US History: Industrialization

Chinese Exclusion Act (1882)

- 10 year ban on labor immigration - refused citizenship to resident aliens - not repealed until 1943

Great Railroad Strike (1877)

- Baltimore and Ohio Railroad announced a third wage cut, workers from West Virginia walked off the job and went on strike - 2/3 of the nation's railways shut down: 80,000 on strike, equipment smashed, tracks torn up, service blocked in NY, PA, MD, MO, IL - governors called out militias, led to gun fights - Hayes declared "insurrection," sent federal troops to areas - aftermath: 12 days of violence, 100 deaths, $10 mil in damage, citizens alarmed

The Homestead Strike

- Carnegie allowed Frick to increase working hours and reduce wages in order to cut costs for increasing the production of structural steel - newly formed unions started striking against the 12 hour days, 6 day weeks, and the increasing workplace injuries and deaths - Frick brought in Pinkerton Detectives (private army that tracked down train robbers, guarded the President, and broke downs strikes). The Pinkertons fired on the 2,000 unarmed workers who barricaded themselves inside the Homestead plant. 9 were killed. - the strike did not end until the state governor sent in the state militia.

injunction

- a formal order to halt a boycott - the SCOTUS upheld the right to issue an injunction after the Pullman Strike, which gave businesses a powerful tool against labor unrest

trusts

- a legal arrangement that allows one person to manage another person's property - person who manages the property is called a trustee - 1882: Standard Oil formed the first trust to get around the law that made it illegal for one company to own stock in another company - instead of buying a company outright, Standard Oil had stockholders give their stocks to a group of Standard Oil trustees. in exchange, the stockholders received shares in the trust, which entitled them to some of the trust's profits. trustees could control a group of companies as if they were one large company. they did not own the stock but were managing it, so no laws being violated.

blacklist

- a list of troublemakers so that no company would hire them - a technique to stop workers from forming unions - workers who tried to organize a union or strike were fired and placed on a blacklist

Manifest Destiny

- a notion held by a nineteenth-century Americans that the United States was destined to rule the continent, from the Atlantic the Pacific. - different things travelling westward: trains, horse-wagons, farmers, animals, civilians, an angel guiding them - various methods of transportation travelling westward to show the development and spread of transportation in the west - various types of people travelling westward to show how they will populate the region - eastern side of the photo is already developed with bridges and trains while the west side has yet to be developed - artist is trying to convey the goodness that is to come of this development with the angel figure, she may also represent God, and that America's expansion is his will - may inspire hopefulness among American citizens

corporations

- an organization owned by many people but treated by law as though it were a person - made big business possible - stockholders own corporations through shares of ownership called stock - freedom to own a corporation was one of the benefits of laissez-faire economics - can produce more goods at a lower cost and stay open in bad economic times by cutting prices to increase sales

Laissez-Faire

- attracted entrepreneurs to invest in American businesses - "let people do as they choose" - supporters believe that the government should not interfere in the economy other than to protect private property rights and maintain peace, a free market with competing companies leads to greater efficiency and creates more wealth for everyone, and low taxes and limited government debt to ensure that private individuals, not the government, will make most of the decisions about how the nation's wealth is spent - argued that if the government regulates the economy, it increases costs and eventually hurts society more than helps - relies on supply and demand rather than the government to regulate wages and prices - practiced in the late 1800s. state and federal governments kept taxes and spending low. did not impose costly regulations on industry or try to control wages and prices. - US was one of the largest free trade areas in the world, Constitution bans states from imposing tariffs, few regulations on commerce/immigration - benefited consumers because competition led to price decrease, but business leaders did not like the intense competition being forced on them. cutting prices cut into profits - these factors played a major role in the country's rapid economic growth - government went beyond laissez-faire and introduced policies intended to promote business. - tariffs very contradictory. leaders in the North and South had different ideas about the role of government in economy: North wanted high tariffs to protect manufacturers from foreign competition and supported federal subsidies for companies building roads, canals, and railroads. South opposed subsidies and favored low tariffs to promote trade and keep cost of imports low - Civil War ended this debate: Congress passed Morrill Tariff increasing tariff rates. Congress also gave tracts of western land and nearly $65mil in loans to western railroads and sold public lands with mineral resources for less than their market value. - high tariffs contradict with laissez-faire ideas. when US raised tariffs on foreign goods, other countries raised tariffs on US goods. this hurt American companies trying to sell abroad. - many believed tariffs were necessary, new American industries could not compete with European factories without tariffs to protect them. - after American industries had become large and efficient, business leaders began to push for free trade because they could now compete

immigrant labor

- because of a labor shortage in CA, the Central Pacific Railroad hired about 10,000 workers from China - paid about $1/day - changed demographics of America's workforce - every immigrant group had some sort of its members working in every type of job and profession available - Italian: bricklayers and stonemasons, contributed to the construction of many homes, churches, and buildings - Polish: coal miners, meatpackers, steel workers - Jewish: garment industry, common laborers, merchants - Irish: railroad workers, miners, dockworkers, ditch diggers, factory workers Chinese: laborers, servants, merchants, some skilled at trade, helped build Central Pacific Railroad

