Industrialization and the Rise of Capitalism in the North

Industrialization

The Rise of Capitalism in the North

• Colonial Production:
  • Supply of raw materials from the colonies to England.
  • Finished products were then sent back from England, thus limiting local market production.
  • Subsistence production was dominant, with over 80% of the population engaged in family farms.
  • 10-15% lived in urban areas.
  • Singular artisan production following the guild model was the norm.
  • Production methods were conservative.
  • During the Revolution, the English supply was cut off, creating a need for weapons, tools, and machines.
  • The Early Republic saw trade in agricultural goods and local artisan markets due to few factories. Example mentioned is of Paul Revere coopers at work.

Hamilton’s Vision

• Report on Manufacture, 1791: Alexander Hamilton advocated for public money to be applied to manufacturing.
  • He stated, “There is no purpose to which public money can be more beneficially applied”.
  • He also proposed a National Bank.
• The Rise of Trade Cities: Cities like Philadelphia, Boston, and New York experienced expanding populations and markets.
  • Philadelphia: 1776: 25,000; 1820: 65,000; 1860: 565,000
  • New York: 1776: 16,000; 1820: 60,000+; 1850: 700,000
  • Boston: 1776: 20,000; 1820: 44,000; 1850: 138,000

Artisan Trades

• Predominance: Artisan trades predominated, with limited mass production.
• Examples: Shoes, furniture, clothes, woolens, and silk.
• Whaling and Whale Oil: Important industries of the time.
• “Luddite” Reaction: Journeymen strikes against the division of labor techniques.
  • NYC, 1820, Boston Carpenters, 1829
  • Paterson Children’s Strike, 1835
• Adoption of Machinery and Innovation:
  • English Textile Inventions
  • English Steam Engine
  • Cotton Gin

New England Resources

• New England had resources and Southern raw materials as well as a wage labor pool.
• Farmer’s Daughters:
  • Cycle of Life: Many young women from farming families worked in factories.
  • Pay Deflation: Wages decreased over time.
  • Stress of Division of Labor: Factory work was often highly repetitive and stressful.
  • Boardinghouse Culture: Factory girls often lived in company-owned boardinghouses.
  • Male Supervision
  • Speed Up: Factories increased the pace of work.
  • Strikes: Factory Girls Association organized strikes.
• Immigrants:
  • Irish immigrants in the 1840s-60s contributed to lower wages.

Technological Advancements

• Steamships:
  • Robert Fulton, 1807
  • Infrastructure Needs
  • Manufacturing Needs
  • Application in Western Expansion
• Railroads:
  • John Stevens, 1830s
  • Infrastructure Needs
  • Manufacturing Needs
  • Application in Western Expansion
• Telegraph:
  • Samuel Morse, 1838
  • Trans-Atlantic, 1858

National Railroad Growth

• Railroad mileage increased dramatically over time.
  • 1830: 23 miles
  • 1840: 2,800 miles
  • 1850: 9,000 miles
  • 1860: 30,600 miles
  • 1870: 53,000 miles
  • 1880: 40,300 miles
  • 1898: 163,600 miles
  • Total investment $1,184,000

North vs South

• Railroads:
  • North: 20,000 Miles
  • South: 9,000 Miles
• Factories:
  • North: 100,000
  • South: 20,000
• Wage Laborers:
  • North: 1,100,000 (out of 18.5 million)
  • South: 111,000 (out of 3.5 million slaves in 9 million)
• Value of Products:
  • North: 1,500,000,000
  • South: 155,000,000
• Bank Deposits:
  • North: 189,000,000 (10.6%)
  • South: 47,000,000 (5.2%, 9.4%)
• Urbanization:
  • North: 25%
  • South: >10%