Sunday, December 15, 2013

AN ECONOMIC TOUR OF THE ENGLISH COUNTRYSIDE, STARRING DOWNTON ABBEY


Home wasn't built in a day. ~ Jane Sherwood Ace



Ah, the English countryside, I guess there's nothing really like it. Many Americans have gotten to know this form of greenery because of Downton Abbey, the successful BBC TV show that will commence its 4th season in the US 3 weeks from today.

I've been fascinated with the show not only because of the story and personalities, but because of the times in which it takes place – before and after the First World War. For the "great English country houses" the late 19th and early 20th century was a period of significant economic change and challenge.

Here's my 2-act tour of the life and times of English country houses (aka, estates), and the people who lived in them, like Downton Abbey, from an economic vantage point.

Act I starts with the house itself. Its name, Downton Abbey, implies that at one time in the distant past it was an abbey – a religious monastery, convent or priory. Henry VIII's Dissolution of the Monasteries in the early 16th century disbanded such Catholic land-holdings and appropriated their income and assets. As you may remember from a long-ago history class, he did this after Parliament made him the Supreme Head of the Church of England in 1534, thus separating the English church from the Catholic church and Papal authority. Many of these ecclesiastical properties were provided to friends of the King and converted into private homes. Downton Abbey may have been one of these places.

In real life, TV's Downton Abbey is actually Highclere Castle which is part of a 1,000 acre estate in the north-central part of Hampshire, in southern England. According to Lady Carnarvon, the mistress of the home, Highclere Castle has probably 200 or 300 rooms, 50 to 80 bedrooms and costs $1.5 million a year to maintain. She's also mentioned that if you know exactly how many rooms are in your home, you probably don't have a large house. Love the British, don't you?  

The underlying economics of Downton Abbey (DA) is historically founded on feudalism first begun in ancient times (probably by the 9th Century). This system continued for centuries in Europe and what is now the UK. Like other landed gentry, DA's Lord Grantham owned all the estate's land, including its villages and towns; a relatively small portion was his demesne. By the turn of the 11th century, an agricultural estate – which referred to virtually all estates in England since about 90% of the population lived and worked on the land at the time (the same percentage that lived on the land in the 18th and early 19th centuries) – depended on slave labor (aka, indentured servants and farmers).

In a very real sense, the landed gentry depended on slavery - for centuries. Estates were built around the authority of the lord of the manor/estate.[1] The Old English word "Weallas", or Welshman, was one of the English words for slave. The indentured farmers provided a portion of their produce as payment in kind and/or of their time to the lord. In return for these payments, the indentured, common folk received room and board from the lord. These indentured people included: the cottager, someone who farmed at least 5 acres of the lord's land, and paid for this by working for his lord every Monday in the year, as well as for 3 days a week in August, as the harvest approached; the shepherd, who could use 12 nights' dung (the invaluable natural fertilizer) at Christmas and also could keep the milk of his flock for the first 7 days after the equinox; and the ox-herd (the man who operated the ox that powered the plow – probably the most important person working the land), if he had his own cow he could pasture it with his lord's oxen and cows.

In more recent times such people have been called "tenant farmers." In 19th century England 90% of the land was tenanted; by the mid-20th century 60% remained tenanted.[2]

This formidable agriculturally-based economic system began to splinter in the late 18th and 19th centuries, when the Industrial Revolution was structurally altering England and subsequently the world. This revolution changed English (and most other western nations') agriculture, not just industry. My blog, The Agricultural Revolution, discuses how this revolution actually facilitated the Industrial Revolution. The movement of agricultural workers (aka, peasants) off the farms into the cities - and new factories - wasn't necessarily a disaster for agricultural estates or their owners because of increased farm productivity. Productivity gains were realized through mechanization. These benefits more than made up for the reduction in the mostly low-skilled agricultural work force.

By the early 20th century - when we are viewing DA - the technical scale of agricultural production had significantly grown. Smaller farms, presumably like those at DA, were increasingly inefficient, mainly due to their size and inability or unwillingness to utilize modern methods. In my mind, this is the principal source of tension between Lord Grantham and Matthew (RIP). Matthew knew that farms based on centuries-old tenancies and techniques that had existed at DA seemingly forever were no longer going to work because the farms were not large enough to support WWI-era agricultural methods and technology, like the then-new internal combustion engine tractor and its yield-improving accouterments.

Revenue that Lord Grantham received from the townspeople – probably a portion of each merchant's sales – was not likely to be sufficient to make up for the fiscal challenges he faced from his farms. Retail sales in England, including DA, were indirectly and adversely affected by the Bank Panic of 1907. This panic was principally a US calamity, due in no small part to the 1906 San Francisco earthquake. But the Bank of England had to raise its interest rates, partly in response to English insurance companies paying out so much to US policyholders, which landed financial blows to the British economy. Lastly, the British government began to change its fiscal policies to focus on generating more tax revenues from the considerable wealth accumulated in estates like DA. Taxes steadily increased during the 20th century and included land, income and probate taxes as well as death duties. Given his situation, it is likely that Lord Grantham would feel in complete accord with George Harrison's final lyric in Taxman, "And you're working for no one but me."

Coming soon, Act II will delve into events during the 19th and 20th centuries that further undermined the foundations of the tried-and-true British upper class, including Lord Grantham and Downton Abbey. No wonder he has such an enduring dour expression.



[1] See The Year 1000, What Life Was Like at the Turn of the First Millennium, Robert Lacey and Danny Danziger; Little, Brown & Co.,1999.
[2] According to the recently-published Global Slavery Index, 4,200 people remain in modern slavery in the UK today.

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