Regional Economics Create Differences Chapter 7 Section 1-2 Regional Economics Create Differences

The Industrial Revolution It started in Great Britain Inventors had begun to develop new ways to generate power (using water and coal) Lead to improved powered machines allowing for mass production Powered machines Mass production  Money New factory production

The Industrial Revolution in the U.S. Two different economic systems developed in the North and the South The North developed and invested in factories They did not have the land to farm The work force was already there (higher population) The South developed a more agricultural economy As textile factories were the most popular the South became the Cotton King Agriculture in the South focused on creating cotton Eli Whitney creates the cotton gin which was HUGE The cotton gin also leads to the expansion of slavery

Growth of Slavery in the South As cotton production increased the need for slaves also increased From 1790-1810 Cotton bales went from 3,000 to 178,000 Number of Slaves went from 700,000 to 1,200,000

Henry Clay and the American System With two different economic systems in the country the division became more evident and the need to unify the country more important President Madison creates and idea with three main parts Developing transportations systems and internal improvements Establishing a protective tariff Reviving the National Bank House Speaker, Henry Clay, rallied behind it to support it calling it the American System Each part of the country would support the other (North provide finished goods and South and West provided the goods to create the finished goods)

New Transportation Improvements 1st Steam Locomotive created in 1825 States built turnpikes, which also had tolls to produce state funds 1st highway called the National Road with construction beginning in 1811 When finished in 1838 the highway went from Maryland to Illinois Erie Canal Took 8 years to make and linked the Great Lakes to the Atlantic Ocean through the Hudson River

Tariffs and the National Bank Tariff of 1816 Was a protective tariff, it increased the tax on imports Good for the North, bad for the South and the West The Second Bank of the U. S. This was great for the nation because it created a standard currency Tariffs and the National Bank

The Steam Boat The first successful steam boat, Clermont, was created by Robert Fulton in 1807 Robert Fulton and Robert Livingston were both given a charter from NY for exclusive rights to transport on the Hudson This created a monopoly Any other steam boat operators who wanted to transport on the Hudson had to buy a license

Gibbons vs. Ogden Aaron Ogden received a license from Livingston and Fulton Thomas Gibbons also began operating in the same area as Ogden Ogden took Gibbons to court because Gibbons violated his exclusive right to operate in the area of NY and NJ Gibbons vs. Ogden the Supreme Court that only the Federal government could regulate interstate commerce

McCulloch vs. Maryland Maryland was trying to place a heavy tax on the local branch of the Bank of the U.S. to make it fail This was ruled unconstitutional, the Supreme Court decided states did not have the ability to tax the bank hindering Federal action The Government used the Necessary and Proper Clause (Elastic Clause) allowing the government to create laws not already stated in the Constitution

Nationalism Secretary of State, John Quincy Adams, guides the nations policy via nationalism Nationalism is the idea of placing the needs of the country before area concerns or foreign issues Adams main goal was to secure the nation and expand the nations territory Rush-Bagot Treaty of 1817 led The U.S. and English occupied Canada to demilitarize their borders.

Territory Expansion In the Adam Onis Treaty the U.S added Florida to its borders After Spain lost its territory, European countries started to scramble for what was not claimed by the U.S., in the Western hemisphere (Latin America, Alaska, Mexico and Cuba) The Monroe Doctrine warned European countries to not attempt to inhabit these near by territories or they would consider it a threat

Missouri Compromise In 1818 there were 20 states, 10 free states, and 10 slave states Missouri wanted to be admitted as a U.S. state, however, they were a slave state and would disrupt the current balance Illinois was admitted as the 11th free state, and the U.S. assumed Missouri would be the 11 slave state They encountered difficulties and Alabama became the 11 slave state So Missouri still faced the same issue as before which created a lot of upset in the South as people thought the North was conspiring to make the country slave free A compromise was made to calm the country and Maine became the 12th free state and Missouri the 12 slave state

Growth of the U.S.

Activity Get with ONE partner, you should be in pairs. This will be your own newspaper It needs to be decorated, be creative (colored, pencils, markers, glitter, extra pictures) Under each heading please write a story to accompany the heading “New Transportation System will Unite Americans” your story should have something to do with the water transportation such as the Erie Canal Every story needs to be in complete sentences It must contain at least three facts Be descriptive and be creative