Even more significant than this advance of population into the region north of the Ohio was the contemporaneous movement from the Southern Seaboard States into the cotton lands of the Gulf plains. The way had been prepared by Andrew Jackson's conquest of the Creeks. Alabama was the immediate goal of the migrating Southerner. From Kentucky, also, but more particularly from Tennessee, stalwart pioneers entered this new El Dorado. The father of Jefferson Davis was one of those who tried their luck in the alluvial plains of the lower Mississippi. By the year 1820, the area of settlement had extended from southern Tennessee to Mobile, and from Mobile to the Mississippi along the Gulf.

The causes and consequences of this colonization of the Southwest form a vital chapter in the economic history of the country. In the year before the war, Virginia, the Carolinas, and Georgia produced 75,000,000 pounds of cotton; the only other cotton-raising States, Tennessee and Louisiana, produced 5,000,000 pounds. Ten years later, the Seaboard States raised 117,000,000 pounds; the Southwest, 60,000,000. In another decade the States of the Southwest had outstripped the Old South. This comparison throws a flood of light upon Southern history. The invention of the cotton gin had made possible the cultivation of the short-staple cotton plant, which was the only variety that could be raised profitably in the uplands. Occurring just at the moment when the use of the power loom in factories was giving an unprecedented stimulus to the manufacture of cotton, the cotton gin worked a revolution in Southern life and industry. From the tidewater, with its large plantations worked by African slaves, the cultivation of cotton passed into the region above the fall-line of the rivers, where the small farmer practiced a diversified agriculture. Socially and politically the two regions had always been distinct. The gentlemen planters of the tidewater, with much the same outlook as the English gentry of the same period, regarded the democratic yeomen of the Piedmont with distrust not unmixed with contempt. By excluding them from their proportionate representation in the state legislatures, the aristocratic planters maintained an ascendency which was at once political and social. But as cotton-growing became more profitable and advanced into the interior, the farmer of the uplands found himself pushed to the wall. Either he must adopt the plantation system and purchase slaves, or sell his land and move on. For want of capital large numbers chose the latter alternative and swelled the numbers of those who had already set their faces westward.

The communities which within six years after the Treaty of Ghent were admitted into the Union as the States of Mississippi and Alabama, did not at first differ materially from Indiana and Illinois, which became Commonwealths at the same time. Much the same obstacles confronted the pioneer in the pine forests of Mississippi as in the hard woods of the Northwest. Either as squatter or bona fide purchaser he had with the aid of his neighbors hewed out a clearing, or single-handed girdled the trees, and laid the sills of his log cabin. A "raising" or "frolic" was one of the few opportunities for social intercourse in the hard life of the frontiersman. Between the stumps of his clearing he planted his first crop of Indian corn; and what the soil did not yield for his sustenance, he supplied with his trusty rifle. Time wrought vast transformations in these new communities. The thriftless, who scratched the surface of the ground and then sold out to a newcomer of sterner fiber, passed on to a new frontier. Log cabins gave way to frame houses. Clearings became well-tilled farms. Better methods of cultivation extracted a surplus of produce which could be sent to market. Along the rivers of the Northwest, cities sprang up like mushrooms.

From this point the history of the Southwest diverged from that of the Northwest. The virgin lands of the Gulf attracted also the planter with his capital invested in African slaves. Once again the small farmer felt the combined pressure of social and economic forces. He saw his wealthier neighbor acquire the more fertile lands; he found himself thrust into a socially inferior class; and again he yielded to fate. While a democratic society of self-reliant yeomen was developing in the northern half of the Mississippi Valley, a society based upon a plantation economy and aristocratic in its outward characteristics was forming in the Gulf States. Yet in its aggressiveness and commercial enterprise, the new South resembled the Northwest rather than the old South.

While the South was producing staples for an ever-growing market, it became itself the market for the surplus products of the Northwest. An active internal trade sprang up between the sections in spite of the natural barriers to commercial intercourse. Live stock could be driven to market. It was a common occurrence to see droves of thousands of "razor-back" hogs on their way from Kentucky to the Seaboard States, feeding on nuts and roots by the way. Rivers were the chief highways for such produce as could not provide for its own locomotion. The Western waters floated all sorts of craft, from the lumber raft to the flatboat, laden with pork, cheese, butter, flour, corn, and whiskey. The greater part of these boats were makeshifts, and made no return voyage. It was not until 1809 that a barge was warped upstream from New Orleans to Nashville. The entire traffic on the Mississippi and the Ohio was carried on until 1817 in less than a score of keel boats, which made the voyage downstream from Louisville to New Orleans in about forty days, and upstream in ninety. When, then, a steamboat succeeded in making a return voyage in twenty-five days, it was hailed as an epoch-making performance. In the next year twenty steamboats were competing for the river traffic; and three years later (1820) seventy-two were in actual service. Yet the steamboat did not drive the flatboat from the Western rivers. So late as 1840 one fifth of the freight handled on the lower Mississippi was carried in flatboats or barges.

The rapid rise of this internal commerce between the farmer of the Northwest and the cotton planter of the South increased the ability of both to purchase manufactures in the Eastern markets. Both sections had wants which they could not supply by their simple household industries. They had to import not only their farming implements, but most of those articles, useful or ornamental, which were thought indispensable to a higher civilization. "Spots in Tennessee, in Ohio, and Kentucky," comments an English traveler, "that within the lifetime of even young men, witnessed only the arrow and the scalping knife, now present the traveler with articles of elegance and modes of luxury which might rival the displays of London and Paris." Most of this stock was transported over the mountains from Philadelphia or Baltimore. In 1820, three thousand wagons carried to Pittsburg, the distributing center of the West, nearly eighteen million dollars' worth of merchandise.