The market revolution
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The Market Revolution. 1820-1860. What are we talking about?. Major economic transformation Expansion of people producing for the market Changing WHAT they are producing and HOW they are producing Completely new mindset  REVOLUTIONARY!!. Factors Leading to the Market Revolution.

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The Market Revolution

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The market revolution

The Market Revolution

1820-1860


What are we talking about

What are we talking about?

  • Major economic transformation

  • Expansion of people producing for the market

    • Changing WHAT they are producing and HOW they are producing

  • Completely new mindset  REVOLUTIONARY!!


Factors leading to the market revolution

Factors Leading to the Market Revolution

  • Specialization of Labor

  • Early Industrialization

  • Transportation & Communication Revolution

  • Westward Expansion

  • Rise of the Cotton Kingdom

  • Immigration & Migration

  • Government Support for Business


Specialization of labor

Specialization of Labor

  • What is “outwork”?

  • What is the “factory system”?

  • Lowell/Waltham Mills


The market revolution

Samuel Slater(“Father of the Factory System”)


The market revolution

The Lowell/Waltham System:First Dual-Purpose Textile Plant

Francis Cabot Lowell’s town - 1814


The market revolution

Lowell in 1850


The market revolution

Lowell Mill


The market revolution

Early Textile Mill Loom Floor


The market revolution

Early Textile Loom


Early industrialization

Early Industrialization

  • Begins in England as early as 1780s

  • Really underway in US by 1790s, but doesn’t really start to grow until early 1800s

  • MECHANIZATION

  • STANDARDIZATION

  • INTERCHANGABLE PARTS


The market revolution

New EnglandTextileCenters:1830s


The market revolution

New England Dominance in Textiles


The market revolution

Starting for Lowell


The market revolution

Lowell Girls

What was their typical “profile?”


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Lowell Boarding Houses

What was boardinghouse life like?


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Eli Whitney’s Cotton Gin, 1791

Actually invented by a slave!


The market revolution

Eli Whitney’s Gun Factory

Interchangeable Parts Rifle


The market revolution

Elias Howe & Isaac Singer

1840sSewing Machine


The market revolution

John Deere & the Steel Plow(1837)


The market revolution

Cyrus McCormick& the Mechanical Reaper: 1831


Transportation communication revolution

Transportation & Communication Revolution


The market revolution

Cumberland (National Road), 1811


The market revolution

Conestoga Covered Wagons

Conestoga Trail, 1820s


The market revolution

Erie Canal System


The market revolution

Erie Canal, 1820s

Begun in 1817; completed in 1825


The market revolution

Robert Fulton & the Steamboat

1807: The Clermont


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Principal Canals in 1840


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Inland Freight Rates


The market revolution

Clipper Ships


The market revolution

OliverEvans

First automated flour mill

First prototype of the locomotive


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The “Iron Horse” Wins! (1830)

1830  13 miles of track built by Baltimore & Ohio RRBy 1850  9000 mi. of RR track [1860  31,000 mi.]


The market revolution

TheRailroadRevolution,1850s

  • Immigrant laborbuilt the No. RRs.

  • Slave laborbuilt the So. RRs.


The market revolution

Samuel F. B. Morse

1840 – Telegraph


The market revolution

Cyrus Field & the Transatlantic Cable, 1858


Westward expansion

Westward Expansion

  • Doors opened by removal of Indians & new transportation, communication

  • Streams of migration

    • From lower south

    • From upper south

    • From New England

  • Opens up access to new resources

  • Cheap land huge pull factors for immigrants


Rise of the cotton kingdom

Rise of the Cotton Kingdom

  • Contributing factors:

    • Industrial demand for cotton (1st in UK, then in US)

    • Opening of Deep South to new settlement

  • Some consequences:

    • Further pushes regional economic specialization

    • Revitalizes slavery

    • Growth of domestic slave trade


The market revolution

Eli Whitney’s Cotton Gin, 1791

Actually invented by a slave!


Immigration migration

Immigration & Migration

Immigration

1840s – Irish

1850s -- German

  • Pull factors

    • Relatively cheap land

    • Access to jobs

    • Quicker long-distance travel

    • Political freedoms

  • Push factors

    • Political unrest

    • Famine

    • Lack of economic opportunity

Internal Migration

Gradual shift from countryside to cities

People in cities moved more frequently


The market revolution

National Origin of Immigrants:1820 - 1860

Why now?


