Trade and Commerce 1850-1914 Flashcards
1
Q
When was Wealth of Nations published?
A
1776
2
Q
Why was the Great Reform Act in 1832 important for free trade?
A
The newly enfranchised population were the merchants and businessmen calling for free trade
3
Q
Why was Singapore so successful as an Asian trading station?
A
There were no taxes or duties in trade, making it popular as an entrepot for the trade of goods - products from everywhere, in particular China and Java, could be traded without taxes
4
Q
Which policy was followed by Britain to do with China during the Opium Wars and what was the result?
A
Gunboat diplomacy, and the result was the taking of Hong Kong and the opening of more Chinese ports and 24m silver dollars in debt repayment
5
Q
Which treaty opened up China?
A
Nanking Treaty of 1842
6
Q
Why was Shanghai so important to British traders?
A
It was both the most important trading city, and had great access to the interior along the Yangtze
7
Q
How many tons of opium were traded to China in 1880?
A
6,500 tons
8
Q
When was the Suez Canal built and for what price?
A
1859-1869 at a price of 433 million francs
9
Q
Why was the Suez Canal not very profitable when it was first opened, and who was best placed to use it because of this?
A
Because only steamships could use the route, which previously had been too expensive to use for long distance, and as Britain was most industrialised, it was best placed to use the Canal
10
Q
When were the Suez Canal shares bought, by who, borrowed from who, and at what cost?
A
1875, Disraeli borrowed £4 million from the Rothschild family
11
Q
Why had the Suez Canal shares been bought?
A
For the geopolitical gain of Britain, in a strategic move against the French and to protect trade to the east
12
Q
Why did Zanzibar gain importance after it’s decreasing role in the slave trade?
A
It was an entrepot with low taxes which traded rubber, cloves, ivory and spices, and it had access to the unpopular to use yet somewhat valuable Africa
13
Q
What occurred in 1884 to change British minds about Zanzibar?
A
German interest (backed by Bismark government funding in 1887) in with the East German Trading Company
14
Q
What was the direct result of German interest in East Africa?
A
Previous small settlements became important, and the land was carved up by Germany and Britain through the head rush of the Scramble for Africa
15
Q
What occurred in 1890 to do with Zanzibar?
A
A treaty was passed, claiming land which was previously theirs German or British, and placing a British protectorate over them
16
Q
Why was the treaty of 1890 so irritating for the Sultan of Zanzibar?
A
He was not involved in the talks
17
Q
What happened in 1896 to do with Zanzibar that resulted in British intervention?
A
The pro-British sultan died and was replaced by his cousin, but the British preferred someone else so the 38 minute war ensued
18
Q
What percentage of the world’s trade did Britain have shares in in 1830?
A
45%
19
Q
What percentage of the world’s trade used British merchant ships 1890-1914?
A
60%
20
Q
Did expansion of Empire guarantee expansion of trade and riches?
A
No In 1897 the whole of tropical Africa only took 1.2% of British exports.
21
Q
By 1914 -extent of trade in India
A
35% of exports went to the Empire - and of this 20% went to India (representing about £150 million).
22
Q
By 1914 -extent of trade with Canada
A
By 1914 Canada was supplying over 10% of GB’s beef and 15% of its wheat flour.
23
Q
India represented a particularly large market: how much of Britain’s exports did it take?
A
It took about 20% of Britain’s exports - worth almost £150 million by 1914
24
Q
What do critics say about the Br Empire being economically inefficient?
A
While GB relied on rubber imports from S E Asia, the Fr and Russians had successfully created their pwn synthesised rubber industries by 1910.- some said the reliance on cheap labour from the imperial regions suppressed wages back home.
25
What was the general economic assumption in 1890?
The Empire made Britain wealthy and more empire would make the country wealthier still and should be defended against European rivals.
26
India represented a particularly large market: how much of Britain's exports did it take?
It took about 20% of Britain's exports - worth almost £150 million by 1914
27
How much beef and wheat did Canada supply Britain with?
