By contrast, the Southern economy was based _________ (1) _________ on large farms (plantations) _________ (2) _________ produced commercial crops such as cotton and that _________ (3) _________ on slaves as the main labor force. Rather than invest in factories or railroads as Northerners had done, Southerners _________ (4) _________ their money in slaves—even more than inland; by 1860, 84 percent of the capital invested in manufacturing _________ (5) _________ invested in the free (non-slaveholding) states. Yet, to Southerners, as late as 1860, this appeared to be a sound business decision.