Central Pacific Railroad

- build eastward from Sacramento, CA - originally contracted to build 150 miles, Congress made it a competition in 1866 - eventually, the company hired up to 12,000 Chinese immigrants who were thought to be too puny for the labor but had a very strong work ethic. worked for about $1/day without boarding. they were healthier and more sanitary people, ate seafood and vegetables, drank tea, able to be more productive - crossed the Sierra Nevada Mountains - laid a total of 690 miles of track

Union Pacific Railroad

- build from Omaha, NE towards Sacramento, CA - for each mile constructed, the company was granted 20 square miles of land and a federal loan ranging from $16,000-$48,000 - crews were made of of the Irish (3000 in total paid $35/month with boarding), Civil War soldiers, African Americans, Germans, Mexicans, Englishmen - record day... 10 miles laid by 5,000 men - faced Native American raids - faced illnesses from dietary and weather conditions - "Hell on Wheels:" tented towns - laid a total of 1,086 miles of track - The Credit Mobilier Construction Company pocketed $73 million for $50 million of construction, paid of Congress to look the other way

Gilded Age

- coined by Mark Twain and Charles Dudley - refers to the time period following Reconstruction (1865-1877) and the turn of the century - industrial and economic growth - tumultuous and scandalous politics - emergence of modern businesses - waves of immigration (southern and eastern Europe, 40 mil in 1870, 76 mil in 1900) - monopolies: greed and deceit - America was glittering on the surface but corrupt underneath

trade unions

- early labor organizations that brought together workers in the same trade to fight for better wages and working conditions - in the 1830s, craft workers began to form trade unions - 1873: 30 national trade unions in the US - largest and most successful: Iron Molders' International Union, International Typographical Union, Knights of St Crispin - unions represented workers whose skills were needed by employers

The Pullman Strike (1894)

- economic downturn in 1893 affected both workers and management - George Pullman: owned Pullman Palace Car Company and the company town of Pullman, IL. manufactured sleeping cars used by most railroads - laid off several thousands of his 5,800 employees, cut pay 25-50% while refusing to reduce rent - May 11th, 1894, 90% of workers went on strike, American Railway Union refused to move trains with Pullman cars - federal government won a court injunction which ordered the strikers back to work. when workers refused, President Cleveland sent in 14,000 troops - outcome was most workers resumed their jobs with the same low wages. some workers were blacklisted in the railroad industry. Pullman's reputation was ruined: viewed as greedy, intolerant. he lived in fear that others would steal from him and requested to be buried in a concrete casket

Pacific Railway Act (1862)

- gave the Union Pacific and the Central Pacific corporations permission to build a transcontinental railroad - offered each company land along its right-of-way

human labor

- human resources just as important as natural resources in enabling the nation to industrialize rapidly. - between 1860-1910, the population of the US nearly tripled. this growth provided industry with a large workforce and created greater demand for consumer goods

JP Morgan and Investment Banking

- investment bankers began helping to create holding companies (does not produce anything, but owns the stock of companies that do produce goods and manages the companies) - bankers specialized in helping companies issue stock: companies would sell large blocks of stock to investment bankers at a discount. bankers would then find the investors and sell the stock for a profit. most successful investment banker was JP Morgan - mid 1890s: investment bankers began merging many of US's large corporations into holding companies and then selling their stock. - 1901: Morgan bought out Carnegie. he then merged Carnegie Steel with other large steel companies into an enormous holding company called the US Steel Company. first billion dollar company in American history.

Thomas Alva Edison

- leading pioneer in new technology - great innovator, he worked to invent and improve products - first achieved international fame in 1877 with his invention of the phonograph, 2 years later he perfected the electric generator and the lightbulb - improved products like battery and motion picture - 1882: Lewis Latimer (worked for Edison) invented a process for making cheap long-lasting carbon filaments for light bulbs. because of this, electric lighting became more affordable - 1889: several Edison companies merged to form the Edison General Electric Company

capital

- money used for investment - important source of private capital: Europe, especially Great Britain - foreign investors saw great opportunities for profit in the US

