Britain c1851 - 1964: Economic Developments 1851 - 1885

What happened in 1951 which showed Britains powerful industry?

Great Exibition 1851

What was the name of the exibition it took place in?

The Crystal Palace

How much trade passed through British ports?

25%

How much traded goods did Britain produce?

40%

How long did this 'Golden age' last?

Around 20 years (1850s-1870s)

Developments in Trade

What were the main staple industries?

- Coal

- Iron

- Steel

- Textiles

- Shipbuilding

How much did industries produce an economic growth of?

2-3% per year

What British market boomed?

British export market boomed - profit raised provided capital for reinvestment in British interests

What did trade improve?

Foreign relations

What policy helped in sustaining economic growth?

Free Trade Policy and Gladstones reduced taxation

How did newfound consumerism help they economy?

More people had disposable income which meant they could purchace more non essential items which intern drived up the economy and increased prosperity

Developments in Agriculture

What did Britain enter by the 1850s?

The 'Golden age' of agriculture

What was good about the harvests during the 'Golden age'

- High yeilds of crops

- Prices were steady which increased farmers income

What methods were introduced which helped farming and how?

'High farming' methods were introduced which boosted productivity as farmers started to move from arable farming to mixed farming (crops & livestock) which increased profits for farmers

What new fertiliser was introduced and how much was the industry worth?

Guano (Seabird droppings) was imported in large quantites from Peru

The industry was worth £8 million a year by 1870

How much was the Animal feedstuffs industry worth?

£5 million a year

What caused issues with the incresed level of farming?

Bad drainage systems ment land could be flooded and crops ruined

How did the government help to counteract this issue?

The government intorduced loan schemes for farmers to get new drainage systems installed

What technology was introduced to help farmers?

Horse drawn reaper, Ploughs, seeders

What was the problem with the technology introduced?

It was introduced very slowly and it wasnt always reliable

What was developed to help with the transportation of food?

Railways were developed

By the 1870s how much wheat and meat did Britain produce?

50% wheat

90% meat

What effects did this have on British life?

It improved the quality of life and health in Britain

What was a big factor in the 'golden age' of agriculture?

Element of GOOD LUCK

Developments in Industry

What were the main reasons for Britains industral progress?

- First industrialised nation

- Greatest colonial power - controlled sea routes

- Big supply of natural resources (coal & iron)

- Forged ahead in design and production

- By 1875 every major city and town was connected with railways

- Population grew from 27 million in 1851 to 35 million in 1881

How did trade help with industry?

- Move towards free trade in Gladstones tarrif reforms

How much did the output of coal grow?

1850 - 50 million tons

1875 - 130 million tons

What happend to the demand of Steel and Iron?

Rapidly increased

What machinary was created to increase iron output?

Neilsons - Hot blast (1827)

Nasmyths- Steam Hammer (1844)

How much did the output of iron grow?

1855 - 9 million tons

1875 - 15 million tons

What was steel used for mostly?

Replacing iron railway tracks with steel railway tracks

What did railways later link which increased tourism?

Railways later linked cities to seaside towns which increased tourism

Which towns were big railway towns in Britain?

Crewe, Derby & Doncaster

What was the increase in miles of track layed?

1860 - 9,069 miles of track

1875 - 14,510 miles of track

What happened to shipbuilding production as a result of the growth in world trade?

Shipbuilding increased rapidly

What famous shipping route was created as a resulty of increased trade?

Suez canal 1869

What were the main textiles harvested?

Cotton and wool

How much of exports was textiles in 1851?

2/3 of British exports

What were the 3 main economic ideologies?

- Free Trade

- Laissez-faire

- Protectionism

What is Laissez-faire and how did it impact the economy?

- Government adopted a Laissez-faire attitude

- 1776 Adam Smiths 'the wealth of Nations' argued if the government inteviened in trade it would limit economic development

- Encouraged growth and prosperity

- Gladstone was a firm believer in Laissez-faire

What is Protectionism and how did it impact the economy?

- Influential in 1880s but not endorsed

- Government policies that restrict international trade to help domestic industries

- British manufacturers were excluded from markets of the civilised world - opressed by tarrifs

- Tarrif reform on the political agenda

- Proposal of shilling duty on wheat which caused uproar in parliament

What is Free Trade and how did it impact the economy?

- Endorsed by Liberal/Whig Government

- Gladstones main objective as Chancellor

- Adoption of Free Trade policy led to massive increase in volume of trade

- Provided stimulus for further economic growth

- 1880s fair trade league setup to try and stop free trade as they wanted more of a protectionist approach

Problems with Agriculture

Why did the 'Golden age' end so suddenly?

Wet and cold summers + poor harvests

What was started to be imported?

Cheaper grains were imported from USA

How much grain was imported by 1886?

2/3 grain was imported

What could have saved the British agriculture and why was it not introduced?

Tarrifs could have protected agriculture but Disraeli was opposed to free trade

What happened as a result?

British Farmers had to diversify

Poultry farming had become popular

Problems in Trade

What was Britain dependant on?

Britain was dependant on its export trade to maintain economic supremacy

What had evolved by 1880s?

The world economy had evolved and other countries started to economically grow

Who noticed that Britains supremacy was being challanged?

Royal Commission of Industry & Trade noticed Britains Supremacy was being challanged by 'foreigners'

Why is it arguable that Britain survived the challenge of foreign competition to its industry?

- Britain's shipping industry was still the largest

- Britain bought 50% of meat exports

- Invisible exports strived eg. tourism

- Had a balance of payments

- Its capital investments continued to produce a healthy income

Why did the USA and Germany develop?

- Improved education in Germany

- Political stability

- Railways for USA

- Abundance of nautral resources

- Learn from British mistakes

- Population expansion