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The Economic Revolution 1820

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Title: The Economic Revolution 1820


1
The Economic Revolution18201860
2
  • How did industrialization affect the economy?
  • How and why did a transportation revolution occur
    before 1860?
  • Why did Americans both migrate westward and move
    to cities during the first half of the nineteenth
    century?
  • How did the rise of factories affect the social
    relationships of Americans?

3
  • In America, a French visitor remarked in 1839,
    all is circulation, motion, and boiling
    agitation. Enterprise follows enterprise and
    riches and poverty follow. Indeed, society was
    changing in basic ways.
  • In 1820, the United States was predominately an
    agricultural nation by 1877, it boasted one of
    the worlds most powerful manufacturing
    economies. This profound transformation affected
    every aspect of life in the northern and
    mid-western states and brought important changes
    to the agricultural states of the south as well.

4
  • People often have difficulty understanding how
    technological innovation developed. We can,
    perhaps understand this by looking at the
    contributions and careers of individuals such as
    Eli Whitney (In 1793 Eli finished his first model
    of the cotton gin (gin is short for engine).
    http//www.troop100.org/whitney.htm

5
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6
  • The entire country profited greatly from Eli
    Whitney's idea and ability. The north profited
    through the growth of it's cotton manufacturing
    industry. The south particularly benefited it now
    had a crop it could export which supported the
    planters and helped to raise the standard of
    living for it's people. Everyone was beginning to
    make money.

7
  • standard of living for it's people. Everyone was
    beginning to make money.
  • In 1800 Eli Whitney began to make muskets with
    the threat of war with France. He did this
    outside of Springfield on the Mill River which he
    used to power the plant. ) and Robert Fulton.

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9
  • In 1802 he contracted to build a steamboat for
    Robert R. Livingston, who held a monopoly on
    steamboat navigation on the Hudson. In 1807 the
    Clermont, equipped with an English engine, was
    launched.
  • A number of men had built steamboats before
    Fulton, including John Fitch and William
    Symington. Fulton's steamship, however, was the
    first to be commercially successful in American
    waters, and Fulton was therefore popularly
    considered the inventor of the steamboat. He also
    designed other vessels, among them a steam
    warship.

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11
  • Of course we need to understand technological
    innovation as a process of borrowing and creative
    adaptation, and in this vein we need to be aware
    of Britains contribution to Americas Industrial
    Revolution.

12
Economy
  • Two revolutions in industrial production and the
    market system transformed the nations economy
  • Factory owners used high-speed machines and a new
    system of labor discipline to boost production,
    and enterprising merchants employed a newly built
    network of canals and railroads to create a vast
    national market.
  • The manufacturing sector produced an
    ever-increasing share of the countrys wealth
    from less than 5 percent in 1820 to more than 30
    percent in 1877.

13
The Coming of Industry Northeastern Manufacturing
  • Between 1820 and 1860, the United States
    experienced an industrial and a market revolution
    that created a new economic structure.
  • Merchants and manufacturers organized
    increasingly efficient systems of production and,
    aided by skilled mechanics, introduced water- and
    steam-powered machines to turn out huge
    quantities of goods.
  • Simultaneously, merchants, traders, and
    shopkeepers created a vast market system in which
    they exchanged these manufactures for grain,
    meat, cotton, leather, and wool produced by a
    rapidly growing and westward-moving farm
    population.

14
Division of Labor and the Factory
  • Industrialization came to the United States after
    1790 as merchants and manufacturers increased
    output of goods by reorganizing work and building
    factories.
  • The outwork system was a more efficient
    division of labor and lowered the price of goods,
    but it eroded workers control over the pace and
    conditions of work.
  • For tasks not suited to outwork, factories were
    created where work was concentrated under one
    roof and divided into specialized tasks.

15
  • Manufacturers used newly improved stationary
    steam engines to power their mills and used
    power-driven machines and assembly lines to
    produce new types of products.
  • Some Britons feared that American manufacturers
    would become exporters not only to foreign
    countries but even to England.

