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    <front>
        <journal-meta>
            <journal-id journal-id-type="publisher-id">ecos</journal-id>
            <journal-title-group>
                <journal-title>Economia e Sociedade</journal-title>
                <abbrev-journal-title abbrev-type="publisher">Economia e
                    Sociedade</abbrev-journal-title>
            </journal-title-group>
            <issn pub-type="ppub">0104-0618</issn>
            <issn pub-type="epub">1982-3533</issn>
            <publisher>
                <publisher-name>Instituto de Economia da Universidade Estadual de Campinas;
                    Publicações</publisher-name>
            </publisher>
        </journal-meta>
        <article-meta>
			<article-id pub-id-type="doi">10.1590/1982-3533.2025v34n1.266532</article-id>
			<article-id pub-id-type="publisher-id">00008</article-id>
			<article-categories>
				<subj-group subj-group-type="heading">
					<subject>Original article</subject>
				</subj-group>
			</article-categories>
			<title-group>
				<article-title>Money, the market, and the military origins of the American
					System</article-title>
				<trans-title-group xml:lang="pt">
					<trans-title>Dinheiro, o mercado e as origens militares do Sistema
						Americano</trans-title>
				</trans-title-group>
			</title-group>
			<contrib-group>
				<contrib contrib-type="author">
					<contrib-id contrib-id-type="orcid">0000-0002-8469-1229</contrib-id>
					<name>
						<surname>Trebat</surname>
						<given-names>Nicholas Miller</given-names>
					</name>
					<xref ref-type="aff" rid="aff1">**</xref>
				</contrib>
			</contrib-group>
			<aff id="aff1">
				<label>**</label>
				<institution content-type="normalized">Universidade Federal do Rio de
					Janeiro</institution>
				<institution content-type="orgdiv1">Instituto de Economia</institution>
				<addr-line>
					<named-content content-type="city">Rio de Janeiro</named-content>
                        <named-content content-type="state">RJ</named-content>
				</addr-line>
				<country country="BR">Brasil</country>
				<email>nicholasmtrebat@gmail.com</email>
				<institution content-type="original">Professor at the Instituto de Economia da
					Universidade Federal do Rio de Janeiro (IE-UFRJ), Rio de Janeiro, RJ,
					Brasil</institution>
			</aff>
			<author-notes>
				<fn fn-type="edited-by">
					<label>EDITOR RESPONSÁVEL PELA AVALIAÇÃO</label>
					<p><italic>Fábio Antonio de Campos</italic></p>
				</fn>
			</author-notes>
			<!--<pub-date date-type="pub" publication-format="electronic">
                <day>03</day>
                <month>12</month>
                <year>2024</year>
            </pub-date>
            <pub-date date-type="collection" publication-format="electronic">
                <year></year>
            </pub-date>-->
            <pub-date pub-type="epub-ppub">
                <season>Jan-Abr</season>
                <year>2025</year>
            </pub-date>
			<volume>34</volume>
			<issue>1</issue>
			<elocation-id>e266532</elocation-id>
			<history>
				<date date-type="received">
					<day>02</day>
					<month>08</month>
					<year>2022</year>
				</date>
				<date date-type="accepted">
					<day>24</day>
					<month>05</month>
					<year>2024</year>
				</date>
			</history>
			<permissions>
				<license license-type="open-access"
					xlink:href="https://creativecommons.org/licenses/by/4.0/" xml:lang="en">
					<license-p>This is an Open Access article distributed under the terms of the
						Creative Commons Attribution License, which permits unrestricted use,
						distribution, and reproduction in any medium, provided the original work is
						properly cited.</license-p>
				</license>
			</permissions>
			<abstract>
				<title>Abstract</title>
				<p>This article discusses the development of mass production technology in the
					United States. Like spaceflight and the computer, this technology grew out of a
					state-led effort to promote technical progress in weapons and defense
					production, giving rise to what was known in the 19<sup>th</sup> century as the
					“American System of manufactures”. Though the roots of this system in
					military-industrial policy are well-established, economists continue to suggest
					that technical progress in 19th-century America was a market-driven affair, led
					by entrepreneurs eager to reduce production costs and obtain patents. We offer a
					different perspective, based on extensive historical research on this topic. We
					discuss the origins of interchangeable parts technology in Europe, its early
					development in the United States, and its diffusion to consumer goods
					manufacturing after 1850. We also reflect on the reasons for the United States
					War Department’s interest in this technology after 1800.</p>
			</abstract>
			<trans-abstract xml:lang="pt">
				<title>Resumo</title>
				<p>Este artigo discute o desenvolvimento, ao longo do século 19, da tecnologia de
					produção em massa nos Estados Unidos. Assim como o computador e aviação
					espacial, essa tecnologia surgiu de um esforço liderado pelo estado para
					promover o progresso técnico na produção de armas e defesa, dando origem ao que
					era conhecido no século 19 como o “Sistema Americano de Manufaturas”. Embora as
					raízes desse sistema na política militar-industrial estejam bem estabelecidas,
					economistas continuam a sugerir que o progresso técnico na América neste período
					foi impulsionado por forças de mercado, liderado por empreendedores interessados
					em obter patentes e reduzir custos de produção. Oferecemos uma perspectiva
					diferente, com base em extensa pesquisa histórica já existente sobre este
					tópico. Discutimos as origens da tecnologia de peças intercambiáveis na Europa,
					seu desenvolvimento inicial nos Estados Unidos e sua difusão para a fabricação
					de bens de consumo após 1850. Também refletimos sobre as razões do interesse do
					Departamento de Guerra dos Estados Unidos nessa tecnologia após 1800.</p>
			</trans-abstract>
			<kwd-group xml:lang="en">
				<title>Keywords:</title>
				<kwd>Technology</kwd>
				<kwd>Machine tools</kwd>
				<kwd>Mass production</kwd>
				<kwd>Military procurement</kwd>
			</kwd-group>
			<kwd-group xml:lang="pt">
				<title>Palavras-chave:</title>
				<kwd>Tecnologia</kwd>
				<kwd>Máquinas-ferramentas</kwd>
				<kwd>Produção em massa</kwd>
				<kwd>Despesas militares</kwd>
			</kwd-group>
			<counts>
                <fig-count count="0"/>
                <table-count count="0"/>
                <equation-count count="0"/>
                <ref-count count="38"/>
            </counts>
		</article-meta>
	</front>
	<body>
		<sec sec-type="intro">
			<title>Introduction</title>
			<p>Industrial progress in the 19<sup>th</sup> century United States is widely attributed
				to the emergence of the “American system of manufactures”, a term coined by British
				visitors in the 1850s referring to manufacturing techniques characterized by the use
				of precision machinery and a complex division of labor. The American System was
				indeed a major historical development: it was the predecessor of modern mass
