Canal Mania
Encyclopedia
Canal Mania is a term used to describe an intense period of canal
building in England
and Wales
between the 1790s and 1810s, and the speculative frenzy
that accompanied it in the early 1790s.
to Manchester
.
Despite the high cost of construction, the price of coal in Manchester fell by 50% shortly after it opened, and the financial success was attractive to investors.
The American War of Independence ended in 1783. A long run of good harvests resulted in an increase in disposable income and an increase in the number of people looking to invest capital for profit with little personal interest in the business. This resulted in an increase in less cautious speculation.
There was a dramatic rise in the number of schemes promoted. The number of canals authorised by Act of Parliament
in 1790 was one, but by 1793 it was twenty. The capital authorised in 1790 was £90,000 (£ as of ), but this had risen to £2,824,700 (£ as of ) by 1793.
Some of the canals authorised during this period went on to be financially profitable. However there were a number, including the Herefordshire and Gloucestershire Canal
, which never paid a dividend. Others, such as the Grand Western Canal
, were never completed.
Canal
Canals are man-made channels for water. There are two types of canal:#Waterways: navigable transportation canals used for carrying ships and boats shipping goods and conveying people, further subdivided into two kinds:...
building in England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
and Wales
Wales
Wales is a country that is part of the United Kingdom and the island of Great Britain, bordered by England to its east and the Atlantic Ocean and Irish Sea to its west. It has a population of three million, and a total area of 20,779 km²...
between the 1790s and 1810s, and the speculative frenzy
Stock market bubble
A stock market bubble is a type of economic bubble taking place in stock markets when market participants drive stock prices above their value in relation to some system of stock valuation....
that accompanied it in the early 1790s.
Background
The earliest canal building was undertaken as a local enterprise, usually by a merchants, manufacturers or mine owners needing to ship goods, such as the Duke of Bridgewater's canal built to ship coal from WorsleyWorsley
Worsley is a town in the metropolitan borough of the City of Salford, in Greater Manchester, England. It lies along the course of Worsley Brook, west of Manchester. The M60 motorway bisects the area....
to Manchester
Manchester
Manchester is a city and metropolitan borough in Greater Manchester, England. According to the Office for National Statistics, the 2010 mid-year population estimate for Manchester was 498,800. Manchester lies within one of the UK's largest metropolitan areas, the metropolitan county of Greater...
.
Despite the high cost of construction, the price of coal in Manchester fell by 50% shortly after it opened, and the financial success was attractive to investors.
The American War of Independence ended in 1783. A long run of good harvests resulted in an increase in disposable income and an increase in the number of people looking to invest capital for profit with little personal interest in the business. This resulted in an increase in less cautious speculation.
There was a dramatic rise in the number of schemes promoted. The number of canals authorised by Act of Parliament
Act of Parliament
An Act of Parliament is a statute enacted as primary legislation by a national or sub-national parliament. In the Republic of Ireland the term Act of the Oireachtas is used, and in the United States the term Act of Congress is used.In Commonwealth countries, the term is used both in a narrow...
in 1790 was one, but by 1793 it was twenty. The capital authorised in 1790 was £90,000 (£ as of ), but this had risen to £2,824,700 (£ as of ) by 1793.
Some of the canals authorised during this period went on to be financially profitable. However there were a number, including the Herefordshire and Gloucestershire Canal
Herefordshire and Gloucestershire Canal
The Herefordshire and Gloucestershire Canal is a canal in the west of England, which ran from Hereford, the county town of Herefordshire to Gloucester the county town of Gloucestershire, where it linked to the River Severn...
, which never paid a dividend. Others, such as the Grand Western Canal
Grand Western Canal
The Grand Western Canal ran between Taunton in Somerset and Tiverton in Devon in the United Kingdom. The canal had its origins in various plans, going back to 1796, to link the Bristol Channel and the English Channel by a canal, bypassing Lands End...
, were never completed.
See also
- Tulip maniaTulip maniaTulip mania or tulipomania was a period in the Dutch Golden Age during which contract prices for bulbs of the recently introduced tulip reached extraordinarily high levels and then suddenly collapsed...
- Railway ManiaRailway ManiaThe Railway Mania was an instance of speculative frenzy in Britain in the 1840s. It followed a common pattern: as the price of railway shares increased, more and more money was poured in by speculators, until the inevitable collapse...
- Economic bubbleEconomic bubbleAn economic bubble is "trade in high volumes at prices that are considerably at variance with intrinsic values"...
- Dotcom mania