1. Sectionalism Takes Hold in America Changes in manufacturing launch an Industrial Revolution. Slavery and other issues divide the North and South. The North and the South develop different economic systems that lead to political differences between the regions.

2. Industrial Revolution Changes in Manufacturing Eli Whitney and Interchangeable parts identical pieces used to assemble products Factory system develops: power-driven machinery, workers with different tasks Mass production is production of goods in large quantities Industrial Revolution—social, economic reorganization: - machines replace hand tools - large-scale factory production develops Great Britain Starts a Revolution In 18 th century, British first generate power from streams and coal Develop power-driven machines for mass production and build factories The Industrial Revolution in the United States After independence, U.S. income primarily from international trade Embargo Act of 1807, War of 1812 blockade shut down trade and shipping Americans begin to invest in domestic industries

3. New England Industrializes Samuel Slater builds first thread factory in Pawtucket, RI (1793) Lowell mechanizes all stages cloth making (1813) By1820s, Lowell(MA) becomes booming manufacturing center Thousands—mostly young women—leave family farms to work in Lowell

4. Two Economic Systems Develop Agriculture in the North Cash crops do not grow well in Northern soil and climate Farms in North smaller – Subsistence Farming In the Old Northwest farmers grow grain (wheat and corn) and raise livestock (cattle and pigs) Grains do not need much labor or yield great profit: need no slaves Northern slavery dying out by late 1700s - most Northern states abolish slavery by 1804

5. Cotton Is King in the South Eli Whitney’s cotton gin allows farmers to grow cotton for profitcotton gin Great demand for cotton in Britain and North Poor non slaveholding farmers go west to cultivate cotton and establish Plantation systems in Louisiana, Mississippi, Alabama Slavery Becomes Entrenched Cotton hugely profitable; by 1820s, demand for slaves increases Increase in cotton production parallels increase in slave populationcotton production

6. Eli Whitney’s Cotton Gin Go Back

8. The American System Uniting the Nation’s Economic Interests Madison’s plan to unite country’s regions and create a strong economy: - develop transportation systems; make internal improvements -establish protective tariff - revive national bank House Speaker Henry Clay calls it the American System: - North produces manufactured goods - South and West produce food, cotton - Improved transportation/internal improvements facilitate tradeImproved transportation/internal improvements - all regions sustain the others making U.S. economically independent

9. Go Back

10. The Tariff – from nationalism to sectionalism Tariff of 1816 – United against G.B - G.B attempts to flood the U.S. with cheap goods -the tariff increases cost of foreign goods(20-25% rate) - people more likely to buy American goods - helps pay for internal improvements (west likes this!) - Clay and Calhoun sway congressmen from South and West to approve Why? Unites the country both are nationalists in 1816 Calhoun believes the south may one day develop manufacturing

11. The Tariff of Abominations Tariff of 1824 and 1828 British try to flood U.S. with cheap goods; tariff raised 1824, 1828 (Had gone from 20% in 1816 to as high as 45% in 1828) Vice-president John C. Calhoun calls 1828 Tariff of Abominations Thinks South pays for North’s prosperity and G.B. threatens not to buy the South’s cotton Calhoun devises nullification theory: - state can reject law it considers unconstitutional - states have right to leave Union if nullification denied Compromise of 1833 - Clay’s proposal will lower the tariff over the next 10yrs

12. The Missouri Compromise When territory’s population reaches 60,000 may apply for statehood Missouri Compromise—preserves balance between slave, free states - Maine admitted into Union as free state, Missouri as slave state - divides Louisiana Territory at 36  30’ line: slavery not allowed north of this line