THE AMERICAN ECONOMY: 1790-1860
I. Demographic changes
A. Population
1. By 1860, 13 original
states had nearly tripled -- 33 states
2. Population was still
doubling every 25 years
a. Natural birthrate accounted for most of population increase
b. Immigration was adding hundreds of thousands more
c. U.S. 4th most populous western country behind Russia, France, and Austria.
3. By 1860, 43 cities above
20,000; In 1790, only 2
-- Overrapid urbanization brought: slums, dim streets, inadequate policing,
impure
water, raw sewage, rats, improper garbage disposal.
B. Irish Immigrants
1. Ravaged potato crop in
Ireland claimed 2 million lives in mid-1840s.
2. Became largest group
of immigrants to U.S. between 1830 and the Civil War.
a. 2 million arrived between 1830 and 1860
b. Came to larger cities as they were too poor to move west & buy land
& equipment.
i. Boston & particularly NY (became largest Irish city in the world)
ii. Within decades, more Irish in America than in Ireland.
3. Irish faced discrimination
as they were Catholic and often very poor
-- Hated by native Protestants as wage-depressing competitors.
4. Irish, for similar reasons,
fiercely resented blacks.
a. Race riots between black & Irish dock workers flared up in several
port cities.
b. Irish did not support the abolitionist cause.
5. Gradually improved their
condition by acquiring modest amounts of property.
a. Education of children often cut short as families struggled to save
for a home.
b. Property ownership counted among the Irish as a grand "success"
6. Became politically involved
and soon began to gain control of powerful city machines.
a. For example, New York's Tammany Hall
b. Soon, dominated police departments in many big cities: "Paddy wagons"
c. Politicians who wanted to gain the Irish vote often criticized Britain,
who
the Irish fiercely hated.
C. Germans
1. Over 1.5 million came
to America between 1830-1860.
2. Became largest group
of immigrants by the 20th century.
-- Today as many as 25% of all Americans have German ancestry
3. Most were uprooted farmers,
displaced by crop failures & by other hardships.
4. A few were liberal political
refugees, saddened by the collapse of democratic
revolutions in 1848; became known as "Forty-Eighters."
-- Carl Schurz most well-known reformer: abolitionism and political reform
5. Most pushed out to the
mid-west, notably Wisconsin where they est. model farms.
a. Formed an influential body of voters (like the Irish) who politicians
wooed.
b. Germans less politically potent as their strength was more widely scattered.
6. Strong proponents of
isolationism as they had fled from the European militarism and wars.
7. Better educated than
frontier Americans and strongly supported public schools incl.
Kindergarten (children's garden).
8. Became relentless foes
of slavery prior to the Civil War.
9. Perceived with suspicion
by old-stock American neighbors as they sought to preserve
their language and culture
-- Sometimes settled in "compact" colonies to remain separate from other
towns.
10. Introduced beer which
they drank in huge quantities; often during the Sabbath.
-- Old World drinking habits gave a severe setback to the temperance movement.
II. Antiforeignism ("nativism")
A. Irish and German immigration inflamed the hatred
of American "nativists."
1. Feared immigrants would
outbreed, outvote, and overwhelm Protestant natives.
2. Irish and large minority
of Germans were Catholic; seen as from "foreign" church.
3. Catholics began to construct
an entirely separate Catholic educational system.
4. By 1850, Catholics became
the largest religious group in America, outnumbering the
Baptists, Methodists, Presbyterians, and Congregationalists.
B. In 1849, extreme American nativists formed
the "Know-Nothing" party
1. Advocated rigid restrictions
on immigration and naturalization and for laws
authorizing the deportation of alien paupers.
2. Tended to join the Whig
party
C. Episodes of mass violence occurred in some larger
cities.
III. Birth of America's Industrial Revolution
A. Economic Inventions
1. Samuel Slater
"Father of the Factory System" -- 1791, built first efficient cotton-spinning
machine in America.
2. Eli Whitney's cotton
gin (1793) -- In ten days, constructed a machine 50 times more
effective than picking cotton by hand.
a. Prior, handpicking one lb. from 3 lbs. of cotton took one slave an entire
day.
b. Rivals infringed on his patent; he made relatively small profits.
3. Impact of the cotton
gin (changed America and the world)
a. Overnight, raising cotton became highly profitable
b. South became tied to the throne of King Cotton.
c. Slavery, which had been dying out, saw a dramatic increase.
d. Westward expansion into Alabama & Mississippi due to demand for
more land.
e. Stimulated American Industrial Revolution by supplying cotton to New
England textile
mills (prior, most U.S. cotton went to English textile factories).
