1. The Second Industrial Revolution
Spectacular economic growth after the Civil War

2. Directions for first section of notes
Create concept map with FACTORS LEADING TO ECONOMIC GROWTH in the middle and 8 outer circles, leaving room to add information to those 8 outer circles on the outside of them
Example of Concept Map

3. Factors leading to economic growth
Abundant Natural Resources
Fertile soil
Swift-flowing streams
Vast quantities of timber
Rich deposits of coal, iron ore, oil, phosphates, and copper

4. Factors leading to economic growth
The Free-Enterprise System
Capitalist system – factors of production are privately owned
People are free to buy and sell goods and labor on an open market
Market acts to eliminate less efficient producers
Producers of better and cheaper goods are generally able to compete more effectively and stay in business

5. Factors leading to economic growth
Laissez-faire policy (government “hands-off” economic matters)
Patent system – encouraged inventiveness by guarantee
-ing an inventor exclusive
rights to the use of his or her
invention for a limited period

6. Factors leading to economic growth
Tariffs
Protected American manufacturing from foreign competition by imposing customs duties on foreign-made goods
Δ Federal Land Policies
Grants to railroad companies encouraged construction

7. Factors leading to economic growth
Legacy of First Industrial Revolution
Use of steamboats and railroads began linking the country
In the South, led to the expansion of the “Cotton Belt”
Midwest produced livestock and wheat for both the NE and the South

8. Factors leading to economic growth
Economic stimulus provided by the Civil War
Northern manufacturing grew from the needs of the war
The passing of the following federal laws:
Morrill Tariff (1861) – protect American manufacturing from European competition
National Banking Act (1863&1864) – created national banking system and currency
Homestead Act (1862) – offered free land to settlers occupying farms in the West
Morrill Act (1862) – gave land grants to states to support technical and agricultural colleges
Pacific Railway Act (1862) – gave federal loans and land grants to railroad companies to complete transcontinental railroad

9. Please use your note outline and matrix
Gilded Age and Second Industrial Revolution
Please use your note outline and matrix

10. Second Industrial Revolution – Spread of Railways
By the end of the Civil War, the U.S. had 35,000 miles of railroad track.
25 years later, it had more than 5X that mileage – more than all of Europe
Steel rails replaced iron ones
Refrigerated cars were invented to haul meat long distances

11. Second Industrial Revolution
George Pullman
Invented the sleeping car so passengers would be more comfortable

12. 2nd Industrial Revolution - Steel
Bessemer Process made producing steel more economical
Cheaper steel allowed Americans to produce thousands of miles of railroad track, build giant steamships, suspension bridges, turbines and engines, and skyscrapers
Andrew Carnegie brings the Bessemer Process to America and begins Carnegie Steel

13. Bessemer Process
Andrew Carnegie

14. The Gilded Age The Gilded Age
Historians sometimes refer to the Second Industrial Revolution as the “Gilded Age”
A gilded surface has a thin layer of gold on top concealing a less expensive metal beneath
Phrase taken from Mark Twain
Humorously criticized greed and corruption in American society

15. Social Darwinism
Philosophy that the most successful individuals were those endowed with superior talents who had the ability to adapt, survive, and thrive
Wealthy people often viewed poverty as the fault of the poor themselves rather than as the product of circumstances or of injustices in the social system

16. Andrew Carnegie Andrew Carnegie Scottish Immigrant
Adopted Bessemer Process of making steel and brought it back to America
Bought out competing local companies in the 1870s
Vertical Integration – having complete control of all stages of production and distribution

17. Andrew Carnegie – Gospel of Wealth
Wrote a book that stated that rich men should not die with their wealth but should give it away, especially to institutions that promoted self-improvement
Carnegie Library - Pittsburgh
Carnegie Hall – New York

18. 2nd Industrial Revolution – Communication Innovations
Telegraph
Samuel Morse invented the telegraph using electromagnetism and using a code of long and short spaces capable of transmitting the alphabet.
By breaking and closing the circuit, the telegraph operator communicate over a long distance

19. 2nd Industrial Revolution – Communication Innovation
Transatlantic Cable
In 1865, Cyrus Field made a heavy and durable cable to be able to send and receive telegraphic messages between America and Europe

20. 2nd Industrial Revolution – Communication Innovation
Telephone
Alexander Graham Bell began investigating how to reproduce the sounds of speech electronically to help the deaf since his mother and wife were both deaf
In 1875, he patented the telephone which made it possible to communicate over long distances using natural speech instead of Morse code

21. 2nd Industrial Revolution – Electricity
Edison worked with electricity for several years before he patented the phonograph (record player)
Continuing his research in Menlo Park, NJ, he invented a practical electric light bulb in 1879
Continued inventing things like motion pictures, improved battery, first electric power station
He filed more than 1,000 patents

