ECON 1740 M 10/20/2014

Group e-Portfolio Project

Christian Campbell

Collin Millett

Tangikina Tauteoli

Victoria Perez

Thomas Pyne

Omar Gutierrez

Alex Webb
United States of America Economic Timeline: 1688-1860

1688

Prevalent Slavery Slavery, especially in the southern colonies, was entirely normal. Only a vastly
outnumbered minority of Germantown Quakers spoke out against the practice, claiming it was a violation of human
rights. Most considered the Quakers view to be ridiculous.

1758

Abolitionist Arguments Gain Ground Philadelphia condemned both the trading and owning of slaves.
The Quakers bar anyone involved in slave trading or ownership from occupying a position of responsibility in the
Society of Friends.

1764

James Hargreaves Invents the Spinning-Jenny This invention allowed a worker to spin up to 8
threads at the same time, paving the way for a drastic increase in the production of finished textile products. After
the American Revolution, the United States demand for finished products made inventions like the Spinning-Jenny
incredibly important.

1772

Gradual Changes in Slavery Law (1772-1864) Slavery was vitally important to the maintenance of the
Southern plantations and agriculture. As such, any proposed changes were vehemently disputed by Southern
interests. Even after slavery was condemned as an immoral practice, it would take a little under a century before the
United States would make it illegal.
1772 Lord Chief Justice Mansfield rules that slavery is not supported by English law. 15,000 slaves in
England are freed. Though the colonies were physically separate from England, the colonists took most of their
political and social cues from English law.
1777 Vermont Constitution prohibits slavery. The first state to do so.
1780 Population of slaves in the United States reaches 575,000. Massachusetts Constitution declares that
all men are free and equal. Pennsylvania adopts a policy of gradual emancipation, setting all slaves born after
November 1, 1780 free on their 28 th birthday.
1783 Judicial decision interprets Massachusetts Constitution as having the power to abolish slavery.
1784 Rhode Island and Connecticut pass gradual emancipation laws.
1787 Importation of slaves is given a 20 year time limit before the practice is phased out. Northwest Land
Ordinance forbids slavery in the Northwest Territory, including Michigan, Illinois, Ohio, Wisconsin, Indiana, and
Minnesota.
1799 New York passes gradual emancipation laws
1800 United States citizens barred from exporting slaves.
1807 The United States and England are no longer able to import slaves or engage in any variety of slave
trade.

1819 Of the 22 states constituting the United States of America, 11 were free states and 11 were slave
states.
1820 Compromise of 1820: Missouri was allowed to keep their slaves. In exchange, slavery was
prohibited in all territories making up the Louisiana Purchase.
1838 Slavery abolished in British colonies.
1848 Congress rejects the Wilmot Proviso. Slavery is allowed to continue in the Southwest.
1850 New states are admitted into the Union in pairs. One free state for one slave state.
1854 Kansas-Nebraska Act: repealed the Missouri Compromise by providing for popular sovereignty
in the available unsettled portions of the Louisiana Purchase.

1857 Dred Scott Decision: Supreme Court rules that Congress did not have the power to abolish slavery
in the territories.
1858 Abraham Lincoln makes a public statement condemning slavery as morally, socially, and politically
immoral.
1864 Slavery abolished in the U.S. as a result of the Thirteenth Amendment to the Constitution. Slavery
is illegal.

1775

American Revolution Begins The American Revolution never had majority support from the
colonists. Roughly one third remained loyal to the Crown, with another third remaining neutral. Several economic

challenges resulted from the onset of the Revolution. First, England blockaded the ports, preventing incoming and
outgoing trade. This was a major obstacle to the colonists as they depended on shipping for most finished goods, and
for sending crops and goods to market. This resulted in shortages of vital materials in the colonies. The colonies
reacted by forming treaties of commerce with France, Holland, and Spain. They also began to produce goods that
were previously illegal for the colonies to produce under Mercantalist rule.
The American Revolution was an expensive affair, and the infant country encountered a problem in paying
its troops. Land was promised and paper money was printed to pay the soldiers who fought on the colonists behalf.
This sudden influx of paper money led to hyperinflation, and the prices of goods rose dramatically.

1776

Adam Smith publishes The Wealth of Nations

The Wealth of Nations was a book that supported a free market economic philosophy with little
government interference. This type of economic system was in direct contrast to the established relationship of
Mercantilism between the colonies and England. The free market system was well supported in the colonies, and
quickly became a best seller. Other main points of Adam Smiths philosophy included protection of private
property, rights of individuals, and limited governmental rules and regulations.

