Regional Economies Create Differences

Industrial Revolution

How did the Industrial Revolution Start?

• Started in Great Britain in the late 1700s

• By 1800- production of goods had moved from small workshops to large factories that used machines

• Eli Whitney- 1798- interchangeable parts- standardized parts that can be used in place of one another – made mass production possible—first used with muskets

• Industrial Revolution: changes in the economy & society that resulted from the growth of the factory system!

Eli Whitney interchangeable parts / muskets

What made it so attractive in America?

2 events turned American attention towards development of INDUSTRY!

Embargo Act of 1807 – halted foreign tradeWar of 1812 – British blockade of coastline

Americans had to invest in other opportunities besides shipping & international trade

Where in America did it take place?

• Primarily in New England—swiftly running rivers for water wheels

• Farming was difficult there & people were willing to manufacture goods

• A Market Economy developed– Manufacturing & agriculture support the growth of each

other

• The North did NOT depend on slavery

Who?? Who?? Who??• Samuel Slater

– British immigrant– First successful mechanized textile factory in America—

Pawtucket, Rhode Island– Mass produced only 1 part of process: thread

• Lowell, Appleton & Jackson- 1813– Mechanized all stages of textile production– Lowell , Massachusetts– factory town –used “mill girls”—

young farm women

What about the SOUTH? • South’s economy was based on

agriculture – Cotton becomes KING!

• 1793- Eli Whitney invents Cotton Gin- cleaned cotton 10 x faster than a slave increased cotton production establishment of large plantations required more workers # of slaves nearly doubled from 700,000 to 1,200,000 by mid-1800s

Cotton Kingdom Developed in the early 1800s Located in the area between the Appalachians and the

Mississippi River, south of the Ohio River Consisted of both poor, non-slaveowning farmers and

wealthy, slaveowning planters

What is the American System? • purposes: unify the country and create a

strong, stable economy that would make the United States self-sufficient

• 1815—President Madison presented a unification plan to Congress to:– Establish protective tariffs- encourage the

purchase of American made goods (limit Br. imports into the U.S.)

– Strengthen the National Bank – develop & provide national currency

– Develop National Transportation Systems – roads, turnpikes, canals, harbors, lighthouses, navigation improvements to promote commerce within U.S. –”internal improvements”

“Internal Improvements” in transportation infrastructure

What is the American System? (cont.)

• Plan received support from Congress- especially Speaker of the House HENRY CLAY- he called the plan the “American System”

• North would produce the manufactured goods the South & West needed, & the South & West would produce the grains, meat, & cotton that the North needed---with a national currency & improved transportation ,exchange of goods would be EASY!

• U.S. could be economically independent of FOREIGN nations

Henry Clay promoted the American System

What was the deal with the Tariff of 1816? (part of the American System)

President Madison proposed the tariff

Would increase the cost of foreign-made goods & therefore make American goods more attractive to buyers, & the revenue from the tariff could be used to pay for internal improvements like roads, canals, etc.

North- supported tariff

South & West- opposed it- resented the government’s attempts to make inexpensive foreign goods more expensive

Henry Clay (a Westerner) and John C. Calhoun (a Southerner) persuaded congressmen from their regions to approve it in the national interest

Should we strengthen the National Bank?

(part of the American System)

• People from all regions supported strengthening the National Bank

• National Bank would provide a currency guaranteed to be accepted nationwide—would make it easier for people in different regions to do business

• 1816—Congress chartered the Second Bank of the U.S. for a 20-year period

What transportation improvements were made by the national government?

(part of the American System)

• 1811- nat. govt. began building the National Road, aka the Cumberland Road, to carry settlers West from Maryland Illinois (eventually spent about $7 million)

• Outside of defensive issues like building a system of fortifications to protect coastlines, the federal power over domestic internal improvements did not gain political consensus—lots of political fighting over this

Almost all internal improvements were funded by states or private companies

• Many states built turnpikes (roads), which paid for themselves through the collection of tolls paid by users, who literally turned a pike to continue their journey along the road

• Many states built bridges and canals• Most famous canal---the Erie Canal---was built by

the state of New York• Largely due to the success of the Erie Canal,

other states built over 3,000 miles of canals by 1837

1800s Turnpike Building & Gate

Erie Canal

• Built by the state of NY; took 8 years to build, from 1817-1825

• Stretched 363 miles across New York from the Hudson River (near Albany) to Lake Erie (city of Buffalo),so linked the Atlantic Ocean to the Great Lakes

• Most of the workers were immigrants• Had a towpath along the bank for horses,

mules, and oxen

Erie Canal

Results of Erie Canal / Rise of New York City

• The Erie Canal allowed agricultural products from the Midwest to reach New York City markets, which led to more settlers moving west to be farmers

• Trade went both ways, as farm families along the canal began purchasing household goods & cloth formerly made at home

