Source: https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-3-2-inter-war-trade-and-commerce [Revision notes](https://senecalearning.com/en-gb/revision-notes.md) › [A Level](https://senecalearning.com/en-gb/revision-notes/a-level.md) › [History](https://senecalearning.com/en-gb/revision-notes/a-level/history.md) › [AQA](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa.md) › Inter-War Trade & Commerce # Inter-War Trade & Commerce History: AQA A Level The British Empire, topic 3.3.2 ## Inter-War Trade and Commerce The 1920s were spent reconstructing the economic system which had existed before 1914. The 1930s were spent recovering from the Great Depression. ### Trade in the 1920s ![Trade in the 1920s](https://image-v2.cdn.app.senecalearning.com/2019-04/74a93f3b-15bc-4c6e-87b8-15c90abc20f0/trade.jpg) - In the 1920s, Britain sought to recreate the economic system which had existed before 1914. This involved fixed exchange rates between countries. - Britain got back onto the Gold Standard in 1925. ### Trade in the 1930s ![Trade in the 1930s](https://image-v2.cdn.app.senecalearning.com/courseImages/chemistry/10.3.1%20Using%20materials/gold-295936_640-min.jpg) - Amid the Great Depression at home, Britain tried to increase its exports to the Empire to make up for lower sales in Britain. Britain also began to import more from the Empire. - Harley (2004) states that imports from the British Empire were treated 'preferentially' by Britain. - Britain was forced to abandon the gold standard again in 1931. This increased exchange rate volatility and made trade between nations more difficult and more uncertain. ### British protectionism during the 1930s ![British protectionism during the 1930s](https://image-v2.cdn.app.senecalearning.com/2019-04/d738d38f-5ad5-4e96-9532-70ac5c94ef89/ottowa-conference.jpg) - Britain's ability to trade with the Empire in using the British Pound (sterling) was helpful for trade. Prices could be quoted in pounds and paid in pounds, which lowered the friction to trade. - The British Empire pursued a policy of imperial preference (a protectionist economic policy). - This imperial preference was reflected at the Ottawa Conference of 1932. Here, Britain imposed a 10% tariff (tax) on imports, except imports coming from Crown Colonies. ## British Rule in India During the Great Depression Historian Shashi Tharoor has prompted a re-write of British rule in India, advancing the argument that British rule was intensely damaging, destroying pre-existing industry and prestige. ### Shashi Tharoor, An Era of Darkness (2016) ![Shashi Tharoor, An Era of Darkness (2016)](https://image-v2.cdn.app.senecalearning.com/2019-07/095ca720-a35f-41fc-a6fb-e588be20495e/agriculture-4210651_1920.jpg) - 'The manipulation of currency, throughout a feature of the colonial enterprise, reached its worst during the Great Depression of 1929–30, when Indian farmers (like those in the North American prairies) grew their grain but discovered no one could afford to buy it.' - 'Agricultural prices collapsed, but British tax demands did not; and cruelly, the British decided to restrict India’s money supply, fearing that the devaluation of Indian currency would cause losses to the British from a corresponding decline in the sterling value of their assets in India.' ### Shashi Tharoor, An Era of Darkness (2016) cont. ![Shashi Tharoor, An Era of Darkness (2016) cont.](https://image-v2.cdn.app.senecalearning.com/2018-09/248e9686-5354-4427-a960-a73bc15cb7b2/currency-money-.jpg) - 'Britain insisted that the Indian rupee stay fixed at 1 shilling sixpence, and obliged the Indian government to take notes and coins out of circulation to keep the exchange rate high.' - 'The total amount of cash in circulation in the Indian economy fell from some 5 billion rupees in 1929 to 4 billion in 1930 and as low as 3 billion in 1938. Indians starved but their currency stayed high, and the value of British assets in India was protected.' ## Test yourself on Inter-War Trade & Commerce - What were the impacts of Britain abandoning the gold standard in 1931? - What word does Harley (2004) use to show how Britain treated imports from the Empire? - According to Tharoor, how did the British respond to agricultural prices collapsing in India during the Great Depression? [Practise this topic for free](https://app.senecalearning.com/classroom/course/4dd48474-7381-4a8b-8d47-f52ec6b25dfd/section/1310338d-2446-4e00-81c7-173b895dfe8e/session) - Previous topic: [3.3.1 Economic Impact of WW1](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-3-1-economic-impact-of-ww1.md) - Next topic: [3.3.3 Economic Impact of WW2](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-3-3-economic-impact-of-ww2.md) ## History: AQA A Level The British Empire contents ### 1 High Water Mark of the British Empire, 1857-1914 - 1.1 Development of Imperialism, 1857-1890 - [1.1.1 Empires over Time](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-1-1-empires-over-time.md) - [1.1.2 Key Questions About Empires](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-1-2-key-questions-about-empires.md) - [1.1.3 Expansion into Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-1-3-expansion-into-africa.md) - [1.1.4 History of