Examining the Economic Causes of the Civil War

U.S. History

More Money, More Problems… Examining the Economic Causes of the Civil War

While political reasons played an important role in the growing tension between the northern and southern states, politics were not the sole cause of the Civil War. Economics also created a rift between the North and the South. The United States economy grew at an unprecedented rate in the 1700 and 1800s. During certain decades, the U.S. economy was growing faster than that of any other nation. The factories of the North utilized the valuable natural resources found in this country to manufacture and sell goods at home and aboard. The slave-based agricultural economy of the South brought great wealth to the region (and to the nation as a whole). Money, wealth and greed motivate people to do some pretty horrible things (slavery is but one example). The actions of both northern and southern states illustrate that economic sectionalism was taking place at the same time as the political sectionalism we’ve been discussing in class. Both the North and the South supported policies that would boost the economy of their own region, even if that policy would hurt another region of the United States.

Quick Response:

Which of the following means the same thing as unprecedented in the text above? a) relatively slow c) normal b) never before known d) happy

The Role of Slavery in the Southern Economy

Since colonial times, the economies of the North and the South differed greatly. These economic differences are rooted in the fact that the physical geographies of the two regions are very different. The rocky soil and harsh weather prevented the northern states from having an economy based on agricultural. It would not have been profitable (or possible) for the northern states to grow a surplus amount of crops. As a result, the northern states turned to manufacturing as a source of money. The South on the other hand was ideal for an agrarian economy. The soil was fertile, the land was relatively flat and the climate conditions provided for a much longer growing season. Because the economies of the two regions were different, so were the needs of the two regions.

Quick Response:

Which of the following means the same thing as agrarian in the text above? a) factory-based c) slave-based b) poor , slow growing d) farm-based

Surplus farming (meaning growing enough crops to sell for profit) is very labor intensive. In order for farmers to turn a substantial profit, farm owners would need a cheap form of labor. Some farmers employed indentured servants to work their fields. Indentured servants were considered the cheapest form of labor in the United States until the end of the 17th century when the price of slaves fell and the wealth of Americans began to increase. Wealthy families in the South operated plantations (gigantic farms that grew enormous amounts of surplus crops). These farms grew mainly tobacco, rice & indigo. In South Carolina, one of the biggest proponents of the institution of slavery, slaves made up 64% of the state’s population!

Quick Response:

Which of the following means the same thing as proponents in the text above? a) professionals c) supporters b) abolitionists d) those opposed to

After the invention of the cotton gin in 1793, slavery became an essential part of the southern economy. During the first half of the 19th century, cotton profits exceeded the value of all other crops combined! Plantation owners would never have been able to accumulate such incredibly large profits if they had to pay the laborers working their fields. Between 1790 and 1810, the slave population in the U.S. increased from 700,000 to 1,200,000! Even though the importation of new slaves had been outlawed in 1808, the practice continued illegally in the years that followed. Often times the ban of slave importation was only loosely enforced. While the North did use southern cotton in its textile mills, European countries were one of the biggest markets for southern cotton. As a result, the South wanted the federal government to remove trade barriers (i.e. taxes on imported goods and other trade restrictions) between the United States and Europe. Doing so would make it easier and more profitable for the South to sell its crops to European countries.

The North did not require slave labor as part of their economy. Northerners were only able to operate small, less profitable farms. Additionally, the majority of money being made in the North came from manufacturing (making products for sale – such as textiles and ships). Because the economy of the North was different from that of the South, their needs were also different. Whereas the South made most of its money from exporting its crops to Europe, the North made most of its money by selling its products domestically (to other Americans). In order to encourage people to buy “American-made goods”, northern states pressured the federal government to impose protective tariffs (taxes on foreign goods). By taxing foreign goods, Americans would be more inclined to purchase cheaper American products (thus boosting the economy of the North). In 1828 and again in 1832, the federal government passed Tariff Acts. These acts angered Europe, because it hurt the sales of their products in the United States. In response, European nations decreased the amount of crops they were getting from the South (hurting the southern economy).

The tariffs were the primary source of economic tension between the North and the South. Southern states were so angry that the federal government created these tariffs that one state, South Carolina, employed the doctrine of nullification in 1832. This essentially eliminated the import taxes on European good being sold in South Carolina. The North and the federal government both believed that nullification of any kind was unconstitutional. In 1833, the federal government prepared troops to enter South Carolina to enforce the tariff laws. South Carolina repealed its nullification of the tariff laws shortly afterwards.

Name: U.S. History Date: Core: Economic Causes of the Civil War: Fact Check

Directions: Use the More Money, More Problems…Examining the Economic Causes of the Civil War handout to answer the following questions. 1. The author writes, “Economics also created a rift between the North & the South.” Which of the following means about the same thing as “rift” in the sentence above? a. connection c. alliance b. divide d. misunderstanding

2. Briefly describe the driving force behind the North’s economy in the 1800s. ______

3. Briefly describe the driving force behind the South’s economy in the 1800s. ______

4. Which of the following statements could be supported the main idea of the first paragraph? a. The North relied on cotton from the South to make cloth in its textile factories. The North made lots of money manufacturing cloth. b. The Narrative of the Life of Frederick Douglass helped many northerners to understand that slavery was an immoral institution that should be abolished. c. Many of the slaves that were brought to the South were transported on ships made in northern shipyards. The South exported lots of cotton to Europe using ships manufactured in the North. d. The North favored federal tariffs because these taxes helped to boost their economy, even though the taxes indirectly hurt the southern economy.

I chose answer choice _____ because: ______(Be sure to state the main idea of the paragraph as support for your answer)

5. According to the text, what is the main factor that caused the North and the South to develop different economies? ______

6. Before slavery, what type of “cheap labor” did the South employ? ______

7. Which of the following is the biggest reason that the South used slave labor as a part of their economy? a. They had an agricultural economy (surplus farming) b. The invention of the cotton gin c. The importation of slaves was banned in 1808

I chose answer choice _____ because: ______

8. True or False. Beginning in 1808, it was nearly impossible to import slaves from Africa into the United States. I think that this statement is ______(true or false) because in the text it says: ______

9. Briefly explain how the protective tariffs of 1828, 1832 helped the northern economy. ______

10. Briefly explain how the protective tariffs of 1828, 1832 hurt the southern economy. ______

11. Why do you think the author chose the title “More Money, More Problems” for this article?

______