• Between 1820 & 1830, the decade in which the Erie Canal added commerce with the U.S. interior to the city’s long-standing international trade, NYC’s population grew by 64%

• Shipping costs decreased due to the canal• New York City became a dominant port city

Era of Good Feelings

• James Monroe won the 1816 presidential election • Monroe, a Virginian, was welcomed in New England• Federalist Party ended around this time---for about

10 years only one political party, the Democratic-Republicans—no political bickering between parties

• A desire for national unity---called the “Era of Good Feelings”

Nationalism:the belief that the national interests as a whole should be more important than what one region

wants

Nationalism and Court CasesSupreme Court BOOSTS National Power

• Led by nationalistic Chief Justice John Marshall (a Federalist)—his decisions expanded the power of the federal government, thus limiting the extent of states’ rights, and promoted business enterprise

1819- McCulloch vs. Maryland -3 questions in the case: Who has sovereign power—the national govt. or the state governments? Does the Constitution give Congress the power to create a national bank? If Congress has this power, do the states then have the right to tax the bank? -Marshall decided all these issues in favor of the national govt. -Says the BUS’s legality is implied in the Constitution -Says states CANNOT pass laws that end up overturning laws

passed by Congress -Says Maryland CANNOT tax a local branch of the Bank of the U.S.---”the power to tax is the power to destroy”

Nationalism and Court Cases (cont.)

• 1824---Gibbons vs. Ogden -clarified that Congress, NOT THE STATES, has the power to regulate interstate commerce

Chief Justice John Marshall

Expanded the power of the national government / limited states’ rights

Who is John Quincy Adams, & what was his deal with Nationalism &

Foreign Policy?

• John Quincy Adams was Secretary of State under President Monroe

• He established a foreign policy based on nationalism

• Rush-Bagot Treaty of 1817: with Britain; reduced the number of ships of both countries on the Great Lakes

• Convention of 1818: U.S. and Britain worked out border disputes---set the boundary between British North America and the U.S. at the 49th parallel of latitude from the Minnesota to the Rocky Mtns. (the Louisiana Purchase area) and provided for the joint occupation of land in the Oregon Country for 10 years

Who is John Quincy Adams, & what was his deal with Nationalism & Foreign Policy?

(continued)• 1819- Adams- Onis Treaty– Adams persuaded Spain to give up Florida

before the Americans simply seized it (Spain could no longer defend the area)

– Drew the border between the U.S. and Spanish territory all the way to the Pacific

– Spain also gave up claims to Oregon Territory

Monroe Doctrine / Issued by President James Monroe in 1823

• An expression of post-War of 1812 nationalism; the U.S. was assertive, issuing it alone, not jointly with Britain; asserted American independence in foreign policy

• Background: European powers (Spain & Portugal) threatened to take over newly independent Latin American republics, and Russia established trading posts in CA

• Warned European nations against interfering in affairs in the Western Hemisphere (no future colonization)

• In return, the U.S. would stay out of European affairs and would not interfere with existing colonies in the Western Hemisphere

Monroe Doctrine (1823)

• President James Monroe

• Author of the Monroe Doctrine---Secretary of State John Quincy Adams

Nationalism &

Westward Expansion

As a result of westward expansion… territories were ready to become

STATES!

• The issue of slavery made the process difficult

• Congress tried to keep an even number of slave and free states

• Southerners particularly insisted on this, because they could block legislation they didn’t like in the Senate

Missouri Compromise

• 1819- Missouri petitions Congress to become a State

• At the time 11 free & 10 slave states

• Southerners wanted Missouri to become the 11th SLAVE state – but before Missouri could become a state (a bill was being proposed on gradual freedom of slaves) Alabama became the 11th SLAVE state

Missouri Compromise

• This mean that Missouri would break the tie either way- crisis was averted by Henry Clay, known as the “Great Compromiser,” and Speaker of the House

• Maine was admitted as a free state & Missouri was admitted as a slave state

• Louisiana Purchase divided into free & Slave territory

• South of latitude 36° 30' was SLAVE• North of latitude 36° 30' was FREE

Missouri Compromise, 1819-20

Panic of 1819• Marked the end of the economic expansion that

had followed the War of 1812• Banks failed, mortgages were foreclosed, and

unemployment rose• Marked the beginning of a new phase of

American economic history where free market economies move cyclically from “boom to bust”

Panic of 1819 (continued)

• Partly caused by a change toward more conservative credit policies of the Second Bank of the United States; the wary BUS directors viewed with scorn the unconventional practices of many western state banks (giving out many risky loans)

• Second BUS called in loans, forcing state banks to do likewise• State banks had made loans to land speculators who were

unable to repay; major cause of the panic was overspeculation in frontier lands

• Produced resentments of common people toward the BUS, which Andrew Jackson later took advantage of