The wealth in the northern states was based on industry, trade, and finance. The North had a number of advantages over the South in terms of economic development. The North had access to more capital, a larger labor force, and a better transportation infrastructure. The North also had a more diversified economy, with a mix of industries including manufacturing, shipbuilding, and textiles. The South, on the other hand, was heavily dependent on agriculture, particularly cotton. This made the South vulnerable to fluctuations in the price of cotton, which was often influenced by global economic conditions.