16
  • British textile manufacturers were able to
    out-compete American manufacturers
  • The Americans' only advantage early in the
    nineteenth century was having abundant raw
    materials such as cotton. The British had cheaper
    labor, lower interest rates, and less-expensive
    shipping than the United States and used them
    effectively to keep prices lower than the prices
    of their American rivals.

17
The Textile Industry and British Competition
  • British textile manufacturers were particularly
    worried about American competition Britain
    prohibited the export of textile machinery and
    the emigration of mechanics who knew how to build
    it, but many mechanics disguised themselves as
    ordinary laborers and set sail.
  • Samuel Slater brought to America a design for an
    advanced cotton spinner the opening of his
    factory in 1790 marked the advent of the American
    Industrial Revolution.

18
  • The Americans' only advantage early in the
    nineteenth century was having abundant raw
    materials such as cotton. The British had cheaper
    labor, lower interest rates, and less-expensive
    shipping than the United States and used them
    effectively to keep prices lower than the prices
    of their American rivals.

19
Samuel Slater is a major figure in American
history and has been called both the "Father of
American Industry" and the "Founder of the
American Industrial Revolution."
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21
  • Congress passed protective legislation in 1816
    and 1824 levying high taxes on imported goods
    tariffs were reduced again in 1833, and some
    textile firms went out of business.
  • American producers used two other strategies to
    compete with their British rivals. First, they
    improved on British technology, and second, they
    found less expensive workers.
  • By copying the machines of British textile mills,
    Francis Cabot Lowells Boston Manufacturing
  • Company was able to build the Waltham factory,
    the first American factory to perform all the
    operations of cloth making under one roof at
    higher speeds than British mills and with fewer
    workers.

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23
  • The Boston Manufacturing Company pioneered a
    labor system that became known as the Waltham
    plan, in which the company recruited farm women
    and girls as textile workers who would work for
    low wages.
  • By the early 1830s, more than 40,000 New England
    women worked in textile mills women often found
    this work oppressive, but many gained a new sense
    of freedom and autonomy.
  • By combining improved technology, female labor,
    and tariff protection, the Boston Manufacturing
    Company sold textiles more cheaply than did the
    British.

24
  • The Waltham plan found a solution to competing
    with cheap British imports by hiring women and
    girls who could be paid less than men. The
    Waltham factory used waterpower--but was not the
    first to do so--and hired mostly unskilled labor,
    not skilled mechanics. It was a textile mill and
    did not produce flour.

25
Productivity
  • Productivity is defined as output per worker.
    Division of labor means that each worker was
    given one job within the production process,
    which improved productivity in American
    factories. Cheap labor and low wages are
    essentially the same thing, and, like cheap raw
    materials, they decrease costs rather than
    increase productivity.

26
American Mechanics and Technological Innovation
  • By the 1820s, American-born craftsmen had
    replaced British immigrants at the cutting edge
    of technological innovation.
  • The most important inventors in the Philadelphia
    region were members of the Sellars family, who
    helped found the Franklin Institute of
    Philadelphia in 1824.
  • Mechanic institutes were established in other
    states, which disseminated technical knowledge
    and encouraged innovation in 1820, the U.S.
    Patent Office issued about two hundred patents
    each year, but by 1860, it was awarding four
    thousand patents annually.

27
  • American mechanics pioneered the development of
    machine tools, thus fueling the spread of the
    Industrial Revolution.
  • In the firearms industry, Eli Whitney and others
    developed interchangeable and precision-crafted
    parts that enabled largescale production.
  • The expansion in the availability of machines
    allowed the American Industrial Revolution to
    come of age the volume and availability of
    output caused some products Remington rifles,
    Singer sewing machines, and Yale locksto become
    household names.
  • After the 1851 Crystal Palace Exhibition in
    London, Americans built factories in Britain and
    soon dominated many European markets.

28
  • The development of machine tools is significant
    because they. Machine tools reproduced
    standardized parts for other machines quickly at
    a relatively low cost. They did not make repair
    of complicated equipment easier, however, and
    were used by mechanics, who were usually men, not
    women or children. The British had no such
    similar equipment.

