Chapter 19 Part 2

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Chapter 19Part 2

• Population Explosion
• Proto-Industrialism
• Mercantilism

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Before 1700 Population was limited due to

• Famine
• Disease
• Warfare
• Europe did not reach pre Black Death levels until
  the mid-16th Century

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Causes of the Population Explosion

• The Agricultural Revolution more food available
  for larger population
• New Foods (like the potato) became a staple crop
  for the poor in many areas (like Ireland)
• Better roads and canals improved food
  transportation
• Better diets (more food and a variety) stronger
  immune systems

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Causes of the Population Explosion (continued)

• After 1720 Bubonic Plague disappeared
• Wars in 18th Century were less destructive on
  civilian populations
• Improved sanitation in towns and cities
• BUTadvances in medicine had NO impact at this
  time

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Since 1350

• 1350-1650huge growth
• 1650-1750plateau
• 1750 on dramatic increase
• Europe in 1700120 million
• 1800190 million

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Proto-Industrialism(aka the Cottage Industry or
Putting-Out System)

• Rural industry was an important part of economic
  growth in the 18th century
• Merchant-capitalists in cities would rater deal
  with cheap labor in the countryside than pay the
  higher fees to guild members
• Rural manufacturing with hand tools began to
  seriously challenge the urban craft industry

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The Cottage Industry

• Merchant-Capitalist would provide the raw
  material to a rural family
• The Family would produce a finished product and
  give it to the merchant-capitalist for payment
• Merchants would then sell the product for profit

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Wool Cloth

• Was the single most important product

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The Cottage industry was a family activity

• 4-5 spinners were needed to keep a weaver (the
  head of the household) busy full time
• A constant quest for more thread and more
  spinners
• Spinsters (widows or single women) who where
  hired by families

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Problems with the cottage industries

• Disputes between family producers and
  merchant-capitalists (weights, quality)
• Rural labor disorganized and difficult for the
  merchant-capitalist to control (Holy Monday)
• Merchant-capitalists were constantly looking for
  more efficient ways of production leading
  eventually to the growth of factories in towns
  and cities

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Results of the Cottage Industry

• Thousands of rural poor were able to supplement
  their incomes
• The unregulated nature of production in the
  countryside led to experimentation and diversity
  of products
• Textiles (most important), knives, forks,
  utensils, buttons, gloves, clocks, musical
  instruments, etc.

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The Cottage Industry

• First in England
• Later to France and Germany
• In 1500 ½ of Englands textiles were produced in
  the countryside
• By 1700 the percentage was much higher

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Proto-industrialism Technology (Before the steam
engine)

• 1733 John Kay invented the flying shuttle
  the weaver only needed one hand to throw the
  shuttle back and forth between threads
• 1764 James Hargreaves invented the Spinning
  Jenny mechanized the spinning wheel

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More Proto-industrial technology

• 1769 Richard Arkwright invented the Water Frame
  improved thread spinning
• 1780s Arkwright used steam engines to power
  loomsthe beginning of the Industrial
  Revolutionsome think
• 1779 Sam Crompton invented the Spinning Mule
  combined features of the spinning Jenny and Water
  Frame

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Mercantilismand the Atlantic economy

• 18th Century European maritime expansion
• World trade became an integral part of European
  economy
• Sugar the single most important commodity
  produced in the Atlantic trade
• Also tobacco, cotton, indigo and slave trade

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The Atlantic Economy

• England, France and the Netherlands benefitted
  the most from the Atlantic trade
• But Spain and Portugal were able to revitalize
  their empires and economies

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Mercantilism

• Goal Economic self-sufficiency of a nation
• A favorable balance of trade (more exports than
  imports) through Tariffs other navigation
  acts
• Bullionism build up large reserves of gold and
  silver and prevent it from leaving the country

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Mercantilism

• Colonies for raw materials and markets
• State-granted monopolies to large companies (East
  India Companies)
• Encourage the growth of domestic industries

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Great Britain

• 18th Century the worlds leading maritime power
• 1694 The Bank of England provided capital for
  economic development
• 1707 The Act of Union unified England and
  Scotland (trade benefits for Scots)

