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North and South were heavily dependent on each other during the years before the Civil War. The South produced materials (especially tobacco and cotton) which were America's chief export goods. The southern states exported around 80% of the goods that brought cash into the American economy.

However, there was a price for all that wealth. The southern states did not develop a strong manufacturing economy. Most manufactured goods were made in the northern states or in Britain or France. The southern states imported tools, supplies, implements, shoes, clothing.

A more controversial portion of the picture is the money. Most southern plantations were heavily in debt. Despite exporting huge quantities of cash crops, plantations were not all that profitable. Slaves cost a great deal of money. Slaves had to be housed, fed, clothed, supervised, and guarded all year long even if the growing season was only 6 months. The south's cash crops also consumed the nutrients in the soil and before the mass production of chemical fertilizers this meant farming on ever larger pieces of land, and all that land cost money. Southern plantation owners borrowed heavily from northern banks in New York and Boston (and England, also). They lived a lavish lifestyle on borrowed money, and they depended on the north to supply it.

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Tavares Cole

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Q: Why was the North dependent on the South economically?
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What were the differences between the economy of North and the South?

the north had lots of factories and such while the south had the crop growing and slavery.the slaves had to handpick the cotton until the cotton gin came along.Generally speaking the main differences between the economic situation between the North and the South were the following:1. The South was primarily an economy based on agriculture;2. The North had both a developed manufacturing base along with farmlands that were out of reach by Confederate forces;3. For the most part the South was undeveloped in terms of a strong industrial base; and4. The South was highly dependent economically on slavery.