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7 Crisis and rescue, 1853–67

Abstract

This chapter discusses the financial crisis of P&O during the period 1853–67 and how it came out of it. To win a contract in 1853, P&O reduced its favoured average monthly rate of 6s 2d to 4s 6d, which increasingly becoming unsustainable and affected its finances adversely. The imperial demands from the British and Indian Governments seriously distorted its finances, and its operating expenditure was growing at a faster rate than its operating income. However, the American Civil War helped by increasing the demand for raw cotton from India and Egypt. But P&O was also threatened with competition from the Compagnie des Services Maritimes des Messageries Impériales (MI) of France and the British India Steam Navigation Co., Ltd (BI). P&O however was admired for its services during the Abyssinian Expedition and finally with the help of Scudamore, it reached an agreement with the Government to work in partnership for 12 years.

Abstract

This chapter discusses the financial crisis of P&O during the period 1853–67 and how it came out of it. To win a contract in 1853, P&O reduced its favoured average monthly rate of 6s 2d to 4s 6d, which increasingly becoming unsustainable and affected its finances adversely. The imperial demands from the British and Indian Governments seriously distorted its finances, and its operating expenditure was growing at a faster rate than its operating income. However, the American Civil War helped by increasing the demand for raw cotton from India and Egypt. But P&O was also threatened with competition from the Compagnie des Services Maritimes des Messageries Impériales (MI) of France and the British India Steam Navigation Co., Ltd (BI). P&O however was admired for its services during the Abyssinian Expedition and finally with the help of Scudamore, it reached an agreement with the Government to work in partnership for 12 years.

Chapters in this book

  1. Front matter i
  2. Contents v
  3. List of tables vi
  4. Preface vii
  5. General editor's introduction viii
  6. Introduction 1
  7. 1 ‘A large capital and great arrangements’ 18
  8. 2 Full steam ahead 67
  9. 3 From India to China 86
  10. 4 Competition and the route to Australia, 1847–52 114
  11. 5 Views from the boardroom, 1840–55 143
  12. 6 Nuts, bolts and money, 1843–65 170
  13. 7 Crisis and rescue, 1853–67 191
  14. Afterword 225
  15. Bibliography 233
  16. Index 240
Flagships of imperialism
This chapter is in the book Flagships of imperialism
https://doi.org/10.7765/9781847791450.00013

Chapters in this book

  1. Front matter i
  2. Contents v
  3. List of tables vi
  4. Preface vii
  5. General editor's introduction viii
  6. Introduction 1
  7. 1 ‘A large capital and great arrangements’ 18
  8. 2 Full steam ahead 67
  9. 3 From India to China 86
  10. 4 Competition and the route to Australia, 1847–52 114
  11. 5 Views from the boardroom, 1840–55 143
  12. 6 Nuts, bolts and money, 1843–65 170
  13. 7 Crisis and rescue, 1853–67 191
  14. Afterword 225
  15. Bibliography 233
  16. Index 240
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