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English Mercantilism

• The Governments economic regulations often
  served the private interest of individuals and
  groups as well as the needs of the state (like
  the Corn Laws)

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Mercantilism in FranceOr any authoritarian state

• Economic policies primarily benefitted the state
  rather than businessmen and workers

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The English Navigation Acts

• Efforts by Parliament to increase military power
  and private wealth
• The First 1651 (Cromwell) to reduce Dutch
  domination of the Atlantic Trade
• Required that most goods coming into England be
  brought on British ships with ¾ British crews
• Gave British merchants and ship owners a virtual
  monopoly on trade with the colonies

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The English Navigation Acts

• After the Restoration (Charles II)
• Second 1660
• Third 1663
• Reiterated the first and required colonies to
  ship certain goods exclusively to England (sugar,
  tobacco, cotton) and required the colonies to buy
  most of their European goods from Brits

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Triangular Trade

• Involved England, American colonies, Caribbean,
  Africa
• Different routes
• Some illegal (both American and English violated
  navigation acts and made fortunes)

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The Dutch

• The Golden Age first ½ of the 17th century was
  the dominant maritime power
• The middle-class Burghers dominated politics and
  the economy
• The government was de-centralized and did not
  interfere with the economy
• Much religious toleration

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The Dutch

• 1652-1674 3 Anglo-Dutch Wars
• Damaged Dutch shipping and Commerce
• 1664 New Amsterdam was seized by the English and
  renamed New York
• By the late 17th Century the Dutch were falling
  behind the English in shipping, trade colonies

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But

• The Dutch and the English allied to stop the
  expansion of Louis XIV in the late 17th century
• The Dutch shifted attention to banking rather
  than trade and managed to survive

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The Dutch

• The first to perfect the use of paper money
• The stock market in Amsterdam was the most
  important in Europe
• Created a central bank

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The Slave Trade

• The growth of Atlantic trade was largely due to
  the use of slave labor
• 10 million Africans were transported to the New
  World in the 17th and 18th centuries
• ½ of the above were transported on British ships,
  ¼ on French ships and the rest Dutch,
  Portuguese, Danish, American ships

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The Slave Trade

• British and French governments gave chartered
  companies monopolies over slave trade in late
  17th and early 18th centuries (ie 1672 the Royal
  African Co.)
• Forts (factories) were set up on the West African
  coast to oversee and protect the slave trade

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The Slave Trade

• By the 1730s independent slave traders broke the
  monopolies
• Most slaves were captured by rival African tribes
  and traded to Europeans for cloth, alcohol,
  weapons
• Many captured in the African interior died on
  forced marches to the coast

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The Slave Trade

• Between 20-30 of all slaves brought to the New
  World along the Middle Passage died on the way
• Most taken to Brazil or the West Indies to work
  on sugar plantations
• 400,000 taken to British North American colonies

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The slave trade

• Dwindled by the 1780s
• Subsequent growth in slave population was due to
  natural population growth

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The Bubbles

• Both Britain and France faced massive national
  debts due to the wars of the 17th and 18th
  centuries
• England the South Sea Bubble
• France the Mississippi Bubble

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1720 The South Sea Bubble

• 1719 The British government gave the South Sea
  Co. rights to take over the British debt
• The South Sea Co. had had a monopoly over the
  slave trade with Latin America a few years
  earlier and seemed to be responsible and
  successful
• The company was expected to make a profit on the
  interest collected from the government on the debt

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The South Sea Bubble

• When the company did not realize profits fast
  enough for investors, the company converted the
  debt into stock shares
• The ensuing speculator frenzy drove prices way up
• Investors believed prices would continue upward

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The South Sea Bubble

• In 1720 the Bubble Burst!
• Causing the first large-scale financial crash
• It took years to restore confidence in the
  British governments ability to repay its debts

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The Mississippi Bubble 1720

• The Mississippi Co. had been granted a monopoly
  by the French government on trade with French
  Louisiana in North America
• In 1719 the company took over the French national
  debt in exchange for company shares of stock

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The Mississippi Bubble

• Initially, huge increases in stock prices
• Then dramatic collapse
• The Mississippi Company was ruined
• The enormous national debt in France continued to
  crush the taxpayer and was a key factor in the
  French Revolution several decades later