Cotton Competition and the Post-Bellum Recovery of the American South

As evidence has accumulated on the prosperity of the American South under slavery prior to the Civil War, attention has turned to a search for explanations for the apparent stagnation of the southern economy after the Civil War. One class of explanations involves the argument that the South experienced special difficulties in recovering her place in the international cotton market during the late 1860's and 1870's. In one version of this hypothesis, the presence of “new” sources of supply, stimulated by the cotton famine of 1861–65, acted to displace American cotton in world markets during this period. A second version, recently proposed by Mark Aldrich, argues that appreciation of the dollar resulting from capital imports and northern economic expansion forced American cotton to compete with the rest of the world on unfavorable terms prior to the resumption of specie payments in 1879.