Name: _______________________________
USVA History
Chapter 7 Section 1
Regional Economies Create Differences
Main Idea – The North and South developed different economic systems that led to political
differences between the regions, or __________________________. The North developed a
largely commercial and ___________________ economy, while the South depended on a slavebased ________________________ economic system.
Another Revolution Affects America
-
___________________________ – changes in economy and social structure that resulted
from machines replacing hand tools and large-scale factory production developed
o __________________ invested in industry more than any other region in the U.S.
 Lowell, Massachusetts – site of the first large-scale textile factories
 Employed mostly young, unmarried ___________________
-
____________________________ – inventor who dramatically impacted the
development of the U.S. economy
o ____________________________________ – involved the use of gun parts that
were exactly alike
 SIG –
 Led to development of ___________ as the new centers of industry
 Led to ______ production – production of goods in large quantities
o ___________________________ – machine that separated seeds from raw cotton
 SIG - made the growing of cotton much more profitable, led to an
expansion of ______________________
Economy of the North
-
Manufacturing in factories, primarily in the ___________________________
-
Agriculture – especially in the ____________________ (Ohio, Indiana, Illinois,
Michigan, Wisconsin)
o Mostly self-sufficient farmers – poured into the Northwest from coastal states
o Major agricultural products – _________________________________
o No slave labor
Economy of the South
-
Agriculture – “_____________________________”
o Cotton – cotton gin made it easier to grow and easy to process = more profits

Demand for cotton in _________________ and New England textile mills
o Plantations expanded into the _____________________ South
 Deep South = South Carolina, Georgia, Florida, Alabama, Mississippi,
Louisiana, and eventually Texas

_______________________ expanded as cotton production expanded
Clay Proposes the American System
-
________________________ - Henry Clay (Kentucky) created a plan to unify the nation
o ____________________________________ – roads, canals, eventually railroads

_____________________________ – federal highway started in 1811 that
eventually connected Maryland to Illinois

_______________________ – 363 miles from Albany, NY on the Hudson
River to Buffalo, NY on Lake Erie

SIG – connected ____________________ region of the Northwest
to the ________________________
o _________________ – tax on imported goods to protect American manufacturing

_____________________________ – first tariff passed by Congress and
signed by President Madison
 Money collected from protective tariff would be used to fund
internal improvement projects
o Northern support, Southern opposition = ______________
o North – wanted to protect northern manufactured goods
from foreign competition
o South – opposed to price of imported goods becoming
more expensive due to tariffs
o
o ___________________________________________ (2nd BUS)



Would issue ___________________________
Would hold all taxes collected by the federal government
Chartered for 20 years in 1816