Nineteenth Century Capitalism Flashcards
1
Q
When was the term imperialism’ coined?
A
During the 19th C economic debate
2
Q
When was there a rapid increase in imperial prosperity?Why?
A
From 1780+ Because London replaced Amsterdam as the financial capital of the world due to the French Wars.
3
Q
What was Britain the first to achieve?
A
Self-sustained modern economic growth: Britain was the ‘workshop of the world’.
4
Q
What percentage of the world’s coal output, according to P. Bairoch, was from Britain in 1830-1860-1880?
A
71% - 57% - 49%
5
Q
What percentage of the world’s iron output, according to P. Bairoch, was from Britain in 1830-1860-1880?
A
75% - 52% - 43%
6
Q
What percentage of the world’s industrial output, according to P. Bairoch, was from Britain in 1830-1860-1880?
A
10% - 20% - 23%
7
Q
According to P. Cain, what percentage of British imports went to the empire 1854-57? And exports?
A
24% imports, 30% exports
8
Q
According to P. Cain, what percentage of British imports went to the empire 1909-13? And exports?
A
25% imports, 35% exports
9
Q
How were exports to the empire in 1854-57 distributed?
A
48% to settlements, 32% to India, 52% to other colonies.
10
Q
How were exports to the empire in 1909-13 distributed?
A
50% to settlements, 33% to India, 17% to other colonies.
11
Q
What was the shift that occurred in economic practise in the 19th Century?
A
A shift from a mercantilist practise to capitalist.
12
Q
Who is the traditionalist historian for capitalism and nineteenth century expansion?
A
J. Hobson
13
Q
Who are the revisionist historians for capitalism and nineteenth century expansion?
A
J. Gallagher and R. Robinson
14
Q
Briefly outline J.Hobson’s argument:
A
1870s underconsumption- demand failed to meet supply, further expansion needed
15
Q
What was J.Hobson’s thought on the Scramble for Africa?
A
It was the rich searching for money, not representative of GB as a whole but of the metropolitan elite.
16
Q
Briefly outline J.Gallagher and R.Robinson’s argument?
A
Informal Empire received more investment as it was less volatile. Formal empire was a last resort to control an entity
17
Q
What is a quote from the Imperialism of Free Trade?
A
By informal means if possible, or by formal annexations when necessary, British paramountcy was steadily upheld.
18
Q
Who encouraged free trade imperialism in the nineteenth century?
A
Third Viscount Palmerston, Henry J. Temple. He encouraged a nationalism and improved foreign policy
19
Q
Who coined the term gentlemanly capitalism?
A
Cain and Hopkins, they were heavily influenced by Thatcherite politics of the 1980s.
20
Q
Who were gentlemanly capitalists?
A
The financial aristocracy of the City, who held strong ties to Westminster- they had an intent to change Britain from the ‘workshop’ to the ‘trading room’.
21
Q
List three benefits of formal imperial control:
A
- Exclusion of other powers. 2. Cultural diffusion. 3. Monopoly
22
Q
List three limitations of formal imperial control:
A
- Expensive. 2. Economic interconnectedness. 3. Accountability
23
Q
List three benefits of informal imperial control:
A
- More lucrative and flexible. 2. Less resentment at GB. 3. Cheaper.
24
Q
List three limitations of informal imperial control:
A
- Less prestigious. 2. No exploitation. 3. No market monopoly
25
What should be remembered about pros and cons of both formal and informal imperial control?
They are situationally dependent. For example China was informal simply because of its size.
26
Is formal the aim and informal the vehicle to facilitate such? Or the other way?
1. The goal is always formal no matter the motivation.
| 2. Informal was the aim, with formal being an unhappy conclusion of Imperialist control to sustain the economy.
27
How did G. Barton and B. Bennett define an informal colony to be in 2010?
‘ [one nation] able to strongly influence policies in a foreign country critical to the more powerful country's interests'.
28
Between 1815-1880, what amount of credit was accumulated abroad?
£1,187,000, no more than 1/6 in the formal empire
29
What was the overseas investment total in 1854?
Approximately £190-230 million
30
What did P. Cain write regarding the nature of Empire from the 1830s onwards?
