Changes in the Role of the People Flashcards
(87 cards)
What kind of wars were the first and Second World War and what is this?
- Total war
- Involves whole pop in war effort
ADDED CARD:
How did civilians have a major impact on the French Wars, the Crimean War and the Boer War, even though the war did not have a large impact on them?
- In the French Wars, the efforts of virtually the entire population contributed to their victory
- In the Crimean War, public opinion, influenced by a powerful press and reporting from the war, helped bring about a change in PM. It also showed how women could assist the war effort eg Nightingale and Seacole
- In the Boer War, civilian uproar led to a change in concentration camp policy
What was the Bank of England responsible for and how was this advantageous when compared to other countries?
- Issuing gov bonds
- They could pay with a promissory note when they commissioned work whereas other govs had to pay for everything in cash
Promissory note:
Piece of paper promising that debt will be settled on demand
Why were gov bonds a good way to make money, despite the fact that it was not quick?
Gov was rarely short of willing investors in a new bond issue
What other things were issued in addition to standard bonds and how did they differ from normal bonds?
- Consols
- No fixed period in which they had to be repaid
State 2 wars where consols were issued when they were in desperate need for money:
- Crimean War
- 1920s after WW1
What were the benefits of consuls for the investor? (2)
- Every quarter they would receive an interest payment
- Consols become highly tradable on stock market when rate of inflation was very low
When were the first consols issued and at what interest rate?
1750s w/ rate of 3.5%
In general, did consols form a large part of gov debt?
No
How were the French Wars financed, alongside the methods from before? (5)
- Indirect tax reforms
- New tax on inheritance
- Suspension of gold payments by Bank of England (BoE)
- Reduction in import duties
- Introduction of income tax (Income tax Act)
Between 1783 and 1792, how much had gov revenue been increased by, as a result of the indirect tax reforms?
12.7 mil to 18.6 mil pounds
When was the income tax introduced and what was the rate?
- 1798
- 2 old pence on incomes above £60/yr, 2 shillings above £200/yr
Who did the tax affect and how much money did the tax bring about in the first year?
- Wealthy businessmen and landowners
- Extra 6 mil
When was income tax suspended, why and when was it reinstated?
- 1802, as peace was signed
- 1803, as war broke out again
From 1815 to 1914, how were Britain’s small wars paid for? (2)
- Taxation
- Small increases in national debt
Why is it that colonial wars throughout the 19th century did not need much finance? (3)
- Enemy was often few in number, so a large number of British troops were not needed
- Enemy was often poorly equipped
- British were able to conscript local troops to fight for them
Which 2 wars required heavy gov borrowing?
- Crimean War
- 2nd Boer War
How was the First World War financed? (8)
- Gov bonds
- Direct loans
- War bonds offered to public
- War Savings Certificate Accounts
- Increased tax revenue
- BoE kept gold as emergency reserve
- BoE issued more banknotes
Give a stat to show the heavy amount of gov borrowing during WW1:
Between 1914 and 1918, national debt increased from 625 mil to 7,800 mil
Where was money borrowed from through the form of gov bonds and direct loans?
- Gov bonds: British and international institutions (many from US)
- Direct loans: Other govs (notably the US)
What are war bonds?
Investment bonds bought by individuals on the understanding that after the war gov would pay them back plus interest
How much interest was the first issue of war bonds and how did this change?
- 5%
- 3.5%
Were war bonds expensive?
They could be priced as low as £5 so that ordinary people could afford to invest