History - British Empire; Chapter 3 - Trade and Commerce

Why could Britain accept the idea of Free Trade?

-As the foremost trading nation and as a global power it could use its influence to secure it's dogged authority.

Role of Chartered Companies

-Chartered companies had a major role in Government in the 1850s -But soon thsi changed and open capitalism was encouraged -Long depression challenged british authority -New companies such as the North Borneo trading company recieved charters in the late 1870's and early 1880's. -These included the Royal Niger Company, and British South Africa Company -Their sole goal was to makeprofit at home -Imperial federation league founded in 1884 to promote colonial unity and internal imperial preference - but could not overthrow free trade

Why was trading with the empire easier?

-Colonies had a sense of duty -Common currency -Common language -Common system of Commercial law

The Importance of Mining

-Key precious metals - Nigerian Tin, Gold on the Gold Coast, Diamonds in Sierra Leone -In 1886 Gold was discovered on the Witwatersrand -This encouraged a gold rush of 30,000 labourers -Diamonds also discovered in the Kimberley area -Gold was also discovered in Australia in 1851 and in New Zealand in the 1860's.

The Importance of Industry

-Many colonies had a very small market so industry just did not develop -Even in larger places industry just could not compete with british industry and collapsed -Independent economic development often crushed although british capital and development encouraged global growth.

The Importance of Agriculture

-Most nations in the empire were agricultural with large swathes of land for foodstuffs and raw materials; at a CHEAP PRICE -There was small scale production but indigenous farmers were generally obliged to sell at whatever price they were offered -Indian labourers were known as coolies and transported to Carribean Colonies -Key Products - Sugar, Sisal, Rubber,Palm Oil, Tea and Coffee -Low wages, hard and unpleasant work

How did railways develop?

-Railway imperialism was a key development - with investment pressuring dependence -Canada, for example, was forced to accept British policies on defence for London Capital Guarantees -Railways provided the largest single investment of the period in self-governing settler colonies -Railways also encroached on indigenous lands! -Railways often provided the vital link between interior and coastal areas. -Railways were themselves a trading commodity

Which developments helped to grow trade?

-Railways -Steamships -Underwater cables -Telegraph lines

What was the role of canals and rivers?

-Rivers and canals were an important means of transport for trading products and were often the focus of explorer's quests -Canals were often also built to avoid hazardous stretches of water -New canals built in India in 1857 and around Canadian lakes in 1867.

How did ships develop?

-Steamships reached their highest efficiency in the 1860's - with clippers sailing all over the world. -Very well suited to high profit low-volume goods. -These ships did have a short life expectancy of only 20 years -Steam ships used to carry heavy and bulky goods. -Compound steam engines allowed for more efficient transport of goods economically -From the 1850's times to West Africa cut by 3x and bulkier goods could be carried -Development of triple expansion steam engines and suez canal also cut travel times.

What was the result of free trade for the colonies?

-The development of an industrial empire in which 20% of imports came from colonies while 33% of exports went to those colonies.

What did Adam Smith argue in Wealth of Nations?

-Wealth was indifenitely expandable and freedom from commerical restrcitions was the only way to expand prosperity

What was the system of trade in the late 18th and early 19th century?

Meracntilism - Colonies had been oblidged to send most of their produce to Britain, and to buy British ships for import and buy manfactured goods.