Econ history paper

The pdf name “question” showed the requirment of these two papers. and the other pdfs were some material from the class that you may use in the two papers.

Economic History EC334
First Midterm Examination

Due October23or24,2013

h ulis seGtion oft11e course,、 ve have covered t11e foⅡ o、ving topics∶

1) oveⅣ iev匹 caLIses ofgro△ vtll

纷 Colo“ sts alld natives
3) The ECOnom忆 s ofRevolL【 ton and山 e deb缸 e over govemme11t Instimtions for new cou11try

4) How dⅡ business work?Traditonal Enterprise and overview ofeconomy
5) Tlle Pecuniary Institutions∶ MIoney,Ballking and tlle Fina11cial system

Θ hdustrial revoluton
TJ The Trallspoltaton ReVoltlton∶ RaⅡroads and山 e rise ofMallagemellt

S, Slcavery a11d tlle C~Ⅱ War

For a、veek by lveek breakdo、 、△1ofthe rcadings and presentations,see WebCT and d1e reading guides,notetkers,and
po、veηpoh1ts。 ‘Γhese topics have been covered using lectures,po、 veqpoiIlt presentations,readings,discussions and student

presentations. The purpose。 fd1is exaln is to denlonstrate d1at you have been engaged in刂 1ec1ass up to dⅡ s point and to

give you an oppoit1nity to integrate sOIue ofthe nlaterial d1rough your wr沈 ulg. For ft1Ⅱ and complete alls、 vers,you must

use refercnces to tlle lectL1res,F删

“呜

sANDs如 de11t present犹 0ns Os app⒃ pⅡateJ.

Answer2ofthe foIlowing questoⅡ s,one f1· om pa1· tA,and one fn·om pa1· tB。 Your allsWers wi1l be graded on th⒍ r

persⅡcuity αuodty and daHty in presetltaton m旧 developmeIlt ofideⅡ )a11d山or use of materhlflom dass lecmres and

readhgs。 Your ans、 ver should den1onstrate that you k11o、 v the t0pic and understand ule class analysis ofd1e topio。 1汛ⅡⅡle

some of曲ese questions∞uld form tlle basis ofm entire tenll p顶 ect,your answer sllould sucGinctly descHbe曲 e essential

elements and use suppo1ting Ⅱlustrations,rather tha11atenlpting to provide an exhaustive list ofuIrelated facts。 shce the

questions do NOT have a right ans、 ver,you must develop a cogent argument to suppon your position using citations as

necessary. Please cite quotations or ideas as neGessaγ using caIly staldard reference form and include a page ofreferences

at dle end ofyour paper。 AnsWers、 vⅡl probabIy avefage about4or5pages long each for pa1t A and MUsT be

typed double-spaced,although note that the question in pad one is、 vorth less than the question in pa⒒ B。 NB∶

Average does not rnean an‘
‘
A” paper.

Part A(40pts):

l。 Describe d1e rnotives alld effects ofearly colonization】 lo1nd1e vie、 vpoint ofd1e colonizing nations,ule c。 l。nists,

and the Native Americans。

2. some argue that d1e revolution a11dd1e subsequent organizaJon ofgovernn1eotin u1e LhⅡ ted states、Ⅳero largely

innuenced by econoΠ1ic motives,vx,hile others argue Vociferously已 gainst such ideas。 Describe tllis debate.

3.The developmeIlt ofthe fIlla11o引 system(money,balks,Ⅱ na11cial markets was somewhat slow,errat忆 ,and had

黯 F镦刁昊℃艮∶黯茁J掣s晗 摁 抵 :%扣
渺 ∞血 γ·D∝“be山e响 σ eve吨s“ 山e flllalloH
cenmγ oa1863).CNB∶ there、 ob”ously some overlapl

4 The“dustrial revolLIton e11taⅡ ed changes“ pmductive technology tlltat had profo山 nd effects on labor(hdu山ng
how peopIe worked and who wOrked)and so。 al stmctLIms as compared with tlle old‘

‘
traditional economy’ ∴As

exemplifIed in readings from Hamilton,Jerers。 n,sIcater,caIld Lowell,these were compIex and∞ Iltroversia1.

