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Social and Economic Revolution of the North

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Randall Wilson

on 31 October 2013

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Transcript of Social and Economic Revolution of the North

Social and Economic Revolution of the North
Factors leading to Market Economy
(The Market Revolution)

Transportation Revolution - increased speed and lowered expense of commerce

Commercialization of Agriculture

Growth of cities

Industrialization of the North
Transportation Revolution
US was not connected

Poor road system - inefficient and expensive, except over short distances

Travel over water was most efficient
Most rivers flowed North to South
Upstream travel was difficult and inefficient
The American System
War of 1812 proved the US was not close to being integrated nation
No uniform currency - nearly impossible to raise funds
Primitive transportation
New industries faced rising competitions with peace

Result was Henry Clay's "American System"
consisted of 3 pillars
Pillar 1 - National Bank
Second Bank of the United States
Private, profit-making corporation
Issued paper money & "ensured" paper money made by local banks had real value
Collected taxes
Paid Gov'ts debts

Did not regulate local banks
Speculation "sucked in" the federal bank, land prices dropped & banks called in debts, led to Panic of 1819
Pillar 2 - Tariff
In order to protect "infant" American industry
Tariff on imported manufactured goods
Protection for goods that could be produced in US, like cotton textiles
Goods that were not produced in US were tax free
Southerners supported b/c belief that they would build strong manufacturing base
Pillar 3 - Infrastructure
Gov't sponsored "internal improvements"
Construction of roads and canals
Idea arose before War of 1812
Connect the Atlantic coast with Great Lakes, Ohio, and Mississippi River Valleys
John Calhoun scripted the plan, Congress passed
President vetoed on grounds that was not mentioned in the constitution
Upstream travel was still difficult - "Poling" was most prevalent way to go upstream

Steamboats and canals revolutionized transportation of goods
Improved water travel dramatically, increased speed and lowered expenses
Thomas Paine's iron bridge
National/Cumberland Road
Turnpikes - toll roads
First Turnpike - 1790 - Lancaster, PA to Philly
Built by localities, states, and most often private companies
Connected most major cities, but were inefficient
Quickly outdated by water travel and railroads
New Roads
Sunderland Bridge
"The Clermont" - Robert Fulton
NYC to Albany (upriver)
Proved steamboats to be feasible (1807)

1811 marked 1st steamboat on the Mississippi R. - 20 years later there were over 200
Success of steamboats resulted in need to connect waterways
Erie Canal
Began in 1817 - 8 years to build
363 miles
Connected NYC to the Hudson R. (East) and the Great Lakes (West)
Led to the construction of over 3,000 miles of canals
Greatly increased the popularity and need for canals
Bituminous coal - efficient energy and heat, inefficient to move

Anthracite - the "spark to the fire" of the industrial revolution

Created technological breakthroughs - mining, consumption, and transportation
Coal is King?
Early Problems with turnpikes and canals
Successful Erie Canal created a canal boom
Some states borrowed too much and went bankrupt as a result
Only connected existing waterways
Difficult to build efficiently over rugged terrain
Railroad Revolution
Rise of railroads began with the Baltimore and Ohio (B&O)
Linked Baltimore with rivers in the west
Competed with Erie canal and proved faster than canal system

From this point forward, RRs grew exponentially
By 1840 - over 3,000 miles of track
On the eve of the Civil War - over 30,000 miles (A large portion in the North)
Early RR Problems
Uneven landscapes required powerful locomotives for steep grades and sharp curves
Early locomotives were fueled by wood - easily sparked and created fires
Brakes were ineffective
Rails not built to last
Companies used variations of gauges to prevent competition

Technology overcomes obstacles
Improved rail designs and development of cross ties improved durability
Better breaks
Engines that could burn anthracite (hard coal)
Improved design to locomotives
Impact of the Transportation Revolution
Encouraged western settlement and expansion of farming
Growth of cities
Lake cities - Chicago & Cleveland
Intermediaries - Cincinnati & Pittsburgh
Created a national market & regional specialization
Increased speed of moving goods
Cut transportation costs
New sense of connectedness throughout the nation
Need for improved communication - development of the telegraph
How can we compare the impact to today?
Daily Weird
Seem Familiar?
Before the transportation revolution
Southern agriculture was already commercialized - Cotton is King
The North, however, western settlers focused on subsistence
The transportation revolution began to connect east to west economically
Eastern credit found it's way west, and western farmers found a market in the emerging cities
Commercialization of Agriculture
Technological Improvements to agriculture
Steel plow - John Deere (1837)
The reaper - Cyrus McCormick (1831)
Animal powered machines
Steam powered equipment - Threshers

