Regional Economies Create Differences

1. Regional Economies Create Differences Chapter 7 Section 1

2. I Another Revolution Affects America • Interchangeable parts manufacturing out of ppls homes into factories • Factory System= using power driven machineryMass Production= production of goods in large quantities • Both lead to Industrial Revolution= massive change in society and economy as a result of large scale mechanized factories

3. A. Great Britain Starts a Revolution & Industrial Rev. in US • Industrial Rev. began in GB w/ invention of water, steam, & coal powered machines used to produce mass goods • Rushing rivers, coal deposits, & labor that allowed GB to industrialize was available in the US • US main source of income= international trade • War of 1812 blockades hurt foreign tradeUS dev. Industries at home

4. B. New England Industrializes • NE center of industrialization • GB made illegal for anyone w/ knowledge of industrial mach. To leave • Sam Slater comes to Amer. Built 1st successful mechanized textile factory in RI • Francis Cabot Lowell built mechanized weaving factory w/ power machines in Mass. • Built entire town for workers including homes for rent, & storesextremely successful • Lowell Girls= young girls who moved to work in Lowell’s factory's • Town of Lowell named after him

5. II Two Agricultural Systems Develop • As N was developing industries, the S continued to reap benefits of cotton • N & S develop a completely diff. econ. systems

6. A. Cotton becomes King in the South • Eli Whitney invents the cotton gin • Made it possible to remove seeds from easier to grow short staple cotton • S sold clean cotton to GB and NES made large profits • Wealthy planters bought large areas of land and bought slaves to cultivate land • More and more planters begin to profit from cotton • Cotton gin expansion of slavery

7. B. Slavery becomes Entrenched • Slavery was more econ. To southern planters who profited from slave labor • Fought to keep slavery legal • Increase of cotton production=increase of slave labor • Few Af. Amer. Were free • Bought freedom by hiring themselves out after they finish daily work • Some ran away or granted freedom after yrs. Of service

8. III Clay Proposes the American System • Madison proposes econ. Plan to unify country’s diff. regions and econ. • Henry Clay names Madison’s plan the American System • Protective Tariff • Resurrection of Nat’l bank (reduced under Jefferson) • Gov’t sponsoring trans. Systems • N would manufacture goods that the agricultural S & W would buy • S & W would produce food & cotton that was needed in the N

9. A. Tariffs & the National Bank • GB goods priced lower then Amer. Made goods Amer. Bought cheaper GB goods • Tariff of 1816=allowed US to compete by forcing foreign co. to raise price of goods to pay for tax • $ brought in from tariff would be used to build roads & canals • S didn’t support because gov’t was raising prices • Support for national bank was more universal • Reg. banks were issuing their own currency which made trade diff. • 2nd National Bank made single currency guaranteed to be accepted around the nation • Congress passed the 2nd Bank of US for 20yrs.

10. B. Erie Canal & Other Internal Improvements • There needed to be a way to connect people in order to do business • States built roads (turnpike paid for themselves) • Nat’l Road= 1st major highway built by the gov’;t • Erie Canal= connected Hudson River and Great Lakes • Improvements led to flourishing countrymost Americans were happy • Monroe becomes president & ushers the “era of good feelings”