				production technologies. As Nathan <xref ref-type="bibr" rid="B33">Rosenberg
					(1977</xref>, p. 23) observed, the study of technical change in 19<sup>th</sup>
				century America requires an analysis of “those sectors usually regarded as defining
				what was so truly special about our technological history - the mass production of
				standardized products consisting of interchangeable component parts…a system so
				different from anything known in Europe that…it was widely referred to there as ‘The
				American System of Manufacturing’”.</p>
			<p>For generations, economic historians have argued the American System was a
				market-driven phenomenon rooted in unique economic, cultural and institutional
				conditions in the United States favoring the development of mass production
				techniques. Natural resource abundance, high wages, and a relatively egalitarian
				distribution of income, it is argued, encouraged American firms to substitute
				machines for skilled labor and introduce innovations such as interchangeable parts
				manufacturing (<xref ref-type="bibr" rid="B31">Rothbarth, 1946</xref>; <xref
					ref-type="bibr" rid="B15">Habakkuk, 1962</xref>; <xref ref-type="bibr" rid="B33"
					>Rosenberg, 1977</xref>; <xref ref-type="bibr" rid="B8">David 2004</xref>). The
				relative absence of trade unions in the United States, furthermore, it combined with
				a low-cost patent regime, among other “cultural and institutional factors”
				(Goodfriend; McDermott 2021, p. 36), stimulated the invention and diffusion of mass
				production techniques.</p>
			<p>America’s market-oriented approach to interchangeability would explain why this
				technology flourished in the United States rather than in France, where earlier
				efforts to promote this technology were driven by military concerns. France’s
				statist, military-oriented approach “contrasted sharply with American practice, in
				which money and the market drove the search for interchangeability, and progress
				took place in a wide range of industries” (<xref ref-type="bibr" rid="B20">Landes,
					1999</xref>, p. 303).</p>
			<p>Mainstream scholars assign a relatively minor role to the public sector in the
				development of mass production technologies. This, we argue, constitutes a
				significant oversight. Like spaceflight and the computer (<xref ref-type="bibr"
					rid="B24">Medeiros, 2004</xref>), the American System grew out of a state-led
				effort to promote technical progress in weapons and defense production. After
				decades of improvement through military sponsorship, consumer goods manufacturers
				were finally able to adopt the methods of interchangeable parts manufacture more
				fully.</p>
			<p>Though the roots of the American System in military-industrial policy are
				well-established (<xref ref-type="bibr" rid="B17">Hounshell, 1984</xref>; <xref
					ref-type="bibr" rid="B36">Smith, 1987</xref>), the influence of the traditional
				approach remains strong (Goodfriend; McDermott, 2021). Mainstream theorists continue
				to promote the idea that “money and the market” drove technical advance in
					19<sup>th</sup> century America, the public sector contribution being limited
				essentially to protecting property rights (<xref ref-type="bibr" rid="B1">Acemoglu;
					Moscona; Robinson, 2016</xref>). Missing are accounts that draw on the diverse
				historical research that exists on this topic and attempt to clarify the
				inadequacies persisting in the economic literature. That is the objective of the
				present research.</p>
			<p>This article contains six sections, in addition to this introduction. The first
				discusses the traditional approach in more detail, highlighting some of its
				shortcomings. The remaining sections offer an alternative approach. Section 2
				comments briefly on technological developments in 18<sup>th</sup> and early
					19<sup>th</sup> century Europe, of which the American System was a direct
				descendant. Section 3 discusses the early development of interchangeability in the
				United States, analyzing some of the reasons for the War Department’s interest in
				this technology. Section 4 discusses the role of federal procurement policy in
				encouraging the use of mass production techniques, while section 5 analyzes the
				adoption of these techniques in civilian manufacturing sectors after 1860. The final
				section concludes the paper.</p>
			<sec>
				<title>1 The traditional approach to the American System</title>
				<p>The traditional approach to the American System argues its rise was attributable
					to unique aspects of American factor endowments (capital and labor) and consumer
					demand. The basic argument, pioneered by <xref ref-type="bibr" rid="B31"
						>Rothbarth (1946)</xref> and <xref ref-type="bibr" rid="B15">Habakkuk
						(1962)</xref>, is that greater availability of land and natural resources in
					the United States drove up wages relative to Britain, encouraging firms to
					innovate with capital-intensive production methods as a means of lowering
					production costs<sup><xref ref-type="fn" rid="fn1">1</xref></sup>. Elaborating
					upon this argument, <xref ref-type="bibr" rid="B7">David (1975</xref>, p. 87-88)
					argued that 19th<sup>-</sup>century machinery consumed large amounts of raw
					material such as wood, hence greater access to cheap raw materials supplies made
					it less costly for American firms to use and experiment with machine-based
					methods of production. These incentives resulted in higher capital-output and
					capital-labor ratios in the United States, setting off a learning process that
					culminated in the rise of mass production techniques (<xref ref-type="bibr"
						rid="B9">David; Abramovitz, 2001</xref>, p. 148; <xref ref-type="bibr"
						rid="B8">David, 2004</xref>, p. 10-11).</p>
				<p>Mass markets for consumer goods and greater wealth and income equality, relative
					to Western Europe, allegedly played a key role in this process, for they implied
					a greater homogeneity of consumer preferences in the United States, encouraging
					firms to produce standardized goods with interchangeable parts. “Important to
					permitting this form of production was the scale of the demand for products and
					the impact of a relatively equal distribution of income upon the structure of
					demand” (<xref ref-type="bibr" rid="B11">Engerman; Sokoloff, 2000</xref>, p.
					378). Mass production technology was “encouraged by the [United States’] higher
					and more widely diffused incomes…By contrast, Europe’s lower and less equally
					distributed incomes initially restricted the market for [standardized] goods to
					its well-to-do classes…and thereby delayed the full application of American mass
					production methods” (<xref ref-type="bibr" rid="B9">David; Abramovitz,
						2001</xref>, p. 148-149).</p>
				<p>Various cultural and institutional factors are also believed to have encouraged
					mass production techniques. The “intelligence, ability and self-reliance of
					[American] mechanics” (<xref ref-type="bibr" rid="B12">Ferguson, 1962</xref>, p.
