EFFECTS OF COAL-BASED AIR POLLUTION ON MORTALITY RATES: New evidence from nineteenth century Britain

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Samuel Griffiths (1873) The Black Country in the 1870s. In Griffiths’ Guide to the iron trade of Great Britain.

Industrialised cities in mid-nineteenth century Britain probably suffered from similar levels of air pollution as urban centres in China and India do today. What’s more, the damage to health caused by the burning of coal was very high, reducing life expectancy by more than 5% in the most polluted cities like Manchester, Sheffield and Birmingham. It was also responsible for a significant proportion of the higher mortality rates in British cities compared with rural parts of the country.

 These are among the findings of new research by Brian Beach (College of William & Mary) and Walker Hanlon (NYU Stern School of Business), which is published in the Economic Journal. Their study shows the potential value of history for providing insights into the long-run consequences of air pollution.

From Beijing to Delhi and Mexico City to Jakarta, cities across the world struggle with high levels of air pollution. To what extent does severe air pollution affect health and broader economic development for these cities? While future academics will almost surely debate this question, assessing the long-run consequences of air pollution for modern cities will not be possible for decades.

But severe air pollution is not a new phenomenon; Britain’s industrial cities of the nineteenth century, for example, also faced very high levels of air pollution. Because of this, researchers argue that history has the potential to provide valuable insights into the long-run consequences of air pollution.

One challenge in studying historical air pollution is that direct pollution measures are largely unavailable before the mid-twentieth century. This study shows how historical pollution levels in England and Wales can be inferred by combining data on the industrial composition of employment in local areas in 1851 with information on the amount of coal used per worker in each industry.

This makes it possible to estimate the amount of coal used in over 581 districts covering all of England and Wales. Because coal was by far the most important pollutant in Britain in the nineteenth century (as well as much of the twentieth century), this provides a way of approximating local industrial pollution emission levels.

The results are consistent with what historical sources suggest: the researchers find high levels of coal use in a broad swath of towns stretching from Lancashire and the West Riding down into Staffordshire, as well as in the areas around Newcastle, Cardiff and Birmingham.

By comparing measures of local coal-based pollution to mortality data, the study shows that air pollution was a major contributor to mortality in Britain in the mid-nineteenth century. In the most polluted locations – places like Manchester, Sheffield and Birmingham – the results show that air pollution resulting from industrial coal use reduced life expectancy by more than 5%.

One potential concern is that locations with more industrial coal use could have had higher mortality rates for other reasons. For example, people living in these industrial areas could have been poorer, infectious disease may have been more common or jobs may have been more dangerous.

The researchers deal with this concern by looking at how coal use in some parts of the country affected mortality in other areas that were, given the predominant wind direction, typically downwind. They show that locations which were just downwind of major coal-using areas had higher mortality rates than otherwise similar locations which were just upwind of these areas.

These results help to explain why cities in the nineteenth century were much less healthy than more rural areas – the so-called urban mortality penalty. Most existing work argues that the high mortality rates observed in British cities in the nineteenth century were due to the impact of infectious diseases, bad water and unclean food.

The new results show that in fact about one third of the higher mortality rate in cities in the nineteenth century was due to exposure to high levels of air pollution due to the burning of coal by industry.

In addition to assessing the effects of coal use on mortality, the researchers use these effects to back out very rough estimates of historical particulate pollution levels. Their estimates indicate that by the mid-nineteenth century, industrialised cities in Britain were probably as polluted as industrial cities in places like China and India are today.

These findings shed new light on the impact of air pollution in nineteenth century Britain and lay the groundwork for further research analysing the long-run effects of air pollution in cities.

 

To contact the authors:  Brian Beach (bbbeach@wm.edu); Walker Hanlon (whanlon@stern.nyu.edu)

Managing the Economy, Managing the People: narratives of economic life in Britain from Beveridge to Brexit

by Jim Tomlinson (University of Glasgow)

 

book‘It’s the economy stupid’, like most clichés, both reveals and conceals important truths. The slogan suggests a hugely important truth about the post-1945 politics of the advanced democracies such as Britain: that economic  issues have been crucial to government strategies and political arguments. What the cliché conceals is the need to examine what is understood by ‘the economy’, a term which has no fixed meaning, and has been constantly re-worked over the years. Starting from those two points, this book provides a distinctive new account of British economic life since the 1940s, focussing upon how successive governments, in seeking to manage the economy, have sought simultaneously to ‘manage the people’: to try and manage popular understanding of economic issues.

