1900s

Regions of The USA

• the Northeast

• The South

• Midwest

• southwest

• the west

• Alaska and Hawaii

Second Industrial Revolution

• Civil War stimulated industrial development in the North (2.7 million soldiers sent to fight needed supplies)

• 1870-1914

• technological revolution that changed the way goods were sold, distributed and produced

• rich in natural resources and an increased migrant population meant American could produce goods more cheaply and transport to new markets

• Population in western states: by end of 19th century179000 to 4.3 million

• Homestead Act - free land if you could farm

Second Industrial Revolution - Railways

• gov. awarded land grants to priv. investors to build railways + no. of railways tripled 1880-1920

• settlements developed around the stations

• 1890s - 5 transcontinental railways connected west and east coasts and ports

• telegraph lines followed

Second Industrial Revolution - integrating the economy

• transformed nature of capitalism + way markets linked

• Until Civil War, business was local and competition was local

• After, competition increased to across America to Italy (for best price)

• Food production became industrialised

• wealth shifted from producers to industrialists.

The Gilded Age

• greed and political corruption - US became the largest economy in the world, leading in products of steel, iron and copper, coal, bitumen, oil.

• disparity between rich and poor - generated opportunities for individuals to build great fortunes, but left many farmers struggling for survival

• working class - economic insecurity, millions lost jobs (1870s-1890s), most lived in slums, average 60 hour weeks, 1880-1900 - 35000 workers killed in factory and mining accidents

• social darwinism began

• republican party in charge - refused to regulate/restrict business activity

• 14th Amendment - gave former slaves political and civil rights

• Industrial giants (Carnegie + Rockefeller) revolutionised business and ushered in the modern corporate economy, but also, sometimes destroyed free-market economic competition in the

  process.

• overall national wealth increased fivefold

Labour Laws

• 1905 - Lochner v. NY: Supreme Court declared NYC labour laws unconstitutional and took away freedom for servant and master to freely negotiate

• 30 years, continuous labour laws were enforced until GD

• america lagged behind in recognising rights of workers

• courts believed bargaining threatened interests of property owners and natural law

• army was used to suppress industrial protests

Capitalism

An economic and political system in which a country’s trade and industry are controlled by private individuals

• the market determines distribution + price of goods + services

• workers sell labour to employers for wages and producers trade goods for the best profit.

• encourages entrepreneurship BUT also exploitation of workers

AKA free enterprise and free market econmoy

Laissez-faire capitalism

• believe there should be NO gov. intervention in economic business affairs of individuals

• in a purely capitalist society there would be no state-funded social services

• ideal rather than a description on an actuality

Social Market Capitalism

• gov. minimal intervention in economy

• imposes regularity standards on health, safety + provides social services

• Australia, western europe, japan, most western countries

Andrew Carnegie

Andrew Carnegie (1835-1919)

• recognised the potential of the iron industry and took over a business replacing wooden bridges with steel. He built a plant at Pittsburgh - made his workers work long hours and cut wages (how he made profit)

• union strike @ Homestead plant - 11 deaths

• 1900 - Carnegie Steel produced more steel than the whole of GB. sold business to JP Morgan for $480 million

• his book - The Gospel of Wealth - believed capitalists should manage wealth and poor should not receive charity as it encouraged idleness.

• gave away $350 million, opened 2500 libraries

JP Morgan

• born into wealthy family

• avoided serving in union army and instead made money on war contracts selling rifles.

• he was involved in consolidating and reorganising railroads, he bought stock and controlled 1/6 of America’s rail lines

• formed General Electric

• used influence to stabilise economy in 1907 business crisis, but also criticised for having too much power over financial markets

• bought Carnegie Steel in 1901 and made it worth 1 billion in 10 years

• set up Harvester INt. Company - world’s largest producer of industrial machines

• donated many artworks

Captains of Industry/Robber Barons

• Rockefeller

• Carnegie

• Morgan

• Ford

• Hearst

The Progressive Era

• a response to negative effects of industrialisation - African Americans, Native Americans and Chinese people were increasingly excluded from the growing opportunities for wealth and freedom

• progressive reformers sought to regulate private industry, strengthen protections for workers and consumers, expose corruption in gov. and Big businesses, improve society.

