1. Nationalism & Sectionalism
3.1 – Industry and Transportation

3. 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.

4. 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

5. 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

6. 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

7. 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!

8. 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

9. 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

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

11. 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

12. 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

13. 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

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