4. 1798, Eli Whitney mass
produced muskets for the U.S. Army.
a. Introduced principle of interchangeable parts; widely adopted
in 1850's
b. Became basis of modern mass-production, assembly line methods.
5. Sewing Machine
a. Elias Howe invented one in 1846
b. Isaac Singer more successful in improving and promoting the machine.
-- New stitching device adapted before Civil War for mass production of
boots &
shoes.
c. Significance: Manufacturing of clothing went from the home to the
factory.
6. Charles Goodyear's
process of vulcanizing rubber was put to 500 different uses and
became the basis for a new industry.
7. Invention of the telegraph
-- Samuel F. B. Morse
a. 1844, Morse strung a wire 40 miles from Washington to Baltimore and
clicked
the historic message: "What hath God wrought?"
b. Gov't declined to control the telegraph since it felt it would not pay.
c. Yet, invention significant by providing instant communication from great
distances.
-- Greatly advanced business in following decades
8. Decade ending in 1860
saw 28,000 patents compared to 306 in decade ending in 1800.
B. The Textile Industry began the Industrial Revolution
in the U.S.
1. 1814, Francis Cabot
Lowell built first dual-purpose textile plant at Waltham, Mass.
a. Early factories merely spun the fiber into cotton thread; weaving was
done by
hand at home or by contact weavers.
b. Lowell's 3-story brick factory was located on the banks of the Charles
River.
c. His factory spun the fiber and wove the finished cloth under the same
roof.
-- Also included, bleaching, dying, and printing cloth.
2. Significance:
Change from manufacturing at home to manufacturing in factories.
3. Local farmers' daughters
hired to work in the factories
a. More independence for young women.
b. Lowell promised strict moral supervision and mandatory church attendance.
4. In 1823, Lowell’s partners
built a new plant on the Merrimack River—Lowell,
Mass.
-- Textile factories sprang up all over New Eng. and mid-Atl. states in
1830's and 40's.
5. Water power and steam
power gradually replaced female labor.
6. Immigrant labor also
supplanted female labor (Germans and poor Irish)
C. Why did New England become center of the Industrial
Revolution?
1. Stony soil discouraged
farming and made manufacturing more attractive.
2. Relatively dense population
provided labor
3. Shipping brought in capital
while seaports made easy imports and exports.
4. Rapid rivers provided
abundant water power.
D. Why didn’t the South industrialize?
1. Capital resources tied
up in slaves.
2. Local consumers mostly
poor, could not afford most finished products
E. By 1850, industrial output outdistanced
agricultural output
1. Embargo Act of 1807,
non-intercourse, and War of 1812 meant Americans had to
produce their own goods.
2. European goods again
flooded the U.S. market after Treaty of Ghent in 1815.
-- U.S. mills devastated by British goods at ruinously low prices.
3. Tariffs of 1816, 1828,
1832 provided some relief to northern manufacturers.
IV. The Business World
A. Principle of limited liability
1. Permitted individual
investors, in cases of legal claims or bankruptcy, to risk no more
than their own share of the corporation's stock.
2. Other personal assets
protected.
3. Result: More people willing
to risk capital = capital accumulated more rapidly
B. Boston Associates -- formed one of the
earliest and most powerful joint-stock ventures.
-- Came to dominate textile,
railroad, insurance, and banking businesses in all of Mass.
C. Charles River Bridge decision (Charles
River Bridge v. Warren Bridge)
1. Chief Justice Roger B.
Taney: The Constitution reserved to the states "power over
their own internal police and improvement, which is so necessary to their
well-being
and prosperity."
2. Significance: Encouraged
economic development in transportation and other public
facilities by ending monopolies.
D. General Incorporation Law: Passed in NY
in 1848.
1. Businesspeople no longer
needed to apply for charters from the legislature
2. Could simply create a
corporation if they complied with the terms of the law.
3. "Free incorporation"
statutes widely adopted in other states; (very Jacksonian)
V. Northern "Wage Slaves"
A. Industrial Revolution transformed manufacturing
working conditions.
1. Craftspeople working
with apprentices were preempted by factory work.
2. Working conditions bad:
long hours, low wages, few breaks, poor ventilation,
lighting, and heating.
3. Workers forbidden by
law to form unions; only 24 recorded strikes before 1835.
B. Women and Children typically toiled 6 days a
week while earning a pittance.
1. Prime example were the
Lowell farm girls who were supervised on and off the job.
2. 1820, 1/2 the nation's
industrial workers were under the age of 10; many suffered
devastating affects from abuse.
