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62 pages 2 hours read

Sven Beckert

Empire of Cotton

Nonfiction | Book | Adult | Published in 2014

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Chapters 7-8Chapter Summaries & Analyses

Chapter 7 Summary: “Mobilizing Industrial Labor”

While Beckert’s narrative has thus far focused on the merchants, statesmen, and inventors of the cotton industry, here the author pays homage to the untold millions of individuals who labored on plantations and in cotton mills, tying their struggles to the poetry of both William Blake and Bertolt Brecht. Beckert writes, “One of the saddest sights to this day is St. Michael’s Flags in Manchester, a small park where allegedly forty thousand people, most of them cotton workers, lie buried in unmarked graves, one on top of the other” (176).

One of the few cotton workers whose name and memory persist in the historical record is Ellen Hootton. In June 1833, at the age of ten, Hootton appeared before His Majesty’s Factory Inquiry Commission to testify about the conditions that child laborers faced in British cotton mills. While child labor was common and accepted by many, the experience of Hootton and other British youths more closely resembled that of an enslaved person. Her 15-hour days included the tedious and stressful work of repairing multiple broken threads a minute. If she failed to keep up with the speed of the machinery, she suffered brutal reprisals at the hands of her overseer, Mr. Swanton. Beckert writes, “Ellen reported being beaten by Swanton ‘twice a week’ until her ‘head was sore with his hands’” (177). As merchants, bankers, and entrepreneurs made fortunes off cotton, workers like Hootton saw few benefits from industrialization. Beckert writes, “A recent analysis of the life expectancy and heights of workers determined that ‘no increase in food consumption, no increase in longevity or nutritional status, and no improvement in housing’ resulted from the Industrial Revolution” (194).

While the results of widespread labor mobilization were frequently inhumane, Beckert writes, “The ability to move workers into factories became key to the cotton empire’s triumph” (179). Unlike on the plantations in the Americas, slavery was prohibited across most of Europe by the 19th century. Nevertheless, both private and state coercion were necessary tools for filling Europe’s cotton mills with workers. Various European countries passed laws targeting so-called vagrants and children, compelling them to work. Particularly in Britain and France, the state took a very aggressive stance to repress working-class collective action, making it a capital crime to destroy spinning machines. Meanwhile, many factories forced workers to sign employment contracts stipulating that if they leave their job, they will be sentenced to three months in a correction facility or hard labor camp. In Britain, these predatory contracts were made possible by the 1823 Master and Servant Act. The market itself also had a coercive effect on Europe’s workforce. Unable to compete with machine-made yarn and cloth, hand spinners and weavers who worked out of their home for decades were forced to enter the factory.

Manufacturers’ efforts to fill their factories were helped along by the rigid gender roles of the European working class. Beckert writes that factory owners “built upon long-established relationships of power within households, especially a long history of paternalism that allowed the male head of household to deploy the labor of his wife and children as he saw fit” (187). As a result, up to half of all cotton mill workers were children, who were paid between one-third and one-fourth of an adult’s wages and were much easier for overseers to abuse physically. Meanwhile, women—both children and adults—made up anywhere between 70 percent and 89 percent of all cotton mill workers across the United States and Europe: “Such preponderance of women workers resulted all too often in the invisibility of the cotton industry, overshadowed by the male-dominated coal-mining, iron-making, and railroading industries” (190).

Finally, Beckert points out that capitalism’s dependence on the state eventually led to a significant advantage for the working class. He writes, “Once the control and mobilization of labor were ‘nationalized’ within powerful states, and indeed became matters of state, workers also gained new opportunities to improve their situation by appealing to the state itself and mobilizing within national political spaces” (197).

Chapter 8 Summary: “Making Cotton Global”

Beckert explores the extent to which the activity of a comparatively few Liverpool merchants sent reverberations around the globe, affecting the lives of enslaved people in the American South, mill workers across Europe, and creditors in New York. For example, Beckert writes, “On plantations throughout the American South, ‘Liverpool prices’ were the single most significant piece of news, bordering on obsession for many slave masters” (201).

