US History

He sought and achieved Congressional authority to create the First Bank of the United States in 1791; the charter lasted until 1811.[17]

Thomas Jefferson and James Madison opposed a strong central government (and, consequently, most of Hamilton's economic policies), but they could not stop Hamilton,

As president in 1811 Madison let the bank charter expire, but the War of 1812 proved the need for a national bank and Madison reversed positions. The Second Bank of the United States was established in 1816, with a 20 year charter.[18]

Cotton, at first a small-scale crop in the South, boomed following Eli Whitney's invention in 1793 of the cotton gin,

Millions moved to the more fertile farmland of the Midwest. States built roads and waterways, such as the Cumberland Pike (1818) and the Erie Canal (1825), opening up markets for western farm products.

The Whig Party supported Clay's American System, which proposed to build internal improvements (e.g. roads, canals and harbors), protect industry, and create a strong national bank

President Andrew Jackson (1829–1837), leader of the new Democratic Party, opposed the Second Bank of the United States, which he believed favored the entrenched interests of rich. When he was elected for a second term, Jackson blocked the renewal of the bank's charter. Jackson opposed paper money and demanded the government be paid in gold and silver coins. The Panic of 1837 stopped business growth for three years

Railroads made a decisive impact on the U.S. economy especially in the 1850-1873 era, making possible the transition to an urban industrial nation with high finance and advanced managerial skills. Railroads opened up remote areas, drastically cut the cost of moving freight as well as passenger travel, and stimulated new industries such as steel and telegraphy, as well as the profession of civil engineering.

Atlanta, Billings, Chicago, and Dallas

the railroad became the first large-scale business enterprise and the model for most large corporations.[24]

Panics did not curtail rapid U.S. economic growth during the 19th century. Long term demographic growth, expansion into new farmlands, and creation of new factories continued. New inventions and capital investment led to the creation of new industries and economic growth. As transportation improved, new markets continuously opened.

By 1860, on the eve of Civil War, 16% of the people lived in cities with 2500 or more people; a third of the nation's income came from manufacturing. Urbanized industry was limited primarily to the Northeast; cotton cloth production was the leading industry, with the manufacture of shoes, woolen clothing, and machinery also expanding. Most of the workers in the new factories were immigrants or their children. Between 1845 and 1855, some 300,000 European immigrants arrived annually. Many remained in eastern cities, especially mill towns and mining camps, while those with farm experience and some savings bought farms in the West.[26]

The industrial advantages of the North over the South helped secure a Northern victory in the American Civil War

Industrialists came to dominate many aspects of the nation's life, including social and political affairs.[26]

the region maintained its dependence on cotton

An explosion of new discoveries and inventions took place, a process called the "Second Industrial Revolution."

By 1890, the USA leaped ahead of Britain for first place in manufacturing output.[2

The rapid economic development following the Civil War laid the groundwork for the modern U.S. industrial economy.

Parallel to these achievements was the development of the nation's industrial infrastructure