The northern soil
and climate favored smaller farmsteads rather than large plantations. Industry
flourished, fueled by more abundant natural resources than in the South, and
many large cities were established (New York was the largest city with more
than 800,000 inhabitants). The
fertile soil and warm climate of the South made it ideal for large-scale farms
and crops like tobacco and cotton. Because agriculture was so profitable few
Southerners saw a need for industrial development. Eighty percent of the labor
force worked on the farm.