What was the most important factor in the process of industrialisation?

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What was the most important factor in the process of industrialisation?

To attempt to answer the question of what was the most important factor in the process of industrialisation, it is necessary to look at each of the major factors in turn and try to assess their significance. I have identified six main factors and will consider them both on their own merits and on the ways they relate to each other. I will begin by looking at the issue of capital and the effects of a low rate of interest on industrialisation. Secondly, I will consider the development of agriculture and the land enclosures. I will proceed to discuss the impacts of the textile and coal mining industries and also look at the ways in which transport was revolutionised. The last factor which I will consider is the growth of the iron industry. The use of steam for industry and transportation will be discussed in the light of its association with all of the industries. I will then try to determine which, if any, of these factors is the most important.

One of the crucial factors in the process of industrialization was the availability of cheap capital. This was the result of the progressive lowering of the rate of interest until it reached 3% in the 1750s. In 1757 the 3% Consolidated Stock was introduced, bringing together several issues into one.1 This made borrowing cheaper and encouraged investment in industry. Combined with the development of local banking systems, which made the mobilization of savings more efficient, this enabled many entrepreneurs to purchase the equipment needed to go into business. As the initial outlay in many cases was not great, the careful 'recycling' of profits would soon facilitate expansion. The low cost of borrowing also resulted in the enlargement of estates by landowners, who raised money by mortgaging their properties. Where large areas of land were controlled by a single landowner, it was easier to bring about innovations in agricultural practice, which would lead to higher productivity.

Another significant factor was the progress made in agricultural methods, largely due to the practice of 'enclosure' (the fencing off of what had previously been common land). Although this was not a new practice (it had its roots in the 13th century), in the first half of the 18th century it was used by the landed aristocracy to enlarge their estates. Freeholders would be bought out and if they were unwilling, the large landowners were able to use Parliamentary powers to insist on their 'rights'. Peter Mathias notes that 'Seven million acres were covered by parliamentary enclosure awards between 1760 and 1815, with over 1,000 acts passed between1760 and 1800, and a further 800 between 1800 and 1815.'2 As mentioned previously, it was much easier to introduce innovations such as crop rotation, the planting of turnips and clover and the breeding of cattle rather than sheep, where large areas of land were in the hands of one owner rather than many small freeholders. These innovations resulted in higher food production and also provided a healthier diet. Wheat, potatoes and meat were now widely available, improving the health and life expectancy of the workers. The enclosures released or drove men from the land, according to your point of view. In any case, a work force was available for the nearby industrial centres.
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Other innovations included new methods of drainage and more efficient ploughs and threshing machines. Even George III took a keen interest in agricultural improvement.3 Prizes were offered for new developments, by the Society of Arts, and journals such as the Farmers' Magazine and Farmers' Journal encouraged the spread of information.

No consideration of the important factors in the process of industrialization can ignore the Textile industry. The manufacture of woollen cloth, in Britain, had for centuries provided almost as much employment as had agriculture. In the early part of the 18th century, many of these workers operated ...

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