Without northern capital, there likely would not have been a "new South." It was money from the North that drove the industrialization of the South after Reconstruction.
The movement of manufacturing (especially textiles) to the South was similar to the "offshoring" that we see today. Northern industrialists moved textile mills out of New England and into the South because they knew they could get lower costs in the South. They knew that workers in the South would work for lower wages. Because of this, Northerners invested heavily in Southern industry. Their capital helped create the "new South."