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Economic History of German territories (1750-1900)

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Yago Duppel

on 10 June 2014

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Transcript of Economic History of German territories (1750-1900)

1790
1825
1900
1750
1860
The Economic History of German territories between 1750 and 1900
1750-1770
1782
The Krupp family starts activities near Essen
The German Boom
Ownership of railway lines had to be taken by more investors
1834
"Zollverein" is formed
-Union or coalition of german states that manages tariffs and economic policies

-Austria excluded
1840s and 1850s
1850: Germany becomes self-sufficient in regard to demands of the railway construction industry
1870
The Ruhr area was now the most important industrial area in Germany
-Hamburg and Bremen became important customers, since ships were now made of steel, not wood
Data Analysis
1750s: First important coal mines appear in the Ruhr area
1768: James Watt invents steam engine --> triggers industrialization
Holds patent for 30 years, preventing it from being exported to Germany
GB
G
F
A
B
Pie chart
Shows Capacity of all steam engines in percentage (measured in 1000 horsepower)
In 1896
In Great Britain, Germany, France, Austria and Belgium
Same information as on bar graph
Table (raw data)
Shows capacity of all Steam Engines in 1000 horsepower
Figures shown for Great Britain, Germany, France, Austria and Belgium in each of the following years:
1840, 1850, 1860,1870, 1880, 1888, 1896

There was a consistent and very sharp rise in steam engine capacity in every country
Most dramatic increase in Germany
More than 200-fold increase within 56 years
Distribution became more equal
Most obvious pattern: Numbers kept increasing without exception
Reasons:
Mainly the industrial revolution
Political and law reforms, which allowed more people to start new companies and the creation of new inventions
In beginning GB so far ahead, because they had the steam engine 30 years later
Later founded a company which concentrated on steel production
Important for both, military and railway industry
-> Similar to the ECSC
Useful, because it meant faster and cheaper shipping
->Before any customs union, a shipment traveling from Königsberg to Cologne would be stopped and taxed 18 times.
Is now (after a merger) ThyssenKrupp AG
1840s: Hard coal used instead of charcoal
More energy is set free
More availability
1848/ 1849: Blast furnace built at the Friedrich-Wilhelm-Mill in Mülheim
-> Allowed mass production of raw iron
1798
First steam engine exported to Germany
When used to drain water from coal mines the engine failed
-Franz Dinnendahl found a solution
Work on this solution gave him insight into the new technology
He then founded his own engineering factory
Difficult to start new businesses since guilds limited number of businesses
Business limitation and policies of Great Britain delayed start of industrialization in Germany
Infrastructure in Germany
Few roads, barely any paved roads
Transportation by horse carts
Both suffered under lack of unity in Germany
Road network based on the state's individual needs
Stephenson's "The Rocket" (invented 1814)
led to age of railway in England
New railways required large amount of iron and labour force —-> workers came from far away because there were not enough local workers
Prussian king did not allow use of a locomotive
1830 first tracks built south of Essen
train pulled by horses
Advantages obvious:
Railways transported faster, safer and arrival more reliable
7 December 1835 first railway line in Germany (Nuremberg —> Fuerth 6.5 kilometers long)
Germany's investments in its industry and infrastructure increased
Material still had to be imported from England
Solution: Joint stock companies
After 1850 German coal and steel industry was backed by stock exchange
Individual or companies could invest money in return for shares
Bar chart
Shows relative capacity of all steam engines (measured in 1000 horsepower)
Colours denote different countries (Great Britain, Germany, France, Austria and Belgium
Several coloums for different years
Distribution becomes more equal, especially Germany and also France gain, while GB loses
This large increase relative to other nations made Germany an important power in central Europe
Circumstances allowed Germany to develop especially fast
Bar graph showing capacity of all stea engines in 1840 in Great Britain, Germany, France, Austria, Belgium
Measured in 1000 horsepower
No new information
No information on change over the years (i.e. "static picture")
Line graph
Capacity of all steam engines in Germany from 1840 to 1896
Once again, mostly information from the table
However: also gives information on Capacity in between years given on the table
Exponential increase until 1880, then slowly levels off -> at some point it becomes increasingly difficult to make large improvements
Bar graph
Compares capacity of all steam engines in Great Britain and Germany in 1850 and 1880
Both have a large increase
Shows growth of capacity of steam engines in Great Britain and Germany (in per cent) between 1850 and 1880
Germany's capacity clearly grew more in terms of percentage
However, in absolute numbers, GB grew more -> different ways to look at/ interpret same data
Once again, this large increase ("explosion") of steam engine capacity in Germany due to very good circumstances (such as resources) and political decisions made
Full transcript