1. Regional Economies Create Differences
Industrial Revolution

2. How did the Industrial Revolution Start?
Started in Great Britain in the late 1700s
By production of goods had moved from small workshops to large factories that used machines
Eli Whitney 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!

3. interchangeable parts / muskets
Eli Whitney

4. What made it so attractive in America?
2 events turned American attention towards development of INDUSTRY!
Embargo Act of 1807 – halted foreign trade
War of 1812 – British blockade of coastline
Americans had to invest in other opportunities besides shipping & international trade

5. 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

6. 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

7. 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

9. 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

10. 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”

11. “Internal Improvements” in transportation infrastructure

12. 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

13. Henry Clay promoted the American System

14. What was the deal with the Tariff of 1816
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

15. 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

16. What transportation improvements were made by the national government
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

17. 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

18. 1800s Turnpike Building & Gate

19. Erie Canal
Built by the state of NY; took 8 years to build, from
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

20. Erie Canal

21. 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

22. 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”

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

24. Nationalism and Court Cases Supreme 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”

25. Nationalism and Court Cases (cont.)
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

26. 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

27. 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

28. 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

29. Monroe Doctrine (1823) President James Monroe
Author of the Monroe Doctrine---Secretary of State John Quincy Adams

30. Nationalism & Westward Expansion

31. 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

32. 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

33. 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

34. Missouri Compromise,

35. 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”

36. 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