Early 19c Industrialization in America: The Market Revolution

1. Early 19c Industrialization in America: The Market Revolution Chapter 8 Section 1

2. ESSENTIAL QUESTION: What were the results of early 19c industrialization in America?

3. Industrial Revolution- a major change in the way goods are produced, from hand production in home workshops to machine production in factories. It has affected all areas of human life, including transportation, communication, and business.

4. Scottish philosopher/economist who came up with the notion of a laissez faire economics. The surest road to economic progress was to allow businesses to compete freely and without legal restriction. Adam Smith

5. The dominate economic view in the 19th century, literally meaning to leave business alone, free from government regulation. The federal government began to crack down on abuses and regulate business only as the century came to a close. Laissez faire

6. Monopolies • A situation in which one producer controls an industry, thereby controlling production and prices.

7. Capital- the money available for investment. The Industrial Revolution required large amounts of capital to purchase machines, build factories, and train and pay workers. Corporation- a business chartered under state law. Corporations have advantages over other kinds of businesses because they can easily raise large amounts of capital; they also offer their stockholders limited financial liability.

8. The Transportation Revolution

9. First Turnpike- 1790 Lancaster, PA By 1832, nearly 2400 mi. of road connected most major cities.

10. Cumberland (National Road), 1811

11. Conestoga Covered Wagons Conestoga Trail, 1820s

12. Erie Canal System

13. Erie Canal, 1820s Begun in 1817; completed in 1825

14. Robert Fulton & the Steamboat 1807: The Clermont

15. Principal Canals in 1840

16. Inland Freight Rates

17. Clipper Ships

18. The “Iron Horse” Wins! (1830) 1830  13 miles of track built by Baltimore & Ohio RRBy 1850  9000 mi. of RR track [1860  31,000 mi.]

19. TheRailroadRevolution,1850s • Immigrant laborbuilt the No. RRs. • Slave laborbuilt the So. RRs.

20. New Inventions: "Yankee Ingenuity"

21. Resourcefulness & Experimentation • Americans were willing to try anything. • They were first copiers, then innovators. • Patent- Is a government document giving to the creator of an original object the exclusive right to make and sell that object for profit. 1800  41 patents were approved. 1860 4,357 “ “ “

22. Eli Whitney’s Cotton Gin, 1791

23. Eli Whitney’s Gun Factory Interchangeable Parts Rifle

24. Eli Whitney • Eli Whitney invented interchangeable parts. • Products could now be put together and repaired easier than if they were completely hand made.

26. Identical parts that can be substituted in the manufacture or repair of a product Invented by Eli Whitney to make muskets for the U.S. government Interchangeable Parts

27. Each worker adding one part in order to create a finished product Used first in Lowell’s textile (clothes) factories Resulted in the construction of factories across the Northern U.S. Assembly Lines

28. Eli Whitney – Cotton gin Elias Howe – Sewing Machine Robert Fulton – Steam Boat Thomas Edison- Light bulb (electricity) Alexander Graham Bell- Telephone (1874-1876) Francis Cabot Lowell and Samuel Slater – Assembly lines and factories Inventions

29. Industrial Revolution • British inventors began to make textiles with machines. • A British textile worker, Samuel Slater, set up a textile factory in Rhode Island in 1790. • This was the beginning of the Industrial Revolution in the U.S.!

30. Francis Lowell • In 1814, Francis Lowell opened a textile factory in Waltham, MA.

31. * As a result, the U.S. no longer had to buy finished textile products from Europe! 1845 Lowell factory pamphlet

32. Factory Workers • Women were paid half as much as men. • Working hours were long, and wages were low. Ex.) 12-15 hour work days • Earnings: men - $5 per week • women - $2 per week • children - $ 1 per week • Cities developed as farmers and immigrants took available factory jobs.

33. OliverEvans First automated flour mill First prototype of the locomotive

34. John Deere & the Steel Plow(1837)

35. Cyrus McCormick& the Mechanical Reaper: 1831

36. Samuel F. B. Morse 1840 – Telegraph

37. Cyrus Field & the Transatlantic Cable, 1858

38. Elias Howe & Isaac Singer 1840sSewing Machine

39. The “American Dream” • They all regarded material advance as the natural fruit of American republicanism & proof of the country’s virtue and promise. A German visitor in the 1840s, Friedrich List, observed: Anything new is quickly introduced here, including all of the latest inventions. There is no clinging to old ways. The moment an American hears the word “invention,” he pricks up his ears.

40. The Northern Industrial "Juggernaut"

41. Boom/Bust Cycles: 1790-1860 The blue line shows, for comparison, the price of a year’s tuition at Harvard College. In 1790 it was $24, but by 1860 had risen to $104.

42. Creating a Business-Friendly Climate Supreme Court Rulings:*Fletcher v. Peck (1810)*Dartmouth v. Woodward (1819)*McCulloch v. Maryland (1819)*Gibbons v. Ogden (1824)*Charles Rivers Bridge v. Warren Bridge (1835) General Incorporation Law  passed in New York, 1848. Laissez faire  BUT, govt. did much to assist capitalism!

43. Distribution of Wealth • During the American Revolution,45% of all wealth in the top 10% ofthe population. • 1845 Boston  top 4% owned over 65% of the wealth. • 1860 Philadelphia  top 1% owned over 50% of the wealth. • The gap between rich and poor was widening!

44. Samuel Slater(“Father of the Factory System”)

45. The Lowell/Waltham System:First Dual-Purpose Textile Plant Francis Cabot Lowell’s town - 1814

46. Lowell in 1850

47. Lowell Mill

48. Early Textile Loom

49. New EnglandTextileCenters:1830s

50. New England Dominance in Textiles