PROSPERITY.--Twelve years had now elapsed since the meeting at New York of the first Congress under the Constitution, and they had been years of great prosperity. When Washington took the oath of office, each state regulated its trade with foreign countries and with its neighbors in its own way, and issued its own paper money, which it made legal tender. Agriculture was in a primitive stage, very little cotton was grown, mining was but little practiced, manufacture had not passed the household stage, transportation was slow and costly, and in all the states but three banks had been chartered. [1] With the establishment of a strong and vigorous government under the new Constitution, and the passage of the much-needed laws we have mentioned, these conditions began to pass away. Now that the people had a government that could raise revenue, pay its debts, regulate trade with foreign nations and between the states, enforce its laws, and provide a uniform currency, confidence returned. Men felt safe to engage in business, and as a consequence trade and commerce revived, and money long unused was brought out and invested. Banks were incorporated and their stock quickly purchased. Manufacturing companies were organized and mills and factories started; a score of canals were planned and the building of several was begun; [2] turnpike companies were chartered; lotteries [3] were authorized to raise money for all sorts of public improvements,--schools, churches, wharves, factories, and bridges; and speculation in stock and Western land became a rage. NEW INDUSTRIES.--It was during the decade 1790-1800 that Slater built the first mill for working cotton yarn; [4] that Eli Terry began the manufacture of clocks as a business; that sewing thread was first made in our country (at Pawtucket, R.I.); that Jacob Perkins began to make nails by machine; that the first broom was made from broom corn; that the first carpet mill and the first cotton mill were started; that Eli Whitney invented the cotton gin; and that the first steamboat went up and down the Delaware. [Illustration: A TERRY CLOCK.] THE COTTON GIN.--Before 1790 the products of the states south of Virginia were tar, pitch, lumber, rice, and indigo. But the destruction of the indigo plants by insects year after year suggested the cultivation of some other crop, and cotton was tried. To clean it of its seeds by hand was slow and costly, and to remove the difficulty Eli Whitney of Massachusetts, then a young man living in Georgia, invented a machine called the cotton gin. [5] Then the cultivation of cotton became most profitable, and the new industry spread rapidly in the South. [Illustration: MODEL OF WHITNEY'S COTTON GIN. In the National Museum, Washington.]