The first half the book analyses the development of the major narratives from the 1940s onwards. This  covers the notion of ‘austerity’ and its particular meaning in the 1940s; the rise of a narrative of ‘economic decline’ from the late 1950s, and the subsequent attempts to ‘modernize’ the economy; the attempts to ‘roll back the state’ from the 1970s; the impact of ideas of ‘globalization’ in the 1900s; and, finally, the way the crisis of 2008/9 onwards was constructed as a problem of ‘debts and deficits’. The second part focuses in on four key issues in attempts to ‘manage the people’: productivity, the balance of payments, inflation and unemployment. It shows how in each case  governments sought to get the populace to understand these issues in a particular light, and shaped strategies to that end.

One conclusion of the book is the grounding of most representations of key economic problems of the post-war period in Britain as an industrial economy, and how de-industrialization undermines this representation.  Unemployment, from its origins in the late-Victorian period, was largely about the malfunctioning of  industrial (and male) labour markets. De-industrialization, accompanied by the proliferation of precarious work, including much classified as ‘self-employment’, radically challenges our understanding of  this problem, however much it remains the case that for the great bulk of the population selling their labour is key to their economic prosperity.

The concern with productivity was likewise grounded in the industrial sector. But outside the marketed services, in non-marketed provision like education, health and care, the problems of conceptualising, let alone measuring, productivity are immense. In a world where personal services of various kinds are becoming ever more important, traditional notions of productivity need a radical re-think.

Less obviously, the notion of a national rate of inflation, such as the Cost of Living Index and later the RPI, was grounded in attempts to measure the real wages of the industrial working class. With the value of housing as key underpinning for consumption, and the ‘financialization’ of the economy, this traditional notion of inflation, measuring the cost of a basket of consumables against nominal wages, has been undermined. Asset, especially housing, prices matter much more to many wage earners, whilst the value of financial assets is also important to increasing numbers of people as the population ages.

Finally, the decline of concern with the balance of payments is linked to the rise in the relative importance of financial flows, making  the manufacturing balance or the current account less pertinent. For many years now Britain’s external payments have relied on the rates of return on overseas assets, exceeding those on domestic assets held by foreigners. We are a very long way indeed from 1940s stories of ‘England’s bread hangs by Lancashire’s thread’.

De-industrialization has not only undercut the coherence and relevance of the four standard economic policy problems of the post-war years, but has also destroyed the primary audience that most post-war economic propaganda was aimed at: the industrial working class. While other audiences were not entirely neglected, it was the worker (usually the male worker), who was the prime target of the narratives and whose understandings and behaviour were seen as the key to the projected solutions.

A recurrent anxiety of this propaganda was the receptivity of those workers to its messages. This anxiety helps to explain much of the ‘simplified’ language of this propaganda, as well as its patterns of distribution. More fundamentally, this anxiety rested upon uncertainties about what kind of arguments would a working-class audience find congenial; there was perennial debate about the efficacy of appeals to individual as opposed to the ‘national’ interest. Above all, there was a moral message of distributive justice which infused much of the propaganda, ultimately grounded in the belief that working class culture had within it ingrained notions of  ‘fairness’ that had to be appealed to.

While ethical appeals continued to inform economic propaganda into the twenty-first century, the fragmentation of the old audience accelerated. In addition, given the upward lurch in inequality in the 1980s, and the following period of continuing growth of incomes right at the top of the distribution, appeals to ‘fairness’ have become much more difficult to make credible. Strikingly, concerns about inequality emerged across the political spectrum after the 2007/8 financial crisis, at the same time as the narrative of debts, deficits and austerity had driven post-crisis policies that increased  inequality. Widespread talk of ‘reducing inequality’, whilst having obvious political appeal, especially after Brexit, would seem to be largely rhetorical.

