Introduction American History in the period of 1780 to 1850 was very turbulent. The US nation was still young and needed money to finance the American Revolution. It lacked the industrial setup and resources and still needed the support of Britain, and it was called the Atlantic economy. The New Economy and why the expansion started In early 1770, the US was still an ‘Under Developed Country’ with no connection with the rest of the world and no means for trade. Moreover, the distance between the US and Europe was huge, and the US was essentially isolated from the rest of the world. The American Revolution had not fundamentally altered economic relations between the UK and the US; however, radically, the political relation had altered. The Atlantic traffic of trade and migration had been only temporarily interrupted by the upheaval of the American and French Wars. Although Americans had renounced their allegiance to the British King, they could not disentangle themselves from that intricate web of relations across the ocean, which had sustained them on the new continent since the first settlements. However persistent their feud with the mother country, however, determined to insulate themselves from the European world’s slow stain, Americans were unable to withdraw into economic isolation; and they accepted whatever trading terms they could get with the British Empire. The British, for their part, having finally recognized an independent republic in North America, made the best of it by annexing the United States, along with the South American republics, to their informal trading empire. Canning’s famous proposal for a joint declaration warning the European Powers of the Atlantic world was based on a shrewd understanding of the potentialities of Anglo-American cooperation, and fitted the facts of economic strategy in the Atlantic better than the unilateral Monroe Doctrine which followed from his initiative. It was not just that without the cooperation of the Royal Navy, that Doctrine was little more than a rhetorical flourish. Old kingdom and new republic shared an unprecedented community of interests. This community of interests began with a complimentary exchange of raw materials for manufactures, which ensured that Britain and the United States should be each other’s best customers in an age when overseas trade, for the United States especially, provided the principal nourishment for economic growth. The relation was not, however, simply that of trade between two closed economies. The United Kingdom outside the normal definition of international trade: a matter, rather, of inter-regional relations within a single economy embracing the entire Atlantic basin (Reynolds, 1999). The essential feature of this special relationship, which makes it appropriate to think in such terms, was this. The growth of the Atlantic basin was conditioned, not merely by trade, but by a flow of what economists call the factors of production across the Atlantic into more profitable relations with markets and natural resources. Capital, labor, enterprise, and technology moved west, on a vast scale, and with the unique facility, to new American land. That phenomenal twin migration of peoples and of confiden