ECOnOmIC anD SOCIal ChanGES Quiz

PDF page 522: The end of the war seemed almost a cathartic moment for the nation. The squabbles with Britain that had dominated the landscape for so long were now over. A new national bank was in place, and Americans could look within their own borders for consumer goods and necessities. Trade with foreign nations was a luxury Americans could enjoy but did not need to depend on any longer. The United States was ready to enter a new phase of history, one in which it would truly stand on its own feet. The war changed political opinions as well. Madison and many members of his party realized that some national institutions in the Federalist style were necessary to build a nation, even if such institutions were not in keeping with the traditional principles of the Republicans. A new national bank, tariffs to protect American industry, and a standing professional army and navy able to defend the nation when needed were all ideas Madison now embraced. The American people thus experienced the market revolution in the early nineteenth century as the nation transitioned from home production to factory production. During this period, traditional controls over production, distribution, and exchange gave way to market transactions. Supply, demand, and price became far more important in economic transactions than did social relationships. In the colonial period, emotional attachments often dictated economic transactions. As historian John Lauritz Larson notes, “who you were, where you were, and what you were” shaped “how you bought, sold, and prospered.” In the nineteenth century, customary social practices did not play a role in economic transactions. In essence, “money alone mobilized goods and people” in a system of anonymous transactions. Individuals’ good names came from their willingness to honor

PDF page 522: The end of the war seemed almost a cathartic moment for the nation. The squabbles with Britain that had dominated the landscape for so long were now over. A new national bank was in place, and Americans could look within their own borders for consumer goods and necessities. Trade with foreign nations was a luxury Americans could enjoy but did not need to depend on any longer. The United States was ready to enter a new phase of history, one in which it would truly stand on its own feet. The war changed political opinions as well. Madison and many members of his party realized that some national institutions in the Federalist style were necessary to build a nation, even if such institutions were not in keeping with the traditional principles of the Republicans. A new national bank, tariffs to protect American industry, and a standing professional army and navy able to defend the nation when needed were all ideas Madison now embraced. The American people thus experienced the market revolution in the early nineteenth century as the nation transitioned from home production to factory production. During this period, traditional controls over production, distribution, and exchange gave way to market transactions. Supply, demand, and price became far more important in economic transactions than did social relationships. In the colonial period, emotional attachments often dictated economic transactions. As historian John Lauritz Larson notes, “who you were, where you were, and what you were” shaped “how you bought, sold, and prospered.” In the nineteenth century, customary social practices did not play a role in economic transactions. In essence, “money alone mobilized goods and people” in a system of anonymous transactions. Individuals’ good names came from their willingness to honor

PDF page 522: The end of the war seemed almost a cathartic moment for the nation. The squabbles with Britain that had dominated the landscape for so long were now over. A new national bank was in place, and Americans could look within their own borders for consumer goods and necessities. Trade with foreign nations was a luxury Americans could enjoy but did not need to depend on any longer. The United States was ready to enter a new phase of history, one in which it would truly stand on its own feet. The war changed political opinions as well. Madison and many members of his party realized that some national institutions in the Federalist style were necessary to build a nation, even if such institutions were not in keeping with the traditional principles of the Republicans. A new national bank, tariffs to protect American industry, and a standing professional army and navy able to defend the nation when needed were all ideas Madison now embraced. The American people thus experienced the market revolution in the early nineteenth century as the nation transitioned from home production to factory production. During this period, traditional controls over production, distribution, and exchange gave way to market transactions. Supply, demand, and price became far more important in economic transactions than did social relationships. In the colonial period, emotional attachments often dictated economic transactions. As historian John Lauritz Larson notes, “who you were, where you were, and what you were” shaped “how you bought, sold, and prospered.” In the nineteenth century, customary social practices did not play a role in economic transactions. In essence, “money alone mobilized goods and people” in a system of anonymous transactions. Individuals’ good names came from their willingness to honor

