Wealth Distribution in the Pre-Civil War South

Wealth was not well distributed and most whites were poor. Nonetheless, there were minimal class tensions in the South among whites because they were united by racism. One source writes:

The South prospered, but its wealth was very unequally distributed. Upward social mobility did not exist for the millions of slaves who produced a good portion of the nation’s wealth, while poor southern whites envisioned a day when they might rise enough in the world to own slaves of their own. Because of the cotton boom, there were more millionaires per capita in the Mississippi River Valley by 1860 than anywhere else in the United States. However, in that same year, only 3 percent of whites owned more than fifty slaves, and two-thirds of white households in the South did not own any slaves at all. Distribution of wealth in the South became less democratic over time; fewer whites owned slaves in 1860 than in 1840.

At the top of southern white society stood the planter elite, which comprised two groups. In the Upper South, an aristocratic gentry, generation upon generation of whom had grown up with slavery, held a privileged place. In the Deep South, an elite group of slaveholders gained new wealth from cotton. Some members of this group hailed from established families in the eastern states (Virginia and the Carolinas), while others came from humbler backgrounds. South Carolinian Nathaniel Heyward, a wealthy rice planter and member of the aristocratic gentry, came from an established family and sat atop the pyramid of southern slaveholders. He amassed an enormous estate; in 1850, he owned more than eighteen hundred slaves. When he died in 1851, he left an estate worth more than $2 million (approximately $63 million in 2014 dollars).

Wealthy plantation owners like Edward Lloyd came close to forming an American ruling class in the years before the Civil War. They helped shape foreign and domestic policy with one goal in view: to expand the power and reach of the cotton kingdom of the South. Socially, they cultivated a refined manner and believed whites, especially members of their class, should not perform manual labor. Rather, they created an identity for themselves based on a world of leisure in which horse racing and entertainment mattered greatly, and where the enslavement of others was the bedrock of civilization.

Below the wealthy planters were the yeoman farmers, or small landowners. Below yeomen were poor, landless whites, who made up the majority of whites in the South. These landless white men dreamed of owning land and slaves and served as slave overseers, drivers, and traders in the southern economy. In fact, owning land and slaves provided one of the only opportunities for upward social and economic mobility. In the South, living the American dream meant possessing slaves, producing cotton, and owning land.

Despite this unequal distribution of wealth, non-slaveholding whites shared with white planters a common set of values, most notably a belief in white supremacy. Whites, whether rich or poor, were bound together by racism. Slavery defused class tensions among them, because no matter how poor they were, white southerners had race in common with the mighty plantation owners. Non-slaveholders accepted the rule of the planters as defenders of their shared interest in maintaining a racial hierarchy. Significantly, all whites were also bound together by the constant, prevailing fear of slave uprisings.

Because race bound all whites together as members of the master race, non-slaveholding whites took part in civil duties. They served on juries and voted. They also engaged in the daily rounds of maintaining slavery by serving on neighborhood patrols to ensure that slaves did not escape and that rebellions did not occur. The practical consequence of such activities was that the institution of slavery, and its perpetuation, became a source of commonality among different economic and social tiers that otherwise were separated by a gulf of difference.

Southern planters exerted a powerful influence on the federal government. Seven of the first eleven presidents owned slaves, and more than half of the Supreme Court justices who served on the court from its inception to the Civil War came from slaveholding states. However, southern white yeoman farmers generally did not support an active federal government. They were suspicious of the state bank and supported President Jackson’s dismantling of the Second Bank of the United States. They also did not support taxes to create internal improvements such as canals and railroads; to them, government involvement in the economic life of the nation disrupted what they perceived as the natural workings of the economy. They also feared a strong national government might tamper with slavery.

With the rise of democracy during the Jacksonian era in the 1830s, slaveholders worried about the power of the majority. If political power went to a majority that was hostile to slavery, the South—and the honor of white southerners—would be imperiled. White southerners keen on preserving the institution of slavery bristled at what they perceived to be northern attempts to deprive them of their livelihood. Powerful southerners like South Carolinian John C. Calhoun highlighted laws like the Tariff of 1828 as evidence of the North’s desire to destroy the southern economy and, by extension, its culture. Such a tariff, he and others concluded, would disproportionately harm the South, which relied heavily on imports, and benefit the North, which would receive protections for its manufacturing centers. The tariff appeared to open the door for other federal initiatives, including the abolition of slavery. Because of this perceived threat to southern society, Calhoun argued that states could nullify federal laws. This belief illustrated the importance of the states’ rights argument to the southern states. It also showed slaveholders’ willingness to unite against the federal government when they believed it acted unjustly against their interests.

Although slavery is gone, remnants of the old elitist mindset are still common. For example, many people in the South still fear and strongly oppose a strong national government and its defense of civil liberties. They prefer authoritarian autocrats to exert power and shape society. The unequal wealth distribution of the pre-war South looks rather like the wealth distribution of today. Some things just don't seem to change much.

Based on 2010 survey data

Footnote:
Recent research suggests (summarized here) that the standard of living for most whites was higher than previous accounts from some writers who visited the Antebellum South in the 1840s through the pre-war 1860s. One observer wrote in 1863 that “for all practical purposes we may still regard Southern society as consisting of aristocratic planters and ‘white trash’”.