1. Chapter 8-The Market
Revolution

2. Objectives
 By the end of today’s class, you should be able to:
-Describe the role of the bank and how it lead to
economic growth.
-Compare/contrast the economies of the North versus the
South.

3. Chapter 8 Section 1
A Market Economy
 After the War of 1812 the American economy soared.
Known as Market Revolution (change in the way Americans
made, bought, or sold goods)
 Changes in the Market Revolution are based on a free
enterprise system (system in which companies compete for
profits)
 Rewarded people for finding better, faster, and more efficient
ways of running their business.

4. Economic Growth of Banks
 Financial institutions played a big role in the expansion of
manufacturing and commerce.
 Banks provided capital, or wealth that can be invested to
produce goods and make money. People deal in coin, most
common form of money: bank notes (checks)
 Problems with Banks: Uncontrolled Lending-States did not
restrict how much money a bank kept. Banks made bad
loans, people couldn’t pay bank back.

5. Panic of 1819
 As early as 1814, Thomas Jefferson had warned “We
are ruined by paper. We are under a bank bubble that
would soon burst.”
 Formation of a Second Bank was supposed to steady
the economy. Yet lead to the first major Depression in
the US.
 “Era of Good Feelings” reflects the growing feelings of
national unity. Yet, a severe economic depression
between 1819-1822 called into question banks/tariffs.

6. Panic of 1819
 Causes: Dramatic decline in cotton prices, an 1817
Congressional order requiring “hard-currency”
payments for land, and closing of factories due to
foreign competition.
 It was an era of bad loans/embezzlement. European
demands for goods like cotton and tobacco increased.
 Now, credit is unavailable to most, big cities suffer,
farmers suffer, banks fail, sale of land plummet, and
unemployment rises. Leads to a mistrust of bankers,
bankers, and paper money.

7. Economy of the North
 Northwest: Farming- What was produced is shipped to
England.
 Northeast: Industry-With industry, there is a shift to cities.
We see a growth of cities, which leads to an increase in
tenement housing. Cities are unable to handle these rapid
increases.
 Factories/Textile Mills: Lowell Mills, mostly women workers,
paid $2 a week, lived in boarding house.

9. Economy of the North-The
Formation of Labor Unions
 Workers at the mills go on strike over unfair working
conditions, long hours, and low payment.
 This leads to the formation of labor unions, or an
organization of workers formed to protect the interests of its
members. Negotiate (and hopefully resolve) issues such as
wages, working conditions, etc.
 First labor union is the National Trades Union. Membership
skyrockets, experiences a large growth early on. Declines
sharply after management steps in.

10. Economy of the South
 Cotton is king! By 1860, cotton
consists of 2/3 of the total
value of American exports=
$$$$ for the South.
 Where the north was
developing into an urban
society, the South was rural
(farms/countryside) Better
weather conditions means
more time to harvesting cotton
as well as the Cotton Gin.

11. Economy of the South-
System of Slavery
 Slave trade ended in 1804, but the system of slavery still
firmly in place.
 Population of slaves about 1.5 million in the 1820s.
Population will double by the Civil War.
 Life for slaves on small farms different than life on a larger
plantation. The South saw farming as a business and slaves
as property. As the demand for slaves goes up, so do the
prices.

12. Slave Rebellions
 Only small percentage of slaves
ever escaped. Most rebellions and
revolts were small, spontaneous,
and end in failure.
 One famous rebellion, was
Turner’s Rebellion in 1831 in
Virginia. It was one of the most
violent slave revolts.
 Leader was Nat Turner. Turner, a
slave, deeply into religion,
believed that he alone could
eradicate slavery.

13. Turner’s Rebellion
 Turner felt that it was “God’s
will” that he lead this rebellion.
 Around 60 enslaved/free
blacks join Turner. The men
went house to house freeing
slaves and killing “all white
people they encountered.” 55-
65 killed. Slaves charged with
treason
 The rebellion caused massive
fear on farmers/plantation
owners. Therefore, tighter
restrictions were placed on
slaves.

14. Homework:
 Period D: If NOT going on retreat tomorrow:
-Read Election of 1824 article.
 Period D: If GOING on retreat tomorrow:
-Read Election of 1824 article, write summary
-Review Chapter 8 Section 4

15. Homework
 Period G: If NOT going on retreat tomorrow
-Read Election of 1824 article.
 Period G: If GOING on retreat tomorrow (due FRI)
-Read Election of 1824 article, write summary.
-Look over Chapter 8 Section 4
-Try and complete Jackson Ticket sheet
-Chapter 8 Section 5 Jackson’s Presidency