PDF page 522: their contracts. On the positive side, these changes encouraged greater mobility among the American people. Increasingly, they spread into the territory beyond the Appalachian Mountains in an attempt to better their social and economic position. Throughout the Old Northwest and the Old Southwest, settlers staked claim to land and put that land into production, thereby providing raw materials for the increasing number of factories in the Northeast. The social changes that occurred also prompted political changes as states throughout the country moved toward universal white male suffrage. On the negative side, when a pioneer’s wife gave up spinning in the home, he needed to produce more cash crops to purchase cloth, or when a slaveholder moved west, the demands on those slaves often increased. Meanwhile, as more young men and women took positions in workshops and factories, they found themselves working for wages for most of their lives. Lastly, greater

PDF page 522: their contracts. On the positive side, these changes encouraged greater mobility among the American people. Increasingly, they spread into the territory beyond the Appalachian Mountains in an attempt to better their social and economic position. Throughout the Old Northwest and the Old Southwest, settlers staked claim to land and put that land into production, thereby providing raw materials for the increasing number of factories in the Northeast. The social changes that occurred also prompted political changes as states throughout the country moved toward universal white male suffrage. On the negative side, when a pioneer’s wife gave up spinning in the home, he needed to produce more cash crops to purchase cloth, or when a slaveholder moved west, the demands on those slaves often increased. Meanwhile, as more young men and women took positions in workshops and factories, they found themselves working for wages for most of their lives. Lastly, greater

PDF page 522: The end of the war seemed almost a cathartic moment for the nation. The squabbles with Britain that had dominated the landscape for so long were now over. A new national bank was in place, and Americans could look within their own borders for consumer goods and necessities. Trade with foreign nations was a luxury Americans could enjoy but did not need to depend on any longer. The United States was ready to enter a new phase of history, one in which it would truly stand on its own feet. The war changed political opinions as well. Madison and many members of his party realized that some national institutions in the Federalist style were necessary to build a nation, even if such institutions were not in keeping with the traditional principles of the Republicans. A new national bank, tariffs to protect American industry, and a standing professional army and navy able to defend the nation when needed were all ideas Madison now embraced. The American people thus experienced the market revolution in the early nineteenth century as the nation transitioned from home production to factory production. During this period, traditional controls over production, distribution, and exchange gave way to market transactions. Supply, demand, and price became far more important in economic transactions than did social relationships. In the colonial period, emotional attachments often dictated economic transactions. As historian John Lauritz Larson notes, “who you were, where you were, and what you were” shaped “how you bought, sold, and prospered.” In the nineteenth century, customary social practices did not play a role in economic transactions. In essence, “money alone mobilized goods and people” in a system of anonymous transactions. Individuals’ good names came from their willingness to honor

PDF page 523: settlement in less populated regions caused problems between the settlers and the Indians living on the land. Because expansion was considered vital to the interests of the country, the Indians’ rights to land were seen as an

PDF page 523: The market revolution largely stemmed from an availability of resources. As the United States acquired more territory, like the Louisiana Purchase, it attained more natural resources and land to produce raw materials. As the nation’s population increased, it gained more workers and ultimately more consumers. American entrepreneurs also had access to monetary resources; in other words, they found investors willing to support their new businesses. Furthermore, recognizing the importance of transportation and communication to economic growth, state governments supported internal improvement projects. At the same time, the market revolution occurred because the American people largely embraced the changes. They willingly pulled up stakes and ventured into new regions. They also possessed a spirit of enterprise that spurred the expansion of transportation and industry. And more unfortunately, they seemed content in many cases to exploit

PDF page 523: The market revolution largely stemmed from an availability of resources. As the United States acquired more territory, like the Louisiana Purchase, it attained more natural resources and land to produce raw materials. As the nation’s population increased, it gained more workers and ultimately more consumers. American entrepreneurs also had access to monetary resources; in other words, they found investors willing to support their new businesses. Furthermore, recognizing the importance of transportation and communication to economic growth, state governments supported internal improvement projects. At the same time, the market revolution occurred because the American people largely embraced the changes. They willingly pulled up stakes and ventured into new regions. They also possessed a spirit of enterprise that spurred the expansion of transportation and industry. And more unfortunately, they seemed content in many cases to exploit

