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

2. Illinois Early in Statehood

3. 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

4. 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

5. 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

6. 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)

7. 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.

9. 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

10. 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

11. 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

12. Moved town uphill in 1937

13. 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