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transcontinental railroad
connects east to west coast
Pacific Railway Acts (1862 + 1864)
government subsidized telegraph lines and railway system connecting east and west coasts
Central Pacific Railroad
West to East (CA → UT)
Asian immigrants (Chinese)
much more difficult/dangerous for work
Union Pacific Railraod
East to West
European Immigrants (Irish and German)
Impact: America’s first big business
Built a nationwide market for goods (mass production and consumption
growth of related industries (iron, coal, lumber, steel)
new towns + communities grew along rail lines → increased settlement on Great Plains
creation of time zones
Closed frontier
by 1890, US census officially determined it had been settled
Frontier Thesis
The frontier was symbolic of independence, rugged individualism, economic opportunity, and equality.
it defined American character and was a safeguard for democracy
Economic impact of the Civil War
victory of industrial capitalism over the plantation system
paved way for a second industrial revolution
importance of the buffalo
Crucial to Native Americans because they provided food, shelter, and materials for various needs
Declined in 1880 due to overhunting and westward expansion
California Gold Rush
Discovery of gold in 1848
Flood of newcomers to the territory
Method: paper lacing and deep-shaft mining
Pikes Peak
Discovery of gold in Colorado, 1859
Brought 100,000 miners to the area
Comstock Lode
1859
Produced more than $340 million in gold and silver by 1890
Responsible for Nevada entering the Union in 1864
Caused Nevada’s Virginia City to grow - added theaters, churches, newspapers, schools, libraries, railroads, police
Impact of mining boom
independent gold washing miners became day laborers for corporations working under extreme and dangerous conditions
Boomtowns/Ghost Towns
Towns infamous for saloons, dance-hall girls, vigilante justice
Eventually became lonely ghost towns after gold/silver ran out
The Long Drive (1866-88)
over 6 mil cattle driven North from TX
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Chinese Exclusion Act
⅓ of western miners in 1860s were Chinese immigrants
Act prohibited further immigration to the US by Chinese laborers
Restricted Chinese immigration severely until 1965
Homestead Act 1862
Offered 160 acres public land free to any family that settled on it for 5 years
Encouraged farming on the Great Plains, about 500,000 families took advantage of it
houses built of sod → “sodbusters”
Problems
dry land with few rivers and trees made building and farming difficult
farms were too small to be profitable
some developed dry farming techniques
Reservation Policy (Fort Laramie & Fort Atkinson)
Federal government assigned the Plains tribes large areas of land (reservations) with definite boundaries
Most tribes refused to restrict their movements
Sioux War (1866)
Before, there was lots of fighting between US troops and Plains Indians, where the US army was the one responsible for many massacres
Then, an army under Captain William Fetterman was wiped out by Sioux warriors
Indian Appropriation Act of 1871
Ended recognition of tribes as independent nations by the federal government
Nullified previous treaties made with the tribes
Battle of Little Big Horn
Before Sioux was defeated they ambushed Colonel George Custer’s army at Little Big Horn in 1876
Chief Joseph
Led the Sioux army, attempted to lead a band of Nez Perce into Canada, but ended with defeat and surrender
Ghost Dance
Religious movement for Indians to resist US government controls
Leaders believed it could return prosperity to Native Americans
Government suppressed the movement by killing many, which ended Indian Wars on the land.
Helen Hunt Jackson
Wrote a book in 1881 called A Century of Dishonor which highlighted the injustices done to American Indians (similar to Uncle Tom’s Cabin)
Created sympathy for them
Also generated support for ending Indian culture through assimilation
Formal education, job training, conversion to Christianity
Carlisle Industrial School
Set up by reformers to segregate American Indian children from their people and teach them white culture and farming and industrial skills
Dawes Severalty Act (1887)
Designed to break up tribal organizations
Divided tribal lands into plots of 160 acres
Government distributed 47 million acres of land
US citizenship granted to those who stayed on the land for 25 years and lived a “civilized” life
90 million acres of former reservation land was sold to white settlers
New policy proved a failure
Gilded Age
unprecedented prosperity and economic growth on the surface and deep rooted problems beneath the surface
plutocracy: government of the wealthy
increased standard of living (not accessible)
heavy industry
Cornelius Vanderbilt
Used money earned from steamboat business to merge local railroads into the New York Central Railroad in 1867
Ran from NYC to Chicago and was more than 4,500 miles of track
Jay Gould
Entered the railroad business for quick profits and made millions by selling off assets and watering stock.
