Thought Experiment: Antebellum Post-Slavery Plantation Economy

So, I've been trying to play a thought experiment lately and stumbling, because I'm not particularly well versed in economic history. I was hoping that there might be those here who could offer some clarity.

The basic scenario is this: A Southern state decides to be rid of slavery prior to the invention of the cotton gin. And before anyone starts gnashing of teeth, I understand that this is somewhat unlikely, but lets take the following criteria as a given:

1) The state is North Carolina. Partially because there WAS an anti-slaver movement in the state in the early days of the Union (thanks to the Quaker population), was the home of Levi Coffin, but mainly because it had a fairly well entrenched plantation economy.

2) Total emancipation is unlikely, even for the cause of a thought experiment such as this. So, lets say that a gradual emancipation plan in favored. African-Americans born to slaves after January 1, 1815 are given their freedom. The state also sells bonds, the proceeds of which go to the purchase of those is slavery, with these bonds being sold both in the state and throughout the nation.

3) This creates a situation where slavery begins to peter out, probably within ten to 15 years (especially coupled with the banning of the slave trade). Although slavery will likely continue in pockets up until the 1860s, the lack of new slaves being born and the purchasing of current slaves to give them freedom is going to take its toll. Following the banning of the slave trade, prices of slaves increased and there's no reason to think it wouldn't here. I expect many plantation owners to see the writing on the wall and sell many of their slaves to Mississippi, Alabama and Louisiana.

So, we now have a situation where a former chattel slavery economy has gone (largely) to free labor. You also have a growing population of free African-Americans and also a large population of free white small farmers. My questions are this:

1) Would the plantations be able to survive? If so, how would they adapt to the new economic situation?

2) If they are not able to survive, how would they be dissolved. Would you still see the social stratification that you find in other Southern states with a wealthy elite and, well, everyone else.

3) How would the state absorb such the newly freed slaves? I would expect there to be a large African colonization movement, but there's no reason to think it would be any more successful than in OTL (though maybe I'm wrong). You might also see freed blacks setting out for the West; though I can't imagine they would find a happy home in the Deep South states at this time. More like migrate to the Old Northwest, which would also be an interesting scenario to explore.

So, there you go. I look forward to hearing your guys' thoughts and welcome any sources that someone might be able to suggest.

CAUTION: I understand that this is a sensitive issue, but I ask that people stay civil AND stay on topic. I would really prefer this discussion not fall down the rabbit hole of nearly every other southern related discussion out there. As I said, this is a thought experiment only, and I'm not really interested in the feasibility of the scenario or how it comes about. If you are having trouble dealing with the very real state of North Carolina, please feel free to think of it as any hypothetical plantation state. It could even be the made up state of Virgituckistan if it makes it easier.
 
1) Would the plantations be able to survive? If so, how would they adapt to the new economic situation?
I expect those who can afford to employ labour would survive. Not that former slaves would get paid much.

2) If they are not able to survive, how would they be dissolved. Would you still see the social stratification that you find in other Southern states with a wealthy elite and, well, everyone else.
Government bailout?
Could the land go to industry?

3) How would the state absorb such the newly freed slaves? I would expect there to be a large African colonization movement, but there's no reason to think it would be any more successful than in OTL (though maybe I'm wrong). You might also see freed blacks setting out for the West; though I can't imagine they would find a happy home in the Deep South states at this time. More like migrate to the Old Northwest, which would also be an interesting scenario to explore.
I expect a large number migrate. A lot depends how much of a salary they receive and whether they can endure the new economy.
 
So, I've been trying to play a thought experiment lately and stumbling, because I'm not particularly well versed in economic history. I was hoping that there might be those here who could offer some clarity.

The basic scenario is this: A Southern state decides to be rid of slavery prior to the invention of the cotton gin. And before anyone starts gnashing of teeth, I understand that this is somewhat unlikely, but lets take the following criteria as a given:

1) The state is North Carolina. Partially because there WAS an anti-slaver movement in the state in the early days of the Union (thanks to the Quaker population), was the home of Levi Coffin, but mainly because it had a fairly well entrenched plantation economy.

2) Total emancipation is unlikely, even for the cause of a thought experiment such as this. So, lets say that a gradual emancipation plan in favored. African-Americans born to slaves after January 1, 1815 are given their freedom. The state also sells bonds, the proceeds of which go to the purchase of those is slavery, with these bonds being sold both in the state and throughout the nation.

3) This creates a situation where slavery begins to peter out, probably within ten to 15 years (especially coupled with the banning of the slave trade). Although slavery will likely continue in pockets up until the 1860s, the lack of new slaves being born and the purchasing of current slaves to give them freedom is going to take its toll. Following the banning of the slave trade, prices of slaves increased and there's no reason to think it wouldn't here. I expect many plantation owners to see the writing on the wall and sell many of their slaves to Mississippi, Alabama and Louisiana.

So, we now have a situation where a former chattel slavery economy has gone (largely) to free labor. You also have a growing population of free African-Americans and also a large population of free white small farmers. My questions are this:

1) Would the plantations be able to survive? If so, how would they adapt to the new economic situation?