					15), combined with the absence of workers’ guilds, stimulated “inventive
					activity” and the sharing of technical knowledge. A democratic, low-cost patent
					system lowered financial barriers to innovation and allowed a market for patent
					licenses to flourish, facilitating the transfer of American System techniques
					across firms and industries (Goodfriend; McDermott, 2021, p. 36).</p>
				<p>Before turning to a critical analysis, brief remarks of a theoretical nature are
					in order. Access to cheap wood, iron ore, and energy supplies certainly
					benefitted American manufacturers over the course of the 19<sup>th</sup> century
						(<xref ref-type="bibr" rid="B19">Irwin, 2000</xref>), and no attempt will be
					made here to assess the claim that the machine technologies of this period
					consumed large amounts of such resources. Nor will it be denied that relatively
					high wages can drive mechanical innovations by encouraging firms to save on
					labor costs. Indeed, the notion that wage growth, and class conflict more
					generally, stimulates technical change did not originate with the economic
					historians surveyed here, figuring prominently in the writings of Ricardo
					([1817] <xref ref-type="bibr" rid="B28">1951</xref>) and <xref ref-type="bibr"
						rid="B23">Marx (1887)</xref>, as well as Hicks (1963), Braverman (1974) and
					Labini (1977), among others. Control over the workforce is a key variable in the
					capitalist division of labor, and firms tend to use technology in ways that
					strip skills and decision-making power away from production workers in order to
					concentrate power and profits within management. Braverman (1974) offered clear
					examples of this in his analysis of the spread of mass production techniques in
					the 20<sup>th</sup> century. The use of robotics and digital technologies in
					manufacturing and services industries today provides further examples.</p>
				<p>Nevertheless, there is an important difference between the capitalist decision to
					innovate, on the one hand, and the process by which revolutionary technologies
					such as computers or nuclear power emerge, on the other. The simple logic of
					“money and the market” (see Introduction) could never have resulted in
					technologies such as these, for they took years, often decades, to develop and
					involved massive costs and collective effort well beyond the means and ambitions
					of profit-oriented firms.</p>
				<p>The market-oriented approach to the rise of the American System cannot come to
					terms with several well-known facts. Resource abundance, a democratic patent
					system, and homogeneous consumer preferences are broad macroeconomic and
					institutional features affecting the economy as a whole. Thus, one might expect,
					had these features been in fact decisive, mass production techniques to have
					evolved gradually and in a wide range of industries, or at least more than one.
					This was not the case. Almost all of the basic machines, equipment and
					procedures required for interchangeable parts manufacturing originated in a
					single industry between 1810 and 1840 and were only adopted by other
					manufacturing sectors in the United States after decades of refinement.
					Armaments production can be “properly regarded as the original home of mass
					production technology” (<xref ref-type="bibr" rid="B33">Rosenberg,1977</xref>,
					p. 23-24). Or, as <xref ref-type="bibr" rid="B29">Roe (1916</xref>, p. 144)
					noted in his classic history of British and American machine tool makers: “In
					sketching the development of interchangeable methods in American shops, we have
					confined our attention to gun makers...They were by no means the only ones to
					have a part in this development, but they were its originators, they determined
					its methods, and developed most of the machines typical of the process.”</p>
				<p>There is no evidence, furthermore, to suggest American manufacturers were more
					capital-intensive (that is, used production techniques with higher capital-labor
					ratios) than British ones prior to 1860. To the contrary, there is strong
					evidence that British firms were the more capital-intensive (<xref
						ref-type="bibr" rid="B13">Field, 1985</xref>; <xref ref-type="bibr"
						rid="B19">Irwin, 2000</xref>), a result that holds even if one restricts the
					definition of “capital” (which may include structures such as buildings) to
					machines and machinery services. “British capital-labor ratios were not lower
					than the corresponding American ratios in 1860. They were higher. Even with
					respect to manufacturing machinery considered alone…Britain used more machinery
					services per unit of manufacturing output and per unit of manufacturing labor
					than did the United States” (<xref ref-type="bibr" rid="B13">Field 1985</xref>,
					p. 388). <xref ref-type="bibr" rid="B19">Irwin (2000)</xref> finds that the
					value of capital per worker in the United States was lower than that of Britain
					as late as 1879.</p>
				<p>The myth concerning greater American capital intensity derives most likely from a
					superficial interpretation of British government reports on American
					manufacturing published in the mid-1850s. In 1854, the British Parliament sent a
					group of observers to the United States, including prominent engineers, to
					inspect manufacturing establishments in this country. Based on the inspectors’
					accounts, the British Board of Ordnance published a report referring to an
					“American System of manufactures” (this is the origin of the term) characterized
					by the use of a variety of automatic, sequentially-operated machines.</p>
				<p>American machinery “employed by engineers and machine-makers…are whole behind
					those of England”, the report observed, but “in the adaptation of special
					apparatus to a single operation…the Americans display an amount of ingenuity,
					combined with undaunted energy, which as a nation we should do well to imitate.”
					“Among the many trades to which these remarks apply”, the report added, “that of
					small arms stands conspicuous” (<xref ref-type="bibr" rid="B4">Cesari,
						1970</xref>, p. 329).</p>
				<p>As can be inferred from this quote, there is little evidence, either in the
					British reports or elsewhere, to substantiate the notion that American machinery
					was generally superior to British machinery at this time. <xref ref-type="bibr"
						rid="B15">Habbakuk (1962, p. 5)</xref> himself noted that “[i]n many and
					probably in most fields of technology the English were still far ahead of the
					Americans”. Export figures reinforce this impression: British manufacturers, not
					American ones, dominated world markets for machinery and iron and steel products
					in the 19<sup>th</sup> century. American machinery exports were relatively
					insignificant prior to 1890 and grew slowly in this period (<xref
						ref-type="bibr" rid="B14">Floud, 1974</xref>, p. 62). <xref ref-type="bibr"
						rid="B35">Saul (1967, p. 114)</xref> notes that British textile machinery
					and marine engines of the late 19<sup>th</sup> century were not only superior to
					American models but produced to a greater degree of standardization.</p>
				<p>American machinery exports increased rapidly in the 1890s, a period which marked
					the coming of age of American manufacturing. Before this, American superiority
					seems to have been limited to a relatively small group of “ingenious” machines
						(<xref ref-type="bibr" rid="B14">Floud, 1974</xref>, p. 67) used in arms
					production as well as woodworking<sup><xref ref-type="fn" rid="fn2"
						>2</xref></sup>.</p>
				<p>With regard to the effect of mass markets and consumer preferences on production
					methods in the United States, it is important to recall that this country only
					surpassed Britain in population size in the mid-1850s, and only surpassed
					Britain in terms of real GDP around the 1860s (Bolt; Luiten van Zanden, 2020).
					It is thus not clear how “the scale of the demand” (Section 1) for consumer
					goods could have been a critical factor in the early development of mass
					production technologies, since, during this time, the British economy and its
					consumer base were roughly as large, if not larger, than the American one.</p>
				<p>It is also not clear to what extent wealth and income were more equally
					distributed than in Great Britain. The United States was certainly never a
					society “free…of the class and status” distinctions prevailing in Europe, a
					characteristic <xref ref-type="bibr" rid="B20">Landes (1999, p. 301)</xref>
					claims was instrumental in the development of interchangeable parts technology.
