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Two major changes defined the early 19th century American economy:1) the growth
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1. Chapter 9: Economic Transformation, 1820-1860 The American Industrial Revolution
2. Two major changes defined the early 19th century American economy:
1) the growth & mechanization of industry (the Industrial Rev.)
2) the expansion & integration of markets (the Market Rev.)
Economic Revolutions
3. The dramatic increase between 1820-1850 in the exchange of goods & services in market transactions. The M. Rev. resulted from the combined impact of the increased output of farms & factories, the entrepreneurial activities of traders & merchants, & the development of transportation networks of roads, canals, & railroads. The Market Revolution
4. Industrialization came to the U.S. between 1790-1820 as merchants & manufactures increased outputs of goods by:
1) reorganizing work
2) building factories
Industrialization
5. The outwork system was a more efficient division of labor that:
1) lowered the price of goods
2) and eroded workers control over the pace & conditions of work
The outwork system
6. Division of labor:
a system of manufacturing that assigns specific - & repetitive tasks to each worker. The system was first implemented between 1800 & 1830 in the shoe industry & soon became general practice throughout the manufacturing sector of the U.S. economy. Although it improved efficiency & productivity, it eroded workers control & sense of achievement.
Division of Labor
7. For tasks not suited to outwork, factories were created where work was concentrated under one roof & divided into specialized tasks.
Manufacturers used newly improved stationary steam engines to power their mills and used power-driven machines & assembly lines to produce new types of products.
In Britain there was major concern that American goods would not only compete with them, but would also be sold in England. Factories
8. British textile manufactures were particularly concerned re: American competition.
Britain prohibited the export of textile machinery & the emigration of mechanics who knew how to build it, but many mechanics would disguise themselves as ordinary laborers & set sail for America.
For example, Samuel Slater brought to America a design for an advanced cotton spinner; the opening of his factory in 1790 marked the advent of the American Industrial Revolution. The Textile Industry & British Competition
9. America had an abundance of natural resources, but British companies were better established & had less-expensive shipping rates, lower interest rates, & cheaper labor.
American producers used several strategies to cope with British competition:
- Congress passed protective legislation in 1816 & 1824, levying high taxes on imported goods; tariffs were reduced again in 1833, & some textile firms were out of business
- improved on British technology
- found and exploited less expensive workers The Textile Industry & British Competition
10. By copying the machines of British textile mills, Francis Cabot Lowells Boston Manufacturing Company was able to build the Waltham factory, the first American factory to perform all the operations of cloth making under one roof @ higher speeds & w/ less workers.
The BMC pioneered a labor system that became known as the Waltham plan, in which the company recruited farm women & girls as textile workers since they would work for cheap wages
By the early 1830s more than 40,000 NE women worked in textile mills. They found they work incredible oppressive but felt it offered them a new life, freedom, and personal autonomy. Francis Cabot Lowells Boston Manufacturing Company
11. By combining improved technology, female labor, & tariff protection, the BMC sold textiles more cheaply that the British. The BMC
12. By the 1820s, American-born craftsman had replaced British immigrants at the cutting edge of technological innovation.
Some of the most important inventors were from the Philadelphia region, members of the Sellars family, and organized the Franklin Institute in 1824.
Mechanics Institutes were founded in several other states. They
- disseminated technical knowledge
- encouraged innovation ( in 1820 the U.S. Patent Office issued about 200 patents each yr. by 1860 it was 4,000 per yr. American Mechanics & Technological Innovation
13. American mechanics pioneered the development of machine tools, fueling the spread of the Industrial Rev.
In the firearm industry, Eli Whitney & others developed interchangeable & precision-crafted parts that enabled large-scale production
The expansion of the availability of machines allowed the American Industrial Revolution to come of age. Remington rifles & Singer sowing machines became household names. American Mechanics & Technological Innovation
14. The I.R. changed the nature of work and workers lives.
Many American craft workers had developed an artisan republican ideology:
an ideology that celebrated small-scale producers, men & women who owned their own shops (or farms) & defined the ideal republican society as one constituted by, & dedicated to the welfare of, independent workers and citizens p. 280
Wage Workers & the Labor Movement
15. This artisan republican ideology was a collective identity based on the principals of liberty & equality. They saw themselves as the small-scale producers, equal to one another & free to work for themselves.
