The Cotton Kings
Capitalism and Corruption in Turn-of-the-Century New York and New Orleans
Barbara Hahn author Bruce E Baker author
Format:Hardback
Publisher:Oxford University Press Inc
Published:7th Jan '16
Currently unavailable, and unfortunately no date known when it will be back
The Cotton Kings provides a vivid exploration of the fierce competition among men striving to control cotton prices in the unregulated markets of New York and New Orleans. The narrative highlights how unscrupulous brokers manipulated information to artificially inflate or deflate prices, impacting fortunes regardless of actual supply and demand. This account not only captures the intense drama of market rivalry but also underscores the potential harm caused when markets operate without proper oversight.
At the dawn of the twentieth century, cotton stood as the predominant agricultural product in the American South, playing a crucial role in the global economy. The use of futures contracts in exchanges was intended to manage risk and stabilize prices; however, the increasing corruption within the New York Cotton Exchange during the 1890s led to a decline in prices, severely affecting countless cotton farmers. Despite efforts from the U.S. Department of Agriculture to provide improved crop forecasts and market information, these initiatives fell short in addressing the rampant corruption.
In response to the deteriorating situation, cotton brokers in New Orleans, spearheaded by William P. Brown and Frank Hayne, began to consolidate their resources. Their strategic efforts culminated in the summer of 1903, when they successfully cornered the cotton market, leading to a price increase that reflected the true dynamics of supply and demand. While their victory temporarily stabilized prices for a decade, the underlying issues of self-regulation persisted, ultimately leading to the introduction of the Cotton Futures Act of 1914—marking the federal government’s first significant intervention in regulating financial derivatives.
"An insightful, useful, and interesting book that blends the histories of business, the South, society, politics, and the environment...Rather than being a dull book on a dull subject...The Cotton Kings...is a book that shows that real people influenced history but also worked within institutional constraints...A great read that is a terrific example of how history should be done."--American Historical Review "An instant classic. Baker and Hahn show us the gambling, fraud, and tragedy at the heart of American capitalism. In this gripping narrative we learn how a futures market worked, how one man could influence cotton prices by controlling information, and how a modern state crushed the operation, ruining thousands. This book is vital for understanding the paradoxes at the heart of the Progressive Era."--Scott Reynolds Nelson, author of A Nation of Deadbeats: An Uncommon History of America's Financial Disasters "This is a wonderful study, exemplary of the New Financial History: rigorously attentive to market microstructure while richly contextualized with wider implications for those of us concerned with the political economy of financial markets regulation. And they've given us a rip-roaring good read to boot! With skill and imagination, the authors have brought those 'bloodless statistics and tiresome technicalities' to life."--D'Maris Coffman, University College London "Entrepreneurs' greatest dream is to corner the market--and no market was a more tempting target in the late nineteenth and early twentieth century United States than the cotton market. In this fascinating history, Bruce Baker and Barbara Hahn tell the story of the cotton bears and bulls, and how a more assertive federal government eventually tamed their epic struggles."--Sven Beckert, author of Empire of Cotton: A Global History "A carefully researched and skillfully narrated account of an important episode in the history of the cotton trade which provides new and relevant insights into the development of American financial markets and their regulation."--Catherine Davies, Global Urban History "An important and wonderfully entertaining book."--Eli Cook, Business History Review "It would be a disservice to The Cotton Kings to label it as just an economic history...It is also a work of social history, labor history, urban history, cultural history, and Southern history. The authors' interdisciplinary approach draws upon the rich sub-focuses within nineteenth and twentieth century history and results in a book that enriches our understanding of the symbiotic relationship between commodities and the marketplace. The clear and nontechnical explanations of financial terminology and processes augment this well-researched book...ensuring that it will be featured on many reading lists and be useful to numerous scholars."--Carin Peller-Semmens, Journal of the Gilded Age and Progressive Era
ISBN: 9780190211653
Dimensions: 236mm x 155mm x 23mm
Weight: 522g
232 pages