THE RISE OF THE MARKET REVOLUTION ( )
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2 1776: British Economist Adam Smith outlined the Free Enterprise System by re-emphasizing the Three Laws of economics 1. The Law of Self Interest 2. The Law of Competition 3. The Law of Supply and Demand The Free Enterprise System evolved into Capitalism as State and Federal Governments began playing an important role in Regulating Businesses to protect workers and consumers
3 Late 1700 s: Most American s worked in or around the home as farmers or artisans in home based businesses Shoemakers Blacksmiths Furniture makers Dressmakers
4 or in Legal and Financial Professions Others were employed in the Shipping Industry
5 Between the late 1700 s and early 1800 s the first banks appeared in the United States : The First Bank of the United States : Second Bank of the United States By 1820: Banks existed in Twenty- Three States and Territories The majority of Banks were located in the Northern & Mid-Atlantic States
6 Banks increased business opportunities for Americans by providing capital in the form of loans These loans provided wealth that could be invested to produce new goods and services to Americans Although most American s preferred pure Gold, Silver, or Coins Most Banks issued Bank Notes to their customers (a piece of paper that banks issued instead of actual money)
7 Ultimately, Bank loans allowed investors to support the development of many new inventions: Textile Industry ( ) Military Weapons ( ) Transportation ( ) Agricultural Machinery ( ) Communication ( )
8 Textile Industry ( ) 1789: Samuel Slater built the first Water Frame in the United States 1793: Eli Whitney built a simple Cotton Gin to improve Cotton production 1814: Francis C. Lowell opened the first series of Textile Mills in Boston
9 Textile Industry ( ) 1846: Elias Howe developed the first Sewing Machine in the U.S. Military Weapons ( ) 1795: The Springfield Armory began producing the first U.S. made Musket
10 Military Weapons ( ) 1801: Eli Whitney introduced the use of interchangeable parts 1816: The U.S. Model 1816 flintlock musket began production at the Harper s Ferry Armory in Maryland
11 Military Weapons ( ) 1819: Thomas Blanchard developed a special lathe to mass produce rifle stocks 1836: Samuel Colt patented his first Colt Revolver 1842: U.S. Model 1842 Musket became first fully interchangeable parts weapon
12 1820: Congress authorized extending the National Road to Saint Louis, Missouri 1825: Congress authorized extending the National Road across the Mississippi River Transportation ( ) 1806: The Cumberland Road was first authorized by Pres. Thomas Jefferson : The road was constructed between Cumberland, Maryland and Wheeling, Virginia (West Virginia)
13 Transportation ( ) 1807: Robert Fulton and Robert Livingston built the 1 st steamboat the Clermont Sailing from New York to Albany in only 30 hours : The Erie Canal was constructed Traversing the 363 miles from Albany to Buffalo, New York Eventually extending into other states thru feeder canals
14 Transportation ( ) 1830: Industrialist Peter Cooper built the first steam locomotive in the U.S. called Tom Thumb : The Baltimore and Ohio Railroad was constructed Extending 379 miles from Baltimore, Maryland to Wheeling, Virginia (WV)
15 Agricultural Machinery ( ) 1819: Jethro Wood developed the Iron Blades Plow 1834: Cyrus McCormick patented the first Mechanical Reaper 1837: John Deere engineered a new steel bladed plow
16 Communication ( ) 1847: Samuel F. B. Morse patented the telegraph 1858: Cyrus W. Fields Atlantic Telegraph Co. laid telegraph cable across the Atlantic Ocean
17 New England Textile Mills (1830 s) Lowell s textile factories employed mostly young single farm girls (Lowell Girls) By the 1850 s, many were Irish Immigrants : New England Textile Mills increased production from 4 million to 323 million yards IMPACT OF THE TEXTILE INDUSTRY
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19 By the 1840 s: Manufacturing in New England became the backbone of the North s Economy
20 Textile Factories increased the demand for Cotton Cotton Gin helped increase Cotton production 1820 s 1860 s IMPACT OF THE TEXTILE INDUSTRY
21 By the 1850 s: Cotton was King of the Southern Economy : Cotton production went from $22 million to $200 million HOWEVER, IT CAME AT A PRICE! : Slave Labor increased from 698 thousand to over 3 million IMPACT OF THE TEXTILE INDUSTRY
22 Opened the interior to settlement Lowered Transportation costs Linked Western Farmers to Markets IMPACT OF TRANSPORTATION
23 Changes in Travel Times IMPACT OF TRANSPORTATION
24 Growth of Industrial Centers Increased Urbanization Major Transportation Hubs NEW YORK ST. LOUIS, MISSOURI CHICAGO, ILLINOIS IMPACT ON AMERICA S SOCIETY
25 IMPACT ON AMERICA S SOCIETY
26 Year Population Year Free Labor Slave Labor Total (Mil) million million million million million million million million ,330, ,000 (28%) 1, ,590, ,000 (32%) 2, ,185, ,000 (30%) 3, ,020,000 1,180,000 (28%) 4, ,180,000 1,480,000 (26%) 5, , 280,000 1,970,000 (23%) 8, ,770,000 2,340,000 (21%) 11,110 IMPACT ON AMERICA S SOCIETY
27 INDUSTRIALIZATION New Inventions Rise of Factories Increased Jobs More Production Wider Range of Goods Greater Distribution URBANIZATION Rise of Industry Increased Jobs Growth of Cities Greater Transportation Western Migration New Immigration Growth of Sectionalism and a Widening Gap in Society IMPACT ON AMERICA S SOCIETY
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