1777

Articles of Confederation (1777-1789) Under the Articles of Confederation the federal government did
not have the power to tax. As a result the states accumulated large debts with no way to pay them back, leading to
hyperinflation. The federal government also lacked the power to effectively negotiate treaties with other nations on
behalf of the member states regarding trade and alliance.

1781

Banks in the U.S. (1781-1816) The people and congress felt that establishing banks would help finance
the war, curtail inflation, and provide financial organization.
1781 Robert Morris established and organized the first American bank.
1791 Alexander Hamilton published a report claiming that a National Bank would increase the capital of
the country. Soon afterward, President Washington signed a bill creating just such a bank.
1800 National Bank had branches in Boston, New York, Baltimore, and Charleston
1802 Branch established in Washington and Savannah
1805 Branch established in New Orleans
1816 Second National Bank chartered

1782

Oliver Evans Invents the Automatic Flour Mill Oliver Evans created the first flour mill to operate
with no human intervention aside from guiding and monitoring. With this invention, flour could be produced at a
faster rate, with fewer laborers. This lowered the cost of flour, and dramatically increased production.

1783

The Revolution ends with The Treaty of Paris England recognized the colonies (United States of
America) as a sovereign nation and cedes all lands east of the Mississippi River. This opened territory on the
western frontier previously deemed off limits by the King of England for settlement.

1783

Decimal System is Adopted The dollar was officially adopted by the United States of America as the
unit of account. The Decimal System took the place of the English pound sterling.

1785

Land Acts (1785-1796) The Land Acts spelled out how public lands could be sold to private citizens.
There were two dominant theories at the time. The conservative theory proposed that the land should be sold in large
tracts without financing from the government, and should provide a large source of revenue for the federal
government. This made it difficult for a common person to purchase land. The liberal theory proposed that land
ownership should be available to all with small tracts and easy financing options for settlers. For much of the period
conservative laws prevailed across the frontier, but after the turn of the century concessions were made to allow
settlers to easily purchase and finance land from the federal government. Large groups of Irish and German
immigrants came to settle in the United States to take advantage of the acquirable land

1789

The Constitution Takes Effect The Constitution fixed some of the weaknesses of the Articles of
Confederation. The Constitution gave the federal government power to tax, and to pay a portion of the debts
incurred by the individual states. This backing of public debt would prove critical to both stopping the rampant
hyperinflation and also providing a haven in which future investors could place their capital. The constitution also
granted power to the federal government to mint coins and regulate coinage and trade between states. States retained
the rights not granted to the federal government, including business regulation.

1790

Paper Money (1790-1811) Commercial banks had not existed in the colonies. After 1793, special state
charters established a large number of banks. Before 1790, there were only 3 banks. By 1800, there were 20, and by
1811 there were 88. All but 2 were state-chartered banks empowered to issue their own paper money.

1793

First American Factory Established The first American factory is a cotton textile industry owned by
Almy, Brown, and Slater. The ability to mass produce finished products was what America needed in order to
become economically sound. Production of finished products internally, without having to rely as heavily on
imports, was an important step in stabilizing the country.

1793

Eli Whitney Invents the Cotton Gin The importance of the Cotton Gin cannot be overstated. It
allowed workers to process 50 times more cotton than previous methods. With increased demand for cotton from the
growing textile industry (due to the rise of other inventions like the Spinning Jerry and the Power Loom) cotton
quickly became the staple crop in the south as growers turned from crops of indigo and rice to take advantage of the
growing demand. Cotton would quickly grow to become the leading US export, accounting for half of the dollar
value of all good exported. Eli Whitney was also credited with inventing interchangeable parts, which helped the
push towards industrialization in the north.

1793

Napoleonic Wars (1793-1815) The Napoleonic Wars proved to be a great opportunity for the colonies
as England and France used vessels previously engaged in trade for military service. This opened the door for
colonial shipping services to step in and fill the void, increasing US trade with both nations. These wars provided a
stimulus that created prosperity in the young nation. The period was marked by full employment and urbanization in
the eastern port cities. The British boarded and overtook more than 1500 US trade ships, to be used in the fight
against the French, eventually leading to the War of 1812. President Jefferson reacted by prohibiting all US ships
from engaging in foreign trade, stifling trade and suppressing the economy. The ban would later lift for all countries
except England and France.