• ~ 1890-1920

• main aims:

  • achieve democratic reform

  • greater government accountability (eliminate plutocracy)

  • regulation of business

  • improved social justice

Ida Tarbell

• a muckraker who exposed the corrupt business practices of standard oil and became early pioneer on investigative journalism

The dark side of progressivism

• promoted discriminatory policies - segregation and revival of KKK

• labour unions supported restrictions on immigrants, blamed them

• many progressive reformers advocated for selective breeding

  • passed sterilisation law → 60 000 people sterilised

Immigration

• came from Italy, Russia, Austro-Hungarian Empire

• 1880-1910, 17 million migrants

• 15% population foreign born by 1910

• came to seek freedom and unfound prosperity in Europe

• long hours, little pay, dangerous conditions

• Nativisim - reaction against immigrants was dominant

• 1882 - Chinese Exclusion Act - prohibited Chinese labourers entering country until 1943

• 1907 - Gentlemen’s Agreement Act - Us and Japan - agreed to restrict immigration to US

Women

• conditions of women and children at work became progressive era focus

• 1880-1910, no. of women rose 2.6 million - 7.8 million → 60% in domestic service

• 1900 - women gained right to own property, control earnings + have custody after divorce - still could not vote

• saw an increase in demand for more personal freedom

African Americans

• progressive desire to protect everyday people did not extend to black population + discrimination, racism and segregation were accepted

• Black Law Codes 1865 placed freed slaves under white control

• Republican North placed south under military control - Reconstruction Act 1867 - to enfranchise African Americans , withdrew 1877

• KKK and terrorists intimidated AA’s to keep them from voting

• barred from unions and skilled employment, worked in domestic labour and ag. labourers

• lived with threat of lynching if they challenged racial norms

Jim Crow Laws

• passed in southern states, segregated south

• when challenged in supreme court, laws were not found to have breached constitution, saying if one race is socially inferior, it is not up to the const. to make them equal

• accepted ideas about race and science, accepted by Progressive Reformers

• series of qualifications for AA voting to disenfranchise voters

De Facto Segregation

• black and white communities in seperate localities, African Americans barred from some professions

Sherman Anti Trust Act 1890

• law outlawing a combination of companies that restrained interstate trade or commerce to prevent monopolies

• not initially enforced properly

• 1895 - disbanded by dispute in courts

• Roosevelt used it to dismantle JP Morgan’s Northern Securities Trust, but most of his trust busting was rhetoric

Rise of labour unions

• Knights of Labour - first union to accpet workers of all races and genders, pushed for 8 hour workday, equal pay for women, accepted all skills of workers 1869

• American Federation of Labour - accepted only skilled white men - won higher wages and shorter weeks.

• fed gov allowed state to have armories to shoot strikers

Urban Workers

• 1910 NYC population reached 4.7 million

• first time there were more urban workers than rural inhabitants

• Triangle Shirtwaist fire - 1911 NYC - 500 women and girls were employed - less than 20 mins, 147 people were dead

• 1.7 million out of 20 workers were children

• no workers compensation if they were hurt until 1910

Rural Workers

• south was less industrialised than cities, cotton prices plunged

• large amounts of migration

• Child labour reform movement (1902-1915)

Problems of rapid urbanisation

• housing shortages

• transportation

• clean water

• fires

• crime

Rise of political machines and corruption

• political groups in which an authoritative leader/small group commpact support of a corps of supporters and businesses

• loved immigrants and used power to rig elections and control police

• patronage/spoils system - gave jobs to friends instead of the qualified workers

• Pendleton Civil Service Act 1883 - attempted to end spoils system by creating civil service commission (appt. gov. official to pass exam b4 getting a job, fed. employees did not have to contribute to campaign funds, could not be fired for political reasons)

Progressive Era Successes

• reduction of 12 hour working day to 10 hours

• establishment of US Department of Commerce and Labour in 1903

• Elkins Act, Hepburn Act → regulated fees that railroads chould charge consumers

• Pure Food and Drug Act

• increase in womens suffrage and end to child labour exploitation

• promotion of arcian American right to equal employment, education, housing

• direct election of senators from 1913.

