Download Transportation, Market, and Industrial Revolutions and Panic of

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I can…
Describe the “Transportation Revolution” and
explain its effect on the U.S. economy
 Describe the “Market Revolution” and explain its
effect on the U.S. economy
 Identify the “Industrial Revolution” and describe
the role of mass production and interchangeable
parts
 Identify the causes and results of the Panic of 1819
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There was a need for better transportation because:
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Flatboats could not float upriver to transport goods
Wagons were too slow and expensive
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Locomotives came into
use in the United States
in 1830s
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Allowed commercial
transportation of goods
anywhere where tracks
were laid
Decreased the traveling
restrictions of flatboats
and wagons because they
did not depend on the
presence of roads or water
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Economical
improvement:
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Better transportation led
to more purchases
National markets were
created because goods
could now be
transported easily and
inexpensively
Due to exponential
increase in sales,
national economy grew
vastly
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Profitable national markets were created during the
early 1800s due to an improvement in transportation
systems
Led to an increase in farmers’ and manufacturers’
profits
Convenience of transportation revolutionized the
manner in which business was conducted
Towns grew because:
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Small towns were linked through large businesses
Goods could be transported further distances to reach the ends
of towns
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Shift to machine production in the field of manufacturing
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Revolutionized textile industry through mass production Manufacturing of large quantities of goods at one time
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Began in Britain in mid-1700s, with the invention of the new
spinning mill, before spreading to US
Increased efficiency and decreased costs of production
Eli Whitney brought about the use of interchangeable parts
Production of various parts in mass, which are then used to make
individual weapons
 Saved money
 Later spread to other industries, not just the weapon industry
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Britain outlawed the sale of machines abroad and
stopped textile workers from leaving country out of
fear of foreign competition
Samuel Slater
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Brought secret machine plans from Britain to US in 1789
Constructed British spinning mill with financial support of
Moses Brown
Soon shared mills with Brown all over Rhode Island and
Massachusetts
Summary video
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Many manufacturers borrowed money from state
banks to finance new enterprises
Due to booming economy, banks were lending out
money freely without checking credit
In late 1818, 2nd Bank of US ordered state banks to
demand repayments of all loans & exchange all notes
for gold & silver
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Few banks could accomplish this task
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Sudden demand from Bank of United States caused a
chain reaction of bank failures, falling land prices,
and foreclosures
Nation fell into depression for several years
Weakened the optimism of the Era of Good Feelings