Slavery and the Northern Economy

Teaching Hard History 2025 hero

Season 1: American Slavery 

Episode 3: Slavery and the Northern Economy

When we think of slavery as a strictly Southern institution, we perpetuate a “dangerous fiction,” according to historian Christy Clark-Pujara. This episode examines the role the North played in perpetuating slavery and the truth behind the phrase “slavery built the United States.” 

Essential Ideas From This Episode

We misunderstand the institution of slavery when we only locate it on Southern plantations and don’t acknowledge the role Northern people played in the maintenance of the institution. And we misunderstand the history of the United States when we don’t acknowledge that the institution of slavery was national rather than regional. 

How was commerce in the North integral to perpetuating slavery? And how was the Northern economy in many ways built on its active participation in the institution? Understanding the role of slavery in the Northern economy ultimately raises important questions about the United States and its economy today. 

Jeffries points out essential lessons about slavery he learned as an undergraduate student that challenged his misconceptions: 

“I learned about the practice of slavery in the North, about the critical role that the region played in maintaining the institution, first by financing the transatlantic slave trade and then by fueling demand for products produced by enslaved people. I learned that slavery was anything but a Southern thing.”

For a more comprehensive understanding of the history and legacy of American slavery, we must confront and challenge the notion that slavery was simply a Southern institution. 

Enslaved and Free Black People Helped Build the Northern Colonies and States 

Key Concept 2: Slavery and the slave trade were central to the development and growth of the colonial economies and what is now the United States. In this short video, historian Adam Rothman traces how the labor of enslaved people in an area just outside New Orleans rippled across the globe to create wealth for the growing nation. 

Thinking of slavery as simply a Southern institution, rather than a national one, erases or marginalizes the Northern Black experience and the centrality of the business of slavery to the Northern economy. 

  • This allows for a dangerous fiction: that the North has no history of racism to overcome.
  • It also feeds into a false narrative that Black people were not part of the founding of the Northern colonies.
  • The focus on slavery in the South leads to thinking that the North has no need to redress institutional racism or work toward reconciliation.
  • And that furthers the false narrative that contemporary racial disparities are not grounded in history but reflect poor personal choices or innate inferiority. 

Enslaved and free Black people called the Northern colonies and states home, and the histories of those places remain incomplete without including the experiences of Black people. Without a full accounting of the role that enslaved and free Black people played and the centrality of the business of slavery in the founding, maintenance and economic ascent of the United States, objections to righting the wrongs of the nation’s past will remain.

Whether it is affirmative action at our institutions of higher education or addressing racial disparities in mass incarceration, we must remember that our interpretations of the past shape who we think of as worthy, contributing members of our nation. In many ways, slavery, the stalled emancipation process and circumscribed Black freedom cast people of African descent as apart from the nation — even though their labors were central to its creation. A lack of understanding of how race-based slavery and its legacies marginalized people for centuries further ostracizes people of African descent today.

The Business of Slavery Was Essential to the Institution of Slavery

Slave plantations did not exist in isolation. To thrive, they depended on the activities of people outside the plantation who brought captives, food, clothing and other necessities and transported the goods produced by enslaved people. The business of slavery was essential to the institution of slavery.

Christy Clark-Pujara is the author of Dark Work: The Business of Slavery in Rhode Island

Watch the video of Brown University’s “Evening Talk With Christy Clark-Pujara.”

  • The business of slavery included all economic activity directly related to the maintenance of slaveholding in the Americas.
  • How were enslaved people brought to the plantation? How were they fed? How were they clothed? Where did the seeds for crops come from? Where did the money come from to invest in plantations? From where and how were products exported?
  • An expanded understanding of slavery beyond the plantation is essential. Enslaved people labored in many places, including small households throughout the Northeast, on docks and on slave ships, to name a few. 

Examining the business of slavery allows for a more comprehensive picture of the economic systems that sustained and maintained race-based slavery throughout the Americas. Let’s look at three examples of the business of slavery in the North: the West Indian trade, the Atlantic slave trade, and the 19th-century economy and textile industry, particularly around the commodity of cotton.

Example 1: The Northern Economy and the West Indian Trade

Sugar production forever changed the Western diet. Sugar plantations in the Americas began operating in the 17th century, with sugar first being cultivated in the Caribbean. As the demand for sugar grew, these plantations became increasingly dependent on Northern American colonists. 

  • Most of the land in the Caribbean was used for sugar production, so they imported food and other necessities.
  • And New England farmers and merchants provided those necessities to the West Indian sugar plantations.
  • In return, New Englanders received molasses, a byproduct of sugar production, which they distilled into rum. Rum became a major New England export.
  • In Rhode Island, rum was the number-one export. In the city of Newport alone, there were 16 distilleries. And in the 18th century, rum became its own form of currency. 

In a place like Rhode Island, the connections were even more salient. Local enslaved people played a key role in the growth of commerce. 

  • The abundant plantations of the West Indies provided farmers and merchants with a market for their goods produced by enslaved people.
  • Farmers in the Narragansett country enslaved thousands of men, women and children to produce foodstuffs and raise livestock for the West Indian trade.
  • Merchants in Newport and Providence transported local agriculture, especially livestock and cheese, to the sugar plantations in the West Indies in exchange for molasses.
  • The same merchants then brought back molasses to Rhode Island and sold it to local distillers, who then used it to make rum, the colony’s number-one export. 

This trade was the cornerstone of the economy in Rhode Island.

