Industrialization

How the U.S. Industrialized Natural resources: water, timber, coal, iron and copper RR were important since most materials were in the West Petroleum = Kerosene Edwin Drake: drilling for oil Large population = more consumers Large families Immigrants from China and E. Europe

Free Enterprise Laissez-faire: no government interference Social Darwinism Supply and Demand Low taxes Low government debt Entrepreneurs Manufacturing and transportation Foreign investors, especially Great Britain

Government’s Role Taxes and spending low Few regulations No wage or price controlling Policies to help industry North- high tariffs, subsidies for internal improvements to the West South- no subsidizes, low tariffs Morrill Tariff- high tariffs, loans to RR, cheap mineral rich public land

Morrill Tariff High tariffs hurt American traders Foreign countries raised tariffs Hurt farmers Sped up industrialization Western Europe had already industrialized Not sure if American industries could keep pace

New Inventions Alexander Graham Bell-telephone (1876) First call was to his assistant: “Come here, Watson, I want you.” Revolutionized business and personal communication Bell telephone company  AT&T Thomas Alva Edison  GE Phonograph (1877) Light bulb (1879) Electric generator (1879) Improved: battery, Dictaphone, motion picture

Technologies Impact Thaddeus Lowe: ice machine Gustavus Swift: refrigerated railway car Fresher food = less food poison Northrop automatic loom: cloth made faster Standardized measurements based on Union soldiers Power driven cloth cutters and sewing machines Shoes Cyrus Field: telegraph cable across Atlantic Radios

Linking the Nation Pacific Railway Act: provided for the construction of the transcontinental railroad Union Pacific (Grenville Dodge) Central Pacific (Big Four) Chinese laborers Competition to the middle How did the CP get supplies and why we needed a transcontinental RR

Railroads Spur Growth Created economic growth in other industries Connecting independent rail lines Pennsylvania RR Cornelius Vanderbilt: New York Central, Grand Central Station Time Zones Boosted economy, harmed other industries Brought people together

How RR Got $ Land Grants Sell land to settlers, real estate, businesses Cities developed Public land to states Investors Robber Barons Jay Gould

Credit Mobilier Scandal Page 446

The Great Northern James J. Hill Planned route Lower fares Demands of China Never used land grants Most successful transcontinental RR Never went into bankruptcy

Corporations Organization owned by many people, but treated by law as if it were a single person Stockholders Shares = stocks Raise money and spend little Prior to 1830’s there were few b/c of charters General incorporation laws

Economies of Scale Make goods cheaper, produce quicker, larger facilities Fixed Costs: costs whether operating or not (loans, mortgages, taxes) Operating Costs: costs that occur when running a company (wages, shipping, buying supplies) Small vs. Big businesses (p. 448) Pools

Andrew Carnegie Bessemer process Vertical integration Gospel of Wealth

John D. Rockefeller Standard Oil Horizontal integration Monopolies Pros Cons

Other Ways to Consolidate Industry Trusts Couldn’t own stock in another company w/o state permission One person can manage another's property People gave stock to trustees in exchange for shares in the trust Holding Companies Owns stocks in various companies to control them, but it does not produce anything

Sherman Anti-Trust Act Outlawed monopolies and trusts Based on the Congress ability to regulate interstate commerce Good Monopolies vs. Bad Monopolies

Selling the Product Large displays replaced small typed ads Department stores developed Chain stores (Woolworth’s) Mail-order catalogs (Montgomery Ward and Sears Roebuck)

Working in the United States Work became monotonous, boring, and dangerous Standard of living increased Class division Deflation: prices fall as wages stay the same (mixed feelings) Unions organized: way to bargain collectively, to get higher wages and better working conditions

Early Unions Craft workers v. Industrial workers Trade unions: unions limited to people with specific skills (craft workers) Industrial unions: united craft and common workers in one industry Employers fight back Oaths and contracts Detectives Blacklist Lockout Strikebreakers

Political and Social Opposition No laws protecting unions Courts decided against them Marxism Anarchy Violence Nativism

The Struggle to Organize The Great Railroad Strike of 1877 (p 457) The Knights of Labor (p 457) The Haymarket Riot (p 458) The Pullman Strike (p 458)

The American Federation of Labor 20 of the nation’s trade unions met and created the AFL Headed by Samuel Gompers Stayed out of politics Rejected communism and socialism Small gains Goals: recognize and bargain w/ unions, closed shops, 8 hr. workday

Working Women By 1900 18% of workforce Women’s work Domestic servants Teachers, nurses, sales clerks, secretaries Industrial (garments and food processing) Less pay for the same job Excluded from unions Women’s Trade Union League (p 459)