APEURO Lecture 4C Mrs. Kray. French and the English surpass Dutch Joint Stock Companies expand French East India Company British East India Company.

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Presentation transcript:

APEURO Lecture 4C Mrs. Kray

French and the English surpass Dutch Joint Stock Companies expand French East India Company British East India Company

Facilitated the exchange of goods Promoted slave trafficking Commercial Revolution led to Consumer revolution in tastes Coffee, teas, calicos, muslins, sugar

Sugar = the biggest money-maker of all for England

Profits from commerce promoted the development of a capitalist system of private property Gov’t became more dependent on entrepreneurs as a source of taxation and to underwrite state borrowing of funds, through banks and other credit institutions Accumulation of wealth by the middle class tended to facilitate its merging with the aristocracy as both stood to gain from intermarriage Potential for great riches led to intensification of commercial rivalries that resulted in war Often the conflict over territory within Europe coincided with overseas competition for colonies and markets, thus producing the first world war in history France vs. England for colonial dominance Prussia vs. Austria for influence in German affairs

Only 5 when became king Great-grandson of Louis XIV His weak rule undermined support for the monarchy Lazy Not interested in politics Aristocrats & parlements reclaimed rights/privileges lost under Louis XIV Parlement of Paris

King’s favorite mistress Believed to exercise undue influence in gov’t affairs

Key advisor to the king Worked with property classes Sought to avoid war

Government debt considered the personal debt of the French king No system of public debt in France Forced to borrow $$$ at high interest rate b/c of repeated defaults Why was the French government in such deep debt? Wars of Louis XIV, small tax base, desire of investors to profit from the commercial revolution Mississippi Bubble, 1720 Monarchy chartered Mississippi Co. in hopes of issuing stocks to underwrite government debts Widespread speculation Thousands bankrupted France repudiated the debt which made it harder to borrow money later

English monarch continued to play an important political role, but worked through Parliament to pass legislation and govern George I, First Hanoverian King Unpopular Did not speak English Dynasty was able to establish a functioning system by relying on a prime minister and cabinet system

First prime minister House of Commons Helped develop Britain’s cabinet system Appointed ministers to head up government agencies who also served in Parliament Cabinet = a group bound to each other with a common goal Advanced Britain’s commercial interests abroad while avoiding war

Close relationship between government finance and private business Bank of England issued stock to finance government debt and also allowed investors to draw on a larger amount of capital than other nations This established a system of public debt South Sea Bubble, 1720 South Sea Co. purchased government bonds and issued stock based on the hope of profits trading with Spanish America Stocks became overvalued, bubble burst, causing significant loss to creditors Britain was able to save company b/c of quick gov’t action Compare w/France’s Mississippi Bubble

Highly trained professional armies Infantry played a major role Smootbore musket  inaccurate Wars fought for specific strategic objectives Less destructive than earlier wars Entered into lightly and withdrew from more quickly

Pragmatic Sanction guaranteed Maria Theresa’s right to inherit the Habsburg throne and territories Frederick the Great of Prussia ignored the Pragmatic Sanction and seized Silesia Silesia had more than 1 million people, a prosperous linen industry, and rich deposits of iron ore War of Austrian Succession had begun

Bavaria, Saxony, and Spain rushed in to claim territorial prizes France sided with Prussia Britain backed Austria Evolved into a world war

Prussia kept Silesia Doubled Prussia’s population; strengthened its economic base Prussia attained great power status Austria compensated for loss with Belgium Maria Theresa determined to regain Silesia All other territory returned to pre-war status War Highlighted 2 issues: France in unfavorable strategic position Hamstrung between major continental commitments with its large army and a growing commercial empire in need of naval defense Prussia now Austria’s chief rival in German affairs

Centralized tax collection & combined administrative offices of the various territories Tripled army size Promoted primary education & economic productivity Promoted smallpox vaccination, outlawed torture, eased burdens on serfs Goal: Strengthen the state to recapture Silesia

Wanted Austria to regain Silesia. Formed a coalition that included France, Austria, and Russia.

One consequence of this new alliance was the marriage of Marie Antoinette, Maria Theresa’s daughter, to the future Louis XVI of France Her Other Notable Children: HRE Joseph II HRE Leopold II

War actually began in America (French & Indian War) Britain won major victories on land and sea in N. America, Caribbean, & India Br. used their East India companies to exploit the decaying Mogul Empire in India France depleted by fighting major wars on the continent and overseas

Frederick II’s darkest & finest hour Outnumbered almost 10 to 1 Berlin burned to the ground Britain only sent financial support Earns name Frederick the Great His enemies never seemed able to coordinate their attacks France never embrace Austrian alliance Treaty of Hubertusberg Frederick hangs on to Silesia

Britain victorious Britain acquired French Canada and all land between the Appalachian Mountains and the Mississippi River France kept profitable sugar islands in the Caribbean Britain secured a dominant position in India “crown jewel of the British Empire” Britain dominant maritime power Prussia kept Silesia This treaty set the stage for 4 major events on 3 continents American Revolution Dualism in Germany French Revolution