President Encyclopedia 1809-1829

President Encyclopedia 1809-1829 — page 5
8 The Growing Nation Other features of a modern economy also emerged Printers in Boston went on strike in 1809 and in other cities in the following years to protest low wages and poor working conditions Workers devoted to improving their members work life organized and created America’s first labor unions The number of banks in America increased greatly in the early 1800s In 1791 Congress following Secretary of the Treasury Alexander Hamilton’s recommendation had created the Bank of the United States to handle the government’s financial transactions The Bank also lent money to private businesses Its success led to the creation of many state banks In 1791 there were only three banks in the whole United States By 1830 there were hundreds of banks Banks were essential to the financing of new business and to overall economic expansion But not all the new banks were well run Management of the Bank of the United States was so poor that Congress did not renew its charter in 1811 Congress soon realized its mistake and created the Second Bank of the United States in 1816 At first the Second Bank also ran poorly Its managers reckless policies helped create the Panic of 1819 during which many businesses failed and individuals went hopelessly into debt Along with the increase in the number of banks came an increase in the number of corporations A corporation is a form of business organization People who wish to invest money in a business can form a corporation The advantage to this is that should the business not succeed the most the investors can lose is the money they have contributed to the corporation Any other money or property they may have is protected Many of these new corporations engaged in building roads and canals Words to Know corporation kor-puh-RAY-shuhn A form of business organization that limits the losses that investors can suffer federal government FED-ur-uhl GUHV-urn-muhnt The national or central government of the United States labor unions LAY-bur YOON-yuhns Organization of workers devoted to improving the members wages and working conditions Secretary of the Treasury Alexander Hamilton