APUSH Chapter 8 Economic Transformations

Chauncey Jerome was a prominent clockmaker in the early 19th century, known for his innovative production methods and the establishment of the first mass production of clocks in the United States, which significantly contributed to the Industrial Revolution. His techniques not only improved efficiency but also made clocks more affordable, leading to widespread adoption and a change in how Americans perceived time.

The United States ranked 3rd in the world manufacturing input

“Business is the very soul of an American: the fountain of all human felicity”

New system of production based on water and steam power.

Industrialization challenged the founders’ vision of an agricultural republic with few distinctions of wealth.

Waldon Emerson warned in 1839”The invasion of Nature by Trade with its Money its Credit, its steam, its railroad threatens to… establish a new, universal monarchy”.

FOUNDATIONS OF A NEW ECONOMIC ORDER

Republicanism was a political philosophy that valued representative government and sought to implement “commonwealth” principles.

Private property, market exchange and individual opportunity were widely shared values, and throughout the nation.

Neomercantilist→ system of government-assisted economic development embraced by state legislatures, it encouraged entrepreneurs to enhance the public welfare through private economic initiatives.

CREDIT AND BANKING

America was a “nation of Merchants”

American banks outranked European firms because of the Napoleonic wars.

Robert Oliver was a prominent banker who played a significant role in the expansion of the American banking system, facilitating trade and commerce during this transformative period. His strategies included innovative lending practices and the establishment of new financial institutions that supported both local businesses and large-scale enterprises.

John Jacob Astor was a key figure in the fur trade and became one of the first American millionaires, significantly impacting the economy through his ventures in real estate and trade.

Jeffersonians attacked the first bank of the united states and deemed it unconstitutional “ an extension of federal powers”.

Bad banking polioces culminated in the PANIC OF 1819 but also factors as the napoleonic wars and the 30% plummeting on agricultural worldwide prices.

This was the first taste of a business cycle.

TRANSPORTATION AND THE MARKET REVOLUTION

Governments chartered turnpikes and canal companies reflected in the ideology of mercantilism.

Enaction of the great public utility which aimed to increase the commonwealth

State governments created a republican political economy “A commonwealth system”.

Congress approved funds for a national road constructed of compacted gravel.

SHRINKING SPACE:CANALS

This transportation system set in motion a mass migration of people to the Greater Mississipi River Basin which contained the largest and most productive contiguous acreage of arable land in the world.

The key event was the New York legislatures 1817 financing of the ERIE CANAL a 364 mile waterway connecting the Hudson River and Lake Erie.

Witt Clinton supported it by proposing the financing by taxes tolls and bond sales.

This was an instant economic success.

It allowed northeastern manufacturers to ship clothing, boots, and agricultural equipment to farm families; in return, farmers sent grain, cattle, hogs, and raw materials. to eastern cities and foreign markets.

The Michigan and Illinois Canal linked Chicago to the Mississipi River, completed an inland all-water route from New York City to New Orleans two most important cities in North.→ Market Revolution.

Shrinking Space: Steamboats→New product of the industrial revoutiojn

The first one was named Clermont. it halved the cost of upstream boats.

Congress in 1820 reduced the price of federal land from 2 dollars an acre to 1.25. For 100 a farmer could buy 80 acres, the minmun required under federal law.

While state legislatures subsidized canals

The national government created a vast postal system.

Post Office Act of 1792 created 8000 post offices by 1830.

EsTABLISHING OF FEDERAL SUPREMACY AGAINST STATE GOVERNMENT in Gibbons v. Ogden.

SHRINKING SPACE:THE TELEGRAPH\Smauel F.B. Morse and Alfred Vail invented a code for transmitting letters and numbers through miles of wire.

Magnetic Telegraph Company was founded to create the first network of telegraph lines.

Western Union was formed in 1856 to consolidate operations of smaller companies.

THE COTTON COMPLES: NORTHERN INDUSTRY AND SOUTHERN AGRICULTURE.

Cotton Complex was a economic system devekioed in the first half of the nineteenth century binding the southern cotton production with the northern clothmaking, shipping and capital.

THE AMERICAN INDUSTRIAL REVOLUTION

tHE FLYING SHUTTLE 1733 MADE IT POSSIBLE TO WEAVE CLOTH MUCH MORE RAPIDLY THAN YARN COULD BE SPUN.

mechanics was a term used in the nineteenth century to refer to skilled craftsmen and inventors who built and improved machinery and machine tools for industry.

Samuel Slater was the most important emigre mechanic in 1789 who brought British textile technology to America, establishing the first successful cotton spinning mill in Pawtucket, Rhode Island.

