The Market
Revolution
Chapter 9
The US after 1812
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US emerged from war of 1812 with a strong sense of
nationalism. Since the Federalists are dead, Dem-Reps
get the credit …. Though it’s interesting to note how
many policies they carry through were originally
federalist- and bitterly opposed by Dem-Reps. Econ
growth a symbol of pride – and seen as responsibility
of the government
New “Western” states- Vermont (1792) Kentucky (1792)
Tennessee (1796) Ohio (1803) Louisiana (1812) Indiana
(1816) Illinois (1818) Mississippi (1817) Alabama (1819)
takes us to 22.
Three New things in America after 1812:
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Spread of industry and market relations
Westward movement of population
Vigorous political democracy
All will reshape the idea of Freedom
A new Economy
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Technology changed very little during the colonial
era.
One of the tricky parts of US was geography ESP in
“the West” (everything from Appalachians to
Mississippi)- roads were poor, it cost as much to
ship something 30 miles overland as it did to send it
to England. To get things from Ohio to NY, you
sent them down the Mississippi and around the
Atlantic (50 days).
Significant changes in transportation and
communication will change that- and begin to
connect more areas of the US together.
Roads and
Steamboats
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Improvements in roads came through
toll roads built by states and private
companies. 1806- congress began the
“National Road” from Cumberland
Maryland (outside DC) to Vandalia IL
591 miles. By 1832 US have 2,400 miles of
paved roads. Was still the least efficient
was of travel… generally Conestoga
wagons
1807 Robert Fulton- Clermont- travelled
upriver from NYC to Albany. Made 2
way river travel possible and profitable.
Esp profitable on the Mississippi
The Erie Canal
 US
has lots of rivers- but they
aren’t always flowing the right direction….
 Early 1800s was the age of the Canal (Erie Canal
largest 363 mi from Great Lakes to NYC- reduced
travel time for 20 days to 6, cost of shipping fell
from $100 a ton to $6 a ton for grain)
 By 1837 there were 3000 miles of Canal
 Great lakes Cities like Cleveland, Detroit and
Chicago saw explosive growth
Railroads and Telegraph
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RR: Most significant part of
transportation revolution- cheaper
than canals to build, ran all year &
over any terrain.
1828 Baltimore & Ohio RR 1st
important line in US
By 1850 US had 9000 mi of track, by
1860 30,000 mi (more than rest of
world combined)
Telegraph: Communication also got
a big boost of speed with this
invention (Samuel Morse) in 1844.
By 1860 there were 50,000 mi of
telegraph line
Interesting note, Morse offered to
sell telegraph patent to gov’t- they
refused, thought it wouldn’t be a
profitable business.
Rise of the West
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By 1850 2/3 of Americans lived west of Appalachiansand more and more are heading towards/across
Mississippi. Two main areas: “Upper Northwest” Northern
Ohio, Indiana, Illinois, Michigan Wisconsin. And “Cotton
Kingdom/Upper South”: Southern OH, IN,IL, and Alabama
Mississippi, Louisiana, Arkansas
33 states in the Union in 1860
Came as Families- worked together
and established communities
Could buy gov’t land in territories on
credit for $2 an acre, then for $1.25 an
acre cash
Acquisition of Florida
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Americans began to move illegally into territory
seized in western Florida during war of 1812.
A series of revolution in Latin America starting
around 1816 left Spanish occupied- and pulled
their troops out of Florida.
General Andrew Jackson claims that US territories
are under threat from now unsupervised Seminole
Indians (1st Seminole War 1816-18) But Jackson
didn’t just fight Indians- he captured the Spanish
governor, and a number of Spanish towns.
US gov’t send ultimatum to Spain- either control
“rebel elements” or cede territory. Spain sees it’s
going to lose- US get Florida in Adams- Onis treaty
of 1819
The Cotton Kingdom
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Much of South (esp “western south” of Georgia, Alabama,
Mississippi, Louisiana, Arkansas) ideal for cotton growthand the first industry to industrialize is textile manufacturing.
