The Changing Nature and Extent of Trade Flashcards
Why was British debt growing between 1763 and 1821?
Government debt was 157% of GDP in 1763 rising to 260% in 1821 as Britin struggled to pay for the American War of Independence, the French Revolutionary Wars and Napoleonic Wars. Strategies such as repeatedly funding European armies to fight France and maintain naval squadrons at sea to blockade French ports were effective but expensive.
What were the key aspects of mercantilism and the Navigation Acts?
-All trade had to be carried on English or colonial ships
-Colonies could only export goods to Britain
-All European goods going to the colonies had to pass through Britain first where they would be taxed before being shipped onwards
-Tariffs were placed on goods imported into the country to ensure they would be more expensive than domestically produced products thus ensuring the protection of British based companies
Why did the government begin to adopt a policy of free trade?
The government aimed to increase the overall volume of trade by reducing taxes on trade, and used diplomacy and coercion to make other countries do the same.
How did the standardisation of trade help Britain in the mid 19th century?
Britain combined an extensive empire, producing raw materials such as sugar and cotton, and an advanced manufacturing economy which could process them. This meant Britain could produce goods more efficiently and cheaply than rivals and dominate the markets.
How were colonies seen by the Great Powers?
As very valuable as they provided both raw materials and markets for goods. This led to a frenzied period of colonisation, characterised by the Scramble for Africa. Britain ultimately took territory to prevent other countries gaining it.
What were the economic reasons for British involvement in the slave trade?
Up to the 1800, the trade in African slaves and the use of their labour was seen as critical to British economic power. Britain dominated the triangular trade which involved the sale of goods and slaves and was seen as a critically valuable part of the British overseas empire, with huge profits being made. In 1798, the Lottery (a ship from Liverpool) made a profit of over £12,000. The main slaving ports: Bristol, Liverpool and Glasgow became extremely wealthy and by the 1790s, 120-130 slave ships a year sailed from Liverpool.
How did the government benefit from the slave trade?
The government was able to place taxes and tariffs on the slave trade and use this money to finance the Royal Navy and wars. Skilled sailors and ships could also be used by the government in times of war.
Why did the ruling class support the slave trade?
Large numbers of English gentry and MPs had provided loans for the purchase of slave ships so had financial interests in the slave trade. In 1766, at least 40 MPs had financial interests in the slave trade. This was also true for the governor of the Bank of England and the Church of England, which owned a slave plantation in Barbados.
When was slavery abolished by the British Empire?
Slavery in the West Indies only ended in 1834 when the government abolished it by paying £20 million to slave owners for their ‘property’. This freed more than 800,000 slaves. The 1807 Act only ended trade in slaves across the empire.
What were the economic reasons for the abolition of the slave trade?
There was a world over-supply of sugar and British merchants had trouble re-exporting it. Sugar could be sourced cheaper without the use of slave labour. Plantation owners suffered some decline in profits (although they were still profitable until it became illegal in 1807). Losses to foreign privateers during Britain’s prolonged wars, together with the threat of disease and impact of slave rebellions created considerable financial uncertainty and some slave ships became unprofitable.
What were the political and international reasons for the abolition of the slave trade?
PM Pitt opposed abolition while Britain was involved in wars with France but when France reintroduced slavery, the British favoured abolition to destabilise the French. When the Foreign Slave Trade Abolition Bill was introduced in 1806, it was presented as an anti-French measure to win border appeal. Generally more support for abolition in the HoC: new liberal Irish MPs supported abolition and new PM Grenville in 1807 threw all his weight behind his Slave Trade Abolition Bill in the HoL.
What were the humanitarian/public pressure reasons for abolition of the slave trade?
Rise of evangelical Christianity like Methodists and Quakers who opposed slavery. Public campaigns- Wedgewood designed protest plates. Abolitionist campaigning- Equiano, Wilberforce. The National Petition Campaign of 1788 resulted in over 500 petitions sent to Parliament. Increasing slave resistance.
What is some evidence that political and international factors were the main cause of the abolition of the slave trade?
When France freed their slaves in 1789, emancipation was regarded as pro-French so politicians and the public turned against it. However, by 1802, Napoleon was attempting to restore slavery in France so Britain started supporting emancipation to undermine the French. The Slave Trade Act 1807 was presented as an anti-French measure to gain it the support it needed in the Houses of Parliament.
Did the British abolition of the slave trade in 1807 have a huge impact on reducing worldwide slavery?