29
Wage Workers and the Labor Movement
  • The Industrial Revolution changed the nature of
    work and workers lives as more and more white
    Americans left self-employment and became wage
    earners though they had little job security or
    control over their working conditions.
  • Some journeymen formed unions and bargained with
    their employers, particularly in hopes of setting
    a ten-hour workday.
  • The Working Mens Party, founded in 1828, called
    for the abolition of banks, equal taxation, and a
    system of public education.

30
  • By the mid-1830s, building-trades workers had won
    a ten-hour workday from many employers and from
    the federal government.
  • Artisans whose occupations were threatened by
    industrializationshoemakers, printers, etc.were
    less successful, and some left their employers
    and set up specialized shops.
  • The new industrial system divided the traditional
    artisan class into two groups self-employed
    craftsmen and wage-earning craftsmen.
  • Under English and American common law, it was
    illegal for workers to organize themselves for
    the purpose of raising wages because they
    prevented other workers from hiring themselves
    out for whatever wages they wished.

31
  • In 1830, factory workers banded together to form
    the Mutual Benefit Society to seek higher pay and
    better conditions, and in 1834, the National
    Trades Union was founded.
  • Union leaders devised a labor theory of value
    and organized strikes for higher wages similar
    labor actions were taken by women textile workers
    as well.
  • By the 1850s, labor supply exceeded demand, and
    unemployment rose to 10 percent, resulting in a
    major recession and the Panic of 1857.

32
The Market Revolution
33
  • Three streams of migrants moved into the West,
    transplanting the cultures of the plantation
    South and yeoman New England in the Old
    Southwest, the Ohio River Valley, and the Old
    Northwest. State governments promoted this
    westward movement and the creation of regional
    and national markets by subsidizing the building
    of roads, canals, and railroads.
  • This infrastructure created a transportation
    system that was unprecedented in size and
    complexity. As domestic markets and production
    grew, urbanization accelerated in the Northeast,
    where industrial towns dotted the landscape, and
    New York City became the nations largest city
    and leading trading center.

34
Migration to the Southwest and the Midwest
  • People migrated to the West for several reasons
    some were looking for land for their children,
    others hoped for greater profits from the western
    soil.
  • By 1840, about 5 million people lived west of the
    Appalachians.

35
  • Migration occurred in three great streams
    southern plantation owners moved into the Old
    Southwest small-scale farmers from the upper
    South moved into the Northwest Territory and
    crowded New Englanders flowed into New York and
    the Great Lakes Basin.
  • Congress reduced the price of federal land in
    1820, and by 1860 the population center of
    America had shifted significantly to the West.

36
The Transportation Revolution Forges Regional
Ties
  • The National Road and other interregional,
    government-funded highways were too slow and
    expensive to transport goods and crops
    efficiently.
  • Americans developed a water-borne transportation
    system of unprecedented size, beginning with the
    government-subsidized Erie Canal.
  • The canal had three things in its favor the
    support of city merchants, the backing of the
    governor, and the gentleness of the terrain west
    of Albany.

37
  • The Erie Canal altered the ecology and economy of
    the entire region.
  • The Erie Canal brought prosperity to central and
    western New York, linked the economies of the
    Northeast and Midwest, and prompted a national
    canal boom.
  • The invention of the steamboat by Robert Fulton
    ensured the success of the waterborne
    transportation system.

38
  • The national government played a key role in the
    creation of this interregional system of
    transportation and communication the passage of
    the Post Office Act of 1792 allowed letters and
    banknotes to be carried from one end of the
    country to the other and the Supreme Court
    encouraged interstate trade by striking down
    state restrictions on commerce in Gibbons v.
    Ogden (1824).

39
  • The development of the railroad created ties
    between the Northeast and the Midwest, and by the
    1850s, railroads became the main carriers of
    freight.
  • By the 1830s,Midwestern entrepreneurs were
    producing goods that vastly increased outputJohn
    Deere plows, McCormick and Hussey reapersto
    replace the ones Americans had been importing
    from Britain.