Beckert goes on to detail the intricate global connections swirling around the ports of Liverpool: A Mississippi merchant, drawing on credit from New York or London, finances a local cotton planter. The harvest is shipped from New Orleans to Liverpool where another merchant sells it to a manufacturer in Manchester through a broker. The cotton is spun into yarn then shipped to Calcutta, where merchants distribute it to local weavers across the countryside to prepare into cloth for local retail merchants: “The empire of cotton consisted of tens of thousands of such ties” (204). Connecting most of these ties were merchants, whose ability “to organize the radical spatial rearrangement of the world’s most important manufacturing industry was as much of an invention as the more corporal machines and novel labor organization that dotted the globe by the 1850s” (205). While enslaved people and wage workers toiled away for little or no pay, merchants made fortunes through commissions and interest payments. For example, the Rathbones of Britain—one of the most prominent cotton merchant families in the world—made 34,983 pounds between 1854 and 1858, “at a time when a physician might earn 200 pounds a year” (213).

In their efforts to recast the rural countryside to feed the cotton industry’s demands, merchants’ most important tool was credit: “Credit was the magic wand that allowed merchants to recast nature, clear lands, remove native inhabitants, purchase labor, produce crops in definite qualities and quantities, and meet the voracious appetites of manufacturers and their modern cotton machinery” (219). With their intimate knowledge of local planters, merchants built a trust network that allowed them to make better guarantees to London and New York financiers regarding the successful completion of cotton orders. The safety of these investments depended on merchants’ ability to identify the most reliable local planters in a given region: “What set merchants apart was not just their ability to accumulate and deploy capital, or even their privileged access to information, but their ability to build and draw upon these networks […] of trust based on extended family ties, geographical proximity, and shared religious beliefs, ethnic identities, and origin” (230). In turn, merchants’ profound importance gave them a significant amount of political clout, which they used to lobby governments to finance improvements to the docks, storage facilities, and railways that made up the infrastructure of the cotton industry.

Despite the guarantees of merchants, disaster could strike even the most reliable cotton planters’ crops, in many cases resulting in foreclosure when they could not pay back their advances. Other times, an unexpected decline in the price of raw cotton doomed a planter operating on thin margins: “In this way, the Browns of New York, who advanced large sums of money to southern planters, came to own at least thirteen cotton plantations in the South, along with hundreds of slaves” (222).

Finally, as these global chains grew more complex, cotton began to be thought of in abstract terms and not just as a physical commodity. For example, rather than inspecting and pricing each shipment of cotton, industry groups began to grade cotton based on its species and where it was grown. Having established these standards, the next logical step was the emergence of a cotton futures market, trading in cotton that had not yet arrived and, in some cases, had not yet been grown. This and other speculative markets helped set the stage for the modern era of futures trading on the New York and London Stock Exchanges. It also led to the growth of an early information industry, in which advance knowledge of local weather conditions, regional economic collapses, and imminent wars or other social unrest took on great importance. To meet this demand for information, several cotton circulars emerged, an early example of what’s known today as trade journalism.

Chapters 7-8 Analysis

In examining the terrible conditions facing many cotton mill workers, Beckert raises the question: Is industrial capitalism possible without the exploitation of workers? This issue will be revisited over the course of the book, but certainly during the first half of the 18th century, as extraordinary amount of coercion and suffering were fundamental components of the global cotton industry. Aside from slavery in the Americas, factory workers in Europe were frequently subject to inhumane working conditions, a reality addressed famously in William Blake’s 1808 poem, “And did those feet in ancient time,” which Beckert quotes. The poem imagines Jesus descending to England and creating a kind of heaven there, a stark contrast to what Blake refers to as “the dark satanic mills.” (Blake, William. “And did those feet in ancient time.” 1808). To Blake, the cotton mills where children like Hootton labored were akin to hell on earth, a characterization supported by Beckert’s research.

The poor working conditions of the factories were but one obstacle to mobilizing workers in cotton mills. Another was the fact that wage labor—despite being taken for granted in the modern world as the dominant form of employment—was still something of a novelty or aberration in the early 19th century. Beckert writes:

Turning people into factory workers meant turning them into wage workers as well. For most people in Europe and elsewhere, however, wages had not been central to their livelihood. Many who lived off the land or made artisan crafts, not surprisingly, had little incentive to become factory workers. A farmer grew his own sustenance; an artisan created goods he could sell or barter. A factory worker, by contrast, possessed nothing but the power of labor (181).

To men and women of the early 19th century, wage labor was not the natural order of things, particularly not the kind of backbreaking wage labor they would be subject to in the cotton mills.

