Period 6: 6.4-6.5-6.6

Growth of Industry Henry Grady was the editor of the Atlanta Constitution which argued for:

"New South" through editorials that argued for economic diversity and liaises-fairs capitalism.

Describe how these cities industrialized: - Birmingham - Memphis - Richmond

- Birmingham: developed into one of the nation's leading steel producers - Memphis: prospered as a center for the South's growing - Richmond: the former capital of the Confederacy, became the capital of the Nation's tobacco industry.

What kinds of things made it possible for people to live further and further away from work?

- Horse-drawn cars - Cable cars - Electric trolleys - Elevated railroads - Subways

Describe some of the ways in which African Americans were discriminated against in the South:

- They could not serve on juries - They often received stricter punishment than Whites - Lynch mobs killed more than 1,400 Black men during the 1890s

Define the following business organization systems used by other industrialists:

- Trust: An organization or board that manages the assets of other companies. - Horizontal Integration: A process through which one company takes control of all stages of making a product. - Vertical Integration: A process through which one company takes control of all stages of making a product. - Holding Companies: A company created to own and control diverse companies.

Proponents of the "New South" wanted the South to have:

1. A self-sufficient economy, built on modern capitalist values 2. Industrial growth 3. Modernized transportation 4. Improved race relations

The growth of railroads resulted in....

1. Mass production 2. Mass consumption 3. Economic specialization

Describe the following two factors and how they slowed industrial growth in the South?

1. Northern domination: northern financing dominated much of the Southern economy. Northern investors controlled ¾ of the Southern railroads and by 1900 had control of the South's steel industry as well. 2. Failure to expand education: local governments did not invest in technical and engineering schools. As a result, few Southerners had the skills needed to foster industrial development.

Which inventions were made in the following years? Also, list who invented them if available.

1867: typewriter 1876: telephone 1879: cash register 1887: calculating machine 1888: adding machine 1888: Eastman's Kodak camera 1884: fountain pen 1895: King Gillette's safety razor and blade

Standard oil controlled ----- of the oil refinery business.

90%

What is a monopoly?

A company that dominates a market so much that it faces little or no competition from other companies.

What were the Farmers' Southern Alliance and the Colored Farmers' National Alliance?

Both organizations rallied behind political reforms to solve the farmers' economic problems.

The building of suspension bridges like the ---------- made commuting from residential areas and city centers possible.

Brooklyn Bridge

How did the government support the 5x growth of the rail industry from 1865 - 1900?

By providing companies low-interest loans and millions of acres of public lands.

Why was it difficult for African Americans to move into the Middle Class?

Economic discrimination was also widespread, keeping most southern African Americans out of skilled trades and even factory jobs. Thus, while poor Whites and immigrants learned the industrial skills that would help them rise into the middle class, African Americans remained engaged in farming and low-paying domestic work.

What was exalted in the novels of Horatio Alger?

Every Alger novel portrayed a young man of modest means who became wealthy through honesty, hard work, and a little luck.

Why did some praise him?

For paving the way for Black self-reliance because of his emphasis on starting and supporting Black-owned businesses.

Technology and the Growth of Cities What made the growth of cities possible?

Improvements in urban transportation made the growth of cities possible.

Why did people reject government intervention in the economy?

The prevailing economic, scientific, and religious beliefs of the late 19th century led people to reject government regulation of business.

Who were some of the first major mail-order companies?

Sears, Roebuck and Co., and Montgomery Ward

What were Jim Crow Laws?

Segregation laws that required segregated washrooms, drinking fountains, park benches, and other facilities in virtually all public places.

Describe the actions of Jay Gould:

Speculators such as Jay Gould entered the railroad business for quick profits and made their millions by selling off assets and watering stock.

What made up about 30% of Us imports by 1900? From where?

Sugar and rubber from Cuba, Brazil, and Asia.

Plessy v. Ferguson is a landmark Supreme Court case that held up the ideas:

That a Louisiana law requiring "separate but equal accommodations" for White and Black railroad passengers. The Court ruled that Louisiana's law did not violate the 14th Amendment's guarantee of "equal protection of the laws."

Conservative Economics What did Adam Smith assert in Wealth of Nations?

