AP US History - Chapter 8: Economic Transformations Notes

Money Hungry Americans

“A Nation of Merchants” - America as a country and as a people were very economically motivated, aspiring to make and maintain wealth (ties back to rich people starting the dissidence with britain bc they made money smuggling and britain was trying to shut it down. They made plenty of profits from the various french wars including the revolution and then Napoleon.

American Millionaires - John Jacob Astor and Robert Oliver became the nations first millionaires. Benefited from lines of credit changing from primarily overseas in european countries to local options thanks in part to the National Bank, allowed many to profit

Death of the National Bank - Jeffersonians attacked the bank as being unconstitutional and when its charter ran out Congress refused to renew it, which lead to a boom in state chartered banks (246 by the time the second national bank was chartered), many of which were predatory towards their customers

Panic of 1819 - Was the first major economic crisis in America as agricultural prices dropped steeply, leading to a major downturn for farmers who suddenly found themselves unable to pay debts owed to both banks and stores. Caused both by external pressures and bad banking policy

Transportation and the Market Revolution

“American System” - Fought for by Henry Clay, included the National Bank, Infrastructure improvement (never to fruition), Tariffs to raise revenue

A Commonwealth System - Mirroring the navigation acts that had brought Britain prosperity, American government turned it’s mind for economic development inward. Aid was funneled into private companies that would promote the “general welfare” This included iron mining, textile producing, banking, and other companies. Was promoted due to Jefferson’s embargo

Transportation Projects - Were notably benefited by the developing commonwealth system. These turnpikes and other similar projects boosted the economy by increasing connection between communities and tolls. Westward migration also increased demand for reliable methods of transportation

Loss of Native Land - For westward migration to be possible on the scale it happened, those already living there had to lose the land. Due to defeats in the War of 1812 and treaties with various groups, millions of acres of land were brought into the public domain

Connecting East and West - With a wave of migration west, there was push to further connect the old and new lands for trade and migration to become more possible. Due to this farmers settled near the Ohio River and its many tribituaries to make it easy to get their goods to market. Cotton, grain, and meat were all sent downstream to New Orleans on barges. Additionally, the National Highway was constructed from compacted gravel, creating easy access no matter what direction one was travelling

Canal Innovation - Overland travel was slow, even on well built roads, and rivers only went where they naturally wanted to, so the next development was that of the canal system. These systems were very costly and complex, pursued due to the idealized ease of using them to facilitate trade. This led to another flux of migration to the midwest which was developing into a rich society.

The Erie Canal - One of the most iconic canals was the Lake Erie Canal, which while it had many enviromental drawbacks was widely regarded as an economic success, connecting the Hudson and Lake Erie in New York. It brought greater prosperity to the region as it connected manufacturers and producers of raw materials, allowing them to easily exchange goods as compared to on land transport. Lead many other states to try and mimic their achievements, pouring money into canals of their own.

The Market Revolution - Due to transportational and financial developments, the economy boomed. Trade and exchange of goods increased. Americans had more capital than ever, more financial liquidity, and the ability to buy and sell things over previously great distances

Steamboats - Another crucial innovation, steamboats halved the costs of upstream navigation. This dramatically increased the flow of goods, people, and news, halving travel times.

Westward Settling - As travel became easier, prices of land went down, making it easier than ever for people to settle on their own farmsteads, both in the North and the South

National Post Office - The canals were subsidized by state legislatures, but the government created a post office which facilitated easy flow of goods, money, and information. This furthered Gibbons vs. Ogden by making blockages of people goods and information by monopolies not coolio.

Telegraph Lines - The next step in the speeding up of information was the innovation of the telegraph, which used Morse code and electricity to send messages through wires. Telegraph wires spread, thus making information significantly easier to spread as well, shrinking the wide open spaces of america.

The Cotton Complex

The Industrial Revolution - While the United states were still primarily agricultural and manufacturing was relatively weak in comparison, they were still hit with the developments of the industrial revolution. From 1790-1860, factories were built and natural resources were exploited

The cotton complex - Really the center of the American Industrial Revolution. Was the relationship between northern industry and southern agriculture. In the northeast cotton mills were developed and could process cotton at high speeds thanks to their workers and machines. This increased demand for cotton, shifting the southern economy as well.

The American Industrial Revolution - Clothmaking for centuries had been a slow arduous process, but technical advancements, specifically in England, made it no longer so. The flying shuttle kicked this off, making it so cloth could be made faster than yarn. This prompted innovation in the field of spinning fibers into yarn. Great Britain tried to protect these innovations but many mechanics emigrated illegally to bring their knowledge to America. These machines used the quick running appalachian water as power, and they multiplied massively

British Advantages - British still had a leg up in the industry because of the prosperity of cheap labor as compared to America meaning they could undersell american merchants. Tariffs were put on British cloth as to help american entrepeneurs.

