Chapter 8 America Henrietta Outline
Chapter 8: Creating a Republican Culture
I. The Capitalist Commonwealth A. Banks, Manufacturing, and Markets 1. A British visitor reported that America was a “Nation of Merchants,” in 1798 and they made many from the French Revolution. 2. Fur trader Jon Jacob Astor and merchant Robert Oliver were the nation’s first millionaires. 3. Oliver started from an Irish-owned linen firm in Baltimore but then gained his money from trading West Indian coffee and sugar. 4. Astor came from Germany to New York in 1784 and gained wealth from trading fur with China 5. To finance the trading system, America needed a banking system which was created with the charter of North America in 1781 in Philadelphia. The bank would lend money to help the traders and store their money. 6. The Federalists created the First Bank of America to issue notes and make commercial loans 7. The bank had gained a eight percent interest annually, but in 1805 Jefferson declaredthe Bank as unconstitutional. 8. The bank wasn’t renewed in 1811 when its charter expired, so instead states began to create their own banks. 9. In 1816, Congress created their 2nd Bank of the United States, but at that time there were 246 state-chartered banks with tens of thousands of stockholders and $68 million in banknotes and circulation. Yet many of the banks were inadequate and shady. 10. The banking policies saved the United States from the Panic of 1819, but the major cause of the Panic was the 30% drop in world agricultural prices after the Napoleonic War. 11. Between 1818 and 1819, the price of cotton per pound fell from 34 cents to 15 cents in South Carolina. When this happened, planters, and farmers, couldn’t repay their debts to the merchants, storekeepers, and banks, bankrupting those businesses. 12. The Panic of 1819 showed that artisans, merchants, and farmers depended for prosperity on the market economy. 13. Before 1800, New England artisans worked part
I. The Capitalist Commonwealth A. Banks, Manufacturing, and Markets 1. A British visitor reported that America was a “Nation of Merchants,” in 1798 and they made many from the French Revolution. 2. Fur trader Jon Jacob Astor and merchant Robert Oliver were the nation’s first millionaires. 3. Oliver started from an Irish-owned linen firm in Baltimore but then gained his money from trading West Indian coffee and sugar. 4. Astor came from Germany to New York in 1784 and gained wealth from trading fur with China 5. To finance the trading system, America needed a banking system which was created with the charter of North America in 1781 in Philadelphia. The bank would lend money to help the traders and store their money. 6. The Federalists created the First Bank of America to issue notes and make commercial loans 7. The bank had gained a eight percent interest annually, but in 1805 Jefferson declaredthe Bank as unconstitutional. 8. The bank wasn’t renewed in 1811 when its charter expired, so instead states began to create their own banks. 9. In 1816, Congress created their 2nd Bank of the United States, but at that time there were 246 state-chartered banks with tens of thousands of stockholders and $68 million in banknotes and circulation. Yet many of the banks were inadequate and shady. 10. The banking policies saved the United States from the Panic of 1819, but the major cause of the Panic was the 30% drop in world agricultural prices after the Napoleonic War. 11. Between 1818 and 1819, the price of cotton per pound fell from 34 cents to 15 cents in South Carolina. When this happened, planters, and farmers, couldn’t repay their debts to the merchants, storekeepers, and banks, bankrupting those businesses. 12. The Panic of 1819 showed that artisans, merchants, and farmers depended for prosperity on the market economy. 13. Before 1800, New England artisans worked part