In order to convince—or coerce—laborers to work in the factories, industrialists once again relied on the power of the state in yet another example of how capitalism may have never succeeded without government intervention. Perhaps the most significant of these state initiatives to mobilize labor was the 1823 Master and Servant Act, which “explicitly allowed ‘English employers to have their workmen sent to the house of correction and held at hard labor for up to three months for breaches of their labor agreement’” (182). The irony, however, was that by relying on the state to pass laws allowing for the better mobilization of labor, industrialists would ultimately lose its stranglehold on cheap, available workers. That’s because these very same workers, whose consent the state relied on to govern, would later demand that the government pass laws limiting work-hours, outlawing child labor, and establishing minimum wages. Again, the complicated balance of power and interests between capital, the state, and labor is laid bare, as Beckert writes, “Once the control and mobilization of labor were ‘nationalized’ within powerful states, and indeed became matters of state, workers also gained new opportunities to improve their situation by appealing to the state itself and mobilizing within national political spaces” (197).

In his discussion of mobilizing labor, Beckert also examines issues of gender as they relate to the cotton industry. Cotton was unique among rising industrial goods in that its manufacture was historically and culturally the domain of female spinners and weavers. This gave manufacturers a singular opportunity to mobilize labor in ways the steel or iron industries could not. Beckert writes, “One way manufacturers tried to circumvent the problem of attracting large numbers of people to work in factories was by recruiting the weakest members of society first, those with the fewest resources to resist. To do so, they built upon long-established relationships of power within households, especially a long history of paternalism that allowed the male head of household to deploy the labor of his wife and children as he saw fit” (187). Ironically, this same paternalism acted as an obstacle to industrialization in places like India, where social conventions dictated that women should only work inside the home and not in a public setting like a factory. On a final note on this subject, Beckert points out that the outsized role of women in European factories led somewhat to an erasure of the cotton industry in the historical record, writing, “Such preponderance of women workers resulted all too often in the invisibility of the cotton industry, overshadowed by the male-dominated coal-mining, iron-making, and railroading industries” (190).

The chief takeaway from all of these observations—the reliance on the state to mobilize labor, the role of coercion in filling the factories, and the importance of rigid pre-modern gender rules—underline for Beckert the ways in which 19th century capitalism was far from a free and fair marketplace of goods, ideas, and labor. He writes, “Employers understood that the ‘cheapness’ of their labor rested on the persistence of noncapitalist ways of securing subsistence—a lesson that would eventually also inform the transition to world market production in the cotton-growing countryside in India and elsewhere. The capitalist revolution succeeded because it remained incomplete” (188).

In Chapter 8, Beckert zooms out from the factory floor to examine the increasingly strong ties that united the global empire of cotton, ties that were largely maintained by an ascendant merchant class. This period during the first half of the 18th century saw merchants gain unprecedented importance in ensuring the success of the cotton industry. As merchants and bankers gained prominence in this system, most of the spoils of the cotton industry went not to people who made things or grew things, but to those who facilitated various transactions. Or, as Beckert puts it, “To be at the very beginning of the very end of a ‘commodity chain’ thus was usually a position of relative weakness” (203). In more ways than one, this rise of the merchant and banking class foreshadows the modern economies of the 20th and 21st centuries, in which fortunes are often made in finance or banking, rather than in agriculture or manufacturing.

This reality was reinforced by the increasing tendency to view cotton in abstract terms. Rather than pay for raw cotton as it arrived on the docks of Liverpool, financiers increasingly priced cotton that hadn’t even been grown yet, while advancing credit to those who would cultivate it. While factory owners used the enforcement of laws and social traditions as tools of coercion, financiers used credit. This put merchants like the Baring Brothers at a distinct advantage over farmers, whose plantations could be taken from them if they fail to meet agreed-upon crop yields. Moreover, these credit arrangements injected both more capital and more risk into the operations of enslavers, giving them the ability to buy a greater number of enslaved people and an incentive to work them even harder in the fields. Beckert writes, “Funds for both advances and purchases were provided by drafts on Baring Brothers & Company. It was this credit, wielded by merchants like the Barings, that made the brutality of war capitalism more and more efficient, and thus made industrial capitalism more and more profitable” (214). Indeed, these credit arrangements would become even more predatory in the post-Civil War era in places like India and Africa.

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