New Industries, New Politics

1815-1828

Chapter 91

Creating a Cotton Economy

9.1 Learning Objective

Explain the role of cotton in transforming the

land and lives of diverse people in the United

States.

APUS Key Concept

A global market and communications revolution,

influencing and influenced by technological innovations,

led to dramatic shifts in the nature of agriculture and

manufacturing.

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Creating the Cotton Economy

Cotton’s dominant role in the economy came about quickly.

Upland cotton thrived in the South’s humid-subtropical

climate.

After the War of 1812, cotton quickly outstripped every other

American export and remained a major American industry

until the 1930s.

Locus of power shifts from the Upper South (Va. Md. KY) to the

Deep South (Ga. Al. MS. LA.)

The reliance on cotton ensured that the institution of slavery

would not die out, but would endure and become stronger.

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Demand and Technology

Major English inventions of the late 18th century, the flying shuttle and

mechanical spinning jenny, allowed for the more efficient production of

cotton cloth.

Cotton cloth was lighter, and cheaper. Replaced woolen and linen cloth.

Eli Whitney – invented the mechanical cotton gin, (engine) which separated

the ‘boll’ (seed) from the cotton ball.

The cotton gin that Whitney patented in 1794 could clean 50 pounds of cotton per day.

The United States now had an export crop that could make it prosperous.

Technological changes made it easier to spin cotton and turn cotton into

cloth; the cotton gin, which pulled seeds out of cotton much faster than by

hand, transformed every region and aspect of the economy.

In 1789, Samuel Slater illegally brought Mass production spinning and

weaving technology to the U.S. from England.

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Cotton Exports as a Percentage of All U.S. Exports, 1800–1860

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The Land of Cotton

The black belt (named for its rich black soil), stretching from Georgia to

Louisiana.

The quality of the soil made it perfect for growing upland cotton.

The federal government played a central role in the development of these

lands.

Official surveys and legal sale of land / land sold for $2.00 an acre.

US army protected settlers from Indian attacks.

Built roads, facilitated movement of people westward.

The growth and production of cotton altered federal land investment and led to the explosion of the slave population in the South, even as it

disappeared in the North.

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The Growth of Slavery in the Black Belt7

The Expanding Cotton Belt8

The People Who Worked the Land—Cotton and the Transformation of Slavery

African slaves did most of the work.

Internal migration of slaves from Upper South to Deep South.(slave trade illegal since 1808)

Many slaves were chained in 25-50 person slave coffles for the walk to

the Deep South.

Between 1800 and 1860, more than 1 million black Americans were forced

to move to new homes in the interior cotton-growing lands.

Work in cotton fields was backbreaking.

Most slaves worked on small farms with just a few slaves.

Slaves on large plantations were under constant pressure to produce

and faced some of the worst living and working conditions.

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Enslaved peoples on large

plantations did create

communities.

Some slaves were skilled and were allowed to earn surplus cash.

Most slaves were kept illiterate, but

some did learn to read and write.

Slave revolts continued (Denmark

Vessey, 1822; Nat Turner 1832), and

slaves never stopped running

away.

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Cotton in the North—Factories and the People Who Worked in Them

Textile industry gave rise to the first factories and the “Factory System.”

Francis Cabot Lowell built the first British-style textile mill in the U.S. at Waltham, Massachusetts – 1813.

Business was organized as a multi-shareholder corporation (spread the

risk, raise more capital)

Lowell’s factories transformed the textile industry and the lives of the

people in it.

Lowell’s “Factory Girls”: unmarried young females, moved from rural farms to mill towns.

Cotton production contributed to the creation of northern factories and factory towns, helping to usher in American industrialization.

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Lowell, Massachusetts in 183212

New York and the International Cotton Trade

New York City enjoyed several advantages that allowed it to play such a

dominant role in the nation’s cotton economy.

New York emerged as the center for banking and raising money in the U.S.

Giant new corporations were chartered to build the factories for

producing cotton cloth.

New ways of financing changed the way people did business (long-term

bonds)

New York Stock Exchange chartered in 1817.

The seeming insatiable European demand for cotton resulted in a rapid

growth of the industry.

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The booming cotton trade had the power to transform cities,

making New York a commercial center and the nation’s

largest city.

Increasing cotton trade led to the creation of new cargo ships

to transport cotton on American rivers and to European mills.

The extraordinary growth of cotton production in the South,

the shipment of cotton within and beyond the United States,

and the seeming insatiable European demand for cotton

cloth, resulted in a rapid growth of the industry.

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The Panic of 1819 (major economic depression)

Suddenly in 1819, the growth came to a sudden if temporary

halt.

Caused by land speculation and over-expansion in the Ohio

Valley and the Deep South

The value of cotton and grains fell.

The banks limited credit and called in loans which could not be

paid off.

Land foreclosures increased, economic activity declined.

Depression affected all Americans.

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Commerce, Technology, and Transportation

9.2 Learning Objectives

Analyze the technological and financial changes that led to the emergence of a new market economy in the United States.