Once cotton can be produced profitably (after cotton gin
1793) there was demand for as much as the south could
produce- and that meant the expansion of the plantation
system- and slavery. (though international trade outlawed
1808)
By 1840 the southern states are producing 2/3 of the
world’s cotton. But only 25% of the population owns
plantations/slaves, so the profit is in a small # of hands
Wealthy planters invested profits back in plantations, not in
other industries. The South stays rural- and unconnected to
the rest of the country economically
The Un- free Westward Movement
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Approx 1 mil slaves were moved to
new states - slave Coffles (chain gangs
on forced march) became a common
sight. Intensified the destruction of
normal family life for slaves
In 1790, US produced 5 million lbs of
cotton. In 1820, we produced 170
million- became our most important
export crop.
Jefferson had thought we would be a
nation of yeoman farmers- but that is
not how cotton works. Also, like
tobacco- needs new soil, so there will
be always be people wanting to
move- and expand slavery
Market Society
Commercial Farmers
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While the south creates a product vital to commerce, it
remained overwhelmingly agricultural
80% of population worked land in 1860- same % as 1800
As the East begins to develop a manufacturing
economy, and transportation improves the source of
food shifts west. Farmers of the Old Northwest raised
crops and livestock for sale in Eastern markets (southern
plantations produced their own food) Eastern famers
(that stay in farming) focus on dairy, fruit/veg.
New Technologies: Steel Plow (John Deere) 1837,
Mechanical Reaper (Cyrus McCormick) 1831 allow
farmers to grow more. Wheat output triples between
1840 and 1860
The
Growth
of
Cities
Western Cities like
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Cincinnati , Detroit and St.
Louis were centers of
Interregional trade- as well
as places for agricultural
goods to be shipped to
East and Euro.
Others, like Buffalo,
Cleveland and Chicago,
developed into
manufacturing centers or
places to process goods.
There were 12 cities with
more than 5000 in 1820,
there were 150 in 1850.
Urban jobs changed,
craftsmen had been
independent, but factories
were not
The Factory System
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In both Europe and US, Textiles were the 1st product
to be really industrialized.
Americans liked British textiles, but Embargo & War of
1812 cut us off
Samuel Slater immigrated to the US, and built our 1st
factory (Pawtucket RI) in 1790 to spin thread . 1st
weaving factory at Waltham MA 1814. Lowell MA
was a group of factories to spin, weave and finish
cloth (1836).
Early factories used water power- made New Eng the
perfect choice. Even after steam power became
common, the Northeast was our 1st manufacturing
zone
Eli Whitney gave us interchangeable parts, which
helped create better machines and facilitated mass
production.
The industrial Worker
The Mill Girls
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If you are a farmer you never “leave” work, but you work at
your own pace. Factories were regulated (which caused a
great deal of resentment early on), but once you were done,
you were done- opened up 1st options of “leisure time” for
lower classes.
Still- factories were not fun places to work, all the rules
seemed contrary to liberty, and few “American” men
wanted the jobs. (immigrants will become the source of
cheap labor after 1840)
Early textile mills relied heavily on female and child labor.
Unmarried New England girls were the primary employees.
Many mills, like Lowell, created boarding houses, lecture halls
etc, to make sure young women were “properly supervised”.
And yet- this was one of the 1st opportunities for a women to
be financially independent- to choose her own life. Still, most
women worked for a few years, saved $$, then got married
The Growth of Immigration
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Between 1830-1860 5 million
immigrants came to US- and for
the 1st time the majority of them
aren’t English (though a fair
number of English continued to
come). Largest #s came from
Ireland and Germany.
War, famine and econ
opportunity main reasons to
immigrate. Ocean going
steamship made it faster/more
practical
Often a male would come 1stthen the rest of the family (could
be several generations) would
follow
Irish Immigrants
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Potato Famine devastated
Ireland 1845- 1851. and
British did virtually nothing
for relief of those affected
(over a million died)
Largest #s of Pre Civil war
immigrants- 1 mil also
arrived in US- there were
more Irish in US than in
Ireland.
