Blood stop powder available in many brands found in farm stores contains ammonia alum or potassium alum, and works well to stop bleeding. Flour also works in a pinch. I haven't tried the pepper, but it sounds like it might be worth a try. I think it is supposed to be mixed in a paste in a link I read.
You don't need to make a paste - just apply it directly to the wound. It absorbs the blood and crusts over. I hadn't thought about flour - I suppose that anything that dries up the blood and solidifies will do the job.
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