Answer: In the decades before the Civil War, northern and southern development followed increasingly different paths. By 1860, the North contained 50 percent more people than the South. It was more urbanized and attracted many more European immigrants. The northern economy was more diversified into agricultural, commercial, manufacturing, financial, and transportation sectors. In contrast, the South had smaller and fewer cities and a third of its population lived in slavery. In the South, slavery impeded the development of industry and cities and discouraged technological innovation. Nevertheless, the South was wealthy and its economy was rapidly growing. The southern economy largely financed the Industrial Revolution in the United States, and stimulated the development of industries in the North to service southern agriculture.