 

Managing the Economy, Managing the People: narratives of economic life in Britain from Beveridge to Brexit is edited by Oxford University Press, 2017,  ISBN 978-019-878609-2

To contact the author: Jim.Tomlinson@Glasgow.ac.uk

EHS 2018 special: Upstairs, downstairs? Experiences of female servants in England, 1550-1650

Charmian Mansell (University of Exeter)

 

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Servants in London, 1600. Available at <https://www.pinterest.co.uk/pin/413979390718750087/?lp=true&gt;

Despite women’s increased participation in the workforce, women in 2014 still carried out on average 60% more unpaid work (including cooking, cleaning and childcare) than men. The gender division of labour attracts considerable attention today and the domestic nature of women’s work is assumed to have a longstanding history. Cleaning, cooking, washing clothes and childcare are thought to have made up the bulk of women’s paid and unpaid work.

 

This conception of women’s work is tied to ideas of female economic and social vulnerability and oppression in the past. The female domestic servant depicted in televised historical dramas like Downton Abbey and Upstairs, Downstairs corresponds with this view of women’s work. We picture her moving silently around the household of her upper-class employers, lighting fires, making beds and doing laundry, and confined to a life below stairs.

My research shifts the focus to sixteenth and seventeenth century service and to servant-employing households of various levels of wealth. It shows a very different pattern of female service. Around 60% of 15-24 year olds were employed in rural and urban, rich and poor households across the country in exchange for wages, bed and board.

Domestic tasks were a more prominent feature of service in the households of the wealthy, where specific roles such as dairymaid, cook and chambermaid were more common. But in smaller households, there was less requirement for such specialisation or for this type of work.

The workloads of most English women in service between 1550 and 1650 were not made up of what we might classify as domestic chores. Witness statements from early modern church courts detail female servants reaping barley, brewing beer or ale, picking apples, fetching wood and running countless errands. One servant was even involved in the sale of pigeons in Basingstoke in 1631.

As evidence of these work activities suggest, service was an experience that did not confine women to their employer’s homes. Female servants spent only around 50% of their time inside the home. Their working and social lives took them into the streets, fields, marketplaces and a variety of other spaces.

These women were not simply employees – they were also important members of the communities in which they lived. In addition to the work tasks they performed outside of their employers’ homes, they visited their neighbours and friends, attended parish events such as markets and fairs and were embedded in community affairs.

While some women faced vulnerability and subordination within their employer’s households, other servants enjoyed the support and friendship of their neighbours. This was by no means a golden age for women in service; but my research demonstrates the need to assess women’s work in the past on its own terms.

EHS 2018 special: London’s mortality decline – lessons for modern water policy

Werner Troeksen (University of Pittsburgh)
Nicola Tynan (Dickinson College)
Yuanxiaoyue (Artemis) Yang (Harvard T.H. Chan School of Public Health)

 

The United Nations Sustainable Development Goals aim to ensure access to water and sanitation for all. This means not just treating water but supplying it reliably. Lives are at stake because epidemiological research shows that a reliable, constant supply of water reduces water-borne illness.

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Available at <https://heartheboatsing.com/2015/08/13/death-on-the-water/&gt;

Nineteenth century London faced the same challenge. Not until 1886 did more than half of London homes have water supplied 24 hours a day, 7 days a week. The move to a constant water supply reduced mortality. For every 5% increase in the number of households with a constant supply, deaths from water-borne illnesses fell 3%.

During Victoria’s reign, eight water companies supplied the metropolis with water: 50% from the river Thames, 25% from the river Lea and 25% from wells and springs. By the 1860s, the companies filtered all surface water and Bazalgette’s intercepting sewer was under construction. Still, more than 80% of people received water intermittently, storing it in cisterns often located outside the house, uncovered or beside the toilet.

Rapid population and housing growth required the expansion of the water network and companies found it easier to introduce constant service in new neighbourhoods. Retrofitting older neighbourhoods proved challenging and risked a substantial waste of scarce water. The Metropolis Water Act of 1871 finally gave water companies the power to require waste-limiting fixtures. After 1871, new housing estates received a constant supply of water immediately, while old neighbourhoods transitioned slowly.

As constant water supply reached more people, mortality from diarrhoea, dysentery, typhoid and cholera combined fell. With 24-hour supply, water was regularly available for everyone without risk of contamination. Unsurprisingly, poorer, crowded districts had higher mortality from water-borne diseases.