Inflating value of corporation assets before selling its stock to the public
JP Morgan
Banker who during the financial panic of 1893 moved in to take control of bankrupt railroads and consolidate them.
Competition was eliminated so rates would be stabilized and debts would decrease.
One of the few powerful men who controlled the railroad system
Andrew Carnegie
Leader of the fast growing steel industry
Manufactured steel in Pittsburgh and exceeded his competitors through being a good salesman and using new technology
Employed vertical integration
Vertical Integration
Business strategy where a company would control every stage of the industrial process
From mining raw materials to exporting final products
U.S. Steel
Carnegie sold his steel company to Morgan for over $400 million, becoming US steel
First billion dollar company and largest enterprise in the world
Employed 168,000 people and controlled more than 3/5s of the country’s steel business
John D. Rockefeller
company in 1863 that controlled most of the country’s oil refineries
Extorted rebates from railroad companies and cut prices for oil, forcing other companies to sell out
Standard Oil Trust, controlled 90% of the oil refinery business
Horizontal integration
Caused dominant companies in other industries to organize trusts
Horizontal Integration
Former competitors bought under a single corporation
“Rags to Riches”
ideology that if you’re suffering you’re not working hard enough
Social Darwinism
the idea that certain people become powerful in society because they are innately better
Laissez-Faire Capitalism
free-market capitalism that opposes government intervention
Gospel of Wealth
Laissez-Faire, wealthy are better and more fit to distribute their wealth than the government
wealthy had a responsibility to spend their money to “benefit the greater good”
engage in philanthropy and charity
monopoly
a business that dominates and controls all aspects of the market for a specific good (vertical integration)
trust
a group of businesses who work together to achieve the same level of control as a monopoly (horizontal)
Sherman Antitrust Act (1890)
prohibited any “contract, combination, in the form of trust or otherwise, or conspiracy in restraint of trade or commerce.”
Still was too vaguely worded to stop the development of trusts, wasn’t enforced
United States v. E.C. Knight Co. (1895)
Ruled that the Sherman Antitrust Act could be applied only to commerce, not manufacturing.
declared any attempt to monopolize trade or commerce to be illegal
National Grange Movement
by Oliver Kelly as a social and educational organization for farmers and their families
Established cooperatives: businesses owned and run by farmers to save costs
Lobbied state legislatures in Illinois, Iowa, Minnesota, and Wisconsin, to pass laws regulating rates charged by railroads and elevators
Interstate Commerce Act (1886)
State laws regulating railroad rates were problems with railroads that crossed state lines
Required rates to be “reasonable and just”
prohibited fare discrimination
Set up first federal regulatory agency, Interstate Commerce Commission (ICC)
**lost most of its cases in the 1890s, was prone to corruption, railroad buses infiltrated it, helped crush competition and stabilize rates
Wabash v. Illinois
Supreme Court ruled that individual states could not regulate interstate commerce
Effect: nullified many of the state regulations achieved by the Grangers
Outcry of farmers and shippers
Farmers’ Alliances
State and regional groups formed to express discontent
Taught scientific farming methods
Goal of economic and political action
1 million members by 1890
Ocala Platform
The National Alliance met in Ocala, FL, to address problems of rural America
platform that:
Supported direct election of US senators
Lower tariff rates
A graduated income tax (higher income = higher tax)
New banking system
Demanded that treasury notes and silver were used to increase the amount of money in circulation
Federal storage for crops and federal loans
The Lockout
closing the factory to break a labor movement before it could get organized
Blacklists
names of pro-union workers circulated among employers
Yellow-dog contracts
workers being told, as a condition for employment, that they must sign an agreement not to join a union
Other strikebreaking tactics
Calling in private guards and state militia to put down strikes
Obtaining court injunctions against strikes
Fostering of public fear against unions
replacing workers with desperate unemployed people (scabs)
Great Railroad Strike of 1877
Cause: railroad companies cut wages to reduce costs
Shut down ⅔ of the US railroad
Railroad workers and 500,000 workers from other industries
President Hayes used federal troops to end labor violence
100 people killed
Impact: some employers improved wages and working conditions. Others busted worker’s organizations.
