Market Revolution

1. Market Revolution Interconnected Domestic American System – promotes Major expansive force = Cotton trade

2. Essential Questions: • What are the factors that contributed to the development of the market economy? • What is the impact of the market economy: Economically, Socially, Politically?

3. New Nationalism: Era of Good Feelings 1812-1820 • High period of prosperity and nationalism - unity • American System – Clay • Protective tariff • Second BUS • FFII • Internal Expansion – economically & west • Land and cotton trade = major expansion force

4. Economic Nationalism • Transportation infrastructure • Development in commercial agriculture, business/manufacturing & trade • Creativity and innovation • Unity • Jeffersonian and Hamiltonian goals and methods Role ofGovt.

5. Foreign Policy • Bully • Adams-Onis Treaty (Transcontinental) • Florida –US • $5 million – SP • Boundary clarified • US – gives up TX claims; SP - Oregon • SG – Pacific/Asia • Compromise • Rush Bagot Treaty • Demilitarized Great Lakes • Commission of 1818 • 49th parallel • 30 yrs joint occupation Oregon Treaty w/ Russia

6. Adams-Onis Treaty 1819

7. Monroe Doctrine 1823 • Issue – re-colonizing by Europe/Br • Principles • Non-colonization • Non-interference • SG • American unilateralism – autonomy in foreign policy • Eventual sphere of influence in LAmerica

9. Impact • Opportunity • Growth - demographics • Expansion – economic, geographic • Specialization • Sectionalism • American Exceptionalism • Paradox of Freedom • Individualism

10. Sectional Economies: South • Cotton • Elements for success • Land • Slavery (unfree labor) • Cotton gin • Demand – textiles – domestic/Europe

11. Sectional Economies: North • Textile (primary)/shoes etc. • Elements for success • Water • Capital • Labor (free) • technology

12. Regional Economies: West • Commercial agriculture – regional centers – grain/livestock –linked by rivers • Far West – furs, exchanges with the tribes

13. Contributing Factors • Distribution system • Interconnected domestic market • Unity --- Sectionalism tensions

14. Internal Expansion: Northern Society • Material growth and development • Telegraph • Railroads • Improvements in manufacturing and agricultural • Increase in volume and range of internal trade • Mass immigration

15. Railroads • 30,000 m by 1860 • New financing • Loans state and local • Land grants - federal

16. Transportation Revolution • Issue = create a cheap, efficient and dependable system • Roads ----Canals-----Steamboats • Emerging solution = RR • Postal system • Sectional differences

17. Lancaster Turnpike 1790 • By 1832 – 2400 miles of turnpikes

18. Conestoga Wagons &Trails

19. Yankee Clipper Ships

20. Fulton and the Steamship The Clermont

21. Erie Canal System – Clinton

22. Erie Canal 1820

23. Demographics • Population increase – 5.3-9.6 M • Labor & markets • Geographic changes – mobility – geographic, seeking opportunity • Regional changes – NE --- more urban, S and W --- agrarian

24. Immigration - Opportunity • 1820- 1840 700,000 • 1840 -1860 4.2 million;3 million arrived 1845-1855 • Greatest influx in proportion to population • 1.5 million Irish; 1 million + German • 66,000 Chinese • Nativism- American party

25. Impact on cities • Overcrowding, poverty, disease, crime • Segregated by social class • Ethnic neighborhood and self help groups (Five Points ) • Political parties and civic celebrations unify “cauldrons of democracy”

28. Favorable Government Actions • Limited liability and incorporation laws • Easy credit - climate for risk • Supreme Court Ruling which fostered economic development • Fletcher v Peck 1810 • McCulloch v MD 1819 • Gibbons v Ogden 1824 • Dartmouth v Woodward 1824

29. Key Supreme Court Cases • Fletcher v Peck & Dartmouth v Woodward – sanctity of contracts (public and private) (SCt. >state leg.) • McCulloch v MD(1819) • Implied powers clause affirmed • BUS affirmed • Gibbons v Ogden(1824)- federal government regulates interstate commerce • Cohens v VA – SCt >state SCt

30. Technology • Steam power • Interchangeable parts • Cotton gin • Power loom & spinning jenny • Power press • Eventually the telegraph

31. The Cotton Gin

32. Whitney’s Gun Factory • Interchangeable parts rifle

33. Entrepreneurial Leadership & Innovation • Factory system –Lowell System • Laborers = Mill girls; paternalism • Finance – Boston Associates

34. Use of Water Power

35. Impact: Labor • Mill Girls – Dublin essay • Decreased status artisans and workers • Gutman – transformation and adjustment • Decreased autonomy • First labor issues – ability to control conditions/terms of work • Commonwealth v Hunt 1842 – right to strike

36. Lowell Girls

37. “Mill Worker” James Taylor Millwork ain’t easy Millwork ain’t hard Millwork it ain’t nothing But an awful boring job I’m waiting for a daydream To take me through the morning And put me in my coffee break Where I can have a sandwich And Remember Then it’s me and my machine For the rest of the morning For the rest of the afternoon And the rest of my life So I may work the mills just as long as I am able And never meet the man whose name is on the label

38. Lowell Dormitories “Oh isn’t it a pity that a girl as pretty as I –Should be sent to a factory to pine away and die. Oh I cannot be a slave. I will not be a slave. For I am too fond of liberty.”

39. New Working Class – Wage Labor (wage slavery) • Immigrants replaced young unmarried native born women (most still women)– 61.7% • Decreased paternalism; impersonal; worker as machine or part - response • Tardiness; drunkenness, absence, loafing • Increase in labor militancy – race and ethnicity divided

40. Socio-economic Impact • Middle class emerges • Division of labor male/female • Social mobility – possibilities • Maldistribution of wealth increased • Increasing working class • Loss of status for the craftsman • New emphases – speed, time, efficiency • Materialism – wealth > intellect • Boom – Bust cycle

41. Political and Economic Impact • Sectionalism affected the party system faction – 2APPS (economics) • Environmental consequences • Anxiety – fears about loss of opportunity • Racism – fear of failure increased • Job competition in northern states

42. Images and Stereotypes • The minstrel show • Reinforced ideas

43. End of the Era of Good Feelings • Panic of 1819 – first major depression • Missouri Compromise 1820 • Defeats of FFII – Bonus Bill • Increasing sectional identity

44. Missouri Compromise 1820 • Issue – extension of slavery • Tallmadge Amendment – post natal emancipation • Sectional tensions – issues are highlighted • Compromise – Clay ---”sacred” • Maine free/Missouri slave (pattern balances Senate) • No slavery north of 36 30 in Louisiana Purchase territory --

45. Missouri Compromise

46. Prompt: The D of I announced and defined the principles by which the American nation would be based. When examining the market economy and its effects, analyze the extent to which it helped the nation to achieve these principles or impeded the achievement of these goals.

47. Ante Bellum American Art • Patriotic Art – post War of 1812 • Classic themes in sculpture and architecture

48. US Customs House 1836

49. Jefferson Rotunda UVA 1819

50. Capitol Rotunda