2) If they are not able to survive, how would they be dissolved. Would you still see the social stratification that you find in other Southern states with a wealthy elite and, well, everyone else.

3) How would the state absorb such the newly freed slaves? I would expect there to be a large African colonization movement, but there's no reason to think it would be any more successful than in OTL (though maybe I'm wrong). You might also see freed blacks setting out for the West; though I can't imagine they would find a happy home in the Deep South states at this time. More like migrate to the Old Northwest, which would also be an interesting scenario to explore.

So, there you go. I look forward to hearing your guys' thoughts and welcome any sources that someone might be able to suggest.

CAUTION: I understand that this is a sensitive issue, but I ask that people stay civil AND stay on topic. I would really prefer this discussion not fall down the rabbit hole of nearly every other southern related discussion out there. As I said, this is a thought experiment only, and I'm not really interested in the feasibility of the scenario or how it comes about. If you are having trouble dealing with the very real state of North Carolina, please feel free to think of it as any hypothetical plantation state. It could even be the made up state of Virgituckistan if it makes it easier.

Given the specifics of the circumstances...

1. Yes, at least for a little while. Look at the kinds of conditions other low-skill, capital-poor folks were willing to put up with even in free-labor conditions (For example, recent immigrants in Northern cities or later on the railway workers in the West), and I see no reason why the recently freed blacks woulden't quickly become employees of their former masters. As for how said would adapt, don't forget they're getting a nice infusion of cash for every freed slave from the state "buying" them, at least in the form of bonds which could be used like the script being issued by many banks in the period. Only better/more reliable, since it has a full state backing it rather than just some small business. Considering how relatively self-sufficent/isolated the plantation communities were, I imagine they'd evolve into something similar to the "company town" and/or pay his employees at least partally in store credit or script issued by either himself or some local creditor; since this would be accepted only in local businesses, that limits the mobility of the average worker since they don't have easily transferable savings. Since they'd be spending most of their money at businesses within the closed plantation economy, the planters can keep the system running.

The biggest risk is, ironically, not to the planters or workers by the state government. Creating a legal obligation to sell that many bonds, especially if some clever slaveowners get the idea to start "breeding" for the guaranteed payout, means a greater and greater share of their budget is going to go to servicing their debts to the planter creditors. How is said state supposed to pay for all that without drastically slashing their spending elsewhere, or raising what taxes that can that are going to drive away economic activity? I see this ending up with a situation of croney/Tammany Hall capitalism, with the planters holding the state's debt holding a virtual monopoly over government affairs and pressuring for legislation that soldifies their position and advantages over their rivals (Industrialists and planters who don't hold large amounts of bonds) and keep their cheap labor cheap.


2. If the system fails, it'd be because the planters run up debts to Northern creditors that they can't pay. That would mean the land forecloses to banks and the price of it collapses as land owned by absentee entities not interested in running the cash-crop bussiness enters the market at the same time. From there, atomization in small plots; either to easy-to-advertise-and-sell-to Northern sons looking to own their own farms or the local lower-middle class dumped into the lower class by the economic crunch, seems likely.
 
Given the specifics of the circumstances...

1. Yes, at least for a little while. Look at the kinds of conditions other low-skill, capital-poor folks were willing to put up with even in free-labor conditions (For example, recent immigrants in Northern cities or later on the railway workers in the West), and I see no reason why the recently freed blacks woulden't quickly become employees of their former masters. As for how said would adapt, don't forget they're getting a nice infusion of cash for every freed slave from the state "buying" them, at least in the form of bonds which could be used like the script being issued by many banks in the period. Only better/more reliable, since it has a full state backing it rather than just some small business. Considering how relatively self-sufficent/isolated the plantation communities were, I imagine they'd evolve into something similar to the "company town" and/or pay his employees at least partally in store credit or script issued by either himself or some local creditor; since this would be accepted only in local businesses, that limits the mobility of the average worker since they don't have easily transferable savings. Since they'd be spending most of their money at businesses within the closed plantation economy, the planters can keep the system running.

The biggest risk is, ironically, not to the planters or workers by the state government. Creating a legal obligation to sell that many bonds, especially if some clever slaveowners get the idea to start "breeding" for the guaranteed payout, means a greater and greater share of their budget is going to go to servicing their debts to the planter creditors. How is said state supposed to pay for all that without drastically slashing their spending elsewhere, or raising what taxes that can that are going to drive away economic activity? I see this ending up with a situation of croney/Tammany Hall capitalism, with the planters holding the state's debt holding a virtual monopoly over government affairs and pressuring for legislation that soldifies their position and advantages over their rivals (Industrialists and planters who don't hold large amounts of bonds) and keep their cheap labor cheap.

Thanks! For some reason, I had never thought of the company-town analogy for how things might develop. That's a really good point!
 
How is North Carolina set for taking advantage of replacing manual labor with steam?

1. Is there a big enough skill labor/craftsman pool 1815-1835 to kick this off?

2. Is there a large enough source of coal locally, or would the operators have to bid against others for Virginian & Pennsylvanian coal?
 
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