Study Notes on Free Trade and Global Order: Victorian Perspectives

CHAPTER 2: Free Trade and Global Order: The Rise and Fall of a Victorian Vision

I. INTRODUCTION

  • Historical Context: Repeal of the Corn Laws in 1846 marked Britain's unprecedented course for a Great Power.

    • Adoption of unilateral free trade opened markets to all nations equally without seeking reciprocation.

    • Free trade was seen as a replacement for warfare between nations, moving from a zero-sum game among mercantilist states to a vision of universal peace.

  • Key Figures:

    • Sir Robert Peel (Conservative architect of repeal) encouraged freedom of intercourse to promote welfare and fulfill the designs of a wise Creator.

    • Defined commerce as a means of civilization, reducing national jealousies, and maintaining peace.

    • John Stuart Mill viewed free trade as a guarantee of world peace, stating that its growth was vital for human progress.

  • Victorian Public Perception:

    • The expectation that free trade would lead to civilization and peace was ingrained in the public morality of Victorian Britain.

II. COMMERCE AND PEACE, 1776 – 1846

  • Classical Political Economy Influences: Sourced from the classical political economy of the Scottish Enlightenment.

    • Links between international trade and universal peace rose as British mercantilist restrictions were dismantled post-war.

  • Adam Smith's Contributions:

    • In Wealth of Nations (1776), posited the utopia of free trade, overcoming mercantilist restrictions, but acknowledged the obstacles due to warfare.

  • Malthusian Influence: Post-1815 liberalization was clouded by concerns over population growth outpacing food supply.

  • Economic Theorists:

    • David Ricardo's theory of comparative advantage illustrated international trade's benefits, yet many early liberals remained hesitant.

    • Protectionism and mercantilism defended rigorously amidst the rising tide of liberal free trade advocates.

  • The 1830s Shifts: Emergence of international possibilities in economic progress:

    • Benthamite Utilitarians: Focused on the link between free trade and peace.

    • Shift in priorities among philosophical radicals towards reciprocity, the Corn Laws, and national perceptions.

    • Following 1815, creation of peace societies promoting ideals of a world without wars combined with free trade.

  • Anti-Corn Law League: Advocated international harmony and peace post-repeal.

III. FREE TRADE AND THE INTERNATIONAL ORDER, 1846 – 1859

  • Domestic vs. International Agenda: Debate surrounding the impacts of free trade, such as wage levels and the privileges of elites versus broader international relations.

  • Class Relations: Free markets perceived as threats to artisans but ultimately aimed to ensure welfare for wider populations.

  • Victorian Vision of Market Society:

    • Individual property and consumption seen as markers of modernity, contrasting with communal defenses in Germany and France.

  • Cobden's Perspective: Advocated against imperialism, believing trade alone would build connections rather than military power. He opposed force as contradictory to free trade ideals.

  • 1846 Legislative Success: Britain's unilateral trade removal marked a significant shift, with Great Exhibition of 1851 symbolizing this new vision.

IV. TOWARDS THE 'COMMONWEALTH OF EUROPE', 1860 – 1873

  • Intellectual Shifts in the 1850s: Concerns about imperialism versus the promise of modern commercial liberalism.

    • Notable treaties emerged, rekindling interest in free trade at the Paris Exhibitions.

  • International Compacts and Commercial Treaties: Seen as a way to balance sovereignty with integration into a global market economy.

  • Commercial Treaty Models: Driven actions in the Zollverein and optimizing benefits through trade agreements with European states.

  • Failure of Free Trade Expansion: After initial successes, gradual realization that trade agreements were inadequate to counter protectionist sentiments.

V. THE RETREAT FROM FREE TRADE, 1873 – 1914

  • Cultural Shifts: Changes in European thoughts led many to see universal free trade as undermining national sovereignty rather than supporting it.

  • Emergence of Protective Policies:

    • The fair trade movement claimed free trade benefitted only foreign industries over Britain’s domestic ones.

    • Rise in tariffs linked to state revenue needs and military demands toward the end of the 19th century.

  • Reactions Against Globalization: Triggered partly by the Great Depression post-1873, as many perceived themselves as losers in globalization.

  • Increased Focus on Empire: The Greater Britain theme emerged, suggesting a more imperial focus on Britain’s economic future within its colonies, expressing a pivot back to medieval mercantilism.

  • Conclusions of the Victorian Order: The idealist vision of free trade that once aligned with peace waned, replaced by an image of a fragmented global economy and protectionism.

VI. CONCLUSIONS: TRADE AND WAR

  • Reassessment of the Global Vision: Shift from a shared free-trade ideal to an era of burgeoning nationalism and protectionism diminished earlier aspirations.

    • The infusion of tariffs and militaristic strategies contradicted the founding principles of trade peace.

  • Legacy of Free Trade Ideals: While some figures like Cobden saw trade guarding against war, by the 1880s protectionism became necessary for sustaining national interests, thus eroding the foundations of a harmonized global economy.

NOTES

  1. Statements made by Peel, John Stuart Mill's insights on trade, and subsequent analyses present a comprehensive view of the evolution of free trade thought consistent with Victorian values.

  2. Various economists and political figures shaped the protection against national interests articulated from the mid-19th century onwards.

  3. Societal perceptions, particularly regarding obligations to peace and commerce, define the political terrain across which economic ideals fought.