Chapter 9 The Market Revolution, 1815-1860 (c) 2003 Wadsworth Group All rights reserved Government and Markets • 14th Congress (1815) – Chartered national bank – Enacted a protective tariff – Debated federally funded system of roads and canals • Many argued that national independence would be achieved through subsidies to commerce and manufactures (c) 2003 Wadsworth Group All rights reserved The American System: The Bank of the United States • Henry Clay • Second Bank of the United States (1816) (c) 2003 Wadsworth Group All rights reserved The American System: Tariffs and Internal Improvements • Henry Clay and John C. Calhoun – Tariff of 1816 – Internal Improvements • Presidents Madison and James Monroe oppose internal improvements • State government and internal improvements – Erie Canal (c) 2003 Wadsworth Group All rights reserved Markets and the Law • Courts prioritize legal principles desired by merchant class • John Marshall – Dartmouth College v. Woodward (1816) – McCulloch v. Maryland (1816) – Gibbons v. Ogden (1824) • State courts: right to develop property for business purposes more important than neighborhood wishes (c) 2003 Wadsworth Group All rights reserved The Transportation Revolution • After 1815: dramatic improvements in transportation: – – – – Roads Steamboats Canals Railroads • Tied communities together • Made a market society physically possible (c) 2003 Wadsworth Group All rights reserved Transportation in 1815 • Land transport very expensive compared to water • flatboats • keelboats – Mike Fink (c) 2003 Wadsworth Group All rights reserved Improvements: Roads and Rivers • Transportation revolution • National Road • Robert Fulton – Clermont (c) 2003 Wadsworth Group All rights reserved Improvements: Canals and Railroads • Erie Canal – DeWitt Clinton – Model for canal boom across country • Baltimore and Ohio Railroad • New York Central (c) 2003 Wadsworth Group All rights reserved Time and Money • • • • • Freight costs went down Speeds improved Market revolution Foreign trade continued to expand Growing internal domestic market (c) 2003 Wadsworth Group All rights reserved Markets and Regions • Market-driven economy: “market revolution” – Farmers trade their surpluses for urban products • Until 1840 markets more regional than national • North becomes unified market in 1840s and 1850s (c) 2003 Wadsworth Group All rights reserved From Yeomen to Businessmen: The Rural North and West • Many young people of Northeast left for cities and factory towns, or headed West • Remaining generations began new forms of agriculture • Northwest was transformed from wilderness into cash-producing farms (c) 2003 Wadsworth Group All rights reserved Shaping the Northern Landscape • New England farmers could not compete with western, frontier farmers • Livestock raising replaced mixed farming for many New Englanders – transformed the woodlands into open pastures • Factories and cities of Northeast provided Yankee farmers a market for their meats and perishables • More pasture, less cropland (c) 2003 Wadsworth Group All rights reserved The Transformation of Rural Outwork • Position of outworkers declines • Manufacture began to concentrate in factories • Outworkers were reduced to dependence on merchants, who began to control the labor of outworkers (c) 2003 Wadsworth Group All rights reserved Farmers as Consumers • New England farmers became customers for necessities that they had once either produced or acquired through barter – Coal, cotton cloth, straw hats, shoes • 1820s: storekeepers increased their stock in trade by 45% • Material standards of living rose • Increased dependence on and vulnerability to markets (c) 2003 Wadsworth Group All rights reserved The Northwest: Southern Migrants • Treaty of Greenville • Americans migrated into Ohio, Indiana, Illinois • Southern born pioneers of the Northwest, slavery blocked opportunities for whites • Neighboring persists (c) 2003 Wadsworth Group All rights reserved The Northwest: Northern Migrants • 1830: northeasterners migrated to the Northwest via the Erie Canal and on Great Lakes steamboats • Wisconsin and Michigan • Immigrants from Germany and Scandinavia • New settlers: receptive to improvements in farming techniques and intensive agriculture (c) 2003 Wadsworth Group All rights reserved Households • 19th Century: Americans begin to limit the size of their households • Commercialization of agriculture closely associated with the new concept of housework: – Male work vs. female work – New expectations of female tasks • New notions of