1. Section 1

2. In America: 1800’s Started in New England Bad farm lands Factories near water, coal, and iron

3. American Economy was Capitalist Capitalism: Economic system where people put their capital into a business in hopes of making a profit Capital: Money Free enterprise: People are free to buy, sell, and produce whatever they want and work wherever they want

4. Technologies Cotton gin- machine which removed seeds from cotton fiber (Eli Whitney) Congress passed patent laws Patent: Sole inventor gets legal right to invention and its profits

6. Factory system was invented by textile maker Francis Cabot Lowell Factory system: System to manufacture products together in one place to increase efficiency Interchangeable parts- Identical machine parts that could be put together to make a complete product

8. Northeast had small farms South consisted of plantations which produced cotton Slaves used to pick cotton

9. Stocks: Shares of ownership in a company First Bank of United States expired in 1811 Second Bank of United States (1816) Large loans to businesses State banks and frontier criticized Bank to be a monopoly 20% of capital U.S. Capital in bank 80 % of capital from foreign investors

10. New cities formed (Cincinnati, Pittsburgh) Dangers of urban areas Not sanitary (Yellow fever of 1793) Fires Advantages of cities More job offers Libraries, museums, etc.