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Changing Trade Patterns - Coggle Diagram

Changing Trade Patterns

CHANGING CLOTH TRADE

The Changing Cloth Trade

Increase in population→allowed for the putting-out system to flourish in the first half of the century . Lent itself well to domestic labor force - people working from their houses.

Cloth industry→developed into a more specialised system, producing cloth quicker and cheaper than ever.

Statistics

  - Value of exprts rose form £600,000 in 1560s to London exporting £1.5 million alone in 1660
  - Monetary value of textiles sytem multipled 15-fold between 1485-1714
  - Cloth accounted for 92% of exports out of London in 1640, 74% in 1660 and 72% in 1700

Growth of the Domestic system

Cloth→lent itself well to use of this, led to products varied according to region e.g. Lancashire weavers produced coarse cloth, and West County manufactured hard-wearing broadcloths

Merchants→supplied the cloth to the extent they would make enough money to marry into landowning Gentry

Home→based in the home of workers as it was free of taxes and regulations

Impact of Protestant Refugees

British Workforce→did not possess the skills needed for finishing and dyeing cloth for sale in the general market - so it was shipped to Holland.

Statistics

  - Over 1500 protestant dutch migrants settled in Colchester
  - By 1585 there were 13,000 Dutch migrants working in the cloth industry in England.

Impact→This meant that the quality control was better and thus the industry improved. Native workers able to be trained in new continental methods.

Colchester→employment in textile industry rose form 26.4% in 1619 to 40% in 1699.

Frame knitting machine→Also introduced the frame knitting machine which meant cloth was produced at a much higher pace.

French Huguenots→in 1681 brought over skilled artisans with many settling in Kent and London establishing major weaving industry in the east end.

LONDON

London's offerings

Banking and Insurance→industries based in london - provided employment and the capital needed for merchants and business men

Legal system→centre of - the Inns of Court where legal training would take place - high profile lawyers

Transport→improving since Tudor times - some roads in the area had seen investment and the Thames was navigable for much of its length

Demographic growth→Surpassed other towns - wealth of opportunities

Skilled and Educated workers→more likely to move to London

Number of Markets→made it the focal point for economic activity in the South East - national prices of livestock, grain and cloth were directed by London's market

BANKING AND INSURANCE

Money Scriveners

first firm→established by Abbot - flourished in 1650s.

Royalist landowners→turned to London for loans to compensate their land and as a result encouraging men in London to loan their capital.

Abbot→acted as a broker. Between 1652 and 1655 a £1,137,646 passed through his accounts.

First English cheque in 1659→John Morris wrote

Goldsmith Bankers

Success in→Second half of 17th Century was successful.

Merchants→who accumulated large amounts of precious metals often stored them in the royal mint. but it was seized by Charles 1 in 1640. So used Goldsmiths

Goldsmiths would loan the money they stored with interest.

Statistics→London had 32 bankers in 1670 rose to 44 in 1677.

Interest Rates→they could borrow at 4-6% as they were trustworthy so they then lent this at a higher rate. Could offer short-term loans at a rate above six percent.

Apprenticeship→Knew each other well due to guild system of apprenticeship - borrowed from each other.

Commonwealth attempted to regulated banking→through the Hale commission formed in 1652 but Charles 11 debt to goldsmith bankers leading to a reform in banking in 1672 destroyed crowns trust in investments until 1688 when it was restored by William 111.

Fire Insurance

Growth→Enjoyed a boom in the 17th Cent.

Origins→State funded insurance began in Germany in 1623 but first fire insurance companies were established in London.

First record→1615 - Mr Havers an assurer of fire insurance - with an estate worth up to £40,000

Development→In 1627 an office with the Royal Exchange was set up to deal with insurance of ships and fires.

Charles 1→Exists of a scheme of Charles 1 in 1638 to protect citizens against fire - failed after the Civil War.

Fire of London→Fires were common in tightly packed streets - Great fire of London - increased need for formal insurance policies. Act passed in 1667 for rebuilding the city and settling insurance claims.

Effects of the Great Fire→Led to setting up The Fire Office (1681) and The Friendly Society (1683)

Marine Insurance

Instrumental growth→in foresting economic conditions required for successful trade and expanding empire.

Established→by the 17th century but was not developed until 1688

Dutch merchants→understood the value by late 16th century - visiting London to meet with financiers.

Italian merchants→brought practice to Britain in early 15th cent.

Marine Insurance Law→was in 1601 to regulate the market and create separate Insurance Court to deal with matters

First half of the century→British merchants were reluctant to part with large amounts of money. East India Company avoided insurance entirely.

Dutch→were more conscious of the risk with international trade and by 1657 it became normal for ships in Holland to be insured through English Brokers.

Change in London Merchants→London merchants began to replicated the Dutch calculation of risk.

Statistics→During 17th Marine prices dropped by up to 75% industry became more established.

London→was the leading insurance market in the world.

Coffee Houses→1688 - Edward Lloyd opened his first coffee house which would develop to be the worlds first insurance market - Lloyds of London

Newspaper→Used for advertisements e.g. the City Mercury