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Forging the National Economy

Forging the National Economy. Westward Ho! Immigration Factory system Transportation Rise of Market Economy. Westward. PA Lancaster Turnpike 1790s connects Phil. w/ farmland surrounding Success More privately built short toll roads By 1820s; most major cities connected

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Forging the National Economy

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  1. Forging the National Economy Westward Ho! Immigration Factory system Transportation Rise of Market Economy

  2. Westward • PA Lancaster Turnpike • 1790s connects Phil. w/ farmland surrounding • Success • More privately built short toll roads • By 1820s; most major cities connected • Internal improvements blocked by States Rters • Erie Canal finished 1825 • Sparks frenzy canal building • More immigrants settle west • Steamboats: Cleremont 1st Hudson R. 1807 • RRs start late 1820s • Hampered @ 1st by safety issues • Cleveland, Cincinnati, Detroit, Chicago: bcm big cities bcs of it • Cheap land, EZ credit • Large areas of W land avail @ ↓prices by fed gov • Markets use: OH R  MS R  S. markets w/ canals & RRs, E. cities open up

  3. Immigration 1830s-60s • Pop ↑ 12.8 mill  31.4 mill • Sparsely settled; labor shortages • Arable land unltd • Most immigrants (by 1860: ¼ 4n born) • W & NW Europe- mostly males • 300K from G.B., 25K Scandinavia • I mill from Germany, 1.5 mill Ireland • Failure of potato crops, famine 45 • So ravaged by econ collapse: average age at death in some areas: 19 • Unemployment in Europe very high • Minority well to do middle class • Poor: $30 ticket (steerage) on cargo ships ret. From Eur • Poor food, no sanitation

  4. Immigration (2) • Thousands died of dysentery, typhus, malnutrition on long voyage • Failed revolutions of 48 drive out refugees • Majority looking for better economic conditions • NY, Bost, Phil, New O, Balt • No system to protect newcomers • Many swindled, herded -> slums • Many Germans  MidW w/ $ for farming, as craftsmen, businesses • Most settle in N: cooler, jobs, unwilling to compete w/ slaves • Factory jobs, RRs, Canals, Mines, Farms

  5. Nativism • 1850s: ½ pop NY, majority in Chi, Mil. St. Louis: immigrants • 1st anti 4n movement: anti-Catholic • Objections to crowds, crime in slums • Accused Euro govs of deporting undesirables • Immigrants support Dem party (party of common people in N) • Anti Catholic riots • Burned Ursaline Convent School (MA) • Order of Star Spangled Banner • Know Nothings w/ former whigs, some Dems • Peak: 1854-5 • All American Party- nom’d Fillmore (22%) • Goal: restrict immigration • Responsible for riots, election disorders- discredited

  6. Economic Growth • Abundance & cheapness of raw materials, land • Labor force doubles by immigration, natural increase • Rapid spread of factory system • Rise in productivity of labor • Modernization cuts labor costs, increased productivity • Est. first textile factories: Lowell MA • Lowell System: town based on factory • Hired girls age 9-20; before marriage • Boarding houses; sent home most of wages • Factory regulated life • 6 day work week; lectures, Church allowed

  7. Lowell system (2) • Standard work day: 12-15 hrs • Wage: less than $6 per week (wage slaves) • Few laws on max hours • Child labor issues ignored • High rates of accidents; poor sanitary conditions • Reformers recommend workers go W & farm • (not unionize) • Early labor movement of 1830s wiped out in Panic 1837 • Commonwealth v Hunt (1842) • Unions are not conspiracies to restrain trade • Courts still regard strikes as such • Press, public against unions • Strike breakers easy to find • Skilled crafts organize starting 1852: Int’l Typographical Union • Most unskilled don’t organize • Most strikes fail

  8. Eli Whitney • Development of Cotton Gin made cotton the cash crop of the S • Discontent rises in S w/ growth of W markets • NE less dependent on S for economy • S has less econ power in union • Largely still agri w/ 10% nation’s mfcts • S tries to est trade w/ Eur • 40s: some factories built • 50s: cotton recovers, industry declined • Northern conspiracy? • To reduce S to colonial status/ serfdom • No used fed gov to sectional advantage • Got monopolies in shipbuilding, commerce, protected by tariffs • Fed gov subsidizes N industry • N is draining away S wealth • No built up at expense of the S!

  9. Industry • Mostly in NE; some foodstuffs, raw materials in Old NW, S • Signs of early industrial Revolution: • Most mfctr: processing farm, forest goods (mills) • Most factories had under 10 workers • US still had favorable bal of trade • Imports lots of finished goods; exports lots of raw materials, agri products • 1844: Ch. Goodyear patents vulcanized rubber • 46: Elias Howe: Sewing machines • 51: I. Singer improves, markets • 40s: PA iron makers supply RRs, not enough to cut imports (br) • 50s: Factories begin making shoes, ready made clothes • Modern mass production developed to overcome labor shortages • Assembly lines, interchangeable parts • Businesses incorporate • Securities traded on Wall St. • Industrial entrepreneur: important in econ

  10. International tradeEurope • Econ recovery mid 40s encouraged 4n trade • US= main supplier to Brits of cotton • Brit corn laws repealed; imports wheat • Low Walker Tariff 1846 • Lower tariff 1857 • Increased immigration keeps ships filled on ret. Trips • US imports, exports rise • Sale of cotton, wheat, flour: biggest export (Brit) • Poor trade balance; value of imports higher than exports

  11. Agriculture • In New Eng: • Cities grow, rural pop declines • Farms go over to wool prod • NY, PA: wheat, corn growing areas • Fruit, vegetables, dairy produced for nearby cities • Daily shipments possible w/ RRs • South: tobacco, rice, sugar, cotton booming w/ slave labor • Heart of cotton prod moved to MS delta, E. TX • Doubled in 50s, by 59: South near to monopoly of world markets • Tech changes of fertilizers, equipment affects NE more than S • Old NW becomes center of wheat, beef, corn, pork production • Specialized crops, wider markets improved mechanization • Tougher steel plows needed for prairie sod • Grain drills for hand planting • Mowers for harvesting • Cyrus McCormick Reaper (after 30s) replaced hand sickles • Agribcms businesses; not way of life • Heavy investments needed for equip; RRs open new markets, increased dependence on others for finance, storage, shipping • Specialization increased efficiency & dependence on E merchants, mfctrs

  12. Domestic Commerce • Canals divert business from rivers to Great lakes • NY replaced N.Orleans as chief outlet for W goods • Young cities on lakes outdistance older towns on rivers • RRs compete w/ water transp • 1820s 1st steam locomotives • Track stretches across NE to Gt. Lakes & Old NW • In W, lines link OH & MS Rs to Lakes • 1st congressional RR land grant: 1850 • Sen Douglas for IL central 3mi sq land in alt sections either side of track • W land turned over to company as RR built • Overland freight service: KS  CA 1858 • Talk of transcontinental RR • 1860: Pony Express carried mail, St. Joseph, MO  Sacremento: 10 days • Put out of business by Morse’s elect telegraph in one yr

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