1. The Opening of America

2. Need for Expansion of Markets
U.S. had been tied to international trade; when it suffered (as in War of 1812), so did the U.S. economy
European wars of 1790s (French Revolution) and 1800s (Napoleonic Wars) interfered with American exports
Most Americans were rural and self-sufficient; couldn’t absorb any increase in American manufacturing

3. Stimuli to Development
Embargo of 1807 stimulated American industry
War itself increased demand for manufactured goods
After Napoleon’s defeat, European capital flooded America looking for opportunities

4. A post-War of 1812 program of economic centralization, designed to promote internal economic development, was pushed by a group of aggressive young Republican nationalists. The economic program included all of the following EXCEPT:
A. Funding the war debt
B. A protective tariff
C. A national bank
D. Federal subsidies for public works programs

5. John Marshall’s Supreme Court decisions sought to promote American enterprise by all of the following methods EXCEPT:
a. upholding private contracts
b. blocking state interference with private property
c. ruling that Indian lands must be turned over to white developers
d. creating a climate of business confidence

6. McCulloch v Maryland
Facts - Maryland required all banks not chartered by Maryland (ie the National Bank) to pay an annual tax
Issues:
Was the National Bank constitutional?
Did Maryland have the power to tax it?

7. McCulloch v Maryland
Supreme Court endorsed a “loose” interpretation of the Constitution, recognizing the doctrine of implied powers
Supremacy clause - although the national government is limited, it is supreme in its sphere of action
“The power to tax is the power to destroy”

8. Gibbons v Ogden Commerce clause interpreted broadly
Congress is supreme in all aspects of interstate commerce

9. Fletcher v Peck Yazoo land fraud
Protection of private property and contracts from legislative interference

10. Dartmouth College v Woodward
Corporate charters are a contract, and cannot be disturbed by the legislature
All these decisions created a climate of business confidence

11. What was the most basic reason so many Americans moved so much, especially to the new western lands?
Greater political freedom
Improved economic opportunity
More comfortable social relationships
A sense of providential destiny

12. The phase of the Industrial Revolution that occurred in the early 1800s featured each of the following EXCEPT:
the rise of an American system of manufacturing based on machine tools and interchangeable parts
manufacturing surpassing agriculture as the most important economic sector
active government support for economic growth through both legislation and court rulings
4. the rise of an industrial labor force, initially mostly rural women

13. Which of the following groups purchased the greatest amount of western land?
Industrialists
Small farmers
Squatters
Speculators

14. Which of the following proved to be the breakthrough necessary to push cotton production to the center of the American agricultural stage?
Extensive railroad development
Development of vast overseas markets
Federal subsidies of cotton production
Invention of the cotton gin

15. All of the following help account for the shift to factory production except:
A growing, accessible market
The availability of investment capital and credit
The availability of workers
Inventions that gave the U.S. a head start over Europeans

16. In its social impact, the market revolution did all of the following except
Elevated the status of workers
Produced greater per capita wealth in American society
Stimulated materialism
Reorganized society toward specialization

17. The Panic of 1819

18. The Missouri Compromise of 1820