Unit 4:
Topic 4: Economic Developments:
The Mid-Victorian Boom:
o Britain dominated the world economy in the mid-19 th century
o It is estimated that Britain produced over 40% of the total traded manufactured goods in the
world and approx. 25% of the Worlds trade passed through British ports
o While Britain was acknowledged as the workshop of the world, other countries furnished it with
raw materials and foodstuff for its growing population.
o One of the spin-offs from the Great Exhibition was a rapid increase in export orders, and a
growth in overseas markets
o 1/3 of all British goods were exported to the British Empire;
o Coal was exported to Europe
o Many goods went to the US because its own industries were not sufficiently developed
to cope with the he demands of a rapidly increasing population
o The growth in export trade continued almost unchallenged for the next 20 years
o It was a period of unprecedented demand for British goods abroad.
o In every town and city in Britain, producers and manufacturers were working flat out to
meet the increasing orders
o Britain was justifiably called the “workshop of the world”, importing raw materials,
manufacturing the goods and exporting the finished product around the world
o Britain was at the height of its economic and industrial power
o It’s unparalleled spurt of economic and industrial growth was evident from around the middle of
the century and lasted into the yearly years of the 1870s
o It was accompanied by technological developments in Britains key areas – coal, mining,
iron ,steel , engineering and textile industry – and a rapid increase in production across
the board
o New technology and an increase in scientific knowledge boosted British agriculture during this
period, and it was referred to as the period of High Farming
o British manufacturing goods were exported around the globe in British ships
o Britains industrial and economic supremacy was unchallenged by any other power
o Governments in Britain adhered to the laissez faire principle of limited interference in the
workings of the market economy
o Taxation was low and Free Trade was encouraged
o Theses were years of peace and prosperity and many, not all, Victorians shared in the
extraordinary wealth created by the industrial boom
o Beneath the material success lay the Victorian virtue of ‘self-help’ and the belief that good
honest hard work brought rewards
o The middle classes and the skilled working classes, enjoyed the rewards of hard work with higher
incomes and increased consumption
o There was better education and public health
o The standard of living rose, but there was still masses of poverty at the bottom of the social
pyramid
o After 1873 there were signs that, although the economy was still growing, it was at a slower
pace
o Imports were increasing against exports
o Britain was beginning to face competition from newly industrialised nations, such as
Germany and the USA
o Britain needed to adapt to meet the challenge
, The ‘golden age’ of agriculture:
High Farming:
o When the Corn Laws were repealed in 1846, there was a fear in the farming community that the
price of home-grown wheat would collapse against competition from foreign imports, and that
farmers would be ruined
o This did not occur , and by 1853 Britain had entered the ‘golden age’ of farmings, during which
harvests produced successive high yields, prices were steady, farmers’ incomes increased and
there were scientific and technological innovations and improvements being carried out
o ‘High Farming’ has been used to describe the farming practices adopted by many farmers during
these years
o James Caird, a farmer from Wigtownshire in the south west of Scotland, is credited for
introducing the term.
o High farming methods increased productivity.
o Many farmers moved from purely arable to mixed farming
o This meant they hedged their bets by growing wheat and root crops as well as stocking
cattle, sheep and pigs
o In this way they would be cushioned against a sudden downturn in price of wither crops
or livestock
o The surplus crops fed the animals and the animals’ manure fed the crops
There was increasing interest in animal husbandry
o Some farmers specialised in specific breeds of cattle such as Herefords or Aberdeen
Angus, which produced excellent beef
o Much of the profits in farming at this time came from livestock rearing
Agricultural progress:
o With an increase in scientific knowledge artificial fertilisers, were marketed and guano was
imported in large quantities from Peru
o The industry was worth £8 million a year by 1870
o There was also a growing market in animal feed stuffs made from linseed and cotton seed
o By 1870 this was worth £5 million a year
o These 2 developments ease the pressure on farmers to pursue mixed farming and made it easier
for them to specialised in either arable or livestock
o The problems of poor drainage were met by the manufacture of clay pipers
o The government introduced loan schemes for farmers to invest in drainage pipe systems
o Improved drainage together with use of fertilisers made substantial improvements to
crop yields
o As there was a ready supply of cheap labour – agricultural labourers were among the most
poorly paid – the introduction of farm machinery was slow
o However, there was widespread use of the horse-drawn reaper
There were better ploughs, seed drills and steam-driven threshing machines to
improve efficiency in crop production
o The steady growth of the population, the rising prosperity and a general rise in wages and prices
increased the demand for food and other produce of the land
o The demand was met by the agricultural improvements
o The development of the railways was beneficial to farming, as food could be transported
quickly to the growing towns, where there was a ready and ever-increasing market for
fresh produce
