The northern soil and climate favored smaller farmsteads rather than large plantations. Industry flourished, fueled by more abundant natural resources than in the South, and many large cities were established (New York was the largest city with more than 800,000 inhabitants). The fertile soil and warm climate of the South made it ideal for large-scale farms and crops like tobacco and cotton. Because agriculture was so profitable few Southerners saw a need for industrial development. Eighty percent of the labor force worked on the farm.