National Labor Union
First attempt to organize workers in all states (skilled and unskilled, agricultural and industrial)
Goals: higher wages, 8 hour day
Equal rights for women and blacks, monetary reform, worker cooperatives
Victory in 8 hour days but lost support after depression began in 1873
Knights of Labor
Secret society that began in 1869 to avoid detection
Advocated:
Worker cooperatives “to make each man his own employer”
Abolition of child labor
Abolition of trusts and monopolies
Favored settling labor disputes by arbitration rather than strikes
Haymarket Bombing
May Day Labor Movement: called for general strike to achieve 8-hour day
Labor violence broke out in Chicago
Workers had a meeting in Haymarket Square and police attempted to break up the meeting
Someone threw a bomb, killing 7 police officers
Americans were horrified by the bomb and concluded that the union movement was radical and violent
Knights of Labor lost popularity and membership
American Federation of Labor
attaining narrower economic goals
higher wages and improved working conditions
Workers walked out until the employer agreed to negotiate a new contract through collective bargaining.
founded by Samuel Gompers in 1886
Homestead Strike & Henry Clay Frick
Frick: manager of Andrew Carnegie’s Homestead Steel Plant
Strike in 1892 by cutting wages nearly 20%
Used weapons of the lockout, private guards, and strikebreakers to defeat the steelworkers’ walkouts
Failure: set back the union movement in the steel industry
Pullman Strike
Strike of workers living in George Pullman’s company town near Chicago
Pullman: manufactured railroad sleeping cars known as Pullman cars
Announced a general cut in wages in 1894
Pullman workers connected with American Railroad Union who directed railroad workers to not handle any trains with Pullman cars
Federal court issued an injunction forbidding interference with the operation of the mail and ordered railroad workers to abandon the boycott and strike
Eugene V. Debs
American Railroad Union leader who didn’t follow the federal court injunction so he was arrested and jailed
jailing ended the strike
After being in jail for 6 months, he concluded that radical solutions were needed to cure labor’s problems so he turned to Socialism and the American Socialist party which he helped to found in 1900.
Urbanization
industrial jobs bring people to cities (international and internal migrations)
Political Machines
a party organization, headed by a single boss or small autocratic group, that commands enough votes to maintain political and administrative control of a city, county, or state
Boss Tweed
Political machine in NYC who manipulated elections and had fraudulent public contracts
known for his corruption and influence in city politics
What helped immigrants
Settlement Houses (Hull House, Jane Addams)
Urban churches (Social Gospel)
Political Machines (Boss Tweed)
gave them access to government resources
What hindered immigrants
urban slums (tenement housing)
nativism (discrimination)
government legislation (ex. Chinese Exclusion Act)
“robber baron”
described feudal lords in medieval Europe who robbed travelers, often merchant ships along with the Rhine River as they passed nearby
Republicans in the Gilded Age
pro business but some regulation in social issues
strength came from men in business and middle class
gold standard- increase value of dollar if backed by precious metals like gold
Democrats
Won every election in the South following 1877 until mid 20th century
silver standard- less valuable than gold- back it with silver it would decrease the value of the dollar
makes it easier for people to pay off debts
Party Patronage
loyal party members gifted with jobs and favors
mugwumps
Republicans who didn’t participate in patronage
Industrial Rev: Positive Impacts on Farmers
new tech—> farming faster and more efficient
machinery increases production
railroads → fast transportation of crops to markets
Negative Impacts
expensive machinery necessary to compete
forced farmers into debt
enormous harvests drove down price of food
high shipping rates on railroads
Election of 1880
Republicans compromised the election of Garfield as president and Arthur as VP
James Garfield
besieged white house for 100,000 federal jobs
chose half-breeds (Repub faction) for most positions, caused controversy