Discuss some oftlle m刽 or chaIlges and tlle cOIltroversy。

Part B(60pts):

1, Authors including Chand丨 er`Drucker`and Cronon discussed hoW business practices、 ″ere reshaped in the ear丨 v to

宀id1gth century especia丨 丨y wkh the Hse ofthe rai丨 roads.Using a丨 丨the mateHals from the peHod,wHte a

sum1η ary about how raⅡ roads reshaped business practices inc丨 uding aspects of production`distribution`finance`

accounting`and rnanagement requiring a Visib丨 e Hand. lnclude a discussion of Chandler′ s assertion about the

reasons for change。

oRI∈INs RND RIsE OF COMMERCIAL BANKs To1870
PREsErrED Bˇ mc酣 BLl△ 毗 snm眦 Rn△DB⒒KEW-Rs

sTnRT OF B瓜ⅣK1ⅣG
· Roman Era

o 01砣 ofthe temρ les and i汛 o dis刂not bu”dings

° Julius Caesar-
■ AlIoWed bankers to con1scate Iand

。 Loan sharks-
。 Iegit⒈ nate commerce used institu刂 onal banks

· κnights Temp∶ ar-During the Crusades
。 Ran the eadiest Eu“,刊听de`Mideast banking system

:悬;舁:彗r%IF褶:I扌η扩
曲κ

“PⅢ
”帼 伽em

COMMERC肽 L BANK1N∈ DUR1N∈ TⅡE REV0LU·ⅡoⅣ
· American Revolution

° Con耐 nentaI Congress
。 PⅡ nted

“
continenta∶ s”

· Bank of North Amer∶ ca
。 First Iegitirnate comrne“ 丬aI bank

。 founded in1781
。 Robe【 t Mor”s
° Loaned to

■ ReVduuonary govemment
■ PdVate c”Ⅱ zens

COWERCIAL BANK1N∈
· Most obta∶ ned charters
· PIayed key roIe in economy

。 Channe”ng money to entrepreneurs
■ Commerchl banks
。 saVIngs banks
■ lnsurance companies

· Fractional Lend∶ ng
。 OnIy Ient a仃 aCuon of money

· NormaI hddings
。 specie
o Notes of other banks
° Commerch!ρaper
。 PubⅡ c secu丬 ties
o Mo忖gages
o ReaI estate(rather sma”)

● Discount Loans
。 Only requires the ρrinciρ al on the due date
o MostIoans Iasted onIy a feW days

o staggered Loans
· By1800

∷ o Eaoh M司 or Ci″
o Most rnercantile Ienders

F1RsT B众ⅢK0F VNITm sTnTEs1791ˉ 1811
● ˉConα蔚vod in1790ˉ

o DeaI”th the Ⅵ旧r debt
o Putthe government on soIid foot∶ ng
o lssue cu盯 enCy notes
o Functon as a℃ ommerchlban卩

· ModeIed a钆er B白 nk of England
o sta吐 Ca田 tal°f$10m”
o seⅢ ng stock
o Federal Govemment oWned$2m”
。 Had8branches

· CIosed in181日
° Thoug”no longer needed

THE END OFTHE ΠRsT B盘ⅣK OF TⅡE UⅣ rED sTnTEs
· The banks20year charter expired in1811
· COngress refused to renew the Bank】 s charter by1vote
· Banks stock:building and furnishings purchased by stephen Girard

。 0pened”Girards Banu in1812

· He a”owed trustees ofthe First Bank to use o仟 iCe space and vauIts to continue process ofVVinding down the
c丨osure ofthe First Bank

sT血RT OF TⅡE sECoND B众 ⅢK OFTH瓦 UⅣr「ED sTnTEs
· Federal Debt began to cIirnb、旧th the sta吐 ofThe Warof1812
· Congress cha吐 ered a neⅥ

