The correct answer is C. There were not many banks to finance businesses.
In 1860 the South was still predominantly agricultural, highly dependent upon the sale of staples to a world market. By 1815, cotton was the most valuable export in the United States, by 1840 it was worth more than all other exports combined. But while the southern states produced 2/3 of the world’s supply of cotton, the South had little manufacturing capability, about 20% of the railroad tracks, but only 13% of the nation’s banks.
