2: The impact of industrialisation

Question 1

bank of England set up when

Answer 1

1694

Question 2

number of banks 1784 and 1808

Answer 2

1784 - 119 (not London)
1808 - 800

Question 3

with the growth of the british empire..

Answer 3

there was significant opportunity for profit through british goods

Question 4

banking allowed for..

Answer 4

capital to be available to fund business ventures - start up and running costs

Question 5

expensive machinery and banking

Answer 5

expensive machinery often necessitated a bank loan
(e.g. Richard Arkwright’s Water Frame or Crompton’s Spinning Mule)

Question 6

pre-industrialisation banking

Answer 6

private companies
goldsmiths who exchanged gold for paper bills
made financial transactions easier

Question 7

county banks 1797

Answer 7

in 1797 they could issue bank notes. gave employers an effective way of paying wages from a central fund

Question 8

limited growth in banking pre1826

Answer 8

there was a cap which prevented banks issuing notes if they had more than 6 members (stopped joint-stock banks and kept banking localised)
this was removed in 1826, which allowed larger joint-stock companies to absorb smaller ones and manage more money

Question 9

joint stock banks

Answer 9

first JS bank was 1826 Lancashire Banking Company
formed after cap was removed
by 1866, there were 154 JS banks with 850 branches nationwide

Question 10

significance of banking - development of urban areas

Answer 10

end of cottage industry and start of large scale operations
e.g cotton - by 1833 it was employing more than 833,000

Question 11

banking allowed landowners to do what?

Answer 11

invest and easily transfer assets around
railway investment was common. building of docks also was, in 1839 the Marquess of Bute built docks at cardiff bay
bought mills and employed MC to run them

Question 12

what did banking allow the middle class to do (as well as businesses)

Answer 12

invest

Question 13

the MC were majority..

Answer 13

small factory owners or merchants

Question 14

between 1816 and 1831..

Answer 14

the MC increased by 75%
by 1831 there were more than 200,000 MC

Question 15

MC relationship with WC

Answer 15

complicated
helped build new urban centres which provided them work
BUT created the “master/worker” identity

Question 16

middle class and adam smith

Answer 16

sought to apply adam smith’s free trade principles
often gave them a hard nosed attitude due to this aggressive economic approach

Question 17

richard arkwright - MC

Answer 17

born son of a tailor who could not afford to send him to school
he died with a personal fortune of £50,000 and a knighthood
invention of a water frame which harnessed water power to spin yarn and then used this money to buy mills in Derbyshire

Question 18

preindustrialisation, centres of economic power had been..

Answer 18

the fertile county lands
fed the nation and produced goods for trade

Question 19

cotton industry - economic region diversity

Answer 19

cotton flourished in lancashire (good climate)
liverpool port (cotton imported from USA)
liverpool/manchester railway completed in 1830 and was fundamental

Question 20

most important raw material

Answer 20

before the steam engine (1769) it was water power, but after this coal became the most important

Question 21

industry became centered in areas where..

Answer 21

raw materials were easily available

Question 22

geography and raw materials

Answer 22

NW - textiles (cotton and wool)
NE - mining and strong ship-building industry
Midlands - engineering
SE (not London) - agriculture (grain)
SW - agriculture and tin in Cornwall

Question 23

southern regions developing

Answer 23

especially after 1789 threshing machine
just at a slower pace compared to north
still vital industry

Question 24

machinery and demand for work

Answer 24

north - created demand for work
south - reduced need for human labour

Question 25

populations in urban areas

Answer 25

1750 - only london and edinburgh had populations over 50,000 1851 - 29 cities of this size. London had 2.3 million!

Question 26

transport and industrialisation

Answer 26

improved as industrialisation continued canals superseded by rail network roads improved

Question 27

housing

Answer 27

build close to factories ‘back to back’ minimised building costs communities developed as people settled in employment

Question 28

biggest community of industrial workers

Answer 28

manchester nicknamed ‘cottonopolis’ population in 1831 = 182,000 followed quickly by Birmingham, Glasgow, Leeds etc

Question 29

government attitude towards industrialisation

Answer 29

landed interests were widely worried about the growing power of urban areas but continued with a laissez=faire approach. only intervened when there were obstacles to profit (e.g. combination acts or master and servant act)

Question 30

1835 municipal corporations

Answer 30

before this, the majority of public works were privately owned but they needed parliament’s permission to operate and there were fundamental ground rules. with this act, local councils could take over these responsibilities (such as street cleaning or drainage) if they wanted

Question 31

railways

Answer 31

managed by private companies in partnership with gov first line made in early 1820s - Stockton and Dartington needed an act of parliament to incorporate (legalise) company and allow it to have land. gov could therefore influence the industry’s development (especially after 1844 Railway Regulation Act)

Question 32

repeal of several laws which had promoted gov intervention

Answer 32

1813 repeal of statute of artificers (had provided some regulation of wages/working conditions) 1826 bubble act was repealed (removed JS bank cap) 1846 corn laws repealed (removed import restrictions)

Question 33

the government was not uninterested in industrialisation..

Answer 33

rather they wanted market forces and private individuals to dictate change

Question 34

where was wool dominant

Answer 34

in the west riding of yorkshire

Question 35

a well-established banking system allowed people to..

Answer 35

build up savings and this provided them with capital to invest growing investment in roads, canals, industry (mostly textile) and railways.

Question 36

annual rate of domestic investment

Answer 36

rose to over £40 million by the 1830s

Question 37

investment during the french wars

Answer 37

high investment in farming as high wheat prices encouraged investment in enclosure

Question 38

change in britain’s economy

Answer 38

- labour force employed increased in industry, and in farming fell - small-scale industries still (average firm in Lancashire employed 260 people) - britain could dominate world trade in manufacture. half of the global goods came from britain

Question 39

problems with mechanisation

Answer 39

- costly and often unreliable (new technologies) - many workers resisted the introduction of new technologies - arkwright’s water frame was too large for domestic industries

Question 40

transport development

Answer 40

- movement of goods and people sped up dramatically - in the 1780s, it took 10 days to get from london to edinburgh. by the 1830s, it took 45 hours. - canals created employment and a cheap system of transport - towns grew around railway engineering centres e.g. swindon, doncaster and crewe