bYTEBoss JB APUSH Unit VA

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GILDED AGE

INDUSTRIALISM

Unit VA

AP United States History

American Industrial Expansion

► With the completion of Manifest Destiny throughout continental U.S., the nation encompassed near-perfect elements for massive industrialization and economic expansion

Economic Resources

Land

► Abundance and discovery of vast deposits of coal, iron ore, copper, timber, oil, gold, silver, agricultural

Labor

► Cheap wages, immigration, population growth

Capital

► Industrial capitalism and finance capitalism

► Federal subsidies and land sales

► Second Industrial Revolution and technological innovation

Entrepreneurial Ability

► Captains of Industry/Robber Barons

Captains of Industry OR Robber Barons

Using four business entrepreneurs as case studies for American innovation, industrial growth, and expansion of capitalism.

► Cornelius Vanderbilt

► Andrew Carnegie

► John D. Rockefeller

► J.P. Morgan

Captains of Industry OR Robber Barons:

Cornelius Vanderbilt and Railroads

Acquired his wealth in steamships and expanded into railroads in

1860s

► Revamped northeast railroads through consolidation and standardization

New York Central Railroad

Regional railway system from New

York to Chicago

Replaced and built lines with standard gauges

► Implementation of steel

Stronger to carry heavier loads

Safer due to no corrosion

► Vanderbilt University

Railroads Drive the Economy

► Growth and Influence

35,000 miles (1865) to 200,000 miles (1900)

First Transcontinental Railroad

(1869)

Leland Stanford’s Union Pacific and Central Pacific meet at

Promontory Summit, UT

Market connections, boomtowns, and jobs

Innovation and Improvement

Standardized gauges

Westinghouse air brakes

Steel

Time zones

► Federal Government

Involvement

Pacific Railway Acts

Land grants and government bonds to railroad companies

► Requirement of standardized gauges

By 1871, federal and state governments sold 300,000,000 acres of land to railroads

The Business of Railroads

► Rate Wars

Competition among railroad companies was fierce and intense

Stronger companies lowered rates to drive out weaker companies

► Led to monopolies

► Increased rates dramatically

► Long haul and short haul rates

► Stock watering/watered stock

Inflated stocks led to higher consumer rates

► Pools

Competing lines fixed prices and divided business for max profits

► Grange Lines

Midwest farmers dependent on rail lines for shipping

High freight rates impoverished farmers

Commercial Farming

► Agriculture became commercialized on cash crops for national and international markets

Influx of Eastern capital and investment

From subsistence to market/stores

Pushed out local/small farmers

► Competition, deflated currency, and overproduction lowered prices while input costs increased

“Middle Men”

Farmers lost massive share of profits to managers of their sales

Grain elevator and railroad companies charged expensive rents and transportation costs

The Farmers Organize

Fueled by the Granger Movement

Granger laws

Munn v. Illinois (1877)

States could regulate private companies if they served the public interest, I.e. grain elevators, railroads

Wabash, St. Louis & Pacific

Railway Co. v. Illinois (1886)

States could not regulate interstate commerce

Interstate Commerce Act (1886)

Interstate Commerce Commission

National Alliance and the Ocala

Platform (1890)

Unity against corporations and monopolies

Favored direct election of Senators, lower tariffs, graduated income tax, federal banking system

Evolves into People’s Party

(Populists) and Omaha Platform

(1892)

Captains of Industry OR Robber Barons:

