Nationalism & Sectionalism 3.1 – Industry and Transportation

The Transportation Revolution The original 13 states transported goods by rivers or overland Very expensive and inefficient Overland transport was mostly by carts, wagons, etc.

The Transportation Revolution Improving roads was necessary, but expensive Solution: turnpikes This solution was not often successful however. Users pay a toll to use the road, which offsets the cost of building it National Road (1818) Connected Maryland to the Ohio River (in WV) Still, transportation costs hurt business

The Transportation Revolution Robert Fulton revolutionized the shipping industry with the steamboat Results: quicker transportation, lower costs EX) used to take 4 months to travel from NO to Kentucky. Steamboat did it in 20 days

The Transportation Revolution Canal system Manmade waterways that connect to other rivers and lakes Erie Canal (1825) ran 363 miles from NY state to Lake Erie Cut costs from $100 to ship goods, to $4 Made NY Harbor the chief commercial port Erie Canal

Technology Sparks Industrial Growth More factories sprouted up along rivers in the North Why near rivers? Power Easy Transport In the early 1800’s, the US underwent an Industrial Revolution This is characterized by a gradual movement away from hand tools towards machines This speeds up production Ex) steam or water would power machines that spun thread or wove clothes Power Easy transport As these factories developed along rivers, what else would develop? Factories need workers, so… people moved near the factories As people moved near factories… towns began forming Therefore, most population was in the North!

Technology Sparks Industrial Growth Francis Cabot Lowell His factories contained all steps of production under one roof Employed mostly women, known as “Lowell Girls” Worked and lived under the same roof

Technology Sparks Industrial Growth These new methods of production changed how we lived Increased the need for unskilled labor This means lower wages Provided more jobs Women working more often But for less pay Created a scheduled work day

New Economic Plan “American System”- Henry Clay’s plan to encourage economic growth as the country expanded westward

The “American System” Part 1: 2nd Bank of the U.S. North favored this and owned most stock in the BUS South/West distrusted the BUS  private corporation with public duties, the bank handled all fiscal transactions for the U.S. Government, and was accountable to Congress and the U.S. Treasury. Twenty percent of its capital was owned by the federal government, the bank's single largest stockholder.[7][8] Four thousand private investors held 80% of the bank's capital, including one thousand Europeans. The bulk of the stocks were held by a few hundred wealthy Americans

Tariffs Rates Increase Part 2: Protective Tariffs Tariffs were higher and designed to PROTECT American businesses from foreign competition Northern factories thrived under protection, could raise their prices South and West disliked higher prices for northern products South and West faced higher tariffs on their exports to other countries

Internal Improvements Part 3: Tariff revenue would pay for building roads, canals, and railroads North/West liked this because it helped the two areas trade South disliked this because they got fewer improvements This would increase trade and help the country expand South felt STATES should pay for improvements, not the FEDERAL government

The “American System” Helped develop a NATIONAL economy, but benefitted the South the least