The great war between the Northern and Southern States of America, which was waged from 1861 to 1865, had a far-reaching influence upon Liverpool. Prior to this date American shipping filled our docks, and 82 per cent. of our cotton imports were derived from the Southern States. The election of Lincoln as President of the United States, and the rejection of the democratic candidate precipitated a crisis which had been long pending. Slavery was a southern institution, and although it was conducted in the most humane manner, and many of the worst features of the system were absent, the principle of slavery was abhorrent to a large section of the northern people, and the south feared that with the election of Lincoln this section would become all-powerful. South Carolina was the first state to assert her sovereign right to secede from the union. Other states followed slowly and with hesitating steps, and by the end of 1861 the north and south were engaged in mortal combat. The southern states were ill equipped for the struggle, they had no war material and were dependent for clothing and many of the necessities of life upon the northern manufacturers. The policy of the north was, therefore, to establish a blockade of the south, both by land and by sea, which caused prices of many commodities to rapidly advance in the south, and cotton, their main export, to quickly decline in value. The English people sympathised with the south, as the weaker power, and also having been actively associated with them in trade. The arrest of the southern envoys Mason and Slidell upon the British mail steamer "Trent," by the federal commander, did not improve the relationship between Great Britain and the Government at Washington, and created ill feeling against the north. Under these circumstances Liverpool merchants fitted out many costly expeditions to run the blockade and to carry arms and munitions of war into the southern ports. The _modus operandi_ was to send out a depot ship to Nassau or Bermuda and employ in connection with this swift steamers to run the blockade and bring back cargoes of cotton. The profits of the trade were great, but the risk was also very considerable.