United States HistoryUnited States History

Unit #5: Chapters 8, 9, and 10Unit #5: Chapters 8, 9, and 10

Chapter #8: “The Market Revolution”Chapter #8: “The Market Revolution”

1812-18451812-1845

Table of ContentsSection #1: “A Market Economy”Section #2: “The Northern Section”Section #3: “The Southern Section”Section #4:“The Growth of Nationalism”Section #5: “The Age of Jackson”

Section #1: A Market Economy

Comparing Household and Market Economies

Household

Economy

Market

Economy

Producers Household Industries

Labor Members of the household produce a variety of goods at home.

Workers specialize in producing a certain product outside the home. They exchange their labor for cash.

Goods Goods are made primarily to be used by the household.

Goods are sold on the open market for a profit.

Section #1:A Market Economy Water – transforms the nation’s econ!

Power from moving water, runs machines in the new factories.

Produces an increase in supply of goods.

Market Revolution During the War of 1812, a new generation of

Americans began to buy and sell goods, borrow and circulate money, and create wealth.

Change in the way Americans made, bought, and sold goods.

Sect. #1 cont.

Rise in Manufacturing: The making of products by machinery. Francis Cabot Lowell built a factory in Mass, to

manufacture textiles. Had the first centralized textile factory. Meaning all tasks involved in making a product

were carried out in one place. Increased productivity!!! In 1817 New England’s textile mills produced 4

million yards of cotton cloth, and by 1840 the amount was 323 million yards!

This soon became the backbone of North’s economy.

Section #1 (cont.)Free Enterprise System

What the changes of the Market Revolution were based on.

An economic system in which companies compete for profit.

Aka: capitalism Rewards people who find better, faster,

and more efficient ways of running their business.

Encourages the creation of new industries, jobs, and wealth.

Other changes in society… In 1800’s, more factories required more

people to work outside the home. For a certain amount of hours and money

each day.Shop ‘til you drop!

Since there was more goods out there, prices dropped, & more people could afford more things.

Furniture and silverware

Banks spark rapid economic growth:

New types of businesses emerged from the Market Revolution, thus…

Banks were very important! They provided capital, wealth that can be

invested to produce goods & make money. Businesses use this to buy land or invest in the

money-making projects.

Banks, banks, banks! By 1830’s there were hundreds of them! Basically a group of investors would get a

charter from a state to start a bank. They made money by charging interest for the

loans they made. Made loans from money people deposited.

Banks helped the economy grow by providing the money that businesses needed to expand.

Uncontrolled Lending… uh-oh! Today most deposits are insured by the gov’t,

and banks have to keep a certain amount of cash without handing it out.

In the 1800’s, gov’t did not limit banks spending. New banks often made loans to people who

couldn’t pay them back. Bank then didn’t have the money to give to

depositors who wanted theirs back. Customers would panic, want their money, rush to the

bank and get their money out before the banks would close.

As a result of all this, America experienced booms, followed by panics, bank failures, and depressions.

The last of the Banks In the old days, the gov’t didn’t issue paper $. Most people preferred specie (coin, usually

gold/silver). Specie was scarce and hard to carry.

Most common form of money - a bank note. A piece of paper that banks issued to their

customers, people used this to pay for stuff. Bank notes were promised to pay specie on

demand (like our checks today). But, banks would just print them whenever they needed

money thus the value was unpredictable.

Section #2:The Northern SectionGeographic, economic, and cultural

differences of the United States broken into 2 sections: North & South.

Farming in the Northwest: Corn, wheat and grains = profitable. Could spoil, had to turn them into a product

that would not spoil. Rise of specialized businesses.

Sect. #2 cont.: Industries in the Northeast:

Urban areas: Areas made up mostly of one or more cities.

Population Density: The amount of people living within a given space. This greatly increased!!!

Industrialization: Increased rapidly in Connecticut with Eli Whitney

building a factory (for his interchangeable parts) Products: tin, iron, leather, shoes, carpet, etc.

Remember Lowell’s textile mill? They hired young, unmarried women to run machines. Women = $3.25 for 73 hour work week.

Replaced by Irish immigrants who would take less than them!

Women Mill Workers “There was a great deal

of play mixed with it. We were not occupied more than half the time. The intervals were spent frolicking around among the spinning frames, teasing and talking to the other girls, or entertaining ourselves with games and stories in a corner.” Lucy Larcom

Sect. #2 cont. Growth of Cities:

Farmland had become overgrown by all the people living in the US, so more people came to the cities for work.

