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Industry & Commerce 1800-1860 1830’s - Development of Market Economy The Early Market • Decline of traditional subsistence agriculture Revolution Mechanization Predominance of Cash & Invention (rise of wage labor) AP United States History The Market Economic Specialization Growth Economy Onset of “Boom & Bust” Cycle Industry & Commerce Industry & Commerce 1800-1860 1800-1860Prosperity “Boom & Bust” Prosperity Regional Specialization Cycle North: Industry & Finance South: Plantation & Cotton Production Contraction Expansion West: Commercial Farming Recession Northern domination & development of East - West transportation network Speculation → bank collapses Depression Bankrupcies → unemployment Internal Improvements Erie Canal – 363 Miles long; 4 feet deep Buffalo to New York – 10 Days 1
Old Road Tom Thumb Locomotive : Illustration of a Race Between a Locomotive and a Horse-Drawn Car (1830) Industry & Commerce 1800-1860• Significant impact of Railroads on the economy – increased agricultural development in West • aided by John Deere’s steel plow & McCormick reaper – benefited cities; especially Chicago – stimulated the iron industry & banking – economic linking of N & W 2
Industry & Commerce 1800-1860 Foreign Trade• Generally a net importer (exporter of raw materials)• Whaling• The Clipper Ship: only 3 months to CA• Steam Ships: eclipsed clipper ships & lowered shipping rates (Cunard Lines) Industry & Commerce 1800-1860 The Growth of Northern Industry • Rapid expansion • The factory system(Lowell System) – Textile mills created ‘ready to wear’ – Brooks Brothers 1818 • Importance of PA coal • Numerous invention World’s Largest Steam Boat, the American Queen – Street car; sewing machine; yale locks, safety pin New Orleans to Louisville – One week (previously three months) 1000 accidents 1811-1850 (30% of total number of boats • Increased incorporation 57% snags; 21% explosion; 17% fire…) • Still agriculture dominated 3
Industry & Commerce 1800-1860 Federal Aid for the Development of the Market Economy• Post Offices & Telegraphs (S. Morse 1844)• Patent Law• Internal Improvements• Judiciary (Commerce Clause) – Charles River Bridge v. Warren Bridge • Did a corporate charter imply a monopoly?• Corporations (Limited Liability) 4