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Economic growth fueled these demographic changes. The population doubled every twenty-three years; the gross national product doubled every fifteen. Economic historians do not agree when this "intensive" rate of growth began, for the data to measure it are fragmentary before 1840. What remains clear is that until the early nineteenth century economic growth was "extensive"—virtually the same as population growth. At some point after the War of 1812—probably following recovery from the depression of 1819–23—the economy began to grow faster than the population, producing an estimated per capita increase of national output and income averaging 1.7 percent annually from 1820 to 1860.5 The fastest rates of growth occurred in the 1830s and 1850s, interrupted by a major depression from 1837 to 1843 and a lesser one in 1857–58.
Although most Americans benefited from this rise of income, those at the top benefited more than those at the bottom. While average income rose 102 percent, real wages for workers increased by somewhere between 40 and 65 percent.6 This widening disparity between rich and
3. An improved diet and standard of living, which should have lowered the death rate more than this, were partly offset by urbanization and immigration. Mortality rates were always higher in cities before the twentieth century, and many immigrants suffered an initially higher death rate as they entered a new disease environment. Large numbers of Irish immigrants arrived with lowered resistance because of malnutrition; they also crowded into the poorest districts of cities.
4. McClelland and Zeckhauser, Demographic Dimensions, 101, 108–9; Robert V. Wells, Revolutions in Americans' Lives: A Demographic Perspective on the History of Americans, Their Families, and Their Society (Westport, Conn., 1982), 92–104.
5. For a summary of recent research on this question, see Susan Lee and Peter Passell, A New Economic View of American History (New York, 1979), 52–62; Robert E. Gallman, "Economic Growth," in Glenn Porter, ed., Encyclopedia of American Economic History, 3 vols. (New York, 1980), 133–50; and Stanley L. Engerman and Robert E. Gallman, "U.S. Economic Growth, 1783–1860," Research in Economic History, 8 (1983), 1–46.
6. This is the range of estimates contained in three studies of the subject, all of them based on fragmentary data: Alvin H. Hansen, "Factors Affecting the Trend of Real Wages," American Economic Review, 15 (1925), 27–41; Donald R. Adams, Jr., "Prices and Wages," in Porter, ed., Encyclopedia of American Economic History, 229–46, which summarizes all relevant research up to the time of its writing; and Donald R. Adams, Jr., "The Standard of Living During American Industrialization: Evidence from the Brandywine Region, 1800–1860," Journal of Economic History, 42 (1982), 903–17.
poor appears to have characterized most capitalist economies during their early decades of intensive growth and industrialization. American workers probably fared better in this respect than those of most European countries. Indeed, a debate still rages over whether British workers suffered an absolute decline of real wages during the first half-century of the industrial revolution.7
Improved transportation was a prerequisite of economic development in a country as large as the United States. Before 1815 the only cost-efficient means of carrying freight long distances were sailing ships and downriver flatboats. Most American roads were rutted dirt paths all but impassable in wet weather. The cost of transporting a ton of goods thirty miles inland from an American port equalled the cost of carrying the same goods across the Atlantic. To travel from Cincinnati to New York took a minimum of three weeks; the only feasible way to ship freight between the same two cities was down the Ohio and Mississippi rivers to New Orleans and then by salt water along the Gulf and Atlantic coasts—a trip of at least seven weeks. It is not surprising, therefore, that America's transatlantic trade exceeded internal commerce, that most manufactured goods purchased in the United States came from Britain, that artisans sold mainly custom goods in local markets, that farmers living more than a short distance from navigable water consumed most of what they raised—and that the economy grew little if any faster than population.
All this changed after 1815 as a result of what historians, without exaggeration, have called a transportation revolution. Private companies, states, even the national government financed the construction of all-weather macadamized roads. More important, New York state pioneered the canal era by building the Erie Canal from Albany to Buffalo, linking New York City to the Northwest by water and setting off a frenzy of construction that produced 3,700 miles of canals by 1850.