					It is worth recalling that the wealthiest region of the United States in the
					first half of 19<sup>th</sup> century was a slave society, so large that slaves
					accounted for over 25% of the American labor force (<xref ref-type="bibr"
						rid="B21">Lebergott 1966</xref>). Moreover, roughly 50% of European
					immigrants to North America during the 18<sup>th</sup> century arrived as
					indentured servants (Grubb, 1994, p. 794), suggesting colonial and early
					post-independence America were not dramatically more egalitarian than Western
					Europe. Roine and Waldenstrom (2004) offer evidence confirming this impression,
					showing income distribution in early 19<sup>th</sup> century England and the
					United States was roughly the same. <xref ref-type="bibr" rid="B22">Lindert and
						Williamson (2016)</xref> disagree, arguing colonial America was
					significantly more egalitarian than Western Europe. But even this study finds
					inequality rose sharply in the US between 1800 and 1850, reaching British levels
					by midcentury. This is problematic for the mainstream approach, for mass
					production techniques were not widely-adopted in consumer goods manufacturing
					until well after 1850 (Section 4).</p>
			</sec>
			<sec>
				<title>2 Machine tools, military strategy, and the origins of interchangeability:
					1700-1800</title>
				<p>The modern concept of interchangeability originated in France in the 1760s,
					notably with French General Jean Baptiste de Gribeauval, whose principle of
					“uniformity” was backed financially by the monarchy. By the early 1780s, French
					manufacturers were producing gun carriages and locks to what were then
					considered impressive degrees of interchangeability. The precision work was
					performed by skilled manual laborers equipped with hand tools, and such methods
					would persist in French (and British) manufacturing through the
						mid-19<sup>th</sup> century. The notion of machine-produced interchangeable
					parts was then regarded, even by prominent scientists and engineers, as
					farfetched, or simply impossible (<xref ref-type="bibr" rid="B17">Hounshell,
						1984</xref>, p. 40).</p>
				<p>Official support for “le système Gribeauval” weakened after the French
					Revolution, after which French progress with interchangeability in firearms
					production appears to have stalled. One reason for this lack of progress, beyond
					the lack of government support, was that the machine tools capable of performing
					the precision cuts demanded by interchangeable manufacture had not yet been
					invented. Roughly fifty years would pass before industrialists and engineers
					perceived that large-scale interchangeable parts manufacture could only be
					achieved through the use of machinery.</p>
				<p>Modern general-purpose machine tools were largely British inventions of the late
						18<sup>th</sup> and early 19<sup>th</sup> centuries, dramatically increasing
					the accuracy of turning and drilling operations with wood, brass, and
							metal<sup><xref ref-type="fn" rid="fn3">3</xref></sup>. Without such
					advances, <xref ref-type="bibr" rid="B23">Marx (1887, p. 262)</xref> famously
					noted, modern machinery would have retained a “dwarfish character,” crippling
					industrial progress. In the case of the steam engine, its inventor, James Watt,
					took years to bring the innovation to market due to difficulties encountered in
					accurately drilling pistons out of metal. The solution emerged in 1774 with the
					development of the cylinder lathe, a machine tool originally designed for
					producing naval ordnance.</p>
				<p>Machine tool progress had a self-reinforcing character, in the sense that
					technical obstacles to the production of better machine tools required the
					development of more powerful, more accurate tools to shape and cut metal. Ayres
					(1988, p. 91) relates this to the history of interchangeable parts: “The long
					delay in achieving the interchangeability of parts was due to these interrelated
					barriers. The later success of the automobile could not have occurred, in turn,
					without the prior existence of a sophisticated machine tool industry.”</p>
				<p>Machine tool progress in 18<sup>th</sup> and early 19<sup>th</sup> century Europe
					was often a response to problems encountered in weapons and defense production.
					“[I]n almost every country there were huge arms works [where] metals and new
					machining techniques were often pioneered...partly because the technical
					requirements were high and partly because cost was not always the key factor”
						(<xref ref-type="bibr" rid="B25">Milward; Saul, 1979</xref>, p. 225).
					Technical advances in these often state-owned arms factories were not a means
					for reducing cost or increasing profit, but the very goal of production
					itself.</p>
				<p>As noted above, the cylinder lathe had its origins in arms production. Its
					inventor was a British military contractor with years of experience dealing with
					similar problems in the boring of naval cannon. “After a decade of work on
					military ordinance, John Wilkinson developed a cannon lathe that, in addition to
					making better artillery, was able to bore cylinders accurately enough to make
					Watt’s steam engine work” (<xref ref-type="bibr" rid="B26">Page, 2015</xref>, p.
					95).</p>
				<p>Though originating in France, the most important sponsor of interchangeable parts
					technology prior to 1810 was the British Navy. In the early 1800s, it hired
					Henry Maudslay and Marc Brunel, early pioneers of mass production techniques, to
					build a system of machinery to produce wooden pulley blocks<sup><xref
							ref-type="fn" rid="fn4">4</xref></sup> at the royal dockyard at
					Portsmouth. Maudslay and Brunel transformed the dockyard into “the first
					full-scale factory in the world to use machine tools for mass production” (<xref
						ref-type="bibr" rid="B6">Coad, 2005</xref>, p. 49). By 1808, the dockyard
					was responsible for the British Navy’s entire supply of pulley blocks, producing
					130,000 units a year and constituting “the world’s first factory where
					power-driven machine tools set the pace, dictated the layout and carried out
					nearly all the manufacturing processes” (<xref ref-type="bibr" rid="B6">Coad,
						2005</xref>, p. 75).</p>
				<p>The Portsmouth machinery represented an early breakthrough in the industrial
					application of interchangeability, and played a key role in the invention of the
					Blanchard lathe, a complex set of automatic machine tools invented by American
					engineer Thomas Blanchard in the 1820s (<xref ref-type="bibr" rid="B17"
						>Hounshell 1984</xref>, p. 35). The Blanchard lathe was a central feature of
					the American System. Unlike other elements of this system, it was quickly
					introduced into civilian manufacturing, notably woodworking (Section 3).</p>
			</sec>
			<sec>
				<title>3 Early developments in the United States: 1800-1840</title>
				<p>Extensive research (<xref ref-type="bibr" rid="B17">Hounshell 1984</xref>; <xref
						ref-type="bibr" rid="B36">Smith 1987</xref>) shows that the United States
					(U.S.) War Department, precursor to the Department of Defense, introduced the
					concept of interchangeability in American manufacturing in the 1790s and heavily
					subsidized the early development of mass production techniques<sup><xref
							ref-type="fn" rid="fn5">5</xref></sup>. Most innovations related to
					interchangeable parts manufacture were introduced after the War of 1812, but the
					groundwork was laid earlier. From 1794 to 1812, the War Department implemented
					several policies vital to the development of the American System, the most
					important of which was the construction of the federal arms factories at
					Springfield, Massachusetts and Harper’s Ferry, Virginia. Symbols of
					manufacturing excellence, these federal armories were firmly committed to the
					French “uniformity principle” (Section 2), and were by far the largest arms
					producers in the United States prior to the Civil War.</p>
				<p>The War Department’s interest in interchangeability sprang from two main sources:
					a strong desire to improve military capabilities, and the influence of
					pre-revolutionary French military strategy. France had played a decisive role in
					America’s war of independence, and the withdrawal of its weapons and troops
					after 1783 left the federal government in a difficult situation: one of its main
					objectives was to seize land west of the Appalachian Mountains, but the
					continued presence there of British troops, allied with Native Americans forces,
					impeded them from doing so. It was to meet this challenge that the War
					Department was created in 1789, centralizing military power in the hands of the
					federal government.</p>
				<p>America’s military difficulties continued through the War of 1812, during which
					British troops occupied the capital and burned much of it to the ground.
