The Political Economy of Slavery: Studies in the Economy and Society of the Slave South

The Political Economy of Slavery: Studies in the Economy and Society of the Slave South

by Eugene D. Genovese

Hardcover(New Edition)



A stimulating analysis of the society and economy in the slave south.

Product Details

ISBN-13: 9780394704005
Publisher: Knopf Doubleday Publishing Group
Publication date: 01/28/1967
Edition description: New Edition
Pages: 304
Product dimensions: 4.33(w) x 7.09(h) x (d)

About the Author

EUGENE D. GENOVESE is Distinguished Professor of Arts and Sciences in the College of Arts and Sciences at the University of Rochester. In 1987-88 he was on leave at the Humanities Research Center in Research Triangle park, North Carolina, and in 1988-89 he was visiting professor at William and Mary. GENOVESE is former president (1979) of the Organization of American Historians and winner of the Bancroft Prize in 1974 for Roll, Jordan, Roll. He has written, in addition to The Political Economy of Slavery and Roll, Jordan, Roll, The World the Slaveholders Made (Wesleyan 1988), In Red and Black, From Rebellion to Revolution, and, with Elizabeth Fox-Genovese, Fruits of Merchant Capital. He is a graduate of Brooklyn College (B.A. 1953) and Columbia University (Ph.D. 1959). He has been visiting professor at Columbia, Yale, and Tulane and Pitt Professor of American History and Institutions at Cambridge University. His home is in Atlanta, Georgia.

Read an Excerpt


The Slave South: An Interpretation

The Problem

The uniqueness of the antebellum South continues to challenge the imagination of Americans, who, despite persistent attempts, cannot divert their attention from slavery. Nor should they, for slavery provided the foundation on which the South rose and grew. The master-slave relationship permeated Southern life and influenced relationships among free men. A full history would have to treat the impact of the Negro slave and of slaveless as well as slaveholding whites, but a first approximation, necessarily concerned with essentials, must focus on the slaveholders, who most directly exercised power over men and events. The hegemony of the slaveholders, presupposing the social and economic preponderance of great slave plantations, determined the character of the South. These men rose to power in a region embedded in a capitalist country, and their social system emerged as part of a capitalist world. Yet, a nonslaveholding European past and a shared experience in a new republic notwithstanding, they imparted to Southern life a special social, economic, political, ideological, and psychological content.

To dissolve that special content into an ill-defined agrarianism or an elusive planter capitalism would mean to sacrifice concern with the essential for concern with the transitional and peripheral. Neither of the two leading interpretations, which for many years have contended in a hazy and unreal battle, offers consistent and plausible answers to recurring questions, especially those bearing on the origins of the War for Southern Independence. The first of these interpretations considers the antebellum South an agrarian society fighting against the encroachments of industrial capitalism; the second considers the slave plantation merely a form of capitalist enterprise and suggests that the material differences between Northern and Southern capitalism were more apparent than real. These two views, which one would think contradictory, sometimes combine in the thesis that the agrarian nature of planter capitalism, for some reason, made coexistence with industrial capitalism difficult.

The first view cannot explain why some agrarian societies give rise to industrialization and some do not. A prosperous agricultural hinterland has generally served as a basis for industrial development by providing a home market for manufactures and a source of capital accumulation, and the prosperity of farmers has largely depended on the growth of industrial centers as markets for foodstuffs. In a capitalist society agriculture is one industry, or one set of industries, among many, and its conflict with manufacturing is one of many competitive rivalries. There must have been something unusual about an agriculture that generated violent opposition to the agrarian West as well as the industrial Northeast.

The second view, which is the more widely held, emphasizes that the plantation system produced for a distant market, responded to supply and demand, invested capital in land and slaves, and operated with funds borrowed from banks and factors. This, the more sophisticated of the two interpretations, cannot begin to explain the origins of the conflict with the North and does violence to elementary facts of antebellum Southern history.

Slavery and the Expansion of Capitalism

The proponents of the idea of planter capitalism draw heavily, wittingly or not, on Lewis C. Gray's theory of the genesis of the plantation system. Gray defines the plantation as a "capitalistic type of agricultural organization in which a considerable number of unfree laborers were employed under a unified direction and control in the production of a staple crop." Gray considers the plantation system inseparably linked with the international development of capitalism. He notes the plantation's need for large outlays of capital, its strong tendency toward specialization in a single crop, and its commercialism and argues that these appeared with the industrial revolution.

In modern times the plantation often rose under bourgeois auspices to provide industry with cheap raw materials, but the consequences were not always harmonious with bourgeois society. Colonial expansion produced three sometimes overlapping patterns: (1) the capitalists of the advanced country simply invested in colonial land — as illustrated even today by the practice of the United Fruit Company in the Caribbean; (2) the colonial planters were largely subservient to the advanced countries — as illustrated by the British West Indies before the abolition of slavery; and (3) the planters were able to win independence and build a society under their own direction — as illustrated by the Southern United States.

