Scottish Economy 1700-1850

Before the 1700s, Scotland served as an impoverished rural region, with fewer natural materials or profits due to its remote location in the periphery of the European globe. In the early 1700s, Scotland continued to be a predominately rural community with subsistence farming more prevalent in several regions.[1] Consequently, many sectors of the Scottish economy mainly involved wool, grain, cattle, coal, skins, and linen. Additionally, half of the Scottish products traded by value mostly went to Britain and England.as a result, during the early middle ages, the Scottish economy was primarily agriculture. Subsequently, with lack of essential broader markets and transport, several farms had to produce the self-sufficient foods, cereals, and dairy products.[2] However, after the 1800s, Scotland economy started to grow dramatically. The significant growth was characterised by better infrastructure, industrialisation with coal, linen, banking and shipbuilding. Glasgow served as the main centre of an essential Scottish economy.[3]

Nonetheless, after the declining of world war I, Scotland experienced a severe decline in its economy leading to termination of several jobs and industries. Therefore, the essay focuses on the economic history of Scottish between 1700-1850.

Scottish Economy During 1707-1760s

 During this period, the Scottish structure and economy remained the same. However, variations occurred within the systems. Although the Scottish structure and economy during this period were mainly dominated by short-distance local trade and agriculture, there was an increasing amount of international trade.[4]

At the end of this duration, coins started replacing the barter items, but for the better part of this period, the metal currency was used as the primary mode of exchange. There were difficult terrains, poor infrastructure low businesses as most people relied on locally produced items.[5]

During the period, Scotland’s economy suffered severe challenges due to the lack of industries and technology. In the early 1730s, Scottish started experiencing fastest and modest growth in traditional sectors such as linen, cattle, tobacco and cotton as outlined below

Growth of Linen

During the industrial revolution and Enlightenment, the Scottish industrial strategy was established by the board of trustees for fisheries and manufactures in 1727 and significantly encouraged the growth and development of linen sector.[6] Consequently, the industry helped to develop and promote innovations and technological advances. Linen sector served as Scotland’s premier sector in the 18th century and led to the emergence of other industries such as woollen, cotton and jute. The linen industry was characterised by weaving and cultivation than the flax cultivation. Additionally, it provides a variety of luxurious fabrics, interior accessories, and fashion that attracted several entrepreneurs across the globe. Due to the high demand of linen products, the value of linen produced significantly increased from $ 3.8 million in the 1730s to $ 7.7 million in 1750.[7]

The increase led to significant development of the Scottish economy. Furthermore, in 1742, there were several bounties paid on the exports that allowed scots to compete successfully in the colonial enterprises and markets actively. During the 1740s, there was high demand for linen products from the West Indies and North America thus led to the production of more linen goods. However, there occurred a severe decline due to economic depression. In the early 18th century, 90% of  linen was imported task free to British and England plantations.[8] By the end of the century, lined accounted for 55% of Scotland’s total exports. However, the constant rise in the cotton industry led to the decline in the linen sector. Due to low price cotton in North America and Europe markets, linen’s position was under threat, and by early 1770s, there occurred a severe downturn in the linen trade.

Tobacco

In 1740s, Scotland experienced spectacular growth and development of trade in tobacco primarily due to several efficient enterprise mechanisms and techniques of the Glasgow merchants. In 1707, the agreement between England and Scotland allowed the Scottish merchants with successful access to the growth and importation of tobacco due to the useful sailing ships.[9] Moreover, tobacco lords promoted the business due to their leading partnership with the Scottish banking system and organised more contracts in Britain and American colonies, and by 1760s British had registered 40% imports of tobacco at Glasgow.[10]

Nonetheless, much of this tobacco was re-exported. By late 1755s, 50% of Scottish exports was mainly colonial tobacco by value. The significant reign of tobacco lords lasted for over 55 years, from 1707-1767.