Theodore Roosevelt 1858-1919 - 26th President

1901 - 1909 26th President

• progressive president, dynamic leader, progressive agenda, which was disliked by Republican Party, confronted economic problems, pushed for increase in federal intervention in economic regulation

• He set up the Rough Riders

• spoke out against trusts and used public dislike of trusts to increase political advantage in democratic process but admin still allowed most trusts to continue

• mediator between opposing forces

• first major national politician to go after trusts

The Square Deal

• every side equal → advocated for fair America

• America’s industrial boom → rise of monopolies → exploitation of workers → public demand for reform

• supported workers rights → unfair treatment and pay

• threatened to take over mines if conditions did not change

• Control of Corporations (Trust Busting)

• Consumer Protection

  • The jungle by Upton Sinclair 1906 exposed conditions of factories

    • Meat Inspection Act 1906

    • Pure Food and Drug Act 1906

• Conservation

  • creation of National Parks and forest preservation

  • United States Forest Service - established 150 national parkers, 51 federal bird reserves, 5 national parks

Roosevelt’s trust busting

• tried to distinguish between “good” and “bad” corporations - attacked plutocracy and bad trusts while protecting businesses from most extreme demands of organised labour

• ~ 4000 businesses swallowed up by larger conglomerates seeking to attain monopolistic power in marketplace

• wildly exaggerated ‘trust buster’ reputation

• Resurrected the Sherman Anti Trust Act by bringing a lawsuit that led to breakup of Northern Securities Trust

• He used his moral judgement instead of the courts to break up trusts

• Department of Commerce - 1903 - investigate trusts

  • factory inspections, child labour, etc

  • initiated 43 lawsuits against trusts

William Taft - 27th President - 1909 - 1913

• Roosevelt handpicked Taft whom he assured would continue the Square Deal + he kept a watchful eye over him

• Signed Mann-Elkins Act 1910 which extended authority of Interstate Commerce Commission over telephones and telegraphs

• political infighting with party exposed limitations of Taft’s presidential authority

• Angered his party when he created US Chamber of Commerce 1912 - viewed as attempt to offset growing influence of labour union

• tariffs: wanted to push for decrease tariffs, but signed a conservative bill that increased duties on imports.

• thought of himself as progressive but was conservative philosphically

• faced restless public with national progressivism at peak “insurgents” in both houses demanded tariff reductions, income tax, direct election of senators + stricter railroads

Taft’s Trustbusting + legacy with Roosevelt

• introduced income tax through the 16th amendment. This tax

  would help modernise the rapidly expanding federal government and provide it with

  a stable source of revenue. Up until this time, the government had relied on tariffs as

  its chief source of revenue.

• Taft initiated x2 (75) as many anti-trust suits against big businesses as Roosevelt, but he lacked political negotiating skills and focus on the public good of his predecessor

• sold federal land to businesses - Gifford Pinchot stood up + got fired

• he did not appoint any progressives to his cabinet

1912 Election

• Roosevelt - “Bull Moose Party” - ran against Taft after he did not receive nomination of Republican leader

  • called for powerful fed. gov. to protect American public

  • demanded control of big businesses through federal commission, tax reform and measures to put the federal gov. squarely into business of social and economic reform

• Woodrow Wilson - New Freedom - won with 42% of votes

  • envisaged a concerted effort to destroy monopolies and open doors of economic opportunity.

  • 1st southern born pres since war

• Taft made a poor effort

Progressive Era Presidency

• Federal Reserve Board: a centralised system that allowed banks to run their own affairs with only limited government interference

• Rediscount rates: the interest rate at which banks could borrow money from federal reserve banks

• Underwood Tariff 1913 - reduced many duties and freed certain items from them entirely - food, wool, iron, steel

  • all of which could be produced cheaper in US, therefore did not need protection from foreign comp.

  • loss of gov. revenue was compensated by intro in 1913 fed. income tax, necessiating change to Const - 16th Amendment

Federal Reserve Act - WW

created first central banking system in US, 12 banking districts. National and state banks participating had to invest 6% of capital and surplus into reserve banks

• could lend money to member banks at rediscount rates

• system meant supply of $ not dependent on amount of gold

• when inflation threatened, banks could increase rediscount rates to discrouage borrowing and decrease money in circulation

Anti Trust Legislation 1914

Congress passed 2 laws affecting trusts and giant corps

• Federal Trade Commission - formed to invest. corps and stop unfair practices

• Clayton Anti-Trust Act - made certain business practices illegal - e.g. price discrimination to foster monopolies - forbade retailers from handling rivals products and the creation of interlocking directorates to control companies who appeared to be in competition

• WW achieved more than his predecessors because his party controlled H.O.R and senate in congress.

