ABSTRACT
In the second half of the 1840s, Europe was scourged by poor harvests and revolution. A quarter of a century later, in 1873, Europe and North America were shocked by a wave of bank failures which sparked a severe depression. Between these dramatic events, the Western world economy had passed through a long period of prosperity and expansion. Economic historians have mostly concentrated on the development of industry, the broad facts of which are well known. In the United Kingdom, where factory production was already well established by the beginning of this period, industrial growth made a new leap forward from the late 1840s. It was encouraged by the growing export demand for British manufactures, which was generated by the liberalization of international trade, worldwide railway construction and improvements in shipping. Meanwhile, in the United States and in Germany, factory production began to develop rapidly in the same period. By 1873, these countries were well on their way to catching up with the United Kingdom as manufacturing nations. Though still lagging behind in absolute figures, they had higher industrial growth rates. However, the Industrial Revolution seemed to bypass the Netherlands – the United Kingdom’s predecessor as the hegemonic power and leading country in economic development – and by 1873, a modern manufacturing sector was still in its infancy.
