Trade and Commerce 1857-1890

Question 1

What was mercantilism

Answer 1

Trade was strcitly regulated in system of mercantilism where colonies had been obliged to send most of their produce to Britain, buy British manufactured goods + use British ships for their imports/exports

Question 2

How did free trade affect Britain

Answer 2

Britain able to indulge in free trade as the world’s foremost trading union - left free from govt trading restrictions but govt active in supporting free trade agreements around globe (benefitted British dominance)

Question 3

What does the Opium wars tell us about British trade

Answer 3

Shows commitment to free trade since Britain literally went to war to ensure free trade

Question 4

How did the coming of free trade boost imperial trade

Answer 4

Investment grew hugely creating ‘industrial empire’ where colonies supplied foodstuff + raw materials which British industry converted into finished goods for exports + colonies compelled to buy back

Question 5

By late 19th century how much of Britain imports came from its colonies

Answer 5

20% of British imports came from its colonies while empire provided market for 1/3rd of British exports

Question 6

1867 what were the levels of imports + exports from colonies

Answer 6

• 1867 India imported £21m goods made market equal to Britain’s largest foreign customer US
• Exports to Aus totalled £8m, Canada £5.8m, Hong Kong £2.5m, Singapore £2m, NZ £1.6m
  Britain possessed under half world’s industry - colonies had no choice but to import British manufactures

Question 7

What were the value of British imports from India 1854 compared to 1876

Answer 7

Wheat had 0 value in 1854
By 1876 value was £1647000

Question 8

What prevented India from developing their industries

Answer 8

Significant that India bought back the finished (manufactured) products from Britain which prevented them from developing their own industries
By 1914 India was taking 25% of all Lancashire cotton exports

Question 9

Who bore the costs of the Indian army

Answer 9

India served as British ‘barracks of the East’ 1890 whole imperial army totalled 325000 troops + 2/3rd was paid for by Indian taxpayer (British didn’t bear the cost of the bill)

Question 10

How did Indian labour help British

Answer 10

Advantage to Indian base was manpower, helped Britain build railways in Uganda, created rubber plantations in Malaya, grew rice in Burma
Churchill called East Africa ‘America of the Hindu’ showing scale of Indian labour

Question 11

How was the government of India financed

Answer 11

Largely financed via City of London - infrastructure schemes (railways) + proportion of Indian public debt held in city rose from 7% 1858 to 60% 1914 (interest charges going into pockets of British)

Question 12

How might trade not have been beneficial to empire

Answer 12

Certain African + tropical areas of empire yielded little reward from free trade
Large areas outside empire hugely economically important - counter argument to centrality of empire to Britain’s financial gains + large areas of empire did little trade with UK

Question 13

How were infrastructure of railways beneficial economically

Answer 13

Railway imperialism was key to economic development + ensured British control
Railways - provided invisible trade for Britain + spread of railways within empire facilitated commercial enterprise

Question 14

How did railways affect white settler colonies

Answer 14

Railways provided largest single investment in self-governing settler colonies Canada, Aus, SA + NZ
Opened up Canadian prairies, enabled Aus to export wheat/wool + offered SA chance to expand territories/commercial interests

Question 15

How did railways in India prove beneficial for trade

Answer 15

Railways built for strategic purposes in India + linked cotton/jute growing areas of north with mills of Bombay + Calcutta + enabled rice to reach ports for export + vital links between areas of production + sea

Question 16

How were ships beneficial to trade

Answer 16

• From 1850s steamships reduced travel time between Britain + West Africa to less than 3 weeks
• Opening of Suez 1870s stimulated construction of ships used in inland regions - up Niger
• Enabled trade with distant colonies + sailing ships reached highest state of efficiency 1860s sailing routes to China/East

Question 17

How were canals/rivers beneficial to trade

Answer 17

• Rivers straightened/diverted/deepened to facilitate trade + canals built
• India new canals developed on huge scale after 1857
• Internal river systems vital means of transport for trading products

Question 18

What does the Grace contract show

Answer 18

1886 pact between Peru + British bondholders to resolve debts - contract formalised 1890 highlighting how British wealth is not entirely dependent on empire (debt burden needed to be reconstructed in Peru over imperial colonies interests)

Question 19

How was the Cunard Line not massively imperial

Answer 19

By 1877 Cunard Line shipping (based in Liverpool) had 46 vessels - 19 on Atlantic, 12 in Med, 13 Glasgow, N Ireland + Bermuda

Question 20

Why were the role of charted companies beneficial economically

Answer 20

British govt by 1870 saw charted companies as ways of extending British influence/control at no extra cost - they were govt recognised commercial organisations which were granted monopoly rights to specific territory in return for administration

Question 21

Why was the British East India Company established

Answer 21

To gain access to India’s merchandise/markets - free trade/rebellion brought end to EIC but trading companies remained influential in Africa

Question 22

How did attitudes change in 1870 regarding charted companies

Answer 22

Britain’s economic supremacy faced challenges regarding European + American industrialisation + Great depression - concept of charted companies revived as way of extending British trade/control

Question 23

What was the North Borneo Trading company

Answer 23

1881 received charted for purpose of administrating the territory - North Borneo benefitted from coal, iron, copper + development of tobacco, coffee
Represented key strategic site for British in S China sea (midpoint between India + Hong Kong)
Charter set a precedent, followed by others

Question 24

What was the Royal Niger company

Answer 24

1886 charter permitted trade in lands along Niger + permission for expansion northwards+ crucially for company to serve as govt of Niger region

Question 25

When was British East Africa company chartered

Answer 25

1888

Question 26

When was British South Africa Company chartered

Answer 26

1889

Question 27

How did chartered companies lead to formal empires

Answer 27

Activities of companies often led to establishment of formal empire - EAC gained powers of revenue, trade, administration in Buganda 1890 following agreement between Britain + Germany to divide up East Africa into spheres of influence

Question 28

How did British establish control in Nigeria

Answer 28

British govt took over responsibilities of Royal Niger Company + established direct control 1900 of N + 1906 S

Question 29

What was the primary purpose of trading companies

Answer 29

• To implement British claims to area + ensure other European nations were excluded from lucrative trading areas
• Generate profit for shareholders in Britain (led to exploitation of local people)

Question 30

What was the Imperial Federation League

Answer 30

Founded 1884 to promote colonial unity + internal imperial tariff preference - some traction but largely unsuccessful overturning systems of free trade that underpinned British economic dominance

Question 31

Evidence showing individuals benefitted from trade outside empire

Answer 31

William Gibbs firms profits from guano trade - by 1864 richest non-nobleman in England + didn’t make his money from empire but instead Guano business in Peru

Question 32

How was transportation to Australia using empire as a resource

Answer 32

Transportation to Australia ends 1868 as criminal punishment - 17000 people had been transported
Using empire as an entity

Question 33

What was the trend of emigration

Answer 33

16m people emigrated Britain 1815-1914 where 1/4 went to US + rest went to colonies - trend increased during recessions 1901-1910 1.8m Britons left with 50% settling in White Dominions