Section 1 The Rise of Industry

 Write the Question and Answer:  What was the Homestead Act of 1862 and what was its impact?  What was the Dawes Act and what was its purpose?

 Natural Resources  Lots of raw materials – water, timber, coal, iron and copper. Many of these resources were located in the West. The settlement after the Civil War helped to accelerate Industrialization  A new resource – petroleum was just beginning to be tapped. (Kerosene)  Edwin Drake – 1859 – drilled the first oil well near Titusville, Pennsylvania. As oil production increased, it fueled economic expansion.

 A Large Workforce  Between 1860 and 1910 the population nearly tripled.  Increased workforce and demand for consumer goods.  Large families and massive immigration ▪ Conditions in China and Eastern Europe were not good.  – 20 million immigrants

 Americans embraced the idea of laissez-faire which means ‘let do’ a French phrase that means ‘let people do as they choose’ Lack of government control.  Relies on supply and demand  Low taxes and low government debt  Entrepreneurs – people who risk their capital in organizing and running a business.

 For the most part the government stayed out of the way. This policy produced results other than what had been intended.  Sectional tensions between North and South early 1800s  North – high tariffs and subsides  South – low tariffs and promote trade  The Civil War ended this debate  Republicans passed the Morrill Tariff (raised tariffs)  High tariffs stayed even though they weren’t part of Laissez- Faire. Felt they were needed.

 Bell and the Telephone  Alexander Graham Bell – invented the telephone. Revolutionized communications. Created the Bell Telephone company and later became the American Telephone and Telegraph Company (AT&T)  Edison and Electricity  Thomas Alva Edison – worked to invent new products  Invented the Phonograph, lightbulb, electric generator, battery, dictaphone, mimeograph and the motion picture.  1882 – Edison Electric Illuminating Company – new industry providing electric power to New York City.  Several of Edison companies merged into the Edison General Electric Company, which is known today as GE

 Technology’s Impact  Technology became a part of most everyone’s life.  Thaddeus Lowe invented the ice machine – basis of the refrigerator. Gustavus Swift and the refrigerated railroad car – fresh meat delivery.  Technology changed the shoe and clothing industries as well.

 Describe the concept of laissez-faire.  What is an entrepreneur? Give two examples of entrepreneurs. Who are they and what did they do?

Chapter 9 Section 2

 By 1900 the U.S. had over 200,000 miles of rail road.  The railroad boom began in 1862 when the Pacific Railway Act was signed.  What was the name of the 2 railroads that built the transcontinental railroad?  Union Pacific & the Central Pacific ~ 10,000 workers ~ 10,000 animals 1 mile of track

 Four merchants known as the “Big Four” invested in the Central Pacific Railroad.  Leland Stanford.(grocer)  Charley Crocker (shop owner)  Collins P. Huntington and Mark Hopkins (Hardware store owners)

 Gov. of CA  U.S. Senator  1885 Founded Stanford Univ.  Headed the Central Pacific railroad  Employed tons of Chinese

 Spurred Industrial growth by linking:  The Nation  Railroads increased the size of markets for many products  Stimulated the economy by spending lots of money on steel, coal, timber

 Famous Railroad Consolidator  Had built the largest steam boat fleet in America  1869 – was able to offer the 1 st direct rail service between New York City & Chicago

 Before the 1880s, regions set their clocks by the sun’s position in the sky.  To make rail service more safe, in 1883 the American Railway Association divided the country into 4 time zones.  What are these time zones called?

 To encourage railroad constructions the federal government gave land grants to many railroad companies. A land grant is a piece of land that is given to someone.  Railroad companies made most of their money by selling government land grants.

 Scandals created the impression that railroad entrepreneurs were robber barons, or people who looted an industry and gave nothing back.  Jay Gould – practiced “insider trading.”  He used information he received as a railroad owner to manipulate stock prices to his benefit.  James J Hill (Was NOT a robber Baron) – built & operated the Great Northern railroad from St. Paul MN to WA

 A construction company set up by several stockholders of the Union Pacific.  Scandal included many government officials.

 By 1900Big Business dominates the economy  Would be possible w/o the Corporation, the people who own the Corporation are called the Stockholders  Why: Because they own ownership of that company (AKA Stock)  When people invest in these companies they are able to sale more and produce goods more rapidly

 Even though falling prices help consumers they hurt business so...they pulled t/g to form POOLS AKA agreements to maintain prices at a certain level.  These were generally unpopular & did not last long

 Born in Scotland  Started as a railroad Superv.  1875 opened a steel comp. in Pittsburgh, PA  1 st to use the Bessemer Process – a new process of making steel easy & cheaply  Known for Vertical Integration – owns all of the factors of production for its business

Distributer Raw Materials Assembly Manufacturer

 John D Rockefeller is an example  Combining many firms in the same type of business (this can limit competition)  1880 John D. R – owned 90% of the oil refining industry  When a company receive control over the entire market than it becomes a Monopoly  Americans don’t like this why?...

 1882 Standard Oil formed the first TRUST  Trust - A new way of merging businesses that did not violate the laws a/g owning other companies Holding companies – does not produce anything itself, it owns stock in the companies that do produce goods Selling the Product – Advertising (90 mill per yr) flyers, magazines, bill boards, newspapers * Department Stores emerged by 1877 – most popular was Woolworth’s, later came Macy's, Marshall Fields