Most people still in rural areas though…but cities are growing! Manhattan had 33,000 in 1790 to 516,000 by 1850. Things that used to be taken care of in the home (medical

care, education, care for elderly) can’t be done in the city b/c people are working…

Hospitals and schools began to develop and fill this gap! Tenements – crowded apartments with poor standards of

sanitation, safety, and comfort. Number of these was on the rise.

Problems: Poor police and fire systems. No sewer systems or reliable supplies of water By 1832, thousands killed by cholera (intestinal disease caused

by contaminated water).

Section #2 (cont):Labor disputes in factories Workers were angry as they saw their factory owners

go rich. They complained about long hours and low wages.

No minimum wage set by Gov’t Had one option – strike (stop working)! From 1834-1836, 150 strikes occurred.

Workers organized the National Trades Union (NTU) the first labor union. An organization of workers formed to protect the interests of

its members. Usually by negotiating to resolve issues like: wages, hiring

practices, and working conditions. 300,000 people joined this and other unions in the 1830’s.

Section #3:The Southern Section

The Economy of the South: ““King Cotton”King Cotton”

More people want comfy More people want comfy cloths, not wool =)cloths, not wool =)

1820 = 160 million pounds of raw cotton.

1830 = harvest doubled 1850 = +1billion pounds 1860 = 2/3 of the total value of

American exports.

States of the south: Delaware, Maryland, Virginia,

Carolinas, GA Kentucky, Tenn, Alabama,

Mississippi, LA, Ark

The Southern Section Geography of southern farming

While the North developed, the South stayed rural.

Made up of farms and countryside, not cities. Fertile soil and plentiful rain helped farmers. South was dependent on North for banks, shipping

companies, and textile mills few southerners entered into this business.

Even preachers, lawyers, and doctors hoped to retire and become plantation farmers.

In truth, most farm families owned few or no slaves. Half the cotton crop was produced on farms with six slaves

or fewer. Cotton gin caused most states to change their main

crop to cotton, while Virginia and North Carolina stayed with Tobacco.

The Southern Section (cont.)

Very slow urban growth. Some southern cities were: New Orleans,

Charleston, and Richmond. Cities were smaller here than in the North, but

had some of the same problems (poor housing and sanitation).

Only 8% of southerners lived in towns with more than 4,000 people.

By 1850, there were 3.7 million African Americans… 12% were free. Most lived in southern cities or rural areas away

from large plantations.

The Slavery System Agrarian System

By 1804, all Northern states had banned slavery or passed laws to end it gradually.

1808, Congress banned all further importation of slaves to U.S.

1820, 1.5 million slaves, by 1850 doubled to 3.2 million, and by 1860 the slave population made up half of South Carolina and Mississippi’s population and 2/5 of the population of Florida, Georgia, Alabama, and Louisiana.

Life of a Slave: Slaves were property, not people. Price of

slaves would rise. By 1837, the price of a “good” slave was

$1,300. After the purchase, they only cost $15-60/year to

support.

Small Plantations – vs – Large Plantation

Slaves often worked side by side with their owners in the field.

Sometimes ate together and slept in the same house.

Most slaves lived on these. Lived in sizable community of

slaves, usually 20 or more. Tended to be harsher here

than on smaller plantations. Workers toiled in gangs under

supervision of foremen. Life really bad for women.

Baring/caring for children, took care of houses, cooked/served food, cleaned houses and clothes, labored in fields.

Some had to endure the threat of physical or sexual abuse by their slave owners.

Slave Revolts Only a small percentage of slaves ever managed to

escape their captivity or to win their freedom. Rebellion, especially on a large scale, stood little

chance of success. Historians have documented scores of slave

rebellions, most were small, spontaneous responses to cruel treatment and ended in tragic failure.

Significance: These were a white southerners nightmare!

Many African American communities outnumbered the white population.

Virginia, briefly considered ending slavery to ease this threat. Many southern states tightened restrictions on slaves to

make sure this didn’t happen again. Virginia and North Carolina passed laws against teaching

enslaved people to read. Some states prevented African Americans from moving freely

or meeting.

Slave Revolts – Vesey’s Plan In 1800, Denmark Vesey bought his

freedom with $600 he won in the lottery. A priest, self-educated, read anti-slavery lit. Grew increasingly angry at the sufferings

of his fellow African Americans.He preached against slavery, quoting

the Declaration of Indep and the Bible. He criticized African Americans who would

not stand up to whites. In 1822, he turned to action and laid

plans for the most ambitious slave revolt in American History.

