FREE ESSAY ON GROWTH OF NYS BUSINESS

GROWTH OF NYS BUSINESS

Growth of NYS Business
For a number of reasons, business enterprise in New York grew by leaps and bounds between
1825 and 1860.
New York's growth between the years 1825 and 1860 can be attributed to a number of
factors. These include but cannot be limited to the construction of the Erie Canal, the
invention of the telegraph, the developed of the railroads, the establishment of Wall
Street and banking, the textile, shipping, agriculture and newpaper industries, the
development of steam power and the use of iron products. On October 26, 1825 the Erie
Canal was opened. The canal immediately became an important commercial route connecting
the East with the Ohio and Mississippi Valleys. With tht time of travel cut to one-third
and the cost of shipping freight cut to one-tenthof the previous figures, commerce via
the canal soon made New York City the chief port of the Atlantic. The growing urban
population and the contruction of canals, railroads and factories stimulated the demand
for raw materials and food stuffs. In 1836 four-fifths of the tonnage over the Erie Canal
came from western New York (North, 105). Much of this cargo was in the form of
agriculture goods.
The farmer become a shrewed businessaman of sorts as he tended to produce whatever
products would leave him the greatest profit margin. The rise of the dairy industry was
by far the most significant development in the agricultural history of the state between
1825 and 1860. Farmers discovered that cows were their most relliable money-makers, since
both the domestic and foreign market kept demanding more dairy products (Ellis, 273).
Price flucuations became increasingly important for the farming population between 1825
and 1860. Prices rose from the low level of the early 1820's until the middle 1830's and
the farmer's shared in the general prosperity (271). Although the rapid industrialization
and urbanization of New York had a great deal to do with the success of agricultural
markets sporadic demand from aboard as a result of the Irish famine, the Crimean War and
the repeal of the Corn Laws in England also contributed(North, 141). During this period
Ohio, Pennsylvania, New York and Virginia, in that order were the leading wheat growing
states. Between the years 1840 and 1850 New York ranked first in the production of beef.
The absence of politic party differences on issues related to the the growth of democracy
existed in regard to the foremost economic questions, there was absolutely no partisan
division evident in the movement to incorporate new financial institutions; rather, the
primary factors, which the legislators examined, concerned value, feasibility, profit and
the location within the state. Dozens of turnpike proposals, most of which werebacked by
the Republicans, passed the legislature; but the Federalists cooperated, seeing the
chance for profits. Prominent Federalists like John Rutherfurd, John Neilson, William
Paterson, John Bayard, and James Parker invested susstanial sums in the turnpike
business. There were numerous Republicans who were also vitally interested in the
turnpike business (Kass, 150). Bipartisan support also accompanied plans for the
construction of bridges and canals. All of the parties contained a large number of
adherents from from every level of economic well-being in society. This helps to expain
the absence of any clear-cut party differences on the major economic issues of the such
as the chartering of banks, the protestive tariff, internal improvements, the development
of manufacturing, and the promotion of superior agricultural techniques. Each politcal
faction had segments both pro and con on most of these questions, and, inall cases it was
opprtunism, the desire for profits, which was decisive in determining one's political
position on these economic issues(175). New York's economic growth can also be attributed
to the invention of the cotton gin. Cotton had become a boom crop in the south, however,
plantation owners were either too engrossed in the production of their crops or too
unschooled in business techiniques to handle its distribution. Some just did not want to
be bothered. This opened thee door for agents representing New York shipping firms who
were only too happy to help them out - for a fee. This scheme not only earned the New
York merchants a handsome profit but also solved the problem that without cotton the ship
owner would be hards preesed to find adequate cargoes for their return voyages. And so it
came about that New York in the nineteeth century became the nation's foremost shipper of
cotton(Allen, 108-109). The cotton shipments entering New York harbor were brought to
textile mills for processing. A group of New york capitalist estashlished the Harmony
Cotton Manufacturing Company in Cohoes. A heavy investment of capital caused the rapid
growth of the factory system, which was mass production with integration of processes and
produced a high quality cotton cloth as well as other textiles(Ellis, 266).
This set the scene for an industrial society by widening the market, manufacturing
increased rapidly throughout this period, although development varied enormously from
industry to industry. Often developments were due to improvements in technical processes
such as the adoption of steam power and the use of anthracite coal instead of charcoal by
the iron industry. The metallurgical industries emplyed thousands for skillful workers
who produced a variety of iron and steel products, such as farm machinery, pistols,
sewing machines, clocks and stoves. These products were being produced using standard
parts and multiple quantities(267). The iron industry made rapid progress as a result of
this processas well as the expansion of the railroad industry which created increased
demand for iron products. It can therefore be surmized that often growth in a one
industry would cause increased demand for another industry's product, hence the boom of
both industries. The growth of manufacturing was the main impetus to expansion, the
industrial base broadened during this period, reflecting the overall improvement in
factor endowments for manufacturing. Equally important was the cost decline in
transportation, which opened up new sites for manufacturing development and reduced
transport costs for existing firms (North, 208). Production increases required a retail
market. In November of 1858, R.H. Macy established a department store in New York City
successfully implementing a fixed price policy on a large scale developed by small New
York stores since 1840 establishing a n American retail sales custom (Spann, 125).
Some additional elements that should mentioned include the founding of the New York
Tribune by Horace Greely, the development of the telegraph by Samuel Morse, the
colaboration of six New York newspapers who joined to pay telegragh costs of foreign news
relayed from Boston, and the establishment of a New York clearinghouse to facilitate
banking operations.
Research reveals that the reasons for the success of New York's business enterprise
between 1825 and 1860 were enumerous with no reason weighting more heavily than another
with the exception of as Ellis states that, Plank roads, railroads, canals,
steamships-all had revolutionary effects on the economy of New York. The predominately
self-sufficent farmer of pioneer days was gradually tramnsformed into a specialized
commercial farmer sensitive to every shift in the markets. The isolation of many rural
communities was breaking down as citzens and goods flowed freely in and out. Merchants in
both the upstae and metropolitan region, recognizing the crucial role of canals and
railroads, looked with satisfaction upon the finest and most actively expanding
transportation network in the country. New York grew steadily in population, wealth, and
trade largely to the splendid system of water and rail transportation promoted by its
citizens in this period, but all entwinding to create a boom of business expansion during
this period. It appeared as if we were developing not only as a state but as a civilized
nation whenever this development would be curtailed by the onsloat of a civil war.
Bibliography
Allen, Oliver E. New York, New York: A History of the World's Most Exhilarating and
Challenging City. New York: Macmillan, 1990.
Ellis, David M., et al. A History of New York State. Ithaca: Cornell UP, 1967.
Kass, Alvin. Politics in New York State, 1800 -1830. Syracuse: Syracuse UP, 1965.
North, Douglas C. The Economic Growth of the United States, 1790-1860. New York: Norton,
1966.
Spann, Edward K. The New Metropolis: New York City, 1840-1857. New York: Columbia UP,
1981.