When did the American Civil War break out?

1861

The correct answer is Option 1 - 1861

The American Civil War broke out in 1861.

Before the 1860s, three-fourths of raw cotton imports into Britain came from America. British cotton manufacturers had for long been worried about this dependence on American supplies. What would happen if this source was cut off? Troubled by this question, they eagerly looked for alternative sources of supply. When the American Civil War broke out in 1861, a wave of panic spread through cotton circles in Britain. Raw cotton imports from America fell to less than three per cent of the normal: from over 2,000,000 bales (of 400 lbs each) in 1861 to 55,000 bales in 1862. Frantic messages were sent to India and elsewhere to increase cotton exports to Britain. In Bombay, cotton merchants visited the cotton districts to assess supplies and encourage cultivation.