Trade & Commerce 1857-1890 Flashcards
What was Britain’s economy like in the late 19th century?
By 1870 Britain was at height of commercial and industrial power:
- Accounted for 1/2 of world’s trade in textiles and industrial goods
- Gross national product was greater than Russia and China combined
- Merchant fleet carried 1/2 of the world’s sea borne trade
The worlds banking and investment system based in London :
- About 40% of British investment went to imperial territories between 1870 and 1914
What was protectionism? Why had it been got rid of?
- Protectionism involved raising tariffs on international trade in Empire to benefit Britain.
- Colonies obliged to send most of produce to Britain, to buy British manufactured goods, and use British ships for imports and exports.
What was free trade? Why was it preferred?
- Protectionism was dismantled as belief that wealth was indefinitely expandable and freedom was the only way to maximise prosperity grew.
- Britain being foremost trading nation enjoyed free trade as its economic dominance was sustained by a limited application of force, also known as ‘imperialism of free trade’.
- Prohibitive tariffs from Germany in 1879 and France in 1881 forced Britain to rely on Empire for trade.
How important was trade with Empire? Why?
- In 3/4 of the 19th century, 20% of Britain’s imports came from its Empire. Empire provided a market for around 1/3 of Britain’s exports.
- Empire important to Britain’s trade as trading patterns were well established. Empire used common language, currency and shared system of commercial law.
- Growth of free-trade saw development of industrial empire in which colonies supplied raw materials and foodstuffs which Britain converted into finished goods which colonies often bought back.
- Free trade was prohibited between colonies as Britain turned it down in the Colonial Conference of 1887, showing how Britain often exploited Empire.
How did ships and shipping contribute to Empire?
- Reached highest efficiency in 1860s with clipper ships. Suited to low volume, high profit goods such as tea, opium, spices. Used to carry mail and people.
- Development of steamship allowed heavy goods to be carried overseas in 1850s. Reduced travel time between Great Britain and West Africa to less than 3 weeks and increased cargo capacity.
- Opening of Suez Canal in 1869 and development of triple expansion engine in 1870s further stimulated construction of steam carriers.
- Steamships also used in inland regions, for example travelling up River Niger.
How did railways contribute to Empire?
- Railways key to economic development in Empire but also maintaining control. Allowed quick transport of goods.
- Railways allowed Australia to export wheat and wool, South Africa to expand territories and commercial interests in region, India to link cotton & jute-growing areas of North with mills of Bombay and Calcutta and enabling rice to reach ports for export and, in West Africa, allowed for links between land and sea.
How did canals and rivers contribute to Empire?
Canals and rivers allowed explorers to investigate Africa beyond accessible coast areas. In India, canals and rivers built waterways where there were none. Allowed avoidance of hazardous stretches of water.
(Products of trade and commerce) Examples of Agricultural benefits of empire?
- Tropical colonies like South Africa produced goods that weren’t available in Britain such as sugar, coffee, cocoa, groundnuts, copra and palm oil.
- Tea in India was important as it became most popular British drink by 20th century.
- In 1854, value was £24,000 by 1876, it was £2,429,000.
- Cotton from India also important as it was often used to convert goods to sell back to colonies.
- In 1854, value was £1,642,000. In 1876, it was £5,875,000.
(Plantations built in India to grow products. Workers were often underpaid.)
(Products of trade and commerce) Examples of Mining benefits of empire?
- desire to exploit precious metals and theme became an important trading commodity
- eg: Gold discovery in Transvaal was significant as it caused influx of migrants (near 30,000 from Cornwall) into region, securing British interests.
What were chartered companies?
- Chartered companies were main way of organising trade before 1850.
- East India Company was chartered. British government allowed them to progress at own rate, seeing competition as sign of healthy capitalism.
What role did chartered companies play in expansion?
Economic depression of 1870s revived idea of chartered companies as way to expand British interests at 0 cost to government.
- In 1881, North Borneo Trading Company received charter for means of administering territory and maintaining British influence against French.
- North Borneo benefited
from deposits of coal,
iron, copper and
economic infrastructure
development.
- North Borneo led to establishment of Royal Niger Company in 1886, Imperial British East Africa Company in 1888 and British South Africa Company in 1889.
Pros of trade 1857-1890
- Trading with Empire benefitted Britain.
- From 1857-1890, 20% of British imports came from her Empire whilst Empire provided Britain a market for 30% of her exports.
Britain developed infrastructure in her colonies. - London being financial centre of the world, around 40% of British foreign investment went to her colonies. Britain built railways, telegraph lines, developed roads and the general economy in her regions.
- In India, miles of railway track grew from around 288 in 1857 → 20,000 miles of track in 1890.
- From 1857-1890, 20% of British imports came from her Empire whilst Empire provided Britain a market for 30% of her exports.
- During depression of 1870s, Britain’s reliance on her Empire led to growth of trade with her colonies, which ultimately benefitted them.
- Value of tea soared in India from £24,000 in 1854 → £2,429,000 in 1876. Cotton soared from over £1,500,000 in 1854 → £5,500,000 and over in 1876. - Led to glorification of Empire in Britain with Colonial and Imperial Conferences and Exhibitions.
cons of trade 1857-1890
- Didn’t always benefit natives in colonies. They were often underpaid, overworked and mistreated by British.
- Trade between colonies was prohibited and Britain dominated trading environment.
- Colonial Conference of 1887 prohibited trade between colonies.
- Cecil Rhodes and Goldie benefitted Britain from trade with Empire.
- Trade with Britain wasn’t always helpful as many countries relied on protectionist tariffs to develop their own industries and economies.
- Canada in 1850s and Australia in 1860s imposed tariffs against Britain.