Even though treated, piped water was available to all by the mid-nineteenth century, everyone benefitted from the move to constant service. By the time the Metropolitan Water Board acquired London’s water infrastructure, 95% of houses in the city received their water directly from the mains.

According to Sergio Campus, water and sanitation head at the Inter-American Development Bank, the current challenge in many places is providing a sustainable and constant supply of water. In line with this, the World Bank’s new Water Supply, Sanitation, and Hygiene (WASH) poverty diagnostic has added frequency of delivery as a measure of water quality, in addition to access, water source and treatment.

Regularity of supply varies substantially across locations. London’s experience during the late Victorian years suggest that increased frequency of water supply has the potential to deliver further reductions in mortality in developing countries beyond the initial gains from improved water sources and treatment.

Are businessmen from Mars and businesswomen from Venus? An analysis of female business success and failure in Victorian and Edwardian England

by Jennifer Aston (Oxford University)  and Paulo di Martino (University of Birmingham)

The full paper was published on the Economic History Review, accessible here

 

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Fashion in Edwardian England

Do women and men trade in different ways? If so, why? And are men more or less successful than women? These are very important questions not just, or not only, for the academic debate, but also for the policy implications that might emerge, especially in countries such as the UK where, rightly or wrongly, we believe in personal entrepreneurship as one of the main antidotes to unemployment and to the crisis of big business.

In economic history, it has traditionally been argued that women and men traded in similar ways up to the industrial revolution but, since then, women have ben progressively relegated to a “separate sphere” allowed, at most, some engagement with naturally “female” occupations such as textiles or food provision. Although more recent literature has strongly undermined this view, a lot of ground has still to be covered, especially about the period post 1850s.

We approach this debate by starting with a simple question about business “success” across gender: did women happen to fail more likely than men? Thanks to the reconstruction of original data on personal bankruptcy derived from contemporary official publications by the Board of Trade, this research suggests that this was not the case. In fact, depending on how prudently data on the number of female entrepreneurs are looked at, women appear more successful in, at least, keeping their businesses alive.

This finding, however, only paved the way for more questions. In particular, had the narrative of women only dealing with traditional and safe industries and operating in semi-informal businesses been true, what we observe via the lens of official statistics would be just a distorted view. This researched focussed on other primary sources: the reports of about 100 women whose businesses failed around the turn of the century. The findings support the initial hypothesis: although smaller than male counterparts (hence, in fact, riskier), female businesses were not hidden away from the public sphere, the official trading places, or the rules of the formal credit market. So, boarding house keeper Eleanor Bosito and the hotelier Esther Brandon were declared bankrupt and subject to formal proceedings despite having very few creditors who all lived within five miles from the businesses of the two women.  with unsecured debts of about £160 faced bankruptcy as a result of the petition filed by Jane Davis, a widow who lived less than half a mile from Agnes’s home and had lent her the sum of £5. This was the same destiny faced by Elizabeth Goodchild a businesswoman who, contrary to the other cases, operated on a large scale with suppliers and clients from all around Britain and Europe. This evidence reveals that, first of all, small scale trade was thus not necessarily the rule for women and, even when it was the case, it did not coincide with informality or sheltering from the “rules of the game”.

Businesswomen then did not come from, nor traded on, a different planet and certainly did not need the patronising protection of a male-dominated institutional environment. Instead the legal system forged ad hoc rules for married woman, via specific provisions in Bankruptcy Laws which lifted them from any responsibility. These level of defence, similar only to the one available to lunatics and children, proved ineffective. Or, in fact, the perfect background for frauds: in 1899 a spinster who was due to be declared bankrupt got married before the actual beginning of the procedure, thus avoiding any legal consequence (and, hopefully, having found love too).

In conclusion, this research indicates that Victorian and Edwardian businesswomen were perfectly able to trade in a fashion similar to the one of their male counterpart and, if anything, they were more successful. This leads to a basic and probably intuitive policy implication: if we want more women to successfully engage in business, all we have to do is to remove the economic, social, and cultural barriers that limit their access to opportunities.

