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Unformatted text preview: Rise of Market Economy 15/04/2009 13:06:00 I. Rise of Market Economy • Commercial Agriculture • Spurred economy • Cotton, wheat, tobacco • Farmers turned to speculators • Panic of 1819 • Bought as much land/seed as they could get their hands on • Borrowed on short-term credit • Products plummeted • Too dependent on loose and short term debt • Lessons of 1819: • Transportation has to be examined closely • The cost of transportation • Wanted to cut the cost of transportation to the bone • Keep prices low • Believed they could keep a larger share of value from their crops • Merchant capitalists wanted to figure out a way to insure that the products would reach its destination in a timely way • West of the Appalachians, most of the rivers ran North to South II. Transportation Revolution • Large “trucks” with large wheels • Dragged by mules • Huge mule market • Wheels would break • Capacity was always inadequate • Robert Livingston and Robert Fulton • Introduced the first steamboat • The Clermont in 1807 on the Hudson • Flat boats • Could be many acres large • Could only carry produce down river...
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- Spring '07