Upwards of 10% of Britain's Beef and 15% of its wheat flour by 1914.Between 1900 and 1914, there was a 6 fold increase (to over 45,000 square miles) in Canadian land set aside for wheat production.
28
How the Imperial Federation League exemplifies that the benefits of trade w the Empire were less significant than imagined?
The Imperial Federation League which was established in 1884 to promote colonial ties was disbanded in 1893 (less than a decade after its inception) partially reflecting a waning interest in the Empire's colonial importance.
29
Facts to demonstrate British trade was growing with the non imperial world - particularly the USA:
In 1894, GB had imported 64 million hundredweight of wheat.30.7 million from the USA, 17.2 million from Russia and only 3.6 million from Canada.
30
Only in which foodstuffs was the Empire Britain's main supplier?
Cheese, apples, potatoes, fresh mutton.Other foodstuff came from elsewhere, with the Empire providing less than 10%.
31
What was the Empire's total trade in 1896 and how much of this was with countries of the Empire?
The Empire's total trade in 1896 was worth £745 million, but trade between the countries of the Empire only £183 million.
32
What happened whilst Britain was relying on rubber imports from Asia and Africa?
French, Russians and Germans had successfully started their own synthetic rubber production by 1910.
33
How much did Br investment increase between 1900 and 1914?
GB investment doubled from £2 billion to £4 billion between 1900 and 1913 - not all w Empire however
34
When and what did the Colonial Loans and Colonial Stocks Acts do?
In 1899 Facilitated a number of infrastructure projects including rail links into African interior from the ports of Lagos and Mombassa. Such loans could be significant for the place in question: Forming 88% of Gold Coast finances in 1901, yet their effect on the Br tax payer was limited - as estimated 29p/year between 1880 and 1914.
35
By how much did the terms of trade balance in Britain's favour between 1870 and 1914?
Around 10%- Helped by Britain setting the standard for the international monetary system forcing other nations to mirror by adopting the gold standard. By 1908 - only China, Persia and a handful of Central American colonies still used a 'silver standard'. The gold standard became a symbol of GB's economic strength.
36
For how long was Joseph Chamberlain Conservative Colonial Secretary?
1895-1903
37
When was the London Colonial Conference for leaders from GB and the self-governing white settler colonies?What was discussed? Why were C's ideas met with resistance?
1902. Imperial preference. Argued that GB's wealth had come from free trade and the wider international community rather than with a specifically imperial economy.
38
When did the "death knell of imperial preference" come?
The 1906 general election. voters overwhelmingly favoured the Liberal Party's commitment to free trade.
39
Before the outbreak of war in 1914 what did colonies do?
Dominions imposed import tariffs as a means of asserting their national interests over any loyalties or ties with GB.- Canada had made its own trading agreements with France, Italy and Japan and a separate commercial union w America was regarded as a distinct possibility. In India, Br textiles and goods were boycotted and burned in streets as the swadeshi movement sought to undermine Raj after 1905.
40
What are some examples of non-imperial investments?
60% of Colombia's railway network was GB owned by the early 20th century. - In Peru, the Peruvian Corporation (GB owned) administered not only the railways but also the guano production and certain utilities. - GB owned Sao Paulo railway in Brazil - the most profitable railway in SA as it was the trunk route into Brazil's coffee growing heartland. - By 1913, Br had invested £360 million in Argentina - as much as they has invested in India.
41
How was the concept of free trade in the 19th century a change from mercantilism?
Although - first half of 19th century this highly protectionist system had been dismantled- new theories of free trade - Adam Smith book: The Wealth of Nations 1776. Mid 19th century - GB trade was let free from government trading restrictions.
42
What's the concept 'Imperialism of free trade'?
The way in which sometimes economic dominance was sustained by a limited application of force. China in the Second Opium War (1856-1860)
43
What was the outcome of the 2nd Opium War with China 1856-1860?
