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Omowale 0

Cushion Yes or Cushion Not:


The Economic Depression in Europe 1929 1939
Mr. Omowale

Omowale 1
Cushion Yes or Cushion Not:
The Economic Depression in Europe 1929 - 1939
PROJECT OVERVIEW AND SIGNIFICANCE
In this project I would like to research the effects that the 1929 Great
Depression had on European economic and political hegemony. My focus is directed to
show how the colonial and overseas market areas allowed Europe to survive the worst
economic crisis that the world has ever seen. The effects of the Great Depression of the
1930s, known as the Great Slump, more so in the United Kingdom, created a
tsunami type effect in the world market and in Europe industrial economic trade. Its
severe collapse of economies of many leading producers led to the contraction of world
trade, financial panic and protectionism. Despite the notion of the City of London,
the British Empire, the largest colonial empire, proclaiming to be the Mecca of the
Anglo-Saxon race [and] the magnet which attracts all the nations of the Earth,1 I
argue that this only a possible truth due to European control of colonization and trade
expansion throughout the world during the 15th and 16th2, 17th, 18th 3, 19th4 and 20th5
century.
By documenting the multiple accounts of Europes dependency on colonial
assets and anew profits, I will demonstrate how the Atlantic World gave birth to

Kline, M. Franklin. Official Guide for Shippers and Travellers to the Principal Ports of the World.
(Osaka Mercantile Steamship Company, Ltd, 1922-23). p. 792.
2
Harrisse, Henry. The Diplomatic History of America, The First Chapter, 1452-1493-1494. Journal of
the American Geographical Society of New York, Vol. 30, No. 2 (1898), pp. 170-171.
3
Richardson, David. The Slave Trade, Sugar, and British Economic Growth, 1748-1776. Journal of
Interdisciplinary History, Vol. 17, No. 4, Caribbean Slavery and British Capitalism. (Spring,
1987), p. 739-769.
4
Jones, Clarence F. The Evolution of Brazilian Commerce. Economic Geography, Vol. 2, No. 4 (Oct.,
1926), pp. 550-574
5
Hochschild, Adam. King Leopold's Ghost: A Story of Greed, Terror, and Heroism in Colonial Africa
Boston: Mariner Books, 1999

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capitalism, industrialization6 and its dependency of the Atlantic World trade. In doing
so, my study reveals several European figures and leaders who demand the need of
assets or control of colonized areas, the adoption of higher tariffs while trying to
manage social change in their country during this economic crisis.
To thoroughly understand my project, I want to address several questions to
examine what exactly happened as a result of the Great Depression in Europe. First, I
would like to address the question of what effects did the Great Depression have on the
Atlantic world trade associated with the Americas and or its control of power over
colonial area in Africa and India? The wealth of Europe mainly relied on the trade and
the profit of exports from areas once colonized in the Atlantic World. These countries
today have their independence, but were controlled by the monetary structure of
capitalism and indirect rule.
Capitalism in this case mostly refers to an economic system in which the means
of production are mostly privately owned and operated for profit. Within Europe,
capitalism was established between the 16th and 19th centuries as the dominant
economic system as feudalism declined. This economic system is and was that of
Europe during the Depression that determined the distribution, production and pricing
of goods and services that controlled the world trade market. Consequently, within the
European market of trade, the Depression of 1929 brought on a need for reevaluation
of capitalism, monies and overseas markets.
My next question focuses on the explanation of new tariffs, social services and
bank services over foreign trade markets. These were put in place as important
6

Richardson, David. The Slave Trade, Sugar, and British Economic Growth, 1748-1776. Journal of
Interdisciplinary History, Vol. 17, No. 4, Caribbean Slavery and British Capitalism. (Spring,
1987), p. 739-769. p. 740.