C. Gains for workers
1. During the "Age of Jackson,"
many states granted the laboring man voting rights.
a. Through workingmen's parties, these laborers sought a 10-hour work day,
higher wages, tolerable working conditions, public ed. for kids, and end
to
the practice of imprisonment for debt.
b. 1840, President Van Buren est. 10-hr. work day for federal employees
on public
works.
-- Subsequently, a number of states followed suit by reducing work hours.
2. Increased number of strikes
in 1830s & 1840s (but most failed due to importation
of "scabs", often fresh off the boat from Europe)
3. Commonwealth v.
Hunt (1842): Labor unions were not illegal conspiracies, provided
that their methods were "honorable and peaceful."
-- More symbolic than immediately significant.
VII. Western Farmers
A. Trans-Allegheny region-- esp. the Ohio-Indiana-Illinois
territory -- was becoming the nation's
breadbasket and would later
become a breakbasket to the world.
1. Most produce floated
down the Mississippi to feed booming Cotton Kingdom.
2. Corn also used to make
liquor and pig feed: both practical and profitable.
B. Inventions
1. John Deere invented
steel plow that broke the thickly matted soil of the West.
2. Cyrus McCormick
(1830s) introduced the mechanical mower-reaper.
a. Could do the work of five men
b. Became most significant technology on the frontier.
C. Farming changed from subsistence to large-scale,
specialized, cash-crop agriculture
1. Debt ensued as farmers
bought more land and more machinery to work it.
2. Began producing more
than their markets could consume (esp. increasingly
self-sufficient South)
3. Began looking for new
markets further away but were still largely landlocked.
VI. Transportation Revolution
A. Prime motive: Desire of East to tap the West
B. Significance:
1. Created a national
market economy.
2. Created regional specialization:
west = breadbasket; east = industry; south = cash
crops.
C. Prevailing transporation conditions prior to
the transportation revolution were very poor
1. Roads not useful for
much of the year: dusty in summer; muddy during rainy season
-- Cost more to haul ton of goods 9 miles inland from ocean than from Europe.
2. Rivers ran mostly north
and south; east-west travel often impossible for freight. -- Dry
season reduced navigable rivers to trickling streams.
D. Turnpikes
1. First turnpike -- 1790,
Lancaster
Turnpike in PA built by private co.; highly profitable
a. Broad, hard-surfaced highway connected Philadelphia to Lancaster 62
miles west.
-- Traversed the Allegheny Mountains leading into W. Pennsylvania
b. Tolls were collected; drivers confronted with barrier of sharp pikes
until toll paid.
c. Significance: Touched off a turnpike building boom.
-- By 1832, U.S. had nearly 2,400 miles of road connecting most major cities.
2. Opposition
a. States' righters opposed federal aid to local projects.
b. Eastern states protested against exodus of their population westward.
3. 1811, beginning of
Cumberland
Road (National road) -- passed by Congress in 1806
a. From Cumberland in w. Maryland, to Vandalia in Illinois -- 591 mi. by
1852.
b. Aided by both state and federal funds.
c. Became vital highway to the west.
i. Freight carrying became cheaper
ii. European immigrants flowed over the mountains.
iii. Land values enhanced
iv. Swelled population centers in the West
4. Conestogas a major
mode of transportation
a. 20 ft. long, four ft. deep, uncomfortable but durable.
b. Served as a wagon on roads, sled on mud, and a boat on streams &
rivers.
c. One traveler in NY counted 500 wagons a day rolling west in 1797.
E. Canals
1. Erie Canal (completed
in 1825)
a. NY's dug 363 mi. Erie canal linking Great Lakes with Hudson Riv. (40ft.x4ft)
i. States' righters prevented federal aid; NY paid the entire cost
ii. Project supported by NY Gov. DeWitt Clinton,
b. Cost of shipping ton of grain from Buffalo to NYC fell from $100 to
$5
c. Time fell from 20 days to 6
d. Land value skyrocketed and new cities emerged (incl. Rochester, Syracuse)
-- New York became the fastest growing and wealthiest city on Atlantic
coast.
e. Old Northwest now provided profitable farming opportunities and 1000s
of European immigrants flowed across the Alleghenies to the West.
f. Great Lakes towns exploded incl. Cleveland, Detroit and Chicago.
g. New England farmers impacted by ruinous competition from the West
h. Other canals soon built connecting the Great Lakes with major rivers
& cities
F. Rivers
1. Initially, nearly
all river travel was done by mostly flatboats down the Ohio & Miss.
rivers;
exception -- keelboats pushed upstream with poles; less than 1 mi./hr.;
costly
a. Cheapest mode of travel to transport western crops to export markets
in
other areas.
b. Problem: Rivers dried up in certain areas during hot season.
