the market revolution - mr....

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

1776: British Economist Adam Smith

outlined the Free Enterprise

System by re-emphasizing

the Three Laws of economics

1. The Law of Self – Interest

2. The Law of Competition

3. The Law of Supply and Demand

The Free Enterprise System evolved into Capitalism

as State and Federal Governments began playing an important role

in Regulating Businesses to protect workers and consumers

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

Late 1700’s: Most American’s worked in or

around the home as farmers or

artisans in home based businesses

Shoemakers

Blacksmiths

Dressmakers Furniture makers

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

Others were employed in the

Shipping Industry

or in Legal and

Financial Professions

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

Between the late 1700’s and

early 1800’s the first banks

appeared in the United States

1791 - 1811: The First Bank of the

United States

1816 - 1836: Second Bank of the

United States

By 1820: Banks existed in Twenty-

Three States and Territories

The majority of Banks were located

in the Northern & Mid-Atlantic States

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

Banks increased business opportunities for Americans by

providing capital in the form of loans

These loans provided wealth that

could be invested to produce new

goods and services to Americans

Although most American’s preferred

pure Gold, Silver, or Coins

Most Banks issued Bank Notes to

their customers

(a piece of paper that banks issued

instead of actual money)

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

Ultimately, Bank loans allowed investors to support

the development of many new inventions:

Textile Industry (1789 – 1846)

Military Weapons (1795 – 1845)

Transportation (1806 – 1853)

Agricultural Machinery (1819 – 1842)

Communication (1847 – 1858)

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

Textile Industry (1789 – 1846)

• 1789: Samuel Slater built the first

Water Frame in the United States

• 1793: Eli Whitney built a simple Cotton

Gin to improve Cotton production

• 1814: Francis C. Lowell opened the

first series of Textile Mills in Boston

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

Textile Industry (1789 – 1846)

• 1846: Elias Howe developed the first

Sewing Machine in the U.S.

Military Weapons (1795 – 1845)

• 1795: The Springfield Armory began

producing the first U.S. made Musket

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

Military Weapons (1795 – 1845)

• 1801: Eli Whitney introduced the use

of interchangeable parts

• 1816: The U.S. Model 1816 flintlock

musket began production at the

Harper’s Ferry Armory in Maryland

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

Military Weapons (1795 – 1845)

• 1819: Thomas Blanchard developed a

special lathe to mass produce rifle stocks

• 1836: Samuel Colt patented

his first Colt Revolver

• 1842: U.S. Model 1842 Musket became first fully interchangeable

parts weapon

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

Transportation (1806 – 1853)

• 1806: The Cumberland Road was first

authorized by Pres. Thomas Jefferson

• 1811 – 1818: The road was constructed

between Cumberland , Maryland and

Wheeling , Virginia (West Virginia)

• 1820: Congress authorized

extending the National Road

to Saint Louis, Missouri

• 1825: Congress authorized

extending the National Road

across the Mississippi River

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

Transportation (1806 – 1853)

• 1807: Robert Fulton and

Robert Livingston built the 1st

steamboat “the Clermont”

• Sailing from New York to

Albany in only 30 hours

• 1817 - 1825: The Erie Canal

was constructed

• Traversing the 363 miles from

Albany to Buffalo, New York

• Eventually extending into

other states thru feeder canals

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

Transportation (1806 – 1853)

• 1830: Industrialist

Peter Cooper built

the first steam

locomotive in the U.S.

called “Tom Thumb”

• 1830 - 1853:

The Baltimore and Ohio

Railroad was constructed

• Extending 379 miles

from Baltimore, Maryland

to Wheeling, Virginia (WV)

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

Agricultural Machinery (1819 – 1842)

• 1819: Jethro Wood

developed the Iron

Blades Plow

• 1834: Cyrus McCormick

patented the first

Mechanical Reaper

• 1837: John Deere engineered a

new steel bladed plow

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

Communication (1847 – 1858)

• 1847: Samuel F. B. Morse

patented the telegraph

• 1858: Cyrus W. Fields’

Atlantic Telegraph Co.

laid telegraph cable

across the Atlantic Ocean

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

IMPACT OF THE TEXTILE INDUSTRY

• Lowell’s textile factories

employed mostly young

single farm girls

(Lowell Girls)

• 1817 – 1840:

New England Textile

Mills increased

production from

4 million to 323

million yards

• By the 1850’s, many were

Irish Immigrants

New England

Textile Mills (1830’s)

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

By the 1840’s:

Manufacturing

in New England

became the

backbone of the

North’s

Economy

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

IMPACT OF THE TEXTILE INDUSTRY

• Textile Factories

increased the demand

for Cotton

• Cotton Gin helped

increase Cotton production

1820’s

1860’s

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

IMPACT OF THE TEXTILE INDUSTRY

By the 1850’s:

Cotton was King of the

Southern Economy

• 1820 – 1830: Cotton production went

from $22 million to $200 million

HOWEVER, IT CAME AT A PRICE!

• 1790 – 1850: Slave Labor increased

from 698 thousand to over 3 million

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

IMPACT OF TRANSPORTATION

• Opened the interior to settlement

• Lowered Transportation costs

• Linked Western Farmers to Markets

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

IMPACT OF TRANSPORTATION

Changes in Travel Times

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

IMPACT ON AMERICA’S SOCIETY

• Growth of Industrial Centers

• Increased Urbanization

• Major Transportation Hubs

CHICAGO, ILLINOIS

ST. LOUIS,

MISSOURI

NEW YORK

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

IMPACT ON AMERICA’S SOCIETY

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

IMPACT ON AMERICA’S SOCIETY

Year Population

1790 4 million

1800 6 million

1810 7 million

1820 8 million

1830 12 million

1840 17 million

1850 23 million

1860 31 million

Year Free Labor Slave Labor Total (Mil)

1800 1,330,000 530,000 (28%) 1,860

1810 1,590,000 740,000 (32%) 2,330

1820 2,185,000 950,000 (30%) 3,135

1830 3,020,000 1,180,000 (28%) 4,200

1840 4,180,000 1,480,000 (26%) 5,660

1850 6, 280,000 1,970,000 (23%) 8,250

1860 8,770,000 2,340,000 (21%) 11,110

THE RISE OF THE MARKET REVOLUTION

(1790 – 1850)

IMPACT ON AMERICA’S SOCIETY

INDUSTRIALIZATION

• New Inventions

• Rise of Factories

• Increased Jobs

• More Production

• Wider Range of Goods

• Greater Distribution

URBANIZATION

• Rise of Industry

• Increased Jobs

• Growth of Cities

• Greater Transportation

• Western Migration

• New Immigration

• Growth of Sectionalism and a Widening Gap in Society