Battle Cry of Freedom: The Civil War Era

by James M. McPherson

and second, the huge cotton exports of 1857–60, instead of proving the potency of King Cotton, resulted in toppling his throne. Even working overtime, British mills had not been able to turn all of this cotton into cloth. Surplus stocks of raw cotton as well as of finished cloth piled up in Lancashire warehouses. The South’s embargo thus turned out to be a blessing in disguise for textile manufacturers in 1861. Although the mills went on short time during the winter of 1861–62, the real reason for this was not the shortage of cotton but the satiated market for cloth. Inventories of raw cotton in Britain and France were higher in December 1861 than any previous December. The cotton famine from which the South expected so much did not really take hold until the summer of 1862. By then the Confederacy had scuttled its embargo and was trying desperately to export cotton through the tightening blockade to pay for imported supplies. By then, too, the stimulus of high prices had brought about an increase of cotton acreage in Egypt and India, which supplied most of Europe’s cotton imports for the next three years.