Chapter 10:
America’s Economic Revolution
1)The Changing American Population
a)The American Population, 1820-1840
i)Population dramatically increased, began to concentrate in industrial
centers of Northeast and Northwest, provided labor force for factory
system
ii)Growth b/c of improvements in public health (decrease in number and
intensity of epidemics), high birth rate, lower infant mortality rates
iii)Immigration did not contribute greatly until 1830s b/c of Eur wars &
US economic problems. Immigrant boom caused by lower transport
costs, increased US economic opportunity + less econ opportunity in
some Eur areas
iv)Immigrant + internal migration led to growth of cities b/c agriculture
in New England less profitable (some moved West also). By 1810
NY largest city
b)Immigration and Urban Growth, 1840-1860
i)By 1860 26% of free state populations lived in towns or cities
ii)Booming agricultural economy of west led small villages and trading
posts to become cities. Benefited from Mississippi R, centers of
Midwest trade
iii)By 1860 American population greater than that of GB and
approaching France and Germany. Urban growth from flow of ppl
from Northeast farms (competition from Eur farms + Western farms)
& influx of immigrants abroad
iv)Majority of immigrants from Ireland and Germany. German
industrial revolution had caused poverty, & b/c of collapse of liberal
1848 revolution. In Ireland unpopular English rule & “potato famine”
of 1845-1849
v)Most Irish settled in eastern cities + became unskilled laborers (had
little $, many were young women- domestic/factory work in cities).
Most Germans moved to Northwest, farming or business in towns
(many were single men)
c)Rise of Nativism
i)Some native-born Americans saw opportunity in immigration.
Industrialists & employers wanted cheap labor, land speculators and
politicians hoped would populate west + increase demand for goods,
increase influence
ii)Some (Nativists) hostile to foreigners and immigration. Some racist,
some argued newcomers socially unfit and did not have sufficient
standards of civilization, workers feared low immigrant wages would
steal their jobs, Protestants feared Irish Catholics & Rome, many
upset b/c voted Democratic
iii)Tension and prejudice led to secret societies to combat “alien
menace”, Native American Association 1837, 1845 Native American
Party, peak in 1850s with combination in Supreme Order of the StarSpangled Banner. Wanted to ban Catholics form office, restrict
naturalization, force literacy tests for voting
iv)Secret order known as Know-Nothings turned to party politics, after
1852 election formed American Party, success in 1854 East elections,
declined after
2)Transportation, Communications, and Technology
a)The Canal Age
i)1790-1820s “turnpike era”, but roads not adequate for nation’s
growing needs
ii)Traffic on large rivers such as Miss. and Ohio had been mainly flat
barges that could not travel upstream, by 1820s steamboats and
riverboats carried western and southern crops quickly, from New
Orleans ocean ships to Eastern ports
iii)Farmers and merchants unhappy b/c more direct route could lower
transport costs and product costs. By 1820s economic advantages of
canals had generated boom in expanding water routes to West. Too
expensive for private companies, states of Northeast constructed them
iv)NY’s Erie Canal began July 4, 1817 to connect Hudson R and Lake
Erie. Opened 1825, tolls repaid construction costs, gave NY access to
Great Lakes, Chicago, growing Western markets. NY now competed
with New Orleans
v)Water transport system expanded when Ohio + Indiana connected
Lake Erie & Ohio R. Increased white settlement, but primacy of NY
power + hinterland control alarmed other Atlantic cities. Most
attempts limited successes or failed
b)The Early Railroads
i)Railroads played secondary role in 1820s/30s, but laid groundword for
mid-century surge. Emerged form technological (tracks, steampowered locomotive) and entrepreneurial innovations
ii)In 1830s no real rial system, most lines simply connected water routes
and not links to other rail systems. Some states and corporations also
limited their ability to compete effectively against canals
c)The Triumph of the Rails
i)After 1840 rail gradually supplanted canals. 1850’s trackage tripled.
Most comprehensive and efficient system in northeast, but no region
untouched
ii)Trend toward consolidation of short lines into longer lines (“trunk
lines”), connected Northeast w/ Northwest, from these other railroads
traveled into interior of nation. Main Northwest hub was Chicago
iii)Lessened dependence of West on Miss. R, weakening N + S
economic cnxn
iv)Capital to finance railroads came from private investors, abroad, and
local governments. Fed govt gave public land grants to railroads,
states for RRs
d)Innovations in Communications
i)Magnetic telegraph lines along tracks aided train routing, but also
allowed instant communication btwn cities, linked N and NW at
exclusion of S
ii)1844 Samuel Morse first transmitted. Low cost of construction made
it ideal solution to long-distance communication. By 1860 Western
Union Telegraph company had been founded linking most
independent telegraph lines
iii)In journalism Richard Hoe’s 1846 steam cylinder rotary press
allowed rapid and cheap newspapers, telegraph increased news speed.