1803

Land Acquisitions (1803-1898) Over the next century the United States would acquire most of the
lands that make up the country as we know it today. This provided for a new frontier and new lands open for
settlement.
1803 The Louisiana Purchase: Sold by the French to help finance the Napoleonic Wars
1819 Florida purchased from Spain
1845 Texas Annexation: Established as a state after being conquered from Mexico in 1836
1846 Oregon Country: Annexed in a treaty with Britain, Spain, and Russia.
1848 Mexican Acquisition: Conquered from Mexico
1853 Gadsden Purchase: Southern portions of what are now Arizona and New Mexico
purchased from Mexico
1867 Alaska Purchase: Purchased from Russia.
1898 Hawaii Annexed

1812

The War of 1812 Caused mainly by the seizing of US ships by England. US exports fell to almost 0 as
the British blockaded ports and seized more ships. The US adapted to rely less on imports by increasing
manufacturing, especially in textiles. Large portions of the economy shifted from agriculture to industry.
The Iroquois Indians eventually sided with the British, and at wars end many Iroquois had their lands
seized, and were banished to Canada.

1820

Prices, Money, and Specie (1820-1845) In 1820, prices in general declined as the amount of specie
remained constant and the amount of money rose. The growth in the stock of money was less than the growth of the
volume of goods exchanged. The Great Depression, stock market crash, and the following inflation were believed to
be the natural result of the First National banks failure.
1832 President Jackson vetoes a bill that would have renewed the corporate charter for the Second
National Bank.
1833 Stock of specie increased
1836 Specie circular: required most federal land sales to be paid in specie
1837 Temporary recession
1839-1843 Great Depression: After the stock market crash, masses of people tried to exchange their paper
money for specie. Banks panicked as they were unable to meet the demand.

1824

Boston Banks The use of bank notes were still popular in the country banks of Boston. Six banks joined
with the Suffolk Bank of Boston to create a system for country banks to exchange specie or bank notes for notes.
The Suffolk Bank continued clearing New England notes until rivalry from Boston banks and country banks came to
a head in 1858.

1827

Mechanics Union of Trade Association is Established Unions of different crafts in Philadelphia

federated to form a city central or trades union, the Mechanics Union of Trade Association. Many similar
organizations were formed in the following years to assist workers in negotiating with callous or unfair employers.

1827

Drop Forging Introduced Drop forging with dies was successfully introduced and highly used. More
precise tools could be mass produced, increasing production rates, and lowering the costs of metal products.
Interchangeable parts could be produced in greater quantity, streamlining the repair process for many important
machines and tools throughout the country.

1830

Rhode Island and Waltham Systems Child laborers in textile trades were common, especially in areas
south of Boston. They would work long hours in awful conditions. Family-based labor systems were developed to
control the number of children employed in factories throughout the country. The Rhode Island system assigned
whole families to tasks based on each members strengths and weaknesses. The Waltham system employed women
in their late twenties to work in miserable factories.

1837

Connecticut General Incorporation Act Connecticut passes the first general act to make incorporation
a right for anyone. While this simplified the process for companies seeking investment or promotion from other
companies, the increase in competition among businesses made it difficult for some to survive.

1838

New York Banking Arguably the most important bank experiment in American history was the Free
Banking Act in New York. This law allowed any individual to start a bank, as long as they met certain prerequisites.
The law also required banks to deposit bonds with the state banking authority. This ultimately protected noteholders,
and improved the states credit. If a bank refused to redeem a note in specie, the holder could protest to the state
banking authority.

1840

Irish Immigration (1845-1847) The Irish Potato Famine caused heavy Irish immigration. Fleeing
starvation and the oppression of absentee landlords, the Irish found employment as common laborers and factory
workers in America. Roughly one million Irish immigrants fled to America to begin a new life.

1847

Implementation of a Ten-Hour Day The New Hampshire legislature passed the first regulatory law
setting a 10-hour upper limit for a days work. However, the law allowed for anyone to exceed this limit if the
willingly agreed to do so. Prior to this law, most workers were forced to work upwards of 12 hours a day in awful,
inhuman conditions.

1848

Gold Discovered in California Gold was discovered in California at around the same time as the Irish
Potato Famine, the Taiping Revolution in China, political unrest in France and Germany, as well as the end of the
Mexican War. As a result, hundreds of thousands rushed to California with dreams of making it rich. Few actually
attained these riches, but nonetheless the population of California nearly tripled in the following three years.

1860

Political Gains for Working People White male citizens of the United States could vote, black males
could vote in New York and New England, and male immigrants could vote in the agricultural Northwest.