1. Economics in the New South

2. Remaking the Southern Economy
One of the many problems facing the South during Reconstruction was the uneven distribution of land between individuals—this even preceded the Civil War.
90% of southern land was owned by ~1/2 the South’s population.
This meant that most of the South’s economic wealth was in the hands of only half of the total population.
African Americans and poor whites were vying for land after the Civil War.

3. Remaking the Southern Economy
Two major plans for redistribution emerged to combat this uneven distribution:
Thaddeus Stevens (a Radical Republican) suggested that large plantations be taken away from once-wealthy owners and redistributed to freedman.
General Sherman proposed that every single freedman should receive ‘40 acres and a mule’– both land, and a means to turn it into profit.

4. A new type of Economy
Three new methods of farming developed during Reconstruction to combat the loss of capital and land. There were pros and cons to each method.
Pros
Cons
Sharecropping
Did not need cash to start
Did not pay for supplies
Tricked by landowners
Perpetually in debt
Live where told
Share-tenancy
Could choose the crop planted variety
Purchase own supplies
Had to pay back portion of sales to landowner
Tenant-farming
Choose crop
Managed by the farmer
Choice of where to live
Needed good money-management skills
High financial risk

5. Remaking the Southern Economy
Sharecropping= landowner dictates the crop, and provides sharecropper with housing and supplies in return for a ‘share’ of the crop’s price at market.
‘Share’ was determined by landowner, at the end.
Share-tenancy= differed in that the worker could choose the crop and had to purchase own supplies.
‘Share’ still determined by landowner.
Tenant-farming= most independent form; pay rent to landowner, but could manage crop as they pleased.
Hardest to get started, but, could be most viable.

6. Industries in the South
After the Civil War, instead of shipping goods to the North for manufacturing, northern capital backed southern production of goods.
Farming also became diversified with additional crops such as grain, tobacco and fruits.
In order to transport goods from the South, railways were added and built by prison labor to keep costs down.
However, the South’s economy was still hampered by a lack of workers and a lack of capital following the Civil War.

7. Southern Farmers Face Hard Times
Even with the introduction of new crops, cotton still remained the dominant cash crop of the South.
After the war, a combination of lack of buyers and a boll weevil infestation severely hurt farmers’ profits.
To combat the loss of profits, farmers began lobbying for lower prices on supplies.
The local organizations of farmers gathered together to form the Farmer’s Alliance.
They lobbied the government to lower freight prices from railroads and the interest rates charged by banks.

8. Black Southerners Face Gains and Losses
Able to vote in elections and serve in the military;
Open businesses
Buy farmland
ACCESS TO EDUCATION
Losses:
Restrictions locally re: access to public accommodation
Faced intimidation and violence