• America shifts from an agrarian to manufacturing economy, most notably in New England
• Growth of the free enterprise system aka capitalism• People work outside of the home in specialized jobs• Less self-sufficiency leads to more shopping
• Banking – first appears in the 1780s Loan people money and charge interest thus making a profit Uncontrolled lending led to economic recessions/depressions called “Panics”
in 1819, 1837 & 1839 Banks created bank notes rather than deal in specie
Market Revolution
Economy Old Northwest Northeast
Type of Economy
Farming, Industrial
Urban Growth Slaughterhouses, distilleries, shipping companies
People moved to the cities. Worked in factories. Coal Mines
Major Products
Wheat, oats, barley, corn, pigs, pigs and cattle
Coal, carpet, bricks, shoes
Economic Challenges
Spoiled products Strikes and labor unions
• Manufacturing led to migration to cities from rural areas• Standard of living was very poor
Unsanitary: no sewage or fresh water Lived in tenements: urban poor people lived in areas with cheap, run-down
housing
• New factories were designed to make Money• Thus they paid laborers very little and forced them to work long
hours (12+ a day) $3.25 for 72 hour week (deducted $1.25 for room and board)
• Led to workers going on strike and forming Labor Unions to protect their interests
Growth of Northern Cities & Labor
The Growth of Cities
• 1810: 6% lived in cities• 1840: 12%
• Workers spent more time away from the household
• Could take care of Children, sick relatives, and elderly family members
• Led public institutions such as hospitals and schools began to fill the gap.
Inventions and innovations
Invention Leader How it changed America
Cotton Gin and Interchangeable parts
Eli Whitney 1793 & 1798
Quickly separated the seed from the cotton. Make it cheaper and faster to get cotton to the mills. Corresponding parts were made for similar guns
Steamboats Robert Fulton 1807
“Clermont” navigated the Hudson River possible upstream commerce.
Toll Roads Congress 1806
National Road from Cumberland Maryland to the Old Northwest. “turnpikes” localities, states, and private companies. Increased the speed of shipping
Erie Canal New York 1825
363-mile allowed goods to flow between the Great Lakes and New York City.
Invention Leader How it changed America
Railroads George Stephenson 1801
1828 first commercial railroad Baltimore and Ohio. By 1860 30,000 miles more then the rest of the world. Faster travel
Telegraph Samuel F.B. Morse 1844
Using Morse coded, messages could be sent over electric wires. Within 16 years some 50,0000 miles of telegraph wire. Fast way to communicate
Steel Plow John Deere 1837
The smooth sided steel plow solved this problem, and would greatly aid migration into the American Great Plains in the 19th and early 20th century.
Reaper Cyrus McCormick 1831
The McCormick design was pulled and cut the grain to one side
The Rise of the West
• Between 1790 and 1840 4.5 million people crossed the Appalachian Mountains
• Groups moved west and cooperated with others to clear land , build houses, and barns.
• Small farmers and planters with their slaves flowed out of the South to create the new Cotton Kingdom of Alabama
• Slave trading became a well-organized business shipping Slaves farther South
• Coffles: Groups chained to one another on forced marches to the Deep South
• “King Cotton” – nearly all southern states were dependent on cotton productionVirginia and North Carolina stuck with tobaccoIndustrial revolution, developed factories producing cotton
textiles with water-powered spinning and weaving machinery.
• RuralVery few major cities – Richmond, VA; Charleston, SC & New
Orleans, LAVery little industry, roads, railroads, or banks
Thus dependent on the North and Europe
Southern Economy
• Rise in demand for cotton and opening of new lands in the West to settlement, Whitney’s invention revolutionized American slavery.
Slave-Owning Families (1850)
Slave-Owning Families (1850)
Only 25% of Southern white families owned slaves.
Southern farmers who did not own slaves were called yeoman.
• 1841-1845 430,000 immigrants• 1846-1850 1,283,000 immigrants• 1851-1855 1,748,000 immigrants• 1856-1860 850,000 immigrants
• 1840s-1860s – First Great WavePrimarily from Ireland and Germany
Ireland suffered the Irish Potato Famine Settled in Northeastern cities
Germany had a series of failed rebellions Bought farmland in the Midwest
Rising Immigration
Rise of Nativism• Irish influx greatly enhanced the visibility and
power of the Catholic Church.• Archbishop John Hughes of NYC : parochial
schools• Feared the impact of immigration on
American political and social life “Nativist”• Blamed immigrants for urban crime, political
corruption, and fondness for intoxicating liquor and undercutting native-born skilled laborers
Transformation of Law
• Corporate firm enjoys special privileges and powers granted in a charter from the government: investors and directors are not personally liable for company's debts.
Supreme Court CasesCase Issue Outcome
McCulloch v. Maryland 1819
Does the government have the power to create a national bank?Do states have the right to tax institutions created by the federal government?
Reinforced (1) the doctrine of implied powers and (2 the principle of the power of the national government over state government
Dartmouth College v. Woodward 1819
Was Dartmouth’s contract protected by the Constitution?Was New Hampshire interfering with the Contract
Prevented state interference in business contracts. Gave stability to the economy by encouraging growth of corporations
Gibbons v. Ogden 1824
Who has the power to regulate navigation; states or federal government
Established the federal governments’ right to regulate all aspects of interstate commerce
• Protestants Christian Bible, aka Scripture, is the final authority Salvation can only be achieved through a personal belief in Jesus Demonstrate faith through performing good deeds
• Evangelical movement focusing on congregations
Second Great Awakening
Denomination Leader Beliefs
Methodists John Wesley by 1850
Largest Protestant denomination, personal relationship with God, preachers were common folks, traveling ministers, exciting camp meetings
Unitarians William Ellery Channing 1825
Jesus was a human messenger of God, but not divine himself, God as a loving father
Mormons Joseph Smith1830
Book of Mormon, translated from writings on gold plates that he found buried in the ground with the help of an angel. God would restore a truer simpler church free of ministers.
Millennialists William Miller
U.S. leading the world Earth’s final 1000 years of glory before Day of Judgment. Jesus would return March 1843.