KING COTTON: A STUDY OF THE EGYPTIAN COTTON ECONOMY
BRIAN WADE MILLER
DR. HOWARD
INTRODUCTION
Cotton, as an agricultural industry, has had an enormous impact on the world. Some countries have been torn apart by the cotton industry, while others have prospered. Great Britain has had a major effect on the cotton industry and cotton production in several areas of the world. Especially following the Industrial Revolution, cotton became a major import into Great Britain. British cotton manufactures bought all the raw cotton that they could get their hands on because no cotton was grown in England. Realizing the potential for making a large amount of money, many farmers in North America converted their tobacco plantations into cotton plantations. Cotton fast became a major cash crop of the southern United States economy.
It did not take long for the American cotton industry to expand where it dominated the world market, the transition occurring sometime between 1790 and 1820. In 1800, American cotton displaced that of the West Indies, and in 1821 India was also surpassed by the productivity of the American cotton industry. America soon became Great Britain's single largest source of cotton. Nearly 77% of cotton imports between 1815 and 1859 into Great Britain came from America.'
America's dominance of the cotton market started to fade during the late antebellum period. Great Britain began to see hostilities occurring between the American states. As the threat of hostilities increased, Britain looked elsewhere to fulfill its raw cotton needs. India, Brazil, Turkey, and Egypt emerged as alternative sources for cotton. England began to import cotton from Egypt as early as 1822.
Egypt became a very important trading partner for Great Britain. Although Egypt was part of the Ottoman Empire, Great Britain showed a great interest. Egypt was able tc receive financial support to build the infrastructure necessary for the large export of
cotton. Even though Great Britain was an active partner in the Egyptian cotton industry, it did not officially occupy Egypt until 1882.2 Many historians would lead you to believe that British occupation of Egypt was due solely to the importance of the Suez Canal. This paper will demonstrate that the importance of the cotton industry was also a major factor in the eventually occupation of Egypt.
THE GROWTH OF THE EGYPTIAN COTTON INDUSTRY
The American Civil War enabled Egypt to benefit enormously. Cotton ginning factories began to be built in order to handle the increase in cotton production. Advances in transportation took place simultaneously with the increase in cotton. The Alexandria-Cairo railway was completed, creating branch lines to the important cotton market centers of Samannud and Zagazig.3 With these improvements in transportation, Egypt became a major cotton producer. As a result, Egypt became a very important trading partner with Great Britain. Egypt helped to fill the cotton void left by America. The cotton trade between Great Britain and Egypt eventually led to the British Empire's occupation of Egypt.
Cotton production began to rise dramatically a year before war was declared in America. England, foreseeing a cotton shortage, encouraged colonies to start planting more cotton. Although Egypt was still a part of the Ottoman Empire, Egypt responded to the call. The Secretary of the Manchester Cotton Association sent New Orleans seed to Egypt. Enclosed in the packages were also cultivating instructions. Although the New Orleans seeds were never successfully grown, England got its foot into the door of the Egyptian cotton market.
Exports reached approximately six hundred thousand cantars4 in 1860. By 1861, the cotton exports increased to approximately seven hundred thousand cantars. Five hundred to six hundred thousand feddans5 were under cotton by 1862.6 Great Britain decided that if it was to have a stake in the Egyptian cotton market, it needed to invest heavily. Steam plows, cotton gins, packing presses, etc. were sent in 1863 to Egypt. One third of the Egyptian cotton crop in 1863 was being ginned in one of the eighty steam ginning factories, compared to twenty-four in 1862. The British Consul estimated that approximately forty percent of the total cultivated area in Lower Egypt was planted with cotton by 1864. Egypt's cotton economy was growing at a very rapid pace with the help of financial backing from European investors.
A cotton boom occurred in Egypt, causing a sharp rise in the number of immigrants arriving in Egypt. Many of these immigrants were European settlers hoping to invest in the rapidly growing cotton industry. Immigration not only helped the cotton industry to flourish, but it also sparked many investment opportunities in other sectors of
the Egyptian economy. For instance, homes had to be built in order to house all of the new immigrants. Houses being built created a demand for lumber and labor. Many jobs were created through the rapid immigration to Egypt.'
A majority of all Egyptian cotton produced was exported to England. England imported sixty-five percent of Egypt's cotton crop by 1859. This number rose to seventy-five percent during the following decade. Great Britain's demand for cotton helped to solidify the cotton economy in Egypt. With a constant buyer, Egyptian farmers planted more and more cotton.
Although the cotton boom ended in 1866, Egyptian cotton was still in high demand. British manufacturers, by selling goods made from Egyptian cotton, advertised the great quality of the cotton. This enabled Egypt to still be able to sell their cotton after the boom ended. Egyptian cotton was considered to be suitable for sewing thread, medium-fine yarns, fine underwear and hosiery, among other things. The cotton produced in Egypt was very versatile, creating a constant demand.
THOUGHTS OF BRITISH OCCUPATION OF EGYPT BECOMES A REALITY
Trading was not limited to cotton. Egypt began to import more goods from the British Empire, the trade relationship between the two was positively related. As exports to Great Britain increased, so did imports from Great Britain. England supplied manufactured goods to Egypt while Egypt supplied England with wheat and cotton. Egypt and England soon found themselves very close trading partners. Both countries had a stake in the other's economy, and both parties profited from the arrangement.