APUS Key Concept

Regional economic specialization, especially the demands of cultivating cotton, shaped settlement patterns and the national and international economy.

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The Erie Canal

In 1816-1817, New York Governor DeWitt Clinton proposed using state funds

to construct a canal from Buffalo, on Lake Erie to the Hudson River.

363 miles; 83 locks

Reduced transportation time and cost.

The Erie Canal linked western New York State to New York City, Ohio, the

western United States, and the Mississippi River; allowed farmers to transport

their goods (wheat, luxury items) in a previously unimaginable way and made New York City the commercial capital of the nation.

Under the John Quincy Adams administration, this emphasis on canalscontinued, with the Chesapeake and Ohio canal connecting to the

National Road and linking the Potomac to the Ohio and Mississippi Rivers.

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Steamboats, Roads, and Travel

Robert Fulton (1807) – Clermont, the first commercially successful steamboat.

The steamboat revolutionized water transportation by making trips faster and

providing transportation in both directions of a waterway;

Increased efficiency and decreased cost /raw materials eastward, finished

consumer goods westward.

The National or Cumberland Road (1818) was the first federally-funded highway.

Stretched from Wheeling, VA. across Ohio, Indiana, Illinois, to the Mississippi

River.

Facilitated migration of people westward, and shipment of goods to eastern markets.

Lancaster Turnpike- built by state of Pennsylvania; another link to the Ohio R. valley

New trade routes determined where businesses were located, as proximity to a

waterway became necessary to a successful business; this transformed cities and

shifted the importance of some locations over others.

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Communication: Newspapers and Post Offices

New towns sprang up along roads and waterways.

The post office system helped keep Americans connected

for both business and personal matters.

The growing newspaper network allowed many people to

experience the same news.

With increased speed in travel, news also moved more

quickly.

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Canals and Roads in the United States20

Notice the

placement of

the roads and

canals.

• East/west

connectivity

• More in the

north than in

the couth.

Banks, Corporations, and Finance

Banks printed bank notes and made loans.

Banknotes were backed-up by the gold and silver deposits of the bank issuing the notes.

Banknotes were only as good as the stability of the bank issuing them.

Banknotes increased the amount of money and credit in circulation(banknotes and currency issued by the US government.)

Banks loaned money to individuals and corporations.

A new idea, that of a corporation as a free-standing commercial venture with multiple stockholders, took hold slowly.

Corporations become a feature of America life.

Banks provided needed capital to northern industrialists, and southern plantation owners.

Without such financing, the American Industrial Revolution would not have happened.

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The Reality of the New Market Economy

Where once rural America had moved to a relaxed, slow pace, the whole country

was now a more unified commercial enterprise in which people needed to work

faster and more efficiently.

The rise of the market economy necessitated the rise of banks and corporations,

leading to government consideration of how to manage these newly significant

entities.

A healthy economy is an essential part of a growing nation; thus, it was essential for

the government—each branch and at every level—to play a role in fostering and

developing that economic growth.

Political figures, especially those who came to power post-War of 1812 and in the

midst of the cotton-based economy, understood the need to bolster economic

growth and maintain it, especially in light of the Panic of 1819.

Political figures also recognized that their support came from those who ran businesses,

and made decisions accordingly.

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The Second Bank of the U.S.

Capitalized in 1816 with $35 mil.

Supported by the Democrat-Republicans,

opposed by the Federalists

The bank broadened nationalism, with

branches in many states

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The Era of Good Feelings

Dem/Rep James Monroe elected President in 1816; reelected in 1820

Federalist Party is on its deathbed

Problems the U.S. faced under Monroe

The Tariff

The Bank of the U.S.

The question of internal improvements

The sale of public lands / population drain

Sectionalism was crystallizing.

Conflicts beginning over the expansion of slavery

Cotton economy developing rapidly in Southern states

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One-party rule under the Democrat-Republicans

Factions developed in the party (Democrats,

Whigs)

there was much political infighting (party

would split after 1824)

There were clashing economic interests and

competing sectional interests

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The Marshall Court

John Marshall became Chief Justice in

1801: appointed by John Adams.

The role of the Federal courts was greatly

strengthened during the tenure of John

Marshall as Chief Justice.

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The Supreme Court Defines Its Place

The nationalist, pro-business Marshall Court handed down a

series of decisions to protect private businesses and

entrepreneurs as well as the economic supremacy of the

federal government.

Dartmouth College v. Woodward, which prevented states

from infringing upon privately-entered contracts;

Gibbons v. Ogden, which upheld the national

government’s power to govern interstate trade;

McCulloch v. Maryland, which prevented states from

taxing national institutions like the National Bank.

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Marbury v. Madison (1803)

The Supreme Court did have the right to judge the

constitutionality of federal laws and decisions.

Established the principle of “judicial review”

The judiciary became an equal branch of

government in every way with the executive and

legislative branches.

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McCulloch v. Maryland (1819)

Maryland threatened to destroy a branch of the

Bank of the U.S by imposing a tax on its notes.

