Economic Cycles: The Panics of 1873 and 1893 Isy Pacini APUSH 1B

Background and Status Quo Industrial growth: railroads, iron, coal, electricity, steel, oil, banks. Laissez-faire conservatism Gospel of Wealth Social Darwinism; survival of the fittest Effects of technological development on worker/work-place.

Capitalism- an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state. Monopoly- the exclusive possession or control of the supply or trade in a commodity or service. Trust- an organization that manages money or property for another group or person. Key Terms

Jay Cooke- an American financier who helped finance the Union war effort during the American Civil War and the postwar development of railroads in the northwestern United States. J.P. Morgan- A financier, philanthropist and one of the fathers of corporate finance in the United States. William Jennings Bryan- Democratic Party nominee for president in the election of 1896. Known as the “Boy Orator,” Bryan was the greatest champion of inflationary “free silver” around the turn of the century. Andrew Carnegie- One of the nations first large scale philanthropists. Helped build the steel empire. John D. Rockefeller- Industrialist who founded the Standard Oil Company. Key People

Panic of 1873 Info Panic of 1873- Defined as the financial crisis that triggered a depression lasting from 1873-1879. Caused what is known as the Long Depression. Was known as the worst depression in US History to date. Causes Post War Inflation Trade Deficits Economic Dislocation from Europe Strain on Bank Reserves

Panic of 1873: Political Backlash Voters turned against the Republican Party. There was a change in the global political climate. North really hated reconstruction.

Panic of 1873: Social Backlash Rail lines went bankrupt. Unemployment dropped to 8.25% Over 18,000 businesses failed. Salaries were reduced. Major loss of jobs. Start of major immigration boost.

Panic of 1893 Info Panic of 1893- Defined as the economic collapse of the same year set off by business collapse. Known as, once again, the worst economic depression in US History to date. Causes Argentina Overbuilding of Railroads Flooding of Silver into the Economy Inflation

Panic of 1893: Political Backlash Huge debates over bimetallism. Strengthened the following of the Populist Party. A gold rush would start the country on the road to economic growth.

Panic of 1893: Social Backlash Left millions without work. 25% in Pennsylvania 35% in New York 43% in Michigan Great social unrest stemmed from President Cleveland’s inability to end the depression. Strikes

Labor Movements Organizations Knights of Labor Were the first large national union. Sought to organize all workers in all industries and to form labor- management cooperative businesses. American Federation of Labor Restricted membership to those with similar interests; only skilled workers that were difficult to replace if they went on strike.

Labor Movements Strikes Rail Road Strike of 1877 Homestead Steel Railroad strike ended when federal troops attacked workers Homestead Steel 1892 strike at Carnegie's Homestead Steel plant outside Pittsburgh turned violent Pitched battle between workers and armed security left 12 men dead 8000 state militia intervened to crush strike Steel industry remained union-free until 1930s Pullman Strike In 1894, Pullman cut wages at his factory but did not reduce rents for workers living in Pullman Town Workers went on strike, gained support of national American Railways Union Strike ended in failure after government troops intervened and courts ruled it illegal Labor Movements

Primary Source

Primary Source Analysis From the AP Gods Document Information Shows trusts as oversized. Shows public entrance to the Senate closed. Shows monopolists lined up at monopolists’ entrance. Shows some senators looking back toward the trusts. Shows sign saying “This is a Senate of the monopolists by the monopolists and for the monopolists.”

Primary Source Analysis From the AP Gods Document Inferences The Senate (government) is controlled by big business. People have no control over the Senate because senators are not directly elected. Monopolists (trusts) are wealthy and powerful. Trusts control a great many industries.

Works Cited http://www.loc.gov/pictures/resource/ppmsca.29133/ http://historybusiness.org/2644-panic-of-1873.html http://www.loc.gov/pictures/resource/cph.3a37787/ http://historybusiness.org/2645-panic-of-1893.html http://www.timetoast.com/timelines/growth-of-the-labor-movement The Causes of the Panic of 1893 http://www.authentichistory.com/1898-1913/1-industrialization/1- becoming/index.html http://www.jstor.org/stable/2139901 http://apcentral.collegeboard.com/apc/public/repository/ap12_us_history_ q1.pdf Wall Street and the Fruited Plains by James T. Wall http://www.cartoonmovement.com/collection/78 The 100 Most Significant Events in American Business by Quentin A. Skrabec, Jr. http://careandcost.com/2011/09/26/the-new-gilded-age-in-one-chart/ America’s Gilded Age: An Eyewitness History by Judith Clark http://www.nndb.com/people/965/000082719/ The Annals of America Volume 10 https://www.youtube.com/watch?v=S5Yrztwff1Q https://apus-06-07.wikispaces.com/political+cartoons+-+gilded+age http://www.shmoop.com/gilded-age/gender.html https://www.marxists.org/reference/archive/plunkett-george/tammany- hall/  http://c.wrzuta.pl/wo5388/854944f3002b7be649b9011f/0/1873%20dep ression.pdf