Interregional Slave Trade - Economics of The Interregional Slave Trade - Contributors To The Growth of Interregional Slave Trade

Contributors To The Growth of Interregional Slave Trade

Historians who argue in favor of soil exhaustion as an explanation for slave importation into the Deep South posit that exporting states emerged as slave producers because of the transformation of agriculture in the upper south and the increased demand for labor in the Deep South due to the success of sugar and cotton crops. Because of the deterioration of soil and an increase in demand for food products, states in the upper south shifted crop emphasis from tobacco to grain which required less slave labor. This decreased demand left states in the Upper South with an excess supply of labor.

At the same time, the invention of the cotton gin in the late 18th century transformed cotton into a profitable crop that could be grown inland in the Deep South. The consequent boom in the cotton industry coupled with the labor intensive nature of the crop created a need for slave labor in the Deep South that could be satisfied by excess supply further north.

The increased demand for labor in the Deep South pushed up the price of slaves in places like New Orleans. This created price differences between the Upper and Deep South. As a result, slave traders took advantage of this arbitrage opportunity by buying at lower prices in the Upper South and then sold slaves for a profit after transporting them further south. In addition, we can see the rising prevalence of “breeding” slaves for export in the Upper South where reproductive ability of women was advertised as selling point and a feature that increased value.

Although not as significant as the exportation of slaves to Deep South, the rising practice of using slaves as a cash substitute by farmers and land owners who needed to pay off loans contributed to the growth of the internal slave trade.