The British Navy was relied upon to enforce British terms. - The British sought the opening of all of China to their merchants, an ambassador in Beijing, legalisation of the opium trade, the exemption of imports from tariffs and thus to renegotiate their commercial treaties with China. The British crushed all opposition ; Prince Gong met with the Western diplomats and accepted the Convention of Peking, whereby the Chinese were forced to accept the validity of the Treaties of Tianjin, give part of Kowloon to Britain, open Tianjin as a trade port, allow religious freedom, legalise the opium trade, and pay reparations to Britain and France.
44
Why was trade with Empire so easy?
Countries of the Empire used a common language and a common or tied currency and shared a common system of commercial law. Borrowing in the London capital markets was also cheaper because lenders had faith in the reliability of British possessions.
45
An 'industrial empire'
Term used in which the colonies supplied both the foodstuffs and the raw materials which GB industry converted into finished goods for export and which very often the colonies bought back.
46
What was the economic situation towards the end of the 19th century?
20% of British imports came from its colonies, while the Empire provided a market for 1/3 of British exports.The City of London became the world's financial capital as British investment oversees increased and sterling became the main currency of international trade. Technological improvements: railways, steamships, underwater cables and telegraph lines as well as innovations in banking and company organisation.
47
What was the first colonial conference of 1887?
While Britain adopted free trade, there was no international free trade between the colonies and the self-governing settler colonies were permitted to adopt protective tariff systems of their own. The first Colonial Conference of 1887 discussed the issue of whether there should be some special trading preference between colonies - creating a 'free trade empire' but this was turned down by Britain. Several colonies: beginning with Canada in 1859 and subsequently Australia in 1860's chose to impose tariffs against imported manufacturers (including those of Britain) in order to protect their own growing industries.
48
Stats about ships and shipping?
Sailing ships - highest rate of efficiency in 1860's - clippers sailing all over world - particular on route to China and the East. - Suited ideally to low volume, high profit good. Competition amongst clippers - fierce - their times recorded in newspapers. short life expectancy - had to be broken up in 20 years use. British iron-hulled ocean going ships made more efficient by the development of the compound steam engine in the 50s. From the 50s, steamship companies reduced the trade time between Britain and West Africa to less than 3 weeks and increased their cargo capacity. 1870's - development of triple expansion steam engine and several GB companies sending steam trading vessels inland - up the Niger.
49
What is the concept of Railway imperialism?
The colonies' resulting dependence on Britain (for building railways and infrastructure) could be used to pressure governments - Canada forced to accept Br policies on defence in 1860s. Railways - largest single investment of the period in the self governing colonies of Canada, Aus, NZ and SA - they opened up the Canadian prairies, enabled Australia to export its wheat and wool and offered SA a chance to expand its territories and commercial interest into the interior. India - railways may have been built with a strategic purpose in mind - they also linked the cotton and jute growing areas of the north with the mills of Bombay and Calcutta and enabled rice to reach ports for export.
50
Canals - India and Canada?
In India, new canals were developed on huge scale after 1857. In Canada after 1867, canals were deepened around Great Lakes to link Lake Eyrie and Ontario.
51
Up to 1875 how much of the exports went to the Empire?
In 1875 only 26% of exports went to the Empire. 1970-1914 the Empire becomes more important - largely because the Br found it harder to keep with the rapidly industrialising nations of USA and Germany.
52
Was the British Empire a trading bonanza?
Assumptions that the Empire was a trading bonanza are overstated - the Imperial Federation League, set up in 1884 to promote closer ties with the imperial possessions, disbanded in 1893 reflecting a lack of interest in the Empire's commercial importance.
53
How did Indian coolies support trade?
Indian coolies were transported to work in the West Indian colonies for fixed periods - usually 5 years in return for their transport.- Some also taken to SA.
54
Where were the plantations within the Empire?
There were plantations for coffee and tea in Ceylon and Kenya, for tea in India, for sugar in Mauritius and Natal, for rubber and palm oil in Malaya and North Borneo, for coconuts in the Solomon islands and for sugar in Fiji and in Queensland Australia.
55
In 1886 where were gold deposits found? What was significant about this?
