1910 The slump is world wide and devastating.
The Whig government falls and is replaced by an activist Tory Government promising to reform the banks and stock markets and introduce compulsory health insurance. Some Commonwealth Members even propose trade barriers to protect the empire from outside competition.
Paris Festival awards the Great Crown to Newton Van Heijl for his work on Thionic power in Anchonium (OTL Uranium), controversially most of his work was done in the period 1891-1900. However the committee rules the significance of social and science work may not be realised for some time and may be entered in any festival so long as the person is alive.
The New word Party purges its political opponents and with the support of the Tsar begins the process of turning Russia into a one Party theocracy. The Patriarch declines in power until with the death of Tulikoff the Patriarchate is united with the post of Duma leader.
France and Holland form the Western Customs League and introduce protectionist legislation.
NOTE
What this world calls protectionist is mild tariff barriers compared to OTL, the dominant economic theory calls for free trade and the history of British industry supports that. In fact British industry is no longer particularly modern or efficient and most of British balance of payments comes from invisible earnings, banking, insurance, investments and shipping. The powerhouse of the British economy is now Newengland and the Cape. The best manufactures come from newly built factories in West Germany, Turkey and France with increasing competition from the AtlanticKingdom and Russia.
1911 West Germany and Scandinavia join the Western Customs League.
Alexis Bulgarkoff of St PetersburgUniversity publishes his paper on the Exothermic Thionic reactions of Anchonium showing Newton Van Heijl had falsified his results to conceal the warlike possibilities of Thionic power. In particular he shows that a concentrated block of Weighted Anchonium weighing less than a ton could be made to undergo catastrophic Thion production. This is a Thionic bomb, however most people concentrate on the ruin of Van Heijl’s scientific reputation and his loss of the Festival Great Crown. It is not until 1916 that the Government realise the implications and the Imperial Police Guard (Russian Secret police) place Bulgarkoff under very luxurious arrest in Siberia.
The British Government follows the Cape and introduces a national insurance scheme old age pensions, unemployment relief are introduced in addition to health insurance.
Jules Pierre produces his famous Feyfolk collection. This includes padded breasts and hips for women and the reintroduction of the Codpiece for men. Combined with liberal use of cosmetics and hair dyes, manufactured with strong patterns and bright colours this is a slap in the face for conventional morality.
The Anti-Corset league is banned in Russia.
1912 Italy and Turkey join the Western Customs League.
The British Electric company declares bankruptcy and after an acrimonious fight in Parliament the Government takes over. Shareholders get a Newton in the Pound. Soon after the Great Northern Electric Company declares total debts of Sixteen Million pounds more than the value of their assets the Government seizes the company and creates the Greater British Semaphore and Electric Company. At the same time the Railway companies amalgamate into three under threat of seizure.
From this time British home manufactures go into a terminal decline. High tech industry remains in Britain including Stutt encoders (OTL computers), armaments, chemical industry and shipbuilding. Other industries, textiles, steel, electrics and drugs have moved to cheaper workforces with higher productivity. In particular New England, the Cape, West Germany and France for heavy engineering, Turkey and China for textiles while Virginia and the AtlanticKingdom dominate the drug industry. (this includes the OTL tobacco, opium and marijuana industry as well OTL medical drugs) Italy, Canada and France dominate the cosmetics industry