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 analyses 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, the financial 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.
Readership: Students and scholars of modern US history; economic and international historians.
"Sexton's analysis demonstrates that he spent a great deal of time reading and analysing primary source documets from the period" - Marc D. Weidenmier, EH.net
"An outstanding synthesis of diplomatic and business history" - Mark R. Wilson, Business History Review
"This book provides a good overall survey and many new insights. It is an enjoyable read throughout, and should be useful for scholars and students alike." - John Killick, American Studies, 40
"...interesting and well-researched." - Marc D. Weidenmier, EH.Net
Introduction: Finance and Foreign Relations in the Mid-Nineteenth Century
1: The Baring Years, 1837-1861
2: Union Finance and Diplomacy
3: Confederate Finance and Diplomacy
4: 'Were it not for our Debt,' 1865-73