealth and dominance were rooted in events such as imperial expansion, the establishment of plantocracies, the enslavement of Africans, and the opening up of the economy to private businesses during the late seventeenth and early eighteenth centuries.

153
Q

What were some key characteristics of Britain by 1900?

A

By 1900, Britain had emerged as the world’s richest and most militarily powerful nation, boasting the first and largest industrial manufacturing system, an extensive international trading network, and a system of political democracy.

154
Q

Who were the primary contributors to Britain’s wealth during the period under investigation?

A

The bulk of Britain’s wealth during this period was generated through the labor of exploited workers, including enslaved Africans and White British ‘wage slaves’.

155
Q

What was the average price paid by planters for an enslaved African in 1700?

A

In 1700, the average price paid by planters for an enslaved African was about £300 in today’s money.

156
Q

Why did plantation owners begin to prefer African workers, particularly on the Caribbean islands?

A

Plantation owners began to prefer African workers for several reasons, including declining prices for enslaved Africans, which encouraged increased purchasing, and other factors specific to the Caribbean islands.

157
Q

What were some advantages of enslaved African workers?

A

Advantages of enslaved African workers included their ability to cope better with the climate, their developed agricultural skills suited to similar climates, resourcefulness in meeting their own needs, faster skill acquisition, productivity enforced through punishment, cost-effectiveness in clothing and maintenance, high availability, easy identification if they ran away due to their skin color, and their potential for resale.

158
Q

What were some disadvantages of European servants?

A

Disadvantages of European servants included their high death rate, inability to work well in the climate, agricultural skills unsuited to the environment, unpredictability and potential danger, tendency to run away, temporary status, and increased expense as wages rose in England.

159
Q

How did the economy change between 1688 and the mid-eighteenth century?

A

During this period, a small class of wealthy individuals in Britain accumulated vast new wealth through the creation of the National Debt, establishment of a new banking system, taxation, and control of colonial trade through monopolies.

160
Q

What were some factors contributing to the economic changes in Britain during this period?

A

Economic changes in Britain between 1688 and the mid-eighteenth century included the creation of the National Debt, establishment of a new banking system, taxation, and control of colonial trade through monopolies.

161
Q

What territories did England control at the start of the Nine Years’ War?

A

At the start of the Nine Years’ War, England controlled part of the eastern coast of North America, including Virginia, as well as several Caribbean islands such as Barbados and Jamaica.

162
Q

What were some outcomes of the War of the Spanish Succession for Britain?

A

The War of the Spanish Succession marked the decline of Spain and the rise of Britain as a major European power. By the 1713 Treaty of Utrecht, Britain gained more North American territory from France, full control of St Kitts, and control of Gibraltar, strengthening its naval dominance in the North Atlantic.

163
Q

What was one reason why people rushed to buy shares in the South Sea Company?

A

The government approved the Company’s scheme to minimize and manage the National Debt partly by issuing new shares in the South Sea Company.

164
Q

What were some factors that encouraged people to buy shares in the South Sea Company?

A

People were encouraged by the success of the Company, the published advertisements describing huge reserves of gold and silver in South America, and the artificial increase in share price to €1,000 per share, making it seem very successful.

165
Q

What were some side-effects of the rise of the ‘Bubble’ in the South Sea Company?

A
  • Not only the upper classes but thousands of middle-class people invested their savings in the company.
  • There was a lot of corrupt insider’ dealing by people working for the company.
  • Many other companies were set up to attract shareholders, several of them with very silly projects, for example ‘manufacturing square cannon-balls, “changing quicksilver (mercury) into fine metal’ and carrying on an undertaking of great advantage; but nobody to know what it is’.
166
Q

How did the ‘Bubble’ burst in the South Sea Company?

A
  • The Company lent large amounts to people so that they could buy shares, leading to a need to sell shares to pay dividends.
  • Some shareholders, realizing the inflated share value, started selling their shares.
  • Share values decreased as more people sold, causing panic among other shareholders.
  • The rush to sell shares led to a collapse in share prices and the eventual collapse of the company.
167
Q

What were the effects of the collapse of the South Sea Company?

A
  • Many people lost their life savings.
  • Some businesses collapsed, leading to suicides.
  • Confidence in the banking system declined.
  • Other companies connected to the SSC failed.
  • The Bubble Act of 1720 required new companies to obtain a royal charter.
  • Government officials, including the Chancellor of the Exchequer, were blamed and faced consequences.
168
Q

What were the economic impacts of Britain’s trade expansion during this period?

A
  • Increased consumption of tobacco, rum, and sugar domestically.
  • Growing exports to colonies in India, the Caribbean, North America, and Africa.
  • Britain surpassed France and Spain in Atlantic trade.
  • Profits soared for participants:
    Slave ship owners made 20-50% profits.
    Plantation profits from the English Caribbean were lucrative.
    The East India Company (EIC) paid a 50% dividend in 1691.
  • Capitalism strengthened as state monopolies were replaced by private businesses.
169
Q

How did the expansion of trade create new opportunities and risks for Britain?

A
  • Diverse employment opportunities across social classes, from EIC administrators to plantation workers.
  • Interconnected global trade system stimulated by investments and increased production.
  • Risks included threats of war disrupting trade routes and the potential collapse of companies, such as the South Sea Company in 1720.
170
Q

How did Britain become a world power by 1900?

A
  • By 1900, Britain emerged as the wealthiest and most militarily powerful nation globally.
  • It transitioned towards political democracy and boasted the largest industrial manufacturing system.
  • Britain possessed an extensive international trading network.
171
Q

What were the foundational elements contributing to Britain’s rise as a world power?

A
  • Imperial expansion, including colonization and exploitation of resources.
  • Utilization of forced labor, notably through enslavement and exploitation of both enslaved Africans and White British workers.
  • Establishment of plantocracies, agricultural systems reliant on slave labor.
  • Opening up of the economy to private businesses, fostering wealth accumulation.