True, but most Southerners supported the institution of slavery - those who did not own slaves still signed up in droves to fight for a system that espoused it not merely as a necessary evil, but as a positive good. Many Southerners, even those who did not own slaves, believed in the rightness of slavery, supported laws that kept it in place, and even accepted the doctrine that slavery was divinely mandated. You didn't have to own slaves to believe in the practice, and support it. Even acquiescence in such a practice should be considered a crime.
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I'd argue that the industrial society of the North stemmed from their rejection of slavery, rather than the rejection of slavery stemmed from the industrial character. Certainly, Massachusetts and the surrounding evirons were poorly suited to slavery from the outset (maritime socities having a hard time maintaining slavery in general), but places like Ohio, Indiana, Illinois, Nebraska and so on (even Pennsylvania) could have easily been prime slave holding territory, as they were mostly agricultural strongholds. However, the prevailing religious attitudes of the inhabitants there tended to work against the practice, so it wasn't adopted.
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Yes it was. The Free Soil movement was not about freeing slaves and making them equal, it was about preserving territory for free farmers. However, the North, under Lincoln's direction, took the ciritical step of emancipation, even though many did not want him to do so. Which is really what makes him the greatest american.