The North (northern business) was heavily involved in this symbiotic business relationship with the South. 'Factoring' was when a northern business (usually a branch of a bank) had agents set up shop down south and provide a wide choice of 'services' to the cotton industry.
A 'Factor' would be like a planter's agent. The 'Factor' would take care of all matters (insurance, freight, shipping, customs, etc) on the cotton after it was produced. The 'Factor' would also lend money to the planter for just about anything even loosely connected with the raising of the cotton. The Southern newspapers were full of ads where these 'factors' plied their wares.
The average percentage that a 'factor' received on a cotton crop was 20%.
And, about Southern literacy...
According to James McPherson (highly respected) in 'Ordeal by Fire', he state that just before the war, the South was only 11% behind the north in per capita literacy rate among freemen. However, due to the extended growing season in the South, southern children went to school on the average of 40% less days than in the north (per year), and there were fewer schools in the south than in the north.
And also remember that in several states (Mass being one) in the north, their educational system surpassed even the highly rated Scandinavian countries (meaning the south was only 11% behind a pretty high standard).
So, one could take these statistics to show that Southerners, even while going to school 40% less time than their northern counterparts, were able to close to within 11% of the northern literacy rate, AND do it with much fewer schools! I'd say that smacks a little in the face of those who claim southerners were 'ignorant illiterates'!