History Lecture 10 24 2013 The Market Revolution Key Terms Monroe Doctrine American System Erie Canal James Monroe 1817 1825 Term referred to as the Era of Good Feelings With the Federalist Party no longer in play there is a decrease in partisan bickering o The Democratic Republican Party was the only active party Major accomplishments o Adams Onis Treaty 1819 Secured the purchase of Florida from Spain Spain was willing to sell because their colonial possessions were waging battles for independence This was costly so they saved money by selling o Monroe Doctrine 1823 Expressed three main principles 1 The U S would oppose any further efforts at colonization by European powers in the Americas 2 The U S would abstain from involvement in the wars in Europe 3 Monroe warned European powers to not interfere with the newly independent states in Latin America Significant because this a powerful statement of U S power on a global scale It s likely this doctrine was fuelled by economic reason and wanted to replace Europe with themselves as their most important trading partner thus bolstering the American economy Life prior to the Market Revolution The vast majority of Americans were employed in agriculture 71 in 1821 Manufacturing done by hand in homes often by artisans Most farmers were self sufficient Transporting goods was time consuming and expensive The Market Revolution Refers to the dramatic economic transformations which took place in the early 19 th century Within this new economy we see o Factories with wage labourers replacing artisans o Emergence of merchant capitalists stores et cetera o Specialized farming replacing self sufficiency Population Growth American System 1820 1860 the U S population grew an average of 35 per decade Between 1840 1860 about 4 million immigrants came to the United States Mostly Irish and Germans The Irish came during the time of the Potato Famine James Madison s plan for economic development in 1815 People wanted a more federally centralized economy Henry Clay was the one who actually constructed the system Called for three main points o A new national bank o A tariff on imported goods In hope to spark U S goods for cheaper o Federal financing of roads and canals Towards the end of his term he backed of this point Erie Canal Opened in 1825 Connects the Great Lakes to the Hudson River NYC 363 miles long Not funded by the federal government but instead by the New York State government Significant because o It enables farmers in the Midwest close to the Great Lakes to transport their goods to New York City o The Erie Canal is fundamental to the growth of the New York City economy o It was largely successful and spurred other states to invest in similar improvements By 1837 the US had built over 3 000 miles of canals Railroads By 1860 the U S had over 30 000 miles of railroad Origins of Industrialisation in the U S Contributing factors to industrialization War of 1812 Jefferson s Embargo of 1807 o During the time of high tensions between Britain and the U S o Boycott of British goods sparked some small industry in the U S o Disrupted flow of goods imported Tariff of 1816 o Jumpstarted Americans into producing goods instead of importing due to expense Outwork System The Textile Industry Textile mills developed in New England beginning in 1814 Its development was facilitated by improvements in transportation Created interdependence between the industrial North cotton producing South and the agrarian West How the market revolution impacted everyday peoples lives Artisans lost a great deal of autonomy o There is an increase in oversight over their work o Increase in division of labour o Time clocks o Decreasing likelihood of becoming a master artisan Decline in republicanism rise in popular democracy o In the election of 1824 all but six states chose presidential electors by popular vote o Many states had dispelled property qualifications on voting rights A revolution in communication changed the ways in which elections were conducted o More printed materials were used presidential songs etc The Four candidates of the 1824 election all were Democratic Republicans William H Crawford of Georgia John Quincy Adams favourite of New England of Massachusetts Henry Clay of Kentucky Andrew Jackson of Tennessee Result No candidate won a majority of the electoral votes Winner decided by the House of Representatives o Decided on Adams which enraged Jackson Jackson referred to the decision as a corrupt bargain Conclusion The irony of the market revolution The new market economy promised opportunity for everyone but it resulted in increased inequality in wealth distribution The nation was bound together through creating economic interdependence but these bonds rested upon regional specializations