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Debtor Diplomacy - Finance and American Foreign Relations in the Civil War Era 1837-1873 (Hardcover, New)
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Debtor Diplomacy - Finance and American Foreign Relations in the Civil War Era 1837-1873 (Hardcover, New)
Series: Oxford Historical Monographs
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The United States was a debtor nation in the mid-nineteenth
century, with half of its national debt held overseas. Lacking the
resources to develop the nation and to fund the wars necessary to
expand and then preserve it, the United States looked across the
Atlantic for investment capital. The need to obtain foreign capital
greatly influenced American foreign policy, principally relations
with Britain. The intersection of finance and diplomacy was
particularly evident during the Civil War when both the North and
South integrated attempts to procure loans from European banks into
their larger international strategies. Furthermore, the financial
needs of the United States (and the Confederacy) imparted
significant political power to an elite group of London-based
financiers who became intimately involved in American foreign
relations during this period. This study explores and assesses how
the United State's need for capital influenced its foreign
relations in the tumultuous years wedged between the two great
financial crises of the nineteenth century, 1837 to 1873.
Drawing on the unused archives of London banks and the papers of
statesmen on both sides of the Atlantic, this work illuminates our
understanding of mid-nineteenth-century American foreign relations
by highlighting how financial considerations influenced the
formation of foreign policy and functioned as a peace factor in
Anglo-American relations. This study also analyzes a crucial, but
ignored, dimension of the Civil War - the efforts of both the North
and the South to attract the support of European financiers. Though
foreign contributions to each side failed to match the hopes of
Union and Confederate leaders, thefinancial diplomacy of the Civil
War shaped the larger foreign policy strategies of both sides and
contributed to both the preservation of British neutrality and the
ultimate defeat of the Confederacy.
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