inventions

- new inventions and technology were important to industrialization revolution of electricity: - 1882: Lewis Latimer invented a process for making cheap long-lasting carbon filaments for light bulbs. because of this, electric lighting became more affordable - George Westinghouse developed an AC system to distribute electricity over long distances using transformers and generators. this invention allowed electricity to rapidly improve living standards (city streets safer with lights, electric trolley cars decreased commute times, electric devices made domestic chores easier and faster) - 1874: Alexander Graham Bell began experimenting with ways to transmit sound via an electric current. in 1877, Bell founded the Bell Telephone Company. his telephone transformed communications and helped improve the nation's standard of living. businesses could place orders quickly and news of events that might change business choices could be obtained in time for better decision making - After the Civil War: Thaddeus Lowe invented an ice making machine, enabling people to obtain low cost ice year round for ice boxes that kept food fresh - 1870s: Gustavus Swift hired an engineer to develop a refrigerated railroad car. shipped the first refrigerated load of fresh meat in 1877. widespread use enabled fresh food, especially meat, to be shipped across long distances. the price of food began to drop and the quality of food people could obtain year round rose dramatically. - 1873: Christopher Scholes invented the typewriter. - 1886: Josephine Cochrane developed the automatic dishwasher - 1888: George Eastman patented the first handheld camera - 1893: Frank and Charles Duryea built the first gasoline-powered carriage - power-driven sewing machines and cloth cutters rapidly moved the clothing business from small tailor shops to large factories - large factories used new processes and inventions to mass-produce shoes efficiently and inexpensively, lead to low prices for customers - invention of air breaks enabled railroads to put longer and heavier trains on their lines

Promontory Summit, UT

- on May 10th, 1869, hundreds of spectators gathered here to watch dignitaries hammer 5 gold and silver spikes into the final rails that would join the Union Pacific and Central Pacific

Andrew Carnegie and the Steel Industry

- opened a steel mill in 1875 and began using the Bessemer process - began using vertical integration of the steel industry to make his company more efficient. saved money and enabled companies to expand

anarchism

- opposes government in any form - anarchist: someone opposed to government and authority

Rockefeller and the oil industry

- people began using a new resource called petroleum. it was high in demand because it could be turned into kerosene, a fuel used in lanterns and stoves. - the oil industry was built on the demand of kerosene. the industry began in western PA, where oil bubbling occured on the surface of area springs and streams. - Edwin Drake drilled the first oil well, and by 1900 oil fields had been drilled from PA to TX. - as oil production rose, it fueled economic expansion - Rockefeller achieved complete horizontal integration of the oil industry through a series of buyouts - by 1880, the company controlled about 90% of the oil refining industry in the US - became a monopoly

entrepreneurs

- people of high ability and ambition - people who risk their capital in organizing and running a business - believed they could make money in manufacturing and transportation - many of the new inventions that transformed society would not have been possible without entrepreneurs willing to risk their money to help develop and implement them. - many entrepreneurs from New England accumulated their money by investing in trade, fishing, and textile mills. they invested their money in factories and railroads

American Federation of Labor

- president: Samuel Gompers (1886-1924) - former head of Cigar Makers Union - stayed out of politics and opposed socialism - believed in organizing skilled craft workers - discouraged an alliance with the Knights of Labor - 500,000 members by 1900 - believed workers should pay union dues - advocated for better hours/wages - most utilized strategies were walkouts and boycotts - less inclusive, valued only skilled workers

The Knights of Labor

- president: Terrence Powderly - wanted to organize workers into "1 big brotherhood" - open to all workers regardless of skill, sex, nationality, race - excluded lawyers, bankers, stockbrokers, gamblers, saloon keepers, liquor distributors - over 700,000 members in 1885 - questionable if it was a risk to include unskilled workers goals - 8 hour work day - abolition of child labor - improved safety in factories - equal pay for men and women - workers' compensation - cooperatively run workshop/stores (power back to workers, workers have say)

vertical intregration

- purchase of companies at all levels of production - 1 company owns every step from point A to point B (when the product is ready to sell) ex: Ace Meat Industries owns their own cattle, slaughterhouses, refrigerated railroad cars, cooled warehouses, meat packaging plants, and delivery wagons

horizontal integration

- purchase of competing companies in the same industry - ex: US Oil Company owns several independent oil refineries

nativism

- reemerged in the 1880s - "anti-foreignism" - viewed immigrants as culturally/religiously inferior - many were concerned that the new immigrants would outbreed/outrole the "native" Americans - many blamed immigrants for degrading the urban landscape and government, their willingness to work at "starvation" wages, and socialism, communism, and anarchism

Eugene V Debs

- resented Gompers and the AFL for not assisting in the Pullman Strike - socialist leader in the US, formed Socialist Party of America - delivered "Liberty" speech to a Chicago crowd of approximately 100,000 - ran for president 5 times, won 6% of the vote in 1912, received 1,000,000+ votes in 1920 while imprisoned for speaking against WWI

stock

- shares of ownership - selling stock allows a corporation to raise money while spreading out the financial risk - before the 1830s, few corporations existed because entrepreneurs had to convince state legislatures to issue them charters. in the 1830s, however, states began allowing companies to become corporations and issue stock without a charter from the legislature - with money raised from selling stock, corporations could invest in new technologies, hire large workforces, and purchase machines, which greatly increased their efficiency