Egypt](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-1-4-history-of-egypt.md) - [1.1.5 Control of Egypt](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-1-5-control-of-egypt.md) - [1.1.6 Control of Sudan](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-1-6-control-of-sudan.md) - 1.2 Imperial & Colonial Policy, 1857-1890 - [1.2.1 The British Empire & India](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-2-1-the-british-empire-and-india.md) - [1.2.2 The British Raj](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-2-2-the-british-raj.md) - [1.2.3 International Relations with other Powers](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-2-3-international-relations-with-other-powers.md) - [1.2.4 Scramble for Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-2-4-scramble-for-africa.md) - [1.2.5 The Informal Empire](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-2-5-the-informal-empire.md) - 1.3 Trade & Commerce, 1857-1890 - [1.3.1 Trade & Commerce in the Empire](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-3-1-trade-and-commerce-in-the-empire.md) - [1.3.2 Infrastructure of Trade & Commerce](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-3-2-infrastructure-of-trade-and-commerce.md) - [1.3.3 Products of Trade & Commerce](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-3-3-products-of-trade-and-commerce.md) - 1.4 Attitudes Towards the Empire, 1857-1890 - [1.4.1 Explorers](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-4-1-explorers.md) - [1.4.2 Missionaries](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-4-2-missionaries.md) - [1.4.3 Traders & Colonial Administrators](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-4-3-traders-and-colonial-administrators.md) - [1.4.4 Government Attitudes Towards Imperialism](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-4-4-government-attitudes-towards-imperialism.md) - 1.5 Relations with Indigenous Peoples, 1857-1890 - [1.5.1 Relations with India](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-5-1-relations-with-india.md) - [1.5.2 Relations with South Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-5-2-relations-with-south-africa.md) - [1.5.3 British-Boer Relations](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-5-3-british-boer-relations.md) ### 2 Imperial Consolidation & Liberal Rule, 1890-1914 - 2.1 Consolidation & Expansion in Africa, 1890-1914 - [2.1.1 Consolidation & Expansion into Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-1-1-consolidation-and-expansion-into-africa.md) - [2.1.2 Consolidation & Expansion in South Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-1-2-consolidation-and-expansion-in-south-africa.md) - [2.1.3 Historical Interpretations: Expansion into Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-1-3-historical-interpretations-expansion-into-africa.md) - 2.2 Imperial & Colonial Policy, 1890-1914 - [2.2.1 Policy in India](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-2-1-policy-in-india.md) - [2.2.2 Policy in Egypt](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-2-2-policy-in-egypt.md) - [2.2.3 Native Policy in Colonies](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-2-3-native-policy-in-colonies.md) - [2.2.4 International Relations with Other Powers](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-2-4-international-relations-with-other-powers.md) - 2.3 Trade & Commerce, 1890-1914 - [2.3.1 The Benefits of Trade](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-3-1-the-benefits-of-trade.md) - [2.3.2 Costs of the Empire](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-3-2-costs-of-the-empire.md) - [2.3.3 Debates Over Trade](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-3-3-debates-over-trade.md) - 2.4 Attitudes Towards the Empire, 1890-1914 - [2.4.1 Key Administrators - Chamberlain & Rhodes](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-4-1-key-administrators-chamberlain-and-rhodes.md) - [2.4.2 Key Administrators - Baring & Milner](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-4-2-key-administrators-baring-and-milner.md) - [2.4.3 Key Administrators - Curzon](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-4-3-key-administrators-curzon.md) - [2.4.4 Government Attitudes to the Empire](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-4-4-government-attitudes-to-the-empire.md) - [2.4.5 National Efficiency & the Boer War](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-4-5-national-efficiency-and-the-boer-war.md) - [2.4.6 Popular Attitudes Towards Imperialism](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-4-6-popular-attitudes-towards-imperialism.md) - 2.5 Relations with Indigenous Peoples, 1890-1914 - [2.5.1 Challenges in India](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-5-1-challenges-in-india.md) - [2.5.2 Challenges in Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-5-2-challenges-in-africa.md) - [2.5.3 Challenges in South Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-5-3-challenges-in-south-africa.md) - [2.5.4 Historical Interpretations of the Boer War](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-5-4-historical-interpretations-of-the-boer-war.md) - [2.5.5 Relations & Business with