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economic strategies to offset the devastation caused by the Great Depression and to
secure vital overseas and colonial assets. The decade from 1929 to 1939 could easily be
referenced as the barter of the Dark Ages7 to doomsday as the years showed the
impact in Europes economy, increased taxation and societal unrest. As early as 1929,
European export trade was deeply affected. The astronomical decrease in many
production prices were the results. The problems also seemed to affect the European
countries that controlled or profited from other countries trade markets.
By investigating private bank institutions, I would evaluate and analyze the
Bank of England. Was it the sole savior of Europe? Did the Bank of England provide a
cushion for Europe and it private shareholders? Since 1694, its existence has always
been a source of protectionism. Its first three years involved the stock market and
monies of gold were the main source of trade.8
Was the Great Depression the reason or excuse for a social rebellion in Europe
and India that lead to a world war? If not, what where the turning points European
powers in these countries during this economic upheaval? Hopefully, both questions
will be answered and determined and recognized as a turning point in European powers
of the 1930s. Germany serves as a prominent key figure in both questions that threaten
the possibly change of world powers.
In my observation, I also want to look at the emphasis in places where Europe
had indirect rule that supported a countrys government. Did the effects of the
Depression change Europes economic stronghold in areas such as South and West
Africa? Was Africa an important asset to Europe during the Great Depression? Within
7

James, Robert R. Winston S. Churchill His Complete Speeches 1897-1963:Volume V 1928-1935.


(New York: Chelsea House, 1974), p.5130.
8
Rogers, Thorold. The First Nine Years of the Bank of England. (Oxford: Clarendon Press, 1887) p.171.

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the international trade market and from the 15th century, Europe assumed the power to
make decisions within the international trading system. An excellent illustration of that
is the fact that the so-called international law which governed the conduct of nations
on the high seas was nothing else but European law.9 Everything from gold, rubber,
wine, etc, that Europe hegemony controlled in Africa seemed necessary for recovery
and survival. But was it really?
If the effect of the Great Depression were to be analyzed in Europe, it should be
placed in its historical setting. While some might not agree to its place in the world, it
position has a foundation in the Atlantic World History theme. By the end of the
1920s, Europes international market had dominion that included the Caribbean, Latin
America and West Africa. All were evident area that created a structure for the most
advantageous trade outcome.
It is important to view the Great Depression effects as not cataclysmic, but as
an unprecedented severity throughout the domain of Europe. Most countries in Europe
were heavily dependent on exports and imports which created institutional power of
banks such as the Bank of France, England, Belgium, Swiss, and Netherlands. In fact
during this time of crisis, European economic hegemony, more so the Great Britain,
anticipated the place for capital in being concentrated and used in any place of the
world. It is complicated to discuss the precise limits of this sweeping statement, since it
eludes ardent statistical investigation and evidence. However, I will show Europes
economic position during the depression years of 1920 thru 1940. By illuminating my

Rodney, Walter. How Europe Underdeveloped Africa. (London: Bogle-Louverture publications, 1972),
p.86.

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questions, I will demonstrate how the European economy survived the economic crisis
that was felt throughout the international trade market due to overseas assets.

LITERATURE REVIEW

The scholarship involved with the Great Depression of Europe is associated


with several areas; economics, unemployment, politics and trade. In the end,
positioning the understanding of the Great Depression in the Atlantic World is a
concept that can be elusive. It difficulties are etched in the history of exchange between
people, control and power. However, my resources will help organize and comprehend
this research.
My first supporting resources are provided by John Stevenson and Chris Cook.
They tackle the idea of British unemployment as largely regional. They idea of the
British being more than appeasement also takes on the formation during the Slump, but
generates an affluence of the 1950s. Both authors provide useful information of the
social and political ream that goes against Frank A.Warrens the idea for red decade.
The problem of unemployment and the distressed areas was only a part of the problem.
Notably, they show that there is no connection with unemployment and revolutionary
political activity during the worst years of the Slump.
Peijian Shen, ties the interwar period to the Great Depression. This books
theme suggests that WWII was just a presumption of WWI, The Versailles Treaty did
not remove, but only temporarily froze, the problems of the modern world.10 Belinda
Davis gives way to Shen as she lays out her details that suggest that Central Europes
10

Shen, Peijian. The Age of Appeasement: The Evolution of British Foreign Policy in the 1930s. (Great
Britain: Sutton Publishing Limited: 1999), p. ix