'Flourishing connections with ex colonies ... [show] trade could only be secured by the use of power'.
31
When was the Oceania economic depression?
mid-1880s, they had been integral from the 1850s up until this point, when their role was supplemented by South Africa.
32
According to P. Cain, what are the two periphery suppliers?
Capitalist Neo-Europes, tropical peripheries.
33
What are the limitations of the tropical periphery outlined by P. Cain?
1850+ it was clear that European technology was incompatible with the tropical climate.
34
When was the rapid growth of P. Cain's 'Neo-Europe'?
1790-1913, yet despite this growth it still relied heavily on London.
35
What is a contemporary source for the centre-periphery relationship of empire?
Thomas Brinley: 'When Britain caught a cold, the periphery caught pneumonia'.
36
When was the trade deficit in primary produce most substantial?
1870s, yet the periphery remained largely constant in its multilateral exchange of goods and services.
37
What was the increase in land productivity in the periphery frontier 1850-1920?
70% land productivity increase to 376million hectares
38
How does A. Webster characterise informal empire?
'Informal persuasion rather than costly aggression' as it was more palatable to late-18th Century liberalism.
39
What does A. Webster note about the links between politics and economics regarding informal empire?
GB at the centre of the world economy meant countries were dependent. Dependency meant political leverage used in return for market access.
40
What is an example of the informal empire not always being directly economic exploitation?
The acquisition of the Cape was a strategic gain to protect the route to the Indian Ocean.
41
J. Robinson and R. Gallagher argued that the peripheral circumstances dictated imperialism, not changes in London. What is A. Webster's take?
A. Webster argued that circumstances were the vehicle, the metropole the instigator, for imperial changes.
42
What was the traditionalist historiography of the Empire's economic changes?
The empire was mercantilist, then Laissez-faire (Adam Smith) free trade not imperially run. No anti-imperialism, but 'new' imperialism.
43
What is the revisionist historiography of the Empire's economic changes?
Economic growth cyclically relied on overseas expansion. Anti-imperialism was really informal British hegemony.
44
When did Britain begin the attempt at shifting some informal territories to formal ones?
1870s+
45
What does A. Webster suggest led to the last resort, and what is this?
Internal chaos left no option but outright annexation.
46
How were informal relations facilitated according to J. Gallagher and R. Robinson?
Informal relations were facilitated via indigenous collaborators.
47
Who described the edge of empire as a 'turbulent frontier'?
J. Galbraith coined the term 'turbulent frontier'.
48
Whose work exemplifies the destabilising consequences of commercial relations?
Khoo Kay Kim's study of the Western Malay States: the guise of Chinese tin mining led to civil war (1860s/70s) compelling formal control.
49
Who argued that obstacles to the spread of British power were more significant than originally supposed?
D. Platt, claims that poor transport, communication and resistance meant 19th century imperialism was just 'vague influence' until new imperialism.
50
Who claimed that informal control is too loose a term due to Britain's limited ability to assert authority?
M. Lynn claimed that informal control is too loose a term due to Britain's inability to assert authority.
51
Who debated whether decolonisation was an attempt to lighten the imperial load? What else to they criticise?
J. Darwin. He was also critical of there ever been coherent official goals in The City.
52
What does J. Darwin's term 'bridgehead' encompass?
'Bridgehead' means the collective presence of British in the periphery territories dictating the extent of ability for informal or formal control.
53
Which two historians strongly stress that we cannot react metropolitan economic developments as a motor of imperialism?
P. Cain and A. Hopkins.
54
Who claim that capitalism rapidly modernised economies?
P. Baran and A. Frank. The modernisation was fourfold: 1. agriculture, 2. cheap labour, 3. division of labour, 4. capital accumulation.
55
Who stresses the significance of the Anglo-Argentine connection?
H. Ferns.
56
According to H. Ferns, when was the Anglo-Argentine connection most significant?
1806-1914. in 1880-1914, Argentina was more important than Egypt and China, and perhaps even India.
57
What is a direct quotation from H. Ferns' works on Anglo-Argentine relations?
'Anglo-Argentine political relations were notable for a low temperature and a seeming relaxation'.