On the Witwatersrand. This prompted a gold rush to the previously struggling, rather poor Dutch Boer Republic of the Transvaal. At the very time tin mines were closing down in Cornwall, the Transvaal gold mines required skilled labourers and over 30,000 travelled there from Britain.
56
When did the Kimberley Diamond Syndicate form?
1890 by Cecil Rhodes due to the further discovery of diamonds in the area of the Transvaal
57
Facts for gold discovery in Australia?What happened?
Gold was discovered in New South Wales, Australia in 1851 and by 1866 Victoria was producing £124 million worth of gold - 1/3 of the then total world production. New South Wales produced a further £25 million worth. 1860's - Australian mines began to run dry. Although later discovery in the 1880's.
58
Argument for ans against the system of trade in Empire established by the British on the people?
On the one hand, undeveloped areas were propelled to modernise, thanks to British capital and technology On the other hand: their independent economic development was curbed by the way the GB controlled and exploited their economies.
59
What was Lord Palmerston's idea about free trade?
It is the business of the government to open and secure the roads for the merchant, but no more.'
60
Why did the Empire return to Chartered companies after their post-Mutiny abandonment?
They had been the normal means of organising trade in the colonies until the mid 1850s. Govt allows trading to proceed at its own pace in the 50s and 60s seeing competition between rival companies as a healthy sign of successful capitalism.Attitudes changed in 1870s - idea of the chartered company revived as a way of extending GB trade and control at no cost of govt. (great depression). 1881 - North Borneo Trading Company 1886 - Royal Niger Company 1888 - IBEAC 1889 - BSAC Suppoting this development of chartered companies the Imperial federation League (1884) to promote colonial unity.
61
Why was GB so committed to free trade?
Br was the foremost industrial nation - it simply produced the most stuff and so had an obvious interest in selling it to the most places - and it could also undercut any competition.
62
Facts to show that the Empire was a valuable export market for British products in 1867.
In 1867 - India imported goods worth £21 million, which made it a market equal to GB™s largest foreign customer, the US. Exports to Australia totalled £8 million, Canada £5.8 million.
63
British raw cotton and tea imports from India comparing 1854 to 1876? What is significant about these figures?
Raw cotton (1854 - £1,600,000) (1876 - £5,800,000) Tea (1854 - £24,000) (1876 - £2,000,000)What is significant about the above figures is that India then bought back the finished products from Britain - and so prevented them developing their own industries.
64
By 1914 how many of Lancashire's cotton exports was India taking?
1914, India was taking 25% of all Lancashire cotton exports
65
In the 1890's how large was the whole imperial army and who paid for it?
1890's the whole imperial army totalled 325,000 troops: 2/3 of this entire force was paid for by the Indian taxpayer, so helping the GB maintain their global role without footing anywhere near the whole bill.
66
In 1914 how many of GB's exports did India take?
India took about 20% of Britain's total exports, worth about £150m by 1914.
67
How much did the proportion of Indian public debt in the City of London rise to from 1858 to 1914?
The proportion of Indian public debt held in the City of London rose from 7% in 1858 to 60% in 1914, with the interest obviously going into the pockets of the British.
68
In 1880 and 1910 how much money did Britain export to Latin America?
In 1880 GB exported £17 million to Latin America - by 1910 it was over £50 million
69
Investment in Latin America on 1875 compared to 1913?
1875 saw £175 million - 1913 it was at £1200 million
70
The gem in the British South American Crown was..
Argentina
71
By 1913 how much was invested in Argentina?And how much was it providing of British overseas property income?
1913 - £360 million By 1913, Latin America was providing around 1/4 of British overseas property income
72
Facts about GB investment and trade with USA?
Br investment in the US surged upwards from £500 million in 1899 to £800 million by 1914. By 1913, the Americas accounted for 1/5 of GB's exports and 1/3 of imports, more than half of her overseas investment and almost 3/4 of her international shipping. In 1894 Br had imported 64m hundredweight of wheat - 30.7m of which came from the USA
73
What was the Empire's total trade worth in 1896? and what was surprising about this?
