Tuesday, July 23, 2019

US Economy 1600 - 1900


When the US was established in 1789, the colonies had been developing a free market economy since 1600. The investors wanted raw material and goods to export and the colonists wanted land they were denied in Europe, freedom and self-reliance. The economy was based on agriculture, fishing, hunting, milling, mining and foresting with a support services in towns. The economy was dependent on family businesses. The economic opportunities were hard to miss.

Children worked in the family business as farm workers and apprentices. They were “paid” with room and board and trained by their parents and older siblings. They were expected to be competent and industrius. They were homeschooled church-goers.

This economy worked, because parents worked to improve their businesses and raise their children to be responsible, moral and productive. The goal was self-reliance and compliance with biblical principles.

To address disasters like fires, floods, Indian raids and deaths, neighbors who were able helped each other voluntarily. They gathered as communities to fight Indians and bury the dead. They cleared land to build roads to connect farms to markets. There was no department of transportation in 1600.

They contributed their time to build barns and turned it into a social event and had fun doing it. Recipients of their generosity repaid them with gratitude. Wealthy neighbors actually donated materials. Everybody brought food and musical instruments. Charity was voluntary and abundant.

Farming communities battled drought, storms, crop failures and disease. The most knowledgable offered solutions to everyone freely. Families canned their produce in jars and shared food with neighbors freely. The objective was to get the community through whatever disasters befell them.

Governments were distant, but handled land titles, court cases and sought new markets for settlers’ goods.

In 1785, Congress approved the Land Ordinance allowing settlers to purchase land in the unsettled territories west of the 13 colonies. Land sold for $1 per acre or less.

In 1789, when the US was established, government got all of its revenue from Tariffs, fees and land sales. Government focused on expanding to territories to establish new States from the East coast to the Mississippi River and beyond with the Louisiana Purchase of 1803.

In the 1800s, the US land mass tripled and the steam engine allowed for the creation of railroads to replace wagons to send goods to new markets. Steam engines also allowed grain mills to be established without water or wind power.

Bank loans required collateral and farmers risked their land if they overborrowed. Banks raised capital and made loans to the most promising industries like railroads, oil, mining and steel and to develop refrigeration to preserve food and other tools and devices where demand could be assumed to be high.

By the 1830s the steam engine enabled investors to establish mechanized factories beginning to do mass production. Immigrants were needed to work in factories and build infrastructure. Water ports allowed large cities to develop to handle shipping of goods. Life in the territories continued with agriculture and other industries.

In 1850, Congress approved 3.75 million acres of unsold land in the Western Territories to develop a railroad system to connect the west coast and east coast. There were millions of acres of unsold land in the western territories and sale prices reached 12 cents per acre. The Oklahoma “land rush” offered 40 acres at no cost. The telegraph had been deployed and railroads built.

In 1872, Congress grabbed 3.500 square miles of State land from Wyoming, Montana and Idaho to establish Yellowstone National Park without filing an amendment allowing the federal government to own more land than they need to function. The citizens of these States objected, but Courts ignored this.

Technology developed rapidly from 1850 to 1900 and the inventions that began in the 1500s were turned into useful devices in high demand. The Transcontinental Railroad was completed in 1869 connecting Omaha NE with Sacramento CA and replacing the covered wagon. This allowed settlers to travel across the US in days rather than months.

If you have ever watched “Little House on the Prairie” or “Ann of Green Gables” you will have an accurate picture of life in the late 1800s.

My great grandmother, Iola Lewis Couch, was born in the 1850s and died in the 1950s. She witnessed the Civil War, the Industrial Revolution, the end of the Indian Wars, World War I, World War II and the modern eara with all of its time and labor-saving inventions. I visited her often with my grandfather and heard what it was like to live back then. They owned and operated a successful family farm near St. Louis Mo.

My grandfather, Leo B. Couch MD was born in the 1880s and died in the 1960s. He saw the advent of electricity, the automobile, airplane, telephone, radio, television, water treatment, penicillin, air conditioning and all of our modern conveniences. He grew up on the family farm and graduated from Barnes Medical College in St. Louis in 1905.

Life on the farm before 1920 was not mechanized. Plows were horse-drawn, planting, harvesting and other chores were manual.
The cost of a gasoline powered tractor in 1920 was $785 and had dropped to $395 in 1922.  Sales went from 1000 units a year to 200,000 units a year. Farming was mechanizing. 

Norb Leahy, Dunwoody GA Tea Party Leader


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