UNIT 1 NOTES
Chapter 13 – Expansion of American Industry
Chapter 15 –
UNIT 1
INDUSTRIALISM
THE GROWTH OF AMERICAN
CITIES AND INDUSTRY
Chapter 13
The Expansion of American Industry
(1850–1900)
Chapter 13: The Expansion of American
Industry (1850–1900)
Section 1: A Technological Revolution
Section 2: The Growth of Big Business
Section 3: Industrialization and Workers
Section 4: The Great Strikes
Presidents of the United States
# 1 - 16

George Washington; Federalist (1788)

John Adams; Federalist (1796)

Thomas Jefferson (1800)

James Madison (1808)

James Monroe (1816)

John Quincy Adams (1824)

Andrew Jackson; Democrat (1828)

Martin Van Buren; Democrat (1836)

William Henry Harrison; Whig (1840)

John Tyler; Whig (1841)

James K. Polk; Democrat (1844)

Zachary Taylor; Whig (1848)

Millard Fillmore; Whig (1850)

Franklin Pierce; Democrat (1852)

James Buchanan; Democrat (1856)

Abraham Lincoln; Republican (1860)
#21 - …
Andrew Johnson; Democrat (1865)
Ulysses S. Grant; Republican (1868)
Rutherford B. Hayes; Republican (1876)
James Garfield; Republican (1880)
Chester A. Arthur; Republican (1881)
Grover Cleveland; Democrat (1884)
Benjamin Harrison; Republican (1888)
Grover Cleveland; Democrat (1892)


CORE OBJECTIVE: Explain the changes in late 1800’s urban life relating to
Immigration, Industrialization, and Politics in the Gilded Age.

Objective 1.1: How did advances in electric power and communication
affect people and business in this era?

Objective 1.2: Why were industrialists of the era called both “Captains of
Industry” and “Robber Barons”?

Objective 1.3: How did industrialization impact the growing work force
between 1880 and 1900?

Objective 1.4: In what ways did government reform the spoils system and
regulate railroads?
THEME: American Industry will grow with positive and negative
consequences
CHAPTER 13 SECTION 1 –
A TECHNOLOGICAL REVOLUTION
TECHNOLOGY CHANGE AND THE INVENTORS WHO ACCOMPLISHED IT
How Do Inventions Change Business?

No indoor electric lights

No refrigeration

Between 1860 and 1890 the
government issued almost 500,000
patents – licenses that gave an inventor
the exclusive right to use an invention.


In 1860, most mail from the East
Coast took ten days to reach
the Midwest and three weeks
to get to the West Coast.

Patents were issued for inventions such
as the typewriter and the telephone.
Inventions & technology increase
productivity – amount of goods and
services created in a given period of
time.
INVENTORS!
Edwin L. Drake
Struck oil in Pennsylvania in 1859. New uses for oil grew
rapidly and oil became a big business.
Thomas A. Edison
An inventor who experimented with electric light. Developed
a workable light bulb using direct current.
George
Westinghouse
Experimented with a form of electricity called alternating current,
which was less expensive and more practical than direct current,
which Edison had used. By using a transformer, he uses power
stations to bring electricity to homes.
COMMUNICATION INVENTIONS

Develops Morse Code in 1844

Patents the telephone in 1876

Sends messages over wires
using electric pulses

First telephone network installed in 1878

Creates AT&T in 1885

By 1870, Western Union has
transmitted over 9 million
messages
STEEL & RAILROADS
In 1856, Henry Bessemer received the first patent for the Bessemer
process, which made steel production easier and less expensive.
 The Bessemer process made possible the mass production, or
production in great amounts, of steel.


On May 10, 1869, the transcontinental railroad, extending from coast
to coast, was finished.
 Finished

at Promontory Point, Utah & encouraged westward movement
Railroads played a key role in revolutionizing business in the United
States in several key ways.
Provided a faster means of transporting goods.
 Lowered the costs of production & created national markets
 Provided a model (management structure) for big business.

THE GROWTH OF BIG BUSINESS
CHAPTER 13 SECTION 2
How did Businesses Grow?
What
is capital?
Horizontal Consolidation
Vertical Consolidation
Coke fields
purchased
by
Carnegie
Iron ore
deposits
purchased
by
Carnegie
Steel mills
purchased
by
Carnegie
Ships
purchased
by
Carnegie
Railroads
purchased
by
Carnegie
BUSINESS TYCOONS
“Robber Barons”

Business leaders built their
fortunes by stealing from
the public.

They drained the country of its
natural resources.

They persuaded public officials
to interpret laws in their favor.

They ruthlessly drove their
competitors to ruin.

They paid their workers meager
wages and forced them to toil
under dangerous and
unhealthful conditions.
“Captains of Industry”

The business leaders served their
nation in a positive way.

They created jobs that enabled
many Americans to buy new
goods and raise their standard of
living.

They also created museums,
libraries, and universities, many of
which still serve the public today.
BUSINESS PHILOSOPHY

Andrew Carnegie

Steel tycoon

He preached the “gospel of wealth”

Make as much money as possible, then give it away

Gave away 80% of his fortune

According to Charles Darwin all animal life had evolved by “natural selection,” a process in which only the fittest survived to reproduce.

Social Darwinism applied Darwin’s theory to society as a whole.


Social Darwinism (John D. Rockefeller)

Charles Darwin published his theory of evolution in 1859

Society evolves through “natural selection”


It held that society and government should not interfere with relations between workers and employers and should stay out of affairs of business.
A business philosophy called “Social Darwinism” began

Government should stay out of affairs of business and the fittest would succeed

Society as a whole would benefit from the success of the fit and the weeding out of the unfit.
Most Americans believed that government should not interfere with private businesses.

As a result, the government neither taxed profits nor regulated their relations with workers.
NEW BUSINESS STRUCTURES


John D. Rockefeller created Standard Oil Trust in 1882

This was in response to government ban on monopolies

A trust is when a group of separate companies are placed under the control of a
managing company

The “trust" was a corporation of corporations

Companies turned their financial assets over to the trust

Nine trustees, including Rockefeller, ran the 41 companies in the trust
Congress passes the Sherman Anti-Trust Act in 1890

Outlawed any combination of companies that hurt interstate commerce (business)
AN INDUSTRIAL OVERVIEW

The Industrial Economy– CRASH COURSE

http://www.youtube.com/watch?v=r6tRpzRUJs&list=PL8dPuuaLjXtMwmepBjTSG593eG7ObzO7s&index=24