As the outwork and factory systems of mass production spread, more & more workers were taking jobs not as independent workers, but as dependent wage earners.
Some journeymen/workers formed unions & bargained with their employers, particularly with the hope & goal of establishing the ten-hour workday. Wage Workers & the Labor Movement
16. The Working Mens Party, founded in 1828 called for the abolition of banks, equal taxation, and a universal system of education.
By the mid-1830s, building-trades workers had won a ten-hour workday from many employers & from the federal gov.
Artisans whose occupations were threatened by industrialization (shoemakers, printers, etc.) were less successful & some left their employers & tried to set up specialized shops. Wage Workers & the Labor Movement
17. The new industrialized system divided the traditional artisan class into two groups:
1) self-employed craftsman
2) wage earning craftsman
Under English and American common law, it was illegal for workers to organize themselves for the purpose of raising wages because they prevented other workers from hiring themselves out for whatever wages they wished. Labor Divisions
18. In 1830, factory workers banded together to form the Mutual Benefit Society to seek higher pay & better conditions. In 1834, the National Trades Union was founded.
Union leaders devised a labor theory of value & organized strikes for higher wages; similar labor actions were taken by women textile workers. Labor Organizations
19. The belief that human labor produces value. Adherents argued that the price of a product should be determined not by the market (supply & demand) but by the amount of work required to make it, & that most of the price should be paid to the person who produced it. The idea was popularized by the National Trades Union & other labor leaders in the mid-19th century. Labor Theory of Value
20. By the 1850s, labor supply exceeded demand, & unemployment rose to 10%, resulting in a major recession & the Panic of 1857.
21. The National Railroad & other interregional government-funded highways were too slow to transport goods & crops efficiently.
Americans developed a water-borne transportation system of unprecedented size, beginning w/ the government-subsidized Erie Canal The Transportation Revolution
22. The canal had 3 strengths:
1) support of city merchants\
2) backing of the governor
3) gentle terrain of the land west of Albany
The EC altered the ecology & economy of the entire region
The EC brought prosperity to central & western NY, LINKED THE ECONOMIES of the NE & Midwest, & prompted a national canal boom.
The invention of the steam boat by Robert Fulton ensured the success of the waterborne transportation system. The Erie Canal
23. The nat. gov. played a key role in the creation of this integrated system of transportation & communication; the passage of the Post Office Act of 1792 allowed letters to be carried from one end of the country to the other & the Supreme Court encouraged interstate trade by striking down state restrictions on commerce in Gibbons v. Ogden (1824). Role of the Nat. Gov. in Transportation
24. The development of the railroad created ties between the Northeast & the Midwest, & by the 1850s railroads became the main carriers of freight.
The Railroad
25. By the 1830s Midwestern entrepreneurs were producing goods that vastly increased output:
1) John Deere plows
2) McCormick reapers
These replaced the ones Americans had been importing from Britain & the NE.
By 1847, entrepreneurs like Deere were creating factories that relied on mass production to manufacture their products. Mass Production
26. A system of factory production that often combines sophisticated machinery, a disciplined labor force, & assembly lines to turn out vast quantities of identical goods at low cost. In the 19th century, the textile & meatpacking industries pioneered mass production, which eventually became the standard mode of making consumer goods from cigarettes & automobiles to telephones, radios, televisions & computers. p.286 Mass Production
27. Southern investors concentrated their resources in cotton & slaves, preferring to buy manufactured goods from the NE & England.
The S. econ. Remained primarily agricultural & generated less per capita income for Southerners than did the more industrial N. economy. Southern Economy
28. Due to the expansion of industry & trade, the urban population grew 4x between 1820 & 1840.
The most rapid growth occurred in the new industrial towns that sprang up along the factory towns: Lowell, MA; Hartford, CT; Trenton, NJ; & Wilmington DE.
Western commercial cities (New Orleans, Pittsburgh, Cincinnati, Louisville) grew rapidly since their location was near areas that transferred goods from one mode of transportation to another. Growth of Cities & Towns
29. By 1860, the largest cities were New York, Philadelphia, St. Louis, & Chicago (in that order).
The old Atlantic seaports of Boston, Philadelphia, Baltimore, Charleston, & especially NYC remained important for their foreign commerce & increasingly as centers of finance & manufacturing.
