Mar

21

 Sobering article: "The Rise and Fall of the American Farmer"

Stefan Jovanovich writes: 

As Tennessee Williams' best line from Camino Real puts it, "you can file this under C - for crap".

"As early as the 1830s, American cash crops had arrived as a powerful force in international markets."

American grain exports had a brief honeymoon during the Crimean War. As soon as that ended, imports from Russian resumed; and the U.S. exports collapsed. Before the Civil War any surplus produced by the U.S. "farmer" (sic) went to the internal market; and that was slow to develop. Chicago did not develop its first trading exchange for grain until 1848; the second active market - in New York - only developed because of the demand from the Union armies and it waited until the second year of the war to open. The international trade in grain came after the war; Kansas City opened its exchange in 1869, Duluth in 1870 and then Minneapolis in 1881.

"By the time the Civil War began, US imports were so pivotal to European economic stability that Britain and France considered the possibility of sacrificing decades of moralistic opposition to slavery and openly intervening on behalf of the slaveholding confederacy. King Cotton was responsible for the existence of millions of European jobs at the time, especially in the industrial sector."

There were no "decades of moralistic" opposition to slavery in France; the French looked to the Confederacy to join them in turning Mexico into a latifundia. Britain's policy towards the U.S. was determined entirely by their calculations of how much of a threat the Union armies would be to Canada. If the Confederacy had a chance to win quickly, then support for them would - theoretically - help protect Canada. (Some wiser heads suggested that it might, in fact, do the opposite; that, having lost the South, the North would do its best to compensate by swallowing Ontario and Quebec and the plains provinces.

Cotton had been King, but the Confederates had terrible timing. The textile business in the Midlands suffered a collapse in 1861/2; merchants there were selling their raw cotton inventories to the New England mills, which were busy handling war orders - not just for uniforms but for gun cotton. Grant, who understood these things, was furious with his father and the Jews who had the monopoly on cotton broking in the South because they were selling the contraband to American buyers, not European ones. By the time textile manufacturing revived in Britain (and France and Germany) the American blockade had taken hold; and the Europeans had found other sources for their fiber - in Egypt and India.


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