The 250th anniversary of the US Declaration of Independence was celebrated on July 4. It seems a good occasion to reflect on how that country influenced distant Madras. The list of interactions is long. Therefore, I have chosen to focus on just two significant episodes. Both had to do with war and, quite unwittingly, set off waves of prosperity in our city.
The American Civil War and Madras Industry
Back in 1861, the US was at war, just as it is now. Only then, it was at war with itself. The American Civil War, fought between the Unionists of the northern states and the Confederates of the south, had an immediate consequence. Cotton exports from America to Britain came to a halt.
With the mills in Lancashire likely to run out of the one commodity they needed, attention turned to the colonies. India was suddenly discovered as a potential supplier of cotton. Bombay was the immediate beneficiary. Exports from that port surged and created many fortunes overnight.
US Cotton and Madras
Madras came a distant second. To be fair, efforts to improve the quality and quantity of cotton cultivation had begun in the 1840s. The focus was on four districts—Kadapa, Bellary, Tirunelveli, and Coimbatore. There was also concern that Bombay brokers, because of their proximity, would persuade cultivators in Kadapa and Bellary to sell to them.
Consequently, work on the Godavari–Krishna canal network was accelerated during the 1850s. The aim was to facilitate cotton exports through Madras. It is an amusing coincidence that the man who implemented the scheme was Sir Arthur Cotton.
How Madras Benefited from the US Cotton Boom
Sadly for Madras, it was generally agreed that American-quality cotton could not be cultivated here. Nevertheless, the Presidency benefited from the war. Cotton prices rose dramatically, from three annas a pound to twelve.
Shipments also increased sharply, rising from 220,000 cwts to 692,000 in 1861. Thoothukudi, then known as Tuticorin, prospered because of its proximity to Tirunelveli. Even today, the Great Cotton Road there commemorates that brief period of prosperity.
Madras also benefited. Firms such as Binny and Parry earned substantial profits. Parry prospered to such an extent that it added an entire floor to its headquarters, located on the site of present-day Dare House.
Madras Chose Caution
There is, however, something about the air of Madras. It encourages conservatism. Unlike the cotton traders of Bombay, many merchants in Madras believed that the Civil War would not last long. Leading this view was William Hamilton Crake, Chairman of Parry and also Chairman of the Madras Chamber of Commerce.
He repeated this opinion in both 1862 and 1863. Then, when the war ended two years later, he had the satisfaction of saying, “I told you so.”
The Birth of the Madras Mills
When the Civil War ended in 1865, Bombay slipped into depression. Of the forty-seven exchange banks established there, only seven survived. Madras, by contrast, continued steadily. There remained, however, the question of what to do with the surplus cotton now being produced.
Bombay and Bengal already had cotton mills. Even Pondicherry possessed one. It was therefore decided that Madras too should establish mills.
The Growth of the Madras Textile Industry
This initiative gathered momentum when Lord Napier and Ettrick became Governor of Madras in 1866. “India is not the preserve of Manchester,” he wrote. “The government and people of England would repudiate a calculated neglect of the industrial capacities of the country.”
A French expert was invited to advise on suitable locations. He identified Ambasamudram, near Tirunelveli, as ideal. While discussions continued there, the A&F Harvey Mill became a reality only in the 1880s. Meanwhile, Binny stole a march in Madras itself. Setting aside its traditional trading role, the company invested in a cotton mill just outside the city.
The Buckingham Mill Company Ltd. was established in 1876 and named after the then Governor, the Duke of Buckingham and Chandos. A few years later, the Carnatic Mills arose on the opposite side of the Otteri Nullah. Together, the two mills came to define the industrial landscape of Madras.
By the 1920s, when the city’s population stood at about 4.5 lakhs, Binny alone employed 10,000 people. That statistic gives a fair idea of its influence on Madras.
World War II and Madras Industry
The next major American impact came during the Second World War. With almost every port on the eastern front either bombed or invaded, Madras remained the principal survivor. American troops made the city their base.
As a result, Madras experienced several new developments. The city saw its first cabarets, organised by Mary Clubwala Jadhav for the soldiers. Tambaram emerged as a thriving air base. Hollywood films were regularly screened for the entertainment of American troops. The harbour also experienced a major boom. Moreover, the prosperity generated by a distant war caused the city’s population to double. It is safe to say that Madras never looked back after that.
This article appeared in The Hindu–https://www.thehindu.com/news/cities/chennai/when-the-us-at-war-spurred-madras-industry/article71188928.ece
My book, Chennai, A Biography can be ordered-http://-http://My book, Chennai, A Biography can be ordered-https://sriramv.com/2021/12/27/how-to-buy-autographed-copies-of-chennai-a-biography-from-outstation/20.ece
