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When White Gold Turned Red Sometimes global events have totally unexpected impact on people living in a distant country. American Civil War and its impact on Mumbai and its cotton trade was one such incident. Cotton has been grown in India since times immemorial. Handwoven Indian garments were popular world-over. The malmal from Bengal was admired for being so fine that entire saree or dhoti could pass through a ring. That cloth was adored by the elite classes of Europe. Then came the industrial revolution and the cloth trade took a U-turn. Instead of Indian cloth going to Europe, machinemade English cloth began to come to India. The cotton required for weaving that cloth was never grown in Europe. About 20% of their cotton requirement was imported from India and the balance from United States. Between 1861 and 1865 because of American Civil War their cotton supply was abruptly cut off. England began importing almost 90% of their requirement from India. Most of it was shipped from Bombay. This meant unprecedented prosperity for Bombay’s cotton trade. Textile mills of England were ready to pay any price for that cotton. It was said that, “By selling one cart load of cotton, one could buy one tola of gold.” That was when cotton began to be called “white gold”. Out of that profit Premchand Raychand, biggest cotton trader from Bombay, could start Back Bay Reclamation, the most expensive property of Bombay, and also start Bombay Stock Exchange, the first in Asia. How much of that enormous profit made by traders reached the actual cotton growers is however not known. When White Gold Turned Red
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