British occupation of Egypt came about due to the fast growing debt of the Egyptian government and the growing belief that they would not be able to repay the debt. The Egyptian ruler, Ismail, sold his interest in the Suez Canal Company to Great Britain for £4,000,000 in 1875. This money bought Great Britain 176,602 shares of the total 400,000 shares. Great Britain now had a great stake in the Egyptian government and economy.8
Ismail was spending enormous amounts of borrowed money. There came a point when investors began to worry about the security of their investments. Most of the borrowed debt accumulated through London and Paris counting houses, creating panic among many European creditors. Britain and France saw it fit to take action in Egypt in hopes of protecting their investments. Following pressure by Great Britain and France, the Egyptian government accepted a joint Anglo-French supervision of Egyptian Finances.
A British Consul General guided Khedive's ministers on financial matters. The financial system, irrigation schemes, the legal system, Egyptian schools, and the Egyptian army were all under the control of British advisors. Many Egyptian did not like the foreign intervention, creating a forum for a nationalist movement to begin in 1881.9
Colonel Arabi Pasha led the Egyptian nationalist movement and controlled Egypt by the end of 1881. "Egypt for Egyptians" was a slogan used by Pasha to gain support for the nationalist movement. The flames of nationalism were growing stronger everyday, leading nationalists to massacre fifty Europeans on June 11, 1882 in Cairo. Furthermore, the British Consul was wounded. Great Britain and France had to make a
decision about committing troops to Egypt. Due to opposition in Paris, France could not offer any military support. Great Britain decided to send troops, backed by the liberal government led by Gladstone. 1°
Admiral Seymour was given orders to bombard Alexandria in hopes of destroying Colonel Pasha's newly fortified port. The bombardment was a success and on July 20, 1882 orders were given to prepare an expeditionary force." British forces neutralized Pasha's army without much difficulty. The British force consisted of approximately thirty thousand troops, while Arabi Pasha's army consisted of ten thousand trained soldiers and a rabble of newly recruited fellanhins. British forces attacked the sleeping Egyptian forces on September 23, 1882 at Tel-el-Kebir. It took Sir Garnet Wolseley barely forty minutes to destroy the rebel army. During the battle, the British forces lost fifty-seven men dead and twenty-two missing. The Egyptian casualties were much greater. Nearly ten thousand Egyptians were dead following the battle of Tel-el-Kebir. Following the defeat, British forces occupied Cairo.12
Once Egypt was occupied, Great Britain began to modernize the country. The Nile tolls were abolished, creating a rise in river traffic. A rise in river traffic caused the railways to lower their freight rates in order to compete. Competition drove prices down, making it cheaper for cotton to be transported to the main cotton markets. The first census of Egypt was taken in May 1882. In 1885, currency reforms took place to help stabilize the economy. Great Britain also took measures to protect the Egyptian cotton crop from the cotton worm.
The Khedival Decree was written in April 1905 so as to prevent large spread cotton damage from the cotton worm. It states that if cotton worms were found in the cotton fields, the appropriate authorities must be notified immediately. Once the authorities were notified, immediate action would be taken to kill the worms and to stop further contamination. If a person did not report the sightings of worms, they would be punished. The British government wanted to protect their investment in the Egyptian cotton industry."
Many historians would argue that the Suez Canal's opening in 1869 led Great Britain to eventually colonization of Egypt.14 The Suez Canal was very important to Great Britain because it created a root to India. The protection of the canal was a reason for Great Britain's occupation of Egypt; however, the cotton industry played just as significant of a role.
CONCLUSION
England's demand of cotton helped the British Empire in many ways. First, the demand led to the eventual colonization of Egypt, securing a cotton crop. The cotton industry in Egypt gave many opportunities for investment and for making money. Many English citizens became very wealthy due to the cotton industry. The standard of living in Egypt rose significantly creating a market for some of the finer things in life. A permanent trading partner was found in Egypt.
The trade relationship created another market for Great Britain to sell its products. It is very profitable for Great Britain to have a country buying its goods. The cotton market also benefited England by supplying the cotton manufacturers with raw cotton. This raw cotton was then spun and sold back to Egypt and other colonies as manufactured goods. Great Britain was in a very good position to continue to prosper. Egypt helped to make the British Empire prosper and stay an economic superpower.
Although Egypt never became an official colony, it reaped all of the benefits. Infrastructional growth occurred, allowing for cotton and other products to be transported to marketplaces' throughout Egypt. One hundred and twelve canals, totaling 8,400 miles were dug and the railways in Egypt were extended from 275 to 1,185 miles. Five
hundred miles of telegraph lines were established throughout Egypt, making communication easier.
Investments from Europe allowed Egypt to build the Alexandria harbor and the Suez docks.'5 Alexandria soon became an important port for the Egyptian cotton market. In 1850, the port was ranked the eleventh most important port in the Mediterranean. By 1870, the port was considered to be the 4th most important port. Egyptian cotton became known as high quality cotton, creating many other markets besides the British Empire. The Egyptian economy, as a whole, was able to expand and prosper because of the cotton trade with Great Britain.
Imports and exports rose dramatically in the period from 1862-1879. This dramatic rise can be attributed to the cotton industry. During this period, imports rose from £1,991,000 to £5,410,000. Similarly, exports rose from £4,454,000 to £13,810,000. English ships brought coal to Alexandria to use for the new railways and steam
appliances. Often times when returning to England, these ships would be laden with cotton. Egyptians learned how to use modern engines and machines with the help of English engineers. Egypt created many investment opportunities for British citizens, while at the same time exporting goods that were not readily available in England.I6
Both Great Britain and Egypt prospered from their trade relations. To say that the only reason Britain decided to occupy Egypt was because of the Suez Canal is absurd.
The Suez Canal was very important to Great Britain; it created a faster route to India. However, if it had not been for the cotton industry, Great Britain would not have had an opportunity to buy shares of stock in the Canal. Cotton brought Great Britain to Egypt; the Suez Canal played a major role in keeping Great Britain there.
