Chapter Seven, Section One
Regional Economies Create Differences (pgs. 212-218)
Another Revolution Affects America
 As better methods of manufacturing came about, so did the development and rise
of factories
 Factories made mass production possible
Mass Production – the production of goods in large quantities
Interchangeable Parts – parts that are exactly alike and can be used in variety of ways
 Created by Eli Whitney (inventor)
 Enabled muskets to be assembled much faster
o All of this led to the Industrial Revolution
Industrial Revolution – the social and economic reorganization that took place as
machines replaced hand tools and large scale factory production developed.
 Started in BR; spread to US
The Industrial Revolution in the US
After American Revolution, primary source of income for US: international trade
 Grain, tobacco, & other agricultural products were grown & then shipped to other
countries for a profit.
 Two events changed the primary source from international trade to that of an
industrial flare::
o Passage of President Jefferson’s Embargo Act of 1807
o War of 1812
 Although the Embargo Act was repealed a couple years later, many of the port
cities’ shipping centers had already closed.
 Once War of 1812 broke out, BR Navy blocked coastline, so US shipping was
hindered
New England Industrializes
 All of these changes to our country’s source of income greatly affected the
northeast region because they didn’t really farm
 1793 – Samuel Slater (from BR) started 1st textile factory in Pawtucket, Rhode
Island. (made thread)
 By 1813, factories were improved to not just make thread, but rather all the
stages, and they could produce cloth.
 By 1822, a weaving factory transformed its entire community of Lowell
 Pretty soon, people were moving to these little “factory towns” and pretty soon
they were no longer little
 The I.R. was changing our young nation. (see p. 214)
Two Economic Systems Develop
 Northeasterners began investing in these factories
 Southerners were making their money in cotton
 Because the two regions were profiting from completely different ways, the North
& South continued to develop 2 different economic systems
Agriculture in the North
 There were still some farms in the North, but were mostly subsistence farms
 Then the North split too
o Northwest (OH, IL, IN, WI, MI) started focusing on raising just one crop
or a specific livestock, & then they would sell that one product at markets
in the city
 Because most of these farms were small, slavery was not necessary in the North
 Around this time, people began to vocally oppose slavery for religious and
political reasons
 By 1804, almost all northern states had voluntarily abolished slavery
Cotton is King in the South
 Back to the cotton…it became such a huge market because of Eli Whitney’s
cotton gin. (allowed for mass production)
 Cotton was in high demand in BR & North
 The cotton gin actually led to more slavery because they needed slaves to help
cultivate the cotton (lots of money to be made)
Slavery Becomes Entrenched
 1790: 3,000 bales of hay & 700,000 slaves
 1810: 178,000 bales of hay &1,200,000 slaves
Clay Proposes the American System
 Because the North & South were so different, President Madison felt an urgent
need to unify the nation. (1815)
 Madison’s plan had three parts (becomes known as American System)
o Develop transportation systems and other internal improvements
o Establish a protective tariff
o Resurrect the National Bank (had been reduced under Jefferson)
 Even Madison’s critics rallied behind this proposal. (i.e. Clay – Speaker of the
House)
 Through the system, different regions would need one another to be successful
(see p. 217)
Erie Canal & other Internal Improvements
 In order to do business with one another, the people had to be able to
communicate, travel, & transport goods
 1825 – 1st locomotive in US
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Railroads emerged and were better because they were faster, more efficient, and
could travel even when weather was poor
Besides railroads, states also started building turnpikes and people had to pay a
tax (toll) to continue using the roads. The money was then used to improve the
roads
The federal government then joined in and built the National Road in early 1800s
o Finished by 1838 – extended from Cumberland, MD to Vandalia, IL
Canals were also built to connect cities
o Erie Canal is one of the better examples
o See map on p. 217
o The tolls paid on these canals paid them off pretty quickly, and the rest
was profit
Tariffs & the National Bank
 Taxes on imported goods were necessary because BR goods stockpiled during
War of 1812 (i.e. Tariff of 1816)
o Result: Large supply = low price
 American goods were consequently more expensive, so people naturally bought