`bank〕
The second Bank ofThe United states

· Began operations on January7:1817
· Prirnary focus was to promote a uniforΠ η currency by geuing banks to resume specie payments

sECoND BANK OF TⅡ E UNrrED sTnTEs
· VVas sirn”arto the First Bank,but bigger

: 8凇犁;{』肾I】:I卩 %h σ the sha饿
o Headqua吐ered in Ph”adelphia

· Had oⅢ cesin29m刽°rc浞 ies
· VVas poorIy managed and was on the verge ofinso丨 vency

。 lnsolVencV-Inab”ity ofthe debtorto ρay the debt

sECoⅣD BnNK OF TⅡE UⅣ ∏百D sTATEs
· A仗er a congressiona丨 inquiry Langd9n Cheves Was broughtin as presidentin1819I and saved itfrom coⅡ apse
· CheVes、″as succeeded by Nicholas Bidd丨 e in1822
· Andrew Jackson

o The Bank屺 s susceptibIe t° c°rmpuon and hord to control
〈> lntended to close the bank

BIDD凵巳VsJ且CKsoN众ⅢD TⅡE END OF THE sECOND BANK OFTⅡⅡ UNrED sTATEs
· Jackson intended to cIose the bank,so E3iddIe used bank resources against him

。 Ignited a bitter struggle

· Jackson refused to renew the banks cha吐 erin1832
。 Pu”ed federal deposits仃 onη 1s Vaults

· The struggIe beMeen Jackson and Biddlel and Jacksons opposition ofthe bank from the beginning cripp丨 ed the
bank and it vvithered untilthe Charter expired in1836

FRⅡⅡ BANK1NG(1♂s7-1868)
· The Safety Fund insured tⅢ the1860〕 s。
· safety Fund did not get any new business a仗 er1838 ‘
· Enter Free BankingI anyone couId open a bank anywhere.
· To get startedI a bankerjust needed to deposk government bonds`〃 ith state auditors,
· By1860:18states had饣 ee banking:which、 〃ere a”rnode丨 ed after New York.
· The safety Fund and Free Banking’ s rnotives、 ″ere to keep peopIe safe from chaotic fa”ures。

IssUEs众 ⅣD sOLUT10Ns
. IssuEs∶

。 OVer100∞ 弼ferent Ame”oan ou″ encies to fo”oW,
o Easy to countereⅡ

9 Hard to keep up Wth10000different currencies
· sOLUTIONs∶

。 Take the poWerto ρ
“nt a屺

y from banks

。 HaVe one type ofourrency that eVeryone knows and respects:w”ch沁 also harderto counterfe”

GRo眈 Il
· Banks grew e× ponentia”y∶ in the1800s only1~3banks in Iarge cities
· In1820there、″ere327commercia!banks haVing551In”Ⅱ on do”ars ofIoans
· By1860there`″ere around1562banks across the nation`″ ith691.9Jη ⅡIion do”ars ofloans.

Auston Combs and A11dre、 v Wolken

l,EadⅤ Life

a。 Bom on Mtny27dl,1794h⒏ aten Island,New Yo钛

b.Fa1niIy was poor,fauler was feHy boat operator

c.Dropped out ofschool at age Il

d.Wentto wo瓜 for Ⅱs fatller on Ⅱs feny boat La1spo⒒i11g ca呜 o behveen stateIl、 land alldMa11ha仗 all

2.Fenγ serv:Ge

⒏赶 age“ he borro△ved$100加m际 pc△re沁 ωbW惑
鼯 黜 嘿 遄 l∶:渊 f砦?∶lj眷:ts a“pb.Competed h tlle Ⅱ砂uy c。mpetitive feHy service h

