How did the American Civil War affect worldwide cotton prices?

 In History

On the eve of the Civil War, three-quarters of the world’s cotton came from the United States; 80% came from the South. A voluntary Confederate blockade, compounded by a Union blockade of all Southern ports, dramatically raised worldwide cotton prices by as much as 20%.

The sharp rise in prices left thousands of textile workers unemployed, hitting England and France particularly hard. This was the era before social safety nets, so unemployment frequently meant starvation.

The Confederates first tried withholding cotton from the world market, thinking that would convince foreign powers to take its side. However, by the time Richmond abandoned this failing strategy, the Union blockade was in full swing, resulting in a near-total drop in cotton exports.

The Civil War drove foreign powers to look for other sources of cotton, such as Egypt, India, and Brazil.

24 hours of jaw dropping stories.

Kasonde24 , your number one blog magazine