40
Cyrus McCormick
John Deere
41
McCormick Reaper
42
John Deere Plow
43
  • Southern investors concentrated their resources
    in cotton and slaves, preferring to buy
    manufactures from the Northeast and Britain.
  • The Southern economy remained predominantly
    agricultural and generated less per capita income
    for Southerners than did the more industrial
    Northern economy.

44
The Growth of Cities and Towns
  • Due to the expansion of industry and trade, the
    urban population grew fourfold between 1820 and
    1840.
  • The most rapid growth occurred in the new
    industrial towns that sprang up along the fall
    line for example Lowell, Massachusetts
    Hartford, Connecticut Trenton, New Jersey and
    Wilmington, Delaware.

45
  • Western commercial cities such as New Orleans,
    Pittsburgh, Cincinnati, and Louisville grew
    almost as rapidly because of their location at
    points where goods were transferred from one mode
    of transport to another.
  • By 1860, the largest cities in the United States
    were New York, Philadelphia, St. Louis, and
    Chicago, in that order.

46
  • The old Atlantic seaportsBoston, Philadelphia,
    Baltimore, Charleston, and especially New York
    Cityremained important for their foreign
    commerce and, increasingly, as centers of finance
    and manufacturing.
  • New Yorks growth stemmed primarily from its
    control of foreign trade by 1840, New York
    handled almost two-thirds of foreign imports and
    almost half of all foreign trade.

47
Changes in the Social Structure
  • Economic growth prompted the delineation of the
    urban populace according to social class a
    wealthy urban business elite of merchants and
    manufacturers a prosperous, educated, and
    well-housed middle class and a mass of
    wage-earning laborers with little or no property.
  • Some artisans and workers formed trade unions in
    generally unsuccessful efforts to improve their
    economic welfare. Other working people,
    especially those without skills and those who
    could not obtain steady employment, lived in
    poverty.

48
The Business Elite
  • The Industrial Revolution shattered the
    traditional rural social order and created a
    society composed of distinct regions, classes,
    and cultures.
  • In the large cities, the richest 1 percent of the
    population owned 40 percent of all tangible
    property and an even larger share of the stocks
    and bonds.

49
  • The government taxed tangible property but almost
    never taxed stocks, bonds, or inheritances thus
    government policies allowed the richest to
    accumulate even more wealth at the expense of
    poorer men.
  • The wealthiest families began to consciously set
    themselves apart, and many American cities became
    segregated communities divided geographically
    along the lines of class, race, and ethnicity.

50
The Middle Class
  • A distinct middle-class culture emerged as the
    per capita income of Americans rose about 2.5
    percent per year between 1830 and the Panic of
    1857.
  • Middle-class Americans secured material comfort
    for themselves and education for their children,
    and they stressed discipline, morality, and hard
    work.

51
  • The business elite and the middle class
    celebrated work as the key to a higher standard
    of living for the nation and social mobility for
    the individual.
  • The ideal of the self-made man became a central
    theme of American popular culture.

52
Urban Workers and the Poor
  • The bottom 10 percent of the labor force, the
    casual workers, owned little or no property, and
    their jobs were unpredictable, seasonal, and
    dangerous.
  • Other laborers had greater job security, but few
    prospered many families sent their children out
    to work, and the death of one parent often sent
    the family into dire poverty.

53
  • By the 1830s, urban factory workers and unskilled
    laborers lived in well-defined neighborhoods of
    crowded boardinghouses or tiny apartments, often
    with filthy conditions.
  • Many wage earners turned to alcohol as a form of
    solace grogshops and tippling houses appeared on
    almost every block in working-class districts,
    and police were unable to contain the lawlessness
    that erupted.

54
The Benevolent Empire
  • During the 1820s, Congregational and Presbyterian
    ministers linked with merchants and their wives
    to launch a program of social reform and
    regulation.
  • The Benevolent Empire targeted drunkenness and
    other social ills, but it also set out to
    institutionalize charity and combat evil in a
    systematic fashion.

