King Cotton (September 1992 | Volume: 43, Issue: 5)

King Cotton

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Authors: John Steele Gordon

Historic Era: Era 4: Expansion and Reform (1801-1861)

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September 1992 | Volume 43, Issue 5

As any faithful reader of the old gossip columns knows, great wealth too easily acquired can be a very mixed blessing indeed. Many of the very rich whose names appeared endlessly in the columns—the Duke and Duchess of Windsor, for instance—simply frittered life away in an endless round of public pleasure-seeking. If they seldom seemed actually to be having a very good time, perhaps their friend Noel Coward put his finger on the reason when he reportedly noted that “work is so much more fun than fun.”

For others of the very rich, however—Barbara Hutton and Huntington Hartford come to mind—their lives as they were played out in the columns seemed sad almost to the point of tragedy. And the cause of their unhappiness was precisely that they inherited huge fortunes at an early age and lacked the personal strength to carry the burden of them.

Sudden great wealth can be equally debilitating for entire nations as well. The fleetfuls of gold and silver that yearly poured into Spain from the New World, as though from some vast trust fund, were used to purchase commodities (not to mention armies) from abroad rather than to develop the Spanish economy. In effect, the wealth of the Indies went to developing the economies of northern Europe, not Spain, which was left far behind. Only in the late 20th century, is it beginning to catch up with the countries that, lacking Spain’s wealth, had no choice but to “work for a living.”

In the modern era it is usually oil that distorts national economies. In the American South, two hundred years ago, however, it was cotton. The consequence of the easy profits to be had from growing cotton there in the first half of the nineteenth century echo even unto today’s headlines.

The carefully cultivated Gone with the Wind mythology of the antebellum South has colored our image of the colonial South as well. But in truth the Southern colonies before the Revolution were economically precarious, and even the wealthiest citizens were burdened by debts to their factors in London. While sugar in the West Indies was hugely profitable and the foundation of many a great British fortune, the major export crops of the Southern colonies—indigo, rice, and tobacco—were marginal, and the competition from elsewhere fierce.

 

Indigo, from which a blue dye was extracted, was widely grown in warm climates around the world. With British tariff preferences providing a protected market, indigo utilized about 10 percent of the slave labor in the Southern colonies. After the Revolution, with the South now outside the British tariff walls, India blew the American indigo industry right out of the water, and it vanished in the 1790s. Rice culture, which had employed about 20 percent of the slave labor in colonial days, held its own in terms of exports after the Revolution, but what growth there was came only from the relatively small domestic market.

Tobacco had been