CHAPTER 8

The Market Revolution1812-1845

SECTION 1

A Market Economy

I. Analyze the ways in which the American economy changed in the early 1800s.

A. An Expanding Economy 1) Market Revolution – change in the way people made, bought, and sold goods

B. Rise of Manufacturing 1) Manufacturing – use of machines to make products 2) Francis Cabot Lowell led a group of businessmen who built a centralized textile factory in Massachusetts 3) Centralized factory – all the tasks involved in making a

product were carried out in one place 4) Centralizing work dramatically increased production

I. Analyze the ways in which the American economy changed in the early 1800s.

B. Rise of Manufacturing

5) Free Enterprise System – economic setup in which

companies compete for profits

a) also called capitalism b) encouraged the creation of new industries,

jobs, and wealth

I. Analyze the ways in which the American economy changed in the early 1800s.

C. Working Outside the Home• 1) An increase in manufacturing led to work outside the

home for a specific number of hours each day and for a certain

amount of money

D. Rise of Shopping• 1) products became available and people worked for money• 2) Americans filled their homes with purchased items

II. Describe how banks influenced the country’s economic growth.

A. Capital – wealth used to produce goods and make money

B. Rise of the Banking Industry• 1) Banks played a key role in American economic expansion

by providing loans to businesses• 2) Bank Notes – paper money issued by banks• 3) Specie – coins made of gold or silver

SECTION 2

The Northern Section

I. Trace the development of farming and industries in the North.

A. Sections – regions with distinct geographic, economic, and cultural

differences – North and South

B. North 1) Northeast - composed of New England and the Middle

Colonies of New York, New Jersey, and Pennsylvania

2) (Old) Northwest – north and west of the Ohio River – Ohio, Indiana, Illinois, Michigan,

Wisconsin, and Minnesota

I. Trace the development of farming and industries in the North.

C. Farming in the Northwest• 1) Grain and livestock farming was the main way of life in

the Old Northwest – pork, beef, and beer• 2) People no longer raised their own food

D. Industries in the Northeast 1) Urban – places made up mostly of one or more cities 2) Population Density – the amount of people living within a given space 3) Industrialization – growth of industry

a) Eli Whitney – cotton gin – interchangeable parts b) mills hired mostly young single women

II. Describe the growth of cities in the North.

A. In the early 1800s, the populations of cities in

the Northeast increased sharply

B. Poor city-dwellers in the mid-1800s mostly lived

in crowded, cheap housing known as tenements

C. Police and fire services in rapidly growing cities

were limited

III. Explain how labor disputes arose in northern factories.

A. Workers Go on Strike• 1) Strike – work stoppage• 2) Long hours and low wages caused the labor movement to

begin to protest

B. The First Labor Unions 1) Labor Union – an organization of workers formed to

protect the interests of its members 2) Wages and working conditions

SECTION 3

The Southern Section

I. Compare the South’s economy to that of the North.

A. “King Cotton”

B. The United State’s most valuable export

I. Compare the South’s economy to that of the North.

C. Economy of the South• 1) Delaware, Maryland, Virginia, Carolinas, Georgia,

Kentucky, Alabama, Tennessee, Mississippi, Louisiana, and Arkansas

• 2) Geography of South Farming• a) rural – made up of farms and countryside• b) 290 days to grow, fertile soil, and plentiful rain• c) the South remained agricultural largely because the physical

geography made farming highly profitable• d) the economies of Virginia and North Carolina depended on tobacco

• 3) Slow Urban Growth • a) Compared with cities in the North, Southern cities were fewer in

number and smaller in population

II. Compare slave life on small farms and large plantations.

A. After Congress banned the importation of slaves, the slave population increased dramatically

B. An enslaved person’s life on a large plantation

would most likely have included a large community of African Americans

C. A typical slave owner might have described his

slave as property

III. Describe the slave revolts of the early 1800s.

A. Vesey’s Plan – like Gabriel Prosser – Denmark Vesey – his rebellion was smashed before it could get

started in South Carolina

B. Turner’s Rebellion – Nat Turner – acted under what he

believed was divine inspiration – local militia captured

the rebels - Virginia

C. Failed slave rebellions in South Carolina and Virginia resulted in harsher slave laws

SECTION 4

The Growth of Nationalism

I. Give examples of the rise of nationalism at home and abroad.

A. Nationalism at Home• 1) The Supreme Court under Chief Justice Marshall made

several decisions that strengthened the federal government

• 2) Supporting the National Bank• a) McCulloch v. Maryland – a ruling that Congress has the authority to charter a national bank• b) “Necessary and Proper” Elastic Clause

