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). By 1860, one quarter of all Northerners lived in urban areas.
Between 1800 and 1860, the percentage of laborers working in agricultural
pursuits dropped drastically from 70% to only 40%.
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. Although two-thirds of Southerners owned no slaves at all, by 1860 the
South's "peculiar
institution"
was inextricably tied to the region's economy and culture.