Engineering the industrial revolution (1770-1850)

by Gillian Cookson (University of Leeds)

The Age of Machinery: Engineering the Industrial Revolution, 1770-1850, is published in February by Boydell Press for the Economic History Society’s series ‘People, Markets, Goods’.

SAVE 25% when you order direct from the publisher. Discount applies to print and eBook editions. Click the link, add to basket and enter offer code BB500 in the box at the checkout. Alternatively call Boydell’s distributor, Wiley, on 01243 843 291 and quote the same code. Offer ends on the 19th of March. Any queries please email marketing@boydell.co.uk

9781783272761_4Early machine-makers have always seemed tantalisingly out of reach. This was a localised, workshop-based trade whose products, methods, markets, skill-sets and industrial structure remained ill-defined. Yet out of it, somehow, was created the machinery – especially textile machines and steam engines – fundamental to industrial change in the eighteenth century. There are questions of great significance still unanswered: How could a high-tech mechanical engineering industry emerged from the rudimentary resources of a few localities in northern England? What can be known of the backgrounds and careers of these pioneering mechanical engineers? How did they develop skills, knowledge and system to achieve their ends?

As a research topic this was clearly a winner. But what is the historian to do when faced with such a dearth of substantial sources? Here is the explanation of why the subject has not hitherto been addressed. Evidence of early engineering was seriously lacking, business records almost entirely absent. It turned out, though, that the industry was hiding in plain sight. We’d been looking in the wrong places.

An early breakthrough came in the Hattersley of Keighley papers. Enough of Richard Hattersley’s early accounts and day books have survived, the first from 1793, to demonstrate a thriving pre-factory industry with Hattersley at its hub. He engaged a wider community in specialist component manufacture, using sub-contracting and various other flexible working practices as circumstances demanded. Hattersley’s company did not itself build machinery at that time, but he fed those who did with precision components, vital in making workable machines. The earliest production systems rested on networking, and can be most neatly described as a dispersed factory[1].

It wasn’t that archives had gone missing (though one or two are known to have been lost); but that businesses were so small scale that by and large they never generated any great weight of documentation. It was community-based sources – directories, muster rolls, parish registers, rate books, the West Riding deeds registry, and a painstaking assemblage of all kinds of stray references – that came to the rescue. While this may not exactly be a novel approach to industrial history, it turned out to be the only realistic way into exploring these small, workshop-based ventures in close-knit communities. Remarkably, too, it shone a light on aspects of the industry which business records alone could not have achieved. Community sources bring forward more than an account of business itself, for they set the actors upon their stage, placing engineers within their own environment. In particular, parish register searches, intended as no more than a confirmation of identities and movements, ultimately exposed remarkable connections. As short biographies were constructed, intermarriages and relationships were revealed which seem to explain career changes and migration (often from south to west Yorkshire, or Scotland to Lancashire) which otherwise had seemed random. So this context, which proved so influential, was not confined to engineering itself, but embraced surrounding cultures that were social and familial as much as industrial and technical. Through this information, we can infer some of the motives and concerns which impacted upon business decision-making.

All this, then, is central to The Age of Machinery. For a fully rounded account, other contexts needed unpacking: Which were the seminal machines, in terms of using new materials and parts that demanded different kinds of skills? Where did technological concepts originate, and how did technology move around? Why did engineering lag a generation behind its customer industry, textiles, in moving into factories? How did bans on machinery exportation and artisan emigration impact upon textile engineering, and why were they abandoned? And in an environment generally very welcoming of innovation, how to explain Luddism?

To contact the author: g.cookson@leeds.ac.uk

REFERENCES:

[1] See Gillian Cookson (1997) ‘Family Firms and Business Networks: Textile Engineering in Yorkshire, 1780–1830’, Business History, 39:1, 1-20

The Public Works Loan Board and the growth of the state in nineteenth century England

by Ian Webster

The Public Works Loan Board was formed in 1817, when the government was faced with a stagnant economy and rising unemployment after the Napoleonic wars. It was established to lend money to finance public works like road, bridge and canal building. Later in the nineteenth century, the PWLB became a major lender to local government to finance the building of workhouses, schools, sewers and water supply facilities. The PWLB still exists in the twenty first century, and is the major provider of loans to local government.