Subsistence to Commercial
Factory-made machinery required cash
Credit was replaced by cash at rural stores
Instead of labor intensive, subsistence farming, farmers focused on one product and bought manufactured goods
Greatly changed the roles around the the household
Growth of cities
Cincinnati - b/c of location along transportation crossroads (canals), was able to become "porkopolis," country's chief pig packing and distribution center
Chicago - expanded from a tiny settlement in the 1830s to the fourth largest city by the Civil War thanks to railroads
In 1820, there were ~12 cities with populations over 5,000; by 1850 there were over 150
Industrial Revolution in the North
Factors that led to Industrialization:
The US was "blessed" with the necessities of an industrial society: raw materials, capital, access to labor.
Embargo Act of 1807 & trade limitations during War of 1812- "ended" trade with Europe - specifically Britain and France
Industrial Revolution in Europe
Inventions and Technological Piracy
Improved management of the Second Bank of the US
Rise of the factory system
What is a market economy?
A market where supply and demand based within that market are the controlling factors of things like prices and allocation of resources

Earliest signs of capitalistic image of America
Farmers spur urban growth
Urban merchants, bankers and master craftsman took advantage of economic opportunities
Created a desire to increase production and decrease costs
Altered the nature of work!

Skilled workers shifting from creating entire products to dividing labor
Entrepreneurs gathering artisans in larger workshops
Dividing labor process into many steps, requiring less and less training and skill
Manufacturing accounted for nearly 1/3 of nation's income
Old Immigration
Economic expansion demanded labor, met largely by immigrants - most heading to the northern states

Germans - many moved west and created the "German Triangle" - Cinci, St. Louis & Milwaukee
Skilled craftsmen
More apt not to integrate

Irish - fleeing the Great Famine (potato blight)
Large % lacked skills and capital
largest group
became the labor force of the industrial revolution
Tried to integrate
Daily Weird - Halloween costumes
Daily Weird - WoW
Richard Arkwright
Spinning Frame then water frame
Spun fibers into thread mechanically, first powered by horses then water
Mass production created at this point
The Father of Modern Factories
Slater apprenticed under Arkwright
American investors offering rewards for functional spinning mill to be built in the US
In disguise moved to US and, with Moses Brown, built water-powered cotton mill in Pawtucket
John and Arthur Schofield illegally emigrated and built first woolen mills
Francis Cabot Lowell - power loom
Samuel Slater and Technological Piracy
Yale graduate working in the south
1794 - cotton gin
consisted of rollers and brushes
quickly separated seed from cotton
Greatly improved separation process
Revamped American slavery
Eli Whitney
Oh Yeah!
Rise of the Factory System
Samuel Slater established American's 1st factory
Located along "fall Line" allowing for water to be used as energy source
Textiles at first; spread to other sectors later
Lowell System & Mill Girls
Recruited farm girls from Yankee farm families
To persuade families, owners established boarding houses with strict rules; also had lecture halls, churches and a periodical, the "Lowell Offering"
Harsh conditions: Long work weeks, pollution, crowded living spaces
Half of pay went for cost of living, other half was to send home or have as a dowry
Rhode Island System
Samuel Slater - "Father of the American Industrial Revolution
Started with child labor from poor families following the British system, which he had worked under
As business grew, he began hiring entire families from surrounding areas
Supply of labor did not keep up; began transplanting families closer to the factories, subsequent towns were erected to compensate for the people including housing, stores and Sunday schools
Towns became disorderly - pace of the work was too different compared to farm life
Waltham System
Francis Cabot Lowell memorized plans of power looms while visiting Britain with his family
Created America's 1st power loom used to turn fibers into fabric quickly
Established Boston Manufacturing Company at Waltham, Mass.
Pioneered modern corporate finance by selling shares
1st mill to convert raw cotton to to finished cloth
Lowell system arose
Undermined traditional family roles
Paternal authority over wife and children clashed with the mill owner's authority
Became the blueprint for other systems throughout the nation
Rhode Island "family system"
Fighting Back
Strike of 1834 - Mill Girls "Turn-out"
Reacting to wage cuts do to lull in market, workers strike and protest
Significance - laid foundation for action against mill owners and fighting for women's rights by taking matters into own hands

Strike of 1836 - again workers strike and form Factory Girls Association
Reacting to increases in rent
Hike in rent was violation of contract
Eventually rescinded, but weakness of system was out
Impact of the Industrial Revolution
Increases in the standard of living
Shift from hand-made goods to mass produced goods from factories
Technology setting the tone
Beginning of the US factory system
Longer hours for lower wages
Increasing importance of American "King Cotton"
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