The Market Revolution

1820-1860

What are we talking about?

Major economic transformation

Expansion of people producing for the market Changing WHAT they are producing and HOW

they are producing

Completely new mindset REVOLUTIONARY!!

Factors Leading to the Market Revolution Specialization of Labor Early Industrialization Transportation & Communication Revolution Westward Expansion Rise of the Cotton Kingdom Immigration & Migration Government Support for Business

Specialization of Labor

What is “outwork”?

What is the “factory system”?

Lowell/Waltham Mills

Samuel Slater(“Father of the Factory

System”)

Samuel Slater(“Father of the Factory

System”)

The Lowell/Waltham System:

First Dual-Purpose Textile Plant

The Lowell/Waltham System:

First Dual-Purpose Textile Plant

Francis Cabot Lowell’s town - 1814Francis Cabot Lowell’s town - 1814

Lowell in 1850Lowell in 1850

Lowell MillLowell Mill

Early Textile Mill Loom FloorEarly Textile Mill Loom Floor

Early Textile LoomEarly Textile Loom

Early Industrialization

Begins in England as early as 1780s

Really underway in US by 1790s, but doesn’t really start to grow until early 1800s

MECHANIZATION STANDARDIZATION INTERCHANGABLE PARTS

New EnglandTextile

Centers:

1830s

New EnglandTextile

Centers:

1830s

New England Dominance in Textiles

New England Dominance in Textiles

Starting for LowellStarting for Lowell

Lowell GirlsLowell Girls

What was their typical What was their typical “profile?”“profile?”

Lowell Boarding HousesLowell Boarding Houses

What was boardinghouse life What was boardinghouse life like?like?

Eli Whitney’s Cotton Gin, 1791

Eli Whitney’s Cotton Gin, 1791

Actually Actually invented by a invented by a

slave!slave!

Eli Whitney’s Gun FactoryEli Whitney’s Gun Factory

Interchangeable Parts RifleInterchangeable Parts Rifle

Elias Howe & Isaac SingerElias Howe & Isaac Singer

1840s1840sSewing MachineSewing Machine

John Deere & the Steel Plow(1837)

John Deere & the Steel Plow(1837)

Cyrus McCormick& the Mechanical Reaper:

1831

Cyrus McCormick& the Mechanical Reaper:

1831

Transportation & Communication Revolution

Cumberland (National Road), 1811

Cumberland (National Road), 1811

Conestoga Covered WagonsConestoga Covered Wagons

Conestoga Trail, 1820sConestoga Trail, 1820s

Erie Canal SystemErie Canal System

Erie Canal, 1820sErie Canal, 1820s

Begun in 1817; completed in 1825Begun in 1817; completed in 1825

Robert Fulton & the Steamboat

Robert Fulton & the Steamboat

1807: The 1807: The ClermontClermont

Principal Canals in 1840Principal Canals in 1840

Inland Freight RatesInland Freight Rates

Clipper ShipsClipper Ships

OliverEvansOliverEvans

First prototype of the First prototype of the locomotivelocomotive

First automated First automated flour millflour mill

The “Iron Horse” Wins! (1830)The “Iron Horse” Wins! (1830)

1830 1830 13 miles of track built by Baltimore & 13 miles of track built by Baltimore & Ohio RROhio RR

By 1850 By 1850 9000 mi. of RR track [1860 9000 mi. of RR track [1860 31,000 31,000 mi.]mi.]

TheRailroad

Revolution,1850s

TheRailroad

Revolution,1850s

Immigrant laborImmigrant laborbuilt the No. built the No. RRs.RRs.

Slave laborSlave laborbuilt the So. built the So. RRs. RRs.

Samuel F. B. MorseSamuel F. B. Morse

1840 – Telegraph1840 – Telegraph

Cyrus Field & the Transatlantic Cable,

1858

Cyrus Field & the Transatlantic Cable,

1858

Westward Expansion

Doors opened by removal of Indians & new transportation, communication

Streams of migration From lower south From upper south From New England

Opens up access to new resources Cheap land huge pull factors for immigrants

Rise of the Cotton Kingdom

Contributing factors: Industrial demand for cotton (1st in UK, then in US) Opening of Deep South to new settlement

Some consequences: Further pushes regional economic specialization Revitalizes slavery Growth of domestic slave trade

Eli Whitney’s Cotton Gin, 1791

Eli Whitney’s Cotton Gin, 1791

Actually Actually invented by a invented by a

slave!slave!

Immigration & Migration

ImmigrationImmigration

1840s – Irish1850s -- German

Pull factors Relatively cheap land Access to jobs Quicker long-distance

travel Political freedoms

Push factors Political unrest Famine Lack of economic

opportunity

Internal MigrationInternal Migration

Gradual shift from countryside to cities

People in cities moved more frequently

National Origin of Immigrants:1820 - 1860

National Origin of Immigrants:1820 - 1860

Why now?Why now?