7. For a summary of that debate for Britain and other countries, see John Komlos, "Stature and Nutrition in the Habsburg Monarchy: The Standard of Living and Economic Development in the Eighteenth Century," AHR, 90 (1985), 1149–51. See also Donald R. Adams, Jr., "Some Evidence on English and American Wage Rates, 1790–1830," Journal of Economic History, 30 (1970), 499–520.
During those same years, steamboats made Robert Fulton's dream come true by churning their way along every navigable river from Bangor to St. Joseph. The romance and economic importance of steamboats were eclipsed in both respects by the iron horse in the 1850s. The 9,000 miles of rail in the United States by 1850 led the world, but paled in comparison with the 21,000 additional miles laid during the next decade, which gave to the United States in 1860 a larger rail network than in the rest of the world combined. Iron ribbons breached the Appalachians and bridged the Mississippi. An even newer invention, the telegraph, sent instant messages along copper wires and leaped beyond the railheads to span the continent by 1861.
These marvels profoundly altered American life. They halved overland transport costs by road to 15 cents a ton-mile. But roads soon became unimportant except for short hauls and local travel. Canal rates dropped to less than one cent a ton-mile, river rates even lower, and rail charges to less than three cents by 1860. Despite higher rates, the railroad's greater speed and dependability (most canals froze in winter; rivers became unnavigable in low water or floods) gave it an edge. Towns bypassed by the tracks shriveled; those located on the iron boomed, especially if they also enjoyed water transport. Springing from the prairie shores of Lake Michigan, Chicago became the terminus for fifteen rail lines by 1860, its population having grown by 375 percent during the previous decade. Racing at breakneck speeds of thirty miles an hour, the iron horse cut travel time between New York and Chicago from three weeks to two days. Train wrecks soon exceeded steamboat explosions as a prime cause of accidental death. But together these modes of transport reduced the shipment time of freight between, for example, Cincinnati and New York from fifty days to five. Cincinnati became the meatpacking capital of the United States. The difference between the wholesale price of western pork in Cincinnati and New York declined from $9.53 to $1.18 a barrel; the difference in the wholesale price of western flour between the same two cities dropped from $2.48 to 28 cents.
The telegraph provided instant quotations on these and other price changes all over the country. Along with the railroad and with technological innovations in printing and paper-making, the telegraph vastly increased the influence of newspapers, the country's principal medium of communication. The price of a single issue dropped from six cents in 1830 to one or two cents by 1850. Circulation increased twice as fast as population. The "latest news" became hours rather than days old. Fast trains carried weekly editions of metropolitan newspapers (like Horace Greeley's New York Tribune) to farmers a thousand miles away, where they shaped political sentiments. In 1848 several major newspapers pooled resources to form the Associated Press for the handling of telegraphic dispatches.8
The transportation revolution refashioned the economy. As late as 1815, Americans produced on their farms or in their homes most of the things they consumed, used, or wore. Most clothing was sewn by mothers and daughters, made from cloth that in many cases they had spun and woven themselves by the light of candles they had dipped or by natural light coming through windows in houses built of local materials from a nearby sawmill or brickyard by local carpenters or masons or by the male members of the
household. Shoes were made by members of the family or by the village cordwainer from leather cured at a local tannery. Blacksmiths forged the tools and farm implements used in the community. Even firearms were built with handicraft skill and pride by a nearby craftsman. In larger towns and cities, master tailors or shoemakers or cabinetmakers or wheelwrights presided over small shops where they worked with a few journeymen and an apprentice or two who turned out fine custom or "bespoke" goods for wealthier purchasers. In an age of slow and expensive overland transport, few of these items were sold more than twenty miles from where they were made.
