1. Regional Economies Create Differences
Chapter 7 Section 1

2. I Another Revolution Affects America
Interchangeable parts manufacturing out of ppls homes into factories
Factory System= using power driven machineryMass Production= production of goods in large quantities
Both lead to Industrial Revolution= massive change in society and economy as a result of large scale mechanized factories

3. A. Great Britain Starts a Revolution & Industrial Rev. in US
Industrial Rev. began in GB w/ invention of water, steam, & coal powered machines used to produce mass goods
Rushing rivers, coal deposits, & labor that allowed GB to industrialize was available in the US
US main source of income= international trade
War of 1812 blockades hurt foreign tradeUS dev. Industries at home

4. B. New England Industrializes
NE center of industrialization
GB made illegal for anyone w/ knowledge of industrial mach. To leave
Sam Slater comes to Amer. Built 1st successful mechanized textile factory in RI
Francis Cabot Lowell built mechanized weaving factory w/ power machines in Mass.
Built entire town for workers including homes for rent, & storesextremely successful
Lowell Girls= young girls who moved to work in Lowell’s factory's
Town of Lowell named after him

5. II Two Agricultural Systems Develop
As N was developing industries, the S continued to reap benefits of cotton
N & S develop a completely diff. econ. systems

6. A. Cotton becomes King in the South
Eli Whitney invents the cotton gin
Made it possible to remove seeds from easier to grow short staple cotton
S sold clean cotton to GB and NES made large profits
Wealthy planters bought large areas of land and bought slaves to cultivate land
More and more planters begin to profit from cotton
Cotton gin expansion of slavery

7. B. Slavery becomes Entrenched
Slavery was more econ. To southern planters who profited from slave labor
Fought to keep slavery legal
Increase of cotton production=increase of slave labor
Few Af. Amer. Were free
Bought freedom by hiring themselves out after they finish daily work
Some ran away or granted freedom after yrs. Of service

8. III Clay Proposes the American System
Madison proposes econ. Plan to unify country’s diff. regions and econ.
Henry Clay names Madison’s plan the American System
Protective Tariff
Resurrection of Nat’l bank (reduced under Jefferson)
Gov’t sponsoring trans. Systems
N would manufacture goods that the agricultural S & W would buy
S & W would produce food & cotton that was needed in the N

9. A. Tariffs & the National Bank
GB goods priced lower then Amer. Made goods Amer. Bought cheaper GB goods
Tariff of 1816=allowed US to compete by forcing foreign co. to raise price of goods to pay for tax
$ brought in from tariff would be used to build roads & canals
S didn’t support because gov’t was raising prices
Support for national bank was more universal
Reg. banks were issuing their own currency which made trade diff.
2nd National Bank made single currency guaranteed to be accepted around the nation
Congress passed the 2nd Bank of US for 20yrs.

10. B. Erie Canal & Other Internal Improvements
There needed to be a way to connect people in order to do business
States built roads (turnpike paid for themselves)
Nat’l Road= 1st major highway built by the gov’;t
Erie Canal= connected Hudson River and Great Lakes
Improvements led to flourishing countrymost Americans were happy
Monroe becomes president & ushers the “era of good feelings”