The Haymarket Riot (1886)

- supporters of the 8 hour workday called for a nationwide strike - Chicago police got involved in a fight on a picket line and opened fire on the strikers, killing 4 - next day, about 3000 people gathered to protest the shootings in Chicago's Haymarket Square - someone threw a bomb, police opened fire, and workers shot back, injuring 170 people and killing 10 policemen. - 8 men arrested for the bombing. - though evidence was weak, public anger resulted in 8 convictions. 4 executed - union critics used this event to claim that dangerous radicals dominated the unions. one man arrested was a member of the KoL. this negatively affected the group's reputation along with lost strikes led to a decline in membership and influence

impact of technology

- technology improved the standard of living - refrigerated railroad cars: quality of food increase, price decrease - ice making machine, ice box: kept food fresh - telephone: businesses could make orders, could obtain news quickly for better decision making - AC electric current: city streets safer with lights, electric trolley cars decreased commute times, electric devices made domestic chores easier and faster - prices of many goods dropped significantly

Angel Island

- the processing center where the majority of Asian immigrants passed through - located in the San Francisco Bay

Ellis Island

- the processing center where the majority of new Americans passed through - located in NYC

railroads

- the transcontinental railroad helped accelerate industrialization - railroads took settlers and miners to the west and carried resources back to the east. - railroad boom began with the Pacific Railway Act - the transcontinental railroad was the first of many lines that began crisscrossing the nation after the Civil War - by linking the nation, railroads increased the markets for many products, spurring industrial growth - railroad companies stimulated the economy by spending huge amounts of money on steel, coal, number, etc - large companies consolidated smaller lines to create integrated systems - operations became so efficient that the average rate per mile for a ton of freight dropped from 2 cents to 3/4 of a cent

land grants

- to encourage railroad construction across the great plains, the federal government gave these to many railroad companies - the railroads then sold the land to settlers, real estate companies, and other businesses to raise money to build the railroad - 1850s-60s: federal land grant system gave railroads more than 120mil acres of public land - several railroads, including the Union Pacific and Central Pacific, received enough land to cover most of the cost of building their lines - land was only valuable if railroads could sell it: to convince people to move west, railroads and real estate companies offered the land at low prices and provided credit to settlers. pamphlets, posters, newspaper ads enticed people to move west

industrial unions

- united all the workers in a particular industry - business leaders very opposed to industrial unions

lockouts

- used by companies to break up existing unions - companies locked workers out of the property and refused to pay them

natural resources

- water - timber - soil - silver - gold - coal - iron - copper - oil/petroleum America's vast natural resources allowed American companies to obtain resources cheaply without importing them from other countries. many of these resources were located in the west. western settlement helped accelerate industrialization.

monopoly

- when a single company achieves control of an entire market - many feared monopolies because they believed that one could charge whatever it wanted for its products - argued that one of the costs of laissez-faire economics was that it created large and powerful corporations that could control prices and manipulate politicians and laws to ensure that they did not face new competition - supporters of laissez-faire disagreed: asserted that monopolies had to keep prices low because raising prices would allow competitors to reappear and offer products at a lower price - in some industries, even though some companies had a near monopoly in the US, it was not really a monopoly because it was competing on a global scale - example: Rockefeller and his horizontal integration of the oil industry. had a near monopoly in the US but was competing with European oil companies and had to keep prices low

arbitration

- when a third party helps workers and employers reach an agreement

Alexander Graham Bell

1874: Alexander Graham Bell began experimenting with ways to transmit sound via an electric current. in 1877, Bell founded the Bell Telephone Company. his telephone transformed communications and helped improve the nation's standard of living. businesses could place orders quickly and news of events that might change business choices could be obtained in time for better decision making

socialism

government ownership of various industries

causes of industrial growth (5)

natural resources, capital, railroads, inventions, human labor

new vs old immigrants

new immigration: immigrants from eastern and southern Europe, including Italy, Greece, Austria-Hungary, Russia, and Serbia old immigration: occurred before 1890, immigrants primarily from northern and western Europe

immigration: push and pull factors

push - lack of jobs - population pressures - wars and military service - political oppression - religious oppression pull - plenty of land and work - higher standards of living - democracy - opportunities for advancement, "the American dream"

gross national product

the total value of all goods and services a country produces during a year - by the early 1900s, the US was the leading industrial nation. its GNP was roughly 3 times what it had been in the late 1860s.