THE MARKET REVOLUTION

development of the market economy

• defined by westward expansion

• tied into the transition from the First to the Second Party System

  • First Party System

    • Federalists

    • Democratic-Republicans

      • a.k.a. Jeffersonian Republicans or Republicans

  • transition marked by

    • decline of the Federalist Party

    • acceptance of certain Federalist ideas by a number of Democratic-Republicans, including Presidents Madison(1809-17) and Monroe(1817-25)

      • protective tariffs

        • 1816 Tariff Act

      • a second national bank

        • chartered by Congress in 1816 for 20 years

        • First Bank of the U.S.(1791-1811)

westward expansion of the market economy facilitated by internal improvements

• canals

  • *Erie Canal

    • completed 1825

    • connected Albany and the Hudson River to Lake Erie

    • secured New York City's position as the nation's preeminent commercial city

• roads

  • *National Road(initially known as the Cumberland Road)

    • construction, 1811-38

    • construction suspended 1818-25

    • ran from Cumberland, MD to Vandalia, IL

    • supplanted in the 20th century by U.S. Route 40

• navigable rivers

• railroads

the North's economy

• agriculture preeminent

  • production of cereal crops, fruits, and vegetables

  • gradual westward shift of "bread basket"

• industrialization of manufacturing

  • outgrowth of Industrial Revolution

  • defined by factory production of standardized products w/ interchangeable parts

  • artisans supplanted factory workers

  • textile manufacturing

    • leading industry before the Civil War

    • centered in New England and the Middle Atlantic states

      • *Lowell, Massachusetts

• urbanization

• free labor dominant

the South's economy

• overwhelmingly agricultural

  • cash crops dominant in the market economy

    • *cotton, particularly "short staple" cotton

      • made profitable by cotton gin

      • fostered westward expansion from Georgia to Texas

      • labor intensive, it encouraged the growth of slavery

• *chattel slavery

  • slaves considered property

  • element of the South's plantation-oriented, cash crop agriculture

• less oriented than the North's economy toward...

  • construction of roads and railroads for trade

  • urbanization