Regional Economies Create Differences Chapter 7.1

Another Revolution Affects America New approaches to manufacturing took industry out of American households and into factories where mass production could be achieved

Industrial Revolution: social and economic reorganization that took place as machines replaced hand tools and large-scale factory production developed

Great Britain Starts a Revolution 18th Century, British inventors came up with ways to generate power using steam and coal British merchants built the first factories

The Industrial Revolution in the United States Primary source of income was international trade Two events that turned the attention of Americans toward the development of domestic industries Embargo Act of 1807 War of 1812

New England Industrializes 1/2 Pawtucket, RI 1793, Samuel Slater establishes the 1st successful mechanized textile factory in America (mass producing only one part)

New England Industrializes 2/2 Waltham, MA 1813, Francis Cabot Lowell, Nathan Appleton & Patrick Tracy Jackson revolutionized the American textile industry by mechanizing all the stages in the manufacturing of cloth After the initial success they would move the operation to Lowell, MA creating a booming manufacturing center

Agriculture in the North North began as subsistence farmers grow enough food to eat As the settlers push west things would change The area north of the Ohio River, farmers would have small farms grow 1 or 2 crops or types of livestock and sell them at the market By 1804, almost all of the northern states had voluntarily abolished slavery

Cotton is the King in the South 1793- Eli Whitney invents the cotton gin

1820, Cotton Kingdom consisted of Louisiana, Mississippi & Alabama The cotton gin accelerated the expansion of slavery

Slavery Becomes Entrenched Increase in cotton production and increases in the number of slaves owned only paralleled each other From 1790-1810 3,000 bales/year increased to 178,000 bales/year 700,000 slaves increased to 1,200,000 slaves

Clay Proposes the American System 1815, President Madison presents a plan to Congress in hopes of unifying a nation with diverse regional interests and create a strong, stable economy House Speaker Henry Clay began to promote it as the American System

American System: 3 Points Establishing a protective tariff Developing transportation systems and other internal improvements Resurrecting the national bank

United States Becoming Self-Sufficient North produce the manufactured goods South and West would produce most of the grain wheat and cotton needed Transportation becomes more efficient to move goods, country becomes self- sufficient.

Erie Canal and Other Internal Improvements National Road (government funded) would begin construction in 1811 and by 1838 would stretch from Maryland to Illinois

Erie Canal by the year 1825 would link the Great Lakes to the Atlantic Ocean Just 12 years after completion the tolls of the canal would pay for the canals construction New York City becomes the most dominant port in the country

Tariffs and the National Bank 1/2 British goods such as iron and textiles had stockpiled during the war so they were able to sell them far below cost President Madison would propose the Tariff of 1816, placing a tariff on foreign goods would increase their price, as well as taking that tax to pay for internal improvements North favored, South and West did not

Tariffs and the National Bank 2/2 Clay and Calhoun managed to sway southern Congressman to approve 1816, Congress would charter the Second Bank of the United States for 20 years, provided a common currency throughout the nation 1816, James Monroe elected president the United States had entered an “Era of Good Feelings”