During the nineteenth century, the PWLB survived two attempts by chancellors of the exchequer to abolish it. Sometimes its decisions were overruled by Parliament which directed the PWLB to make loans which were unlikely to be repaid. The Treasury preferred to see the PWLB as a high-cost ‘last resort’ lender when the private sector wouldn’t lend. But the prevailing view of the PWLB was as a low-cost lender to reduce the cost of national public health and education policies to local ratepayers.

These debates continue today. A recent chancellor of the exchequer sought to increase the PWLB’s interest rates closer to market rates, in order to encourage more private sector lending. He also proposed the abolition of the PWLB as a body of commissioners. There is still a debate about the merits of government borrowing to improve public infrastructure.

PWLB profits and losses 1817-76
Sums lent Profits(losses)
£M £M %
Lending decisions made independently of Parliament 37.9 3.4 9%
Lending decisions made by Parliament 4.2 (2.3) (55%)
Totals 42.1 1.1 3%

 

The research reached three main conclusions. First, 90 per cent of the PWLB’s lending was profitable, in spite of the fact that most loans were made at below market rates of interest. The critical factor is that lending decisions were made independently and with a prime concern about the security of the loan. The remaining 10 per cent of loans were made at the direction of Parliament. In these cases, social or economic reasons overcame the PWLB’s concern about repayment, and large losses resulted. Second, seeing the PWLB as a low-cost loan provider was a victory for local interests and national spending departments, over the Treasury desire to minimise the national debt. Third, the story of the PWLB highlights five key decisions between 1859 and 1876 that contributed to the substantial growth in government activities in the late nineteenth century. Without the PWLB’s cheap loans, it would have taken longer for elementary education and constant clean water supplies to become universal services.

To contact the author: ian.webster1954@gmail.com

Patterns of rural infant mortality

By Paul Atkinson (University of Liverpool) – research conducted at Lancaster University thanks to ERC funding.

This work looked at the variation in infant mortality across time and place in country districts of England and Wales between 1851 and 1911. It used statistical methods to find patterns in the data from nearly 90% of rural places to show that, far from being one undifferentiated whole, the countryside was divided into zones with their own infant mortality trends. Broadly, infant mortality in the 1850s was worst in an eastern zone of England, but improved fastest here; across a large zone of south and central England infant mortality was somewhat lower than in the first zone in the 1850s (especially in the far south), but dropped somewhat more slowly; while in northern and western England, and in Wales, infant mortality began at lower levels than the rest of the country but stagnated or even increased, above all in the remotest districts.

 

How infant mortality changed in seven clusters of Registration Districts: for their locations, see map. The eastern zone is made up of Fenland and Mercia; Wessex, Severn and Trent form the south-central one and Health and Moor and Upland the final zone.

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The obvious question is what made these patterns? Mainly different factors from the ones operating in towns, where the combination of crowding and poor sanitation made diarrhoeal disease the major killer, and where falling fertility was associated with decreasing infant mortality. This research identified statistically three other factors associated with infant mortality across time.

First, maternal health – plainly a factor in towns as well, but partly masked there by stronger influences. This work confirms – using a much larger dataset – Millward and Bell’s finding that the mortality of females from tuberculosis at reproductive ages, a good indicator of their general health, predicted infant mortality, explaining about a quarter of the variation in it. So, what makes mothers sick makes babies sick: probably poor nutrition above all, though we could not test that directly.

Second, maternal education, again relevant in towns too, but obscured there. Horrell, Oxley and Humphries have shown how a disadvantaged status within the household for women could produce excess female mortality: the research extends this argument to their babies. Literate women had higher status and more access to resources including food. What makes mothers vulnerable – in our study, their illiteracy – makes babies vulnerable. Female literacy predicted about a sixth of the variation in infant mortality.

The third factor linked with rising infant mortality in this period was remoteness, measured as the distance from the centre of each district to London. This was not just a characteristic of very remote locations, but applied at all distances above 100km. Exactly why infant mortality in the remotest places improved most slowly – even went backwards until the 1890s – is not very clear. This research argues that it was a mixture of large-scale out-migration stripping regions of their healthier inhabitants; possibly, the gradual way new ideas about infant care may have diffused from the biggest cities into the country, and, probably, features of rural social organisation: we argue elsewhere that the general trend to force women out of the agricultural labour market across the later nineteenth century was excluding them from forms of labour which benefited their status, and their babies’ welfare, in northern and western upland, pastoral farming areas, but harmed them in the arable south and east.