American Comeback - By improving their machinery and making them more efficient, as well as finding cheaper labor in unmarried farm women, American companies were able to compete with the British. More natural resources than britain

Waltham-Lowell System - How textile manufacturers acquired workers, boarding them and giving them better wages/independence to lure more workers away from the farm. They enjoyed some new freedom and while it got exhausting, it was an alluring life to live. Then, wages dropped and many workers went on strike, eventually being replaced with immigrants from ireland and canada

The Cotton South - Cotton had always been relatively hard to produce, so for that to change there had to be a coincident revolution in agriculture to keep up with the demand, based on new cheap labor. An arc of fertile soil in the southwest across several states created an ideal landscape for cotton to thrive on the backs of enslaved laborers

The Decline of Slavery - From 1776-1800 both blacks and whites were weary towards slavery and how broadly it disagreed with the outward principles of freedom that America held dear. The North slowly ended slavery through gradual emancipation acts, but still treated blacks as others as a second class citizen. Many slaves in the south believed the revolution would free them what with british proclamations, while some struck deals with their patriot owners and were given their freedom. Slavery was on a decline in the Chesapeake due to a depressed tobacco market, human rights rhetoric spreading, and the ideal that they could be spiritual equals. Manumission become popular especially in the Chesapeake.

Slavery Defense - Many still stood behind slavery, viewing it as a valuable institution that if taken down would threaten their way of life. Especially in rice states it was more entrenched and as cotton boomed it became even further so as plantation life moved inland

Expansion in the South - Thanks to the cotton boom, people expanded up from new orleans and west from the southern states, settling in lands they could comfortable grow cotton. The cotton boom tripled land value in the south, and the government help removed natives so people could capitalize on that land

British investments - As the industry grew, it attracted sales from the british, and cotton became a leading export, with 85% to be sold and processed in great britain.

Domestic Slave Trade - As the cotton industry demand for labor grew, slave owners in the chesapeake realized they had surpluses of slaves that could be sold for profit, moving thousands of slaves further south. Gained quite a bit of back lash especially in the north due to the cruelties of the deep south and the ingrained violence of the crops. By selling slaves, those in the east maintained their wealth.

Violence of Slavery - Slaves were pinned as property, used fear and punishments to keep control, and families were frequently torn apart. Despite this, the sense of family remained strong, even in the face of inevitable seperation. They were physically and brutally coerced into labor and it was very ugly

Ideology and Benevolence - Slavery was posed as a good thing as slaves were further dehumanised. They were shown religion, but it was then put as the reason they were slaves, a natural state of being to keep things the way they were. Despite the inherent brutality, many planters saw themselves as paternal towards their slaves

Technological Innovation and Labor

Beyond Cotton - The case study of cotton production extended beyond the limited scope of the field, American mechanics as a whole became more innovative, leading the world in creating products and devices that could simplify production and make it more efficient

Worker Life - Skilled workers unionized to strengthen their bargaining position with employers so they could continue to benefit from these advancements in technology. Lower skilled workers in factories tried to organize as well but faced obstacles legally. Urban populations swelled in old and new cities

Innovation by the Sellars - The Sellars family was Philadelphian family that produced quite a few inventors. Founded the Franklin institute in 1824 along with other mechanics, they respected

American Craftsmen - Between 1820 and 1860 the number of patents in the US increased dramatically. They pioneered the development of machine tools, machines that make parts for other machines

Eli Whitney - A key innovator in the American Industrial revolution. Was the og patent of the cotton gin, which others quickly improved on to capture the market. He then switched to weapons manufacturing, earning wealth and fame

Impact of Innovation on Manufacturing - Innovation exponentially increased the efficiency of manufacturers. Textile industry machines produced parts for looms and jennies that because they were industrially made worked very quickly and uniformly. axes could be mass produced, everything started to be made by machine. Manufacturers became household names as goods became mass produced and widely accessible

Spread of Manufactured Goods Overseas - American goods won praise at the Crystal Palace Exhibition, leading firms to become multinational businesses, building factories in Britain and selling goods in europe. The Singer Sewing Machine Company benefited immensely from this, holding 75% of the market share

Artisan Republicanism - An ideology of production based on liberty and equality. They saw each other as equals. Really celebrated small scale production and the ability to work for oneself.

Rise of Wage Workers - As factories rose to prominence, more and more workers became wage workers. Unlike embracing their status like the women of the Lowell system had, they refuted the terms master and servant, calling superiors their boss. They received meager wages and had little job security but still developed their own working class culture

Unions - Started to form during the industrial union, especially of skilled wage workers, who developed their own demands for how they’d work, even going on strike. Victories such as St. Louis craft workers and later government workers earning a ten hour work day. Were viewed as illegal, and widely disliked by the upper class who believed wages and labor should just manage themselves. Be managed by employers. However employers still were conspiring about wages

Splitting of the Artisans - As manufacturing developed, previous craft workers like weavers, shoe makers, hatters, printers faced the prospect of factory work. Others, like carpenters and cabinet makers developed a personal style, making cool stuff to differentiate themselves from mass production. Created a class of self employed vs factory workers

Development of Unions - Despite lack of support, unions still grew because workers realized their bosses just wanted to get as much labor as possible. Workers got popular support and started organizing on a greater level, even winning the right to call strikes in massachussets. Were still massively oopposed by higher ups though.

Labor Theory of Value - The idea that prices should respect labor and the money should go to the laborers and producers, rather than the owners and middlemen. This included to female textile workers who as the industry fell, were paid worse and thus went on strike and removed money from employer banks. Were to be replaced by irish

Growth of Cities - from 1820 to 1840 city populations rapidly increased by more than fourfold. Cities along fast flowing rivers were especially growing (LOWELL). Western cities that started as transit centers also grew, even in the midwest. Became manufacturing centers. Atlantic Seaports also became important for international commerce, and finance and small time commerce

New York - best harbor in the US, best gateway to midwest bc of erie canal. Monopolized trade with south america and took over trade in cotton, offering shipping finance and insurance to