The Imperialism of Free Trade: Lancashire, India, and the Cotton Supply Question, 1861-1865

Abstract

It is now more than a decade since John Gallagher and Ronald Robinson first challenged the conventional interpretations of nineteenth-century imperial history and employed the term “The Imperialism of Free Trade” to describe the “ever-extending and intensifying development of overseas regions” — a term which characterizes British imperial policy in the middle decades of the last century. The general validity of this thesis has been illustrated by reference to British policies in India in this period. There was the extensive program of railway construction, financed by British capital at favorable rates of interest guaranteed by the Government of India. There was the manipulation of the Indian tariff in response to pressure from the Lancashire cotton manufacturers. There was the cotton improvement program, the object of which was to relieve Lancashire's dependence on the United States as the major source of its raw cotton. In this case, the desired object was not achieved, despite considerable effort and expenditure sustained over more than a decade. But the approach of civil war in America revived interest in India as an alternative source of supply, notwithstanding the many difficulties that stood in the way. Indian cotton was raised on small holdings as a secondary crop every third or fourth year; its quality was poor; climatic conditions were uncertain; demand was irregular; communications between the cotton-producing areas and the ports were bad; and trade was hampered by lack of a contract law and a bankruptcy act. The Lancashire cotton manufacturers demanded energetic action from the state in overcoming these difficulties.