1. Chapter 7 section 2

2. Tariff of 1816
After Treaty of Ghent, cheaper British products flowed into the US.
American manufacturers demanded protection.
Congress passed the Tariff of 1816 which put a 25% duty on most imports.
Northern manufacturers were pro-tariff, New England importers and southern planters were anti-tariff.

3. Transportation
A. Feb Calhoun introduced a bill to fund a nat’l system of roads + canals, using $$ from tariffs.
What was southern response?
Negative.
B. Under Tom Jefferson, Congress had approved construction of a roadway from Cumberland, MD across the Appalachians into western territories.
C. In 1815 construction began on Cumberland Road, the “National Road.”
D. by 1818 it reached Wheeling, W.VA & later extended to Vandalia, Illinois

4. The Cumberland Road

5. Transportation continued
E. Calhoun’s bill passed Congress to aid roads & canals, most of which were built by the states and or private companies. Pres. Madison vetoed the bill.
F. in 1817 NY began work on the Erie Canal (363 miles). It was intended to be cheaper & faster means of transportation than roads.
G. the Erie Canal linked the Hudson River with Lake Erie. It was finished in 1825.

6. The Transportation Revolution
A. Improving transportation was a major concern.
B. Before 1820 poor roads made trade between regions difficult.
C. Transportation in the mid-west was most problematic. Flatboats could carry farm products down river only.
D. Eastern goods transported by wagon over mountain roads which was slow + costly.

8. Canals A. Canals were expensive + time consuming to build
B. By 1816 only 100 miles of canals were built.
C. After Erie Canal opened construction of canals soared. Why?
D. The E.C. reduced transportation costs for moving goods from Buffalo to NYC by 90%.
E. By the 1840’s rivers and canals provided a

9. Canals continued Web of waterways from Illinois to the Atlantic.
F. Improvements in steamboats improved transportation. The 1st steamboat was operating in 1787.
G. In 1807 Robert Fulton’s “Clermont” was the 1st steamboat capable of carrying heavy loads upstream.
H. By 1817 steamboats were moving goods up and down the Mississippi.

13. Locomotives A. Originated in Europe.
B. In 1830’s they were used commercially in the US.
C. Advantage over steamboats was that they could go anywhere tracks could be laid.
D. The early locos had many mechanical troubles.
E. The Tom Thumb lost a race to a horse & carriage.
F. In 1840’s American companies spent over $200,000, laying almost 9,000 miles of track + the technical problems were solved.

15. The Market Revolution
A. New roads + canals created the 1st national markets. Why?
B. It was easier + cheaper to move goods long distances.
C. Therefore, regions no longer had to be self-sufficient.
D. Goods could be imported and regions could specialize in what was most profitable for them to produce.
E. The creation of national markets is known as the MARKET REVOLUTION.

16. Market revolution continued
F. It increased profits for farmers and manufacturers.
G. It changed they way business was done.
H. By linking small towns with larger markets it increased the size of the towns, esp., in the Midwest.
I. One example, Mt. Pleasant, Ohio had 7 families in 1806 and 100 families in 1816.

17. The Industrial Revolution
Before the Market Revol. skilled artisans produced most manufactured goods, one at a time.
B. With the MR goods needed to be produced more quickly.
C. The means of production changed to machine production.
D. The IR began in Britain in the 1700’s with the invention of new spinning machines.
E. The machines allowed for mass production, production of a large quantity of goods, which was revolutionary.

18. Industrial revolution continued
F. The British tried to keep the spinning machines secret. They would not let the design or workers leave the country.
G. At least one textile worker memorized the design and sneaked out of the country.
H. Samuel Slater came to the US in 1789 with hopes of making a fortune from the design he memorized.
i. He convinced Moses Brown in RI to build a British style spinning mill.

19. Industrial revolution continued
J. Brown & Slater soon had mills all over RI and MA.
K. Also, inventors contributed to the IR.
Eli Whitney invented interchangeable parts for the production of firearms. Parts produced by machines in vast quantities.
1812, Seth Thomas used this technique to make clocks. By 1815 workers in his factory were making 500 clocks at a time.

20. Economic Reversal A. By 1818 all parts of country had good economies.
B. Many manufacturers had borrowed $$ from state banks without a credit check.
C. In late 1818, the Second Bank of the US ordered all state banks to demand repayment of their loans.
D. They also required all state banks to exchange their notes for specie (gold & silver).

21. continued E. Most banks could not do this.
F. The result was the PANIC of It was a chain reaction of bank failures, falling land prices, and foreclosures.
G. The depression lasted several years.
H. Prosperity was ended, as was, the Era of Good Feelings.