The Marshall Court denied Maryland’s right to

tax the Bank

Maryland’s actions would control an agency

of the Federal government

“the power to tax is the power to destroy.”

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Cohen v. Virginia (1821)

Cohen was found guilty of illegally selling lottery tickets in

Virginia.

Cohen’s appeal to the VA state supreme court was

denied.

He then appealed to the U.S. Supreme Court.

Marshall upheld the state supreme court’s decision.

Marshall’s decision asserted the right of the Supreme

Court to review the decisions of the state supreme

courts involving powers of the federal government.

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Gibbons v. Ogden (1824)

The state of New York attempted to grant a

monopoly to a company to operate a ferry

between New York and New Jersey.

The Supreme Court ruled that only Congress had

the right to regulate interstate commerce among

the states (Art. I, Sec. 8)

This struck a blow against states rights.

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Dartmouth College v. Woodward (1819)

The state of New Hampshire attempted to

change a contract issued by King Geo. In 1769.

Marshall ruled that the Constitution protected

valid contracts from state encroachments.

The original contract must stand.

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From the Era of Good Feelings to the

Politics of Division

9.3 Learning Objective

Explain the political developments in the

U.S. during the 1820s, including the shift of

power toward the South and West that

resulted from the changing economic

situation.

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Sectionalism and

Slavery34

The Missouri Question

The Missouri Territory sought admission as a slavestate in 1820.

Rep. Talmadge of New York introduced a bill to limit slavery in Missouri

Sought to limit the further importation of slaves.

Called for the gradual emancipation of slaves already there.

Opposition to slavery was growing in the north, for political reasons as well as economic and moral reasons, creating political tension.

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The Tallmadge Amendment• All slaves born in Missouri after the territory became a

state would be freed at the age of 25.

• Passed by the House, not in the Senate.

• The North controlled the House, and the South had

enough power to block it in the Senate.

• The Talmadge Amendment set off a bitter sectional

debate as to whether CONGRESS had the right

to prohibit slavery in a territory or in a state.

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Southern states opposed any restrictions on slavery.

Expanding Southern cotton production relied on a slave labor source.

The South was losing the economic race with the northern free states

The North led in population and wealth.

The South sought to maintain sectional balance in the Senate.

The main issues for the South were political and economic balance, not morality.

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The Missouri Compromise (1820)

Was orchestrated by Speaker of the House Henry Clay of Kentucky

Maine split from Massachusetts and entered the Union as a free state.

Missouri entered the Union as a slave state.

In the Louisiana Territory, any territories above the 36 degree 30 minute line must come in as free states. (36-30)

In reality, most of the Louisiana Purchase was closed to slavery.

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http://www.phschool.com/curriculum_support/brief_review/us_history/images/unit2_dbq.gif

If you are a Southerner, do you see a problem here???

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Effect of the Missouri Compromise

It maintained sectional balance for 34

years.

It prohibited slavery in the northern

lands of the Louisiana Purchase.

The Missouri Compromise was a

setback to nationalism, and promoted

sectionalism.

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The Contested Election of 1824

No candidate had a majority of the electoral votes (Jackson plurality)

Election went to the House of Representatives (top three candidates)

Crawford suffered a stroke and Clay threw support to Adams.

Adams 13, Jackson 7, Crawford 4. Adams becomes president

Clay later became Adams’ Sec. of State, known as “Corrupt Bargain”

The election of 1824, in which there was no consensus behind any one candidate, divided the nation politically and introduced rancor into

politics that did not exist in the two previous elections.

The animosity resulting from the outcome of the election of 1824

pervaded politics going forward, as Andrew Jackson charged that a

“corrupt bargain” gave John Quincy Adams the presidency; J

Jackson spent the next four years campaigning for the presidency and

against Adams and Clay.

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The Adams-Clay Agenda

Adams proposed a list of national improvements to be

implemented by the federal government.

American System – promoted internal improvements,

especially the building of roads and canals; protective tariff

for business

As the economy changed, the country focused primarily on

agricultural exports and political protections for nationwide

industry.

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Political plans for the nation often emphasized internal

improvements and protection for American businesses, like Henry

Clay’s American System, which called for building roads and

canals, improving American infrastructure, and protecting

American businesses with a tariff on foreign goods.

Clay believed that these improvements would build a stronger

and more united country commercially, geographically, and

socially, as people would have greater mobility and the country

would be united through national investment.

The government established post offices throughout the nation as

business and markets expanded, increasing the government’s

reach in rural America.

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The Jackson Victory of 1828 and the Rebirth of Political Parties

A rematch between John Quincy Adams and Andrew Jackson

Jackson won and helped to strengthen the emerging Democratic Party

Henry Clay became the core of the Whig Party

Political parties were recreated and re-entrenched themselves in the U.S. as a result of this divide heading into the election of 1828, with the anti-Jackson Whig Party supporting the Adams administration and the Democratic Party supporting Jackson and the “common man.”

Elections from this point on became about fierce campaigns (in which candidates disparaged each other) and political promises, not the elite choosing from a few wise men.

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