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Chapters 16, 17, 18
Chapter 16
Post Civil War Growth in America
Factors
I. The Civil War
-increased the demands for
goods, usually manufactured through the domestic system. The early wealthy industrialists had their origin there.
II.Limitless
supply of natural resources
such as coal, oil etc.
III.Tremendous growth of Railroads
and other
transportation facilities.
a) aided every phase of industry;
from raw material to the finished products
b)
linked all parts of the country
c) opened new farm land
d) stimulated trade with the Far East
Negative aspect
- discriminating rates(unpublished and changed to destroy competition). Kickbacks and rebates(cheaper prices and pay backs
to big customers)
Interstate Commerce Act (1887)- forbid railroads to do the above. Not effective because of court holdups
and weak commissioners.
IV.Population of the US increased 2 and 1/2 times from 1860-1900, creating an ever expanding
market for manufactured goods
V. Labor - 2 sources
1. farms
2. immigrants
VI. Large amounts of
investment capital
put into business growth
VII.Cooperative attitude of local, state, and national govt.
1. landgrants amounting to over 130 million acres. (especially to railroads who provided transportation of people,
natural resources and finished products)
2. Protective Tariffs - "protected" infantile American businesses
from foreign competition. They increased America's labor supply as business increased. This caused higher wages as prices
increased to consumers. Tariffs eliminate foreign competition and American business began to monopolize. This, however,
also eliminated foreign markets.
3. A stable money system based on gold.
All of this caused a wedding
of business to politics and a one sided laissez faire policy in favor of big business. (no government interference or regulation)
VIII. Social and economic Darwinism
IX. Absence of international difficulties and full time devoting to
resources and internal affairs
Essay:
Explain the importance of railroads to the growth of the U.S. economy
in the 19th Century. Be sure to mention the effects on commerce, money banking, labor and government.
Business
practices and types
Corporation - chartered by the states
a) an easy access to new capital through the sale of
additional shares of stock.
b) limited liability for losses
c) permenance and continuity
Pool - "Gentlemens's
Agreement"
Made between corporations in the same industry who agreed on common practices (wages, prices). Short lived.
Trust- stocks of corporations assigned to trustees who operate all of the corporations as just one company.
Eg. Standard Oil Trust controlling oil refining.
Problem -
crushing the competition and using unfair business
practices
Sherman Anti-Trust Act- forcing a small business owner to join the trust was illegal. He must be permitted
to operate independently. Somewhat ineffective and hard to enforce.
Holding Company-
a) purchases
the voting stock of several corporations.
b) controls the patents of several industries.
c) purchases
the physical property of competing companies.
**
Question - Were the wealthy Industrialists of the
19th Century Robber Barons or Statesmen?
Facts:
1. They all believed in
Laissez Faire Capitalism
Social Darwinism
They all felt that it was their right to succeed in business. Anyone weak and not strong enough
would be left behind.
The GNP of the US tripled along with our Per Capita Income.
Small businesses
were destroyed;
The Economy was strengthened.
The American people actually benefitted from their ruthless business
practices
***
Labor Movement
-Post Civil War America favored big business.
-rugged
individualism, independence based on initiative
-Most American's did not favor Labor Movements (Socialist)
Many
Immigrants eg. Italian and Irish would not join Unions( feared being labeled as anti-American)
The sacred employer/employee
relationship must never be tampered with or questioned. Court cases always favored big business.
Consequences:
a) the factory system went unchecked; no government regulation, very little state regulation.
b) the
constant threat of replacement, a useful tool of owners who threatened to replace workers with cheap help.
c) low
wages forced the worker into longer hours. (less pay for more time at work - 72 hour work week meant making just enough money
to get by). No labor organization
*Not until the 1920's were low wages associated with long working hours)
d)
Poor working conditions- fires deaths, dismembered bodies, child labor, women at 1/4th pay. eg Triangle Shirt Waist Co.
e) Progress(automation) hurt labor
f) Abuses of Company Towns (Pullman)
"I sold my soul to the
Company Store"
Famous Strike - Pullman Car Company(1894)
American Railway Union -Eugene
V Debs
-paralyzed railroads from Chicago to the Pacific Coast.
- An Federal injunction told them not to
strike.
They did anyway.
- President Cleveland ordered Federal Troops to the scene. Debs was arrested - strike
ended
Question:
Write an essay on the rise of the American labor movement. Mention-the conditions of workers
in large industrial occupations, the role of government, strikes, Knights of Labor and the A F of L and eventually the CIO.