Tobacco trade was essential for the Scottish since it led to the rise of several banks that supported local industries. As a result, the permanent funding of the Scottish economy and industrial revolution was significantly offered by tobacco trade and tobacco lords.[11]

Consequently, Scotland flourished and the economy significantly exploded into an active manufacturing growth due to the supportive systems of local banks that offered local loans to domestic sectors. Therefore, tobacco trade provided great wealth to the Glasgow and Scottish society especially west of Scotland that heavily traded on tobacco.[12]

Nonetheless, despite the essential growth and success of tobacco and linen, other sectors of the Scottish economy such as salt, coal and iron severely remained depressed.

Scottish Economy in The 1770s -1850s

The period saw a significant transformation of the Scottish economy and community. There was a structural change in the economy with the decline in the share of a labour force of Scotland’s national output obtained from agriculture. More significant, there was an increase in manufacturing and production hence greater and sustained rates of the economic growth. As a result, Scotland experienced an essential rise in urbanisation and the workforce thus better economy.[13]

After the 1750s, there was significant development of Scottish industries such as linen, tobacco and cotton. From 1790, textiles became the main industry in west Scotland. The sector mainly operated in weaving and spinning of cotton. The industry successfully flourished until the emergence of the US civil war of 1861 that terminated the production and supplies of raw cotton.[14] The Scotland embraced the industrial revolution thus becoming an industrial and commercial powerhouse of the influential British empire. Several scots youths and young men got careers, became soldiers and engaged in production activities and industries. During this period, Scotland experienced dramatic growth in firms and the economy as described below.

Cotton

Cotton started to replace the linen in an economic significance during the late 1770s, with the first significant mill opened in 1778 in Rothesay and Penicuik. Nonetheless, until the late 1790s, many mills were very small and mostly located in rural regions. Consequently, 92% of these mills were mainly powered by the massive water wheels. In the early 1800s, cotton overtook linen and  was  mainly practised across the nation due to high demand for cotton products.[15]

Subsequently, flax prices increased due to a decrease in cotton prices. During the initial stages of growth, the sector depended mostly on the borrowed expertise and technology from England. The cotton sector was significantly transformed by an application of constant steam power that resulted in the relocation of mills to towns and whole production.

Trading in cotton resulted in the urbanisation of the Scottish population, involving the more significant value of immigrants from many highlands and states across the globe. Due to these essential changes, in 1795, there was an increase in the number of mills from 39 to 192 in late 1839 with the bulk in Glasgow, Renfrewshire and Lanarkshire. In 1759, the Carron iron-work was established to increase employment. However, between 1798 to 1824, Scotland had insufficient demand for iron works thus no new Carron ironworks were created. As a result, James Neilson implemented the Hot Blast Procedure that revolutionised the sector, therefore, required fewer resources and fuel hence lowered prices of production. After the 1830s, Scotland experienced a soared output of the low price pig irons. For instance, in 1830 only 37,500 tonnes (5%) of metal were exported to the UK unlike 700the, 000 tonnes in 1849.[16] The high demand originated from foreign countries and private industries.

 The production of iron led to the emergence of coal with trades based in Fife, Lanarkshire and Lothians. The output of coal rose from 1m to 1775 tonnes in 1830. The constant growth in the coal industry is due to high demand from the domestic markets, expansion of iron business, urban development and continuous population growth. Therefore, the increased demand for produced goods from English, overseas, foreign and domestic markets were primary factors during the industrial revolution in Scotland. Other considerations for the growth of the Scottish economy include raw materials, banking or access to funds, labour and urbanisation.[17]

For example, various Scottish producers had ready access to abundance core raw materials at home and in foreign countries. These include cotton from different colonies, blackband ironstone and coal as real wealth of Lothians, fife and Lanarkshire.

The establishment of the stronger banking system in the 18th  century is a key factor for Scotland’s economic growth. Banking system played a significant role in funding the industrial development. The number of funds available for investments increased due to continuous profits from the colonial trade, industrial growth and agricultural revolution. Scottish population started to increase from 1.25 million in 1755 to 2.6million in 1841.[18] The increase in population helped in creating the high demand for produced products and offered more labour force for the industries. Scotland’s labour force was characterised by English workers and Irish immigrants who worked in critical sectors. Children and women were mainly recruited in the manufacturing sectors to provide cheap labour. However, the displaced rural labourers from lowlands and highlands migrated to cities and towns to seek for jobs and settlement zones. Scotland’s labour prices were lower than those offered in England. Therefore, there was the cheap, abundant and mobile distribution of labour for industries.