Slave Revolts – Vesey’s Plan Involved hundreds (or thousands) of rebels. Vesey plotted to seize the city of Charleston

in July 1822. Also, intended to raid the arsenal, kill all the white

residents, free the slaves, and burn the city to the ground.

He was betrayed by some of his followers. In June, South Carolina troops smashed the

rebellion before it could get started. 35 African Americans were hanged, including

Vesey. Another 32 were expelled from South

Carolina. Four white men received fines and prison terms

for aiding the rebels.

Nat Turner’s Rebellion

31 year old African American preacher.

He planned and carried out a violent uprising in Aug. 1831.

Acting under what he believed was divine inspiration, he led about 70 slaves in raids on white families in southeastern VA.

Attacked 4 plantations, they killed 57 white people. Local militia captured most of the rebels. VA hanged about 20 of these slaves, including

Turner. Crowds of angry whites rioted, slaughtering about a hundred

African Americans who had had no part in the revolt.

Section #4:The Growth of Nationalism What is Nationalism???

Having pride in one’s country. During the 1820’s, Americans underwent a

shift in thinking toward the modern view of ourselves as belonging to a country under a national gov’t, instead of an association of states under separate government.

Added tons of power to the federal gov’t!

Section #4:“The Growth of Nationalism” Nationalism at Home:

McCullock v. Maryland Powers of the Fed. Govt.

were more powerful than the Const. Spelled out.

Congress had the authority to charter the National Bank.

Dartmouth v. Woodward Power of Fed. Govt. over

states. Protect businesses.

Gibbons v. Ogden States could not regulate

trade on interstate waterways.

Gave Fed. Authority over interstate business.

Nationalism Abroad Rush – Bagot Agreement

1817, reduce the number of warships on the Great Lakes.

Extend the northern border of the U.S. westward along the 49º N latitude from G.L. to Rocky Mtns.

Monroe Doctrine Dec. 2, 1823 speech to

Congress. Followed to some extent by

every President since Monroe.

Sect. #4 cont.

Monroe Doctrine:Monroe Doctrine: 1.) The U.S. would not get involved in any

internal affairs of European countries, nor would it take sides in wars among them.

2.) The U.S. recognized the existing colonies and states in the W.H. and would not interfere with them.

3.) The U.S. would not permit any further colonization of the W.H.

4.) Any attempt by any European power to control any nation in the W.H. would be viewed as a hostile action toward the U.S.

Sect. #4 cont. The Election of 1824:

First election where no candidate was a leader during the Revolution.

John Quincy Adams defeated John C. Calhoun of South Carolina, Henry Clay of Kentucky, and the popular Andrew Jackson of Tennessee.

A Controversial Race: Calhoun withdraws and runs for V.P. Adams faces the “Passionate Orator” and the “Man of

the People”. The “Corrupt Bargain”

Jackson wins most popular votes. Feb. 1825 Congress is required to decide election. Clay swings Kentucky’s votes to Adams, days later Adams

names Clay his Secretary of State.

President John Quincy Adams First son to follow

father’s footsteps President only one

term; 1825-1829 He wrote in his diary

daily between the ages of 29-49.

He wrote many times about the weaknesses of others, but here is how he described himself, “I am a man of reserved, cold, austere, and forbidding manners.”

J.Q. Adams From the beginning of his administration he was

challenged by the “Jacksonians” in Congress. Very few things got accomplished while he was President.

Tariff of Abomination – trying to embarrass Adams, the Jacksonians in Congress proposed a tariff bill that raised rates across the board, on raw materials as well as on imported goods.

Adam’s home region of New England welcomed the higher import tariffs, but not raw materials because of their industrialized economy would lose profits.

J.Q. Adams No one expected the tariff to pass, so when it

did the South became very angry b/c they wanted less expensive imports.

The south called this the TARIFF OF ABOMINATIONS. (one nail in the coffin toward secession)

One important event during his administration was in 1827, New Orleans held its first Mardi Gras !

Sect. #4 cont. Election of 1828:

Adams vs. Jackson Economic issues forcing politicians to choose

sides. Adams / Clay = National Republicans / Whigs Jackson = Democrats (Jacksonian Dem.) Twice as many men voted in ’28 than ’24. Jackson trounces Adams 178 ecv’s to 83.