AMERICAN AND BRITISH ADVANTAGES

British manufacturers easily undersol American competitors because they enjoyed the benefit of efficient shipping networks, cheap labor .

To counter these advantages ameirca, passed tariff bills that placed high taxes on imported cotton and woolen cloth.

Better Macines, Cheaper Workers.

They improves on British technology, they tap on cheap labor young women,\\\\

Walthen-Loweell System : A labor system that recruited young women from rural areas to work in textile mills, providing them with wages and opportunities for education while maintaining strict supervision and discipline. This system not only increased production efficiency but also fostered a sense of independence among these women, as they contributed to the family income and gained skills that would empower them in the future. it declines in the late 19th century due to changing labor dynamics and the rise of immigrant workers, who were oten willing to work for lower wages, leading to the eventual phasing out of the Walthen-Lowell System.

SArah George Bagley organized a group of workers to protest and led to the demise of the system.

ORIGINS OF THE COTTON SOUTHa

Black belt of the American Southeast was characterized by its fertile soil and favorable climate, which made it ideal for cotton cultivation. This region became the backbone of the cotton economy, heavily relying on slave labor to meet the growing demands of both domestic and international markets. The expansion of cotton plantations not only fueled the Southern economy but also reinforced the institution of slavery, leading to significant social and political tensions between the North and South.

Gradual emancipation efforts in the North began to emerge as a response to the moral and economic dilemmas posed by slavery, leading to debates about its future and the rights of African Americans.

THE DECLINE OF SLAVER 1776-1800 y was influenced by various factors, including the Revolutionary War, which promoted ideals of liberty and equality, and the economic shifts that began to favor wage labor over slave labor in certain Northern states.

THE NORTH ENDS SLAVERY SLOWLY

1780 activists in penn passed the first gradual emancipation law it set a precedent.

New York emancipation ACT of 1799 established a gradual process for freeing enslaved individuals, allowing those born into slavery after July 4, 1799, to be freed at the age of 25, further indicating a shift in attitudes toward slavery in the region.

Freed blacks suffered prejudice from their white counterparts because of job competitions and racial medling.

reenaction of old statue that prohibited whites from marrying blacks mulattos or indians.

MANUMISSION IN THE CHESAPEAKE

Manumission act of 1782allowed owners to free their slaves.

Slavery was in decline for three reasons one the tobacco economy was chronically depressed sift to wheat or livestock.

Second many were committed to the principle of human liberty Evangelical Christian

Third Evangrelical Christianity encouraged some planters to regarded their slaves as spiritual equals.

SLAVERY RESURGENT FEARING THE TOTAL EMANCIPATIOn

Virginia repealed the manumission act.

Politicians argued it was a “necessary evil”

Quaker manumissions were considered “Highly criminal and reprehensible.

Rice was the main slave production it was concentrated on shores.

Cotton change that and allowed for the expansion of slaveery inland.

Eli Whitney devised a machine called Ctton gin that could quickly separate seeds from the delicate fibers.

THE COTTON BOOM AND SLAVERYThe cotton boom led to an unprecedented demand for slave labor, as plantations expanded across the southern states to meet the needs of both domestic and international markets.

Slave plantations push in two ways, westard and northward

The south converted into the most valuable real state in the world.

Cotton cultivation became the cornerstone of the nation’s economy.

First 85 percent of cotton was exported to London “Cotton is King”/

THE UPPER SOUTH EXPORTS LSAVES to the Deep South, where they are used to expand cotton production and increase profitability in the booming agricultural sector. This system of internal slave trading not only fueled the expansion of cotton plantations but also solidified the economic dependence of the entire southern region on slave labor. As a result, the South's economy became increasingly intertwined with the institution of slavery, leading to significant social and political ramifications that would shape the region's future.

cOASTAL TRADE WAS HIGLY VISIBLE IT ELICITED WIDESPREAD CONDEMNAATION BY NORTHERN ABOLITIONISTS

Sugar was converted to a killer crop

SOUTH was considered as a place of slaughter.

The Inland system was less visible but more extensive, as it connected the rural South to urban markets, facilitating the movement of enslaved people and goods through internal trade networks. This system enabled the South to maintain its agricultural economy while also supporting the growing demand for labor in various industries.

Many planters doubled as slave traders.

The domestic slave trade was crucial for the prosperity of the fast developing Cotton South.

The trade of slaves served as an almost universal resource to raise money.

THE IMPACT ON BLACKS was profound, as families were often torn apart and individuals faced brutal conditions during transportation and sale.

The slaves earnings belong to me because I bought him.

