Trade and Economy 1857-1890 Flashcards
18th century mercantilism?
A system of regulations govrning trade - colonies had been obligd to send most of their produce to Britain, to buy British manufactured goods, and use British ships for their imports and exports.
Change from mercantilism?
Although - first half of 19th century this highly protectionist system had been dismantled- new theories of free trade - Dan Smith book: The Wealth of Nations.
Mid 19th century - Br trade was let free from government trading restrictions.
Imperialism of free trade?
The way in which sometimes economic dominanec was sustianed by a limited application of force.
China in the Second Opium War (1856-1860)
China 2nd Opium War
China in the Second Opium War (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.
- Qing government of Emperor Xianfeng refused these requests and consequently a conflict developed starting when British forces arrived at Hong Kong.
- The situation worsened following a failed attempt by the city’s Chinese bakers to poison the city’s European population.
- Led by Admiral Sir Michael Seymour and Lord Elgin, 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.
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 posessions.
An ‘industrial empire’
Term used in which the colonies supplied both the foodstuffs and the raw materials which Br industry converted into finished goods for export and which very often the colonies bought back.
Third quarter 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.
The first colonial conference of 1887
While Britain adopted free trade, there was no international free trade vetween the colonies and the self-governing settler colonies were permittted to adopt protective tarriff systems of their own.
The first Colonial Conference of 1887 disxussed the issue of whether there should be some special trading prefernece 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 1860s chose to impose tarriffs against imported manufacturers (including those of Britain) in order to protect their own growing industries.
Ships and shipping
Sailing ships - highest rate of efficiency in 1860s - 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 devlopment 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.
1870s - development of triple expansion steam engin and severel Br companies sending steam trading vssels inland - up the Niger.
Clippers?
Boom years - 1843+ as a result fo the Treaty of Nanking and the growing demand for tea from China. - Their predominance was short lived after Suez Canal in 1869.
Railway imperialism?
The colonies’ resulting dependence on Britain (for building railways and infrastructure) could be used to presurise governments - Canada forcd to accept Br policies on defence in 1860s.
Railways - largest single investment of the period in the slef governing colinies 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 commerial 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 Bonbay and Calcutta and enabled rice to reach ports for export.
Canals - India and Canada?
In India, new canals were developed on huge scale after 1857.
In Canada after 1867, canals were deepened arounf St Lawrence/Great Lakes seaway system and the Welland Canal was built to overcome height differences between Lake Eyrie and Ontario.
Up to 1875 - Br and 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.
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.
Indian coolies?
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.
Where were plantations?
There were plantations for sisal in Kenya and Tanganyika, for coffee and tea in Ceylon and Kenya, for tea in India, for sugar in Mauritius and Natal, for rubber and palmoil in Malaya and North Borneo, for coconuts in the Soloman islands and for sugar in Fiji and in Queensland Australia.
