Industrial Change in Nashville During the Civil War

Middle Tennessee had relatively few industrial output at this time, with most economic output coming from farming. Initial industrial developments in Nashville were centered around support of this agricultural sector, with further development coming from the construction of the city and Nashville's favorable position on the Cumberland River.

The market house in the Public Square, constructed in 1801, was one of the first brick buildings in Nashville and was an important commercial site. Through the earliest days of the city, business was primarily situated on Market Street (current-day Second Avenue) and the public square. As the city began to develop further, its location on the Cumberland River led to an expansion of mercantile firms. Transportation was dominated by wagons and keelboats at this time.

Trade along the river dominated commerce in Nashville – there were no trade routes by land, except to Louisville. Despite the retirement of Yeatman and Woods, trade continued to proliferate in Nashville. Over a million dollars in cotton was exported from Nashville in 1825, and the quality of the steamboats possessed by Nashville merchants were well-regarded across the South.

This era of shipping was dominated by Thomas Yeatman and brothers Joseph and Robert Woods. This partnership saw the construction of warehouses, filled with tobacco and cotton, on College Street and Water Street to accommodate steamboat transportation. This partnership ended in 1820, leading to an absence of steamboats and a return to "Rapier's barges" that traveled to cities like New Orleans, Philadelphia, and Baltimore.

Alongside this commercial success came increasing cultural relevance, marked by the construction of the Adelphi Theatre in 1850. Notably, Jenny Lind, the internationally famous P.T. Barnum-managed opera singer, played two shows and a matinée on March 31 and April 2, 1851.

1851 also saw the development of Nashville's rail system. The first passenger train of the Nashville & Chattanooga Railroad was constructed to Antioch in 1851, with a through-line to Chattanooga being established in 1853. Further investment in the railroads continued, with locations such as Bowling Green, Fayetteville, and Louisville being expanded. The development of these railroads connected Nashville to the broader American manufacturing market, even allowing for the development of international trade.

Nashville was also a hub for iron production. In general, Middle Tennessee was dotted with blast furnaces and forges, with iron-making largely taking place on integrated plantations worked by a significant Black enslaved population. Production in Middle Tennessee peaked around 1856. However, due to financial difficulties stemming from technological development and the Panic of 1857, the industry faced a decline going into the 1860s. Montgomery Bell was one of the primary industrialists operating in this space in Middle Tennessee.

Due to the limited progress of Nashville's manufacturing industry, a Mechanics Association was formed in June 1831. Its goal was to support local manufacturing as a counter to importation, a means of increasing employment, and a way to grow the prosperity of Nashville.

By 1859, Nashville had grown to 32,000 people. It contained three lines of railroads, a hundred steamboats, and an annual trade of $25 million. In the eve of the Civil War, Nashville had firmly established itself as a center of Southern trade and mercantilism.

Business grew initially in the first and second wards that surrounded the Public Square, working in construction and manufacturing. The workforce was young but in-demand, living primarily in the first, fourth, and sixth wards. 

Claiborne Machine Works, owned by T. M. Brennan, was one of the largest machine shops in the South, manufacturing steam-engines, boilers, and other iron works.

Nashville became an important destination for trade between the North and the South. After Nashville's fall to Union forces in 1862, it became the primary supplier for the western theater. The Louisville and Nashville Railroad was important for commerce and supplying Union forces during this time.

The city itself underwent a period of crisis during the War. The price of food skyrocketed, with food and medicine being smuggled through the city. Land around Nashville that had previously been cultivated was left untended. Stores and shops were looted, marking a period of instability within Nashville. The destruction of railroads and bridges caused economic problems as well.

Trade and commerce were stifled as non-military shipments were scantly approved by General William Rosecrans. The tobacco industry was an early casualty of the war. Cotton remained operational, albeit at a lower quantity than before the war.

Nashville became occupied in 1862 by Union troops. Some citizens saw opportunity to expand business interests during this time, however. Joseph Morton Newsom's grist mill, about 16 miles west of Nashville, produced corn meal, flour, and feed for the Union Army after its construction in 1862. Others in agricultural and commercial spaces saw the opportunity for trade with the Union Army as too good to pass up.

"I, Wm. G. Brien, do solemnly swear that the supplies described in the duplicate invoices attached hereto, transportation for which is hereby applied for, are necessary for the use and consumption of the family of myself and not for sale, and that no part thereof shall be sold or otherwise disposed of by me or by my authority, connivance or assent, except for the sole use and consumption of the said family." ~ William G. Brien

May 1863 saw signs of hope for trade, as the Treasury Department sent an agent to organize a board of trade. This began the easing of restrictions on trade. Imports could resume, provided they weren't used for local sales. Military trade remained the primary business interest of Nashville.

As the war settled down, many saw the South as a breeding ground for a new economic system defined by commerce and trade. While Tennessee would remain primarily agricultural, industrialization became a much more active policy in the decades after the war. Nashville saw the development of sawmills, paper mills, gristmills, and an oil refinery.

One major commercial undertaking was what to do with the mass of military equipment stored in the city. The process of selling about $50 million worth of garrison equipment in the city begun, and repairs to the city began.

Cotton remained an important good after the war, with a large factory being built by Col. Samuel D. Morgan in 1871. There were eight banks, six railroad lines, and almost 200 manufacturing firms with almost $60 million in annual business.

The liquor trade began to grow after the war. Whisky and malt liquor were the main kinds brewed, with $5 million worth of sales in 1873.

Not all industrial development was so bright, however. James Morton’s United States Army and Navy Leg operated out of the City Hall Building on the Public Square, manufacturing 200 made-to-order legs a year out of willow wood, India rubber springs, and a flesh-colored enamel preparation.