1. Forging the National Economy 1790-1860
New machines and factories changed the way people lived and worked in America in the late 1700s and early 1800s.  This was the beginning of the Industrial Revolution.  It began with the invention of machines that do the work of hand tools, the use of steam, the acceptance of the factory system, and soon after with other kinds of power, in place of the strength of people and of animals.

2. Main Ideas
American industry grows; new developments in transportation and communication
Economic specialization leads to interdependence
American Labor Movement origins
Impact of American manufacturing and the rise of the market economy
Early 19th century American urbanization

3. The American Population
The population was expanding and changing in character. (Population doubled during )
More people lived in the West and in the expanding cities.
Immigrant groups such as the Irish and Germans added their labor power to the American economy, sometimes arousing hostility from native Americans (nativism) in the process.
By the 1830s, almost one-third of the population lived west of the Alleghenies.

4. Industrialization
At the start of the 19th century, a manufacturing economy had barely begun in the United States. By midcentury, however, U.S. manufacturing surpassed agriculture in value, and by century’s end, it was the world leader.
Industrialization in the early 1800’s occurred slowly because of shortage of:
* labor
* capital
* consumers
Greatest advances occurred in transportation which bound the nation together into a continental economy with strong regional specialization.

5. Transportation: Highways
Vital to the development of both national and an industrial economy was an efficient network of interconnecting roads and canals.
Turnpikes in 1790s with stone foundations with gravel on top, drainage ditches for run-off
(1)Lancaster Turnpike connected Philadelphia to Lancaster’s rich farmlands (example of state)
(2) Cumberland Road connected Maryland to Illinois (example of national)
Stimulated by War of 1812 to move materials and men
By 1825 roads crisscrossed New England and Pennsylvania had 2400 miles of toll roads
The American Government decided to build the Cumberland Road (a.k.a. National Road) after people were complaining because there was no way to get to the East from the West and vice-versa.

6. Transportation: Steamboats
The age of mechanized, steam-powered travel began with the successful voyage up the Hudson River of the Clermont
Robert Fulton steamed up New York’s Hudson River in 1807 at speed of 5 miles per hour.
Most were built between 1820 and 1850.
Provided the first economical inland transportation for both freight and people.
Brought the West into the national economy.
Robert Fulton trained in England and France (he had gone to London originally to study art but ended up studying civil engineering).  He built his first commercially successful steamboat for the Hudson starting operation in 1807 (with a promise of a 20 year monopoly from the NY legislature)

7. Transportation: Canals
The building of the Erie Canal initiated the “canal era.”
Erie Canal links the Hudson River with Lake Erie (363 miles).
It has 83 locks and cost $7 million to build.
By 1840 the U.S. had over 3300 miles of canals.
Canals offered the first economical means of transferring bulky products of the West eastward.
Today, the Erie Canal is part of the New York State Canal System. In 2000 the United States Congress designated the Erie Canalway National Heritage Corridor to recognize the national significance of the canal system as the most successful and influential human-built waterway and one of the most important works of civil engineering and construction in North America.

8. Transportation: Railroads
First was the Baltimore & Ohio, completed in early 1830s.
By 1840, mileage exceeded that of canals.
Builders received public aid, tax incentives, large land grants.
Nearly 9000 miles laid in the 1840s and 22,000 in the 1850s, mostly in the North.
The railroads swiftly changed small western towns into booming commercial centers (Cleveland, Cincinnati, Detroit, and Chicago)
Cornerstone of the B&O, laid July 4, 1828 by Charles Carroll of Carrollton, now displayed at the B&O Railroad Museum.

9. Corporations for Raising Capital
In 1811, New York passed a law that made it easier for business to incorporate and raise capital by selling stock
Owners of corporations took risks to invest in a venture
Changes in state corporation laws facilitated the raising of large sums of capital necessary for building factories, canals, and railroads

10. The Labor Force
Neither the factory system nor the great transportation projects could have happened without the influx of a foreign labor force, primarily Irish and Germans.
Between 1830 and 1850, immigrants supplied nearly half of the increase in the free working force. (this was difficult because of cheap land in the West)
Irish emigrants sitting on the dockside in Cork in 1851

11. The Labor Force continued…
Textile mills in Lowell (Mass) recruited young farm women and housed them dorms
In the 1830s, the Lowell system was widely used (Children were also recruited)
Immigrants faced problems such as poverty, disease, crime, and nativism.
The Lowell Mill Girls was the more common name of the young ladies who worked in the mills in Lowell, Massachusetts in the 1800’s. These girls worked very long, and very hard, and many of them created journals detailing their daily routines.

12. Unions Develop
Trade unions were organized in major cities as early as 1790s
Many skilled workers had to seek employment in factories because they couldn’t compete in small shops
Long hours, low pay, and poor working conditions led to widespread discontent
The main goal of the early unions was to reduce the workday to ten hours
However, there were many obstacles to union success:
Immigrant replacement workers
State laws outlawing unions
Frequent economic depressions and high unemployment

13. The Growth of Industry
Samuel Slater, “Father of the Factory System,” escaped to the U.S. in 1791, helping to jumpstart American industry.
Eli Whitney’s invention of the cotton gin and use of interchangeable parts would impact industrialization. (made possible by patents)
Several industries such as textiles, carpets, shoes, and paper were thoroughly mechanized by the eve of the Civil War.
Samuel Slater was an early English-American industrialist known as the "Father of the American Industrial Revolution“, the "Father of the American Factory System" or "Slater the Traitor" (In the UK) because he brought British textile technology to America.

14. Impact of Manufacturing
Manufacturing on a mass scale altered American expectations: from the colonial period the material environment had been permanent with people living in the same houses, using the same furniture and implements, wearing the same clothes, and viewing the same scene from youth to old age. This all changed. Americans were learning to live in a perpetually changing environment.

15. Economic Specialization
In the new continental economy, regions would specialize: (Market Revolution)
* South – raised cotton for export
* West – grew grains and livestock to
feed eastern factory workers
* East – made machines and textiles
for the other two regions

16. Effects of the Market Revolution
Specialization on the farm, the growth of cities, industrialization, and the development of modern capitalism meant the end of self-sufficient households and a growing interdependence among people
Women worked (teaching/ domestic services)
Economic and social mobility (economic opportunities greater than in Europe)
Slavery (many believed it would die out)

17. Rise of the Market Economy 1820-1860
In the Market Revolution a lot transformed the national economy into a market-based economy. The rise of manufacturing allowed Americans to use machines and work faster, particularly in the North.

18. Key Names, Events, and Terms
Nativism
Lancaster Turnpike
National (Cumberland) Road
Erie Canal
Robert Fulton; steamboats
Railroads
Eli Whitney; interchangeable parts
Corporations
Samuel Slater
Factory system
Lowell System; textile mills
Industrialization
Specialization
Unions
Cotton gin
Market revolution

19. Question The Erie Canal was significant because it
challenged railroads as the primary transportation system of the early 1800s
tied the manufacturing of the East to the farming of the West
was the first federally funded internal improvement
stimulated subsistence farming and manufacturing in the West
increased trade with Great Britain

20. Answer
B: tied the manufacturing of the East to the farming of the West