Impact of the War on Scottish Economy

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Scotland & the Great War: Industry

gDurin

eBefor

Shipbuilding •

After

• •

100,000 workers (14%) of the male working population of Scotland depended on Industry for their weekly wage.

Main shipyards on the Clyde were Fairfield’s, Beardmore and John Brown – these were taken under control by the R.N (Royal Navy) Beardmore was saved from closure by the pre war naval race. Introduction of automatic machinery and assembly line production increased production but threatened jobs.

International trade slumped and so did the shipbuilding industry. Orders dried up and unemployment rose.

Fishing

Jute

1900 were seen as the glory days of the Scottish fishing industry.

The industry faced difficulties before the war.

1913 – 10,000 Scottish Herring boats caught 25% of the UK total.

Employed thousands of people in Dundee (25% of male workers and 67% of female workers).

Peak of the Herring boom in 1907 (21/2 million barrels of fish were exported.

Development of Jute Industry in Calcutta.

Main markets were Germany, Eastern Europe and Russia. September 1914, Scotland’s east coast ports are taken over by the Admiralty.

Demand for Jute soared i.e. need for sandbags.

• •

N. Sea is closed to fishing – restrictions are relaxed as war progressed.

War demand topped 6m sack in one month.

R.N chartered many vessels as coastal patrol/minesweepers.

Profits rocketed.

War years provided a temporary boom.

The Jute industry was also protected by a Government ban on Jute being processed in Calcutta. Industry went into a rapid decline.

Royal Navy Volunteer Reserve kept fishermen fishing until their skills were needed. (This avoided the men being swallowed up in the rush to volunteer) Industry did recover but the war had created problems such as: fuel cost rises, old export markets were gone, compensation for boats used during the war was seldom enough to repair them.

• •

Factories in Dundee needed new investment/repair and with Calcutta Jute back on the market after the ban– Jute prices fell.


gDurin eBefor

Farming •

In 1914 Britain relied heavily on imports for most of its food. (USA=Wheat, Australia=Meat and New Zealand=Butter)

WWI was a very profitable time for farmers and has/was seen as a period of relative prosperity.

Farming wages/salaries & income from farming increased significantly (150%). DORA and inflation for agricultural good changed farming practices and the Scottish landscape.

After

Agriculture had been doing quite well before the war.

There was more land cultivation – mostly cereal cultivation.

Oats showed a 25% increase in acreage.

• •

In 1918 sheep prices were 60% higher than in 1914. 1920s there was a decline in demand for seasonal labour in agriculture due to the increase in emigration from the Highlands.

Coal/Iron & Steel •

Prior to WWI – this period has seen a huge expansion of heavy industry and some new industries: shipbuilding & Steel making.

Coal mining went through huge developments before WWI and exported 60m tons of coal per year. Coal exports stopped due to the outbreak of war.

• •

WWI produced an enormous inflation in demand for the product of Scottish heavy industry. (All sectors experienced a period of huge expansion)

Coal mines were taken under the control of the Government which led to an increase in safety standards/higher wages and very little unrest.

The Coal industry received at short boom in the 1920s (although Scottish coal fields made a 5m loss – the price of coal per ton dropped from £4 to £1)

Post WWI the world economy slumped – the impact was magnified in Scotland due to its reliance on heavy industry.

1920s 100,000 men permanently unemployed in Scotland.


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