NYs growth stemmed primarily from its control of foreign trade; by 1840 NY handled almost 2/3 of foreign imports & almost of foreign trade. Growth of Cities & Towns
30. The Industrial Revolution shattered the traditional rural order & created a society composed of distinct regions, classes, & cultures.
The Business Elite:
In the large cities the richest 1% of the population owned 40% of all property & a larger share of stocks/bonds. Property was taxed, but not stocks, bonds, inheritances were almost never.
The wealthiest families set themselves apart & many U.S. cities became segregated communities divided geographically along lines of class, race, and ethnicity continuing patterns that had already existed & that remain with us in contemporary society. Changes in Social Struture
31. A distinct middle-class culture emerged as per capita income of Americans rose 2.5% per yr. between 1830 & the Panic of 1857.
MC Americans secured material comfort for themselves & education for their kids, stressed discipline, morality, & hard work.
The business elite & MC celebrated work as the key to a higher standard of living for the nation & social mobility for the individual.
The ideal of the self made man became a central theme of American popular culture. The Middle Class
32. A 19th century ideal that celebrated men who rose to wealth or social prominence from humble origins through self-discipline, hard work, & temperate habits. (p. 289). self-made man
33. The bottom 10% of the labor force, casual workers, owned little or no property; their jobs were unpredictable, seasonal, & dangerous.
Other workers had greater job security, but few prospered; many families sent their kids out to work in factories, & the death of one parent often sent the family into dire poverty & suffering.
Over time, urban factory workers & unskilled laborers lived in well-defined neighborhoods of overcrowded boarding houses or tiny apartments, often with filthy conditions. Urban Workers & the Poor
34. During the 1820s Congregational & Presbyterian ministers (such as Lyman Beecher) linked w/ merchants & their wives to launch a program of social reform & regulation.
The so-called Benevolent Empire targeted drunkenness & other social ills, but it also set out to institutionalize charity & combat evil in a systematic fashion.
The perceived disorder & chaos of urban slums scared the middle & upper class, who profited from their labor but feared their potential power to disrupt society. The Benevolent Empire
35. Benevolent groups encouraged people to live well disciplined lives, & they established institutions to assist those in need & to control people who were perceived threats to society
Upper-class women were an important part of the BE through charitable org.
Some reformers believed that one of the greatest threats to morality was the decline of the traditional Sabbath.
Popular resistance or indifference limited the impact of the BE.
The Benevolent Empire
36. Presbyterian minister Charles Grandison Finney conducted emotional revivals that stressed conversion rather than instruction; Finneys ministry drew on & accelerated the Second Great Awakening.
Finneys message that man was able to choose salvation was particularly attractive to the middle class.
Finney sought to humble the pride of the rich & relieve the shame of the poor by celebrating their common fellowship in Jesus. Charles Finney: Revivalism & Reform
37. The business elite joined the Cold Water movement, establishing savings banks & Sunday schools for the poor & helping to provide relief for the unemployed.
The initiatives to create a harmonious community of morally disciplined Christians were not altogether effective:
* skilled workers argued for higher wages and living conditions more than sermons, prayers, and promises about the afterlife.
Finneys revivalism seldom attracted the poor, especially Irish Catholics. Revivalism & Reform
38. Revivalists from New England to the Midwest copied Finneys evangelical message & techniques & the movement swept through Pennsylvania, North Carolina, Tennessee, & Indiana.
The temperance movement proved to be the most effective arena for evangelical reform; the American Temperance Society (2000,000 strong) adapted methods that worked well in the revivals & helped the consumption of alcohol to fall dramatically. Revivalism & Reform
39. A long term series of activities by reform organizations to encourage individuals & governments to limit the consumptions of alcoholic beverages. Leading temperance groups include:
*the American Temperance Society (1830s)
*the Washington Association (1840s)
*Womens Christian Temperance Union of the late 19th century
*Alcoholics Anonymous (AA) from the 1930s to the present
Temperance/Temperance Movement
40. Evangelical reformers celebrated religion as the moral foundation of the American work ethic.
Religion & the ideology of social mobility held society together in the face of disarray created by :
1) the market economy
2) industrial enterprise
3) cultural diversity Revivalism & Reform
41. Between 1840 & 1860, millions of immigrants (Irish, Germans, Britons) poured into the U.S.
Most immigrants avoided the South due to their disgust for American slavery and/or fear of competing with slaves for labor
Most Germans went to states in the Midwest
Most Irish went to the Northeast & by 1860 were 1/3 of all white males.
