page_title: Scotland in the modern era
section_title: Industrial Revolution
hierarchical_section_title: Scotland in the modern era / Late 18th century and 19th century / Industrial Revolution
caption_attribution_description: English: Francis Colliery Headgear This is all that remains of the former Francis Colliery (Dubie Pit)
context_page_description: Scotland in the modern era, from the end of the Jacobite risings and beginnings of industrialisation in the 18th century to the present day, has played a major part in the economic, military and political history of the United Kingdom, British Empire and Europe, while recurring issues over the status of Scotland, its status and identity have dominated political debate.
  Scotland made a major contribution to the intellectual life of Europe, particularly in the Enlightenment, producing major figures including the economist Adam Smith, philosophers Francis Hutcheson and David Hume, and scientists William Cullen, Joseph Black and James Hutton. In the 19th century major figures included James Watt, James Clerk Maxwell, Lord Kelvin and Sir Walter Scott. Scotland's economic contribution to the Empire and the industrial revolution included its banking system and the development of cotton, coal mining, shipbuilding and an extensive railway network.
context_section_description: During the Industrial Revolution, Scotland became one of the commercial and industrial centres of the British Empire. With tariffs with England now abolished, the potential for trade for Scottish merchants was considerable, especially with Colonial America. However, the economic benefits of union were very slow to appear, primarily because Scotland was too poor to exploit the opportunities of the greatly expanded free market. Scotland in 1750 was still a poor rural, agricultural society with a population of 1.3 million. Some progress was visible, such as the sales of linen and cattle to England, the cash flows from military service, and the tobacco trade that was dominated by Glasgow after 1740. The clippers belonging to the Glasgow Tobacco Lords were the fastest ships on the route to Virginia. Merchants who profited from the American trade began investing in leather, textiles, iron, coal, sugar, rope, sailcloth, glassworks, breweries, and soapworks, setting the foundations for the city's emergence as a leading industrial centre after 1815. The tobacco trade collapsed during the American Revolution (1776–83), when it sources were cut off by the British blockade of American ports. However, trade with the West Indies began to make up for the loss of the tobacco business, reflecting the extensive growth of the cotton industry, the British demand for sugar and the demand in the West Indies for herring and linen goods. During 1750–1815, 78 Glasgow merchants not only specialised in the importation of sugar, cotton, and rum from the West Indies, but diversified their interests by purchasing West Indian plantations, Scottish estates, or cotton mills. They were not to be self-perpetuating due to the hazards of the trade, the incident of bankruptcy, and the changing complexity of Glasgow's economy.
  Linen was Scotland's premier industry in the 18th century and formed the basis for the later cotton, jute, and woollen industries. Scottish industrial policy was made by the Board of Trustees for Fisheries and Manufactures in Scotland, which sought to build an economy complementary, not competitive, with England. Since England had woollens, this meant linen. Encouraged and subsidised by the Board of Trustees so it could compete with German products, merchant entrepreneurs became dominant in all stages of linen manufacturing and built up the market share of Scottish linens, especially in the American colonial market. The British Linen Company, established in 1746, was the largest firm in the Scottish linen industry in the 18th century, exporting linen to England and America. As a joint-stock company, it had the right to raise funds through the issue of promissory notes or bonds. With its bonds functioning as bank notes, the company gradually moved into the business of lending and discounting to other linen manufacturers, and in the early 1770s banking became its main activity. Renamed the British Linen Bank in 1906, it was one of Scotland's premier banks until it was bought out by the Bank of Scotland in 1969. It joined the established Scottish banks such as the Bank of Scotland (Edinburgh, 1695) and the Royal Bank of Scotland (Edinburgh, 1727). Glasgow would soon follow and Scotland had a flourishing financial system by the end of the century. There were over 400 branches, amounting to one office per 7000 people, double the level in England. The banks were more lightly regulated than those in England. Historians often emphasise that the flexibility and dynamism of the Scottish banking system contributed significantly to the rapid development of the economy in the 19th century.
  From about 1790 textiles became the most important industry in the west of Scotland, especially the spinning and weaving of cotton, which flourished until in 1861 the American Civil War cut off the supplies of raw cotton. The industry never recovered, but by that time Scotland had developed heavy industries based on its coal and iron resources. The invention of the hot blast for smelting iron (1828) revolutionised the Scottish iron industry. As a result, Scotland 
caption: The headgear at Francis Colliery, Fife
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