Government support for business

Government Support for Business

  • Gov’t NOT actively involved in economy

  • Laissez-faire policies mostly

  • BUT

    • Development of private corporations

    • Severely limited gov’t investment in business

    • State gov’ts active in improving transportation infrastructure

    • Support competition & private property (court cases)

    • Criminalize strikes (supportive of employers)

    • Protective tariffs in 1816, 1824, 1828


The market revolution

Creating a Business-Friendly Climate

Supreme Court Rulings:*Fletcher v. Peck (1810)*Dartmouth v. Woodward (1819)*McCulloch v. Maryland (1819)*Gibbons v. Ogden (1824)*Charles Rivers Bridge v. Warren Bridge (1835)

General Incorporation Law  passed in New York, 1848.

Laissez faire  BUT, govt. did much to assist capitalism!


Outcomes of these changes

Outcomes of these Changes

  • Rapid Economic Growth

  • Periods of Boom & Bust

  • Urbanization/Growth of Cities

  • Changes in Labor

  • Beginnings of Organized Labor

  • Rise of Nativism

  • Commercialization of farming in NW

  • Social/Cultural Responses


Rapid economic growth

Rapid Economic Growth


The market revolution

Regional Specialization

EAST Industrial

SOUTH Cotton & Slavery

WEST The Nation’s “Breadbasket”


Periods of boom bust

Periods of Boom & Bust


The market revolution

Boom/Bust Cycles: 1790-1860

The blue line shows, for comparison, the price of a year’s tuition at Harvard College. In 1790 it was $24, but by 1860 had risen to $104.


Urbanization growth of cities

Urbanization/Growth of Cities


The market revolution

American Population Centers in 1820


The market revolution

American Population Centers in 1860


Changes in labor

Changes in Labor

  • Decline in artisan tradition

  • Workers have less autonomy over their labor

  • Subdivision of tasks

  • More supervision

  • Sharpening of line between work time & leisure time

  • Shift from labor’s “price” to labor’s “wage”

    • Some aversion to wage labor

    • Women at Lowell (replaced eventually by cheaper immigrant labor)


Beginnings of organized labor

Beginnings of Organized Labor


The market revolution

The Early Union Movement

Workingman’s Party (1829)* Founded by Robert Dale Owen and others in New York City.

Early unions were usually local, social, and weak.

Commonwealth v. Hunt(1842).

Worker political parties were ineffective until the post-Civil War period.


Rise of nativism

Rise of Nativism

  • Part of ongoing story of anxiety over new groups of immigrants

  • Some fears of immigrants as “subversives”

    • Against democratic ideas

  • Anti-immigrant riots & political campaigns


The market revolution

Irish Immigrant Girls at Lowell


The market revolution

American View of the Irish Immigrant


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Know-Nothing Party:

“The Supreme Order of the Star-Spangled Banner”


Commercialization of farming in nw

Commercialization of Farming in NW

  • Beginning to think more about the market

  • More crop specialization

  • Pushed by growth of

    • Eastern markets

    • Transportation networks

    • Availability of credit

    • Improved farm machinery (esp. after 1840s)


Social cultural responses

Social/Cultural Responses


Changes in social structure

Changes in Social Structure


The market revolution

Changing Occupation Distributions:1820 - 1860


The market revolution

Distribution of Wealth

  • During the American Revolution,45% of all wealth in the top 10% ofthe population.

  • 1845 Boston  top 4% owned over 65% of the wealth.

  • 1860 Philadelphia  top 1% owned over 50% of the wealth.

  • The gap between rich and poor was widening!


The market revolution

Polarization of Wealth in the 20c


The market revolution

The “American Dream”

  • They all regarded material advance as the natural fruit of American republicanism & proof of the country’s virtue and promise.

A German visitor in the 1840s, Friedrich List, observed:

Anything new is quickly introduced here, including all of the latest inventions. There is no clinging to old ways. The moment an American hears the word “invention,” he pricks up his ears.


Who are the beneficiaries

Who are the Beneficiaries?


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