That mercantilism, which included extensive regulation of trade by government, was less efficient than allowing businesses to be guided by the "invisible hand" of the law of supply and demand.

What did he preach at the Atlanta Compromise?

That the agitation of the questions of social equality is the extremist folly.

What happened in 1833?

The American Railroad Association divided the country into 4 time zones.

What was ruled in the Civil Rights Cases of 1883?

The Court rules that Congress could not ban racial discrimination practiced by private citizens and businesses, including railroads and hotels, used by the public.

Describe the growth that took place in the South from 1865 - 1900:

The South's rate of postwar growth from 1865 to 1900 equaled or surpassed that of the rest of the country in population, industry, and railroads.

What was the first billion-dollar company? This company was also the....

The United States Steel. Also the largest enterprise in the world, employing 168,000 people and controlling more than ⅗ of the nation's steel business.

What allowed J. Pierpont Morgan to move in and consolidate smaller rail companies?

The bankruptcy of ¼ of all railroads.

What did this introduce to the world?

The concept of mechanics and engineers working on a project as a team rather than independently.

What was the most important innovation of the railroad?

The creation of the modern stockholder corporation.

While the West was being developed, the South was still struggling with what?

The devastation of the Civil War.

What was an interlocking directorate? How did this result in a monopoly?

The rail system was controlled by a few powerful men such as Morgan, who dominated the boards of competing railroad corporations through interlocking directorates (the same directors ran competing companies). In effect, they created regional railroad monopolies.

What did they favor? How did they exert political power?

The redeemers often used race as a rallying cry to deflect attention from the real concerns of tenant farmers and the working poor. They discovered that they could exert political power by playing on the racial fears of Whites.

What stood in the way of farmers really uniting in the South?

The economic interests of the upper class and the powerful racial attitudes of Whites stood in their way.

What caused cotton prices to drop by 50% in the 1890s?

The growing of excess cotton.

How did consolidation change this?

The inefficiencies were reduced after the Civil War through consolidation of competing railroads into integrated trunk lines. A trunk line was the major route between large cities; smaller branch lines connected the trunk line with outlying towns.

Inventions What marked the beginning of the communication revolution (and when)?

The invention of the telegraph by Samuel F. B. Morse in 1844.

His invention made what possible?

The lighting of cities and the operation of electric streetcars, subways, and electrically powered machinery and appliances.

What other important "inventions" helped large scale industrial growth?

The management and financial structures that helped to create the large-scale industries that came to dominate the era.

What major inventions did George Westinghouse contribute?

Air brakes for railroads and a transformer for producing high-voltage alternating current.

The ideas of laissez-faire economics were used by industrialists to do what?

American industrialists appealed to laissez-faire theory to justify their methods of doing business.

Who was W.E.B. Dubois?

An African American leader who demanded an end to segregation and the granting of equal civil rights to all Americans.

What did Booker T. Washington establish?

An industrial and agricultural school for African Americans in Tuskegee, Alabama.

Why were Southern banks poor?

Because people were poor and profits from industry flowed to the North.

What was the International Migration Society? Who formed it?

Bishop Henry Turner formed the International Migration Society in 1894 to help Blacks emigrate to Africa. Many African Americans moved to Kansas and Oklahoma.

What prompted a consumer economy?

New marketing techniques

Who was home to the first skyscraper?

Chicago

Railroad building promoted the growth of which other industries?

Coal and steel

Who was George Washington Carver and how did his work help the South?

George Washington Carver, an African American scientist at Tuskegee Institute in Alabama, promoted the growing of such crops as peanuts, sweet potatoes, and soybeans.

Which states overtook the North as leading textile producers?

Georgia, North Carolina, and South Carolina

What happened to Granger Laws?

Granger laws passed by Midwestern states in the 1870s were overturned by the Supreme Court, and the federal Interstate Commerce Act of 1887 was at first ineffective.

What did he promote?

Hard work, moderation, and economic self-help.

Who was John D. Rockefeller and what company did he found?

He founded a company that would quickly eliminate its competition and take control of most of the nation's oil refineries. He founded the Standard Oil Trust.

What did Cornelius Vanderbilt do?