In alliance with the North, the planter-dominated South broke away from England, and political conditions in the new republic allowed it considerable freedom for self-development. The plantation society that had begun as an appendage of British capitalism ended as a powerful, largely autonomous civilization with aristocratic pretensions and possibilities, although it remained tied to the capitalist world by bonds of commodity production. The essential element in this distinct civilization was the slaveholders' domination, made possible by their command of labor. Slavery provided the basis for a special Southern economic and social life, special problems and tensions, and special laws of development.

The Rationality and Irrationality of Slave Society

Slave economies normally manifest irrational tendencies that inhibit economic development and endanger social stability. Max Weber, among the many scholars who have discussed the problem, has noted four important irrational features. First, the master cannot adjust the size of his labor force in accordance with business fluctuations. In particular, efficiency cannot readily be attained through the manipulation of the labor force if sentiment, custom, or community pressure makes separation of families difficult. Second, the capital outlay is much greater and riskier for slave labor than for free. Third, the domination of society by a planter class increases the risk of political influence in the market. Fourth, the sources of cheap labor usually dry up rather quickly, and beyond a certain point costs become excessively burdensome. Weber's remarks could be extended. Planters, for example, have little opportunity to select specifically trained workers for special tasks as they arise.

There are other telling features of this irrationality. Under capitalism the pressure of the competitive struggle and the bourgeois spirit of accumulation direct the greater part of profits back into production. The competitive side of Southern slavery produced a similar result, but one that was modified by the pronounced tendency to heavy consumption. Economic historians and sociologists have long noted the high propensity to consume among landed aristocracies. No doubt this difference has been one of degree. The greater part of slavery's profits also find their way back into production, but the method of reinvestment in the two systems is substantially different. Capitalism largely directs its profits into an expansion of plant and equipment, not labor; that is, economic progress is qualitative. Slavery, for economic reasons as well as for those of social prestige, directs its reinvestments along the same lines as the original investment — in slaves and land; that is, economic progress is quantitative.

In the South this weakness proved fatal for the slaveholders. They found themselves engaged in a growing conflict with Northern farmers and businessmen over such issues as tariffs, homesteads, internal improvements, and the decisive question of the balance of political power in the Union. The slow pace of their economic progress, in contrast to the long strides of their rivals to the north, threatened to undermine their political parity and result in a Southern defeat on all major issues of the day. The qualitative leaps in the Northern economy manifested themselves in a rapidly increasing population, an expanding productive plant, and growing political, ideological, and social boldness. The slaveholders' voice grew shriller and harsher as they contemplated impending disaster and sought solace in complaints of Northern aggression and exploitation.

Just as Southern slavery directed reinvestment along a path that led to economic stagnation, so too did it limit the volume of capital accumulated for investment of any kind. We need not reopen the tedious argument about the chronology of the plantation, the one-crop system, and slavery. While slavery existed, the South had to be bound to a plantation system and an agricultural economy based on a few crops. As a result, the South depended on Northern facilities, with inevitably mounting middlemen's charges. Less obvious was the capital drain occasioned by the importation of industrial goods. While the home market remained backward, Southern manufacturers had difficulty producing in sufficient quantities to keep costs and prices at levels competitive with Northerners. The attendant dependence on Northern and British imports intensified the outward flow of badly needed funds.

Most of the elements of irrationality were irrational only from a capitalist standpoint. The high propensity to consume luxuries, for example, has always been functional (socially if not economically rational) in aristocratic societies, for it has provided the ruling class with the façade necessary to control the middle and lower classes. Thomas R. Dew knew what he was doing when he defended the high personal expenditures of Southerners as proof of the superiority of the slave system. Few Southerners, even few slaveholders, could afford to spend lavishly and effect an aristocratic standard of living, but those few set the social tone for society. One wealthy planter with a great house and a reputation for living and entertaining on a grand scale could impress a whole community and keep before its humbler men the shining ideal of plantation magnificence. Consider Pascal's observation that the habit of seeing the king accompanied by guards, pomp, and all the paraphernalia designed to command respect and inspire awe will produce those reactions even when he appears alone and informally. In the popular mind he is assumed to be naturally an awe-inspiring being. In this manner, every dollar spent by the planters for elegant clothes, a college education for their children, or a lavish barbecue contributed to the political and social domination of their class. We may speak of the slave system's irrationality only in a strictly economic sense and then only to indicate the inability of the South to compete with Northern capitalism on the latter's grounds. The slaveholders, fighting for political power in an essentially capitalist Union, had to do just that.

Capitalist and Pseudo-Capitalist Features of the Slave Economy

The slave economy developed within, and was in a sense exploited by, the capitalist world market; consequently, slavery developed many ostensibly capitalist features, such as banking, commerce, and credit. These played a fundamentally different role in the South than in the North. Capitalism has absorbed and even encouraged many kinds of precapitalist social systems: serfdom, slavery, Oriental state enterprises, and others. It has introduced credit, finance, banking, and similar institutions where they did not previously exist. It is pointless to suggest that therefore nineteenth-century India and twentieth-century Saudi Arabia should be classified as capitalist countries. We need to analyze a few of the more important capitalist and pseudo-capitalist features of Southern slavery and especially to review the barriers to industrialization in order to appreciate the peculiar qualities of this remarkable and anachronistic society.

