Confederate States as nearly the sole provider of that cotton, why did Great Britain remain neutral during the Civil

War? At the beginning of the war, Britain simply drew down massive stores of cotton. These stockpiles lasted until

near the end of 1862. Why did Britain not recognize the Confederacy at that point? Two reasons: The Emancipation

Proclamation and new sources of cotton. Having outlawed slavery throughout the United Kingdom in 1833, it was

politically impossible for Great Britain, empty cotton warehouses or not, to recognize, diplomatically, the

Confederate States. In addition, during the two years it took to draw down the stockpiles, Britain expanded cotton

imports from India, Egypt, and Brazil.

Monopoly sellers often see no threats to their superior marketplace position. In these examples did the power of the

monopoly hide other possibilities from the decision makers? Perhaps. As a result of their actions, this is how history

unfolded.
232 9 • Key Terms
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