Andrew Carnegie and Steel

► Managed Pennsylvania

Railroad and invested in various industries

Steel

Bessemer Process

► Vertical Integration

► Urbanization and Cities

► Labor Unions and

Strikes

Bessemer Process

Oxidation of iron ore to remove impurities

Steel is lighter, stronger, rust-resistant

► Carnegie and Steel

Adopted and adapted

Bessemer Process to steel plants

Increased supply of quality steel dropped steel prices

Abundance of steel significantly impacted

American industrial growth and expansion

Steel Production

Vertical Integration

► Carnegie acquired all aspects of steel production

Limited competition, maximized profits, lowered prices

Steel and Cities

► Buildings

Skyscrapers

► Steel beams

► Infrastructure

Railroads

Bridges

► Brooklyn Bridge

Urban Innovation

Mass Transit

► Elevated rails

► Subways

Elevators

Central steam-heating systems

Home Insurance Building

Chicago

1885

Flatiron Building/Fuller Building

New York

1902

Gilded Age Urbanization

► Urbanization

Population increasingly moving to cities

► Mechanization of agriculture

► Economic opportunities with increased industrialization

Increased infrastructure

► Streetcars, bridges, subways

Skyscrapers, elevators, radiators

City Layouts

► Business centers

Older sections

Immigration and minorities

Suburbs

Middle and upper class moved outside of cities to escape urbanization

Urban reform developments

Urban Problems

► Overcrowding

Tenement Living

Pollution

► Crime

Sanitation/Water

Treatment

► Disease

Urban and Social Reforms

Municipal services

Social Gospel

Apply Christian values toward social problems and issues

Josiah Strong, Walter

Rauschenbusch, Richard T. Ely

Settlement Houses

Jane Addams and Hull House

YMCA

Salvation Army

► Social Criticism

Jacob Riis - How the Other

Half Lives (1889)

Henry George -

Progress and

Poverty

(1879)

Working Conditions

► Typical 12 hour days,

6 days a week

► No benefits, such as vacation days, sick leave, health insurance

► Child Labor

As young as 5 years old

12-14 hours for $.27

Unions vs. Management

Industrialization, mass production, use of semiskilled workers = devalued labor

Poor and dangerous working conditions, immigrants, and meager salaries = upset workforce

Organized labor to appeal for better conditions, higher salaries, benefits

Union Methods: political action and efficacy, strikes, picketing, boycotts, slowdowns

Industrialization, mass production, use of semiskilled workers = increased profits

Poor and dangerous working conditions, immigrants, and meager salaries = increasing profits and satisfied management

Developed image of unions and organized labor as un-

American, socialist, anarchist

Management Methods: lockouts, blacklists, yellow-dog contracts, government/private force, court injunctions

Timeline of Gilded Age Unions and Strikes

Local associations and guilds before the Gilded Age led to industry-specific unions in local/state

National Labor Union (1866)

– first attempt of a national union of all workers

Higher wages, 8-hour day (won for federal employees)

Women and black equality, monetary reform, cooperatives

Great Railroad Strike of 1877

Wages cut to make up costs due to Panic of 1873

Federal troops used; unions lost support and popularity

Knights of Labor (1881)

Members included women and blacks

Cooperatives, end child labor, anti-trusts

Preferred method of arbitration over strikes

American Federation of Labor (AFL) (1886)

Pursued more practical goals rather than reforms

– “bread-and-butter unionism”

Samuel Gompers

and walkouts for collective bargaining

Haymarket Bombing (May 4, 1888)

May Day celebration coupled with strike in Chicago led to police killing 4 people

Commemoration on May 4 led to bombing killing police officers and to a police riot

8 innocent anarchists tried and convicted in show trial and hanged

Homestead Strike (1892)

Carnegie and Frick used tactful negotiations to break unions

Lockouts and Pinkertons led to union breaking

Pullman Strike (1894)

Pullman wage cuts led to Eugene Debs to order boycotts of Pullman cars

Federal injunctions against workers led to arrest of Debs

In re Debs

approved federal injunctions and weakened labor movements

By 1900 only 3% of workers belongs in unions

Captains of Industry OR Robber Barons:

John D. Rockefeller and Oil

► Horizontal Integration

Standard Oil

Trusts and monopolies

► Sherman Anti-trust Act

(1890)

► Gilded Age Society

► Social Darwinism

► Gospel of Wealth

Standard Oil

Rockefeller established

Standard Oil in 1870

► Uses for Oil

Kerosene lamps

Fuel for railroads

► Used vertical integration to control oil industry then horizontal integration to control oil market

Eventually controlled 95% of oil refining

Horizontal Integration

Robber Barons and Trusts

Tactics of Standard Oil

Lowered prices to drive out competitors

Threatened companies to sell to

Standard Oil (buyouts)

Bribed railroads to buy Standard Oil fuel (rebates, kickbacks)

Bribed Congress members

Standard Oil Trust

 Stockholders’ shares traded for trust certificates

Board of Trustees controlled and administered companies as a whole

Shareholders earned dividends based on overall profits

Monopolies

Controls prices

Limits competition

Pressure on other services to provide discounts and rebates

Bosses of the Senate

Antitrust Movement

Sherman Antitrust Act (1890)

 Prohibits any “contract, combination, in the form of trust or otherwise, or conspiracy in restraint of trade or commerce”

