ADVANTAGES that FACILITATED INDUSTRIALIZATION WEALTH of NATURAL RESOURCES TECHNOLOGICAL INNOVATIONS GROWING POPULATION EXTENSIVE RAILWAY NETWORK

WEALTH of NATURAL RESOURCES COAL—Fuel for Steam Power IRON ORE—Basic building material OIL—Basic Fuel Source GOLD—Growing Money Supply A.  COAL—Provides cheap fuel for steam power      i.  Steam power is new power source that makes operation of large machinery possible B.  IRON ORE—Provides cheap basic building material      i.  Steel for railroads, bridges, building frames, machinery C.  OIL—Provides basic fuel source      i.   Kerosene for lighting  Workday not restricted to daylight      ii.  Gasoline for internal combustion engine D. GOLD—Necessary for Growing Money Supply     i.      Value of dollar tied to gold (ex. $20=1oz gold)     ii.      Total money supply determined by supply of gold & silver     iii.      Growing economy needs a growing money supply 1.if more stuff is produced (GNP) but amount $ in society stays same, prices must  2.prices  profits  business failures  GNP (shrinking economy) 3.if prices & profits are to stay stable, money supply must grow with economy      iv.      For money supply to grow, must have continuous increases in gold supply      v.      Can only increase gold supply if there are natural reserves of gold to mine

TECHNOLOGICAL INNOVATIONS OIL DRILL—Easier Access to Oil BESSEMER PROCESS—Faster Steel STEEL FRAME CONSTRUCTION—Better Infrastructure ELECTRICITY—Transportable Power TELEPHONE—Improved Communication A. OIL DRILL—Access to more oil cheaper B. BESSEMER PROCESS—Makes more steel faster & cheaper     i.      1 days worth of steel could now be made in 15 minutes C. STEEL FRAME CONSTRUCTION—Longer bridges, Taller buildings (better infrastructure, more usuable space) D.  ELECTRICITY—Power source, Lighting (more productive time) E.  TELEPHONE—Improved communicationmore complex organization possible over long distances (see map of long distance service)

GROWING POPULATION Needed for: Labor—People to Make things Markets—People to Buy things 1870 (38 million) to 1920 (103 million) Immigration = 20 million A. Large population needed for labor supply and market for products B. 1870 to 1920 population increased from 38 million to 103 million (200%) C. IMMIGRATION (See map of % of population foreign born)     i.      1870-1920: 20 million immigrants     ii.      Immigrants often willing to work for less than native workers (wages low=cost of production low=prices low)

EXTENSIVE RR NETWORK Facilitates Transportation of Goods Growth Supported by Gov’t Creates National Market A.   US gov’t gives land grants & generous loans to RR companies B.   1st Transcontinental RR completed 1869 C.   Creates a national market—many more consumers can be reached  fierce competition between formerly local monopolies, incentive for expansion of business