In 1846, political economist Karl Marx wrote that "without cotton, you have no modern industry." Indeed, before the American Civil War, cotton brought wealth, power and prosperity to both America and Europe. Giant industries in the northern U.S., extensive shipping networks up and down the Atlantic Coast and to Europe, new inventions and revised applications of old machines--all sprang from the success of King Cotton. This thoughtful study traces the impact of southern cotton on most of the important facets of life in antebellum America, including employment, international relations, agriculture, shipping, the U.S. economy, Native American relations, and the subjugation of humans. This one plant fashioned the way of life of the South and profoundly affected the destiny of the entire American people.

The United States produced about 80 percent of the world's cotton in the decades prior to the Civil War. How much monopoly power did the United States possess in the world cotton market and what would have been the effect of an optimal export tax? This paper estimates the elasticity of foreign demand for U.S. cotton exports and uses the elasticity in a simple partial equilibrium model to calculate the optimal export tax and its effect on prices, trade, and welfare. The results indicate that the export demand elasticity for U.S. cotton was about -1.7 and that the optimal export tax of about 50 percent would have raised U.S. welfare by about $6 million, about 0.1 percent of U.S. GDP or about 0.5 percent of the South's GDP.

In simple, elegant language, Hughes and Cain walk students through four centuries of political, social, and economic history, with a focus on laws and institutions and an emphasis on current economic topics that reflects the latest scholarship. Rich in both quantitative techniques and economic theory, American Economic History demonstrates how an understanding of our past can illuminate economic issues that face society today and in the future.

Includes papers presented at the annual meetings of the Society.

This paper presents new annual estimates of U.S. production of pig iron and imports of pig iron products dating back to 1827. These estimates are used to assess the vulnerability of the antebellum iron industry to foreign competition and the role of the tariff in fostering the industry's early development. Domestic pig iron production is found to be highly sensitive to changes in import prices. Although import price fluctuations had a much greater impact on U.S. production than changes in import duties, our estimates suggest that the tariff permitted domestic output to be about thirty to forty percent larger than it would have been without protection.

Awarded the David A. Wells Prize 1963-64.

Resource added for the Economics "10-809-195" courses.