BACKGROUND
Early New York and Cotton Trade
In 1624 the Dutch first settled along the Hudson River, two years later they founded the colony of New Amsterdam on Manhattan island. The colony was later taken over by the English in 1664, and they renamed it New York. One of the original 13 colonies, it played a critical role in the American Revolution as it was a center of trade the battle of Saratoga took place in New York state. This battle was a crucial turning point in the war and marked the beginning of American success in the war.
In the post-American Revolution Era, New York remained a center of global trade. Because of the city's natural deepwater port, it became the central shipping hub on the east coast and in the United States. One of the main exports during this time was cotton. New York City was tied to the economy of the south far more than any other northern city due. Cotton was not grown, processed, or made into goods in NY, but the city became deeply involved in the trade. Cotton was the world's most important commodity during the nineteenth century, and the northern merchants were sure to make a profit. New York banks gave loans to cotton farmers. Insurers protected the farmers from loss. NY ships transported the goods, and most shipments going to Europe were linked with New York. The ships would rot at her docks; grass would grow in Wall Street and Broadway, and the flory of New York, like that of Babylon and Rome, would be numbered with the things of the past. |
Connection to the South
New York was very strongly connected to the southern economy, but the NY economy would not have collapsed without cotton. The cotton trade brought with it a pro-southern, pro-slavery sentiment that soon impacted the political, social, and cultural life. Businesses in NYC became strongly connected to businesses in the south, and wealthy merchants in the north began to invest actively in the south. Some New Yorkers moved south to manage their businesses, and southern businessmen moved north to escape the heat. Southerners brought slaves with them, and this led to thousands of legally and illegally held slaves in the city. The economy of NYC proliferated due to the influx of southern cash that was spent on Broadway and 5th Avenue shops.
|