The Empire's total trade in 1896 was worth 745 million, but only in cheese apples and potatoes and fresh mutton was the Empire's main food supplier.
74
What prompted a British conversation around National Efficiency?
Concern in the press re decline in British industrial production vs that of Germany and the US. Press and high imperialists insisted that Britain would be eclipsed unless the nation became better educated and healthier
75
What measures were taken to address National Efficiency?
```
1902 Education Act
Modernisation of the Royal Navy
Establishment of Imperial College of Science and Tech (1907)School Medical Inspection (1907)
Children's Welfare Charter (1908)
Old Age Pensions (1909)
Unemployment and Health insurance
```
76
What was the 1902 Education Act?
Made significant provisions for secondary education. Councils encouraged to subsidise grammar schools and provide free places for working class children. Allowed local authorities to provide meals for free when parents couldn't pay
77
What was the establishment of the Imperial College of Science and Tech in 1907?
City and Guilds college to improve training of craftsmanship, technologists and engineers 87 acre land bought for 342.5k
78
How much Empire trade worth in 1896?
£745 million
79
Why was imperial trade a negative for the British economy?
Britain lagged behind in development of new industries- they relied on rubber imports from SE Asia while the French, Germans and Russia all had generated their own synthetic rubber production by 1910. Colonies, ie dominions, began to impose their own protectionist tariffs (eg Au, NZ and SA) all did before WWI and Canada had own trading agreements with Germany, Japan, Italy and France. No internal free trade between colonies. Expansion of empire didn't always mean expansion of trade
80
How much of GB exports went to Africa by 1894
Only 1.2%
81
Specific groups of people who trade with the empire impacted on?
- The city (bankers/ finance houses/ insurance etc.)
- British public (workers/ tax payers)
- British industry
82
Imperial trade effects on the City of London (finance sector)?
Finance capitalists made huge profits: 22 new merchant banking millionaires c.1860-1919. Britain became economic hub of the world- between 1913-14 60% of the transactions passing through the City didn't even involve a British party. British freight suppliers specifically profited- profits rose from 80m (1870) to 150m (1914). But this could be seen as in impact of world trade increasing! Tourism companies thrived- By 1900, Thomas Cook and Sons was the largest single Egyptian employer (helped by Baring's role in Egypt)
83
British freight suppliers stats?
Profits increased from 80m in 1870 to 150m in 1914
84
Opposing evidence suggesting the City of London was not that important to the Empire?
Much of the growth in global trade was largely down to freight suppliers. Only 1/4 of 6 billion invested by the City from 1850 went to the Empire. Many colonial investments led to losses (eg Imperial East Africa Company went bust) Investment elsewhere (eg Latin America and America) suggest the Empire wasn't necessary.
85
Positive effects on the Empire on the British public?
Administration of the Empire was very cheap- only 20p/head/year. Naval spending meant increase in British shipbuilding yards which employed 1m people; particularly beneficial to Portsmouth, Belfast and Glasgow. Indian army was supplied by Br manufacturers- employed nearly 1m by outbreak of WWI
86
Negative effects of the Empire on British public?
Payed for the majority of defence : eg Royal Navy= 3p/head/year for natives vs 1.56 pound/head/year for taxpayer but this was only the Navy. Indians contributed 70% of the cost for the Indian Army (340k troops)
87
Positive effects on of the Empire on British industry?
Lancashire cotton- 15 new cotton millionaires in the area between 1850-1914. Empire grew in importance when Britain couldn't sell to Europe for the USA (they had domestic industries)
88
Decline in British goods going to Europe and Germany c.1870-1900?
from 40% to 31%
89
Growth in exports going to Empire 1870-1914
26% to 35% by 1914
90
Economic consequences if Empire was abandoned?
If GB had abandoned Empire, loss of trade would have amounted to 3% total and savings on defence would have compensated. Loss of Empire would have encouraged new industry development in Britain.
