Great Britain's Cotton Textile Industry, 1900-1913
The Myth of the CorporateEconomy: Great Britain's Cotton Textile Industry, 1900-1913 Timothy Leunig1 DepartmentofEconomics, Nuffeld College UniversityofOxy½rd It is never difficult to defend an interest in the Lancashire cotton industry,for it has a uniqueplace in the historyof England'sindusthai revolution.Rostow gives it the ultimateaccolade: "the original leading sector in the first take-off," and to Crafts and Harley, "the really big issue [in determiningthe rate of growthduring the industrial revolution] is undoubtedly the weightingof cottonrather than the correctdistribution of value added weightsamong the other sectors"[Rostow, 1990, p. 53; Craftsand Harley, 1992, p. 706]. Cotton overtook wool to become Britain's single most importantsource of incomeby 1810,and retained this position until the end of the nineteenthcentury. At its 1913peak, the industryemployed over half a millionpeople and consumed over 2.1 billionpounds of raw cotton[Robson, 1957,pp. 331, 333; Deaneand Cole, 1969,p. 163;Sandberg, 1981, p. 114; Mitchelland Deane, 1962, p. 186-8]. The industry'sexport performance was more remarkable still. It became the nation'sbiggest exporter during the NapoleonicWars, a positionit wasto retainfor 125 years;in 1830 it even exceededall other exportscombined [Deaneand Cole, 1969, p. 31].In 1880over 80% of theworld's cotton exports camefrom Britain,and mill ownersboasted that theymet the needsof the home marketbefore breakfast and devotedthe rest of the day to exports [Robson,1957, p. 4; Aspin,1981, p. 3]. At its peakin 1913,Britain exported over7 billionyards of cloth,approximately equivalent to a shirtand pair of trousersfor everyman, woman, and child in theworld [Sandberg, 1974, p. 4].
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