1. Regional Economics Create Differences
Chapter 7 Section 1-2
Regional Economics Create Differences

2. The Industrial Revolution
It started in Great Britain
Inventors had begun to develop new ways to generate power (using water and coal)
Lead to improved powered machines allowing for mass production
Powered machines Mass production  Money New factory production

3. The Industrial Revolution in the U.S.
Two different economic systems developed in the North and the South
The North developed and invested in factories
They did not have the land to farm
The work force was already there (higher population)
The South developed a more agricultural economy
As textile factories were the most popular the South became the Cotton King
Agriculture in the South focused on creating cotton
Eli Whitney creates the cotton gin which was HUGE
The cotton gin also leads to the expansion of slavery

4. Growth of Slavery in the South
As cotton production increased the need for slaves also increased
From Cotton bales went from 3,000 to 178,000
Number of Slaves went from 700,000 to 1,200,000

5. Henry Clay and the American System
With two different economic systems in the country the division became more evident and the need to unify the country more important
President Madison creates and idea with three main parts
Developing transportations systems and internal improvements
Establishing a protective tariff
Reviving the National Bank
House Speaker, Henry Clay, rallied behind it to support it calling it the American System
Each part of the country would support the other (North provide finished goods and South and West provided the goods to create the finished goods)

6. New Transportation Improvements
1st Steam Locomotive created in 1825
States built turnpikes, which also had tolls to produce state funds
1st highway called the National Road with construction beginning in 1811
When finished in 1838 the highway went from Maryland to Illinois
Erie Canal
Took 8 years to make and linked the Great Lakes to the Atlantic Ocean through the Hudson River

7. Tariffs and the National Bank
Tariff of 1816
Was a protective tariff, it increased the tax on imports
Good for the North, bad for the South and the West
The Second Bank of the U. S.
This was great for the nation because it created a standard currency
Tariffs and the National Bank

8. The Steam Boat
The first successful steam boat, Clermont, was created by Robert Fulton in 1807
Robert Fulton and Robert Livingston were both given a charter from NY for exclusive rights to transport on the Hudson
This created a monopoly
Any other steam boat operators who wanted to transport on the Hudson had to buy a license

9. Gibbons vs. Ogden
Aaron Ogden received a license from Livingston and Fulton
Thomas Gibbons also began operating in the same area as Ogden
Ogden took Gibbons to court because Gibbons violated his exclusive right to operate in the area of NY and NJ
Gibbons vs. Ogden the Supreme Court that only the Federal government could regulate interstate commerce

10. McCulloch vs. Maryland
Maryland was trying to place a heavy tax on the local branch of the Bank of the U.S. to make it fail
This was ruled unconstitutional, the Supreme Court decided states did not have the ability to tax the bank hindering Federal action
The Government used the Necessary and Proper Clause (Elastic Clause) allowing the government to create laws not already stated in the Constitution

11. Nationalism
Secretary of State, John Quincy Adams, guides the nations policy via nationalism
Nationalism is the idea of placing the needs of the country before area concerns or foreign issues
Adams main goal was to secure the nation and expand the nations territory
Rush-Bagot Treaty of 1817 led The U.S. and English occupied Canada to demilitarize their borders.

12. Territory Expansion
In the Adam Onis Treaty the U.S added Florida to its borders
After Spain lost its territory, European countries started to scramble for what was not claimed by the U.S., in the Western hemisphere (Latin America, Alaska, Mexico and Cuba)
The Monroe Doctrine warned European countries to not attempt to inhabit these near by territories or they would consider it a threat

13. Missouri Compromise
In 1818 there were 20 states, 10 free states, and 10 slave states
Missouri wanted to be admitted as a U.S. state, however, they were a slave state and would disrupt the current balance
Illinois was admitted as the 11th free state, and the U.S. assumed Missouri would be the 11 slave state
They encountered difficulties and Alabama became the 11 slave state
So Missouri still faced the same issue as before which created a lot of upset in the South as people thought the North was conspiring to make the country slave free
A compromise was made to calm the country and Maine became the 12th free state and Missouri the 12 slave state

14. Growth of the U.S.

15. Activity Get with ONE partner, you should be in pairs.
This will be your own newspaper
It needs to be decorated, be creative (colored, pencils, markers, glitter, extra pictures)
Under each heading please write a story to accompany the heading
“New Transportation System will Unite Americans” your story should have something to do with the water transportation such as the Erie Canal
Every story needs to be in complete sentences
It must contain at least three facts
Be descriptive and be creative