This commodification of human lives created a system where the value of a slave was tied directly to their labor output, further entrenching the institution of slavery in Southern society. This led to a dehumanizing perspective that viewed enslaved individuals solely as property, stripping them of their personal identities and rights.

“They regard the south with perfect horror, and to be sent there is considered as the worst punishement”. used as terror coercion

The interstate slave trade often focused on young adults.

THE IDEOLOGY AN REALITY OF BENEVOLENCE.

Jhon c calhoun argued it was “positive good” for the economy and society, claiming that slavery was beneficial for both slaves and slave owners, as it provided a stable labor force and ensured the continuation of a prosperous agricultural system.

Christians tried to shape the religious lives of the people they enslaved by promoting a paternalistic view of slavery that emphasized moral obligations and the spiritual salvation of enslaved individuals, thereby justifying the institution as a means of civilizing and uplifting African Americans.

Many white planters considered themselves benevolent masters, committed to the idea of Paternalism and believed that their guidance was essential for the well-being and moral development of their enslaved laborers.

TECHNOLOGICAL INNOVATION AND LABORTh

THE SPREAD OF INNOVATION

aMERICAN born artisans replaced British inmigrants in technological innovation.

Sellar and Mechanics founded the Benjamin Franklin Institute it provided high school level instruction in chemistry, maths, mechanical design.

Americans pioneered the development of machine tools that enabled the mass production of goods, significantly boosting the nation's manufacturing capabilities.

Singer Manufacturing Company controlled 75% of the world market for seeing machines.

Artisan Republicanism was a movement that emphasized the importance of skilled craftsmanship and the moral value of labor, advocating for the rights of workers to have a say in their working conditions and wages. it also emphasized the equality between wage worker and independent worker.

WAGEWORKER AND THE LABOR MOVEMENT

FREE WORKERS FORM UNIONS

rejection of the traditional terms of master and servant and used dutch word boss to refer to their employer.

Masters did not have control over private property.

Labor had become a commodity to be bought and sold.

Union bargained with their masters for better wages, hours, benefits and control of the workplace.

1840 craft workers in st louis secured a tenhour day and president van buren issued an executive order for federal workers.

The new system split the traditional artisan class into self-employed and wage-earning workers.

UNION faced legal hurdle as it interfered with a masters authority over his servants.

LABOR IDEOLOGY emphasized the importance of workers' rights and the value of collective bargaining, advocating for better working conditions and fair wages.

1834 local unions from Boston to Philadelphia formed the National Trade Union first regional union of different trades.

Commonwealth v. Hun 1842 Chief Lemuel Shaw upheld the right of workers to form unions and call strikes to enforce closed shop agreements.

Labor theory of value → the p rice of goods should reflect the labor required to make them income primarily goes to producers no capitalist no nothing.

THE GROWTH OF CITIES AND TOWNS.

Loweel became a bustling textile factory town .

New York City had the best harbour of the United States and thanks to the Erie Canal was the best gateway to the Midwest.

Founding of the Black ball line to carry cargo, peop and mal between NeW yOrk and London and le havre establishing the first regularly scheduled transatlantic shipping service.

New York monopolized with the newly independent South American Nations of Brazil, Peru, and Venezuela.

NEW SOCIAL CLASSES AND CULTURES

aMERICAN society became more stratified notable families had higher status that those from the lower orders yet in rural areas they still mingled together.

The new economic order spawned distinct social classes, a small but wealthy business elite, a substantial middle class, and a mass of propertyless wage earners.

INEQUALITY IN THE SOUTH

three-tiered slave society first large planters then poorer whites with lees land and fewer slaves. last enslaved African Americans possessed little to nothing of their own and lived at the Mercy of their owners.

Frederick Law Olmsted future architect of NeW Yorks Central Park.

Gang-Labor System : A method of agricultural labor that organized enslaved workers into groups, or "gangs," who worked together on large plantations, significantly increasing productivity and efficiency.

THE NORTHERN BUSINESS ELITE

the richest 10 owned about 40 of wealth by 1860 nearly 70%, and the top 1 % held 40 % of the land, buildings and other tangible property.

State and government favoured the wealthy.

Cities became divided spatially along lines of class, race and ethnicity.

THE MIDDLE CLASS was made up from the farmers, mechanics, manufacturers, trader, building contractors, lawyers, surveyors and so on. 305 of the population

Self made American man became a central theme of American popular culture.

URBAN WORKERS AND THE POOR.

During business depressions casual laborers suffered and died; in good times their jobs were temporary and dangerous.

Finally largest cities grw more divided between the genteel dwellings of the middle and upper classes and the impoverished neighborhoods of the working poor.