Beginning in 1850 and for the next two decades, the landscape of the Industrial Revolution began to shift as the continental states experienced accelerated development in almost all measurable categories (coal consumption and output, cotton textile production, railroad mileage, the production of pig iron, and the increase in steam capacity). The race to catch the British proceeded at a fever pitch and points to an invigorated continent. With the lone exception of the cotton industry in the 1860s, the rate of industrial growth for Belgium, France, and the German states increased between 5% and 10% in this period. Great Britain’s advantage remained in place, but its ability to increase capacity did not keep pace with its continental rivals.
By the early 1870s, the nations of Western Europe began to compete on more favorable terms with Great Britain. The statistics below (Table 1) reflect an accelerated growth that would challenge the British, although a quantitative and qualitative difference existed until the late 19th century.
Innovative and up-to-date approaches to industrial growth. The textile industry embraced the power loom and discarded the last vestiges of the hand loom. In the area of iron production, mineral rather than vegetable fuel became standard. The steam engine was the essential source of power technology and mechanization and had spread its tentacles to a growing number of industrial enterprises. In addition, these developments provided the foundation for increasing innovation and the appearance of new inventions that stimulated further expansion. The results were nothing less than spectacular. Railroad construction proceeded at a dizzying pace. More than 50,000 miles of new lines appeared from 1850 to 1870 in contrast to just 15,000 miles of construction in the 1840s. France constructed 9,300 miles in this era, while the German states added 7500 miles. Coal output from the Ruhr valley increased from 1.6 million tons in 1850 to 11.8 million tons in 1869 and overall German coal production increased from 4.2 million tons to 23.3 million tons in the same time period, while French output also rose dramatically from 4.4 million tons to 13.3 million tons.18
Only in the cotton textile industry did Great Britain fully ward off the growing capacity of the continent. The number of spindles in operation demonstrates that advantage. In 1834 the number in millions was as follows: Great Britain, 10; the United States, 1.4; France, 2.5; Germany, .6; Belgium, .2; in 1861, Great Britain, 31; the United States, 11.5; France, 5.5; Germany, 2.2; Belgium, .6; and in 1867 Great Britain, 55.5; the United States, 30.5; France, 7.4; Germany, 10.9; Belgium, 1.4. As late as 1913 Great Britain boasted three fifths of all cotton spindles in operation. Thus, not only did Great Britain maintain an edge in sheer quantity of spindles, but its power looms generally ran at a faster pace and had less waste than the counterparts on the continent.19
The obvious benefits arising from industrial expansion eventually broke down many of the social biases and traditional barriers that had been imposed by governments or lingered in the minds of the people. Changes in business, investment, and legal practices, as well as improving economies, also stimulated positive change. In response to a growing amount of bullion, the paper money supply increased three times in France and nine times in the German states and resulted in a fall in interest rates from 4% to 2%. Thus, additional capital and credit became more available for joint-stock ventures and other investment opportunities to funnel money into industrial enterprises. Correspondingly, new business enterprises arose as political authorities, albeit slowly at times, relaxed or modified controls on the formation of companies. Great Britain took the first steps in the 1850s, and France and the German states followed in the 1860s and 1870s. Prussia was a prime example of how loosening restrictions led to the formation of new companies. Prior to 1850, 123 firms had been registered; from 1850 to 1870 that number was 295; from 1870 to 1874 the number soared to 833. Other legal changes facilitated growth. Great Britain discarded its statutes on usury in 1854, and the Netherlands, Belgium, France, and the German states accomplished the same over the next decade or so. Furthermore, laws prohibiting foreign companies from crossing into other nations began to be repealed in the 1850s and 1860s. A rash of additional commercial and financial reforms took place in the same period. A revision of laws occurred regarding debt payment, patents, and levies on rivers and major water arteries such as the Scheldt estuary and the North and Baltic Seas further led to important commercial treaties and furthered broad economic change and cooperation.20
By 1870 Europe’s industrial map had essentially been drawn. There were relatively few major sources of key raw materials such as coal fields and iron deposits left to discover. The infrastructure of transportation and communication had made great strides and would be enhanced throughout the rest of the century. Advanced techniques had been introduced into a variety of industrial enterprises, and new innovations continued to be adopted and employed. Modern business, banking, and investment procedures had proven to be exceedingly profitable. By 1870 Great Britain’s role as the industrial leader of the world remained secure. Britain led in all major areas of industrial capacity. However, over the next three decades the margin of difference dwindled as the nations of Europe entered into a mature stage of development and coped with the new challenges facing their respective societies.
World History
