FLORIDA PURCHASE

• Beginning in 1795 a treaty was established with Spain allowing:
• The use of the Mississippi River through Spanish Territory
• Florida was firmly Spanish Territory
• Spain & US would control their own Native populations and prevent them from attacking each other’s "property."
• 1810’s: Spain faced rebellions in South American territories
• Attempts to hold them distracted them from Florida
• Seminole Indian tribe attacked Georgia
• Andrew Jackson urged President Monroe to take possession of Florida, Monroe declined
• Jackson attacks the Seminoles in Florida (anyway)
• Spain is not happy – the US, not wanting to disappoint the public, who applauded Jackson, accused Spain of breaking its treaty (i.e. allowing the Seminoles to attack)

TREATY:

• Spain gave up (or ceded Florida to US)
• Relinquished its claim on the Pacific Northwest

Established boundaries in the Southwest, after the Louisiana Purchase (giving Spain what is now Texas and the Southwestern US)

• Fueled by inventions (previously mentioned), transporting goods
• New western lands produced farm lands, New England land turned to manufacturing
• 1813: Francis Cabot Lowell built the world’s first centralized textile factory
• all the tasks in making a product were in one place
• using the flow of rivers to power the machinery
• thus beginning a new age in the North, manufacturing
• centralizing the work, increased production
• 1817 - New England textile mills produced 4 million yards of cloth, 1840 – 323 million
• Free Market or Free Enterprise System, companies compete for profits
• Capitalism, people rewarded for finding/creating better, faster, efficient ways of doing business
• Household Economy, the household produces its goods; used by the household
• Market Economy, industry produce goods, made by "specialized" workers who are paid; goods sold for a profit
• "Going to work" gets a new definition (in the 1800’s it begins to mean working outside the home)
• Americans begin to SHOP, by mid 1800’s homes have many "purchased" items – decorations & furnishings (silverware & furniture) -- spinning wheels & looms fell silent, as women purchased fabric to make clothing

• They provide capital for investment
• The birth of a bank: groups of private investors receive charter from a state to start a bank
• Banks loan money and receive interest on the loan
• Uses the money customers deposit for the loans
• Help market economy by providing money for businesses to expand
• No restrictions, no insured accounts = risk
• Bad loans or too many loans caused loss of customer’s savings – as customers panic, they want their money out of the bank, called a bank run – money is not technically available, since it is loaned out or invested in property = bank failure

Manifest Destiny

• The people of the United States felt it was their mission to extend the "boundaries of freedom" to others by imparting their idealism and belief in democratic institutions to those who were capable of self-government. It excluded those people who were perceived as being incapable of self-government, such as Native American people and those of non-European origin.
• The United States was experiencing a periodic high birth rate and increases in population due to immigration. And because agriculture provided the primary economic structure, large families to work the farms were considered an asset. The U.S. population grew from more than five millon in 1800 to more than 23 million by mid-century. Thus, there was a need to expand into new territories to accommodate this rapid growth. It's estimated that nearly 4,000,000 Americans moved to western territories between 1820 and 1850.
• The United States suffered two economic depressions -- one in 1818 and a second in 1839. These crises drove some people to seek their living in frontier areas.
• Frontier land was inexpensive or, in some cases, free.
• Expansion into frontier areas opened opportunities for new commerce and individual self-advancement.
• Land ownership was associated with wealth and tied to self-sufficiency, political power and independent "self-rule."
• Maritime merchants saw an opportunity to expand and promote new commerce by building West Coast ports leading to increased trade with countries in the Pacific