G.War ofI812pro访 ded Ⅱm govenuue11t contracts to move suppl忆s bebveen forts aloug Hudson Fuver

d。 EXpallded BllsⅡ 1ess by p町 Cllasing more sGlloouers(feny boats)tq】 ld mn ulem al。 ng茁ferellt routes

e.so【 daⅡ s1tpsin I818

3.steaInboat0Derator
a.ParLlered、 ψ1th TllO1nas Gibbons ald beca1ue stea1uboat captah

b.Provided feHv service between New Bnus、vic△ New Jesey and New York City

c Ch盯ged aslime as$l per tr” wllⅡe Ⅱs competitors ch盯 ged aromld s0
d。 ParulersMp△ vas so successml tl⒙tG曲b。ns lvtqs sued for monopol讫 hg Hudson Rher廿amC,Case bro”典

“o
supren1e Cou“ ;CⅡbbons、von

4.stea1uboat Em⒍ re

⒊∶{】∶由芗f氵:lil:茁j∶扌::1I1:号:甘:;褴早品;扌
°
:∫漶溆甯:r万:逮颥 s翌瘛 。f

passenger stαuuboats

c,By tlle I840、 he had a neet。 frnore tllan lOO stea:nboats and emp1oyed1nore people than a11y ouler company m ule

UⅡ ted s伍 tes
d.Ca⒒ ￡on⒒ a gold nIsh in I849ueces蕊 tated Lavel by ocean△ont east coast to san Francisco

e.Rall虻 ⑾ “Ⅱpsto N忆盯鸭ua in哎ead ofPa11allta hr1a11d crosshg,cu缸 ng dle dis忸 nce by600mⅡes and2days,

redttc血 gh灬 phce by about halfofcompetiu。 11

f Becalne goˉ to se卩沂ce for Lip to Ca⒒ fonlia,eanung hLn around$I:uⅡ Ⅱon per year

5.Rai“ ad ElltreDrelle刂
a,Got血 volved血 I857

b.RaⅡ Travel staIted to grow eXponentia11y in1860

c。 Vallderbilt took adva11tage,purcllased nilroads in New Υo:∷ 1【

d。 NIade l刂 s1nafk;providi11g low佰 res Ⅵ访ul huproved services

6.Move1nent lvestwcTd

a,Due to successin New Yo瓜 ,Vanderbilt purchases muluple milwc.ys
b,VaIlderbut’ ss。⒒wiⅡ iam tllell刂 ged him to go to CⅢ cago

c success钆11y∞ mected C“ cago aIld New Yo瓜 by milway

7Eoe War
a.Ehe R缸Load olu1ed by Daniel Drew,Va11derbilt olLq1ed m犭 ohty ofsllares

b.hy Gould alld Ⅱm Fisk along wiut D忱 w plo仗ed against VanderbiIt

c,Isslled watered shares ulat va【lderbi⒒ kVt ptlrGhasing

d。 Judge ost【 ed ci忸 uons t。 tlle uree me11;ordered to cotut,evel1mally led to dlem neeing witl1protection

e,Paid orlegislaure in hopes to legaⅡ ze u1e issue ofu1e fratldulent哎ock

∶镏龇t‰曜扌:器脂滗嬲 浦豳馏氍糨瀹器找器$娶耘溜嬲l找笋
mⅡlion

8.LeεacV and Death

a,Passed away in1877at ule age。f82
b,Gave mO11eyto a U11|l1jiv∝ 蕊ty in Tαuesse⒐ later became Va11derbⅡ t

c.$IOO mⅡ ion do11ar fortune鲈 ven to hs son Willia1n

d.Net wodltoday would be$180+bⅡ Ⅱon;makL1g血u ule3rd ricllest AlllericaIl h Ⅲstory

° Blackstone Canal(1828〕
■ Major Contributorin theAmeriCan Revolution

。 Erie Canal
o Buffalo and Albany,NevIr York

。 363MⅡes
° Funding Bugeted at$6MiⅡ ion in1810

° COnstmction began in1817
· Warof1812Delayed

° Completed in1825

。 Clearing the Waters
° stean1boat Monopoly

· New York Vs,New Jersey
· VanderbⅡ t and Gibbson take case to supreme court

° Unconstimtional
■ “Released every creek and rive△ every lake and harborin our counuy from

the interference of monopo”es.″

° Irnpact
° Cheaper Transportauon
° First transportauon beu″ een eastern seaboard and the、 ″estern interior,No portage

