Changes in the World Cotton Economy by the ACW - Papers

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#1
The Cotton Boom and Slavery in Nineteenth-Century Rural Egypt
by Mohamed Saleh

Abstract; The “staples thesis” argues that institutions in a given region could be explained by the nature of production of its prevailing staples, whereby slavery is likely to emerge in “slave-conducive” crops, such as cotton, rice, and sugarcane. This paper evaluates the thesis using a unique natural experiment from nineteenth-century rural Egypt, the cotton boom that occurred because of the American Civil War in 1861-1865. Historical evidence suggests that the cotton boom marked the emergence of the short-lived institution of large-scale agricultural slavery in Egypt’s Nile Delta, where all slaves were imported from East Africa, before the abolition of slavery in 1877. Employing the newly digitized Egyptian individual-level population census samples from 1848 and 1868, I find that cotton-favorable districts witnessed greater increases in household’s slave holdings and the share of slave-owning households between 1848 and 1868 than less favorable districts. Those districts also witnessed greater increase in the population share of free local immigrants. I examine several potential mechanisms of these effects, namely, cross-district differences in the relative scarcity of free local labor and inter-crop differences in economies of scale and skill-intensity ( results on mechanisms are not complete).

http://pseweb.eu/ydepot/seance/257_SAL2015COT.pdf

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ebg12

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During the civil war Egypt's ruler was Khedive known as "the Great builder." He litterally "banked" on the
knowledge that the Union blockade of the Southern ports couldn't be broken depriving Britain Mills of cotton.

With a boom in Egypt's cotton demand during the civil war, The money made by cotton allowed him to finish building the Suez Canal,
build the first opera house in Egypt, buy American Arms to rebuild his Army, and after 1865 hire approx. 50 ex-Union and
Confederate officers to build his new General Staff.

But after 1865, the American southern production of cotton had risen to it's 1850 level, and the demand for Egypt's cotton (which was a poorer quality then American cotton) dropped.

By that time in 1870, Khedive had involved Egypt in a war with Ethiopia, and to finance his war without profits from cotton exports...he sold the Suez Canal to Britain. Also, by that point, British financial institutions took control of Egypt's economy because of the debt that had incurred in the failed business of cotton growing in Egypt after 1865.

The beginning of Great Britain ruling Egypt is linked to the Union blockade of southern cotton during the civil war.
 
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#4
Emancipation and Empire: Reconstructing the Worldwide Web of Cotton Production in the Age of the American Civil War
by SVEN BECKERT

HISTORIANS GENERALLY VIEW the U.S. Civil War as a crucial turning point in the history of the American nation. But it was more than this: the Civil War sparked the explosive transformation of the worldwide web of cotton production and, with it, of global capitalism. The cotton industry was among the world's largest industries at midcentury, drawing on the labor of perhaps 20 million workers. Prior to 1861, most of the world supply of raw cotton had been produced by slaves on plantations in the American South and was spun into thread and woven into cloth by textile workers in Lancashire. But in the decades following Appomattox, this world had given way to a global empire of cotton structured by multiple and powerful states and their colonies and worked by non-slave labor. Sharecroppers, tenant farmers, and peasants, often highly indebted to local merchants, produced most of the global cotton, a significant fraction of which was grown outside the American South, in such places as India, Egypt, West Africa, Turkmenistan, and Brazil.

The American Civil War was pivotal in these transformations. In its wake, nearly 4 million slaves gained their freedom in the nation that dominated world cotton production, leading to fears among merchants and manufacturers that the disruption of the "deep relationship between slavery and cotton production" might "destroy one of the essential conditions of the mass production" of cotton textiles.' By exploding global confidence in the structure of one of the world's most important industries, the war encouraged a new regime of bureaucrats and industrialists in cotton-consuming countries to secure supplies of the "white gold" not from slaves, but from sharecroppers, tenants, and peasants, decisively shifting the balance between free and coerced labor. And by removing several million bales of cotton from global markets between 1861 and 1865, the war forced manufacturers to find new sources for their crucial raw material, catapulting in the decades after Appomattox large areas of the world into the global economy. New forms of labor, the growing encasement of capital and capitalists within imperial nation states, and the rapid spatial expansion of capitalist social relations were the building blocks of a new political economy that dominated global affairs until the "Great War" half a century later. Indeed, the unimaginably long and destructive American struggle, the world's first "raw materials crisis," was midwife to the emergence of new global networks of labor, capital, and state power. The speed and flexibility with which merchants, manufacturers, and agricultural producers responded to the crisis revealed their adaptability and, not least, their capacity for marshaling new, indirect, but far-reaching forms of state power in place of direct ownership of human beings to secure plentiful labor. One of the most important chapters in the history of global capital and labor, in effect, was written on the battlefields of provincial America.

Emancipation and Empire: Reconstructing the ... - Harvard DASH
https://dash.harvard.edu/bitstream/handle/1/.../Beckert_EmancipationEmpire.pdf

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#5
Cotton Boom, De‐industrialisation and re-industrialisation in the Middle East
Contrasting Experience in Egypt and western Anatolia 1850-1914

Dr. Laura Panza
La Trobe University

Abstract
This paper undertakes an investigation of the process of decline and rebirth of textile manufacturing in two Middle Eastern regions, Egypt and western Anatolia during the first wave of globalisation (1850-1914). Through the application of the “Dutch Disease” model we explore the linkages between terms of trade and industrialisation. These are further related to the evolution of price transmission between domestic and global raw cotton markets. We find that different levels of market integration have contributed to diverging trajectories in industrial development in the two regions: while in Egypt the process of de-industrialisation was not reversed, in western Anatolia weaker international price transmission and domestic policy interventions facilitated the creation of a nascent domestic textile industry.

https://cama.crawford.anu.edu.au/pdf/events/2012/conference/laura-panza-paper.pdf
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#6
University of New Orleans
ScholarWorks@UNO
University of New Orleans Theses and Dissertations Dissertations and Theses
Spring 5-13-2016

“The Grand Old Man of Cotton”: Colonel Henry G. Hester, Economic Innovation, and the New Orleans Cotton Exchange, 1871-1932
by Joshua E. Lincecum

This Thesis is brought to you for free and open access by the Dissertations and Theses at ScholarWorks@UNO. It has been accepted for inclusion in University of New Orleans Theses and Dissertations by an authorized administrator of ScholarWorks@UNO. The author is solely responsible for ensuring compliance with copyright. For more information, please contact scholarworks@uno.edu.

Abstract
After the American Civil War, and the collapse of the market in slave-produced cotton in the South, cotton merchants in New Orleans faced challenges in reestablishing the city as a central port for Southern cotton. As commodities exchanges emerged as centralized spaces for business in the 1870s, a new class of experts emerged, upon whose reports traders bought and sold newly developed securities derivatives. Henry G. Hester (1846- 1934), Secretary of the New Orleans Cotton Exchange, was an integral player in the development of the methods that governed sophisticated commodities trading around the world. His career at the New Orleans Cotton Exchange tells the story of the arrival of these methods and subsequent downfall of Euro-American centrality in the global cotton empire and contradicts previous histories that deemphasize Southern businesspersons’ contributions to modernization.

https://scholarworks.uno.edu/cgi/viewcontent.cgi?article=3278&context=td
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