The defenders of the "planter-capitalism" thesis have noted the extensive commercial links between the plantation and the world market and the modest commercial bourgeoisie in the South and have concluded that there is no reason to predicate an antagonism between cotton producers and cotton merchants. However valid as a reply to the naive arguments of the proponents of the agrarianism-versus-industrialism thesis, this criticism has unjustifiably been twisted to suggest that the presence of commercial activity proves the predominance of capitalism in the South. Many precapitalist economic systems have had well-developed commercial relations, but if every commercial society is to be considered capitalist, the word loses all meaning. In general, commercial classes have supported the existing system of production. As Maurice Dobb observes, their fortunes are bound up with those of the dominant producers, and merchants are more likely to seek an extension of their middlemen's profits than to try to reshape the economic order.

We must concern ourselves primarily with capitalism as a social system, not merely with evidence of typically capitalistic economic practices. In the South extensive and complicated commercial relations with the world market permitted the growth of a small commercial bourgeoisie. The resultant fortunes flowed into slaveholding, which offered prestige and economic and social security in a planter-dominated society. Independent merchants found their businesses dependent on the patronage of the slaveholders. The merchants either became planters themselves or assumed a servile attitude toward the planters. The commercial bourgeoisie, such as it was, remained tied to the slaveholding interest, had little desire or opportunity to invest capital in industrial expansion, and adopted the prevailing aristocratic attitudes.

The Southern industrialists were in an analogous position, although one that was potentially subversive of the political power and ideological unity of the planters. The preponderance of planters and slaves on the countryside retarded the home market. The Southern yeomanry, unlike the Western, lacked the purchasing power to sustain rapid industrial development. The planters spent much of their money abroad for luxuries. The plantation market consisted primarily of the demand for cheap slave clothing and cheap agricultural implements for use or misuse by the slaves. Southern industrialism needed a sweeping agrarian revolution to provide it with cheap labor and a substantial rural market, but the Southern industrialists depended on the existing, limited, plantation market. Leading industrialists like William Gregg and Daniel Pratt were plantation-oriented and proslavery. They could hardly have been other.

The banking system of the South serves as an excellent illustration of an ostensibly capitalist institution that worked to augment the power of the planters and retard the development of the bourgeoisie. Southern banks functioned much as did those which the British introduced into Latin America, India, and Egypt during the nineteenth century. Although the British banks fostered dependence on British capital, they did not directly and willingly generate internal capitalist development. They were not sources of industrial capital but "large-scale clearing houses of mercantile finance vying in their interest charges with the local usurers."

The difference between the banking practices of the South and those of the West reflects the difference between slavery and agrarian capitalism. In the West, as in the Northeast, banks and credit facilities promoted a vigorous economic expansion. During the period of loose Western banking (1830–1844) credit flowed liberally into industrial development as well as into land purchases and internal improvements. Manufacturers and merchants dominated the boards of directors of Western banks, and landowners played a minor role. Undoubtedly, many urban businessmen speculated in land and had special interests in underwriting agricultural exports, but they gave attention to building up agricultural processing industries and urban enterprises, which guaranteed the region a many-sided economy.

The slave states paid considerable attention to the development of a conservative, stable banking system, which could guarantee the movement of staple crops and the extension of credit to the planters. Southern banks were primarily designed to lend the planters money for outlays that were economically feasible and socially acceptable in a slave society: the movement of crops, the purchase of land and slaves, and little else.

Whenever Southerners pursued easy-credit policies, thedamage done outweighed the advantages of increased production. This imbalance probably did not occur in the West, for easy credit made possible agricultural and industrial expansion of a diverse nature and, despite acute crises, established a firm basis for long-range prosperity. Easy credit in the South led to expansion of cotton production with concomitant overproduction and low prices; simultaneously, it increased the price of slaves.


Excerpted from "The Political Economy of Slavery"
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Copyright © 1989 Eugene D. Genovese.
Excerpted by permission of Wesleyan University Press.
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Table of Contents

Introduction to the Wesleyan Edition
List of Abbreviations
Part One: The Setting: The Slave South: An Interpretation
Part Two: Virgin Land and Servile Labor: The Low Productivity of Southern Slave Labor: Causes and Effects, The Negro Laborer in Africa and the Slave South, Cotton, Slavery, and Soil Exhaustion, Livestock in the Slave Economy, The Limits of Agricultural Reform
Part Three: The Subservience of Town to Country: The Significance of the Slave Plantation of Southern economic Development, The Industrialists under the Slave Regime, Slave Labor or Free in the Southern Factories: A Political Analysis of and Economic Debate• Part Four: The General Crisis of the Slave South: Origins of Slavery Expansionism
A Note on the Place of Economics in the Political Economy of Slavery
Epilogue: The Slave Economies in Political Perspectives (With Elizabeth Fox-Genovese)
Bibliographical Note

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