shot and killed in 1881
Chester A. Arthur
president after Arthur’s Death
supported a bill reforming civil service
Expanded the number of government employees hired based on their qualifications rather than political connections
Improved the development of modern American navy
Questioned the high protective tariff
Grover Cleveland
President from 1885-1889 and 1893-1897
Democrat -> limited government, opposition to political corruption
Focused on civil service reform, tariff policy, and monetary reform
Pendleton Act of 1881
Set up the Civil Service Commission
Established a merit based system for federal employment
Turning point away from the Spoils system
Greenback Party
To expand the supply of US currency, they campaigned for more paper money and unlimited minting of silver coins
Northern farmers
14 members elected into congress in 1878
Died out at the end of the 1870s
Panic of 1873
governments de-pegged currencies to save money
led to Crime of 73 and Specie Resumption Act
Specie Resumption Act 1875
withdrew all greenbacks from circulation
Crime of 1873
Congress stopped the coining of Silver
Bland-Allison Act
A compromise law that was passed over Haye’s veto in 1878
Allowed only a limited coinage between 2 and 4 million dollars a month
Election of 1888
Democrats campaigned for Cleveland and a lower tariff
Republicans campaigned for Benjamin Harrison and a high tariff
Argued a low tariff would wreck business prosperity
Extremely close -> Cleveland won popular vote, Harrison won electoral
Billion Dollar Congress
Republicans controlled the presidency and both houses of Congress
First billion dollar budget in US history
Increases in monthly pensions to Civil War veterans, widows, and children
McKinley Tariff of 1890
raised tax on foreign products by more than 48%
The Populist Party
emerged from frustrated farmers determined to do something about the concentration of wealth
rejection of Laissez-Faire capitalism
Thomas Watson runs for president (loses)
Omaha Platform Political Goals
Foundation for the Populist Party:
direct popular election of senators
more referendums and initiatives
Economic Goals
unlimited coinage of silver
graduated income tax
8 hour work day
public ownership of railroads, telegraphs, and telephone systems by US gov’t
Election of 1892
James Weaver of Iowa, Populist candidate, won many votes as a third party candidate but didn’t win
Was really between Cleveland and Harrison -> Cleveland won
Panic of 1893
Stock market crashed due to overspeculation
Dozens of railroads went into bankruptcy due to overbuilding
Lasted almost 4 years
High farm foreclosures
Unemployment rate reached 20%
Election of 1896
William McKinley (R) vs. William Jennings Bryan (D)
democrats were divided and absorbed the Populist platform
Bryan → Silver candidate, gave the “Cross of Gold” speech
Bryan’s manager got him elected
1896- Turning Point
silver as an issue is dead (gold found in Alaska)
end of Populists → birth of Progressive movement
triumph of modern over traditional values
industry/urban vs. agriculture/ rural
Klondike gold rush in 1896
Mark Hanna
owner of Cleveland Coal and iron enterprise
raised millions for Republican ticket
front porch campaign
Wizard of Oz Significance
represents America in this time period
Henry Grady and the New South
Editor of Atlanta Constitution
New vision for self-sufficient economy built on modern capitalist values, industrial growth, and improved transportation
Spread idea of New South through editorials arguing for economic diversity and Laissez-Faire Capitalism
Tenant Farming (sharecropping)
System of agricultural production where a landowner allows a tenant to use the land in exchange for a share of the crops grown on the land
black people tied to the land by debt
Colored Farmers National Alliance
Organization for African Americans
250,000 members
Rallied behind political reforms to solve farmers’ economic problems
Struggled because power gaps between white people
George Washington Carver
African American scientist at a college in Alabama
Promoted growing of peanuts, sweet potatoes, soybeans
Made southern agriculture more diverse
Ida B. Wells
crafted positive narratives about African Americans
fought against Jim Crow Laws and lynching
Memphis Free Speech
“Black people more sinned against than they have sinned”