Report on cotton for prison, New Orleans, 1862
Maine Historical Society
Raw cotton was imported from the Southern States then manufactured in textile mills. During the years of the war, cotton manufacturing became extremely challenging. The Union blockades cut off the export of cotton which caused extreme rises in bids from English buyers. With everyone facing financial hardships during the war, manufactures shut down their mills and sold off their cotton. They saw the opportunity for making fast cash off the high bidders. This further drove the two towns into financial crisis.
The Providence Journal in August 1862 said, “The Production of cloth is now not one-quarter of the producing in common times, and every week it is growing smaller. Mills are stopping in every direction, and probably not one-half of those now running will be in operation the 15th of August.”