Chapter Sixteen Flashcards
What was the state of the country when the Conservatives came into government in 1841?
In the middle of an economic slump- Whig government had left a budget deficit. Meant the Conservatives were divided in their attitude towards change and reform, and there was so much social unrest. Condition of England question. Conservatives received less seats in large industrial boroughs.
What were Peel’s objectives?
Made clear his intention of exercising his ‘personal authority’ from the start of the ministry.
‘If I exercise power it shall be upon my view…of public duty’
His first objective was to concentrate on economic and fiscal reforms. Wanted to revive the economy, stabilise gov finances and stimulate trade which would lower the cost of living, unemployment and discontent.
What financial budgets did Peel bring in?
In 1842, and due to the success, he confidently brought in another in 1845.
1842- income tax for people earning more than £150 a year (for the first time during peacetime), cit taroffs and lowered the 1828 Corn Law ‘slidingscale’.
1845- further free trade measures, in line with Pitt and Huskissn but ignored by Whigs. Duties on raw cotton and most raw materials abolished and on imported sugar was reduced.
Why did Peel need to bring in the 1842 and 1845 financial budgets?
Misery and hardship due to the most recent economic downturn in 1841. Chartists had revitalised their campaign with O’Connor becoming the leader in 1842, more dangerous.
What report did Chadwick publish?
Report on the ‘Sanitary Conditions of the Labouring Classes’ in 1842, although public health reform was not introduced until after Peel in 1848.
Prompted by the extension of the Poor Law Amendment Act.
What was the Mines Act?
- Prevented women and children working underground.
What did Graham attempt in 1843?
To introduce compulsory education for two hours a day for factory children. But was rejected over arguments as to which religious denomination would provide the schooling.
What were Peel’s actions in Ireland?
He responded harshly to O’Connell’s final bid to achive the Repeal of the Act of Union, and thus he wanted to win the support of the educated section of the Catholic population.
Proposed to increase annual grant to Maynooth, Cath College where priests received training. But fiercely opposed by Anglicans, Nnconfirmists and number of Conservative MPs. Divided Conservatives- passed with Whig support.
1845 potato crop destroyed by blight- little alternative but to repeal Corn Laws.
Why did Peel secure the Bank Charter Act in 1844?
He wanted to restore confidence in British currency. Wanted to curb the over-issue of Bank notes- cause of continued financial instability. Reform passed after years of discussion.
To meet requirements of expanding industry, in which larger businesses required larger loans that small banks could not provide.
What was the Bank Charter Act?
1844
Meant that the Bank of England could issue notes with a face value in place of cash but ny notes issued over £14 million had to be supported by gold bullion reserves. Bank of England given monopoly of issue.
One of Peel’s most important pieces of legislation and remained in pace until WW1. Beginning of Bank of Engand’s role as administrator of Government’s monetory policy.
Why was the Bank Charter Act crucial?
The success was crucial to the rest of his economic policy. Powerful economic interests in Britain depended on a sound currency and a successful international trade.
If stakeohlders knew currency was backed up by gold they would be confident that bank notes issued would be worth their face value.
Deter reckless speculators and boost industry.
What were the problems regarding Joint Stock Companies?
1844 Report of the Select Committe on Joint Stock Companies found that there were few controls in place to limit fraudulent practice or curb risky speculation of money- absence of proper accounting.
What was the Joint Stock Comapnies Act?
1844
Introduced measures to regulate company finance. Salaried Registrar of Companies was appointed and it became obligatory or any company with 25+ members and shares to be on new Companies Register. Had to produce regularly audited balance sheets.
What were the failings of the Joint Stock Companies Act?
Could not wipe out all malpractice but was still important.
Companies formed by an Act of Parliament exempted e.g Railay companies who were making lots at this time. Due to interests in Parliament. Gladstone, at Board of Trade attempted to bring in legislation to control these companies but was rebuffed.
What was Peel often criticised for?
Insensitivity, aloofness, and arrogance.