58
What does H. Ferns argue to be the 4 methods Britain achieved the subordination of less developed communities?
1. conquest, 2. intervention with a provisional native government, 3. consent at occupation, 4. establishing of extraterritorial privileges.
59
What is a primary source for British intent behind intervention?
Castlereagh to the Cabinet (May , 1807)
60
What did Castlereagh say to the Cabinet in May 1807?
'We should not present ourselves in any other light than as auxiliaries and protectors ... the particular interest which we should be understood alone to propose ourselves should be ... the opening to our manufactures of the markets of that great continent'.
61
What was the legal foundation for Anglo-Argentine relations?
The February 1825 Treaty of the United Provinces of the Rio de la Plata.
62
Between 1824-34, how much money was raised in London for Argentine investment?
At least £23 million.
63
What was the extent of investment in Argentina by 1890?
£174 million was being invested in Argentina by 1890.
64
What does D. Mclean claim regarding mid-19th Century British trade?
'On the basis of economic domination, [Britain] controlled an empire of informal sway'.
65
What is D. Mclean's take on informal empire?
Informal empire itself is irrefutable, yet does not fit control via economic domination.
66
What was the relationship between European politics and British economic expansion?
British trade began competing with now equal European rivals (caught up with industrial revolution), creating diplomatic tension, exaggerating economic enterprise.
67
How does D. Mclean characterise the Anglo-Turkish relationship?
Economic concessions on the one side, financing of government on the other.
68
How does D. Mclean characterise the Anglo-Chinese relationship?
As a preservation of the status quo established by the Manchu dynasty until 1911, it was in severe decay and externally vulnerable.
69
How can we stress the British preservation of the Manchu dynasty in China?
Through the protection of the Yangtze Valley.
70
What should be stressed about the political-financial relations in British policy?
They cannot be dogmatically precluded as an economic heresy. Though finance was how the foreign office functioned.
71
According to D. Mclean, why did informal empire develop?
Informal empire developed in response to immediate problems on the imperial frontier, not commercial penetration.
72
In 1900, what percent of global capital movements were controlled by London bankers?
75% of global capital movements were controlled by London bankers by 1900.
73
Who claim that the policies of Whitehall reflect the merchant classes?
R. Dacey and K. Murrin.
74
What do R. Dacey and K. Murrin note about the difference between informal and formal imperialism?
Britain chose the carrot over the stick.
75
What does J. Hobson stress about the role of finance in imperialism?
'finance was the governor of the imperial engine.'
76
How can we depict that expansionism sometimes failed?
With the 1840, 1857 Opium Wars in China trying to break economic self-sufficiency.
77
What did the Opium Wars eventually lead to?
The Opium Wars contributed to the Taiping Rebellion (1850-64) where southern provinces occupied the Yangtze Valley.
78
What did Lord Clarendon claim in 1870 regarding China?
'British interests in China are strictly commercial', or at least 'for the protection of commerce'.
79
Who coined the term gentlemanly capitalism?
P. Cain and A. Hopkins.
80
According to the gentlemanly capitalism thesis, where was policy formed?
Policy was formed in 'charmed circles' of "new men" of the service sector who were tied to old landed elites.
81
According to P. Cain and A. Hopkins, when did finance have a greater impact than industry on imperialism?
1850-1945.
82
Who corroborates the gentlemanly capitalism thesis?
T. Veblen. Claimed that 'gentlemanly investors' controlled all spheres from 1850+.
83
What is the disparity between industry decline and financial rise?
Decline in manufactured goods exports occurred, but a rise in 'invisible' services occurred until 1914 due to better adaptation to free markets.
84
Between 1865-1912, what fraction of the £6 billion in London markets went to foreign enterprise?
2/3 of the £6 billion in London markets went to foreign enterprise in the latter half of the 29th century.
85
What does J. Hobson describe The City to be?
J. Hobson describes The City as the 'moneyed class.'
86
What was free trade dependent upon according to P. Cain and A. Hopkins?
Free trade was dependent upon the spread of the sterling, which was dependent upon the maintenance of the gold standard.
87
What was the limitation of The City's political influence?
