Chapter 8---Creating a Republican Culture (1790-1820)
I. The Capitalist Commonwealth
Banks, Manufacturing, and Markets
a) Banking and Credit:
For merchants, farmers, and political leaders, republicanism meant capitalism.
2nd National Bank was chartered in 1816 for 20 yrs.
To finance mercantile enterprises.
The Panic of 1819: state banks over-issued notes, sparked by a sharp drop in world agricultural prices Business cycle—the periodic expansion and contraction of profits and employment.
Growing distrust of bank emerged.
b) Rural Manufacturing:
Merchants were especially hard hit from the Panic.
--Developed manufacturing system, similar to outwork system.
The penetration of the market economy into rural areas motivated farmers to produce goods, have “second job”.
Rural economy turned out more goods but altered the Environment: ~Textile mills were built around water (alter flow of N. England’s river) ~ Forests were removed in many area of the North
Building a Transportation Infrastructure
Improved inland trade, states chartered corporations to build turnpikes and canals. Lancaster Turnpike--(Lancaster Turnpike Company)
Turnpike constructioninland market center
Connect interior to coastsincreased tradeboosted regional economy
Western settlers paid low prices for land along rivers, and built canals to float goods to the port of New Orleans.
Public Enterprise: The Commonwealth System
Commonwealth System--providing gov’t aid to private business.
Under John Marshall, the Supreme Court ruled in favor of expanding business (eminent domain); state legislatures followed.
Routinely approved grants of eminent domain to private transportation.
II. Toward a Demacratic Republican Culture
Opportunity and Equality—for White Men
US was unique in the world—NO...
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