This pre-industrial world could not survive the transportation revolution, which made possible a division of labor and specialization of production for ever larger and more distant markets. More and more farmers specialized in crops for which their soil and climate were most suitable. With the cash from sale of these crops they bought food and clothing and hardware previously made locally or by themselves but now grown, processed, or manufactured elsewhere and shipped in by canal or rail. To sow and reap these specialized crops, farmers bought newly invented seed drills, cultivators, mowers, and reapers that a burgeoning farm machinery industry turned out in ever-increasing numbers.
In towns and cities, entrepreneurs who became known as "merchant capitalists" or "industrialists" reorganized and standardized the production of a variety of goods for large-volume sale in regional and eventually national markets. Some of these new entrepreneurs came from the
8. An enormous literature has grown up to describe and analyze these changes in transportation and communications; perhaps the most vivid account remains George Rogers Taylor, The Transportation Revolution, 1815–1860 (New York, 1951).
ranks of master craftsmen who now planned and directed the work of employees to whom they paid wages by the day or by the piece instead of sharing with them the work of fabricating a product and the proceeds of its sale. Other merchant capitalists and industrialists had little or no prior connection with the "trade" (shoemaking, tailoring, etc.). They were businessmen who provided capital and organizing skills to restructure an enterprise in a more efficient manner. This restructuring took various forms, but had one dominant feature in common: the process of making a product (shoes or furniture, for example), which had previously been performed by one or a few skilled craftsmen, was broken down into numerous steps each requiring limited skills and performed by a separate worker. Sometimes the worker did his task with hand tools, but increasingly with the aid of power-driven machinery.
Highly mechanized industries like textiles went early to the factory system, where all operations were housed under one roof with a single source of power (usually water, sometimes steam) to drive the machines. This system enabled the New England textile industry to increase its annual output of cotton cloth from 4 million yards in 1817 to 308 million in 1837. In less mechanized enterprises like garment-sewing, operations took place in smaller shops with part of the process being "put out" to semiskilled workers—often women and children—in their homes and returned to the shop for finishing. This remained true even after the invention in the 1840s of the sewing machine, which could be operated in the home as well as in a factory.
Whatever the precise mixture of power machinery and hand tools, of central shop and putting out, the main characteristics of this new mode of production were division and specialization of labor, standardization of product, greater discipline of the labor force, improved efficiency, higher volume, and lower costs. These factors reduced wholesale commodity prices by 45 percent from 1815 to 1860. During the same years consumer prices declined even more, by an estimated 50 percent.9
By 1860 the nascent outline of the modern American economy of mass consumption, mass production, and capital-intensive agriculture
9. Adams, "Prices and Wages," in Porter, ed., Encyclopedia of American Economic History, 234. The choice of 1815 as a base year for measurement distorts the picture somewhat, for prices in that year were still inflated from the War of 1812. Even if one chooses the depression year of 1819, however, the decline of wholesale and consumer prices over the next 40 years was an impressive 24 and 41 percent respectively.
was visible. Its development had been uneven across different regions and industries. It was far from complete even in the most advanced sections of the country like New England, where many village blacksmiths and old-time shoemakers could still be found. On the frontier west of the Mississippi and on many internal frontiers in the older sections where the transportation revolution had not yet penetrated—the upland and piney woods regions of the South, for example, or the forests of Maine and the Adirondacks—it had scarcely begun. Many Americans still lived in a nearly self-sufficient handicraft, premarket economy not much different from what their grandparents had known. But the more advanced sectors of the economy had already given the United States the world's highest standard of living and the second-highest industrial output, closing in fast on their British cousins despite the latter's half-century head start in the industrial revolution.10
Those cousins had begun to sit up and take notice. The victory of America over fourteen British yachts in the 1851 race of the Royal Yacht Squadron shocked the world's leading maritime power. The race occurred during the international industrial exhibition at the Crystal Palace in London, where the products of American industry evoked great curiosity. It was not so much the quality of American muskets, reapers, locks, and revolvers that impressed Britons, but the way in which they had been produced by machine-made interchangeable parts. The concept of interchangeability was not new in 1851. Nor was it exclusively American. The French arms industry had pioneered interchangeable parts for muskets as early as the 1780s. But most of those parts had been fashioned by skilled craftsmen working with hand tools. Their interchangeability was at best approximate. What was new to European observers in 1851 was the American technique of making each part by a special-purpose machine, which could reproduce an endless number of similar parts within finer tolerances than the most skilled of craftsmen could achieve. The British named this process "the American system of manufactures," and so it has been known ever since.11
The interchangeability of parts fabricated by this "system" was often
10. Edgar Winfield Martin, The Standard of Living in 1860: American Consumption on the Eve of the Civil War (Chicago, 1942), 400–401.