He used his millions earned from steamboat business to merge local railroads into the New York Central Railroad, which ran from New York City to Chicago.

Who was Andrew Carnegie and what industries was he involved in?

He was a shrewd business genius. He was part of the steel industry.

The Steel Industry What advancement was made in the steel industry in the 1850s and by who?

Henry Bessemer in England and William Kelly in the United States discovered that blasting air through molten iron produced high-quality steel.

What is vertical integration?

In this system a company would control every stage of the industrial process, from mining the raw materials to transporting the finished product.

Why did the Great Lakes region emerge as the center of steel production?

It had abundant coal reserves and access to the iron ore of Minnesota's Mesabi Range.

What was the result of this consolidation?

It made the rail system more efficient.

Industrial Empires What kinds of things were produced in the "second" industrial revolution?

It resulted in the growth of large-scale industry and the production of steel, petroleum, electric power, and the industrial machinery to produce other goods.

What was the National Negro Business League and what did it promote?

It supported businesses owned and operated by African Americans.

What was put into place to keep African American people from voting?

Literacy tests, poll taxes, and political party primaries for Whites only.

When did the government begin to successfully regulate the rail industry?

Not until the Progressive era in the early 20th century did Congress expand the powers of the Interstate Commerce Commission to protect the public interest.

This was made possible by what inventions?

Otis elevator and the central steam-heating system with radiators in every room.

What major inventions came out of his lab?

Phonograph, dynamo for generating electric power, mimeograph, motion picture camera.

Consumer Goods Who made some of the first large department stores?

R.H. Macy and Marshall Field

These ideas provided a "scientific" sanction for what?

Racial intolerance

The Business of Railroads What was the nation's first big business?

Railroads

Segregation Democrats who took back control in the South after reconstruction ended were called:

Redeemers

What changed the eating habits of Americans?

Refrigerated railroads cars and canning and other packaged goods.

Responding to Segregation Who was Ida B. Wells, what did she write, and why did she have to move North?

She was the editor of the Memphis Free Speech, a black newspaper. She campaigned against lynching and the Jim Crow laws. Death threats and the destruction of her printing press forced her to move to the North.

How was Social Darwinism applied to the economy?

Some believed that concentrating wealth in the hands of the "fit" benefited everyone.

Why did some challenge Washington?

Some criticized him as too willing to accept discrimination.

Why were farmers tied to their land like serfs?

The shortage of credit forced farmers to borrow supplies from local merchants in the spring with a lien, or mortgage, on their crops to be paid at harvest. The combination of sharecropping and crop liens kept farmers as virtual serfs tied to the land by debt.

Competition and Consolidation Describe the inefficiencies in railroads before the civil war:

The the early decades of railroading, the building of dozens of separate local lines had resulted in different gauges and incompatible equipment.

What was the grandfather clause?

They allowed a man to vote if his grandfather had voted in elections before Reconstruction.

How were the ideas of the Protestant Work Ethic used by people like Rockefeller?

They believed that material success was a sign of God's favor and a just reward for hard work.

What did critics have to say about these giant companies?

They charged that they were bad for the economy. According to the critic, monopolies slowed innovation, overcharged consumers, and developed excessive political influence.

How did rail companies scramble to survive?

They competed by offering discounts and kickbacks to favored shippers while charging exorbitant freight rates to smaller customers such as farmers.

Why did Americans ignore this widening gap between rich and poor?

They found hope in the examples of "self-made men" in business.

Agriculture and Poverty Half of the region's population engaged in what kind of work by 1900?

They were either tenant farmers who rented land or sharecroppers who paid for the use of land with a share of the crop.

Edison and Westinghouse What was the world's first modern research laboratory?

Thomas Edison's invention factory in Menlo Park, New Jersey

Most "self - made men" were:

White, Anglo-Saxon, Protestant male who came from an upper- or middle-class background whose father was in business or banking.

What did William Graham Sumner argue?

William Graham Sumner argued that helping the poor was misguided because it interfered with the laws of nature and would only weaken the evolution of the species by preserving the unfit.

Laissez - Faire Capitalism How did federal, state, and local governments support the growth of business?

With actions such as passing high tariffs, building infrastructure, and operating public schools and universities.