1846 Associated Press formed to promote cooperate wire
transmission
iv)NY’s major papers Horace Greeley’s Tribune, James Bennett’s
Herald, Henry Raymond’s Times. In 1840s/50s journalism fed
sectional discord, most major magazines and newspapers located in
North. New awareness of differences
3)Commerce and Industry
a)The Expansion of Business, 1820-1840
i)Business grew b/c population, transportation revolution, and new
practices
ii)Retain distribution became more efficient w/ specialty stores in cities
iii) Individual + small merchant capitalist companies dominated, but
some larger businesses gave way to corporations- combined
resources of large number of shareholders. Grew 1830s b/c states
passed easy incorporation laws. Limited liability meant stockholder
risked only value of investment if corp failed
iv)Great demand for capital led businesses to rely on credit, but gold
and silver standards of govt led to too little $, led private banks to
issue less stable notes
v)Bank failures frequent, insecure deposits. Credit difficulty limited
growth
b)The Emergence of the Factory
i)Before War of 1812 most manufacturing occurred in private
households in small workshops. Technology and demand led to
factories- began in New England textile industry, large water-driven
machines increased production
ii)1820s factory system in shoe industry, by 1830s spread throughout
Northeast. By 1860 value of manufactured goods roughly equal to
agricultural goods. Largest manufacturers located in the Northeast,
large amt of ppl employed
c)Advances in Technology
i)Developed industries relatively immature, fine items came from
England. But by 1840s rapid machine technology advances,
sophisticated textile industry
ii)Manufacture of machine tools (tools used to make machinery)
improved by govt supported research for military (at Springfield
Armory, MA)- turret lathe and universal milling machine in early 19th
century. Later precision grinder
iii)Better machine tools allowed for wide use of interchangeable parts, new uses
iv)Industrialization aided by new energy sources: coal replacing wood +
water in factories. Allowed mills to be located away from streams,
easier expansion
v)Technological advances due to American inventors, increasing
number of patents. Included Howe-Singer sewing machine, Goodyear
vulcanized rubber
d)Innovations in Corporate Organization
i)Merchant capitalists still prominent 1840s, their clippers were fastest
sailing ships afloat at time. By mid-century merchant capitalism
declining b/c British competition stealing export trade, greater profits
found in manufacturing than trade. Industry grew in NE b/c this
merchant class could finance factories
ii)By 1840s corporations spreading rapidly, especially in textile industry.
Ownership moving form families and individuals to many
shareholders
4)Men and Women At Work
a)Recruiting A Native Work Force
i)In factory system’s early years recruiting labor difficult b/c of farms
and small cities. New farmlands in Midwest + new farm machinery
and techniques increased food production, decreased need for labor.
Transport allowed importation of food from other regions—ppl in
New Eng left for factories
ii)Some recruitment brought whole families form farm to the mill w/
parents and children, but Lowell/Waltham system enlisted young
women
iii)Labor conditions relatively good in early years of system, better than
Eur. Lowell system used young, unmarried women but had good
housing + food
iv)Even well-treated workers found transition from life on farm to in
factory difficult- regimented env’t, repetitive tasks. Women had little
other choice b/c barred from manual labor, unthinkable to travel in
search of opportunity
v)Competitive textile market of 1830s/40s manufactures had difficulty
maintaining high standards + conditions, wages fell. Union of Factory
Girls Association struck twice, but both failed. Eventually
immigrants filled jobs
b)The Immigrant Work Force
i)Increasing supply of immigrant workers after 1840 boom for
manufacturers- large and inexpensive labor source. Little leverage
with employers, lack of skills and native prejudice led to low,
intermittent wages—great poverty
ii)Irish workers predominated 1840s textile industry, arrival led to
deteriorating working conditions. Less social pressure on owners to
maintain decent env’t, piece rates instead of daily wages to speed
production
iii)Factories becoming large, noisy, unsanitary, dangerous places to
work, hours long, wages declining. Still however, condition better
than England and Eur
c)The Factory System and the Artisan Trade
i)Factory system displaced skilled artisans- had been embodiment of
republican independent worker. Unable to compete w/ factory-made
goods for fraction of artisan’s prices. Early 19th century began to
form organizations and first labor unions to protect position.
