The Cotton Gin Invented by Eli Whitney Removes seeds from cotton Lead to increased cotton production in the South Increased cotton production creates need for more slaves in the south

Industrial Revolution Industrialization began in England and spread to the United States Textile industry was first to be industrialized Industrialization of the United States started in the New England states Southern cotton planters sold their crops to northern factories

The American System Designed to unite America’s economic interests Henry Clay James Madison

The American System Developing an internal transportation system to link all regions of the nation (National Road, Erie Canal) Establishing a protective tariff (tax on imports) to protect U.S. industries from foreign competition and fund internal improvements Reestablishing the Bank of the United States to create a nationally recognized and equally valued currency to create financial unity among the regions of the country

McCulloch v. Maryland (1819) State of Maryland attempted to kill the BUS with a tax. The BUS manager (McCulloch) refused to pay claiming that a state government had no right to tax the federal government. John Marshall and the Supreme Court agreed saying that “the power to tax is the power to destroy.” Decision increased power of the federal government to regulate the economy.

Gibbons v. Ogden (1824) Aaron Ogden and Thomas Gibbons operated competing steamboat businesses on the Hudson River. Ogden was based on the New York side of the river and had a license from the state of New York to operate his business. Gibbons was based on the New Jersey side and claimed that only the federal government could grant licenses for interstate commerce. Marshall and the Supreme Court agreed with Gibbons. By stating that only Congress could regulate interstate commerce the powers of the federal government were increased. The Marshall Court earned a reputation for making decisions that strengthened the powers of the federal government.

Missouri Compromise As new states were added to the Union it became increasingly more important to balance the number of slave states and free states in the Senate. The issue of slavery was beginning to cause some serious tensions between the North and the South. When Missouri applied for statehood as a slave state the balance in the Senate was going to be thrown off in favor of the slave states (South). This problem began to threaten the unity of the nation.

Missouri Compromise To avoid a national crisis a compromise had to be reached between the North and the South on this issue. Henry Clay played and important role in brokering a deal; it had three key parts. 1.Missouri would be admitted as a slave state. 2.Maine would be admitted as a free state. 3.The Louisiana Purchase territory would be divided at 36 – 30. North of that line would be closed to slavery, south of it would be open to it.

Monroe Doctrine Monroe issued a “warning” to European powers. The Western Hemisphere is closed to colonization. European powers should stay out of the affairs of nations in the western hemisphere. In return the United States would stay out of European affairs. Monroe was asserting U.S. dominance in the western hemisphere.