Group 4: Mike Wilcox & Poorwa Godbole

Targets I can…

Describe the “Transportation Revolution” and explain its effect on the U.S. economy

Describe the “Market Revolution” and explain its effect on the U.S. economy

Identify the “Industrial Revolution” and describe the role of mass production and interchangeable parts

Identify the causes and results of the Panic of 1819

Transportation Revolution There was a need for better transportation

because: Flatboats could not float upriver to transport goods Wagons were too slow and expensive

Transportation Revolution Steamboat

construction improved In 1807 the first

steamboat capable of carrying heavy loads was made

Steamboats could travel up and down stream

Canal construction became more efficient Opening of Erie Canal

led to growth of canal construction across the nation

By 1840 a network of canals stretched from Illinois to the Atlantic Ocean

Transportation Revolution Locomotives came

into use in the United States in 1830s Allowed commercial

transportation of goods anywhere where tracks were laid

Decreased the traveling restrictions of flatboats and wagons because they did not depend on the presence of roads or water

Economical improvement: Better transportation

led to more purchases National markets

were created because goods could now be transported easily and inexpensively

Due to exponential increase in sales, national economy grew vastly

Market Revolution Profitable national markets were created

during the early 1800s due to an improvement in transportation systems

Led to an increase in farmers’ and manufacturers’ profits

Convenience of transportation revolutionized the manner in which business was conducted

Towns grew because: Small towns were linked through large businesses Goods could be transported further distances to reach

the ends of towns

Industrial Revolution Shift to machine production in the field of

manufacturing Began in Britain in mid-1700s, with the invention of the new

spinning mill, before spreading to US Revolutionized textile industry through mass

production - Manufacturing of large quantities of goods at one time Increased efficiency and decreased costs of production

Eli Whitney brought about the use of interchangeable parts Production of various parts in mass, which are then used to

make individual weapons Saved money Later spread to other industries, not just the weapon industry

Industrial Revolution Britain outlawed the sale of machines abroad

and stopped textile workers from leaving country out of fear of foreign competition

Samuel Slater Brought secret machine plans from Britain to US in

1789 Constructed British spinning mill with financial

support of Moses Brown Soon shared mills with Brown all over Rhode Island and

Massachusetts Summary video

Panic of 1819 Many manufacturers borrowed money from

state banks to finance new enterprises Due to booming economy, banks were

lending out money freely without checking credit

In late 1818, 2nd Bank of US ordered state banks to demand repayments of all loans & exchange all notes for gold & silver Few banks could accomplish this task

Panic of 1819 Sudden demand from Bank of United States

caused a chain reaction of bank failures, falling land prices, and foreclosures

Nation fell into depression for several years Weakened the optimism of the Era of Good

Feelings