Sect. #4 contNational Republicans / National Republicans /

WhigsWhigs

Jacksonian DemocratsJacksonian Democrats

Federal government should take a leadership role.

Federal government should remain as inactive as possible.

Federal govt. should support internal improvements, such as roads and bridges

The individual states should be responsible for internal improvements.

In favor of the national bank. Against the national bank.

Tended to be middle-class or well-established Protestants.

Tended to be slaveholders, small farmers, non-Protestants, and working class.

Section #5: “The Age of Jackson” Jackson as President

Signaled several changes in politics.

First President from west of the Appalachians.

Start of a new era in American democracy = popular support.

Jacksonian Democracy Support for new, less-wealthy

voters. Repeal of state laws requiring

voters to own land; all white males could vote.

Voters rather than legislatures chose Presidential candidates.

Section #5 Cont. The Spoils System

Patronage: practice of giving jobs to friends and supporters.

Jackson dismissed more than 200 previous appointees and 2,000 other office holders and replaced them with his Jacksonian Democrats. Replaced less than 20%.

This was known as the “Spoils System” under Jackson.

“Rotation in Office” would prevent a small group of wealthy people from controlling the gov.

“Champion of the Common Man.”

Section #5 cont.Jackson believed in Limited

Government: Feared the power of a strong National

Govt. Attacked politicians he thought corrupt and

laws that would limit the people’s liberties. Used Veto power on more acts of Congress

than the six previous Presidents combined. Ex. = Fed money for a state road in KY.

Section #5 cont. The Tariff and Indian Crises

The Tariff Crisis Tariff of 1828

Congress passed prior to Jackson taking office. Benefited the industrial north, forced southerners to pay

higher prices on manufactured goods. “Tariff of Abominations” Secede: withdrawal was threatened by South Carolina South Carolina declared the tariffs “null, void, and no law,

nor binding upon this State, its officers or citizens.” 1833 Force Bill = required South Carolina to collect the

tariffs. Jackson threatened to send 50,000 troops to SC. Henry Clay, the “Great Compromiser”, reduce some of the

import duties and SC cancelled the nullification act, thus nullified the Force Bill at the same time.

Section #5 cont. Indian Relocation

Indian Removal Act: 1830 encouraged by Jackson, authorized him to give Native Americans land in parts of the Louisiana Purchase in exchange for lands taken from them in the east.

Jackson forcibly relocated about 100,000 members of five tribes.

32 million prairie acres in Oklahoma for 100 million acres in the east. (That seems fair…… NOT!)

Cherokee nation took up farming and adapted more to the white culture than any other nation.

Sequoyah = writing system, literacy. The Cherokee Govt. was modeled after the U.S.

Section #5 cont. Indian removal cont.

1829 gold discovered on Cherokee lands in Georgia.(Dahlonega) Cherokees sued in court Chief Justice John Marshall ruled that they had no legal standing in

American courts because they were not U.S. citizens nor from a foreign country.

“We wish to remain on the land of our fathers. We have a perfect and original right to remain without interruption. . . It cannot be that the community we are addressing, remarkable for its intelligence and religious sensibilities, and preeminent [unmatched] for its devotion to the rights of man, will lay aside this appeal.”

--- Cherokee public appeal, July 17, 1830

1832 Worcester v. Georgia; Chief Justice Marshall ruled that Georgia had no authority over Cherokee territory. Georgia ignored the ruling.

Section #5 cont. “All preceding experiments for the improvement of the Indians have

failed. It seems now to be an established fact that they can not live in contact with a civilized community and prosper. . . .No one can doubt the moral duty of the Government of the United States to protect and if possible to preserve and perpetuate the scattered remnants of this race which are left within our borders.”

--- President Jackson, annual address to

Congress December 7, 1835

Trail of Tears: 1838, U.S. army rounded up more than 15,000 Cherokees into camps. 116 days they were forced to march westward in groups of about 1,000.

Poorly organized and undersupplied in the fall and winter months. 1 out of 4 Cherokees died of cold or disease as troops refused to let them rest. Cost was $6 million, this money was subtracted from the $9 million payment for the lands given up.

Section #5 cont.

Jackson’s Successors Chose not to run in ’36. Martin Van Buren becomes next

President, supported by Jackson. Panic of 1837, severe depression in Van

Buren’s first year in office. Dragged into the ’40’s.

William Henry Harrison defeats Van Buren in 1840, dies after one month in office from pneumonia. VP John Tyler takes over.

Jacksonian Democrats vs. Whigs.