2. America in 1840 The Market Revolution and the Politics of Republicanism http://history-17b.wikispaces.com/

3. Key Points of Today’s Lecture  Market Revolution: Define Significance  Republicanism: Key Concepts that Shape American Politics  Basic Contours of Second Party System: Democrats vs. the Whigs

4. Defining the Market Revolution “The emergence of transportation improvements and banks that made commerce more important to ordinary Americans between 1815 and 1860.”

5. Economic Life before the Market Revolution  Almost 90 percent of population lives in rural areas.  Some commerce, but areas far from rivers and coast are isolated.

6. “We Must Bind the Nation Together... We Must Conquer Space” Attitude of New Nation toward Transportation Technology John C. Calhoun, 1817

7. Steamboats Improved River Transportation

8. Canals Reduced Cost of Bulky Goods (Wheat, Coal)

9. Canals Connected Farm Interior to East Coast Cities

10. The Railroad Was Even More Important

11. “Breaking the Bonds of Nature” 1860: 30,000 Miles of Rail (Half of the World Figure) New York to Chicago, 1800: Six Weeks New York to Chicago, 1860: Two Days

12. Telegraph Accelerated the Information Revolution Samuel Morse, 1844 1860: 50,000 Miles of Telegraph Wire

13. Banks Add Another Important Element to the M. Revolution  Banks Provide Loans to Merchants, Manufacturers, and Farmers  Banks Increase the Money Supply

14. Cycle of Economic Growth Farmers Can Sell Bigger Surpluses and Buy More Consumer Goods Manufacturers Produce More Goods Growth of cities and towns

15. Market Revolution and Regional Economies Northeast: Cities, Commerce, Manufacturing South: Cotton & Slaves West: Grains, Livestock

16. Americans both Embraced and Feared Market Revolution

18. Explaining the Ambivalence: Republicanism  Big Question: How Do We Preserve a Republic?  History: Republics Usually Became Dictatorships  Key Concepts: Virtue and Public Good vs. Corruption and Individual Interest

19. Republicanism and the Challenge of the Market Revolution  Are we too greedy and self-centered to make good political choices?  Will some people benefit more than others? Will inequality undermine the Republic?  Can we trust government to help guide the market revolution? Is it wise to concentrate political power in the hands of a few?

20. Example: The Cumberland Valley RR and Local Politics  Farmer John Lefever in 1817  The Cumberland Valley Railroad (1830s)  Charles B. Penrose: RR President and “Corrupt” Politician?

21. Second Party System and Market Revolution  Tariff to Foster Domestic Industry  Federal Government to Fund Canals and Railroads  Big National Bank  Low-to-Moderate Tariff  Little Federal Help for Canals and Railroads  No National Bank

22. The Whigs: Henry Clay and the American System

23. Democrats: Andrew Jackson, “The People,” and Republican Virtue

24. Big Issue: Bank of the United States  Whigs: Provides Loans, Stability to Help Nation Grow  Democrats: Monster Bank that Concentrates Too Much Power