***
Chapter 17
America in the City
The New Immigrants (1860-1920)
From Southern and Eastern Europe
Reasons:
1. Economic Stagnation - population
- bad economics
-lack
of jobs
2. Chaos of European Politics
- no stability
3. Opportunity- American Freedom
4. Recruitment
- Steamship companies replaced cargo with people. Charged low rates making it possible for travel
5. American Letter-
some legitimate and some were not.
Their Characteristics
1) from south and central Europe
2) mainly
Roman Catholic
3) very poor
4) illiterate and unskilled
5) Tended to ghettoize -retaining their own language
and customs of the Old World, rather than assimilating into American Culture
Italians
- Moved into
large cities;
- retained their old customs;
- slums; Roman Catholic
- entered construction at the lowest possible
level, replacing the Irish;
- worked the docks and the harbors
Chinese
worked on railroads; menial labor
and domestic work
Russian and Eastern European Jews
garment industry, labor unions and workers rights
Reaction
Native white Americans feared "Race Suicide"
-spotlight on cities
a) immigrants moved into slums and were blamed for them. They were not offered every opportunity
b) thought
of as inferior because they looked different and did not emphasize education and upward mobility
c) labor unions
- considered a threat to capitalism
All this prompted unfavorable legislation.
1) Chinese Exclusion
Act(1882) law prohibited Chinese immigration for a period of 10 years. Why?
Ans. They were more productive
2)
European Restriction Act (1882)
placed a .50 tax on any immigrant coming into the country
3) Literacy Test
Act (1917) had to pass a test for admittance
4) Immigration Act 1924 - Quotas
Discrimination - Prejudice
**Big City corrupt political bosses greeted
and courted the newcomers**
Reason: Their Vote!!
Nativism - attacked immigrants through actions and words
-they briefly became a political force trying to
keep immigrants down eg. Know-Nothing Party.
-they accused immigrants of being Clannish and felt that they would
vote as a block.
-they worked against Catholicism
and the influence of the Pope.
-they tried
to halt foreign born from voting, attempting to increase standards for naturalization.
Achievements of
the Immigrants
1820 - 1920,
35 million people immigrated to the United States
and were never a threat to
overwhelm the native population.
1860- 1/8 foreign born
1910- 1/7 " " " "
1920- 1/5
" " " "
Assimilation - Nativists cried takeover, but the immigrants blended into American
society. By the second generation, ties to the old country were usually destroyed
Reasons:
1) public education-
children assimilate very quickly
2) economic opportunities-
learned the language in order to succeed
3) politics-
become a citizen and improve your status by voting
Economic Contributions
a)
they did not drain resources (never a burden) but were a
positive in our economic growth
b) provided skilled
and unskilled workers
c) enabled Americans to climb the ladder of success
**
Reformers and The
Social Gospel
Jane Addams - Hull House (Chicago)
Morrill Act (1862 Federal Land
Hatch Act
(1887) Grants - Education
Booker T. Washington
W.E.B. DuBois
Literature
Samuel
Langhorne Clemens - Mark Twain
**
Politics of the Gilded Age
"Stalwarts"
-old fashioned Republican Bosses
They loved the scandal ridden Grant years when they had their way with government
Leader - Sen. Roscoe Conkling - NY
Election of 1876 -Rutherford B. Hayes
Honest man
Hayes
won the battle of the
US Customs House(tariff revenues)
- tried to revived
Civil Service Commission
(reform)
Lost the war of corruption
Election of 1880
Rep Convention
Grant(Stalwart) v Garfield(half-breed)
Half-Breeds - Leader James G. Blaine
"Plumed Knight"
They were only "half" loyal
to the old Republican Way
Garfield and Chester Arthur(Stalwart)
V
(Dems) General Winfield Scott Hancock
(no political experience)
Garfield wins; Conkling to Customs
shot July 2 by Charles Guiteau;
(
I am a Stalwart)
Garfield died September 19
**Chester A. Arthur is President**
Dapper
Stalwart President
Arthur and other Republicans began a crusade of reform -
Civil Service bill - Pendleton
Act
(reform bill sponsored by Democrat George Pendleton)
Arthur's support is praised by the public but loses
nomination in 1884 to Blaine
Election of 1884
Blaine - many skeletons in closet
reform republicans
bolted to the Democrats (Mugwamps) holier than thou Democratic Candidate
-Grover Cleveland, Honest man.....Perhaps too
honest
No holds barred election!!!!