America and World War 1

• neutral until 1917 - Wilson declared war - “world must be safe for democracy”

  • Germany waged submarine war on British shipping to try starve out British shipping, and sunk RMS Lusitania on 7 May 1915, resulting in 1198 deaths - 128 Americans

  • Submarine war slowed, and picked up in 1917, when merchant ships were sunk

  • British spies discovered telegrams from the German government promising Mexico the return of territories lost in the Mexican War 1846-48 if country supported Germany

  • began affecting their trade

Reasons for US neutrality

• isolationism

• different nationalities/immigrants

• trade

• Woodrow Wilson → “not God’s calling”

American Expeditionary Forces

• 4.7 million men served → 116 000 deaths

• joined war under Commander in chief John J Pershing in June 1917

• september - participated in campaign that broke German lines

War at Home

• all men of military age required to register for draft - from 120 000 to 5 million

• gov. agencies took over management of railways, food production, fuel and employment

• taxes increased

• Americans urged to buy Liberty Savings Bonds to contribute

• Americanisation - program introduced in schools to encourage migrants to become fully assimilated

Propaganda and Control

• committee on Public Information formed April 1917, launched propaganda to shape public opinion and foster patriotism and support for war

• promoted freedom and democracy, anti-German feeling stirred by posters depicting them as brutal and inhumane

• German Americans felt culture and language was under attack → hamburger, banned german music and teaching the language, thousands fought in AEF

• Civil liberties were being repressed:

  • espionage Act 1917 → prohibited spying and making false statements that could interfere with success

  • Sedition Act 1918 → offence to speak critically of government

• socialists critical of war were targeted

• targeted IWW

Suffrage and Prohibition

• initially divided when was declared

• many suffragists believed war time service would ensure vote: they sold bonds, worked in war production, took on male jobs, rallied cause, 7220000 American women served in Europe as nurses, clerks and bilingual telephone operators

• WW declared support for Women’s suffrage in 1916

• Anti-German sentiment fuelled support for prohibition as most breweries were German owned + it was dvocated as a war time measure.

African Americans and WW1

• saw it as an opportunity for disappearance of white supremacy,

• drafted into war but served as inferiors - spread myth they were less intelligent, cowardly and inferior fighters

• fought under command of french as USA refused to let them fight along white AEF soldiers

• triggered start of Great Migration → mass movement of African Americans from agricultural south to industrial cities. believed they could escape lynching and jim crow laws ~330 000 moved

• War production = ⬆ labour needs → opened doors to them bc they needed workers.

Aftermath of WW1

Unlike the countries of Europe, the factories and homes of the US had not

been destroyed. Manufacturing, production and efficiency had increased

through necessity during the Great War. America emerged as a world

industrial leader and the US economy was booming, profits were increasing

leading to a massive rise in consumerism for the wealthy.

On the negative side, inflation was high, and companies and corporations

started to reduce wages and lay off workers to keep down operating costs.

The power of the unions had grown during the war, workers protested and

1919 saw a massive wave of strikes. Competition for employment led to racial

unrest and race riots breeding hatred and suspicion which spilled over into the

Red Scare and the fear of communism.

The introduction of Prohibition led to the rise of organised crime, speakeasies,

gangsters, increased violence and massive political corruption.

The Influenza Pandemic

• 1918-1920

• ~ 50 million deaths worldwide

• More american soldiers died of flu than killed in battle

• 1st American breakouts reported in Army training camps in Kansas 1918

• 25 mil became sick in USA, 675 000 died

• no cure, people wore gauze masks and public places closed down

• carried overseas in boats

Woodrow Wilson and Foreign Policy

• encouraged US to look beyond its own borders and overseas economic interests to develop foreign policy within context of ideas, morality and spread of democracy

• War message to congress 1917 → declared US objective was to vindicate principles of peace and justice in the life of the world: fighting for a moral cause

• 1917 → 14 Points presented to congress by “the inquiry”

  • referred to issues such as territory between combatant nations, and 5 means of ensuring a peaceful world.

  • wanted to achieve a peace without vengeance or loss of territories

Wilson at the Paris Peace Conference

• Versailles 1919, 30 Nations attended, big 4 (Italy, France, Britain and US) dominated proceedings

• Resulting peace treaties failed to achieve many of WW’s goals, and he was a less able negotiator than his British and french conterparts

• most negotiations were secret, despite 14 Point principles of open diplomacy

• defeated nations were not represented, and were heavily fined, regions of countries were redistributed amongst winning nations

• WIlson was successful in attaching Covenant of League of Nations to T.O.V

The US and the League of Nations

• Treaty was popular, but challenged in Senate, arguing lon would commit the US to involvement in affairs of other countries and would deprive US of freedom

• reflected US position that it would not become involved with int. events outside Western Hemisphere

• Wilson tried to convince Senate, but they were defeated.

• historians argue that US decision not to become a member of League of Nations made it a less effective organisation