o Innovations
· Madejobs easier and cheaper

° Jobs
· Immigrants”red ordocks

° Population boom
· `^”ages turned into towns`and towns into cities

hnpact cont。

° Trading tendencies changed
· Mississippi area

o NeⅥ
`York transformed into a MetropoⅡ

o

o Promoted n1ass product∶ on
o size,shape,and Nature ofthe United states

Explosion
· 30,626:uⅡ esin1860

· 193,3461uⅡ es in1900

o Annual freight tonˉ :uⅡ eage ofraⅡ roads increased by35ti:nes

· Employed lnore than a FnⅡⅡon、″ρrkers in1900

° TOtal population`″ as only76【 nⅡ Ⅱon

Increased customer base
· Made it possible to traVel faster,farther and cheaper than ever before

· Productlon was able t0increase due to new markets that were before unreachable

Trunk and branch system
· Trunk lines ran bemeen the major cities

o NY city to Chicago

· Branch lines ran from a major oty to a smaller city

o Th“ lack ofcompleton wⅢ cause some m旬 or problems laterˉ

Fight against rnonopoⅡ es
· Nearly all ofthe branch lines`″ ere run by a Iuonopoly

· Wabash raⅡ way vs,Ⅱ Ⅱnois

o states had no powerto regulate r直 Ⅱ roads that were takhγ 雪goods over stateⅡness

· Interstate comn1erce coni【 nisεioh∶

o First ti:ne the fed atte” pted to regulate a porJo。 oftha1econonny
o Largely un successm1due t。 vague Wordng¨ 。

″
must be fa”andjusr

· sherman antitmst act

o Made a federallaw ag日 :nst mon° pdⅡs

Signincant chahges due to raⅡ road
· The creation of u【 nez° nes

· EˇenmaⅡy chanε ed∷ the scope ofthe Federal Gσ ěrnments reguladon powers

Brookeˇ IcGrew&Jaclyn Sanchez
ECON334ˉ Prosentatons

“Women’ s Work” and the Rise ofthe Factorv

IⅡdustoal Revolution Living TOgether

● Late18tll-Early19曲 century ● 8-10per room
· M旬or tuming point ● SisterhQod fomed

o Coal ● IIousehold Ghores
o Textile ● Kept up household∶ for飞Vhen rnaHoed

· Increase Production=Cheap Labor . Easily spread⒍ ckness
● FaGtories produced rnanufactured goods

BoardiⅡ g■Ιouses

saΠnuel sIater

● Brought L1dus“ial Revolution from IIazards-Pembertom VIill
Great Britain ● Sold rnill to ne、v owners

。 “Father in the AmeriGan ● Overstored
Indus饣 ial Revolution” 。 Buckled

● Designed fIrst textile rnⅡ ls 。 w。 men and ohⅡ dren trapped inside
· D忆d1835(66) ● Bur11ed

o Owned13spinning mills,net 。 145dead,166i耐 ured
worth1.2millon

Franc、 Cabot Lowell Protests
· Toured Britain ● Fought for Decreased work hours
● Reconstructed Power Loom 。 “Tumouts”
● EstabⅡ shed“Boston Manufacturing 。 F。 uI【 ed Lowell Female Labor Reform

Compan/’ Waltham,l、/|【
”、` Ass。ciaton

● E冫 ied1817 ● set10hour workday
● Renamed factory tOwn Lowell,MA

start Vour CrossWord】 Puzzles!!!

