Samuel Greg was an entrepreneur, which meant he was a risk taker. Greg had a genius mind and therefore knew to take advantage of opportunities when they came around. This meant that when his Uncle left him his inheritance he seized his chance to create a money making investment. He saw that the Mill could be successful with his money and past experience. Greg was able to determine the difference between costs and income, which is why Quarry Bank Mill was so successful and created the profit it did.
To begin with, Samuel Greg inherited nearly £30,000 on Robert Hyde’s death, and was therefore in an exceptional financial position by 1782. Until the 1700s, it was hard to borrow money especially without rich relations. In 1694 the Bank of England was founded which meant people could borrow borrow and save money. The amount of money increased by growth of international trade.
As well as this, In 1790 Greg started a lease under the Earl of Stamford concerning land in the village of Styal. The lease was very inexpensive; it cost 50 shillings and then 2.85 shillings a year to rent his land. This land included habitation for himself and his apprentices and servants, four other cottages and several field closes or parcels of land. This evidence shows the relatively small sum of money being paid for the lease, leaving Greg with a lot more money for other oppertunities and purposes. No record exists for the lease of land for the Mill itself, as it may have been a gentlemen’s agreement.
The cost of transport was also relatively inexpensive and more efficient. When comparing it with another popular form of transport, the ‘land-carriage’, we can clearly see its advantages. The land-carriage cost approximatley 40 shillings per ton. However, the Canal charged but 6 shillings per ton. Not only this, the Canal had the same speed and regularity as its rival.
In 1789 he married Hannah Lightbody, the daughter of Adam Lightbody, a Unitarian cotton merchant. Hannah shared her father's religious beliefs, and her liberal and humanitarian views had a considerable impact on her husband. Hannah's dowry of 10,000 shillings was invested in his Quarry Bank Mill. This paid for a replacement water-wheel and cottages for his growing work force at Style.
Samuel Greg chose this area to build Quarry Bank Mill because it was situated on the River Bollin, at Styal. Meaning, he had found a place where he could build a long headrace channel which would turn a large water wheel very fast and provide power for all the machines in his mill. Not only this, the site was situated near a quarry and a forest, providing Greg with cheap raw materials to help with the construction of the Mill itself. Also, the area was flat land, so work could begin straight away.
Adaptations needed to be made at the site. Greg added sluice gates to the river. Once these gates were shut, water couldn’t pass through. When they were open, water could then travel down to power the wheel. These gates could be controlled whenever the wheel needed to be operational. The second sluice gate was used to prevent flooding, as it released excess water back down into the reserve. A weir was also built at the waterfall in order to push some of the fast flowing water back. This consisted of raised stones at the top of the waterfall. The water that got passed the weir got collected into a reserve. From the reserve it then travelled into the man made channel and then down to the water-wheel. The water then tail races back to the river. These adaptations cost 5000 shillings, and the machines for the Mill itself cost 11000 shillings.
Samuel Gregs loomshop at Eyam required a regular supply of good quality yarn to weave into cloth. He realised that he could control this supply of yarn by building his own mill. Produce was easily available at the time. IT was bought from the West Indies and America as part of the ‘Triangular Trade’. There was also an increase in population; more people meant higher demand for cotton. This encouraged manufacturers to find new ways to spin yarn and weave cloth faster. New inventions were introduced which lead to the increase in cotton. The demand for cheap cloth rose as all classes started to wear cotton clothes. More money was invested in larger factories and better machinery.
Demand for cotton was increasing as the population rose. In 1750 there were but 9 million people, by 1800, this number had doubled to 18 million, meaning there were now more people available to buy cotton.
Also 1776-1783 saw the US War of Independence. Due to its location trade was disrupted and supply of raw materials decreased. However, luckily for Samuel Greg he began exporting and importing goods in 1784, a year after the end of the war, meaning that trade had been restored and the supply of cotton had increased. Looking at my sources, I can prove that during the 7 years the war consisted of, the largest amount of cotton imported reached only approximatley 11,800,000lbs. However, 7 years after the war, imported cotton rose to aproximatley 31,500,000lbs. Exports were similar. In 1780, only £355,060 worth of cotton was exported from Britain. However in 1790, it had reached a total of £1,562,369 worth, and continued to rise as the years went by.
The Industrial Revolution had a great influence on the success of Quarry Bank Mill because of the discovery of machines i.e. the spinning jenny, which enabled factory owners to build larger factories that housed the sort of machinery capable of making a lot more cotton than a small workforce of people in a small factory. Also in 1781 Richard Arkwright lost his patent which meant Greg did not have to pay to use his water frame spinning machine. Also Cotton was not very popular in the south so Manchester was the only place where it would be profitable and growing colonies in other countries meant there was more demand for it.
With the increase in population, there wasn’t enough work for people. People had to seek other employment such as in factories. Up to 1820, about half the workers at Quarry Bank Mill were children. They were cheaper and easier to control. Greg did not pay these children, as he would provide them with somewhere to live, clothing, education and religious instruction in return for them working. The wages in Styal were lower than the wages in the city, which lowered the expense for Greg a little further. The wages were lower because the city is the centre of trade, and the manufactures had not so long established themselves properly in an area like Styal where there was not as much of a demand for workers. Wages in Styal were no more than 6 shillings 6 pence per week. Not only this, but workhouses couldn’t wait to offload them, meaning that apprentices were available. Young children were useful in the Mills due to their size; it would be much easier to clean under machines. The further away from Manchester they went, the lower the wages were. However, Quarry Bank Mill still attracted workers from Manchester, which was 11 miles away, as a small village was built making better living conditions for people in Styal and it was cheaper to live there. As well as paupers and apprentices, normal workers were employed which were cheaper in the rural area. They also had no alternative employer so they were also available.
Styal was ideal for waterpower but it was very indated. Samuel Greg had to rely on the Bridgewater Canal and horse and cart to transport cotton to and from the mill. Raw cotton came via the Port of Liverpool. Samuel Greg was probably the first manufacturer to import cotton from America. The ‘Triangular Trade’ meant expenses were reduced and profits increased.
The Bridgewater Canal was an important circumstance relative to trade for Liverpool. We can tell this by looking at the table on Source 6 showing an increase in Liverpool’s trade since the mid-18th Century. Not only was it almost half as cheap to travel by Canal than by Land-Carriage, it had all the speed and regularity of it as well. The dock duties were levied upon ships according to a certain rate per ton; which rate was used was determined by the place they arrived, increasing a lot with the increase of distance. The annual number of ships paying them, and the whole amount of the duties rose to a gradually increased proportion to the number of ships. Liverpools port was big enough to handle imports and exports.
Luck was one of the most important factors. The location was perfect and cheap. His adoption helped kickstart his career by giving him the experience he needed. Nathaniels illness was important as he would never had got the experience with money and business if Nathaniel was well enough to do it himself. His marriage also brought him luck, as without her he wouldn’t have the money available to pay for the adaptations. Finally timing helped Greg a lot, i.e: the end of the US War of Independence and all these lucky factors being present at the same time.
In conclusion, I think Samuel Greg chose this site because luck was on his side and all the factors made it too good an opportunity to miss. However I think his upbringing and financial status were most important. If Greg was not brought up in the textile industry he may have never got involved or interested in the trade. Also, without his financial stability brought on from his inheritance and marriage, he may never have had the confidence to go ahead with his plans.