Iran](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-5-5-relations-and-business-with-iran.md) ### 3 Imperialism Challenged, 1914-1967 - 3.1 Expansion & Contraction of Empire, 1914-1947 - [3.1.1 Impact of WW1](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-1-1-impact-of-ww1.md) - [3.1.2 Palestine](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-1-2-palestine.md) - [3.1.3 Ireland & WW1](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-1-3-ireland-and-ww1.md) - [3.1.4 Impact of WW2 on the British Empire](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-1-4-impact-of-ww2-on-the-british-empire.md) - 3.2 Colonial Policy & Administration, 1914-1947 - [3.2.1 Administration in India & Palestine](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-2-1-administration-in-india-and-palestine.md) - [3.2.2 Administration in Iraq & the Dominions](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-2-2-administration-in-iraq-and-the-dominions.md) - [3.2.3 Imperial Defence](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-2-3-imperial-defence.md) - 3.3 Trade, Commerce & Economic Impact of War - [3.3.1 Economic Impact of WW1](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-3-1-economic-impact-of-ww1.md) - [3.3.2 Inter-War Trade & Commerce](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-3-2-inter-war-trade-and-commerce.md) - [3.3.3 Economic Impact of WW2](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-3-3-economic-impact-of-ww2.md) - 3.4 Attitudes Towards the Empire, 1890-1914 - [3.4.1 Colonial Administrators](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-4-1-colonial-administrators.md) - [3.4.2 Trusteeship](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-4-2-trusteeship.md) - [3.4.3 Gandhi](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-4-3-gandhi.md) - [3.4.4 Montagu, Haig & Linlithgow](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-4-4-montagu-haig-and-linlithgow.md) - [3.4.5 Cameron, Mitchell, Cohen & Furse - African Admins](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-4-5-cameron-mitchell-cohen-and-furse-african-admins.md) - [3.4.6 Imperialist Ideals](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-4-6-imperialist-ideals.md) - 3.5 Relations with Indigenous Peoples, 1914-1947 - [3.5.1 Ireland & India 1914-1947](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-5-1-ireland-and-india-1914-1947.md) - [3.5.2 The Middle East and Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-5-2-the-middle-east-and-africa.md) ### 4 The Wind of Change, 1947-1967 - 4.1 Decolonisation in Africa & Asia, 1947-1967 - [4.1.1 Reasons for Decolonisation](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-1-1-reasons-for-decolonisation.md) - [4.1.2 Decolonisation in East & West Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-1-2-decolonisation-in-east-and-west-africa.md) - [4.1.3 Decolonisation in Central & South Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-1-3-decolonisation-in-central-and-south-africa.md) - [4.1.4 Decolonisation in Asia](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-1-4-decolonisation-in-asia.md) - 4.2 Colonial Policy & Administration, 1947-1967 - [4.2.1 Relations & Business with Iran after WW2](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-2-1-relations-and-business-with-iran-after-ww2.md) - [4.2.2 The 'Winds of Change'](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-2-2-the-winds-of-change.md) - [4.2.3 The Suez Canal Crisis - 1956](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-2-3-the-suez-canal-crisis-1956.md) - [4.2.4 International Relations 1947-1967](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-2-4-international-relations-1947-1967.md) - 4.3 Trade & Commerce, 1947-1967 - [4.3.1 The Economic Impact of WW2](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-3-1-the-economic-impact-of-ww2.md) - 4.4 Attitudes Towards the Empire, 1947-1967 - [4.4.1 Colonial Administrators: Cohen & Arden-Clarke](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-4-1-colonial-administrators-cohen-and-arden-clarke.md) - [4.4.2 Local Leaders in the Independence Movement](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-4-2-local-leaders-in-the-independence-movement.md) - [4.4.3 Pan-Africanism in Nationalism](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-4-3-pan-africanism-in-nationalism.md) - 4.5 Post-Colonial Ties, 1947-1967 - [4.5.1 Windrush & Immigration](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-5-1-windrush-and-immigration.md) - [4.5.2 Commonwealth Immigrants Act](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-5-2-commonwealth-immigrants-act.md) - [4.5.3 Residual Impact of the Empire](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-5-3-residual-impact-of-the-empire.md) - 4.6 Relations with Indigenous Peoples, 1947-1967 - [4.6.1 Challenges to Colonial Rule Post 1947](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-6-1-challenges-to-colonial-rule-post-1947.md) - [4.6.2 Kenya & the Mau Mau Uprising](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-6-2-kenya-and-the-mau-mau-uprising.md) - [4.6.3 Nigeria & Rhodesia](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-6-3-nigeria-and-rhodesia.md)