R、e of GDP
THE END

REFERENCEs

‘H,sro〃
or矽b泖纟刀扔 r,亿砌srr,,,(2007),R。饣iCvCd scptcmbcr17,2013,Ⅱ om Nationa1Womcrs History Muscum∶

www.nwhm.org/onIineocxhbits/hdustry/1htm

Dublin,T,⒓009),〃 °仞召刀￠″d砀￠E伢
‘J,,rP9d叨

sr/沏

`R召

vo砌 r氵o刀 j刀 仂纟t/m万 勿
‘s矿

夕招s Rctricvcd scptcmbcr17,2013,from The

GlⅡcr Lchrman h蚰tutc ofAmc”Can H“ ory:h⒒ ps∥、v飞vw,uldcrlchman org/histor。
`ˉ

b”cr呐 ackson~

hncoln/cssays/、 vomcnˉandˉ carIyˉ industriaIˉ revolutionˉunitcdˉ states

Lastrina,M.(2003,MarCh3),〃 °淝0刀 加 功纟F￠c″ o’氵纟sD切
‘j彳

g油召E夕r/,,JP,d9J￡ rr沏
`R召

vo`勿

`氵

o彳 RctriCvCd scptcmbcr18,2013,

仔om Mount HoIyokc∶ https∶〃www.mtho1yokc cdu/couscs/rschwart/hist151sO3/mcssagc√ 33html

Lavendcr,P(2009,spring).〃 o踟 召刀夕刀
‘汤

纟′汔沏 sr/沏

`R召

vo`叨 r氵o刀 Retricved scptcmbcr I7,2013,from

www,l曲 rary c“ ,Cuny,cdu/dept/history/lavcndcr/98⒍ 06,pdf

Nate Pery/⒏ erra Hooii/Mishaela Chavez

Economic ofthe CivⅡ War

The econoⅡ1ics ofthe CivⅡ War and the subsequent econoFnic impact post-war has been

the m叼 ect ofslgm丘cant debate。 UntⅡ 伍e late20伍 centtIry,伍 e prevailing V忆 w amongst

economic historians was that the CivⅡ War caused Fnassive changes in industrk吐 development

and goverlment powe△ causing a signi丘 cant Ⅱse in the lJs economy。 The‘
‘
Beard-Hacker

Thesis” beca1ne伍 e most accepted interpretation ofthe CivⅡ Wx,ckuming that the‘
‘
s“king

acⅡevement wasthe饣 iumph ofindustrhl cap⒒ al“m” (Hacker1940∶ 373)。

Later1Ⅱ storians carne to think that perha/ps the war effort was the cause】 or eoonomic

stimulus,and by the late20伍 centu1γ econom忆 h灬tooans began to analyze re红 onal econom忆

grOwth and delved into more research into the econoⅡ lic impact ofslavery and the political

issues the precluded the CivⅡ War.

Ow presentation will focus on伍 e fol】rm句or∞mponents studied by economic historians

when analyzing the CivⅡ War:the“econoⅡⅡc” causes ofthe、 va△ the cost ofthe War;the

flnancing ofthe wa吒 and an ex钔匝nation ofthe Hackerˉ Beard Thes`。

Bibili帜raDhv

Hacker,Lovos。 饧 c rrj勿俐 砀 。r/昭 召rjc曰刀 C叩
j多

?`泌昭 r·砀 召DεvcJop阴 纟刀
`o/Fo`Ces力

叼/昭召rjc曰刀

正乃orov ro砌召E刀歹o/砀cA″刀纟″召刀砀 CV刀∫勿v。 New York:Columbia U血 versity Press,1940

Goldn,Claudh Dale。 “The Economos ofEmanopaton。 “Jo叨叨刃 o/Ec@刀 @昭jc历srov33

(1973):66-85.

Goldin,Claudia,and Frank Le讷 哇s。 “The Eoonornic Costs of伍 e American Civil War:Estinlates

and Implic缸ons。 “Jo勿r刀曰

`o/助
o刀0昭 Jc f刀s匆r9/35(1975):⒛9ˉ326.

Gunderson,Gerald.”The oogin ofthe American Civil War。 “Jo勿r刀曰

`o/助
o刀0昭 jc f乃0rov34

(1974):915-950.

Ransom,Roger。 “Economics ofthe CivⅡ Wa卩 。EH。Net Encyclopedia,ed⒒ ed by Robert

Whaples。 August25,2001。 URL httD∶〃eh。net/encvclo° edia/剐吐cle/ransom。 civⅡ 。war。us