US History

U.S. History Study Guide

Cumberland, Maryland toWheeling, Virginia, linking the Potomac to the Ohio River. This original tract was referred to as the Cumberland Road. A network of privately owned toll roads and turnpikes began to reach out from every sizeable city. These roads were usually built only a few miles out and formed the nucleus for a growing road system in the new nation. The Canal Era The Erie Canal, linked the Hudson River at Albany, New York, to Lake Erie, and was completed in 1825. It became the first example of canal trade in The United States. Soon canals linked every major waterway system east of the Mississippi River. Canals were the first expansion project to obtain significant amounts of public funding. They ran east to west and tied the new West to the old East. 9.15 Industrialization The Putting Out System The Putting out System was a predecessor to the manufactories of the Industrial Revolution: thus it became an intermediate step which came between the agrarian age and the Industrial Age. In the Putting out System, a central agent, an owner or employer, would buy materials and then give them out to various people to work on. For example, an agent might give thread to women in a village. The women would weave the thread into cloth. The agent would return to gather the cloth and pay the women for doing the work and sell the finished product. The cotton industry was a "putting out system" which supplied some of the first jobs for women, working at home. The work was taken to the homes, which was the beginning or starting point of industry. The next evolution was to bring the employees under the same roof. This was more important when machinery came into play, one could not take the bigger machines home with them. The Rise of the Factory System The expansion of markets in Latin America and the Far East, as well as domestic markets, resulted from and helped to develop the factory system. Manufacturers and industrialists found it necessary to organize banks, insurance companies, and real estate firms to meet the needs of their growing business organization. The Corporation The corporate form with its limited liability and it’s potential for raising and utilizing large amounts of capital, became the typical type of business organization. By the 1830s, most states had enacted general laws for incorporating bigger business and factories.

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