13 The Market Revolution and the Rise of Industrialism

1. America in 1800:  agricultural, isolated, often subsistence-oriented
2. Ingredients of a Market Industrial Revolution
   1. The “transportation revolution”

i.    War of 1812

Britain and France at war. Britain is worried about what their enemies are getting from trade and who they are trading with. US declares itself a neutral power, and can therefore trade with both countries, and stay out of the war (which has made its way to North America). British start seizing American ships as they approach French ports, forcing Americans to join the British navy. They can either join the navy or die.

1. British “impressments” and the Embargo Act (1807)

Jefferson’s Embargo Act declares that there will be no trading with anyone. He reasons that so many countries rely on American goods, that eventually Britain and France will feel the pressure and back off. Britain doesn’t really care.

1. Effects on US merchants

Trade in US comes to a grinding halt. Jefferson underestimated the effect. US has warehouses full of goods. Federalists, who are backbone of mercantilism, are really upset. Congress appeals Embargo Act.

1. Non-Intercourse Act (1809) and more impressments

US will trade with everyone else, but not Britain or France.

1. Rumors of British arming Indians for uprising
2. War begins – US wins

(1812) British invade and torch Washington DC. The British in trouble in Europe, and sign peace treaty (Treaty of Ghent) with US. In the battle of New Orleans, lead by Andrew Jackson, they defend New Orleans,  and defeat the British (neither side knew that the war was technically over). Federalists were against the war – pro British, threaten to secede from the union, and therefore viewed as traitors as a result. The (Federalist) party more or less ends.

ii.    The National Republican and “infrastructure” improvements

Transportation is a major problem in the US. Many Americans feel that the Federal government needs to invest in improvement. Roads aren’t that great, need new road ways, and lots of canals. “The American System”

 

Canals are good for moving troops and supplies during war but also for trade and commerce.  They connect several cities, inland to port (Erie canal – Buffalo to Albany, down the Hudson river, to New York City. Eventually Louiville KY to NYC).

 

Paid for by new tariffs (tax on imported goods), which leads to drastic expansion of the system.

 

The canals also Improve communication (beginning of stock exchange – trading prices).

 

Other advances to come, emergence of telegraph and railroad.

1. Farmers now have access to national markets, give rise to “commercial agriculture”

Farmers benefit the most from these transportation changes. They change their approach: they grow more because they know they can sell it through transportation pathways. They become capitalist farmers. Lots of new farmers in Ohio River valley, etc.

1. Technology: steam engines, railroads, steamboats dams and water powered mills, lathes, grinders, interchangeable parts, etc.

Steam boats can travel upstream, majorly effects the American economy.

1. New business practices

i.    The “corporation”

New emerging corporations in the US start selling stock, and spreading out liability. New regulations for corporations: they must be authorized by government (federal and state), must be “for the public good”. Most of these corporations are selling stock to try to spread out liability, not focused on making a ton of profit.

ii.    Making the law “industrial-friendly.

The government gets rid of the authorization; corporations now just have to pay a fee. The public good requirement gets scrapped. They pass many laws that protect businesses; individuals don’t have a lot of options to challenge businesses (restricted ability to strike).

1. Immigration

1821-1849, 750000 immigrants come to the US 40-60, 4 million. Most immigrants are from England, Germany, and especially Ireland (44% Irish). There are so many Irish immigrants because of the Irish potato famine, as well as English colonial government in Ireland. They head to the cities. 1815 NYC – population: 25000, 1840 NYC – population: 400,000, 1890- population: over a million.

i.    The Irish as a cheap labor pool

The Irish immigrants to the US are very poor, and have bad living conditions. Americans don’t like the Irish because of economic competition, their religion (Catholic),and  maybe trying to take over the government. Irish are considered only slightly above African Americans socially/economically.

1. Results of new Industrialism
   1. The Good

i.    New economic options for farmers on poor, shrinking land base.

There are many new work opportunities for people who don’t have land.

ii.    Opportunities for single women

Previously living at home, mill towns emerge expressly for mills that draw on female work source. Farm girls from age 9 to 20, provided with housing, and have a house mother who over sees the women with highly regulated daily schedules. Concept of time becomes important.

iii.    Increased standards of living and the “middle class”

Better quality of life, house upgrades, people eating better.

1. The Bad

i.    “the cult of female domesticity”

Restricting role of “proper women”. Women should stay at home, not work. The women who work become shut off from society.

ii.    Working conditions

Women missing fingers and limbs, hair getting caught on looms, 14-16 hour days, children from the age of 9 working (dying from over work and inappropriate work), decreasing wages, must pay rent, factories not properly filtering (coal smoke) and resulting health issues.

1. Response: worker’s unions
   1. Factory Girl Association (1834)

Lowell, MA – 10 hour work day, 60 hour work week. NH and PA pass 10 hour work day.

1. Female Labor Reform Association (1845)

Trying to get the government to regulate safety standard of the factories (limited success).

 

State militia break up strikes. Protesting women get fired, replaced with Irish workers. Begins to look like European mills and factories.

iii.    Feeling Threatened: Artisans and Agrarians

1. Artisans: fear of being outsold, degradation of craft

Mass production costs less. Form artisan unions, National Trade Union (protection from competition). Pro business government is not sympathetic to the artisans.

1. Agrarians: loss of control over work life, decline of “agrarian virtues,” mistrust of “elites”

Face of the Anti-federalists (not commercial farmers). Dependant on the weather, felt they were more honest, true and virtuous. Distrusted industry, thought it was immoral. Liked their independence, did not want protection from the government (subsidies), afraid for the moral future of the US. Start looking for people who represent their interests politically (Andrew Jackson).  Jackson is the man of less government, of the people. Wants to get rid of the US bank.