Two important Belgian banks pioneered a new direction in the 1830s.
They were given permission by the government to establish themselves as corporations.
If the bank went bankrupt, stockholders could only lose their investments in the bank's common stock, and they wouldn't have to pay for other property losses.
The Belgian banks had limited liability that attracted investors.
They were able to mobilize resources for investment and promoted industrial development.
In the 1850s and 1860s, corporate banks became important in France and Germany.
Many railroads and companies working in heavy industry were created by corporate banks and are now limited liability corporations.
Between 1850 and the financial crash of 1873, the combined efforts of skilled workers, entrepreneurs, governments, and industrial banks meshed successfully.
Rail networks were completed in western and much of central Europe, and the leading countries mastered the industrial technologies that had first been developed in Great Britain.
Britain was still Europe's most industrial nation in the early 1870s, but a few countries were closing the gap that had been opened by the Industrial Revolution.
Prior to the 1870s, the Industrial Revolution did not extend outside of Europe, with the exception of the United States and Japan.
The technologies and methods of production that proved successful in Britain did not lead to a transition to an industrial economy in many countries.
In the first decades of the 19th century, steamships and a railroad were brought to Russia.
Cotton factories were established using imported British machines.
These advances did not lead to industrialization.
Russia confirmed its role as a supplier of raw materials to the West.
In the first decades of the 19th century, Egypt began an ambitious program of modernization, which included the use of imported British technology and experts in textile manufacture and other industries.
Like Russia, Egypt is exporting sugar and cotton to European markets.
There are many examples of faltering efforts at industrialization around the world.
European governments acted to maintain colonial markets as sources of their own products, rather than encouraging the spread of industrialization, where they maintained direct or indirect control.
Poor textile workers in India lost their jobs because they couldn't compete with British cottons.
The arrival of railroads in India in the mid-nineteenth century served the purpose of agricultural development.
The wars of independence distracted Latin American countries from their economic concerns.
In Britain, industrial development brought new social relations and problems between capital and labor.
There was a new group of factory owners.
The wealth and size of the middle class was strengthened by these men and women and their families.
The demands of modern industry created a larger group of factory workers.
The growth of new occupational groups in industry led to the development of a new overarching interpretation of social relationships.
The paradigm argued that individuals were members of classes that had conflicting interests.
The comfortable, educated "public" of the teenth century began to see itself as the middle class, and the people began to transform themselves into the modern working class.
It appealed to many because it seemed to explain what was happening, if this paradigm was more of a deceptive simplification than a fundamental truth.
Most early industrialists brought their families and friends with them for labor and capital.
Many were from the established merchant family.
Others were skilled workers.
The members of ethnic and religious groups who had suffered from discrimina tion in the traditional occupations jumped at the chance.
Protestants and Jews banking in Catholic France was important in Britain.
Opportunities in dustries declined as factories and firms grew larger.
It was harder for a gifted mechanic to start a smal enterprise and become a wealthy manufacturer.
The new concepts of social class that became common by 1850 can be seen in this midcentury painting.
There are different types of work shown.
They were aware that industrial development had widened the gap between themselves and their workers.
The wives and daughters of successful businessmen found less opportunities in Europe's increasingly complex business world.
Middle-class women were valued more for their ladylike gentility than for their contributions to a family-owned enterprise.
Middle-class ladies should focus on their roles as wife and mother according to writers, economists, and politicians.
The Industrial Revolution had its critics.
Workers attacked factories in romantic poets.
The new machines that protested against the hard life of the London poor were smashed by the early factories.
Problems in the factories and new towns were written about by doctors and reformers.