Government Support for Business Gov’t NOT actively involved in economy Laissez-faire policies mostly

BUT Development of private corporations Severely limited gov’t investment in business State gov’ts active in improving transportation infrastructure Support competition & private property (court cases) Criminalize strikes (supportive of employers)

Protective tariffs in 1816, 1824, 1828

Creating a Business-Friendly Climate

Creating a Business-Friendly ClimateSupreme Court Rulings:Supreme Court Rulings:

** Fletcher v. PeckFletcher v. Peck (1810) (1810) ** Dartmouth v. WoodwardDartmouth v. Woodward (1819)(1819) ** McCulloch v. MarylandMcCulloch v. Maryland (1819) (1819) ** Gibbons v. OgdenGibbons v. Ogden (1824) (1824) ** Charles Rivers Bridge v. Charles Rivers Bridge v. WarrenWarren Bridge Bridge (1835) (1835)General Incorporation Law General Incorporation Law passedpassed in New York, 1848. in New York, 1848.Laissez faire Laissez faire BUT, govt. did muchBUT, govt. did much to assist capitalism! to assist capitalism!

Outcomes of these Changes

Rapid Economic Growth Periods of Boom & Bust Urbanization/Growth of Cities Changes in Labor Beginnings of Organized Labor Rise of Nativism Commercialization of farming in NW Social/Cultural Responses

Rapid Economic Growth

Regional SpecializationRegional Specialization

EAST EAST IndustrialIndustrial

SOUTH SOUTH Cotton & SlaveryCotton & Slavery

WEST WEST The Nation’s The Nation’s “Breadbasket”“Breadbasket”

Periods of Boom & Bust

Boom/Bust Cycles: 1790-1860Boom/Bust Cycles: 1790-1860

The blue line shows, for comparison, the The blue line shows, for comparison, the price of a year’s tuition at Harvard price of a year’s tuition at Harvard College. In 1790 it was $24, but by 1860 College. In 1790 it was $24, but by 1860 had risen to $104.had risen to $104.

Urbanization/Growth of Cities

American Population Centers in 1820

American Population Centers in 1820

American Population Centers in 1860

American Population Centers in 1860

Changes in Labor

Decline in artisan tradition Workers have less autonomy over their labor Subdivision of tasks More supervision

Sharpening of line between work time & leisure time Shift from labor’s “price” to labor’s “wage”

Some aversion to wage labor Women at Lowell (replaced eventually by cheaper

immigrant labor)

Beginnings of Organized Labor

The Early Union MovementThe Early Union Movement

Workingman’s Party Workingman’s Party (1829)(1829) ** Founded by Robert Dale Owen Founded by Robert Dale Owen and and others in New York City. others in New York City.Early unions were usually local, Early unions were usually local, social, and weak.social, and weak.

Commonwealth v. HuntCommonwealth v. Hunt (1842).(1842).

Worker political parties were Worker political parties were ineffective until the post-Civil ineffective until the post-Civil War period.War period.

Rise of Nativism

Part of ongoing story of anxiety over new groups of immigrants

Some fears of immigrants as “subversives” Against democratic ideas

Anti-immigrant riots & political campaigns

Irish Immigrant Girls at LowellIrish Immigrant Girls at Lowell

American View of the Irish Immigrant

American View of the Irish Immigrant

Know-Nothing Party:

“The Supreme

Order of the Star-

Spangled Banner”

Know-Nothing Party:

“The Supreme

Order of the Star-

Spangled Banner”

Commercialization of Farming in NW Beginning to think more about the market More crop specialization

Pushed by growth of Eastern markets Transportation networks Availability of credit Improved farm machinery (esp. after 1840s)

Social/Cultural Responses

Changes in Social Structure

Changing Occupation Distributions:1820 - 1860

Changing Occupation Distributions:1820 - 1860

Distribution of WealthDistribution of Wealthv During the American During the American

Revolution,Revolution,45% of all wealth in the top 45% of all wealth in the top 10% of10% ofthe population.the population.

v 1845 Boston 1845 Boston top 4% owned top 4% owned overover 65% of the wealth. 65% of the wealth.v 1860 Philadelphia 1860 Philadelphia top 1% top 1% ownedowned over 50% of the wealth. over 50% of the wealth.v The gap between rich and poor The gap between rich and poor waswas widening! widening!

Polarization of Wealth in the 20c

Polarization of Wealth in the 20c

z They all regarded material They all regarded material advance as the natural fruit of advance as the natural fruit of American republicanism & proof American republicanism & proof of the country’s virtue and of the country’s virtue and promise.promise.

The “American Dream”The “American Dream”

A German visitor in the 1840s, A German visitor in the 1840s, Friedrich List, observed:Friedrich List, observed:

Anything new is quickly introduced Anything new is quickly introduced here, including all of the latest here, including all of the latest inventions. There is no clinging to inventions. There is no clinging to old ways. The moment an old ways. The moment an American hears the word American hears the word “invention,” he pricks up his ears.“invention,” he pricks up his ears.

Who are the Beneficiaries?