PDF page 523: workers—slave or free—to bring their economic vision to life. Prior to the War of 1812, the United States exported raw materials such as cotton and tobacco, and imported manufactured goods such as cotton fabric and fine smoking tobacco. Thomas Jefferson had attempted to use the need for the exports to put economic pressure on Britain and France, with disastrous economic results for the United States. During the war, exports were not essential for either European nation, so the farmers continued to suffer financially. Buyers in England and France were forced to look for new sources of raw materials, and American farmers needed to find new buyers for their produce. After the war, industrialization was on the rise in the United States, creating homegrown markets for raw materials and a new American source for quality manufactured goods for American consumers. The Northeast became the manufacturing center of the country with many factories and mills located there. The earliest mills depended on reliable sources of water power, on rivers flowing with enough force to turn the water wheels that in turn powered the machinery. The advent of steam broke the bonds tying the mills to the rivers and instead bound them to any

PDF page 523: workers—slave or free—to bring their economic vision to life. Prior to the War of 1812, the United States exported raw materials such as cotton and tobacco, and imported manufactured goods such as cotton fabric and fine smoking tobacco. Thomas Jefferson had attempted to use the need for the exports to put economic pressure on Britain and France, with disastrous economic results for the United States. During the war, exports were not essential for either European nation, so the farmers continued to suffer financially. Buyers in England and France were forced to look for new sources of raw materials, and American farmers needed to find new buyers for their produce. After the war, industrialization was on the rise in the United States, creating homegrown markets for raw materials and a new American source for quality manufactured goods for American consumers. The Northeast became the manufacturing center of the country with many factories and mills located there. The earliest mills depended on reliable sources of water power, on rivers flowing with enough force to turn the water wheels that in turn powered the machinery. The advent of steam broke the bonds tying the mills to the rivers and instead bound them to any

PDF page 523: site of water and coal. Good transportation was needed to move the raw materials to the mills and factories and the manufactured goods out to the shops for sale, as well as to connect the agricultural regions of the nation with the manufacturing region. Transportation was also important for the expansion of the nation.

PDF page 524: Between 1816 and 1821, six new states joined the Union: Indiana, Mississippi, Illinois, Alabama, Maine, and Missouri. Before the War of 1812, there were roads, often old Indian trails that had been widened but not paved, and a few canals. There were also ships that would sail up passable rivers and around the coast, yet overall traveling was inefficient and quite expensive. According to some estimates, it cost as much to ship a ton of material thirty

PDF page 524: miles overland in the United States as it did to ship that material to Europe. Problems moving goods and people especially during the war prompted American leaders to support improvements. State governments helped to build turnpikes by chartering private corporations and granting them the exclusive right to construct a road. Then they would invest some state money in the corporation’s securities; the rest of the money came from private stockholders. The number of investors in these projects, according to historian Daniel Walker Howe, showed “the extent of grass-roots enthusiasm for improved transportation.” Given the slow pace of travel on these roads, people also clamored for other forms of transportation. Many northern states turned to extending their canal system. In 1817, the New York legislature decided to support the construction of the Erie Canal—a forty-foot-wide canal with a twentyfoot-wide towpath. When it opened in 1825, the canal stretched 363 miles from Buffalo on Lake Erie to Albany on the Hudson River and connected the Northwestern territories to global markets. Moreover, it made the state a good deal of money. Robert Fulton’s invention of the steam engine in 1807 made steamboats and later railroads possible. Steam allowed boats to navigate up rivers as well as down rivers. Flat-bottom paddleboats became especially important for travel on the Mississippi River, thereby allowing the Southwestern territories access to global markets as well. Ultimately, canals, steamboats, and railroads improved the comfort and speed of travel