United States v. E.C. Knight Co. (1895)

Sugar refining monopoly tested Sherman Antitrust Act

Regulation applied to commerce and not manufacturing

Gilded Age Socioeconomics

► By 1890s, 10% of Americans controlled 90% of the nation’s wealth

Socioeconomic gap extensively widened

2/3 of population were wage earners

► Corporations required administrative/managerial labor -> expansion of middle class/white-collar workers

► Iron law of wages

Supply and demand determined wages, not the consideration of workers’ welfare

Gilded Age Women

20% of American women worked as wage earners

Most single women; 5% married

Low-income families required women in workplace

► Female-based Jobs

Typical home-associated industries: textiles, foods

New types of jobs: secretaries, bookkeepers, typists, communication operators

Women and feminized jobs considered low status and low salaries

Gibson Girl

Iconic image of women as independent, stylish, and working

Led to women to seek new types of jobs

Immigration

Population

16.2 million immigrants between 1850-1900

8.8 million during 1901-

1910

Pushes

Mechanization removing jobs, esp. in rural areas

Overpopulation

Persecution

Pulls

Political and economic freedoms and opportunities

Old Immigrants

Northern and Western

Europe

New Immigrants

Southern and Eastern

Europe; Asia

Catholics, Jews

Immigrant Issues

► Sociopolitical Enemies

Josiah Strong -

Our Country

Nativists

► Legislation

Chinese Exclusion Act

(1882)

► Political Machines

► Ethnic Neighborhoods

Little Italy

Chinatown

Ellis Island

“…Give me your tired, your poor,

Your huddled masses yearning to breathe free,

The wretched refuse of your teeming shore…”

Emma Lazarus -

The New Colossus

, 1883

Laissez-Faire and Social Darwinism

► Laissez-Faire Economics

 Economy driven by the “invisible hand” of market forces (supply and demand)

Government should refrain from regulation or interference

Social Darwinism

Herbert Spencer

“Survival of the fittest”

► Wealth a result of hard work and brilliance

► Poor and unfortunate were lazy

William Graham Sumner

► Absolute freedom to struggle, succeed, or fail

► State intervention is futile

Gospel of Wealth

Andrew Carnegie

Guardians of the nation’s wealth

“All revenue generated beyond your own needs should be used for the good of the community.”

Horatio Alger Myth

“Rags to riches” stories

Young American men, through hard work and virtue, will succeed

Also used a supporting wealthy philanthropic character

► Seemingly propaganda of the American Dream under free enterprise and capitalism

Captains of Industry OR Robber Barons:

J.P. Morgan and Electricity

► Banking and Financing

Science and

Innovation

Corporations

► Consumerism

American Culture

Morganization

► J.P. Morgan and Co.

Financial capital and investment

Directly and indirectly pursued inventions and innovations

► Mergers and

Consolidations

Railroad industry

► Interlocking directorates

Corporate board of directors sitting on boards of multiple corporations

Electricity

► Thomas Edison

The Wizard of Menlo Park

Incandescent light bulb

► Safer than kerosene lamps

New York City

Direct current (DC)

► Edison developed system of power stations

Nicola Tesla

Alternate current (AC)

► Transfer of electricity faster and farther

Sewing Machine (1855)

Isaac Singer

Transatlantic cable (1866)

Cyrus Field

Dynamite (1866)

Alfred Nobel

Typewriter (1867)

Christopher Scholes

Air brakes (1868)

George Westinghouse

Mail-order catalog (1872)

A.M. Ward

Blue jeans (1873)

Levi Strauss

Barbed wire (1873)

Joseph Glidden

Telephone (1876)

Alexander Graham Bell*

Phonograph (1877)

Thomas Edison

Light bulb (1879)

Thomas Edison*

Cash register (1879)

James Ritty

Gilded Age Innovation

Universal stock ticker (1885)

Thomas Edison

Transformer (1885)

Nikola Tesla

Gasoline automobile (1885)

Karl F. Benz

Skyscraper (1885)

William Le Baron Jenney

Film roll and Kodak camera (1889)

George Eastman*

Motion picture camera (1891)

Thomas Edison*

Radio (1895)

Guglielmo Marconi

Subway (U.S.) (1895)

X-ray (1895)

Wilhelm C. Rontgen

Powered flight (1903)

