Coal miners, in a photograph by Lewis Him. Mining was one occupation in which blacks and whites often worked side by side.

During the 1880s, Atlanta editor Henry Grady tirelessly promoted the promise of a New South, an era of prosperity based on industrial expansion and agricultural diversification. In fact, while planters, merchants, and industrialists prospered, the region as a whole sank deeper and deeper into poverty. Some industry did develop, including mining in the Appalachians, textile production in the Carolinas and Georgia, and furniture and cigarette manufacturing in certain southern cities. The new upcountry cotton factories offered jobs to entire families of poor whites from the surrounding countryside. But since the main attractions for investors were the South’s low wages and taxes and the availability of convict labor, these enterprises made little contribution to regional economic development. With the exception of Birmingham, Alabama, which by 1900 had developed into an important center for the manufacture of iron and steel, southern cities were mainly export centers for cotton, tobacco, and rice, with little industry or skilled labor. Overall, the region remained dependent on the North for capital and manufactured goods. In 1900, southern per capita income amounted to only 60 percent of the national average. As late as the 1930s, President Franklin D. Roosevelt would declare the South the nation’s “number one” economic problem.

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