the BR stuff
 The tariffs eliminated the price advantage
 Northeasterners were extremely thankful for the tariff
 Southerners and Westerners were not please because now the goods they buy are
more expensive
1816 – Second Bank of US (BUS) was created
 The universal currency would make doing business in different regions much
easier
Things were good & in 1816, James Monroe (VA) became president, and US entered an
“Era of Good Feelings”
Chapter Seven, Section Two
Nationalism at Center Stage (pgs. 219-223)
The Supreme Court Boosts National Power
 Fulton & Livingston obtained a charter allowing just them to run their steamboats
on rivers in NY
o They made $ because they had a monopoly on NY rivers
o Monopoly – exclusive legal control of a commercial activity
o They charged others a fee to run their steamboats
o One of these “others” – Aaron Ogden
 Ogden paid for rights to run a steamboat between NY & NJ
 But then Thomas Gibbons started running his steamboat on the same rivers
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Ogden took Gibbons to court to stop him
1824 – Supreme Court ruled interstate commerce can only be regulated by federal
government, so NY had no right to issue a charter from NY to NJ
Gibbons v. Ogden – helped show that federal government has power to regulate just
about everything from our traffic to cellular communication to radio television waves
Strengthening Government Economic Control
 McCulloch v. Maryland (1819) – Maryland tried to impose a tax on the local
branch of the national bank, so that it would collapse
 Chief Justice J. Marshall realized that if MD won, states would just start making
their own laws that would overturn Congressional decisions
 So Maryland lost and didn’t have power to tax the Bank.
Limiting State Powers
 Chief Marshall continued to make rulings that limited/blocked state power to
interfere in business and commerce.
o Fletcher v. Peck
o Dartmouth College v. Woodward
Nationalism Shapes Foreign Policy
 As Marshall was strengthening federal power, Sec. of State John Quincy Adams
was making foreign policy decisions guided by concepts of nationalism.
Nationalism – the belief that national interests should be placed ahead of regional
concerns or the interests of other countries.
Territory & Boundaries
 J. Q. Adams focused on (1) national security and (2) expansion of its territory
o Treaty with BR to reduce Great Lakes fleets to just a few small military
vessels
o Rush-Bagot Treaty – led to demilitarizing the US/Canada border
o Convention of 1818 – fixed US border at 49th Parallel to Rocky Mountains
(map –p. 221)
o Compromise with BR to jointly occupy Oregon Territory for ten years
o 1819 – Spain ceded Florida to US (Adams-Onis Treaty)
The Monroe Doctrine
 By 1815, Spain and Portugal had beat Napoleon and wanted to reclaim former
colonies in Latin America
 Meanwhile, Russia was establishing trading posts in present day California (posed
threat to US trade with CH)
 US knew it had to do something
 1823 – President Monroe delivered a message to Congress that became known as
the Monroe Doctrine:
o Warned outside powers not to interfere with affairs in Western
Hemisphere (don’t create or overthrow colonies) & that if they did, we
would view it as a threat to our safety
o Also announced US would stay out of all European affairs and out of any
already existing colonies in Western Hemisphere
Nationalism Pushes America West
 NW Territory was becoming civilized
 Some settlers went west to escape debt or jail, but a lot pushed west looking to
make money
o Land was fertile, in great supply, & cheap
o Social gains also made – new relationships & occupations – a chance to
start over
o Jim Beckwourth example (p. 222)
The Missouri Compromise
Remember: Territories could become states when population reached 60,000 & got a
petition, state constitution, etc.
But when Missouri tried to become a state, the issue of slavery surfaced
 1818 – US had 10 free states & 10 slave states
 Later in 1818 – IL admitted as 11th free state (so made sense for Missouri to
become the 11th slave state)
 But NY Rep. James Tallmadge amended the bill to make Missouri a state, by
putting in there that Missouri would gradually free its slaves. (Passed in House,
but Senate blocked it – why?)
 As this is happening, Alabama was admitted as a slave state (so now 11-11)
 Very controversial on both sides, but Henry Clay temporarily fixed things with
the Missouri Compromise – Maine was added as a free state & Missouri as a
slave state, so it was still balanced.
o Rest of Louisiana Territory split – half for slaveholders & half for free
settlers. Everything north of the line, except Missouri, was free (slavery
banned).
 This was only temporary – see Jefferson quotes (p. 222-223)