This amounts to an argument for two things: attention to ‘the mother as medium’ when explaining infant mortality rates, and attention to the diversity and particularity of local economies and cultures as we study the countryside of the past.

 

The full paper is available here

To contact the author: @PaulAtk43202349

 

 

British exports and American tariffs, 1870-1913

by Brian D Varian (Swansea University)

B. Saul (1965) once referred to late nineteenth-century Britain as the ‘export economy’. During this period, one of Britain’s largest export markets—in some years, the largest market—was the United States. To the United States, Britain exported a range of (mainly manufactured) goods spanning such industries as iron, steel, tinplate, textiles, and numerous others.

A forthcoming article in the Economic History Review argues that the total volume of British exports to the United States was significantly affected by American tariffs during the interval from 1870-1913. The argument runs contrary to the more general finding of Jacks et al. (2010) that Britain’s trade with a sample of countries, i.e. not just the United States, was uninfluenced by foreign tariffs.

This argument complements some previous studies that focused on specific commodities that Britain exported to the United States in the late nineteenth century. Irwin (2000) found that Britain’s tinplate exports to the United States were indeed responsive to changes in the American duty on tinplate. Inwood and Keay (2015) reached a similar conclusion regarding Britain’s pig iron exports to the United States. However, as this research claims, the determinacy of American tariffs for the volume of British exports was not limited to only certain commodities, but rather applied to the bilateral flow of trade, as a whole.

The United States imposed different duties on different commodities. Because the composition of commodities that the United States imported from all countries collectively differed from the composition of commodities that the United States imported from Britain, the average American tariff is an inaccurate measure of the tariff level encountered by, specifically, British exports to the United States. For this reason, this research reconstruct an annual series of the bilateral American tariff toward Britain for the interval from 1870-1913, using the disaggregated data reported in the historical trade statistics of the United States. This reconstructed series is crucial to the argument.

chart

The figure above presents the average American tariff and the reconstructed bilateral American tariff toward Britain, both expressed as percentages (ad valorem equivalent percentages, to be precise). In the 1890s, the average American tariff and the bilateral American tariff toward Britain do not follow a similar course. For example, whereas the tariff revisions of the Wilson-Gorman Tariff Act of 1894 had little effect on the average American tariff, these tariff revisions resulted in the bilateral American tariff toward Britain declining from 45% in 1893/4 to 31% in 1894/5.

This econometric analysis of the Anglo-American bilateral trade flow relies upon the empirically-correct bilateral American tariff toward Britain. In this respect, the forthcoming article in the Economic History Review departs from other historical studies of trade, which use average tariffs as approximations of bilateral tariffs.

Perhaps the reconstruction of another country’s bilateral tariff toward Britain—Germany’s tariff toward Britain is an obvious choice—would reveal that the effect of foreign tariffs on British exports was more widespread than just the bilateral American case. Nevertheless, the importance of the bilateral American case should not be diminished, as the United States was a large export market of Britain, the ‘export economy’ of the late nineteenth century.

 

Link to the article: http://onlinelibrary.wiley.com/doi/10.1111/ehr.12486/full

To contact the author: b.d.varian@swansea.ac.uk

 

References

Inwood, K. and Keay, I., ‘Transport costs and trade volumes: evidence from the trans-Atlantic iron trade, 1870-1913’, Journal of Economic History, 75 (2015), pp. 95-124.

Irwin, D. A., Did late-nineteenth-century US tariffs promote infant industries? Evidence from the tinplate industry’, Journal of Economic History, 60 (2000), pp. 335-60.

Jacks, D., Meissner, C. M., and Novy, D., ‘Trade costs in the first wave of globalization’, Explorations in Economic History, 47 (2010), pp. 127-41.

Saul, S. B., ‘The export economy, 1870-1914’, Bulletin of Economic Research, 17 (1965), pp. 5-18.

