<P> Imagining an overwhelming response of pleas for their cotton, the Southern cotton industry experienced quite the opposite . With the decisions of Lincoln and the lack of intervention on Great Britain's part, the South was officially blockaded . Following the U.S. announcement of its intention to establish an official blockade of Confederate ports, foreign governments began to recognize the Confederacy as a belligerent in the Civil War . Great Britain declared belligerent status on May 13, 1861, followed by Spain on June 17 and Brazil on August 1 . This was the first glimpse of failure for the Confederate South . </P> <P> The decision to blockade Southern port cities took a large toll on the British economy but they weighed their consequences . Great Britain had a good amount of cotton stored up in warehouses in several locations that would provide for their textile needs for some time . But eventually Great Britain began to see the effects of the blockade, "the blockade had a negative impact on the economies of other countries . Textile manufacturing areas in Britain and France that depended on Southern cotton entered periods of high unemployment ..." in the so - called Lancashire Cotton Famine . The article written in the New York Times further proves that Great Britain was aware of the influence of cotton in their empire, "Nearly one million of operatives are employed in the manufacture of cotton in Great Britain, upon whom, at least five or six millions more depend for their daily subsistence . It is no exaggeration to say, that one - quarter of the inhabitants of England are directly dependent upon the supply of cotton for their living ." Despite these consequences, Great Britain concluded that their decision was crucial in terms of reaching abolishment of slavery in the states . </P> <P> The Confederacy constructed torpedo boats, tending to be small, fast steam launches equipped with spar torpedoes, to attack the blockading fleet . Some torpedo boats were refitted steam launches; others, such as the CSS David class, were purpose - built . The torpedo boats tried to attack under cover of night by ramming the spar torpedo into the hull of the blockading ship, then backing off and detonating the explosive . The torpedo boats were not very effective and were easily countered by simple measures such as hanging chains over the sides of ships to foul the screws of the torpedo boats, or encircling the ships with wooden booms to trap the torpedoes at a distance . </P> <P> One historically notable naval action was the attack of the Confederate submarine H.L. Hunley, a hand - powered submarine launched from Charleston, South Carolina, against Union blockade ships . On the night of 17 February 1864, Hunley attacked Housatonic . The Housatonic sank with the loss of five crew; the Hunley also sank, taking her crew of eight to the bottom . </P>

Union general planned to destroy the south's economy with a naval blockade of southern ports