2. 1807, Robert Fulton
installed
a powerful steam engine on the Clermont.
a. Left NYC and churned 500 miles up the Hudson River to Albany in in 32
hours.
b. Significance:
i. Changed all of America's navigable streams into 2-way arteries.
-- Carrying capacity of rivers doubled.
-- 1820 - 60 steamboats on Miss.; 1860 - about 1,000
ii. Population clustered along banks of rivers
iii. Profitability of manufactured products soared.
G. Railroads
1. Most significant contribution
to transportation of distances.
a. Fast, reliable, cheaper than canals to construct, and not frozen in
winter.
b. Able to go almost anywhere: defied terrain and weather.
2. First important line
begun by the Baltimore and Ohio Co. (B&O Railroad) in 1828.
3. By 1860, U.S. had 30,000
of railroad track laid; 3/4 in industrialized North.
4. Railroads opposed by
canal backers, turnpike investors, tavern keepers, and
horse-and-hay-selling farmers. All were adversely affected by railroads.
5. Eventually, gauges became
standardized, safety devices adopted, solid iron rails laid
6. Horse-drawn railroads
also used for mass-transit in major cities.
H. By the Civil War, a national market economy
emerged.
1. Revolutionary changes
in commerce and communication came 3 decades before
the Civil War as tracks and canals sprung out from the East across the
Alleghenies.
2. Buffalo came to handle
more western produce than New Orleans
3. New York City became
the America’s largest port
VIII. Regional Specialization
A. East
1. Industrial; made machines
and textiles for other two regions
a. By 1861, owned 81% of U.S. industrial capacity.
b. Most populous region; 70% of manufacturing workers
B. South:
1. Cotton for export to
New England and Britain; slavery
2. Did not want to change
economy or its culture: chivalry, genteel landed gentry, etc.
3. Industrial growth surprisingly
high for its day although industrial output never exceeded 2%
of the value of the cotton crop.
-- Tredegar Iron Works in Virgnina used slave labor
C. West:
1. Became nation’s breadbasket:
Grain and livestock sent to workers in East & Europe
2. Fastest growing population:
By 1860, 1/2 of pop. lived in states and territories
not in existence during Washington's administration.
D. Political implications
1. Two northerly sections
(East and West) were closely interconnected economically
2. During Civil War, South
would be isolated.
VII. Social Results of Industrialization
A. Division of labor ensued as work became more
specialized and work at home less significant.
1. Women's work no longer
seen as valuable.
2. The home was no longer
center of economic production; grew into a refuge from
the
world of work that became the special and separate sphere of women.
B. Growth of cities
1. 1790 -- 5% of population
lived in cities of 2,500 or more; 1860 -- 25%
2. Rapid urbanization created
an array of problems
C. Increased social stratification: Rich vs. Poor
1. Cities bred greatest
extremes of economic inequality; unskilled workers were worst
off.
-- Accounted at times for 1/2 of cities' population
2. Yet, America provided
more opportunity than Europe did for most its people.
a. Wages for unskilled workers rose about 1%/yr from 1820 to 1860.
b. General prosperity helped defuse potential class conflict (as in Europe)
D. Immigration
1. Accounted for largest
% of population increase
2. Germans fared best since
they brought more money and skills
3. Catholic southern Irish
suffered much discrimination.
-- Persistent labor shortage prevented natives from totally excluding foreign
elements.
VIII. Foreign commerce
A. Foreign commerce about 7% of national product.
1. Cotton accounted for
over 50% of all U.S. exports
2. After 1846, U.S. agriculture
played a larger role in trade with Britain.
3. Americans generally imported
more than they exported.
-- Imported manufactured goods while exporting agricultural goods.
B. 1858, Cyrus Field succeeded in stretching
a cable between Newfoundland & Ireland.
1. Cable snapped in 1858
but a new one built successfully in 1866.
C. Clipper
1. Huge sails atop sleek
new ships created the fastest ships in the world.
2. High-value cargoes were
hauled in record time.
3. Soon overshadowed by
new British steamers
IX. Pony Express est. in 1860 to carry mail speedily the 2,000
miles from St. Joseph, MO, to
Sacramento, CA.
A. Lightweight riders riding in between stations
spaced approx. 10 miles apart could make the
trip in 10 days.
B. Pony Express missed only one trip although the
enterprise lasted only 18 months.
C. Morse code in 1861 obviated the need for the
Pony Express.
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