innovative and up-to-date approaches to industrial growth. The textile
industry embraced the power loom and discarded the last vestiges of
the hand loom. In the area of iron production, mineral rather than veg-
etable fuel became standard. The steam engine was the essential source
of power technology and mechanization and had spread its tentacles to
a growing number of industrial enterprises. In addition, these develop-
ments provided the foundation for increasing innovation and the
appearance of new inventions that stimulated further expansion. The
results were nothing less than spectacular. Railroad construction pro-
ceeded at a dizzying pace. More than 50,000 miles of new lines
appeared from 1850 to 1870 in contrast to just 15,000 miles of con-
struction in the 1840s. France constructed 9,300 miles in this era,
while the German states added 7500 miles. Coal output from the Ruhr
valley increased from 1.6 million tons in 1850 to 11.8 million tons in
1869 and overall German coal production increased from 4.2 million
tons to 23.3 million tons in the same time period, while French output
also rose dramatically from 4.4 million tons to 13.3 million tons.
18
Only in the cotton textile industry did Great Britain fully ward off
the growing capacity of the continent. The number of spindles in oper-
ation demonstrates that advantage. In 1834 the number in millions
was as follows: Great Britain, 10; the United States, 1.4; France, 2.5;
Germany, .6; Belgium, .2; in 1861, Great Britain, 31; the United States,
11.5; France, 5.5; Germany, 2.2; Belgium, .6; and in 1867 Great Britain,
55.5; the United States, 30.5; France, 7.4; Germany, 10.9; Belgium, 1.4.
As late as 1913 Great Britain boasted three fifths of all cotton spindles
in operation. Thus, not only did Great Britain maintain an edge in
sheer quantity of spindles, but its power looms generally ran at a faster
pace and had less waste than the counterparts on the continent.
19
The obvious benefits arising from industrial expansion eventually
broke down many of the social biases and traditional barriers that had
been imposed by governments or lingered in the minds of the people.
Changes in business, investment, and legal practices, as well as
improving economies, also stimulated positive change. In response to
a growing amount of bullion, the paper money supply increased three
times in France and nine times in the German states and resulted in a
fall in interest rates from 4% to 2%. Thus, additional capital and credit
became more available for joint-stock ventures and other investment
opportunities to funnel money into industrial enterprises. Correspond-
ingly, new business enterprises arose as political authorities, albeit
slowly at times, relaxed or modified controls on the formation of com-
panies. Great Britain took the first steps in the 1850s, and France and
the German states followed in the 1860s and 1870s. Prussia was a
prime example of how loosening restrictions led to the formation of
131
The Industrial Revolution on the Continent in the Late 19th Century