Example 2: The Northern Economy and the Atlantic Slave Trade

The Atlantic slave trade complemented the West Indian trade. In 1773, the sloop Adventure, owned by Christopher and George Champlin, sailed from Newport, Rhode Island, with the captain, officers and 11 sailors aboard. The bulk of the departing cargo consisted of local products. The Adventure was outfitted with handcuffs and shackles made by local blacksmiths, 26 gallons of vinegar, pork, beef, sugar, molasses, wine, beans, tobacco, butter, bread and flour. This food was to feed the crew and enslaved people on the return voyage. Most of the cargo space, however, was reserved for locally distilled rum — 24,380 gallons of rum — which was enough to purchase several dozen enslaved captives. Enslaved women cost an average of 190 gallons and men an average of 220 gallons.

The Adventure reached Africa in five weeks. It took the captain four months of cruising along the coast to acquire 62 slaves, along with rice, pepper, palm oil and gold dust. Fifty-eight captives survived, and they were sold in Granada for between 35 and 39 pounds. The ship’s owners received a 5 percent return on their investment. Such voyages were common in Rhode Island. Slave-trading voyages produced profits from 2 to 10 percent. Most voyages yielded returns of 5 or 6 percent. And while these profit margins might seem low by contemporary investment standards, investments in the Atlantic slave trade were less risky and more liquid and needed less time to garner returns than other forms of possible investment in the 18th century.

But it wasn’t just the transfer of captives from point A to point B. The Atlantic slave trade created an economy within itself, and especially in relation to the bilateral trade between the Northern colonies and the West Indies. It’s important that we think about the wider implications of the West Indian and Atlantic slave trades.

  • Shipbuilders, sailors, corkers, sailmakers, carpenters, blacksmiths, painters and stevedores were all employed by the West Indian and Atlantic slave trades.
  • Coopers made barrels that stored the rum that was exchanged for enslaved people, who were sold throughout the Americas.
  • Clerks, scribes and warehouse overseers conducted the business of the trade.
  • Outfitting even the smallest ship required a small army of tradesmen. African slave-trading voyages also required additional crew to manage the human captives, usually twice as many than a commodity’s trade.
  • Merchants, many of whom were slave traders, paid significant taxes to the cities for public works. For example, the duties collected on the purchase and sale of enslaved people in Rhode Island were used to pave the streets of Newport. So, whether colonists owned enslaved people, they benefited from the business of slavery.

From the colonial period through the American Revolution, slaveholding was considered socially acceptable, legally sanctioned and widely practiced in the North. But after the Revolution, slavery as an institution and slaveholding as a practice began to fall apart in the North. Slavery ended in these places. The primary reason was that the business of slavery was more important in the North than slave labor itself, and most Northerners were opposed to slavery’s expansion, not its existence.

Example 3: The Northern Economy and Cotton in the 19th Century

The modern economy, cotton in the 19th century and how it transforms the U.S. economy is the engine behind the U.S. economic ascent, making the U.S. an economic powerhouse in the world. 

  • Enslaved African Americans in the Southern United States produced the bulk of the world’s cotton and almost all the cotton consumed by the U.S. textile industry prior to the Civil War.
  • Northerners, especially New Yorkers, bought, sold and shipped Southern cotton. By 1860, cotton represented more than half of all U.S. exports, and lower Manhattan was populated with cotton brokers, bankers, merchants, shippers, auctioneers and insurers who profited from that export.
  • Only New York banks were large enough to extend the massive lines of credit to plantation owners so they could buy seed, farming equipment and people.
  • New York was also home to the water and rail transportation companies that shipped cotton from the South to the North.

When we think about the Industrial Revolution and public investment in rail lines and shipping industry, we often don’t connect that history with the institution of slavery. But the institution of slavery and cotton were the impetus for many Northern industries. 

  • During the 19th century, the textile industry transformed Northern towns. By 1852, the industry employed 14 percent of the labor force, and by 1860, New England was home to 472 cotton mills.
  • These textile factories were often the sole employers in towns throughout the region, and they directly link Northern advancement and wealth with Southern slavery.
  • Textile mills are just one example. Manufacturing plants throughout the North, and in New England in particular, produced farming implements that were sold to Southern plantation owners to be used by enslaved people.
  • Factories that produced shoes often made shoes for enslaved people who wore them in the fields. 
     

So, the manufacturing industry, as it existed in the 19th century, was directly connected to the plantation.

Rhode Island, again, provides a salient example of the connection between Northern investment and Southern slaveholding. 

  • Between 1800 and 1860, more than 80 Negro cloth mills opened in Rhode Island.
  • Twenty-two Rhode Island towns and cities manufactured Negro cloth for over 60 years.
  • More than 80 Rhode Island families owned part of a Negro cloth mill at some point in the 19th century.
  • By mid-century, 79 percent of all Rhode Island textile mills manufactured clothing for enslaved people.
  • In the famed Lowell Mills, about a third of all textiles produced were destined for Southern markets, plantations in particular.

New York was transformed by those who were invested in cotton and the business of slavery. 

  • Lehman Brothers began as cotton brokers.
  • The first Morgan fortune was made by Charles Morgan, whose shipping line dominated the Gulf coastline, transporting enslaved captives from the upper South to the Deep South.
  • Alexander Stewart, a cotton merchant, opened the first department store in New York City in 1848. New York remains a fashion capital of the world, and its first department store was opened with investments in cotton picked by enslaved people.

Recognizing that the business of slavery was national rather than regional is essential to realizing that people in the North also benefited from slavery. Further, we have all benefited from slavery because the U.S. became an economic world power through the exploitation of millions of people of African descent. 

When people say, “Slavery built the United States,” that is not hyperbole. It reflects the truth and encourages us to examine what that means for racial disparities today. People of African descent are an essential part of this country and its history; they are not an add-on. African American history isn’t an additive; it is central to understanding American history.