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industrial production had not recovered from World War I until 1927. Martin Pugh, a
well respected, diligent and honest scholar, maintains that the fascist movement was far
from being simply an alien movement. This new research is one that had roots in
British thinking well before 1914 and materialized partly in response to the First World
War. There are accounts of many men and women obliged to repudiate their
conservative family traditions to join the Labour Party, but why? This version of
Blackshirt history comes with the added feature of Lloyd Georges Liberal Yellow
Book, Britains Industrial Future, which gave a detailed account of Keynesian strategy
designed to stimulate Britains economy.
In addition, Paul N. Hehn provided an account of German economic and
financial policy and its design upon the diplomatic and political relations that explains
the struggle for hegemony. This work eventually leads to World War II, but also
involves the disarray of international economic systems which leads to the trade wars
of the 1930s. Charles Reginald Schiller Harris offers a perfect picture of economic
relations of dominant states of the world market as well. Don Taylor accounts for the
unequal trade that favored and enriched the core industrialized countries exporting
manufactured commodities, the draining off the natural resources of the colonial and
semi-colonial countries exporting primary materials. All three historians combine
economics, historical events, diplomatic agreements, financial and natural resource
situation facing European countries economic situation. Overall, they are al supported
by the works of pioneer Patricia Clavin.
Paul Adelman, a well known author of Labour Party history, provides me with
a peculiar understanding of British politics in the 1930s and 1940s. In the form of a

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textbook with cartoons and small paragraph sections, this resource would be only
useful for a middle or high school student research paper. Although Adelman has
numerous of that formalize questions such as why was the Labour Party formed, and
why was it able to grow?, I would not cite from this resource due to its vague and
ambiguous selection of information. Robert Blakes resource on the other hand, would
be a better source due to its political history theme.
Blake uses the themes of party politics and the history of war which are
essential to explaining Britains imperial power. However, his acknowledgement
would serve my research better if the book has some statistical charts and tables to
solidify hard core million or so victims of structural unemployment.11 Richard
Shannon also outlines Britains world power that is spread all over the globe. The
politics of Europes economics situation is echoed by E.J. Arnett and James PopeHennessy. Hennessy adds more insight with the inclusion of the parliament view and
thoughts of the late Queen Mary during the Depression years. His assessment of her
diary collection, kept from 1891 to the year of here death, 1953, were very useful as to
see the thoughts inside of the British monarchy. Although the Queen was neither
interested nor acquainted with State affairs, her daily notes show how it deeply affected
the King George V. Hennessy also showed that other personal crises influenced the
kings outcome of making decisions in the States economic crisis. Unfortunately,
Hennessy leaves out a part of the diary in which Great Britain makes a recovery from
the economic crisis. The diary notes from 22 October 1932 to August 1934 are not
presented.

11

Blake, Robert. The Decline of Power: 1915 1964. (Great Britain: Granada Publishing, 1985).

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By looking at another prominent person of Europe, Robert Rhodes James in
The Speeches of Winston Churchill provided me with the different mood and an idea of
the parliament in Europe versus Queen Mary. As to note the threat of abandonment of
Mr. Baldwin, once Britains Prime Minister by majority of the British Parliament due
the troubles in trade and unemployment, Churchill speaks on the entire reason and
solution to unemployment of Great Britain. James combines 66 years of Winston S.
Churchills speeches that show the decline of the British Parliament and the remedies
they put in place to survive the economic crisis. But how does Great Britain survive?
This question can not be answered by James due to Churchills speeches ceasing to
involve any issues that associate with unemployment after 1933. But this void is filled
by Super and Arnett as they illuminate protected the market areas of Africa that are
French speaking.
Mark Pottle provided me with the Violet Bonham Carter diaries that were very
useless due to the fact that there was not a single entry for the 1930s. Although this
was a period great activity, her accounts only came in the form of speeches that
supported Winston Churchills anti-appeasement movement. Her fears focused on the
Reich chancellor, Adolf Hitler and his principal target, the communist and the Jews.
P.J. Cain and A.G. Hopkins presents a continental perspective which acknowledges the
crisis and reconstruction of Great Depression in Europe from the beginning stages of
1914 to 1990. They show how the global economic change led to the independence of
colonial areas such as the African Gold Coast, Jamaica, and Nigeria due to the erosion
of imperial position. As a result, industrialism is created by informal influence of that