privacy, decency, domestic comforts • Emergence of separate kitchens and bedrooms (c) 2003 Wadsworth Group All rights reserved Neighborhoods: The Landscape of Privacy • Nature: a commodity to be altered and controlled • Old practices and forms of neighboring disappeared • Storekeepers gradually demand cash, rather than bartered goods • Efficient farmers concentrated on commodities to bring to market and purchases made for family comforts • Farmers increasingly dependent on outside world (c) 2003 Wadsworth Group All rights reserved The Industrial Revolution • 1820-1870: American cities grew faster than ever before or since • Seaport cities gain more from commerce with interior than overseas • Beginnings of industry and the greatest period of urban growth in U.S. history (c) 2003 Wadsworth Group All rights reserved Factory Towns: The Rhode Island System • Jeffersonians—factory towns are bad and overcrowded with dependent masses • Neo-Federalists: U.S. can make decentralized factories • Richard Arkwright • Samuel Slater – Rhode Island (or family) system (c) 2003 Wadsworth Group All rights reserved Factory Towns: The Waltham System • Francis Cabot Lowell and the Boston Associates • Waltham System – Process mechanized to minimize skilled labor – Labor force primarily young farm women housed in company boarding houses – Wage labor gave women way out of rural patriarchy (c) 2003 Wadsworth Group All rights reserved Urban Businessmen • Acceptance of urban class divisions: – Seaport merchants and wealthy men of finance – new middle class – impoverished producers, laborers • Commercial classes transformed the look and feel of American cities • Downtown business offices • Main Street storefronts • Shopping markets in Boston, Philadelphia, Rochester (c) 2003 Wadsworth Group All rights reserved Metropolitan Industrialization • Growth in amount of laborers who made consumer goods • Pre-1850s: few goods were made in mechanized factories – most were made by hand • Urban working class • Clothing and shoe manufacturing – Men skilled labor, women unskilled • Social distinctions between manual and non-manual labor (c) 2003 Wadsworth Group All rights reserved The Market Revolution in the South • Cotton belt extended into Mississippi, Texas, Arkansas, Alabama, Louisiana • 1840s: cotton accounted for one-half to twothirds the value of all U.S. exports • South produced three-fourths the world’s cotton supply (c) 2003 Wadsworth Group All rights reserved The Organization of Slave Labor • Many plantations produced only cotton • Southern planters organized slave labor to maximize production and reinforce dominance of white farm owners • Frederick Law Olmstead’s observations • Association of labor with slaves shaped Southern perceptions of dignity of work (c) 2003 Wadsworth Group All rights reserved Paternalism • Post-1820: exploitation of slave labor became more systematic and more humane • Systematic paternalism • Slaves’ material standards rose – Physical height – Infant mortality • After 1808, imports of new Africans were banned (c) 2003 Wadsworth Group All rights reserved Yeomen and Planters • Cotton: economies of scale – Big farms with many slaves operated more efficiently and profitably than farms with fewer resources – Wealth becomes more concentrated – Dual economy • Plantations at center • White yeoman farmers at fringe • Upcountry yeoman – Traditional household and neighboring lifestyle (c) 2003 Wadsworth Group All rights reserved Yeomen and the Market • Southern yeomen practiced mixed farming for household subsistence and neighborhood exchange • System of “subsistence plus” agriculture: market serves interests, but does not dominate • Entrepreneurship and ambition discouraged (c) 2003 Wadsworth Group All rights reserved A Balance Sheet: The Plantation and Southern Development • Wealth of South great, but concentrated – Wealth disparity created political cleavage – Wealth concentration stifled southern market • Effect of Market Revolution on South: more slavery • Technology and development – Eli Whitney and cotton gin – Little spending on internal improvements – Cities primarily export centers • DeBow’s Review (c) 2003 Wadsworth Group All rights reserved Conclusion • James H. Hammond: “Cotton is king” • The South’s commitment to cotton and slavery: – Politically isolated the South – Made the South dependent on financial and industrial centers • North and West both enriched by Market Revolution – Northeast moves from periphery of world economy to core (c) 2003 Wadsworth Group All rights reserved