What You Should Learn From This PowerPoint The Market
Revolution changed America from a primarily subsistence and barter
economy to an economy that relied on credit and long distance trade
The Market Revolution changed the everyday lives of most Americans
The North developed into a more business and trade oriented economy
while the south relied on cash crops and the slave trade Differing
economies in the North and South led to conflicting views about
legislation and a feeling of animosity between the two regions
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Prior to the Market Revolution In the early 1800s most
households consumed what they produced and sold only small
surpluses to nearby markets Subsistence agriculture as well as
extensive bartering were mainstays of the average Americans life
Mainly only planters near port-cities produced cash- crops A
majority of items were manufactured in the home
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Transportation Revolution Overland toll roads, such as the
National Road failed to meet the need for cheap transportation over
great distances Rivers proved to the most effective mode of
transportation The invention of the Steamboat in 1807 led to more
efficient river trade Canals were needed to link the Great Lakes
and several rivers with some of the coastal states The Erie Canal
was finished in 1825
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Credit and Banking Credit was essential to the Market Economy
Long-distance transactions involving credit and deferred payment
required more money The government could not keep up with the
demand for more capital so private and state banks began issuing
banknotes Congress did not re-charter the Bank of the United States
in 1811 and more state and private banks were created These banks
were under regulated and risky The second BUS was established in
1816 to serve as a check on the state banks An overextension of
credit led to the Panic of 1819
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Commercial Agriculture Between 1800 and 1840 agricultural
output increased at an annual rate of about 3 percent Many of the
crops were grown for sale rather than to be consumed at home
Technologies such as the iron plow and grain cradle made crops
easier and cheaper to harvest The availability of cheap, good land
and changes in marketing were the most important reasons for the
beginning of commercial agriculture
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Grain Cradle
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Early Industrialism The putting-out system of manufacturing was
when merchant capitalists paid people to create products in their
own homes then picked up the product and took charge of
distribution This type of home manufacturing was mainly in the
Northeast and primarily was performed by farming families trying to
generate income during the growing off-seasons Francis Cabot Lowell
memorized how a power loom was constructed during his trip to
England from 1810-1811 A mill was built in America and the success
of it and others like it led to a shift of investment capital from
oceanic trade into manufacturing
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Early Industrialism The west also began to
industrialize-Distilleries in Kentucky and Ohio produced corn
whiskey at great profit Industrialization did not lead to a
complete change in the nation In 1840 63.4 percent of the countrys
labor force was employed in agriculture 8.8 percent of workers
worked directly in factory production Although these numbers are
not huge, they are a large change from 1810 when 83.7 percent
worked in agriculture and only 3.2 percent worked directly in
factory production
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Market Economy The market economy opened up vast amounts of
wealth to the American populace, but at the same time increased
anxiety due to boom-bust cycles Economic opportunity increased for
white males The United States became a player on the global
economic stage The steady change from a semi-subsistence economy
led to differing economies for different regions of the
country
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Slavery The number of slaves tripled between 1810 and 1860 to
nearly 4 million The cotton growing areas of the South needed
slaves in order to be profitable
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The Internal Slave Trade Due to rising slave prices and falling
slave demand in the upper south, planters began to sell slaves for
profit This slave trade six to seven hundred thousand slaves
farther south between 1815 and 1860 The chances of a slave child in
the upper south in 1820 to be sold South by 1860 was as high as 30
percent Upper southerners such as Virginians, Kentuckians, and
Marylanders were divided on whether they should industrialize or
stick with the plantation economy
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The Cotton Kingdom Cash crops such as cotton increased the need
for slavery The cotton gin increased the profitability of cotton
Between 1792 and 1817 the Souths output of cotton rose from 13,000
bales to 461,000. 1.35 million by 1840 and 4.8 million by 1860 By
the 1850s three quarters of the worlds cotton supply came from the
south
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Planters Fewer than 1 percent of all whites owned more than
fifty slaves Although few in number, planters greatly influenced
southern life Class could be judged by the amount of slaves that
one possessed The planter elite was on top of the southern social
hierarchy
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Small Slaveholders 88 Percent of all slaveholders in 1860 owned
less than twenty slaves Relations between owners and slaves was
more intimate than on larger estates Marginal slaveholders often
fell into poverty and were forced to either sell their slaves or
give them shorter rations
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Yeoman Farmers Majority of southern whites were yeoman farmers
They owned land and worked it themselves Although they didnt
directly benefit from slavery most yeomen farmers defended the
institution on some occasions because they had the dream of someday
becoming wealthy enough to be a slave holder Yeoman farmers viewed
black servitude as a guarantee of their own liberty and
independence
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The Industrial Revolution The Factory mod that had originated
in the cotton mills of New England extended to other products The
gathering of a supervised workforce in a single place, the payment
of cash to workers, and the use of interchangeable parts all led to
the emerging factory production In a factory standardized parts
could be manufactured in bulk Despite the increase of factories
small workshops predominated in most industries
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The Industrial Revolution Technological advances revolutionized
many industries Elias Howe invented the sewing machine in 1846 and
laid the groundwork for the ready to wear clothing industry Despite
industrialization factory workers still remained a small fraction
of the workforce 60 percent of the gainfully employed worked the
land
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Immigration Provides Labor Between 1820 and 1840 700,000
immigrants arrived in the United States Most were from the British
Isles or continental Europe Between 1840 and 1860 about 4.2 million
people emigrated to America Most immigrants ended up as wage
workers in factories, mines, and construction camps
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Northern Economy The north had five times the amount of
factories as the south 90 percent of the nations skilled workers
lived in the north Immigrants provided an influx of labor that
would stabilize skyrocketing wages Manufacturing as well as
semi-subsistence farming, trade, and ship building were staples of
the northern economy
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Controversy Over Tariffs Tariffs are tariffs placed on imported
goods Southerners mostly did not support increasing tariffs while
northerners did Southerners imported most of their goods and
therefore did not want to increase the prices Northerners had more
manufacturing and wanted to decrease competition by increasing the
price of imported goods As more and more immigrants flocked to the
north, thus increasing the northern representation in the House of
Representatives, southerners began to fear that much of their
legislation would be blocked
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The Tariff of Abominations Enacted in 1828 to protect northern
manufacturers from being driven out of business by lower priced
European goods Southerners vehemently opposed the tariff because
they did not wish to pay higher prices for goods that their region
did not produce The tariff would help lead to the Nullification
Crisis
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Wilmot Proviso Proposed to ban African Americansslave or free
from any territory gained by the Mexican War Northerners wanted to
preserve land for free whites Many southerners wanted to gain more
slave territory and therefore gain more pull in the national
government as well as open up more fertile land
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The Civil War Economic differences led to ideological
differences which eventually resulted in the Civil War The market
revolution and resulting sectional economies increased sectional
anxiety and was a major catalyst for the Civil War