Republicans shouted,
"Ma, ma, where's my Pa? "
Republican Clergyman
"Rum, Romanism, Rebellion"
Insult to the Irish hurt Blaine deeply in
NY.
He did not refute the remark
Cleveland carries NY and wins race
-did appoint Democrats to key posts
(patronage)
Immediate Problems - "Pension abuse"
Cleveland vetoed private pension bills in
spite of the
Grand Army of the Republic (GAR)
The Tariff
US Treasury's annual surplus 145 mil
(Government's
chief source of income)
Embarrassing situation because of Laissez-faire
Cleveland wanted to lower
the tariff and it became the issue dividing the Political Parties in 1888
The Election of 1888
Cleveland
v Rep Benjamin Harrison
-Cleveland married his 21 yr old ward
Election issue - Tariff
American business prospered
Gilded Age Politics favored tariff which favored big business(trusts)
Republicans found a letter written
by the British minister to an American
"A vote for Cleveland is a vote for Britain"
(shabby journalists
published the letter)
Harrison wins a close election 233 to 168 electoral votes.
Cleveland, however won
the popular vote as the curiously non re-elected incumbent since "little Van"
Benjamin
Harrison - President
In Congress (Billion-Dollar)
Speaker of the House - Thomas B. Reed
(Czar Reed)
Used power and influence to control the House of Representatives.
Squelched filibusters of non-partisan Democrats.
Used the gavel to keep order;
at first severally criticized by the Democratic party, but later complimented in
keeping order on the floor by not wasting time.
Harrison - former Civil War General
Pension Act of 1890.
-used up the government surplus
-saved the tariff
A Curious Reed bill
- Sherman Anti-Trust Act
McKinley Tariff Bill of 1890 - boosted tariff rates to the highest peacetime level ever.
Also a higher
price on foreign agricultural products
(not effective)
Farmers again are paying high prices!
The Grange
Movement of farmers was an attempt to speak as one voice and cooperate on purchases. They blamed the tariff and its supporters
for their problems
Grange Law (state law) upheld
Munn v Illinois (1876) law that supervised storage for grain
as being OK in protecting public welfare
**
Debtors, Creditors, inflation, deflation, silver and gold
Tariff
meant high revenues in the East who favored currency backed by gold.
Western and Southern farmers favored the Coining
of Silver (Hard Money) would inflate "greenbacks"
Bland Allison Act was a limited government silver
purchase program
Sherman Silver Purchase Act of 1890 was passed to increase governments purchase of silver.
Politically correct as the McKinley Tariff goes through Congress
Election of 1892
Republicans
stood strong and reckless on the tariff.
Nominated incumbent Benjamin Harrison
Emergance of Populist Party
(Third Party of frustrated farmers of South & West)
-demanding free and unlimited coinage of silver, a graduated
income tax, government ownership of telephone, telegraph and railroads
nominated - James B. Weaver
Democratic
Party - Grover Cleveland
Cleveland wins again
Problems in 1893-
Labor disorders;
farm problems;
overbuilding;
over-speculation
The US Treasury was down to
41 million dollars in gold reserves
Problems
= a depression on 1893
Gen. Coxey's Commonweal Army's March on Washington
- comic relief
Cleveland
at first sold bonds to replenish gold supply
Cleveland turned to J.P. Morgan
Wall Street lent US Government 65
million in gold
(at about 10%)
They would obtain gold from abroad
**
Election of 1896
Republicans
nominated
William McKinley - Mark Hanna's Boy
-once pro-silver in Congress
now a strong advocate of gold
standard
Hanna - businessman (President-maker)
Democrats - Cleveland lost control of his party,
becoming conservative
William Jennings Bryan
"The Boy Orator of the Platte"
Silver-Tongued
Cross of Gold Speech
based on platform of the ratio of gold to silver 16 to 1 (.50/1.00)
Hanna waged a "Gold
Bug" campaign against Bryan
Campaign turned into a Class Conflict
Plowholders v Bondholders
Main Street
v Wall Street
Hanna printed pamphlets on the dangers
of high silver standard
McKinley wins the election
as the laissez faire candidate
-farm prices gradually rose
-Dingley Tariff Bill keeps the tariff high
The Gold Standard Act of 1900
- greenbacks could be redeemed in gold
Gold deposits in Canada, Alaska,
South Africa and Australia were discovered. Also extraction process
They eased the pressure of
Money/gold problem
by gradual inflation
****
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