Industrialists In The South Established A Significant And Diverse Manufacturing Industry Prior To The Civil War

The first fact about Confederate Manufacturing is that industrialists in the south established a significant and diverse manufacturing industry prior to the civil war. The states that would become the Confederacy "ranked among the industrial countries of the world," as one historian described it. The South was still largely an agricultural region in 1860, and it was heavily reliant on exporting its primary foods to the global market. The most valuable export from the United States by 1815 was cotton, and by 1840 it was worth more than all other exports put together. However, while producing two-thirds of the world's cotton, the southern states had limited industrial capacity, only approximately 29% of the nation's railroad tracks, and only 13% of its banks. Although the South did try exploiting slave labor in industries, its agricultural economy served it well for the most part.

There were no intrinsic economic obstacles in the South that caused a later pace of industrial development. The South was very wealthy, but it was mostly dependent on the slave trade. In 1860, the economic value of slaves in the United States was greater than the total value of the country's banks, factories, and railroads. Cotton cost an all-time high on the eve of the Civil War. The Confederate leaders believed that the South would receive the diplomatic and military support it needed to win because of the value of cotton on the international market, particularly in England and France.