The United States had become a rapidly industrializing nation before the advance of the Civil War. Before and after the year 1790, the United States was consolidating itself as one nation, with new states gaining recognition. It was also a period of territorial expansion, and subsequently, economic growth. North (1966) notes that on the eve of the Civil War, the United States was an industrial nation second only to Britain in manufacturing. Specifically, North quotes that by 1860, the percentage distribution of world manufacturing output of the United Kingdom was 31.8 percent, while that of the United States was at 23.3 percent and Germany came at a distant third with 13.2 percent. The tremendous growth in the American economy from 1790 to 1860 can be attributed to the changes in agricultural production as well as the extensive transport system.
Conventionally, slavery in the United States before the year 1860 is associated with working in the extensive plantations. The most popular crop grown on the large plantations was cotton because of the high demand of textile products (Meyer, 2003). Cheap labor was readily available from the slaves, many of them from Africa. Since the demand for textile products was high, it became necessary for the cotton farmers to mechanize their operations to boost their production. Therefore, the revolution in agriculture occurred when farmers abandoned subsistence farming and embraced modern production methods and grew crops on large plantations.
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Changes in agricultural production also gave rise to an important aspect; the manufacturing sector. The population was growing and the demand for agricultural products was rising. The textile manufacturing sector developed rapidly. The production processes in the textile industry needed machinery, which at first comprised of spinning machines to produce yarn but later weaving machines as well as other mechanical equipment were added (Meyer, 2003). Just like the domino effect, the manufacturing sector required skilled individuals to operate and maintain the machines, and subsequently, other professions developed. For example, tailors would sew clothes, fashion designers would specify how they needed the clothes to look like, marketers sold the clothes, and many retail outlets emerged. The textile products would be produced both for domestic and export purposes. Evidently, jobs would be created, people would earn wages, and the economy would grow.
Changes in the transportation systems in the 1800s had a tremendous effect on the growth of the economy. The government and private individuals invested significant amounts of capital in canals in the 1820s and railroad transport after 1835 (Meyer, 2003). The canals were mainly constructed in coal mining and lumbering regions such as New York, Pennsylvania, and New Jersey. On the other hand, railroads mostly transported passengers, specifically within fifty to one hundred in some of the largest cities such as New York, Boston, Baltimore, and Philadelphia (Herrendorf, Schmitz, & Teixeira, 2012). The agricultural produce from the large plantation farms needed to reach the manufacturing plants as well as markets. Therefore, the extensive railroad network developed played a crucial role in enhancing efficiency in the manufacturing sector.
Summarily, the American economy on the eve of the Civil War mainly relied on agricultural production and exportation of the products. Cotton was the main cash crop grown because of the high demand of textile products around the world. The huge plantations and the subsequent development of the manufacturing sector boosted the growth of the economy because of the jobs that were created and the income generated. However, without the canals and the railroad network, perhaps the economy would not have grown so rapidly. The improved transport systems ensured that people moved from one place to another to work and goods to be transported to various markets.
References
Herrendorf, B., Schmitz, Jr, J. A., & Teixeira, A. (2012). The role of transportation in US economic development: 1840–1860. International Economic Review , 53 (3), 693-716.
Meyer, D. R. (2003). The Roots of American Industrialization, 1790–1860. Economic History Services , https://eh.net/encyclopedia/the-roots-of-american-industrialization-1790-1860/
North, D. (1966). The economic growth of the United States 1790-1860 (No. 330.9/D73e), https://archive.org/stream/economicgrowthof00nort/economicgrowthof00nort_djvu.txt