In conclusion, Scotland was a predominately rural community with prevalent subsistence farming in the early 1700s. The leading industries during this period include cattle, linen, wool, and cotton. In 1700-1720s, there was a stagnant growth of the Scottish economy. However, the modest growth started in the 1740s with the development of linen and cotton industries. The dramatic increase in growth occurred after the 1770s due to more inventions, and use of technology thus resulted in more industries, increased in population, labour force, and urbanisation. Therefore, the Scottish economy went a great transformation making Scotland one of the best rich nations with better industries and strong economy.

Bibliography

Allan, D. (2014). Scotland in the Eighteenth Century: Union and Enlightenment. Routledge.

Devine, Thomas Martin. Clearance and improvement: land, power and people in Scotland, 1700-1900. John Donald Publishers, 2006.

Dow, Alexander, and Sheila Dow. “Economic Development in the Scottish Enlightenment: Ideas as Cause and Effect.” (2015): 7-22.

Mason, Colin, Ross Brown, Mark Hart, and Michael Anyadike-Danes. “High growth firms, jobs and peripheral regions: the case of Scotland.” Cambridge Journal of Regions, Economy and Society 8, no. 2 (2015): 343-358.

Whyte, Ian D. Scotland before the Industrial Revolution: An Economic and Social History c. 1050-c. 1750. Routledge, 2014.

[1]

Devine, Thomas Martin. Clearance and improvement: land, power and people in Scotland, 1700-1900. John Donald Publishers, 2006.

[2] Dow, Alexander, and Sheila Dow. “Economic Development in the Scottish Enlightenment: Ideas as Cause and Effect.” (2015): 7-22

[3] Mason, Colin, Ross Brown, Mark Hart, and Michael Anyadike-Danes. “High growth firms, jobs and peripheral regions: the case of Scotland.” Cambridge Journal of Regions, Economy and Society 8, no. 2 (2015): 343-358.

[4] Devine, Thomas Martin. Clearance and improvement: land, power and people in Scotland, 1700-1900. John Donald Publishers, 2006.

[5] Whyte, Ian D. Scotland before the Industrial Revolution: An Economic and Social History c. 1050-c. 1750. Routledge, 2014.

[6] Allan, D. (2014). Scotland in the Eighteenth Century: Union and Enlightenment. Routledge.

[7]

Devine, Thomas Martin. Clearance and improvement: land, power and people in Scotland, 1700-1900. John Donald Publishers, 2006.

[8] Dow, Alexander, and Sheila Dow. “Economic Development in the Scottish Enlightenment: Ideas as Cause and Effect.” (2015): 7-22

[9] Mason, Colin, Ross Brown, Mark Hart, and Michael Anyadike-Danes. “High growth firms, jobs and peripheral regions: the case of Scotland.” Cambridge Journal of Regions, Economy and Society 8, no. 2 (2015): 343-358.

[10] Whyte, Ian D. Scotland before the Industrial Revolution: An Economic and Social History c. 1050-c. 1750. Routledge, 2014.

[11] Allan, D. (2014). Scotland in the Eighteenth Century: Union and Enlightenment. Routledge.

[12] Ibid, 21

[13] Mason, Colin, Ross Brown, Mark Hart, and Michael Anyadike-Danes. “High growth firms, jobs and peripheral regions: the case of Scotland.” Cambridge Journal of Regions, Economy and Society 8, no. 2 (2015): 343-358.

[14] Whyte, Ian D. Scotland before the Industrial Revolution: An Economic and Social History c. 1050-c. 1750. Routledge, 2014.

[15] Ibid, 347

[16] Whyte, Ian D. Scotland before the Industrial Revolution: An Economic and Social History c. 1050-c. 1750. Routledge, 2014.

[17]

Dow, Alexander, and Sheila Dow. “Economic Development in the Scottish Enlightenment: Ideas as Cause and Effect.” (2015): 7-22

[18]

Ibid, 352