Economy of the "New South" (College Board AP® US History)
Study Guide
Summary
Following Reconstruction, hopes were high for a new beginning in the South, an idea popularized as the “New South”. Advocates hoped for economic diversification and industrial growth to break away from an economy driven by plantations. In reality, the old way of life continued in the South but with new titles in the form of sharecropping and tenant farming. These systems continued to persecute African Americans and poorer White people.
New Slavery & Tenant Farming
The “New South”
The term “New South” was coined by Henry Grady, editor of The Atlantic Constitution newspaper
Grady encouraged the idea of a new beginning for the region with views of modernization and new economic opportunities
Grady promoted the idea of the South moving away from its dependence on plantation agriculture
He advocated for the building of factories and textile mills, and the development of railroad networks to integrate Southern cities into the national economy
Economy of the “New South”
Industrial growth
Some Southern cities experienced industrial growth
An example of this was Iron and steel production in Birmingham, Alabama
Textile mills were built closer to the cotton fields
This cut down on transport costs
It created new industrial hubs
Railroad tracks were significantly expanded to connect Southern cities to larger markets in the North and West
Dependence on agriculture
Despite industrial growth, agriculture continued to be the backbone of the South’s economy
Cotton and cash crops like tobacco dominated the economy
Plantation owners looked for ways to keep costs low
A new form of labor was needed after the abolition of slavery
Sharecropping/tenant farming
Sharecropping: Laborers (mainly African Americans and poorer White people) farmed land owned by wealthy landowners in exchange for a share of the crops
Tenant farming: A similar system where laborers rented the land but worked it for the owner in exchange for a portion of their harvest
These systems trapped farmers in a cycle of debt and poverty due to:
high interest rates on loans for seeds and tools
exploitative agreements that left farmers with little crop to sell after paying their rent
This became a new form of slavery as indebtedness would keep farmers from ever leaving the farms
Racial segregation
Racial segregation continued as before
Segregation laws and customs (for example, Jim Crow laws) reinforced a racially divided society
African Americans faced systemic barriers preventing them from escaping tenant farming or accessing other economic opportunities
Examiner Tips and Tricks
It is worth remembering that agricultural systems like sharecropping and tenant farming, whilst different from slavery, still trapped African Americans in cycles of debt and poverty. Connect these points to the South’s economy in your answers.
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