North . 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%. Slavery had died out, replaced in the cities and factories by immigrant labor from Europe. In fact an overwhelming majority of immigrants, seven out of every eight, settled in the North rather than the South. Transportation was easier in the North, which boasted more than two-thirds of the railroad tracks in the country and the economy was on an upswing. South . 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. In fact, there were almost as many blacks - but slaves and free - in the South as there were whites (4 million blacks and 5.5 million whites). There were no large cities aside from New Orleans, and most of the ones that did exist were located on rivers and coasts as shipping ports to send agricultural produce to European or Northern destinations.
Only one-tenth of Southerners lived in urban areas and transportation between cities was difficult, except by water. Only 35% of the nation's train tracks were located in the South. Also, in 1860, the South's agricultural economy was beginning to stall while the Northern manufacturers were experiencing a boom. The economic differences between the North and South contributed to the rise of regional populations with contrasting values and visions for the future.
