Trade and Commerce, 1890-1914 Flashcards
Trade within the Empire
Britain had a disproportionate amount of trade and investment in the empire
India represented a large market since it took about 20% of Britain’s total exports worth almost £150 million and in return, India exported huge quantities of goods to Britain
wool and sugar from South Africa and Australlia
Canada supplied 10% of Britain’s beef and 15% of its wheat flour by 1914
Trade with the non-imperial world
Imperial federation league established in 1884 to promote colonial ties had been disbanded in 1893, reflecting waning interest in Empires commercial interest
trade with non imperialist world was growing - in 1894, Britain had imported 64 million hundredweight of wheat and only 3.6 million from Canada
Empire provided less than 10% of food
In 1896, empires total trade as worth £745mill but trade between countries of empire only £183mill
in 1897, tropical africa took only 1.2% of British exports
Impact of falling trade in Britain
anti-imperialist argued that empire cost middle class people more than it benefitted them and empire blamed for Britains failure to modernise industry
while Britain was relying on rubber imports from Africa or Asia, Germany had successfully started their own rubber production by 1910
blunted commercial enterprise and import of food undermined domestic food production and served to depopulate the countryside
huge costs of empire and financing navy
investment in empire
although british investment doubled from £2bill to £4bill between 1900 and 1913 not all was within Empire. far more went to USA and India
loans within the Empire were regarded as safe, loans to other nations may provide bigger returns as loans within might be used to develop rival manufactures within Britain
London remained world financial capital
Colonial Loans and Colonial Stocks Act 1899 and 1900 facilitated a number of infrastructure projects e.g. rail links in Africa
set standard for international monetary system by adopting the gold standard. By 1908, only a few countries still used silver standard
debates over trade and commerce within the empire
Joseph Chamberlain convened 1902 London Colonial conference and discussed creating closer economic ties in the form of a customs union - would have given a boost to imperial trade through customs and protective tariffs and would be strategically reliable in times of emergency
this met resistance from manufacturing, shipping and banking industries as interests were with free trade - argued that Britain’s wealth had come from free trade
106 general election Chamberlains proposals were rejected and voters overwhelmingly favoured the Liberals parties commitment to free trade
before the outbreak of war in 1914, Australia and New Zealand had all imposed tariffs as a mean of asserting their national interests over loyalties to Britain. Canada had made its own trading agreements with Germany, Italy and France
in India, british textiles were boycotted and burned in the streets
economic benefits of empire
relationship between ecport and import prives moved about 10% in Britains favour
exports increased from 21.2% in 1875 to 37.2% in 1913
trading supply was considered safe and stable as Britain was an industrial society and so relied on colonies to supply food e.g. Beef and wheat flour from Canada
allowed Britain to control colonial industries and reduce competition
Ugandan railway was used to consolidate expansion in East Africa, was 660miles and cost £5mill
40% of British investment overseas took place in Empire and by 1914, Britain had invested twice the amount of the French and 3 times of the Germans
colonies bought british goods
economic limitations of Empire
only 25% of imports came from colonies and 37% of exports went to colonies - static
foodstuff came from non-colonial countries like Russia
growth of the empire was expensive to secure e.g. Boer War cost £250 mill
middle classes were facing increased tax burden due to maintenance and defence of Empire
availability of cheap imperial products prevented Britain from developing its scientific enterprises
benefits of overseas investment were not felt by the majority
growing nationalism in the Empire sometimes led to trade being damaged e.g. India took 20% of exports, strikes and boycotts of goods in 1905
