Expansion and Conflict

by William Edward Dodd

Without educational advantages, save in the most rudimentary way, without any fair prospect of ever becoming independent or of materially improving their status, these mill workers kept up the daily round of labor, earning the millions which were laying the foundations of a new and greater East, eventually a new United States, and voting, in so far as they exercised the right of suffrage at all, for the cause of their masters, against the “slave-drivers” of the South and for protection to manufactures as a means of defending themselves against their poorer brethren of Europe. As to their total number, we have no more reliable estimate than that of McMaster, who says there were not less than two million operatives in all lines of industry in 1825. Nobody thought of these people as slaves; and most people thought they must be happy to escape the dull life of the country, and that fourteen hours' work was a normal human exercise. A worthless father who lived on the labor of little children of his own begetting was counted lucky to have children to work for him; and the girl who entered the primrose path as a possible way of escape from her hard surroundings was then as now promptly ruled out of the pale of human sympathy and consigned to the lake of everlasting fire and brimstone.

Another great interest had grown to immense proportions in the East of 1830—the financial. Beginning with the flush times of Hamilton's leadership, the financier had grown in power and influence, sometimes purposely organizing a monopolistic control over the money of the public, as in the case of the Suffolk Bank of Boston, sometimes mercilessly robbing depositors, as in the notorious defalcation of the Derby Bank of Connecticut in 1825, until it had become a serious national problem not merely to regulate the currency of the country, but to curb the rapacity of those who, under one pretense or another, violated the laws of all the States in order to heap up hasty fortunes. In 1815 there had been 208 banks in the country, mainly in the Middle States and New England, with a capital of $82,000,000; at the end of the year 1833 there were 502 banks with a capital of $168,829,000. At the end of the second war with England, there were $17,000,000 of specie in the banks; eighteen years later, when the capital had doubled, loans had greatly increased, and notes in circulation were $61,000,000, there were still just $17,000,000 of gold and silver in all the banks.

The business of the East naturally tended to the concentration of the financial resources of the country within her towns, but the location of 414 of the 502 banks of the country in the narrow section under consideration would seem to indicate something more than a natural tendency. The six million people of the East enjoyed three times as many banking facilities, when we consider the amount of money in circulation, as the seven million Southerners and Westerners. New York alone had a banking capital of $28,000,000, Massachusetts $21,000,000, and the per capita circulation of money in the East was nearly $9, while that of the West was $2. To him that hath shall be given is a familiar axiom which seemed doubly true of the United States at the time of Jackson's accession to power.

All signs pointed to a congestion of the financial resources of the whole country in Philadelphia, New York, and Boston. The great National Bank, with its $35,000,000 capital and loans of $40,000,000, was located in Philadelphia; New York City had not so strong a banking system, but the growth of her real estate values was $40,000,000 in the five years preceding 1831; and the tax valuation of the property of Suffolk County, Massachusetts, in which Boston was located, was $86,000,000 as against $208,000,000 for the whole State.

The masters of this region were reaching out for the commerce of the West through the Erie Canal, which made northern and central Ohio the hinterland of New York; through the Baltimore and Ohio Railroad and the Chesapeake and Ohio Canal, which were aimed at western Virginia and the Ohio Valley. The shipping interests of New England and New York did the same for the South, whose millions of bales of cotton all went north or to Europe in eastern-made and eastern-owned vessels. And while these enterprising leaders sought to control the commerce of the country, they also knitted together their own towns and river valleys by canals and turnpikes. Boston and New Haven were almost united by canals and railroads in 1830; the Delaware and the Susquehanna were paralleled far into the interior in order to bring the produce of the country to the manufacturing centers. And a railway connected Philadelphia with the rich Susquehanna Basin, whose commerce had hitherto been controlled by Baltimore. Pittsburg was actually tied to the East before 1835 by water and railroad routes. Trade, manufactures, and finance; railways, canals, and home markets were the great subjects of conversation in the East, just as cotton, slaves, and land formed the trinity of Southern thinking.

The men who owned the industrial plants and managed the large banks and projected the ambitious railway and canal systems, the stockholders and the officers, the factors and storekeepers, were drawn from the same sturdy New England and Middle States stock, the small farmers and little merchants who had composed the democracy which had fought the Revolution. Retired sea-captains and owners of sailing-vessels joined the new régime as profits came in and the art of watering stock was understood. Throughout the East, from Chesapeake Bay to Augusta, Maine, wherever there were good waterfalls, great brick buildings were rising story upon story, proclaiming the new prosperity and enticing the hordes of workers so necessary to the new system. The old-fashioned mansions of retired traders or prosperous shipbuilders, which had so long adorned the hills of the coast towns, were giving way to the larger houses of the captains of industry who built up the inland towns or created the suburbs of the greater cities.

Like the planters of the South, with their two million slaves, these able and prosperous makers of a new era in the East had their two million operatives, and as in the planting districts, the working day was from sun to sun. Carrying the comparison further, the industrial and financial region was relatively small, embracing much less of the area of the country than did that of the black belt.[3]

From southeastern Maine to Boston, Providence, New Haven, New York City, and on to Baltimore, with a Western extension to Pittsburg, this irregular, now widening, now contracting, strip of country extended. It embraced the strategic positions, the falls of the rivers, the places whence ships could sail laden with the products of the industries or return with the raw materials necessary to their operation; it included the old commercial towns where the surplus capital of the East had been collected and where now gathered the populations which composed the districts whose spokesmen exerted the real strength of the North in the National Congress. It was this articulate East, the growing power of industry and finance, the promise of greater prosperity to come, which drew to it, like iron filings to a magnet, the talented and the ambitious men of the time, just as the black belt was the articulate part of the South for which men of ability and influence spoke in the national assemblies which gathered from year to year in Washington.

But the older mercantile and seafaring interests sometimes resisted the industrial movement and made precarious alliances with the South on the basis of a national free-trade policy. The great Boston merchants actually turned to Hayne, of South Carolina, in 1827, to represent them and their cause in Congress. The Winslows, Goddards, and Lees who thus appealed to a Southern Senator were representatives of the older order, of the same declining class in New York and Philadelphia which had in years past controlled affairs in the East and made alliances with the aristocratic leaders of the South.