					Deficiencies in the quality of firearms were regarded as one of the Army’s main
					weaknesses. This context provided political backing and ample resources for
					federal investments in weapons production.</p>
				<p>Having served as military advisers during the war of independence, many French
					officials emigrated to the United States after the French Revolution, becoming
					ranked officers. One of these, Louis de Tousard, was instrumental in the
					decision to build the military academy at West Point, modeled on French military
					principles and America’s premier engineering school throughout the
						19<sup>th</sup> century. Tousard was a strong advocate of Gribeauval’s
					“system of uniformity” (Section 2).</p>
				<p>Though waning in France, the Americans’ interest in this system would remain
					strong. They had witnessed its strategic value during the battle of Yorktown,
					the decisive land battle of the war of independence, in which the mobility of
					French artillery had proved vital. Thomas Jefferson served as ambassador to
					France during the war and had visited French gun workshops personally, notably
					that of interchangeable parts pioneer Honoré Blanc. After the French National
					Assembly rejected Blanc’s request for continued government sponsorship,
					Jefferson suggested his factory be relocated to the United States (<xref
						ref-type="bibr" rid="B36">Smith, 1987</xref>, p. 47).</p>
				<p>In 1798, the War Department made a cash advance to the private gun factories of
					Simeon North and Eli Whitney for 10,000 muskets with interchangeable parts. This
					was an enormous quantity, considering that, forty years later, annual arms
					production at the federal armories was just over 22,000 (<xref ref-type="bibr"
						rid="B34">Rosenbloom, 1993</xref>, p. 688). Such advances, Deyrup (1970, p.
					66) noted, brought America’s private “[arms] industry into existence”.</p>
				<p>In 1815, Congress gave responsibility for weapons production, both public and
					private, to the War Department’s Board of Ordnance, authorizing the Board to
					“draw up a system of regulations...for the uniformity of manufactures of all
					arms ordnance, ordnance stores, implements, and apparatus...” (<xref
						ref-type="bibr" rid="B36">Smith, 1987</xref>, p. 44). Between 1794 and 1815,
					the Springfield Armory instituted a complex division of labor and introduced
					precision instruments to measure the conformity of its firearms with fixed
					specifications. By 1825, Springfield had become “an even more important
					prototype of the modern factory than the integrated textile mill” (Chandler,
					1993, p. 72-73).</p>
				<p>Machine tool progress accelerated after 1812. In 1813, the War Department awarded
					Simeon North a contract for 20,000 pistols, stipulating that the component parts
					be “so exactly alike that any limb or part of one pistol may be fitted to any
					other pistol of the 20,000” (<xref ref-type="bibr" rid="B17">Hounshell,
						1984</xref>, p. 28). While attempting to fulfill this contract, North
					invented the milling machine, the first major innovation of the American
					System.</p>
				<p>War Department officials quickly introduced the milling machine at the
					Springfield and Harper’s Ferry armories, reflecting the War Department’s
					“implicit understanding with all arms contractors that they had to share their
					inventions with the national armories on a royalty-free basis if they wished to
					continue in government service” (<xref ref-type="bibr" rid="B36">Smith,
						1987</xref>, p. 78). “Such an ‘open door’ policy”, <xref ref-type="bibr"
						rid="B36">Smith (1987</xref>, p. 78) notes, “explains why so few crucial
					machines and machine processes were actually patented during the antebellum
					period”.</p>
				<p>The next step in the development of interchangeable parts manufacture was the
					invention of the Blanchard lathe. This set in motion a period of rapid progress
					in machine tools and revolutionized the production of shoes, chairs, ax handles,
					and wagon wheels. Thomas Blanchard, who had studied descriptions of Maudslay and
					Brunel’s woodcutting machinery at the Portsmouth dockyards (Section 2), invented
					a primitive version of his lathe in 1818 while building wooden musket barrels
					for the Harper’s Ferry Armory. The Springfield Armory then hired him as an
					inside contractor, giving him the income, raw materials, and power supply needed
					to perfect his machine. By 1825, the final version was complete. Blanchard’s
					sequentially-operated machinery practically eliminated hand labor in the making
					of gunstocks: “It is this sequential operation of special-purpose machines which
					characterized mechanization in American manufacturing” (<xref ref-type="bibr"
						rid="B17">Hounshell, 1984</xref>, p. 35).</p>
				<p>Gunstocking machinery based on the Blanchard lathe was the piece of equipment
					that most impressed the British observers in the 1850s (see Introduction), and
					the British government imported large quantities of it for use at its Enfield
					arsenal, a public arms factory built in 1855 and modeled on the Springfield
					Armory. The Blanchard lathe was considered “so spectacular that it was the only
					machinery that the [British government]…ordered without comparing alternate uses
					for their funds” (<xref ref-type="bibr" rid="B37">Temin, 1966</xref>, p.
					282).</p>
				<p>The federal arsenals also sponsored the work of John Hall, an inside contractor
					at Harper’s Ferry who worked extensively with Simeon North and mechanics at
					Springfield. Hall’s main contribution to the American System was to unite the
					concepts of mechanization and interchangeability. Hall’s work convinced the War
					Department, which had also invested heavily in craft methods, that machines and
					precision instruments were the keys to turning the French concept of
					“uniformity” into a reality.</p>
				<p>There is no evidence that American System techniques were cost-efficient in the
						mid-19<sup>h</sup> century. Production costs at large gun factories were
					very high compared to civilian manufacturing, and this was consistent with the
					War Department’s stated goal, which was not to minimize cost but to produce
					large amounts of weapons with interchangeable parts. <xref ref-type="bibr"
						rid="B17">Hounshell (1984, p. 44)</xref> notes that had it been possible to
					achieve this goal relying on hand labor, the War Department would have done so.
					“[T]he War Dept never really expected significant cost reductions. Yet it
					achieved its long-sought goal of solid, easily repairable weapons constructed
					with uniform parts… It was willing to achieve that goal through hand labor… or
					by machines” (<xref ref-type="bibr" rid="B17">Hounshell, 1984</xref>, p.
					44).</p>
				<p>By the mid-1830s, the American Northeast had become a sophisticated manufacturing
					complex based around the Springfield Armory. Six of the country’s eight largest
					private arms factories in 1840 were located in New England relatively close to
					the armory - two in Massachusetts, three in Connecticut, and two in Vermont. War
					Department officials encouraged inventors and manufacturers of any kind to visit
					and draw designs of the machines and equipment in use at the federal armories
						(<xref ref-type="bibr" rid="B36">Smith, 1987</xref>, p. 54).</p>
				<p>The Ames Manufacturing Company, a machine tool manufacturer which played an
					important role in the diffusion of mass production techniques, was established
					in 1834 a few kilometers away from the Springfield Armory. Its engineers had
					“ready access to patterns and drawings owned by the national armory” (<xref
						ref-type="bibr" rid="B36">Smith 1987</xref>, p. 78), as well as access to
					the armory’s skilled labor. The company produced milling machines and by the
					1850 was the exclusive supplier of gunstocking machinery to the Springfield
					Armory, machinery, <xref ref-type="bibr" rid="B4">Cesari (1970, p. 123)</xref>
					notes, “based on the Blanchard lathe [and] developed at the Armory’s expense
					some three decades earlier.” <xref ref-type="bibr" rid="B36">Smith (1987, p.
