Group 4: Mike Wilcox & Poorwa Godbole

1. Group 4: Mike Wilcox & PoorwaGodbole Transportation, Market, and Industrial Revolutions & Panic of 1819

2. Targets • I can… • Describe the “Transportation Revolution” and explain its effect on the U.S. economy • Describe the “Market Revolution” and explain its effect on the U.S. economy • Identify the “Industrial Revolution” and describe the role of mass production and interchangeable parts • Identify the causes and results of the Panic of 1819

3. Transportation Revolution • There was a need for better transportation because: • Flatboats could not float upriver to transport goods • Wagons were too slow and expensive

4. Transportation Revolution • Steamboat construction improved • In 1807 the first steamboat capable of carrying heavy loads was made • Steamboats could travel up and down stream • Canal construction became more efficient • Opening of Erie Canal led to growth of canal construction across the nation • By 1840 a network of canals stretched from Illinois to the Atlantic Ocean

5. TransportationRevolution • Locomotives came into use in the United States in 1830s • Allowed commercial transportation of goods anywhere where tracks were laid • Decreased the traveling restrictions of flatboats and wagons because they did not depend on the presence of roads or water • Economical improvement: • Better transportation led to more purchases • National markets were created because goods could now be transported easily and inexpensively • Due to exponential increase in sales, national economy grew vastly

6. MarketRevolution • Profitable national markets were created during the early 1800s due to an improvement in transportation systems • Led to an increasein farmers’ and manufacturers’ profits • Convenience of transportation revolutionized the manner in which business was conducted • Towns grewbecause: • Small towns were linked through large businesses • Goods could be transported further distances to reach the ends of towns

7. Industrial Revolution • Shift to machine production in the field of manufacturing • Began in Britain in mid-1700s, with the invention of the new spinning mill, before spreading to US • Revolutionized textile industry through mass production - Manufacturing of large quantities of goods at one time • Increased efficiency and decreased costs of production • Eli Whitney brought about the use of interchangeable parts • Production of various parts in mass, which are then used to make individual weapons • Saved money • Later spread to other industries, not just the weapon industry

8. Industrial Revolution • Britain outlawed the sale of machines abroad and stopped textile workers from leaving country out of fear of foreign competition • Samuel Slater • Brought secret machine plans from Britain to US in 1789 • Constructed British spinning mill with financial support of Moses Brown • Soon shared mills with Brown all over Rhode Island and Massachusetts • Summary video

9. Panic of 1819 • Many manufacturers borrowed money from state banks to finance new enterprises • Due to booming economy, banks were lending out moneyfreely without checking credit • In late 1818, 2nd Bank of US ordered state banks to demand repayments of all loans & exchange all notes for gold & silver • Few banks could accomplish this task

10. Panic of 1819 • Sudden demand from Bank of United States caused a chain reaction of bank failures, falling land prices, and foreclosures • Nation fell into depressionfor several years • Weakened the optimism of the Era of Good Feelings