• 3) Protecting Contracts• a) Dartmouth College v. Woodward – a statement that states cannot interfere in business contracts

• 4) Regulating Commerce• a) Gibbons v. Ogden – a declaration that states cannot regulate

commerce in • interstate transactions

I. Give examples of the rise of nationalism at home and abroad.

B. Nationalism Abroad

• 1) Monroe Doctrine – a warning to European governments to stay

out of the Americas

II. Describe why the election of 1824 was controversial.

A. Election of 1824

• 1) Both John C. Calhoun of South Carolina and Henry Clay of Kentucky were southern politicians. Andrew Jackson of Tennessee and John Q. Adams son of John Adams

• 2) John C. Calhoun had been a representative, Sec. of War, Vice

President for 2 Presidents, Sec. of State, and Senator – he

supported nationalism

II. Describe why the election of 1824 was controversial.

B. Controversial Race

• 1) Calhoun – withdrew from the race

• 2) Clay – a passionate orator – willing to make political deals to

become President

• 3) Jackson – was a “Man of the People”

II. Describe why the election of 1824 was controversial.

C. The “Corrupt Bargain”

• 1) Jackson won the most popular votes, but not the electoral vote

• 2) House of Representatives decided the election

• 3) Clay managed to persuade Kentucky to vote for Adams – John Q. Adams became President – Clay became Sec. of

State

• 4) Critics charged Adams and Clay had a corrupt bargain

III. Compare the views of the National Republicans and the Jacksonian Democrats.

A. Adams as President – National Republicans

• 1) Supported the federal power to strengthen the nation• a) build roads, bridges, universities, and other public

improvements• b) encouraged America-made goods

• 2) Jackson blocked Adams in Congress

III. Compare the views of the National Republicans and the Jacksonian Democrats.

B. Election of 1828

• 1) Andrew Jackson found his greatest support among common

people

• 2) Jackson and his fellow Democrats tried to be true to Jefferson’s

ideal of limited government

• 3) The 1828 election was a referendum on the role of government

in the economy

• 4) Jackson won electoral vote 178 to Adam’s 83

SECTION 5

The Age of Jackson

I. Describe the link between Jackson’s presidency and the expansion of democracy.

A. Jackson as President

• 1) Jacksonian Democracy

• 2) Spoils System• a) Patronage – government jobs given to friends and supporters of

newly elected officials

• b) Spoils System – patronage as practiced by Andrew Jackson

• c) Jackson defended the spoils system by claiming that it prevented control of

government by the rich

• 3) Limited government• a) Jackson attacked corrupt laws that would limit people’s liberty

II. Explain the crises over the tariff and Native Americans.

A. Tariff Crisis

• 1) Tariff of 1828 – prior to Jackson, Congress passed an import tax

that benefited Northerners at the expense of Southerners

• 2) The Tariff of 1828 posed a serious challenge to federal authority

when South Carolina declared the tariffs null and void

• 3) South Carolina threatened to secede, or withdraw, from the

Union if its nullification were not respected

II. Explain the crises over the tariff and Native Americans.

B. Indian Relocation

• 1) Five Civilized Tribes – Cherokee, Creeks, Chickasaw, Choctaw,

Seminole

• 2) Jackson responded to southern states’ taking control of Indian

lands by encouraging the relocation of the Indians

• 3) Indian Removal Act – law providing Native Americans land in

the Louisiana Purchase in return for

lands taken from them in the East

• 4) Trail of Tears – journey of the Cherokee west from Georgia

III. Summarize the battle over the Bank of the United States.

A. When Congress voted to extend the charter of

the Bank of the United States, Jackson vetoed

the bill

B. Jackson won re-election in 1832

III. Summarize the battle over the Bank of the United States.

C. Jackson’s Successors

• 1) Martin Van Buren elected in 1836

• 2) As a result of the depression during Van Buren’s presidency, William Henry Harrison won the

presidency in 1840

• 3) William Henry Harrison died a month later due to pneumonia