Jacob Schulman
Chapter 10: Rails, Markets, & Mills, 1800-1860
At this point in time, America is still predominantly agricultural
But- Industrialization is picking up (after 1865 is the most)
1815: Population= 6.5 million
1865: 31.4 million
- Immigration really picks up
- GlobalizationThe world is becoming more interconnected- trade especially
Pre-1815 Economy:
- Mostly agrarian (family farms)Center of economic production
Subsistence Farming: you live off what you grow
- Men & Women had the outdoor/indoor tasks
- Few stores; tried to be self-sufficient
- Much barteringTrading with neighbors
- Very few factories
Post-1815 Economy: Market Economy & Capitalism
*Market Economy: Becoming more nationalized and will be a larger market to sell goods
People look to sell surplus products for profit
- More factories, expansion of cities
- Transportation development
American System: (Made by Henry Clay)
1. High Protective tariffs to protect American industry
2. Internal improvements
3. Emphasize manufacturing
4. 2nd National bank
- Workers are paid wages in money
Regional Specialization: North, South, and the West (Northwest)
- Every region specialized in something (Connected, but specialized)
- North: Factories (cloth), cities, ports, banks
- West: Commercialized farming (sell surplus for $ to N & S) (“Breadbasket”)
- South: Subsistence farming, cotton, invest in slaves and land
Transportation will link them together; N+W will have the most connection
- Southern cotton gets sent north to be made into cloth
Role of the National Government:
Theory: Laissez Faire CapitalismHands off by the government (“Government is the best
that governs least”)
Reality: Government will be involved in transportation (Especially after the Civil War)
- Government created national banks; High protective tariffs; Patents (encourage
creativity); Removal of Native Americans
- John MarshallMcCulloch v MD (Banks- federal is stronger); Gibbons v Ogden
(Steamboat case- Federal is stronger)
Transportation Revolution:
- 1825: Erie Canal“Clinton’s Big Ditch” (Dewitt Clinton- Governor of NY)
- Earlier, most people thought New Orleans was going to be economic capital
- There was a gap in Appalachian MtnsConnected the Midwest to the North
Great LakesHudson River (NY)Atlantic Ocean (Europe)
- 363 miles long, average length was 2 miles; Finished ahead of schedule
- Very profitable, shipping rates fell dramatically
- Steamboats were the number 1 method of transportation
- 1820-1850: Canal Era; Most other canals didn’t make nearly as much money
- Roads: 1818- National Road- MD to western VAWill extend to OH
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- Bridge: Charles River Bridge v Warren BridgeSupreme court says that they want to
encourage competition to avoid monopolies
- Railroads: Only became very popular close to the Civil War
1830: 30 miles
1850: 9k miles
1860: 31k miles
- B&O Railroad – Baltimore & Ohio Railroad=1st railroad
- Early on, there was no real standardization of track width
- Railroad engines had trouble with sharp turns and steep inclines
ManufacturingIndustrial Revolution Part I (1820-1860)
- Replacement of hands by machines
Small Workshops

Large Factories
- Production increases, prices drop
- Lowell SystemAll manufacturing is combined in 1 place; Replaces Putting Out system
- Helps with manufacturing efficiency
- Samuel Slater (British Inventor)Came to America and made the first factory
- First industry was textiles
Eli Whitney: Cotton Gin & Interchangeable Parts (Standardization of Machine parts)
- Conditions: Poor air quality, sunrise to sundown; “Wage Slavery”
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