The most prosperous immigrants were the British, followed by the Germans; the poorest were from Irelandfleeing the Potato famine. Immigration & Cultural Conflict
42. Many Germans & most Irish were Catholic, & they fueled the growth of the Catholic Church in America.
Because of the Protestant religious fervor stirred up by the 2nd Great Awakening, Catholic immigrants were met with widespread hostility
In 1834 Samuel F.B. Morse published Foreign Conspiracy against the Liberties of the United States, which warned of a Catholic threat to American republican institutions. (
Anti-Catholic sentiment led to mobs of unemployed workers during times of recessions that attacked Catholics, and w/ the rise of the Native American Clubs demanding limits on immigration. Anti-immigrant ideology would severely restrict a unified labor movement.
This cultural paranoia surrounding immigration will be a mainstay in American political culture, including the present. Catholic Increase & Hostility
43. Social reformers often supported the anti-Catholic movement because they wanted to prevent the diversion of tax resources to Catholic schools and targeted Irish men for being against temperance.
In most large northeastern cities, differences of class & culture led to violence & split the North, similar to the way that race & class divided the South. Catholic Increase & Hostility
44. The spread of industry & commerce created a class divided society that challenged the founders vision of an agricultural republic w/ few distinctions of wealth. p. 272
According to Ralph Waldo Emerson, The invasion of Nature by Trade w/ its money, its Credit, its Steam, [and] its Railroad threatens toestablish a new, universal monarchy.
Chapter 9 Review
45. Many praised the new ethic of business, profit, mass production, and industrialization that was sweeping the country.
As Francis Grund, a Europena immigrant stated, Business is the very soul of an American
The reorganization of work routines, factories, division of labor, interchangeable parts, repetition of tasks, exploitable cheap labor, and the construction of transportation routes, profoundly transformed the American landscape and the lives of American workers.
Chapter 9 Review
46. Samuel Slaters RI Clothing Factory (1790)
Francis Cabot Lowell
The Boston Manufacturing Company
The Waltham Factory & the Waltham plan
In 1825 (the year the Erie Canal was completed) Thomas Jefferson stated that our manufacturers are now very nearly on a footing w/ those of England. Although he envisioned an agrarian society he stated this with pride. Chapter 9 Review
47. Rise of Unions led to labor ideology of solidarity & the labor theory of value.
Strikes & marches led to the fight for higher wages, 10 hr. work day, and increased dignity and respect for working people who made significant contributions to the republic.
Although the first organized strike took place in 1828, in Paterson NJ, by child workers & by female workers in Dover, NH periodic downturns in the helped keep workers relatively dependent & passive until the 1850s. Chapter 9 Review
48. Robert Fulton, the Clermont
Erie Canal
Railroads
State & nat. gov. played key roles in the development of the interregional system of transportation/communication working through the Commonwealth system/& Henry Clays American Systemgov. funded the railroads & canals.
By facilitating the transport of Southern cotton, rice, & tobacco, the national system of commerce deepened the souths reliance on slavery & agriculture even as it helped diversify the economies of the Midwest & Northeast.
Chapter 9 Review: Transportation
49. Supreme Court Case: Gibbons v. Ogden (1824) encouraged interstate trade by striking down state restrictions on commerce. The Court voided a New York monopoly on steamboat travel into NYC, establishing the authority of the fed. gov. over interstate commerce.
Gibbons v. Ogden set the precedent that no local or state monopoliesor tariffswould impede the flow of goods, services, & news across the nations. Chapter 9 Review
50. By 1800 the top 10% owned 40% of the wealth
By 1860 the top 10% owned nearly 70%!
In NYC, Chicago, Baltimore, the top 1% owned 40% of the wealth.
Cities were transformed as the wealthy began living separately, attending separate churches, dressed differently, and many stopped socializing with those not of their class.
As immigrants pored into cities, they formed distinct districts that were divided by ethnicity, race, & class. Social Structure
51. Between wealthy merchants/factory owners and the propertyless wage workers, existed a growing middleclass.
The middleclass was a social byproduct of the Industrial & Market Revolutions. Social Structure
