The market revolution - exam 3

  • Reminder: Charity group essay due in discussion sections on Thursday and Friday.

Overview of Historical Perspectives

  • Last class focused on traditional, event-based history (generals, politicians).

  • Today's focus: Economic history, covering the transport and market revolutions of the early nineteenth century.

  • Key themes:

    • Easier, faster, and cheaper movement across the country.

Transportation Revolution
Pre-1830 Travel Methods

  • Key methods of transportation before 1830:

    • Horse riding

    • Mules and various animals

    • Carriages or wagons

  • Limitations:

    • Horse riding challenging in regions like East of the Mississippi.

    • Carriages require roads.

Improvements in Water Navigation

  • Key features of the transportation revolution:

    • Canal building boom in the early nineteenth century, notably the Erie Canal.

    • Enhancements to waterway accessibility.

    • Water travel significantly faster than overland travel before 1830.

Erie Canal

  • Important canal details:

    • Connects Lake Erie to the Hudson River.

    • Begun in 1817, completed in 1825.

  • Unique communication method:

    • Messages relayed using cannon fire as a signal, like notifying people of the canal's opening.

    • Example: Message sent from Buffalo to Albany in about 2.5 hours.

    • Analogous to ancient signal fires.

  • Washington Irving (1819):

    • Discussed rapid changes in transportation in his story "Rip Van Winkle."

    • Reflected on cost reductions (e.g., clocks, mattresses) due to the canal's influence.

Economic Implications of the Erie Canal

  • Lower prices for goods:

    • Example: Clocks dropped from $60 to $5; mattresses from $50 to $4.

    • Increased competition from larger farms out West.

  • Result: Farmers faced decisions to adapt or abandon their farms; many abandoned houses were seen in 1830s New York.

Railroad Development

  • Importance and societal transformations:

    • Railroads, a consequence of the transport revolution, became essential for economic growth.

    • Faster than any other form of transportation before.

  • Example of advancements:

    • 1817: 25 days from New Orleans to Louisville.

    • By 1826: Reduced to 8 days.

National Road

  • Historical context:

    • Established to connect Ohio to the East, funded through the sale of public lands.

    • Congress aimed for self-funding through tolls (e.g., 23¢ for carriages).

  • Political tensions:

    • Disputes over federal versus state vs. private responsibilities for funding roads.

    • Thomas Jefferson initially favored public funding, but vetoed funding for the National Road in 1805.

    • John Calhoun, despite being a nationalist as Secretary of War, later opposed federal involvement, turning against the U.S. in 1822.

    • Calhoun claimed federal expense could improve local harbors, showcasing the evolving political landscape.

Economic and Political Shifts
Railroads vs. Canals

  • Political implications:

    • Henry Clay proposed an "American system," focusing on high import duties and internal improvements.

    • South's reluctance due to reliance on cotton rather than infrastructure and fears of government overreach into state rights.

    • Jackson believed improvements should be handled at the state and private level, leading to major debates around funding and expansion.

Communication Revolution
Telegraph and Printing Innovations

  • Samuel Morse’s telegraph:

    • Enabled near-instantaneous communication.

  • Transformation of newsprint:

    • Shift from high-cotton newspapers to affordable wood pulp, fostering access to mass information.

  • Impact on public engagement:

    • More people could access and keep up with news and prices due to improved information flow.

Role of Post Office

  • Post offices as primary interaction with the federal government:

    • Opened seven days a week until 1913.

  • Increased importance of mail delivery for community engagement.

Industrial Revolution
Britain as the Catalyst

  • Emergence of machine textiles in the 1740s:

    • Innovations in spinning cotton leading to industrial growth.

    • Resulted in a shift in clothing accessibility.

Cotton Gin

  • Eli Whitney's cotton gin (1796):

    • Revolutionized cotton processing, increasing production efficiency.

    • Resulted in agricultural boom and reliance on enslaved labor in the South, with cotton becoming 40% of U.S. exports.

Cultural Implications

  • Shift from individual craftsmanship to mass-produced goods:

    • Change in consumer patterns and social dynamics.

    • Altered perceptions of time and work, emphasizing efficiency tied to industrialization.

Economic Systems in Flux

  • Post-1812 expansion leading to agricultural changes:

    • Farmers often relied on credit to finance operations.

  • Panic of 1819:

    • Resulted from overproduction and bank loan crises, fostering distrust in financial institutions among farmers.

    • The Bank of the U.S. ceased issuing loans, leading to widespread financial panic and loss of confidence in banks.

Free Labor Ideology

  • Concept of free labor emerged:

    • Defined as the belief in working independently and self-improvement.

    • Abraham Lincoln's expression of the ideology highlighted progression from working for others to self-employment, at the heart of America's identity.

Conclusion

  • Discussion of how transportation and economic revolutions shaped American identity and opportunities:

    • Indicated the growing interconnectedness of the nation and the emergence of a competitive economic environment.