1. Journal #14
Why is the steam engine significant?

2. The Spread of Industrialization

3. But . . . Population growth Agricultural improvements
Continental Europe during the 18th C. had developed similarly to Britain in these ways:
Population growth
Agricultural improvements
Expanded industry
Growth of foreign trade
But . . .

4. Lack of good roads and problems with river transit
Continental Europe lagged behind Britain in its move toward industrialism because:
Lack of good roads and problems with river transit
Toll stations and customs barriers increased the cost and price of goods
Guild restrictions
Different business mentality:
Dislike of competition
High regard for family security
Unwillingness to take risks and thriftiness

5. AS well as . . .
Upheaval associated with wars of the French Revolution and Napoleonic eras
Continental system disrupted communication making it hard for the continent to keep up with new tech.
Wars caused problems with trade and created political and social instability
Because of these different circumstances, industrialization developed differently on the continent than in Britain.

6. Continental differences
Continental countries borrowed techniques and practices from Britain
Role of Government:
Paid for tech. ed. programs
Exempted foreign industrial equipment from import taxes
Financed some factories
Helped finance transportation improvements
Set up tariffs on imported goods

7. Joint-stock investment banks
Starting with less expensive machines, Britain had been able to industrialize largely through private capital
Advanced industrial machines required larger amounts of capital.
Joint-Stock Investment Banks:
Accepted savings from many depositors— developed large capital resources—invested on a large scale in railroads, mining, and heavy industry