Tended to settle in Eastern
cities. Faced severe
discrimination (hated by
protestants)
Became part of “Political
Machines”
German
Immigrants
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Many came b/c of series of
unsuccessful liberal
revolutions- esp 1848. 1.5
million 1830-1860. Overall one
of the largest groups of
immigrants- today 25 % of
Americans have some
German heritage.
Unlike Irish- weren’t generally
poor (most educated or
skilled) Lots went to the
midwest (Ohio, Indiana,
Wisconsin) others to upper
Miss. River valley.
Beer an important new
product
The Rise of Nativism
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all Irish, and many German immigrants
were Catholic- which was a problem for many
“Native” Americans.
 Nativists: feared impact of immigration on Amer.
Culture. Blamed immigrants for crime, corruption,
and said they “stole” American jobs. (or would
be ruled by the Pope) Stereotype of Irish (Born in
our English Heritage) as lazy, childlike, and
unsuited for political freedom.
 Ironic juxtaposition: America is the land of Liberty
and an Asylum for all mankind- but there is very
real hostility towards foreigners (then and now)
and intense anxiety over immigration
The Transformation of Law
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“Corporations” grew out of joint stock companieswhat’s important is that individual investors are liable
ONLY for what they invest in Company, which makes
them much more willing to risk and invest.
Regulation for establishing corporations became
much more streamlined (before companies had to
apply to legislature for charter etc)..NY 1st to establish
“general incorporation laws”
Courts upheld corporation- saying that later laws did
not alter validity of Contract
 Dartmouth v. Woodward 1819
 Gibbons v Ogden 1824
 Charles river Bridge
Not so fond of worker’s rights- unions general
considered illegal b/c they “restrained free trade”
The Free Individual
The West and Freedom
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Europeans were amazed by the mobility of the American
population- if they didn’t like their situation they could
change, move (generally west) and always seemed to be
looking for new opportunities. Individualism- specifically the
power to make econ, social, political, religious choices for
one’s self, became a key part of what we define as
“freedom”
John O’Sullivan (journalist) was the coined the phrase
“Manifest Destiny” – which will come up a lot between 18201850. A central component of “the pursuit (literally) of
happiness” was an opportunity to move to new places- and
there was a strongly held belief that our expansion westward
was God’s will to extend American Freedom (unless of
course you were an Indian or a slave)
The idea that there was always another frontier- always more
land kept some of Jefferson’s ideals alive, and prevented
social stagnation- especially for the lower classes.
The Transcendentalist
 Another
aspect of Individualismdefining it philosophically.
 Ralph Waldo Emerson and Henry
David Thoreau were leaders of this
movement (which has other stuff
going on, we’ll come back to it)
but a key part is that people have
to find and define their own
freedom. Insisted on the primacy of
individual judgment over existing
social traditions and institutions
Individualism
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part of the concept of being
true to yourself is the idea of
“privacy” (not a word used
much before 1820) meaning
that there are aspects to life
that the rest of society, and
ESPECIALLY the gov’t, have no
right to be a part of. Genuine
freedom is within a person, not
in the dictates of society.
 Thoreau exemplified this with
his “Walden” experiment (“I
went into the woods b/c I
wished to live deliberately….”)
The 2nd Great Awakening
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Though ¾ of Americans called themselves Christians” in
1850, religious services had become less popular.
Around 1800 a religious revival began in New England.
Charles Grandison Finney: became an evangelical
celebrity in upstate NY. Democratizing Christianity- get
people participating. 100,000s become “Born Again”
Christians.
People would gather for days of preaching and singing
by traveling ministers. Attracted more women than men
Methodists and Baptists huge participators- saw big
jumps in membership. Burned Over District- western New
England and upstate NY, known for “hellfire” sermons.