The City, despite their relations with Whitehall, could not compel fiscal orthodoxy.
88
How can we corroborate the theory of gentlemanly capitalism?
The Bank of England's court of directors was made up entirely of City leaders
89
How did the Bank of England perpetuate the "club" of The City?
The Bank of England refused to bail out the start-up Gurney's in 1866 yet bailed out Baring's in 1890.
90
When was the threat of the bimetallism movement (introduction of silver to the gold standard) to the British role in free trade?
1880s.
91
When was the most significant loss of capital assets and competitiveness?
WWI, Britain depended upon London being a 'world city', yet war upset the 'delicate web' of credit.
92
When did British markets turn more domestically once again?
In between the 2 world wars.
93
When was the rejection of the Gold standard forced?
In the 1929-31 crisis.
94
Who coined the term millocracy? What was it?
K. Marx. It was the cotton trade power in India leading to the creation of a capitalist aristocracy.
95
What should be noted about the intent of the coining 'gentlemanly capitalism'?
The coining gentlemanly capitalism is intended to be non-ideological, rather it is a testable echelon.
96
What does A. Offer describe the new historiographical approach to Nineteenth Century economics to be?
A. Offer calls the new approach 'imperial accountancy'
97
Which two historians wrote studies of imperial accountancy?
M. Edelstein and L. Davis & R. Huttenback.
98
What does New Economic History aim to do?
New economic history aims to show the rational nature of controversial institutions. e.g. American slavery.
99
What did L. Davis and R. Huttenback compare to other European powers?
'the fiscal burden of imperial defence', that is, the British paying for defence but the empire paying less than they should.
100
What was M. Edelstein's sample?
566 1st and 2nd class equity preference and debenture securities (domestic, colonial & foreign) 1870-1913.
101
What was the time period evaluated by M. Edelstein?
1870-1913.
102
What did M. Edelstein record from his 566 samples?
From his sample, M. Edelstein recorded year-end market value, annual dividend/interest paid, capital gains/losses added up to calculate the realised rate of return.
103
In comparing domestic and overseas investments, what is clear?
Similar investments performed better overseas- 4.6% return domestic .vs. 5.7% return overseas.
104
What does the 1.1% return rate work out as in revenue flow?
The meagre return rate difference between domestic and overseas investment works out as 24% in revenue flow- a large amount.
105
What was the property income from abroad in 1914?
9% total of GDP, domestic and foreign discrepancy was 2% income.
106
How do L. Davis and R. Huttenback criticise M. Edelstein's study?
They criticise Edelstein's dependency on financial markets because of market manipulation protecting contemporaries from comparable risks.
107
What was L. Davis and R. Huttenback's sample?
482 British firms (domestic, colonial and foreign).
| 241 public, 234 private, 7 railways.
108
According to L. Davis and R. Huttenback, in what period did the empire pay better than domestic investment?
1860-1912.
109
In what period did domestic returns out perform overseas ones?
1885-1904.
110
What were the domestic, imperial and foreign return rates from 1860-1912?
Domestic (5.7%), imperial (6.3%), foreign (5%).
111
When were contemporaries avoiding overseas investment?
1890-1905.
112
What fraction of Edwardian portfolio investments were overseas?
2/3 (25% empire, 42% foreign) approx.
113
Why is L. Davis and R. Huttenback's sample problematic?
The sample is problematic as it constructed rates of profit from internal sources which were often the result of accounting malpractice or not consistently available.
114
What is the problem with uniform inflation and deflation in historical study?
Asset adjusting for depreciation and inflation are derived from contemporary conventions and subjectivities. uniformity will not be appropriate for each individual firm.
115
How does A. Offer characterise L. Davis and R. Huttenback's study?
As 'an unsystematic sample'.
116
What was the largest comparable risk for investors?
The 'country factor' according to A. Offer. That is, the risk in break down of international order.
117
What was the British defence expenditure?
2.95%, high- but not crippling.
118
If the empire paid its fair share of defence, how much would British taxes have dropped?
20%.
119
What percentage of portfolio investment did self-governing colonies attract?
70-90% of all investments.
120
By how much did imperial bonds outperform British consols?
By 60%.
