The Economics of the civil war: national and local perspectives
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National Perspective
In the decades prior to the U.S. Civil War, two economies emerged: an economy of the North and an economy of the South. The Northern economy, though not monolithic (there were many regional differences) heavily favored manufacturing. Occupations included “wage laborers, farmers, skilled tradesmen, professionals, and myriad others” (Masur, 2011). There was also a massive influx of European immigrants, which swelled the population of the North. The construction of canals, railroads, and steamboats improved transportation and opened up new territories for settlement.
White Southerners aristocrats prior to the Civil War were receiving vast amounts of wealth from cotton. The invention of the cotton gin made the harvesting of cotton so much more efficient and profitable that cotton became known as “King Cotton.” In fact, the South in 1860 exported ¾ of the world’s cotton supply (Masur, 2011). The following are statistics on white ownership of slaves in 1860:
25% of whites owned 5 or fewer slaves
3% of whites (aristocracy) owned 20 or more slaves
72% of whites were yeomen farmers and did not own slaves
What’s striking about these numbers is that the vast majority of white southerners did not own slaves at all. Nevertheless, a potent combination of a desire for upward mobility and a culture centered on white supremacy and a common racial ideology united white southerners in their desire to maintain the economic status quo (Masur, 2011).
In the decades prior to the U.S. Civil War, two economies emerged: an economy of the North and an economy of the South. The Northern economy, though not monolithic (there were many regional differences) heavily favored manufacturing. Occupations included “wage laborers, farmers, skilled tradesmen, professionals, and myriad others” (Masur, 2011). There was also a massive influx of European immigrants, which swelled the population of the North. The construction of canals, railroads, and steamboats improved transportation and opened up new territories for settlement.
White Southerners aristocrats prior to the Civil War were receiving vast amounts of wealth from cotton. The invention of the cotton gin made the harvesting of cotton so much more efficient and profitable that cotton became known as “King Cotton.” In fact, the South in 1860 exported ¾ of the world’s cotton supply (Masur, 2011). The following are statistics on white ownership of slaves in 1860:
25% of whites owned 5 or fewer slaves
3% of whites (aristocracy) owned 20 or more slaves
72% of whites were yeomen farmers and did not own slaves
What’s striking about these numbers is that the vast majority of white southerners did not own slaves at all. Nevertheless, a potent combination of a desire for upward mobility and a culture centered on white supremacy and a common racial ideology united white southerners in their desire to maintain the economic status quo (Masur, 2011).
Local Perspective
The U.S. Civil War produced mixed economic results for the City of Charlotte depending on what was occurring during the war. At the start of the war, Charlotte quickly felt the impact of the naval blockade of southern ports. The Western Democrat, a local newspaper, apologized for the worsening quality of its ink, for example. Some businesses saw the war as a boon. This included the tailoring firms of J. Smith Phillips and Fullings & Springs, which had contracted to manufacture clothing for the Confederate Army. Another boon to the economy of Charlotte was its position as a railroad hub. Thousands of Confederate soldiers passed through the city on their journey north (Hardy, 2012). Arrival of the Navy Yard The most important economic event in Charlotte during the Civil War was the arrival of the Confederate Navy Yard in 1862. After the majority of southern ports were at risk of capture by Northern forces, the Confederates had to look beyond Norfolk, where the Confederate Navy Yard was originally located. Due to the intersection of the railroads, Charlotte was designated the best location for the Confederate Navy Yard. The navy yard was constructed in about a year. Unlike many southern cities, Charlotte’s commercial district expanded during the war due to the influx of wartime industry that came with the Confederate Navy Yard (Hardy, 2012). |
The End of the War and Reconstruction Charlotte
Charlotte and Mecklenburg County largely avoided the destruction of its infrastructure, unlike most Confederate cities. But it did experience the economic and social upheaval that came with the emancipation of the slaves. Charlotte experienced an economic boom in the two decades after the Civil War due to the creation of textile mills in Charlotte. The two most important figures in the growth of Charlotte were Edward Dilworth Latta and Daniel Augustus Tompkins. Latta and Tompkins brought with them a vision for the “New South.” Entrepreneurs like Latta and Tompkins believed that the revival of the South relied not on traditional farming, but in “industrialization, urbanization, and scientific agriculture; and they took advantage of the new economic opportunities afforded by the growth of manufacturing and the rise of sizable urban areas” (Morrill, 2001). The economic efforts of these two men increased the population of Charlotte from 7,094 in 1880 to 46,338 in 1920. There was a strong downside to this economic growth. D.A. Tompkins cloaked his White Supremacist views in the language of what he called “Anglo-Saxon” values, he was opposed to child labor laws, and made his mill workers work in horrid conditions (Morrill, 2001).
Charlotte and Mecklenburg County largely avoided the destruction of its infrastructure, unlike most Confederate cities. But it did experience the economic and social upheaval that came with the emancipation of the slaves. Charlotte experienced an economic boom in the two decades after the Civil War due to the creation of textile mills in Charlotte. The two most important figures in the growth of Charlotte were Edward Dilworth Latta and Daniel Augustus Tompkins. Latta and Tompkins brought with them a vision for the “New South.” Entrepreneurs like Latta and Tompkins believed that the revival of the South relied not on traditional farming, but in “industrialization, urbanization, and scientific agriculture; and they took advantage of the new economic opportunities afforded by the growth of manufacturing and the rise of sizable urban areas” (Morrill, 2001). The economic efforts of these two men increased the population of Charlotte from 7,094 in 1880 to 46,338 in 1920. There was a strong downside to this economic growth. D.A. Tompkins cloaked his White Supremacist views in the language of what he called “Anglo-Saxon” values, he was opposed to child labor laws, and made his mill workers work in horrid conditions (Morrill, 2001).