The adoption of free trade 1842-46 Flashcards
Which economic theory dominated thinking from the 16th to 18th century? The aim?
What book did Adam Smith publish? When?
What did he argue regarding trade?
-Why were many in Parliament against the idea of free trade?
-Mercantilism had dominated economic thinking from the 16th century to the 18th century.
-The aim was not to accumulate vast wealth but to use profits to invest.
-Adam Smith published The Wealth of Nations in 1776.
-He argued that removing barriers to trade would increase overall wealth since both parties benefited from trade, not just one.
-Parliament was dominated by wealthy landowners who had an interest in keeping incomes from their estates high.
How did English landowners maximise profits from Irish-produced goods?
Did this prevent Ireland’s economic growth? (Dublin?)
Were people in Ireland still against Mercantilism? (American revolution?)
What did Smith call the restrictions on the Irish when consulted by British gov’t?
What did gov’t do in response?
-English landowners kept tariffs on Irish-produced agricultural goods to keep food prices in England high to maximise profits.
-NO.Despite the tariffs, Ireland continued to grow since its agricultural goods were competitive. Dublin was the second most prosperous city in the British Empire.
-YES.Growth did not prevent controversy over trade policy. Irish demands for free trade escalated, especially during and after the American revolution.
-Smith called the restrictions on the Irish ‘unjust and oppressive’.
-Britain removed trade restrictions that year(1779).
Why was granting Ireland free trade seen as necessary?
What protests occured in Ireland 1778 that supported this need?
Did grain prices collapse because of this?
When were the Corn laws passed? What did this show? What did it do?
-Granting Ireland free trade was seen as necessary to avoid conflict.
-1778 protests with a cannon in Dublin saying ‘free trade or this!’
-NO. Grain prices didn’t collapse afterwards. This was a victory for free trade.
-The Corn Laws were passed in 1815, showing the strength of protectionist interests in parliament. These put tariffs on imported grain.
What group was elected in 1830 which changed the political landscape?
What did they pass in 1832? What did it do? What percentage did the electorate increase by?
What were these groups opposed to?
When was the Anti-Corn league founded? What did it develop into?
Who founded the Conservative Party? When did he become PM?
How many tariffs did he abolish between 1842-46? Who in gov’t supported him doing this?
What were the new two factions of Conservatives known as?
-The Whigs.
-The Representation of the People Act was passed in 1832.
-Gave manufacturers more of a role in elections. Electorate saw a 60% increase.
-These groups were typically opposed to tariffs since they made manufactured goods more expensive.
-The Anti-Corn Law league was founded in 1838 by supporters of free trade and developed into a powerful political lobby.
-Robert Peel founded the Conservative Party & became PM in 1841.
-Peel abolished over 1,200 tariffs between 1842-46.
-Supported by progressive Whigs and Liberals but not all of the Conservatives.
-Conservatives could be divided into protectionist ‘Old Tories’ and pro-free trade ‘Peelites’.
When were the Navigation Acts abolished?
Under mercantilism what were colonies seen as regarding trade?
How did the 17th-century Navigation Acts which underpin the system of colonies supplying Britain with raw materials?(3)
-The Navigation Acts were repealed in 1849.
-Under mercantilism, colonies were seen as dependent trading partners which would always have a negative balance of trade so that the colonising country had a positive one.
-Navigation acts ensured;
-Colonial goods for export could only be carried on English built and owned ships.
-Certain colonial goods had to be shipped to an English port, even if they were destined elsewhere.
-Imports to colonies had to be shipped to a British port and then reshipped.
Did Britain initially enforce the Navigation Acts tightly? Where was smuggling especially rife? What was this soft touch approach known as?
When did this change? How did the Seven Years War add to this? (1754-63)
What did the Royal Navy do in response?
What war did this eventually lead to?
-NO. Britain didn’t enforce these rules very tightly.
-Smuggling was rife, especially in the Americas.
-This soft touch approach was known as salutary neglect.
-This approach ended when Britain determined to raise funds to defend its North American colonies against France from trade duties.
-Huge debt created by the 7 year war, a series of laws were passed to generate wealth through revenue.
-The Royal Navy clamped down on smuggling , seizing ships and cargo.
-New England merchants were repulsed by this. The issues contributed to the War of Independence.
What was PM Robert Peel committed to?
What did his land mark Budget of 1842 abolish? What remained?
Who felt betrayed by Peel due to The Sugar Duties (1846)? The Corn Law repeals(1846)?
When did Famine struck Ireland?
What did Peel argue in response? Who was this unpopular with?
-PM Sir Robert Peel was a committed free trader.
-His landmark 1842 budget abolished hundreds of tariffs but the Corn Laws and sugar duties remained.
-The sugar duties were detested by owners of sugar plantations in the West Indies and the Corn Laws by landowners.
-Famine struck from 1845 onwards in Ireland.
-Peel argued that Britain should abolish the Corn Laws to lower grain prices. This was deeply unpopular with landowners.
What Act did Peel pass in 1846 causing a divide in the Conservative Party and his subsequent resignation?
What were the two factions within the Conservative Party?
Where did the repeal of sugar duties cause economic decline? Why?
Did the repeal of the Corn Laws do much to assist those in Ireland? How many died? How many emigrated?
-Peel published the Importation Act 1846 through parliament with Whig support to abolish both sets of tariffs.
-This split the Conservative Party between Peelites and Tory landowners
-The repeal of sugar duties caused economic decline in the West Indies who were outcompeted by slave colonies like Cuba.
-NO. The repeal of the Corn Laws did little to ease the famine in Ireland who could not buy grain at any price. Over one million died and a further million emigrated.
After Peel’s resignation (1846) who became PM?
Was he Pro free trade?
What Party dominated the House of Commons by this time?
When were the Navigation Acts repealed?
What was this seen as a sacrifice of?
Despite their advocation of free trade what prominent economist of this period had supported the Navigation Acts? Why?
-After Peel’s resignation, Whig PM Lord John Russell continued the adoption of free trade.
-A pro-free trade Commons majority compromising Peelite Conservatives and Whigs.
-The Navigation Acts were repealed in 1849.
-This was effectively sacrificing defence for trade as the Acts had ensured a large pool of ships and sailors.
- Even Adam Smith had supported the Navigation Acts because he thought the navy should be prioritised.