55
  • The benevolent groups encouraged people to live
    well-disciplined lives, and they established
    institutions to assist those in need and to
    control people who were threats to society.
  • Upper-class women were an important part of the
    Benevolent Empire through sponsorship of
    charitable organizations.
  • Some reformers believed that one of the greatest
    threats to morality was the decline of the
    traditional Sabbath.
  • Popular resistance or indifference limited the
    success of the Benevolent Empire.

56
Revivalism and Reform
57
  • To improve the living conditions and to balance
    the vices of the poor, upper-class Americans
    formed benevolent reform societies that promoted
    temperance, dispensed charity, and encouraged
    respect for the Christian Sabbath.
  • Simultaneously, Charles Grandison Finney and
    other evangelical clergymen gave new life to the
    Second Great Awakening, enlisting missions of
    propertied farmers and middle-class Americans in
    a massive religious revival movement.

58
  • Protestant evangelicalism heightened the cultural
    conflict between native-born Americans and
    millions of Catholic immigrants from Ireland and
    Germany.

59
  • Nativist writers attacked Irish Catholics as
    anti-republican, and American workers blamed
    immigrant labor for their economic woesattitudes
    that led to ethnic riots in many northern cities.
  • By 1860, the United States was a more prosperous
    society than ever before, but also one exhibiting
    numerous social and economic divisions

60
  • Presbyterian minister Charles Grandison Finney
    conducted emotional revivals that stressed
    conversion rather than instruction Finneys
    ministry drew on and accelerated the Second Great
    Awakening.
  • Finneys message that man was able to choose
    salvation was particularly attractive to the
    middle class.

61
  • Finney wanted to humble the pride of the rich and
    relieve the shame of the poor by celebrating
    their common fellowship in Christ.
  • The business elite joined the Cold Water
    movement, establishing savings banks and Sunday
    schools for the poor and helping to provide
    relief for the unemployed.
  • The initiatives to create a harmonious community
    of morally disciplined Christians were not
    altogether effective skilled workers argued for
    higher wages more than sermons and prayers and
    Finneys revival seldom attracted poor people,
    especially Irish Catholics.

62
  • Revivalists from New England to the Midwest
    copied Finneys evangelical message and
    techniques and the movement swept through
    Pennsylvania, North Carolina, Tennessee, and
    Indiana.
  • The temperance movement proved to be the most
    effective arena for evangelical social reform
    the American Temperance Society adapted methods
    that worked well in the revivals and helped the
    consumption of spirits to fall dramatically.

63
  • Evangelical reformers celebrated religion as the
    moral foundation of the American work ethic
    religion and the ideology of social mobility
    served as a cement that held society together in
    the face of the disarray created by the market
    economy, industrial enterprise, and cultural
    diversity.

64
Immigration and Cultural Conflict
  • Between 1840 and 1860, millions of immigrants
    Irish, Germans, and Britons poured into the
    United States.
  • Most avoided the South, and many Germans moved to
    states in the Midwest, while other Germans and
    most of the Irish settled in the Northeast.
  • The most prosperous immigrants were the British,
    followed by the Germans the poorest were from
    Ireland.

65
  • Many Germans and most Irish were Catholics and
    fueled the growth of the Catholic Church in
    America.
  • Because of the Protestant religious fervor
    stirred up by the Second Great Awakening,
    Catholic immigrants met with widespread
    hostility in 1834, Samuel F. B.Morse published
    Foreign Conspiracy against the Liberties of the
    United States, which warned of a Catholic threat
    to American republican institutions.

66
  • Anti-Catholic sentiment intensified mobs of
    unemployed workers attacked Catholics, and the
    Native American Clubs called for limits on
    immigration.
  • Social reformers often supported the anti-
    Catholic movement because they wanted to prevent
    the diversion of tax resources to Catholic
    schools and to oppose alcohol abuse by Irish men.

67
  • In most large northeastern cities, differences of
    class and culture led to violence and split the
    North in the same way that race and class divided
    the South.
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