22. Phonograph
Edison’s Light Bulb
Young Edison
Older Edison

23. 2nd Industrial Revolution – Electricity
Nicola Tesla – Serbian immigrant who came to the U.S. to work with Edison.
Left to partner with Westinghouse because he believed “AC” was better than Edison’s “DC”

24. George Westinghouse
Nicola Tesla

25. 2nd Industrial Revolution - Oil
John D. Rockefeller
Early 19th century, people used whale fat (blubber) to make oil for lighting
1st oil well was drilled by Edwin Drake in Pennsylvania in 1859
Improvements in refining petroleum led to gasoline and Rockefeller’s Standard Oil Company

26. Rockefeller’s Approach
Horizontal Integration – one owner controls all companies and facilities at one stage of production of a good
Standard Oil Trust bought 90% of all oil refining in the U.S.
Lowered the price of kerosene and other oil products by more than 80%, which his competitors could not do
Trust – stockholders of existing companies gave their stocks over to the board of directors of a “trust” in exchange for “trust certificates”, entitling them to dividends based on the profits of the entire trust. The trustees exercised control over the different companies in the trust and managed them as a single enterprise. By combining all the companies producing a particular product (or stage of production) into a single trust, the trustees could obtain complete control over that commodity

27. THE TRUST GIANTS POINT OF VIEW – “What a funny little government”

28. 2nd Industrial Revolution – J.P. Morgan
Banker and backer of Edison until it was shown that Tesla’s “AC” system worked better
Companies – General Electric and J.P. Morgan & Company
Bought Carnegie Steel for $400 million and changed the name to U.S. Steel, which became the first billion-dollar company in America

30. 2nd Industrial Revolution – Other Industries
Internal Combustion Engine
Henry Ford put the power of the internal combustion engine into the automobile
Revolutionized the labor aspect with the assembly line and increased wages

31. 2nd Industrial Revolution – Other Industries
First Airplane
Wilbur and Orville Wright in Kittyhawk, NC in 1903

32. 2nd Industrial Revolution – Women and African American Inventors
John Albert Burr patent for new rotary blades
Josephine Cochran and the 1st Automatic Dishwasher

33. 2nd Industrial Revolution – Women and African American Inventors
Granville T. Woods – patented a multiplex telegraph that could send signals between stations and moving trains
Elijah McCoy – Patented oil-drop cubs that automatically added oil to lubricate the engines of locomotives and steamships enabling them to run better

34. 2nd Industrial Revolution – Women and African American Inventors
Madame C.J. Walker – Sold hair care and cosmetic products for African-American women. May have been the 1st African American millionaire
Sarah Goode received a patent for a fold-away bed that could be tucked into a desk

35. 2nd Industrial Revolution – Women and African American Inventors
Jan Ernst Matzeliger – Born in S. America, he moved to U.S. at the age of 19
Invented a machine that attached the upper part of a leather shoe to its sole
By hand, an expert shoemaker could attach no more than 50 soles a day; with the new machine, a worker could attach 150 to 700 soles a day
Cut the price of shoes in half

36. Activities (Choose One)
Write an imaginary newspaper headline and article announcing the patenting of a new invention, such as the telephone or electric light bulb
Must be at least two paragraphs
Which invention from this period do you think had the greatest impact on society? Write at least two paragraphs stating which invention you have chose, why you have chosen it, and how it benefited/impacted society.

37. Monopolies
Eliminating competition leads to a monopoly – complete control over the production of a good or service
Disadvantages:
Less incentive to improve products
Could raise prices at any time. Consumers had no choice because of the lack of alternative products

38. Governments Response to Monopolies
Under the laissez-faire ideology, government was not supposed to interfere
Series of Supreme Court decisions affirmed that government had no right to interfere
Business leaders often gave hefty campaign contributions and some even secretly bribed government officials

39. Governments Response to Monopolies
The first anti-trust laws were weakly enforced but they established that Congress could regulate business in some circumstances
Sherman Anti-Trust Act – combinations “in restraint of trade” are prohibited
Interstate Commerce Act – Congress regulates interstate railroads; sets up enforcement agency

40. Florida History Henry Morrison Flagler (1830-1913)
Partner of John D. Rockefeller in the creation of Standard Oil
In 1887 and 1888, he built the Ponce de Leon Hotel (now Flagler College) and other luxury hotels in Palm Beach and Miami, forming the basis for the tourism industry
“Father of Miami”

41. Henry M. Flagler Florida East Coast Railroad
Flagler merged several smaller railroads
His railroad brought tourists to fill his hotels, but also made it possible for Floridians to export their agricultural products, including citrus fruits, vegetables, tobacco and cigars, cotton, beef, and cattle
Built a railroad connecting south of FL to Key West for shipping goods throughout the Caribbean (was destroyed by hurricane in 1935)

42. Henry Morrison Flagler