When Washington was inaugurated, April 30, 1789, the United States reached from the Atlantic to the Mississippi, and from the Lake of the Woods, the Great Lakes, the St. Lawrence and St. Croix Rivers southward to Florida, which then extended to the Mississippi and was owned by Spain.

All of the threatening phases of the slave question had been compromised by the various provisions in the Constitution, and the common territory of the nation had been practically partitioned between Freedom and Slavery, with the Ohio River as the dividing line. With some exceptions the Northern States still possessed a large number of slaves, New York and New Jersey having the greatest number (33,000 out of the 40,000 still in the North), but not only in these States, but throughout the North, emancipation was making rapid progress.

The population of the country was scattered along the Atlantic seaboard, but the migration to the west of the Alleghanies had set in strongly both north and south of the Ohio River; the settlers from Virginia and the States south of her carrying with them, westward, the prejudices and customs of their mother States, while the settlers north of the Ohio River took with them into the wilderness the energy and thrift of the East, and its spirit of freedom and emancipation for all individuals, laying the foundation of those great States which, in later years, untrammeled by the commercial conservatism of the East, were so outspoken and sturdy in their expressions against slavery. The first census, taken in 1790, showed a population of 3,929,827, classed and divided between the North and South as follows:

Free
White. Negroes. Slave.
North ………. 1,900,976 27,109 40,370
South ………. 1,271,488 32,357 657,527

These figures are interesting because of the political effect that the population of the two sections had upon the representation in the House.

The South was still devoting herself to the raising of tobacco, rice, indigo, and several lesser staples, but since the close of the Revolution, owing to the dying out of the indigo plant, a new staple had received considerable attention. Cotton had been cultivated in Virginia by the early settlers, but little attention had been paid to it, and only enough was produced for domestic use; but after the close of the Revolution it gradually came to be cultivated in all the Southern States, and it was quickly discovered that being an indigenous plant it grew very rapidly, and the climate, soil and the great number of slaves at hand were favorable toward making it, with some attention, a most promising and valuable product.

The development of cotton manufacture had been gradual but certain to this period, which saw the triumph and use of the mechanical inventions of Hargreave, Arkwright, Crompton and Cartwright. The steam engine was introduced to supply motive power, and only one thing stood in the way of an enormous production of the new staple. The separation of the seed from the cotton fibre was a tedious and time-consuming task; one negro could only remove the seeds from about two pounds of cotton a day, and consequently only a small amount could be sent to market.

In 1790 not a pound of cotton was exported from the United States. In 1793, Eli Whitney, of Massachusetts, who was temporarily in Georgia, invented his Cotton Gin, one of the earliest and most remarkable of the many great inventions of Americans. This invention was productive of most important and far-reaching consequences. It caused an industrial revolution in the South by making cotton the great staple. The production increased by leaps and bounds, bringing great wealth and increasing social and political power to the South. With the earlier form of the new invention the seeds could be removed from about one hundred pounds of cotton a day. In 1792, 192,000 pounds were exported to Europe; in 1795, after Whitney's invention, nearly six million pounds were exported. The value of the export in 1800 was $5,700,000; in 1820, it was $20,000,000. These figures represented enormous wealth in those days.

Whatever sentiment in the South against slavery had survived the Constitutional period now disappeared completely. Cotton brought about a new view, and from being an evil to be eradicated in some way in the course of time, it was now regarded as absolutely necessary to the social and political welfare of the South. The strongest of human passions, avarice, ambition and worldly interest now bound the South closer than ever to slavery. The slaves produced cotton—which was wealth—and wealth brought independence and social distinction; besides the slave was a political advantage of great importance, because five of them, without any voice in the matter themselves, counted as three white persons. Under these auspices grew the Slave Power, soon to be a bold, threatening and overbearing faction in the nation.

While the South and the Slave Power were thus being prepared for great wealth and political standing, circumstances were working in the North to counteract and balance, in a way, this development. New England was beginning to feel the first impulses of a great industrial development; interest in commerce and manufacturing was awakening, and inventive genius, called into action by economical necessity, was at work, and the use of machinery and mechanical inventions was increasing. New England was shortly to be covered with cotton and other factories.