barney
Full Member
- #1
Thread Owner
Pondering Civil War blockade running economics...
A runner could purchase cotton for around $0.06/pound and then sell it for around $0.40/pound in a foreign port. A steamer like the BLACK JOKER could probably conservatively carry around 400 bales of cotton (bale: ~500 pounds). That's roughly a $70,000 positive difference (~$1.7 million when extrapolated out to current value). Assuming half of that goes to coal and crew costs, and you are looking at a sweet chunk of change as profit. AND that's just one-half of the trip! Runners would then turn around and purchase all sorts of goods not available locally due to the war and blockade, including medicine, liquor, foodstuffs, munitions, and other luxury items to profit big on both ends of the trip. Some have estimated that luxury items (e.g., liquor, coffee) were more profitable than arms and munition. No wonder blockade running was such an attractive business! And because Confederate currency was problematic, a lot of these transactions were completed with gold. Makes me wonder what else may be found buried with the cargo of the BLACK JOKER! Can't wait to find out this summer...
Mike
A runner could purchase cotton for around $0.06/pound and then sell it for around $0.40/pound in a foreign port. A steamer like the BLACK JOKER could probably conservatively carry around 400 bales of cotton (bale: ~500 pounds). That's roughly a $70,000 positive difference (~$1.7 million when extrapolated out to current value). Assuming half of that goes to coal and crew costs, and you are looking at a sweet chunk of change as profit. AND that's just one-half of the trip! Runners would then turn around and purchase all sorts of goods not available locally due to the war and blockade, including medicine, liquor, foodstuffs, munitions, and other luxury items to profit big on both ends of the trip. Some have estimated that luxury items (e.g., liquor, coffee) were more profitable than arms and munition. No wonder blockade running was such an attractive business! And because Confederate currency was problematic, a lot of these transactions were completed with gold. Makes me wonder what else may be found buried with the cargo of the BLACK JOKER! Can't wait to find out this summer...
Mike