11. The best studies of the origins of the American system of manufacturers are Nathan Rosenberg, ed., The American System of Manufactures (Edinburgh, 1969); David A. Hounshell, From the American System to Mass Production 1800–1932 (Baltimore, 1984); and Otto Mayr and Robert C. Post, eds., Yankee Enterprise: The Rise of the American System of Manufactures (Washington, 1981).
less than advertised. Hand-filing was sometimes necessary to attain an exact fit. Precision machines and gauges with tolerances within a thousandth of an inch came a generation or two later. Nevertheless, a test of ten randomly selected muskets each made in a separate year from 1844 to 1853 at the Springfield (Massachusetts) armory convinced British skeptics. A workman disassembled the parts, jumbled them in a box, and reassembled ten muskets flawlessly.
It was no coincidence that interchangeability was first perfected in small-arms manufacture. In wartime an army needs a large number of weapons in a hurry and must be able to replace damaged parts in an equal hurry. The U. S. government armories at Springfield and Harper's Ferry had gradually developed the process during the generation before 1850. The British imported American machinery to establish the En-field Armoury during the Crimean War. Samuel Colt also set up a revolver factory in London stocked with machinery from Connecticut. These events symbolized a transfer of world leadership in the machine-tool industry from Britain to the United States.
During the 1850s, delegations of British industrialists visiting America sent back reports on a wide variety of products manufactured by special-purpose machines: clocks and watches, furniture and a host of other wood products, nails and screws, nuts and bolts,
railroad spikes, locks, plows, and so on. "There is nothing that cannot be produced by machinery," Samuel Colt told a committee of Parliament in 1854—and by then the British were ready to believe him.12
The principles of mass production in America extended to what seemed unlikely practices: for example, the building of houses. This was the era in which "balloon-frame" construction was invented. Today at least three-quarters of American houses are built this way. Before the 1830s, however, houses were generally built in one of three ways: of logs rough-hewn by axes; of brick or stone; or of heavy timbers shaped by carpenters and joined by mortoise and tenon fastened with wooden pegs. The first was cheap but drafty and hardly satisfactory for a growing middle class of rising affluence; the latter two were solid but expensive and slow to build, requiring skilled masons or carpenters who were in short supply in overnight cities, like Chicago, that required a great deal of housing in a hurry. To meet these needs the first balloon-frame buildings appeared during the 1830s in Chicago and in Rochester, a boom town on
12. Eugene S. Ferguson, "Technology as Knowledge," in Edwin T. Layton, Jr., ed., Technology and Social Change in America (New York, 1973), 23.
the Erie Canal. These houses were constructed with the now familiar combination of machine-sawed boards fastened together with factory-produced nails to form the skeleton of a frame house. Machine-sawed siding and shingles and factory-made doors and window parts filled in the frame. Skeptics scoffed that these "balloon frames" would blow away in the first high wind. But in fact they were remarkably strong, for the boards were nailed together in such a way that every strain went against the grain of the wood. These houses could be put up in a fraction of the time and at a fraction of the cost of houses built by traditional methods. So successful was this "Chicago construction" that it spread quickly to every part of the country.13