The Cotton Gin

1. The Cotton Gin • Invented by Eli Whitney • Removes seeds from cotton • Lead to increased cotton production in the South • Increased cotton production creates need for more slaves in the south

2. Industrial Revolution • Industrialization began in England and spread to the United States • Textile industry was first to be industrialized • Industrialization of the United States started in the New England states • Southern cotton planters sold their crops to northern factories

3. The American System • Designed to unite America’s economic interests James Madison Henry Clay

4. The American System • Developing an internal transportation system to link all regions of the nation (National Road, Erie Canal) • Establishing a protective tariff (tax on imports) to protect U.S. industries from foreign competition and fund internal improvements • Reestablishing the Bank of the United States to create a nationally recognized and equally valued currency to create financial unity among the regions of the country

5. McCulloch v. Maryland (1819) • State of Maryland attempted to kill the BUS with a tax. • The BUS manager (McCulloch) refused to pay claiming that a state government had no right to tax the federal government. • John Marshall and the Supreme Court agreed saying that “the power to tax is the power to destroy.” • Decision increased power of the federal government to regulate the economy.

6. Gibbons v. Ogden (1824) • Aaron Ogden and Thomas Gibbons operated competing steamboat businesses on the Hudson River. • Ogden was based on the New York side of the river and had a license from the state of New York to operate his business. • Gibbons was based on the New Jersey side and claimed that only the federal government could grant licenses for interstate commerce. • Marshall and the Supreme Court agreed with Gibbons. By stating that only Congress could regulate interstate commerce the powers of the federal government were increased. • The Marshall Court earned a reputation for making decisions that strengthened the powers of the federal government.

7. Missouri Compromise • As new states were added to the Union it became increasingly more important to balance the number of slave states and free states in the Senate. • The issue of slavery was beginning to cause some serious tensions between the North and the South. • When Missouri applied for statehood as a slave state the balance in the Senate was going to be thrown off in favor of the slave states (South). • This problem began to threaten the unity of the nation.

8. Missouri Compromise • To avoid a national crisis a compromise had to be reached between the North and the South on this issue. • Henry Clay played and important role in brokering a deal; it had three key parts. • Missouri would be admitted as a slave state. • Maine would be admitted as a free state. • The Louisiana Purchase territory would be divided at 36 – 30. North of that line would be closed to slavery, south of it would be open to it.

10. Monroe Doctrine • Monroe issued a “warning” to European powers. • The Western Hemisphere is closed to colonization. • European powers should stay out of the affairs of nations in the western hemisphere. • In return the United States would stay out of European affairs. • Monroe was asserting U.S. dominance in the western hemisphere.