ECONOMIC SECTIONS OF THE U.S. North: Industrial base 1. Geographic Factors Aiding Industrialization a. Rivers: 1. provided water power for running machines 2. served as natural highways ex. Erie Canal – 1825 – connected NYC and Lake Erie 3. Deep water ports 4. Labor - cheap immigrant labor arriving from Europe b. Political factors: 1. 1816 – formation of the 2nd National Bank - depository capable of lending out large sums of money. 2. 1816 - tariff – helped American textile industry c. Technological factors: 1. invention of standardized parts by Whitney - use in manufacturing of rifles 2. Robert Fulton’s Steamboat - The Clarmont or Fulton’s Folly 3. 1830-1840s building of railroads South - Plantation Agriculture System 1. Cash Crops: a. Cotton b. Rice c. Tobacco 2. Climate conducive to year-round farming 3. Cotton Gin invented by Whitney - sped up production of cotton 4. England’s demand for cotton 5. Free labor - slaves A cotton gin (short for cotton engine) is a machine that quickly and easily separates cotton fibers from their seeds, a job that otherwise must be performed painstakingly by hand. Eli Whitney – invented in 1793 and patented in 1794 West: small family owned farms 1. Land rich in nutrients needed for growing crops. 2. Government made land available for free or charged small amounts to purchase.