Union Cotton Shortage

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Brev. Brig. Gen'l
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Aug 25, 2012
The Southern secession caused a cotton shortage in the North.

"Contrary to expectations, the occupation of New Orleans had so far failed to produce anything line the amount of cotton anticipated by the Northern mills. (Thomas H. O'Connor, Lincoln and the Cotton Trade, Civil War History, March 1961, p p.23.)

O'Connor States that of the 4,500,000 spindles in the Northeast, 3,000,000 had ceased operations by June of 1862.

This caused a shortage of cotton textiles crossed the Northern states. President Lincoln was besieged with request for prominent businessmen for special consideration in obtaining Southern cotton for both military and civilian use. This issue soon came to a head and a compromise was reached. The Union would allow cotton shipment, under the supervision of Treasury authorities from Southern ports in Union hands. Late in 1862 Confederate Secretary of State Judah P. Benjamin was soon allowing private sales of cotton to the Yankees. Much of this cotton went through New Orleans where Confederate Secretary of War Randolph was permitting citizens of Mobile to trade cotton with General Benjamin Butler.

This odd policy provided the Union with enough cotton to meet the needs the army and allow some civilian use , it decreased the cotton shortage in Europe and it provided some profit to the suffering Confederate cotton planters.
 
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