Trade and Commerce 1857-1890 Flashcards
What was mercantilism
Trade was strcitly regulated in system of mercantilism where colonies had been obliged to send most of their produce to Britain, buy British manufactured goods + use British ships for their imports/exports
How did free trade affect Britain
Britain able to indulge in free trade as the world’s foremost trading union - left free from govt trading restrictions but govt active in supporting free trade agreements around globe (benefitted British dominance)
What does the Opium wars tell us about British trade
Shows commitment to free trade since Britain literally went to war to ensure free trade
How did the coming of free trade boost imperial trade
Investment grew hugely creating ‘industrial empire’ where colonies supplied foodstuff + raw materials which British industry converted into finished goods for exports + colonies compelled to buy back
By late 19th century how much of Britain imports came from its colonies
20% of British imports came from its colonies while empire provided market for 1/3rd of British exports
1867 what were the levels of imports + exports from colonies
- 1867 India imported £21m goods made market equal to Britain’s largest foreign customer US
- Exports to Aus totalled £8m, Canada £5.8m, Hong Kong £2.5m, Singapore £2m, NZ £1.6m
Britain possessed under half world’s industry - colonies had no choice but to import British manufactures
What were the value of British imports from India 1854 compared to 1876
Wheat had 0 value in 1854
By 1876 value was £1647000
What prevented India from developing their industries
Significant that India bought back the finished (manufactured) products from Britain which prevented them from developing their own industries
By 1914 India was taking 25% of all Lancashire cotton exports
Who bore the costs of the Indian army
India served as British ‘barracks of the East’ 1890 whole imperial army totalled 325000 troops + 2/3rd was paid for by Indian taxpayer (British didn’t bear the cost of the bill)
How did Indian labour help British
Advantage to Indian base was manpower, helped Britain build railways in Uganda, created rubber plantations in Malaya, grew rice in Burma
Churchill called East Africa ‘America of the Hindu’ showing scale of Indian labour
How was the government of India financed
Largely financed via City of London - infrastructure schemes (railways) + proportion of Indian public debt held in city rose from 7% 1858 to 60% 1914 (interest charges going into pockets of British)
How might trade not have been beneficial to empire
Certain African + tropical areas of empire yielded little reward from free trade
Large areas outside empire hugely economically important - counter argument to centrality of empire to Britain’s financial gains + large areas of empire did little trade with UK
How were infrastructure of railways beneficial economically
Railway imperialism was key to economic development + ensured British control
Railways - provided invisible trade for Britain + spread of railways within empire facilitated commercial enterprise
How did railways affect white settler colonies
Railways provided largest single investment in self-governing settler colonies Canada, Aus, SA + NZ
Opened up Canadian prairies, enabled Aus to export wheat/wool + offered SA chance to expand territories/commercial interests
How did railways in India prove beneficial for trade
Railways built for strategic purposes in India + linked cotton/jute growing areas of north with mills of Bombay + Calcutta + enabled rice to reach ports for export + vital links between areas of production + sea
How were ships beneficial to trade
- From 1850s steamships reduced travel time between Britain + West Africa to less than 3 weeks
- Opening of Suez 1870s stimulated construction of ships used in inland regions - up Niger
- Enabled trade with distant colonies + sailing ships reached highest state of efficiency 1860s sailing routes to China/East
How were canals/rivers beneficial to trade
- Rivers straightened/diverted/deepened to facilitate trade + canals built
- India new canals developed on huge scale after 1857
- Internal river systems vital means of transport for trading products
What does the Grace contract show
1886 pact between Peru + British bondholders to resolve debts - contract formalised 1890 highlighting how British wealth is not entirely dependent on empire (debt burden needed to be reconstructed in Peru over imperial colonies interests)
How was the Cunard Line not massively imperial
By 1877 Cunard Line shipping (based in Liverpool) had 46 vessels - 19 on Atlantic, 12 in Med, 13 Glasgow, N Ireland + Bermuda
Why were the role of charted companies beneficial economically
British govt by 1870 saw charted companies as ways of extending British influence/control at no extra cost - they were govt recognised commercial organisations which were granted monopoly rights to specific territory in return for administration
Why was the British East India Company established
To gain access to India’s merchandise/markets - free trade/rebellion brought end to EIC but trading companies remained influential in Africa
How did attitudes change in 1870 regarding charted companies
Britain’s economic supremacy faced challenges regarding European + American industrialisation + Great depression - concept of charted companies revived as way of extending British trade/control
What was the North Borneo Trading company
1881 received charted for purpose of administrating the territory - North Borneo benefitted from coal, iron, copper + development of tobacco, coffee
Represented key strategic site for British in S China sea (midpoint between India + Hong Kong)
Charter set a precedent, followed by others
What was the Royal Niger company
1886 charter permitted trade in lands along Niger + permission for expansion northwards+ crucially for company to serve as govt of Niger region