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leads to industrialism in Latin America, the Middle East and the Far East. This position
is also supported by E.C. Snow.
Cain and Hopkins appear to center their attention on the economic history
which is very useful. Most importantly they provided charts of imports percentages and
net exports form 1896 to 1948. They stated and showed numerous of examples of
Americas [the] transatlantic flow [that] stimulated the demand for protectionism
which created a sense of Americanization of the world.12 There were also numerous of
articles that I consider useful in supporting my argument.
Authors such as Dos Santos and Hallewell provide a summary of how
abolishing slavery led to more European control and how whitening Brazil attracted
European elites. E. Castelot evades more to the battle for hegemony seen in an early
example conflict in the Brussels Sugar Conference of 1903. E. Cozens Cooke
continues with the Brussels Sugar Conference of 1907 of European states as they
checked the overproduction to possibly eliminate bounties and surtaxes. But idea of
overproduction of minerals is expressed by H. Foster Bain as he expresses that
minerals as the underlying the reason for credit and interchange.13 C. H. Lee
examine the situation of the primary producers and the main effects of the depression
upon trade, productions, prices and investment. Overwhelmingly, Lee shows how
European countries influenced the national income, employment, consumption and
their response of the primary producing market areas in the 1930s.

12

Cain, Hopkins, P.J. British Imperialism: Crisis and Deconstruction 1914-1990. (London: Longman
Group UK Limited: 1993), p. 72.
13
Bain, H. Foster. Mineral Resources and Their Effect on International Relations. Journal of the Royal
Institute of International Affairs, Vol. 9, No. 5 (Sep., 1930), 664-679).

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In addition, Ralph A. Austen equivocally suggests that historians can learn a
great deal from the term economics and the European enterprise by observing the
effects of the past and present partitions of Africa. Christopher Chamberlain continues
this course by promoting and economic approach of the examination of the West
African trade in non-slave commodities that have political implication of legitimate
commerce. The political-economic conditions and the underdevelopment of Africa is
extremely important in content as well. Here the term legitimate becomes a factor
and the reason for my argument posed by newspaper resources that I also use.
The New York Times and Arleen Keylin show the pain and suffering in Europe
that elude to international affairs. Snow offers my final support by stating that export
trade and internal trade are determined by political frontiers.14 If these political
frontiers are non existence, power and control diminishes.
Consequences of economic depression did force acceleration of change, the
expansion and centralization of state power, domestic industrialization, and huge
growth of central bureaucracy in Europe. There was also a new social category of
social conflict between the oligarchy, the middle and the working classes.
Nevertheless, my archival resources would help to better explain Europes economic
situation before the Great Depression. Additionally, personal documents could
determine what were the reasons for the social and political factors of the 1920s and
1930s.

14

Snow, E.C. The Relative Importance of Export Trade. Journal of the Royal Statistical Society, Vol.
94, No. 3. (1931), 373 431.

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PROPOSED PLAN OF RESEARCH
In order to expand my study to the before and after effects of the Great
Depression of 1929 associated with Europe, I would suggest investigating the national
archives of the United Kingdom. Several archive collections appear to have an
abundance of information that would support my thesis. If the opportunity presents
itself, I would like to focus my research on the Gaitskell Papers which involves Hugh
Todd Naylor Gaitskell, 1906-1963, a well known politician who lived before, during
and after the economic crisis. The Tom Mann papers also offers insight about 18561941 involving a trade unionist name Tom. This collection includes pictures,
newspapers, articles and include snapshots of antifascists in Spain.
Another source that I would use would be thesis and resources of Martin Frost.
His thesis titled Ideology and Economics: The German economic recovery: To what
degree did the ideology of Nazism shape the German economic recovery in the 1930's?
would add more explanation to the effects of the ideologies, Adolf Hitler and the
economic hegemony positions of Germany. Additionally, a more extensive insight
would come from the Museum of English Rural Life that covers the period of 1850
1971 and consists of trade literature.
The Museum English Rural life collection is rich in photographs, drawings,
company records, analysis book of Alfred Fowler, a financial director of the firm, notes
and albums of the John Fowler & Co. and works of Marshall-Fowler Ltd. in 1948. This
archive also includes documents of the John Fowler and Co (Leeds) Ltd, agricultural
machinery manufacturer legal records of companies and businesses. Along with several
financial statements, it contains company records well over 7,000 engineering
drawings and miscellaneous prints. The main series, dating to 1890 1935, include

