Trade & Commerce 1890-1914

Question 1

Development of trade and commerce: What goods were brought to britain and from where?

Answer 1

• Wool and sugar from South - Africa and Australia.
• Dairy produce and lamb from New Zealand.
• Beef and wheat from Canada
  (Canada supplied upwards of 10% of Britain’s beef and 15% of flour by 1914. )
• West African timber, cocoa, rubber, peanuts and palm oil.

Question 2

What was trade like for Britain at this time?

Answer 2

Trade was plentiful with Empire to an extent. India in particular took 20% of total British exports, worth almost £150 million, by 1914.

Question 3

Declining interest in Empire’s economic importance/ free trade?

Answer 3

Despite plentiful trade with places like India…
- calls for free trade grew. Imperial Federation League of 1884, which opened to promote closer colonial ties, was disbanded in 1893, reflecting waning interest in Empire’s commercial importance.
- Britain began trading more with non-imperial world, e.g. USA.

Question 4

Trade with non-Empire countries?

Answer 4

• Most of food imports (cheese, apple, fresh mutton) came from non-imperial powers: only 10% came from Empire. In 1894, Britain imported most of wheat from USA.
• Total trade worth in 1896 was £745 million. Between Empire, only £183 million.
• In 1913, Britain imported 75% and exported around 63% of goods to non-Empire countries.

Question 5

Questioning towards African Expansion//trade?

Answer 5

Questioning towards African expansion. In 1897, whole of Tropical Africa was 1.2% of British exports and colonies began purchasing from foreign nations more. Reliance on Africa for rubber industries whilst French, Germans and Russians had own rubber synthesis fuelled anti-imperial resentment.

Question 6

Where was Britain investing if not in Empire so much?

Answer 6

• More investment overall. £2 billion → £4 billion between 1900-1913.
• Britain heavily invested in informal empire:
  ø By 1914, had invested twice amount of French and three times amount of Germans overseas.
  ø Allowed Britain to benefit as terms of trade (relationship between import/export prices) moved 10% towards Britain.

Question 7

Money invested into USA/India?

Answer 7

Less money was invested in Empire: more so into the USA and India as these projects provided bigger returns, as opposed to Empire investment which was ‘safe’. Fears of loaning to Empire fuelled by competing manufacturing.

Question 8

Colonial Stocks Acts 1899/1900

Answer 8

Colonial Stocks Acts of 1899 and 1900 facilitated number of infrastructure projects, including rail links into African interior from ports of Lagos and Mombasa.

Question 9

Forced use of Gold standard?

Answer 9

Forced use of Gold Standard → only a few countries didn’t use it by 1908.

Question 10

What was Imperial Preference?

Answer 10

• Pro-imperialist Joseph Chamberlain, Conservative Colonial Secretary who convened 1902 London Colonial Conference, discussed imperial customs union, essentially giving preference to Empire via protective tariffs and prohibition of imports from non-imperial powers.
• Chamberlain believed in imperial preference as it would be useful in times of emergency. Believed it had potential for greater productivity and growth.

Question 11

Why was Chamberlain’s policy of imperial preference unsuccessful?

Answer 11

• Met with resistance from manufacturing, shipping and banking industries whose interests were with free trade and wider international community rather than imperial economy.
• Death of imperial preference came in 1906 general election when Liberal party was elected, who favoured free trade.
• Colonies saw future with other imperial powers. Canada for example was considering commercial union with USA.