1820s/30s trade unions developed in cities
ii)Interconnected economies of cities made national unions or federations of local
unions logical. 1834 National Trade’s Union
iii)Labor leaders struggled w/ hostile laws and courts, common law
made worker combination as illegal conspiracy. Panic of 1837 also
weakened movement
d)Fighting for Control
i)Workers at all levels in industrial economy tried to improve position
by making 10-hour workday or restricting child labor. Laws changed
little
ii)1842 MA Supreme Court ruled in Commonwealth v Hunt that unions
were legal and strikes lawful, other states gradually agreed. Unions
still largely ineffective 1840s/50s
iii)Artisans + skilled workers unions more successful 1850s, but their
unions more like preindustrial guilds that restricted admission to
skilled trades
iv)Working class of 1840s/50s had only modest power- limited by
numerous immigrant laborers who could replace strikers, ethnic
division led to worker disunity. Industrial capitalists had great
economic, political and social power
5)Patterns of Industrial Society
a)The Rich and the Poor
i)Commercial +industrial growth raised average income of Americans,
but wealth distributed unequally – for slaves, Indians, landless
farmers, many unskilled workers little change. Small % of families
owned majority of wealth
ii)There had always been wealthy classes from beginning but extent and
character was changing. Newly wealthy merchants & industrialists
settled in cities- found new ways to display wealth in mansions,
social clubs, clothing…
iii)Large population of destitute ppl in growing urban areas- little
resources, often homeless. Included recent immigrants, widows,
orphans, ppl w/ mental illness. Free blacks=only menial jobs, little
pay, no vote, no public schools
b)Social Mobility
i)Class conflict quelled b/c working standards declined but living
standard improving, opportunity for social mobility for workers
captured imagination
ii)Geographic mobility more extensive than Eur, Western lands “safety
valve” for discontent. Also travel form city to city to search for new
opportunity
iii)Opportunity to participate in politics expanded, ballot tied ppl to
community
c)Middle-Class Life
i)Fastest growing group in America middle class. Economic
development offered opportunity to own and work for businesses,
land no longer=wealth
ii)Middle class life most influential cultural form of urban America,
good neighborhoods, women stayed in home to care for children,
cast-iron stoves used to cook, diets improved w/ new access to meats,
grains, dairy
d)The Changing Family
i)Movement of families from farms to cities where jobs, not land, most
important. Patriarchal system of inherited farm land disappeared
ii)Work moved out of home and into shop, mill, factory. Family as
principal economic unit gave way to individual wage earners. Even
farms became commercialized b/c larger lands required more labor
than just family
iii)Changing family role led to decline in birth rate by mid-19th century.
Deliberate effort to limit family size result of future planning. Secular,
rational
e)Women and the “Cult of Domesticity”
i)Growing distinction btwn workplace and home led to distinction in
societal roles of men + women. Women had long been denied legal +
political rights, little access to business, less access to education at
high levels
ii)Middle class husband seen as wage earner, wife to engage in domestic
activities- “guardians of domestic virtues”, central role to nurture
young
iii)“Separate sphere” female culture emerged. Women seen as having
special qualities difft than men-custodians of morality and shape
home to be refuge from competitive marketplace. Provide religious,
moral instruction to kids
iv)By 1840s few genteel women considered working, seen as “lower
class”, owners rarely hired women anyway b/c of “cult”. But
Working-class women couldn’t afford to stay home, many went into
domestic service
f)Leisure Activities
i)Leisure time scarce for all but wealthy, vacations rare, Sunday often
only day of rest + Church. Reading expanded, new newspapers,
magazines, books for affluent. Theaters, minstrel shows, public
sporting events increasingly popular
ii)Circus amazed ppl (PT Barnum), lectures also very popular
6)The Agricultural North
a)Northeastern Agriculture
i)After 1840 decline and transformation- farmers couldn’t compete with
new rich soil of Northwest. Rural population declined. Some farmers
moved west for new farms, others moved to mill towns and became
laborers. Others turned to providing eastern urban centers vegetables,
fruit, profitable dairy products
b)The Old Northwest
i)Some industry (more than in South), industrial growth, before Civil
War- much served agriculture or relied on agricultural products
ii)Lands from urban centers primarily agricultural, owned by workers.
Rising world farm prices gave incentive for commercial agriculture:
growing single crop for market, international market for American
food
iii)Growth of factories + cities increased demand for farm goods.
Northwest farmers sold most goods to ppl in Northeast + dependent
on their purchasing power, Eastern industry found market for
products in prosperous West
iv)To expand production Western expansion into prairie regions during
1840s/50s, new farm techniques and inventions used- John Deere’s
steel plow
v)Automatic reaper by Cyrus McCormick + thresher revolutionized
grain production
vi)NW democracy based on defense of economic freedom and rights of
property
c)Rural Life
i)Religion powerful force drawing farm communities together. Also
joined together to share tasks difficult for single family (such as barn
raising)
ii)Rural life not always isolated, but less contact w/ popular culture and
public social life than in towns and cities. Cherished farm life
autonomy