George and Wilbur Wright

Alkaline battery (1906)

Thomas Edison

Model T (1908)

Henry Ford

Monumental Innovation

Charles Alderton

Experimented with various syrups and flavorings

► Robert Lazenby

Developed Dr. Pepper by 1885

Patented and incorporated by

1891

St. Louis World’s Fair and

Exposition (1904)

Introduces Dr. Pepper to the world

Along with hot dogs, hamburgers, and ice cream cones

Number of Patents Issued

Corporations

American Telephone and

Telegraph Co. (1885)

J.P. Morgan Co. financed merger of

Bell and communication companies

► General Electric (1892)

J.P. Morgan merged Edison General

Electric and Thomas-Houston

Electric Company

► U.S. Steel (1901)

J.P. Morgan bought Carnegie Steel and merged with other steel companies

Becomes first billion dollar company in world

Corporate Mergers - 1895-1910

Consumerism

► Wide variety of mass produced goods led to new marketing and sales

Brand names and logs

► Department stores

 R.H. Macy’s

► Chain stores

 Woolworth’s

► Grocery stores

Mail order catalogs

Montgomery Ward

Sears, Roebuck, Co.

Gilded Age Religion

► American Christians focused values toward consequences of industrialization and urbanization

Social Gospel

► Increases

Catholics, Jews

► New Christian Sects

Christian Science

► Spiritual life over material

Pentecostals

► Baptism in spirit; speaking in tongues

Salvation Army

Jehovah’s Witnesses

► Millenialist

Temperance

Alcohol and vices blamed for urban problems

► Regulating Morality

Comstock Law (1873)

► Temperance Organizations

National Prohibition Party

(1869)

Women’s Christian

Temperance Union (WCTU)

(1874)

Frances E. Willard

Antisaloon League (1893)

Carrie Nation

“Hatchetations”

Gilded Age Academics

Educational Reforms

Compulsory Education

► Most states required 8-14 year olds to attend schools

Kindergartens

Public Education

► Dramatic increase in high schools

► Comprehensive education

► Led to 90% literacy rate

Colleges and Universities

► Increased through federal legislation and philanthropy

Science

Darwin and Natural Selection

Technological Innovation

Social Sciences

Scientific method applied to behavioral sciences

Development of psychology, sociology, political science

Gilded Age Entertainment and Leisure

► Causes

Urbanization, less working hours, advertisements

► Vaudevilles

Popularized with family-friendly subjects and material

► Saloons

► Amusement Parks

Coney Island

► Circus

P.T. Barnum

► Sports

Spectator

► Baseball, boxing, football

Amateur

► Golf, tennis

Realism and Naturalism

Realism

Objective reality

Depict accurate and true characters and settings

Absent of emotional embellishment

► Naturalism

Depiction of objects in natural settings

Time and place accuracy

Brooklyn Bridge at Night

Edward Willis Redfield

1909

Gilded Age Art

Ashcan School

Depiction of New York

City urban life

George Bellows

James M. Whistler

► Winslow Homer

Mary Cassatt

Both Members of This Club

George Bellows

1909

Winslow Homer’s

Breezing Up

George Bellow’s

New York

James Whistler’s

Arrangement in Grey and

Black No. 1 (Whistler’s Mother)

(1871)

Mary Cassat’s

The Child’s Bath

(1893)

Gilded Age Architecture

► Victorian Influence

Henry Hobson

Richardson

► Louis Sullivan

“Father of

Skyscrapers”

 “form follows function”

► Frank Lloyd Wright

 “organic architecture”

► Foursquare Homes

Richardon’s

Trinity Church

Frank Lloyd Wright’s

Fallingwater

Foursquare Home

Gilded Age Press and Literature

Press

 Joseph Pulitzer’s

New York World

William Randolph Hearst

&

► Sensationalism and scandals

Magazines

► Literature

Authors focused on character development and realism over plot

Lewis Wallace

Ben-Hur: A Tale of Christ

Mark Twain

The Adventures of Huckleberry Finn

The Gilded Age: A Tale of Today

Stephen Crane

The Red Bad of Courage

Jack London

The Call of the Wild

;

White Fang

Gilded Age Music

John Philip Sousa

The Washington Post

Stars and Stripes Forever

Semper Fidelis

► Ragtime

Originated from black communities combining

African syncopation and classical music

Scott Joplin

Maple Leaf Rag

The Entertainer

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