An untoward combination of circumstances in Europe arising about this time proved a great advantage to American commerce. The French Revolution was in progress and had moved beyond control. Thrones were in danger. France had been attacked by Germany in the interest of the "divine right of kings." England became involved, and in 1793 declared war upon France. The effect of this war was to further stimulate American manufactures and shipping. Each of the belligerent nations needed the provisions and stores which the Americans now stood ready to furnish. Under the colonial systems of England and France commerce with their colonies was confined to their own ships, but the British navy swept French merchantmen from the seas and visa versa, and hence the colony of Louisiana could render France no help in the form of supplies. The French government therefore threw open French ports to American vessels. The sugar of the West Indies, the coffee and hides of South America, and the provisions of America were thus earned securely into France, thus greatly increasing our foreign commerce.

The Middle and Southern states had, as colonies, long been raisers of cotton, but very little of this useful fiber had been exported until after the adoption of the Constitution, owing chiefly to the difficulty of separating the seed from the fiber. This process has been accomplished by slow and tedious hand labor until 1794, when Eli Whitney invented his cotton gin, one of the first and most useful inventions of America. By means of this machine cotton became a more thoroughly marketable article, and its production was vastly stimulated. The development of cotton raising in the south and its manufacture in the north began with this invention, and continued to develop until it has become in recent years one of the largest articles of export among our raw products.

In the decade from 1790 to 1800 the population of the republic increased from 4,000,000 to 5,000,000. Frenchmen came from San Domingo and other West Indian Islands; Irishmen from what they regarded as oppressions in Ireland; Scotchmen, Englishmen and Germans came to enjoy the advantages of popular government and escape the discontent, monarchial oppressions and wars of Europe. These foreigners were rapidly assimilated, and went to work to acquire land and better their condition. The tide of immigration which set in thus early in the history of the republic continued to flow hither during the century following. Not being able to compete with the slave labor of the south, these emigrants avoided that section, and settled along the east and west lines, developing the great West and carrying their skill and thrift to the borders of civilization.

The most important event in the early history of the republic was the Louisiana purchase, made during the administration of President Jefferson, by which the United States acquired title to all the land from the Mississippi to the Rocky Mountains and from the Gulf of Mexico to British America. This vast domain had originally belonged to France, but in 1762 that nation transferred it to Spain. The Mississippi River was the natural outlet to the Ohio valley and the northwest, and since transportation over the Alleghany Mountains was exceedingly difficult owing to the lack of suitable roads, it became highly necessary that the western settlers should have the great waterway to the gulf kept open. The Spanish officials at New Orleans were vexatious, and hampered the commerce of the Americans with useless restrictions. In 1800 the Territory of Louisiana was ceded again to France, and President Jefferson soon after sent Mr. Monroe to Paris as a special envoy to act in conjunction with our resident minister, Mr. Livingston, and if possible purchase New Orleans. Two million dollars were allowed for the purchase. Napoleon was in need of funds to prosecute his war with England, and knowing that he could not protect his colony while England ruled the sea, proposed to sell the entire province of Louisiana for $15,000,000.* The commission had no authority to make the purchase at such a price, and it was impossible to communicate with the government at Washington in time to carry through the deal, so they assumed the authority, accepted the offer, and trusted to the President and Congress to ratify their acts. This purchase not only secured the desired outlet to the sea by water, but doubled our national area and added immensely to the wealth and resources of the nation.

In 1807 Fulton built his first steamboat on the Hudson River, and demonstrated the use of steam in propelling ships. This invention exercised a vast influence upon the future inland commerce of the United States, and was a potent element in developing the resources of the country. It was of the greatest importance that our numerous waterways should be utilized as channels of commerce, but this was impossible until the application of steam power was invented. Prior to this event travel in the interior was slow. By land the pioneer wagons were heavy and the roads dreadful; by water the farmers near the rivers floated their produce down to market in flat boats, and poled them up again. Four months were consumed in making the return journey from New Orleans to St. Louis. The effect was that the farmer paid dearly for all articles which he bought, but received little for his produce. In 1811 Fulton put his first steamboat on the Ohio River at Pittsburg, and the results were marvelous. By 1815 the time from New Orleans to St. Louis was 25 days and in 1823 it was reduced to 12 days. Freight rates were rapidly reduced and prices of commodities consumed by the settlers correspondingly fell; while on the other hand grain and provisions, being assured a more accessible market, rose in price. Lines of packet steamers were established on all the principal rivers, and developed as rapidly as the growth of the carrying trade would justify, until the river commerce of the country became very extensive and handsome passenger boats were plying on our rivers. This means of transportation proved of immense value in the development of the country, and continued until the demand arose for more rapid transportation, and the general era of railroad building set in soon after the Civil War.