1. Unit 2: Industry & the Rise of Big Business

2. Things That Prompted Industrial Growth
The Civil War
Vast Amount of Natural Resources
Large # of New Immigrants
Entrepreneurs
Protective Tariffs
Laissez-faire policies
New Inventions
Expanding RR

3. The Civil War
Industry was spurred by the amount of guns, weaponry, ships, and clothing need to conduct war
Products need to be made both quickly & efficiently

4. Westward Expansion makes a vast amount of natural resources available

5. Civil War which supplied a
Immigration
Large numbers
of immigrants
from Europe
& Asia came
to America
after the
Civil War which supplied a
sizable workforce.

6. Asian Immigrants Processed @ Angel Island
Chinese worked in mines, laundries, opium dens & on the Transcontinental RR from west to east

7. Chinese Exclusion Act,
Due to labor competition, by 1892, Congress enacted the Chinese Exclusion Act which prohibited Chinese laborers from immigrating to America.

8. Japanese Immigrants
Japanese were also discriminated against & were not allowed to go to school with white children.
This upset the Japanese government.

9. Gentlemen’s Agreement
Since the U.S. wanted to trade with Japan, Pres. Theodore Roosevelt made a Gentlemen’s Agreement with the Japanese gov’t.
Eased tensions & limited Japanese emigration.

10. European Immigration
European Immigrants coming to America were processed at Ellis Island.
Before the Civil War, most Europeans immigrated from Northern & Western Europe (Britain, Germany & France) .

11. European Immigration
After the Civil War, a new wave of immigration brought people from Southern & Eastern Europe (Italy, Greece, Romania, Bulgaria, etc.)

12. These new immigrants found it harder to assimilate to American culture because they:
Seldom spoke English
2. Were most often Catholic or Jewish
3. Had strange & different customs

13. Entrepreneurs or people who invest
in a product or enterprise fueled industrialization

14. Congress enacted a number of protective tariffs to encourage people to buy American made products as well as encouraging laissez-faire policies, which allow businesses to operate under minimal government regulation.

15. New Inventions Thomas Edison: George Westinghouse: > 1,000 patents
Technology to send electricity over long distances
Alexander Graham Bell

16. New Inventions Bessemer Process
Created strong, but lightweight steel which allowed to be built

17. Expansion of the Railroad stimulates new technology
Time zones
Subways
Commuter trains
Electric streetcars

18. Transcontinental Railroad meets at Promontory Point, Utah, 1869

19. Transcontinental RR
Chinese Workers lay track from West to East. Irish Workers lay track from East to West.

20. Farmers are charged by the railroad to store and transport
Farmers & the Railroad
Farmers are charged
by the railroad to
store and transport
their grain.

21. Dealing with the Railroad leads to a number of Farmer’s Organizations which use collective bargaining to get lower rates & learn new farming techniques.

22. The Populist Party Forms!

23. Southern & Colored Farmers’ Alliances
The Grange

24. Effects of Industrial Growth
Oil, kerosene & gasoline industries created
Size of workforce increased
American made goods cheaper
Electricity, phone, RRs & Steel companies develop
Mass production of products
Environmental damage

25. Andrew Carnegie STEEL Tycoon
Big Business Leaders
Andrew Carnegie STEEL Tycoon

26. Big Business Leaders
JP Morgan
Cornelius Vanderbilt
Banking
Railroads

27. John D. Rockefeller ~ Standard Oil
Big Business Leaders
John D. Rockefeller ~
Standard Oil

28. Making that $$$ Vertical Integration Horizontal Integration
All stages of production of a good are controlled by one company. i.e. Oil industry=A single company owns the oil wells, refines the oil & then sells the gasoline.
A company controls a single stage of production or single industry completely, resulting in a monopoly. i.e. Oil Industry=Owns all of the gas stations

29. Other Business Tactics
Monopolies=Complete control of a production or service
Trusts=Group of separate companies placed under the control of a single managing board in order to form a monopoly.
Cartels=Businesses making the same product agree to cut production to make the price

30. Sherman Anti-Trust Act
1890 law banning any trust that
restrained interstate trade or commerce
Purpose: to keep monopolies & cartels from forming