No- slavery continued, especially in South America and British involvement in places where slavery happened remained. Although Britain undertook anti-slavery patrols, these were largely ineffective and only 22% of the ships participating in the illegal slave trade were intercepted by the British blockade.
How did the abolition of the slave trade change British trading patterns?
The abolition of the slave trade meant the Triangular Trade declined and was no longer so central to British commerce. British merchants had to find new ways of making money and therefore sought out new markets and new trade routes, leading to the expansion of British trade outside of the Empire and into the areas of North and South America (expansion of trade). Britain turned its back on mercantilism and increasingly favoured free trade as British traders expanded trade with North and South America without restrictions. Abolition strengthened commercial ties with North America which was already around 60% of exports by 1801.
How did the abolition of the slave trade change the British view of labour?
It was a move towards a new concept that free labour properly incentivised was superior to slave labour in productivity and this was a way to produce cheaper and better products. Additionally, by earning actual wages, these workers would have disposable income to spend and thus enhance the economy instead of being treated as products themselves (ideas of free trade).
How did the American Wars of Independence result in Britain moving from mercantilism to free trade?
Trade with America prospered after the American Wars of Independence, with the removal of tariffs and controls. America was dependent on British textiles and manufactured goods and Britain imported 90% of her tobacco from the USA and also used American cotton. It was one of Britain’s most profitable trading sectors and this greatly strengthened the argument for free trade.
What else motivated the British move towards free trade?
-Singapore was established as a free port in 1819 and during the first year of its operation, $400,000 (Spanish dollars) worth of trade passed through Singapore and this proved the success of free trade
-Britain was rapidly advancing as Europe’s leading industrial power and could dominate the market place, not needing to fear competition
Who was Adam Smith and what were his ideas?
He was a well known economist who published his book The Wealth of Nations in 1776. He believed in a free market economy, self interest transformed into a desirable end by the ‘invisible hand’, division of labour, economic cycles and a self regulating market.
What impact did Adam Smith have?
-In 1779, the government removed many trade restrictions from Ireland after consulting Smith
-William Pitt was persuaded to agree a new trade treaty with France in 1786, reducing tariffs on goods like oil, wine, textiles and pottery
-Huskisson, President of the Board of Trade in the 1820s, promoted Smith’s ideas
-Leading politicians like Lord Liverpool and Robert Peel became advocates of free trade although did little to advance it before the 1840s
How was Adam Smith’s impact limited?
-In 1786, the Navigation Acts were strengthened to ensure American shipping was excluded from the West Indies
-When war with France ended in 1815, the Corn Laws were introduced to keep grain prices high by excluding foreign grain from British markets
-Wealthy landowners in Parliament were opposed to a move to free trade as it would reduce their profits and this meant successive Tory MPs made little progress in tariff reductions
How did the demographic change contribute to the move towards free trade?
As Britain became more urbanised, most British citizens no longer produced their own food and the country became more dependent on food imports. In 1846, Britain grew about 3/4 of its grain compared to less than 1/5 by 1914. Free trade would mean more competition for British food producers but would result in lower food prices for British workers, giving them more money to spend on goods and services which might boost the economy.
How did social factors cause the British move towards free trade?
Political campaigners had been exposing the extent of urban poverty and in the 1840s, the newspapers carried reports of the mass suffering in Ireland, which had been hit by the potato famine. A free market would have lower food prices which would make those living in urban poverty more able to afford food.
How did political factors cause the move towards free trade?
In the 18th century, Parliament was dominated by landed aristocrats who strongly pushed for retaining tariffs to keep prices high and protect the profits of their landed estates. Political reform in the Great Reform Act 1832 changed constituencies to give the vote to merchants, bankers and factory owners (who all favoured free trade). Conservative leaders like Peel in the 1840s, knew that they had to appeal to these new voters if they were to stay in power.
What were the commercial benefits of moving from mercantilism to free trade?
Restrictions on trade were seen as a hindrance to Britain’s potential economic growth. Tariffs made importing and exporting more difficult and thus slowed down the trade in goods produced in the country. Free trade would also stimulate industry, spark greater consumption and the government would earn more through taxation on goods and services.
Why were the Corn Laws introduced?
During the Napoleonic Wars there was a naval blockade which made it difficult to import food, meaning British producers could sell their food at a high price without foreign competition. When the war ended, there was an oversupply of corn, leading to a decrease in prices. The Tory government led by Lord Liverpool, introduced tariffs on imported corn to ensure that the price of British corn didn’t fall.
