Final answer:
The Northern states wanted new states to be free states to protect their industrial economy, while Southern states wanted new states to be slave states to preserve their agricultural economy.
Step-by-step explanation:
The question concerns the desires of the Northern and Southern states regarding the categorization of new states emerging from western territories in the period before the American Civil War. The correct answer is A) Northern states desired to categorize new states as free states, whereas Southern states desired to categorize them as slave states. This division was due to differing economic interests and views on slavery.
For instance, the Northern states, with their industrial economy, wanted tariffs to protect their industries and opposed the expansion of slavery which they saw as a threat to the free labor market. On the other hand, Southern states, with their agricultural economy reliant on slave labor, wanted the Western territories to be open to slavery to preserve their way of life and economic interests.