Chapter 8

1. Chapter 8 The Market Revolution

2. A Market Economy – Section 1 • Lots of buying, selling, borrowing, circulation of $, creation of wealth • Market Revolution • Rise of manufacturing (making things w/machinery) • Francis Cabot Lowell – First centralized mill, built on river (Lowell, MA) • Chart p. 232

3. Market Economy cont. • Free enterprise – companies compete for profits (capitalism) • Work done outside home now • Rise of shopping, goods available to all, not just the rich (consumer goods) • Rise of banking – provided capital (wealth to be invested to make $); made $ by charging interest, stimulates economy • Uncontrolled lending – loaned too much $, couldn’t repay, customers panicked, withdrew $

4. The Northern Section – Section 2 • More awareness of growing sections w/distinct geog., econ., cultural differences (sectionalism) • Northeast – N. England & Middle (NY, PA, DE, PA, MA, etc.) • Northwest – Ohio Valley, IN, IL, MI, etc. • Farming in NW, grains (corn, wheat) shipped or used for livestock; grains sold to distilleries • Pigs- fat used for soap, bristle brushes, many slaughterhouses • Sent products down Miss. River for sale elsewhere

5. Northeast • Bought products from NW; worked outside home in factories (some still on farms) • Increased population density • Growth of industry – Industrialization • CT – factories - guns, furniture, clocks, glass, tin • PA – coal, shipping, lumber, iron, leather, textiles • MA – shoes, carpets, brick

6. Northeast cont. • Lowell’s mill in Waltham started spread of mills • Young, single women, “moral environment,” stable income ($3.25 for 73 hour week); room and board deducted ($2.00 per week!) • Women worked for half the pay, later replaced by Irish immigrants

7. Growth of Cities • More workers outside home, medical care, education, care for elderly couldn’t be done • More public institutions (schools, hospitals) • Growth of tenements – crowded apts. • Cities unable to handle population – police, fire, sewage, etc. minimal; cholera outbreaks, intestinal diseases from dirty water • Urban

8. Labor Disputes • Most factory owners provided no benefits • Workers began to organize • Long hours, low wages, no govt. minimum wage • Called strikes • Rise of labor unions – organization of workers formed to protect interests of members (dues)

9. The Southern Section – Sec. 3 • “King Cotton” represented 2/3 of American exports! • Southern states expanded to Arkansas • Rural areas – farms or countryside • Fertile soil, ample rain, mild winters • Over ½ of cash crops produced from farms with fewer than 6 slaves • VA, NC continued w/tobacco • SC – sugar, rice (hot, humid environment)

10. South cont. • Slow urban growth; New Orleans, Charleston, Richmond • Some free African Americans, 12% out of 3.7 – most in north

11. Slavery • By 1804 all northern states banned or were ending slavery gradually • 1808 Congress banned slave trade • Population increase in south increased among numbers already living there • By 1860 more than half of population in south were slaves

12. Slavery cont. • Small farms – sometimes worked side by side, lived in same house; but sometimes cruel • Large plantations – much harsher life, long hours, hard labor; often 20 slaves or more • Women – hard life – worked in fields and took care of household, raised children • Demand rose, price rose: $500 in 1832, $1,500 in 1837; desirable slaves – 18-25 year old males. • Cost $15 - $60 per year to maintain

13. Slave Revolts • Denmark Vesey – bought freedom, preached against slavery, plotted to take Charleston • Betrayed, 35 arrested and hanged • Nat Turner, 1831, VA, killed 57 people; crushed by militia, 20 hanged • Considered ending slavery; instead tightened restrictions – laws against teaching, meetings, etc.

14. Growth of Nationalism – Sec. 4 • Shift to thinking of ourselves as American rather than member of individual states • Leaders sought to strengthen national authority • Disputes over the legality of a national bank • McCulloch v. Maryland – court ruled that Congress did have this power - “necessary and proper” clause of Constitution

15. Nationalism cont. • Gibbons v. Ogden ruled states could not regulate commerce on interstate waterways; gave federal authority over interstate business • Foreign policy being strengthened as well • James Monroe 5th president • Monroe Doctrine – U.S. would not get involved in internal affairs of foreign govts.;

16. Monroe Doctrine cont. • U.S. recognized new nations in West Hem. • No further colonization in Western Hem. • Any attempt to interfere w/nation in WH would be considered hostile action • 1824 John Quincy Adams • John Calhoun, SC, nationalist, supported bank, national roads, tariffs, but supported slavery • 1828 – Andrew Jackson

17. Jackson - 1828 • Jacksonian Democrats – parties had shifted to Republicans/Whigs vs. Democrats • Spoils system – reward those who helped • Feared power of government • Tariff of 1828 – Tariff of Abominations • Benefited northern business, but south despised it – caused higher prices • 1832 – SC threatens to secede from union • Jackson sent troops

18. Indian Relocation • Encouraged the Indian Removal Act – moved to Oklahoma • Gold discovered in Georgia • Trail of Tears 1838, 15,000 marched on foot to Oklahoma, thousands died

19. The Bank War • Jackson against Bank of U.S. – vetoed bill to re-charter the bank; thought it was controlled by rich, northern businesses • Jackson re-elected 1832 • “Whig” party (former National Republicans) opposed Jackson who they said was too powerful. • King Andrew I