Emphasized class divisions, lower classes tended to go in
for the emotionalism, upper classes not so much.
The Awakening’s Impact
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used and spoke against the transformation
that the market economy was creating. (used
canals/steamboat/trains, but spoke against the
greed of commerce)
 Created New Sects- offering greater choice,
and therefore individualism:
 Adventists: Decided world would end Oct 22,
1844. Gave away all property, prepared
themselves….
 Continued the fun theme of sectional tensionsouthern slave owners didn’t like
reform/abolitionist tone of meetings
The Emergence of Mormonism
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“Mormon” is the unofficial name for the members of
the Church of Jesus Christ of Later Day Saints.
Founded by Joseph Smith in NY (believed he had
been given a message from God, and a new
testament from the angel Moroni)
Criticized for changing established Christian beliefs,
their practice of polygamy., and posthumous
baptism
Driven west (Smith killed) led by Brigham Young- to
Salt Lake City Utah where they founded a
“Community of Saints” (their polygamy kept Utah
from statehood until 1896 when it was officially
outlawed)
The Limits of Prosperity
Liberty and Prosperity
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The right to try to advance economically became a
touchstone of American Freedom.- and success
stories became inspiration for others (still true today)
John Jacob Astor was the son of an immigrant
Butcher- dies the richest man in the US (started in
trade w/Asia, then goes into real estate investment in
NYC)
What we like is that success comes not from
favoritism of hereditary privilege, but from
intelligence and hard work.
Of course, not everyone ends up rich- but those who
work hard tend to do well, and we have a growing
middle class of businessmen and bankers and
lawyers and other professions
Race and opportunity
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Even if they were free- African
Americans had very few
economic opportunities.
Represent about 2% of population
by start of civil war, generally lived
in poorest sections of cities, were
barred from many skilled
professions, and denied
educational opportunities.
Didn’t get the big “go west” safety
valve either, were not allowed to
buy land from the Government.
Indiana, Illinois, Iowa and Oregon
forbid them from living in their
states at all.
Cult of Domesticity
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Middle class and elite Men took
pride in the fact their wives
didn’t HAVE to work- even
domestically (servants)
The idea of republican
motherhood shifted. Wives of
these the middle class were
expected to be guardians of
domestic virtues- protected
from the rough and tumble
world of men
“The Gilded Cage” promoted
by publications like Godey’s
Ladies’ Book- women should
care about fashion and
refinement, and little else
Women and work
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class/farm families
had a fair amount of
gender equalityeveryone had to work.
 1st time a variety of
careers open for women
(factories, teaching,
domestic service) 10% of
women never married,
20% worked before they
were married.
 Women also began to
fight against their inferior
legal status
The Early Labor Movement
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Remember, America is a capitalist country- and in a free
market economy there will be ups…..and downs.
Panic of 1819 and Depression of 1837 were big issuesand for everyone who was doing well in the market
economy, there was probably someone who wasn’t….
Widening gap between wealthy/middle class and wage
dependent poor.
Skilled craftsmen, who didn’t like factories, were the 1st to
try to protect their econ role. “Workingman’s Parties”
began to spring up in the 1820s trying to elect
candidates who would support education, ending debt
imprisonment and asking for legislation on the rights of
workers (10hr day etc)
Also called for gov’t to create free homestead on public
lands in west (we will do that after the civil war
The liberty of Living
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Once again, we use the “language of liberty” to
protest restrictions and difficulties in worker’s lives.
Wage work was often compared to slavery- and as
Jefferson said, people needed to feel in control of
their econ destiny to feel free- and factory workers
don’t have that.
Workers called for “the Liberty of Living”- that there
should be a minimum standard of living for American
citizens. (wouldn’t really take hold until the
progressive era at the turn of the 19th century)
Most often the response was work harder. Emerson
said “self trust, self reliance, self control and self
culture” were the key to addressing social inequality.