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VETERANS or the Union Army, returning to their home towns in New England or the Middle Atlantic states after the war were surprised at what they saw. They had grown up in towns where most of the people lived by farming, while the rest sold things to farmers or worked in local workshops. Perhaps a mill and a factory had stood on the bank of the town’s river. The farms, stores and workshops remained, but now there were many new brick buildings used for factories, mills and warehouses. American industry, concentrated in the river valleys and ocean ports of the northeast, had grown with a rush during the Civil War. Behind the fighting lines, factories had turned out rails and telegraph wires, rifles and bullets, boots, uniforms, blankets, tents — all the articles needed for the Union forces. These products of Northern industry made a big difference on the battlefields. Before the war, the South had been an agricultural land, with large plantations worked by slaves and smaller farms worked by poor white farmers. Cotton was the big crop and great quantities of it were sold, especially to the mills of Great Britain. The wealth of the South, based on the unpaid labour of slaves, had given it as much influence within the nation as the North, which was partly agricultural and partly industrial. The South had little industry. When war came, it was unable to keep its fighting men supplied with weapons and other needs. The ill-equipped Southerners were worn down by the well-equipped Northerners, until finally they were completely defeated. The victory of the Union upset the balance of power between the North and the South. With the freeing of the slaves, most of the Southern planters were ruined, while the leaders of industry in the North were …

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