						77)</xref> adds that “despite their obvious technical skill and
					versatility,” Ames’ founders “were basically copyists rather than
					innovators”.</p>
				<p>Ames, Colt Armory, Browne and Sharpe, Robbins and Lawrence, Providence Tool,
					Remington, Pratt and Whitney and other gun and machine tool manufacturers were
					part of a tight network of War Department contractors in which the flow of
					knowledge and techniques was intense. George S. Lincoln and Company, also based
					in the Northeast, successfully marketed the Lincoln miller in the 1850s, a
					milling machine based on an earlier model built by Frederick Howe of Robbins and
					Lawrence. Howe had worked for Simeon North, and based his new milling machine on
					a model then in use at the Springfield Armory (McNeil, 1990, p. 408).</p>
				<p>Prior to the emergence of such firms, there was no specialized machine tool
					sector in the United States. War Department demands led to the emergence of a
					“separate [machine-producing] industry consisting of a large number of firms
					most of which confined their operations to a narrow range of products-
					frequently to a single type of machine tool…” (<xref ref-type="bibr" rid="B32"
						>Rosenberg, 1963</xref>, p. 427). This industry, originally a cluster of
					firms located in close proximity to the federal armories, acted as a conduit in
					the spread of mass production techniques to civilian manufacturers (Section
					5).</p>
			</sec>
			<sec>
				<title>4 The role of procurement policy</title>
				<p>Almost all of the firearms and machine tool manufacturers responsible for the
					development of mass production techniques in the mid-19<sup>th</sup> century
					were large military contractors. The turret lathe, a descendent of Blanchard’s
					machine, was built by Stephen Fitch while fulfilling a contract to produce
					30,000 gunlocks for the US Army in 1845, just prior to the Mexican-American War.
					This machine eliminated the need to manually adjust the position of metal parts
					during cutting operations, transforming manufacturing processes dependent on
					large quantities of small parts such as locks and screws (<xref ref-type="bibr"
						rid="B18">McNeil, 1996</xref>, p. 410).</p>
				<p>The double-turret lathe was introduced in 1852 by a mechanic at the Colt Armory,
					and the Jones and Lamson company, formerly Robbins and Lawrence (Section 3),
					began selling the machine commercially in 1858. “From this point on, the machine
					was adapted and modified for innumerable uses in the production of components
					for such products as sewing machines, watches, typewriters, locomotives,
					bicycles and, eventually, automobiles” (<xref ref-type="bibr" rid="B32"
						>Rosenberg, 1963</xref>, p. 429).</p>
				<p>As suggested in section 3, production costs at large gun factories were
					prohibitively high for consumer durables manufacturers in the 1850s. There is no
					record in this period of advanced precision techniques in use even by small arms
					producers. “Virtually all of the private producers who appear to have been
					capable of employing the methods of the American system in 1840 were producing
					guns for the United States military” (<xref ref-type="bibr" rid="B34"
						>Rosenbloom, 1993</xref>, p. 691).</p>
				<p>U.S. Census reports identify six of the eight private factories producing more
					than 1,000 firearms in 1840. Of these six, four had federal contracts. The two
					remaining companies declared bankruptcy in 1842, one of which was Colt Patent
					Arms Manufacturing, Samuel Colt’s first arms company. It went bankrupt due to
					quality issues and a “lack of public and government support” (<xref
						ref-type="bibr" rid="B34">Rosenbloom, 1993</xref>, p. 691). Colt re-entered
					the arms business in 1847, after being awarded an Army contract for 1,000
					pistols.</p>
				<p>A comparison of American and British arms procurement policies is enlightening.
					In the 1850s, the British military still relied for its small arms needs on a
					decentralized network of private manufacturers located mainly in Birmingham.
					Orders placed with individual producers were relatively small, and work was
					contracted out to skilled craftsmen. Asked by a British parliamentary committee
					in 1854 why English gunmakers used less machinery than their American
					counterparts, a prominent gunsmith responded that the problem was the lack of
					“stable rates of military procurement”, adding that, had the British government
					placed larger, long-term orders, arms manufacturers would have had no choice but
					to mechanize. “If you had [500,000] guns to make a year, would you introduce
					machinery”, asked the committee. “I could not make them without”, he responded
						(<xref ref-type="bibr" rid="B2">Ames; Rosenberg, 1968</xref>, p. 838). Prior
					to the mid-1850s, “[t]he British Government apparently did little, if anything,
					to moderate the extreme instability which its contracting procedures imposed
					upon the gunmaking industry, or to enable the industry to operate with a
					longer-term planning horizon” (<xref ref-type="bibr" rid="B2">Ames; Rosenberg,
						1968</xref>, p. 832).</p>
				<p>Quality concerns likely explain the British government’s hesitance to promote
					American arms-making techniques. Consumer goods manufacturers, both British and
					American, shared these concerns, and showed a similar reluctance to adopt the
					American System.</p>
			</sec>
			<sec>
				<title>5 Diffusion after 1860</title>
				<p>The spread of mass production techniques to civilian sectors of the U.S. economy
					was a process spanning the period from 1840 to 1890. It was restricted, for the
					first forty or so years of this period, to a very small group of industries, the
					key sectors, in chronological order, being firearms and machine tools, sewing
					machines, bicycles and, finally, automobiles.</p>
				<p>Machine tool producers played a fundamental role in the diffusion of the American
					System. They “became learning centers where metalworking skills were acquired
					and developed, and in which knowledge about precision manufacturing was
					incorporated and “transferred to the production of a sequence of new
					products-interchangeable firearms, clocks and watches, agricultural machinery,
					sewing machines, typewriters, bicycles, automobiles” (<xref ref-type="bibr"
						rid="B33">Rosenberg, 1977</xref>, p. 24).</p>
				<p>As a result of certain features common to all manufacturing processes, products
					that appear very different, such as guns and sewing machines, are in an
					engineering sense very similar. The tools and techniques used in one industrial
					sector can thus be transferred easily to other sectors. <xref ref-type="bibr"
						rid="B32">Rosenberg (1963</xref>, p. 423) called this feature of
					industrialization “technological convergence”, and it allowed the concept of
					interchangeable parts manufacture, originally developed for use in a single
					industry, to be applied to a wide range of other industries.</p>
				<p>As noted in section 4, private firms such as Ames Manufacturing and Remington
					began marketing their machine tools to consumer durables producers as early as
					1840, and themselves moved into the production of sewing machines and
					typewriters in the 1850s. Remington, which produced rifle barrels for the U.S.