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originals, tracings and prints on a variety of grounds, photograph negatives and glass
prints. Ultimately, the documents centralize on the partnership records, limited
company records, external agreements, real estate records and patenting records.
In key documents, several items summarized the economic status that included
England, France, Spain, Italy, Germany, Czechoslovakia, Hungary, India, East Indies,
South Africa, Australia and New Zealand during the 1930s. These combined materials
will enrich my research by magnifying the economic status of several countries closely
associated with recovery of Europes economic crisis. More less they would better
explain the economic recovery in several examples. For instance, the annual balance
sheets of Prague showed bank arrangements in 1929 -1931. These years bridged with
the Budapests annual balance sheets of 1926-1935 describe the economys influence
on economic hegemony and control of overseas firms. By highlighting the economic
issues of certain European countries, my study will illuminate the assets that European
countries could afford to lose and still maintain economic hegemony. As well as their
actual loses and their close connection with businesses and banks.
Overall, the project will contribute to several areas of my study that includes
economic history, European history and involve how certain socialist groups took
advantage of this Great Depression economic crisis situation to flourish their
movement and ideology. As offering the theme of the Atlantic World History, trade
begets trade and becomes almost impossible to live with out in Europe. By 1929 the
desire for trade offered the foundation for capitalism that had spread to almost all
corners of the international market world. But the consequences of gluttony and

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overplus15 brought on the catastrophe that changed the hands of economic and political
hegemony for years to come.

15

Elliot, Walter. The Twentieth-Century Economic State: With Special Reference to the British Empire.
Journal of Royal Institute of International Affairs, Vol. 9, No. 3 (May, 1930), p. 328.

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Bibliography
Primary Source Collections
National Archives of the United Kingdom (http://www.nationalarchives.gov.uk)
Gaitskell Papers Collection
John Fowler and Co (Leeds) Ltd archives
Museum of Rural Life Collection
Tom Mann Papers Collection
Frost, Martin Ideology and Economics: The German economic recovery: To what
degree did the ideology of Nazism shape the German economic recovery in the
1930's.

Published Primary Sources


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Process in Political and Cultural Formation. (Jan., 2002): 61-82.
Austen, Ralph A. Economic History. African Studies Review, Vol. 14, No. 3 (Dec.
1971): 425 438.
Bain, H. Foster. Mineral Resources and Their Effect on International Relations.
Journal of the Royal Institute of International Affairs, Vol. 9, No. 5 (Sep.,
1930): 664-679.
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Cain, Hopkins, P.J. British Imperialism: Crisis and Deconstruction 1914-1990.
(London: Longman Group UK Limited: 1993), p. 72.

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Castelot, E. The Brussels Sugar Conference. The Economic Journal Vol. 12, No. 46
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Eichelgrun, G. Income-Tax in British Colonies. The Economic Journal, (March
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British Empire. Journal of Royal Institute of International Affairs, Vol. 9, No. 3
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Germans to skimp on a meal a month and feed the Homeless. New York Times, 14
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Harrisse, Henry. The Diplomatic History of America, The First Chapter, 1452-14931494. Journal of the American Geographical Society of New York, Vol. 30, No.
2 (1898), pp. 170-171.
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Cass and Company Limited, 1978.
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Colonial Africa. Boston: Mariner Books, 1999
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Jones, Clarence F. The Evolution of Brazilian Commerce. Economic Geography, Vol.


2, No. 4 (Oct., 1926): 550-574

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and British Capitalism. (Spring, 1987): 739-769.

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Rodney, Walter. How Europe Underdeveloped Africa. London: Bogle-Louverture


publications, 1972.
Rogers, James. The First Nine Years of the Bank of England. Oxford: Clarendon Press,
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Snow, E.C. The Relative Importance of Export Trade. Journal of the Royal Statistical
Society, Vol. 94, No. 3. (1931), 373 431.
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.

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