1. Industrialization

2. 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

5. 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

7. 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

8. 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

9. 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

13. 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

18. 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

19. 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

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

21. Credit Mobilier Scandal
Page 446

22. 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

23. 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

24. 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

25. Andrew Carnegie
Bessemer process
Vertical integration
Gospel of Wealth

26. John D. Rockefeller
Standard Oil
Horizontal integration
Monopolies
Pros
Cons

27. 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

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

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

30. 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

31. 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

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

33. 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)

38. 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

40. 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)