					Army, began producing sewing machines in 1870, and typewriters in 1874.</p>
				<p>The sewing machine industry was responsible for important machine tool
					innovations based on earlier special-purpose lathes and milling machines.
					Essentially non-existent in 1850 (the sewing machine was first patented in the
					United States in 1846), by 1860 the industry was larger in terms of output and
					employment than the firearms industry itself (<xref ref-type="bibr" rid="B38"
						>U.S. Census 1865</xref>, p. 740). Sewing machines had a tremendous impact
					on the productivity of other sectors, notably boot and shoe manufacturing, which
					in 1860 was the country’s largest manufacturing employer (<xref ref-type="bibr"
						rid="B38">U.S. Census 1865</xref>, p. 733).</p>
				<p>America’s three largest sewing machine companies, Wheeler and Wilson, Wilcox and
					Gibbs, and Singer Manufacturing, were founded in the early 1850s. The first two
					had close ties to the arms industry and adopted mass production techniques from
					the outset. Wilcox and Gibbs in fact outsourced all of its sewing machine
					production to Brown and Sharpe (section 3). Brown and Sharpe would continue to
					produce sewing machines for Wilcox and Gibbs until the 1950s, and would be
					responsible for numerous innovations, originally intended for sewing machines,
					but with universal applications to other industries.</p>
				<p>Wheeler and Wilson’s factory was located close to the Colt arms factory in
					Bridgeport, Connecticut, from where it hired its first machinists and production
					supervisors. Joseph Alvord, a Wheeler and Wilson employee and important figure
					in the development of mass production techniques, had been an apprentice of
					Nathan Ames, founder of Ames Manufacturing. He had worked for eight years at the
					Springfield Armory and had also worked for Robbins and Lawrence. A specialist on
					the history of the Singer Manufacturing Company noted in the 1920s that “many
					principles of tool building that [Alvord] introduced into the early history of
					sewing machine work…are now the regular procedure in the art of tool building”
						(<xref ref-type="bibr" rid="B17">Hounshell, 1984</xref>, p. 71).</p>
				<p>Among the most important machine tool innovations arising in the sewing machine
					industry were the automatic screw machine, a lathe invented by a former Colt
					employee, and the universal grinding machine, invented by a mechanic at Brown
					and Sharpe, Henry Leland. Leland’s career is an interesting example of the
					American System’s development: he began his career as a tool builder for the
					Springfield Armory, then worked at the Colt Armory before moving on to Browne
					and Sharpe. He then founded a company that made bicycles and marine engines in
					the 1890s before founding, in 1902, the famous Cadillac Motor Company.</p>
				<p>For the first ten years of its existence, the universal grinder was used in
					producing guns, iron, woodworking tools, textile machinery, cutlery, and machine
					tools themselves. The universal miller, a milling machine developed by Brown and
					Sharpe, was used in the manufacturing of cash registers, calculating machines,
					typewriters, agricultural implements, bicycles and automobiles, among others. It
					“was to become the most flexible and widely used machine tool, second only to
					the lathe…” (McNeil, p. 408).</p>
				<p>Bicycle manufacturers took mass production techniques to the next level in the
					1890s, introducing innovations such as ball bearings, sheet metal stamping and
					electric-resistance welding. By 1900, mass production techniques could be
					profitably applied to automobile production. The automobile industry depended
					heavily on prior developments in sewing machines and bicycle manufacturing. “The
					transition to automobile production …was therefore relatively easy, because the
					basic skills and knowledge required to produce the automobile did not themselves
					have to be ‘produced’ but merely transferred from existing uses to new ones.
					This transfer was readily performed by the machine tool industry” (<xref
						ref-type="bibr" rid="B32">Rosenberg, 1963</xref>, p. 437).</p>
				<p>
					<xref ref-type="bibr" rid="B17">Hounshell (1984)</xref> dispels the assumption
					that clockmakers or manufacturers of agricultural machinery were key figures in
					the development of interchangeable manufacture, as some scholars suggest. The
					McCormick Harvesting Machine Company, which <xref ref-type="bibr" rid="B8">David
						(2004</xref>, p. 10-11) claims brought “the methods of production by
					interchangeable parts…to full practical realization”, only adopted mass
					production techniques in the early 1880s after hiring a superintendent with
					experience in firearms and sewing machines. Compared to arms and sewing machine
					manufacturers, the McCormick factory was backward, employing “almost no special
					- or single-purpose machinery… there is little evidence that [the owners] knew
					of the techniques…which distinguished the arms industry” (<xref ref-type="bibr"
						rid="B17">Hounshell, 1984</xref>, p. 7).</p>
				<p>Singer Manufacturing was also relatively slow in adopting “armory practice”
						(<xref ref-type="bibr" rid="B17">Hounshell, 1984</xref>, p. 5). As late as
					the early 1880s, Singer sewing machine parts were not interchangeable, and final
					assembly relied heavily on skilled labor. Like shoe manufacturers and
					woodworking firms in the mid-19<sup>th</sup> century, Singer did employ some of
					the machinery typical of the American System, but there was a difference between
					its methods and those of large machine tool and gun factories. Compared to
					consumer goods producers, the latter resembled scientific laboratories, relying
					on expensive, sequentially-operated machines in conjunction with precision
					instruments designed to minimize human error. This was a still developing system
					of production in the mid-19<sup>th</sup> century, and the vast majority of
					American firms were skeptical of its relevance and unwilling to incur its high
					fixed costs.</p>
				<p>This skepticism was shared by renowned engineers such as Britain’s Joseph
					Whitworth, who doubted whether machines could ever be capable of producing
					interchangeable parts without the aid of skilled labor. The American System was
					widely regarded as an efficient way to quickly produce large amounts of guns,
					but not everyone in the 1850s was convinced that it was capable of producing
					guns at a lower cost, or with the same quality, as those made by traditional
					methods. British specialists in particular argued the parts of American guns
					were not as well finished as British rifles, and attributed this to superior
					hand work performed on the latter (<xref ref-type="bibr" rid="B17">Hounshell,
						1984</xref>, p. 21).</p>
				<p>Similar doubts would exist in consumer goods industries for decades to come. In
					1870, Singer outsourced sewing machine production to Providence Tool (section
					3), but terminated the contract soon after, as management deemed its techniques
					“sloppy”, arguing hand filing was necessary to produce a high-quality sewing
					machine (<xref ref-type="bibr" rid="B17">Hounshell, 1984</xref>, p. 99).</p>
				<p>19<sup>th</sup> century Singer sewing machines, it is important to note, were not
					low-priced, and its original sales strategy was not based on flooding the market
					with cheap, standardized goods. To the contrary, the company, like McCormick,
					“sold the most expensive products in their respective industries” (<xref
						ref-type="bibr" rid="B17">Hounshell, 1984</xref>, p. 9), relying on its
					marketing department to corner domestic and especially international
					markets.</p>
				<p>The steady increase in sales and in the geographical range of customer bases in
					the late 19<sup>th</sup> century, <xref ref-type="bibr" rid="B17">Hounshell
						(1984)</xref> argues, convinced Singer and other civilian manufacturers to
					abandon craft methods and adopt mass production techniques more fully<sup><xref
							ref-type="fn" rid="fn6">6</xref></sup>. Singer’s predicament was typical
					of the industrial age (<xref ref-type="bibr" rid="B16">Hirschhorn, 1986</xref>,
					p. 9):</p>
				<p><disp-quote>
					<p>Interchangeability is fundamental to the entire industrial apparatus.