Business before industrialization: Are there lessons to learn?

by Judy Stephenson (Wadham College, University of Oxford) and Oscar Gelderblom (University of Utrecht)

 

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Bruegel the Elder (1565), Corn Harvest (August)

Business organization is mostly absent from economic history debate about the rise of economic growth, but it was not always so  

As a new protectionist era in political economy dawns, it would be fair to ask what scholarship business and policy can draw on to understand how trade flourished before twentieth century institutions promoted globalization. Yet, pre-industrial business organization, once a central concern in scholarly debates about the rise of capitalism, and the West, currently plays only a marginal role in research on long-run economic development. Once a central pillar of economic history, the subject is almost absent from the recent global meta-narratives of divergence and growth in economic history. Since 2013 Oscar Gelderblom (Utrecht) and Francesca Trivellato (Yale) have been reviving interest, exploring finance and organization in early modern business thanks to a grant from the Netherlands Organization of Scientif Research (NWO).

“our survey suggests that a strong theoretical foundation and rich empirical data exist on the basis of which we can develop a comparative business history of the preindustrial world.”

In May they convened the last in a series of workshops ‘the Funding of Early Modern Business’, in Utrecht, bringing together speakers from around the globe to look specifically at means and methods of funding and finance in a comparative sense.

The old literature on western business focused, for the largest part, on the large chartered and state backed organizations of colonialism, possibly to the detriment of our understanding of domestic and regional business practice. The cases under discussion at the workshop were geographically and methodologically varied – but mostly they stressed the latter. Susanna Martinez Rodriguez (Murcia) examined the cases of Spain’s Sociedad de Responsibiliadad Limitata in the early twentieth century, highlighting the attractiveness of the hybrid legal form for small business. Claire Lemercier (CNRS Paris) showed the use of courts and the legal system by trading businesses in 19th century Paris were a last recourse for the complex credit arrangements of urban trading. A large number of trading women used the courts and this raises the question of whether this represents a larger number of women in business than expected, or whether other means were less accessible to them. Siyuan Zhao (Shanghai) showed the vast records available to the researcher of Chinese business forms in the 19 century. His case showed that production households operated with advanced subcontracting networks of finance. As the first day ended conversation among participants and discussants – including Phillip Hoffman, Craig Muldrew, Heidi Deneweth and Joost Jonker focused on contracts, enforcement, and the varied ways in which early modern businesses responded to costs and risk.

Meng Zhang (UCLA) delighted participants with meticulous research showing that small farmers and plot owners in 18th-century Southwestern China securitised timber production and land shareholdings with complex contracts risk mitigation among small agricultural operators that allocated future output and allowed division of land and produce. Her work challenges current narratives of China in the 18th century. Judy Stephenson described the significant credit networks of seventeenth century building contractors in London. The structure and process of the contract for works enabled the crown and city to finance major infrastructure development after the Great Fire. Pierre Gervaise showed that French merchants in the southwest were opportunist in using their de facto monopolies on supply of goods to Bordeaux to price gouge. His amusing and detailed archival sources give the opportunity for new analysis of French supply chains and transaction costs.

Thomas Safley needed no introduction to this audience. His work on fifteenth and sixteenth century Southern German family networks is well established, but here he demonstrated that norms and collective action institutions in southern Germany were distinctive. Mauro Carboni traced the development of the limited partnership to 15th century Bologna and described the contract stipulations made as the time of partnership formation.

One of the key areas that Gelderblom & Trivellato highlighted as of particular interest was that of women in business in the early modern period. Hannah Barker used her wide research in women and family business to discuss the high number of trading businesses in mid-19th century Manchester run by women, and make the point that existing accounts of welfare and output do not take women’s businesses into account. The area is one with active research.

The overall picture gained from the workshop was of the remarkable organization flexibility of early modern business co-ordination, most particularly y in relation to credit. Almost all cases showed businesses moderating and contracting the rights and involvement of creditors in varied ways non-financial ways. Almost all cases indicated that contracts entered into determined outcomes to the same or greater degree as the structure of the enterprise.

Gelderblom & Trivellato have come to the end of the project but will continue to forge research links and networks on early modern business. Their work so far shows clearly that research into domestic and regional businesses before 1870 will bear fruit for historians, and very probably business leaders too.