In your opinion, should the government plan an economy or should it always be left to the people/businesses?

Illinois Early in Statehood

Vandalia as Capitol Not much more than a capitol building Few permanent residents Was built to inspire development further north Early population growth very slow Panic of 1819 (An economic depression) Caused by bank speculation

State Bank of Illinois Economy based mostly on barter Early private banks failed in Illinois State creates “State Bank of Illinois 1821 Started with no capital Offered $100 loans with no collateral Loans had to be readjusted to 1/3 of their value Many banks closed during the panic of 1819

People were filthy Saw the cause of disease as being noxious vapors Come from swampy areas Illinois had plenty of swampy areas Did not understand the concept of “hygiene” Thought Illinois was unhealthy

Land purchases increased after the War of 1812 ended. Land sold for $2 an acre. 1820, price dropped to $1.25 an acre. (80 acres for $100)

3.5 million acres were reserved for vets from the War of 1812. Many vets sold to speculators for as little as .10 an acre. Despite efforts to help homesteaders, speculators acquired much land.

Slavery 1819 Black Laws Limited freedom and rights of slaves and indentured servants No slaves brought in for manumission. (Freeing of slaves) Free blacks had to file certificates of freedom. Punishment for whites aiding runaways

The Slavery Debate 1819  168 listed slaves in Illinois Thousands more working at national govt. salt mine in Shawneetown Argument For Slavery -Would make the state more efficient -Would help develop frontier -Would keep state competitive with slave owning neighbor states -Bring in wealthy southern slave owners Argument Against Slavery -Slaves would slow immigration -Moral reasons -No slaves keeps free labor wages high

Shawneetown Designed by the national government 1803 Was a salt mine town Shipped salt to Indiana, Tennessee, Kentucky, and Missouri Economy built on slave labor, trade, and land sales One of the most wealthy early Illinois towns Very prone to flooding

Moved town uphill in 1937

Slavery Put to a Vote Violence springing up across the state over the debate In 1824 a State Constitution amendment is put to a vote with the public Would have legalized slavery 6,640 against slavery 4,972 for slavery