						Products must be sold on a mass scale to mass markets, and the consumer
						cannot return to the point of manufacture for replacement or maintenance.
						Rather, a separate parts economy must evolve so that the consumer (or the
						secondary producer) can confidently purchase a part that will fit the
						original product or machine. Mass marketing depends on mass
						interchangeability.</p>
				</disp-quote></p>
				<p>In Singer’s case, the definitive step towards interchangeability was taken in the
					late 1870s and early 1880s. Standardized parts, managers realized, facilitated
					not only large-scale production, but also product repair and sales in
					increasingly distant regions. This is hardly surprising: it was for broadly
					similar reasons that military strategists had conceived of the idea of
					interchangeable parts more than a century earlier.</p>
				<p>The modernization of Singer’s production techniques was part of a broader
					phenomenon not restricted to the sewing machine industry or to the United
					States, as evidenced by the boom in American machinery exports to Western Europe
					in the 1890s. Interchangeable parts technology had reached maturity.</p>
			</sec>
		</sec>
		<sec sec-type="conclusions">
			<title>Conclusion</title>
			<p>For generations, economic historians have attempted to explain why modern
				interchangeable parts technologies emerged in the United States rather than in
				Britain, birthplace of the Industrial Revolution. The dominant approach to this
				question focuses on wage differences and natural resource constraints, which, it is
				argued, offered greater incentives for American firms to substitute machinery for
				skilled labor. Scholars have also emphasized institutional factors such as a
				low-cost patent regime and the relative absence of trade unions in 19<sup>th</sup>
				century America, which are believed to have facilitated knowledge transfer and
				stimulated innovation.</p>
			<p>These arguments are no more useful in understanding the early development of
				interchangeable parts technology than they are in explaining the origins of the atom
				bomb. Interchangeability was a concept devised not by inventors seeking patents but
				by military strategists seeking advantages on the battlefield. This was roughly a
				century before the concept was applied to the production of consumer goods. There
				was nothing rational, from a cost perspective, about the pursuit of interchangeable
				parts manufacture in the mid-19<sup>th</sup> century. Precision techniques were
				expensive, and serious questions remained as to their technical and economic
				feasibility. Not even private gunmakers producing for civilian markets in
					19<sup>th</sup> century America could afford the methods of the federal
				armories. Those who did so did not do this because it was cost-efficient, or because
				they had incentives to mass produce standardized consumer goods, but because they
				were military contractors whose clients demanded it.</p>
			<p>The War Department was in a unique position to sponsor mass production techniques in
				the early 19<sup>th</sup> century: it had been given ample financial resources and a
				mandate to promote technical progress in firearms production. It was also the
				inheritor of a military philosophy - the uniformity system - whose most enthusiastic
				sponsors had been removed from power by the French Revolution, leaving the United
				States as perhaps the Western military power most actively pursuing the goal of
				interchangeability. This, we believe, sheds light on how the War Department brought
				to maturity what was to become the dominant production technique of the
					20<sup>th</sup> century: machine-based interchangeable parts manufacturing.</p>
		</sec>
	</body>
	<back>
		<fn-group>
			<fn fn-type="other" id="fn1">
				<label>(1)</label>
				<p>
					<xref ref-type="bibr" rid="B37">Temin (1966)</xref>; <xref ref-type="bibr"
						rid="B7">David (1975)</xref> and <xref ref-type="bibr" rid="B33">Rosenberg
						(1977)</xref>, among others, offered important later contributions. </p>
			</fn>
			<fn fn-type="other" id="fn2">
				<label>(2)</label>
				<p>The lack of clear evidence of a broad American superiority in machinery
					production leaves unexplained the finding, about which there is broad consensus
					in the literature, that labor productivity in American manufacturing was higher
					than in Britain in the 19th century. Much of the initial reason for scholarly
					interest in the American System was precisely because it appeared to offer an
					explanation for this productivity lead. Though this is not the place for a
					detailed investigation, it is important to keep two things in mind: first, the
					British manufacturing sector in the mid-19th century was much larger than the
					American one, both in terms of output and employment (<xref ref-type="bibr"
						rid="B3">Broadberry; Irwin, 2004</xref>, p. 21-23). In other sectors, such
					as mining and construction, Britain had a substantial labor productivity lead.
					It is likely, then, that some of the difference in labor productivity is due to
					differences in the size and composition of British and American manufacturing,
					with a large presence in the latter of high productivity sectors (such as, say,
					food and lumber products) that were much less relevant in Britain. Second, the
					U.S. lead in manufacturing productivity has been documented since at least 1840,
					predating by several decades the adoption of American System techniques by
					consumer goods producers. Thus, even if the rise of the American System
					reflected some broad tendency favoring the adoption of scaleand
					capital-intensive techniques in the U.S., this tendency cannot explain the U.S.
					productivity lead in manufacturing. It may be the case that the use of superior
					machines in certain sectors of the U.S. economy helps explains part of this
					lead, but the only piece of American machinery that appears to have been
					considered superior in the mid-19th century were the special-purpose machine
					tools developed in the arms industry. </p>
			</fn>
			<fn fn-type="other" id="fn3">
				<label>(3)</label>
				<p>General-purpose machine tools are power-driven machinery used to shape and cut
					iron, brass, wood, and other hard surfaces. Special-purpose machine tools are
					built to follow more specific machining instructions; the shapes and dimensions
					of parts to be machined are built into the hardware or software of the machine.
					This is what makes special-purpose machine tools appropriate for mass production
					of interchangeable parts.</p>
			</fn>
			<fn fn-type="other" id="fn4">
				<label>(4)</label>
				<p>Pulley blocks are lifting tools used on ships to lift and give direction to
					sails. </p>
			</fn>
			<fn fn-type="other" id="fn5">
				<label>(5)</label>
				<p>Textile manufacturers played a relatively minor role in the development of modern
					machine tools. Though most machine tool producers in the U.S. began as
					subsidiaries of textile firms, the lathes and planers built by these companies
					did not provide the speed and precision necessary to mass produce
					interchangeable parts.</p>
			</fn>
			<fn fn-type="other" id="fn6">
				<label>(6)</label>
				<p>We suspect, following Braverman (1974) and Noble (1984), that an eagerness to
					deskill the manual labor force played an important role here as well. </p>
			</fn>
			<fn fn-type="other">
				<p><bold>JEL:</bold> N0, N1, N4, N7.</p>
			</fn>
		</fn-group>
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