The Economics of Cotton

THE SOUTH IN THE AMERICAN AND WORLD MARKETS

The first half of the nineteenth century saw a market revolution in the United States, one in which industrialization brought changes to both the production and the consumption of goods. Some southerners of the time believed that their region’s reliance on a single cash crop and its use of slaves to produce it gave the South economic independence and made it immune from the effects of these changes, but this was far from the truth. Indeed, the production of cotton brought the South more firmly into the larger American and Atlantic markets. Northern mills depended on the South for supplies of raw cotton that was then converted into textiles. But this domestic cotton market paled in comparison to the Atlantic market. About 75 percent of the cotton produced in the United States was eventually exported abroad. Exporting at such high volumes made the United States the undisputed world leader in cotton production. Between the years 1820 and 1860, approximately 80 percent of the global cotton supply was produced in the United States. Nearly all the exported cotton was shipped to Great Britain, fueling its burgeoning textile industry and making the powerful British Empire increasingly dependent on American cotton and southern slavery.

The power of cotton on the world market may have brought wealth to the South, but it also increased its economic dependence on other countries and other parts of the United States. Much of the corn and pork that slaves consumed came from farms in the West. Some of the inexpensive clothing, called “slops,” and shoes worn by slaves were manufactured in the North. The North also supplied the furnishings found in the homes of both wealthy planters and members of the middle class. Many of the trappings of domestic life, such as carpets, lamps, dinnerware, upholstered furniture, books, and musical instruments—all the accoutrements of comfortable living for southern whites—were made in either the North or Europe. Southern planters also borrowed money from banks in northern cities, and in the southern summers, took advantage of the developments in transportation to travel to resorts at Saratoga, New York; Litchfield, Connecticut; and Newport, Rhode Island.