Economics of Westward Expansion (1865-1898)

Economics of Westward Expansion (1865-1898)

Overview

• This period covers the causes and effects of the settlement of the West from 1877 to 1898.
• Focus on economic changes, the plight of farmers, and the incentives for westward migration.

Mechanization of Agriculture

• Agriculture underwent a massive transformation.
• Introduction of machines:
  • Mechanical Reaper: A machine that harvests crops.
  • Combine Harvester: A machine that combines reaping, threshing, and winnowing.
• Effects of mechanization:
  • Replaced human and animal labor.
  • Increased Crop Production:
    • Production of crops like corn and wheat doubled between 1870 and 1900.
  • Obsolescence of Small Farmers:
    • Small farmers couldn't compete with large-scale mechanized farms due to the high cost of new machinery.

Economic Hardships for Farmers

• Increased crop production led to a surplus, causing prices to decline.
• Small farmers struggled to survive at lower prices.
• Industrial Trusts:
  • Maintained high prices on manufactured goods.
  • Made it difficult for farmers to afford essential items like clothing and furniture.
• Railroad Problems:
  • Railroad owners charged high prices for shipping crops to market.
  • Further squeezed farmers' profits.

The National Grange Movement

• Farmers organized to resist these economic changes through the National Grange Movement.
• Founded in 1868 to bring isolated farmers together for socialization and education.
• Quickly became political, advocating for laws to regulate railroad rates and abusive corporate practices.
• Granger Laws:
  • State laws passed in the Midwest to regulate railroad rates and corporate practices.
• Commerce Act of 1886:
  • Required railroad rates to be "reasonable and just."
  • Established the Interstate Commerce Commission (ICC) to enforce these regulations.

Incentives for Westward Migration

• The federal government encouraged westward migration through various initiatives:
  • Pacific Railroads Acts:
    • Granted land to railroad companies to build a transcontinental railroad.
  • Transcontinental Railroad:
    • Completed in 1869 at Promontory Summit, Utah.
    • Connecting the East and West coasts.
    • Four more transcontinental railroads were built with government support.
  • Homestead Act of 1862:
    • Provided free land to settlers on the condition they would farm and settle it.
    • Granted potential migrants 160 acres of free land out west on the condition that they would farm it and settle it.
    • Not enough land for a farmer to make a living, leading to many farmers going bankrupt.
  • Discovery of Precious Metals:
    • The discovery of gold and silver also spurred westward migration.

Gold and Silver Rushes

• California Gold Rush (1848):
  • Initial surge of migrants seeking gold.
• Pike's Peak Gold Rush (1869):
  • Gold discovery in Pike's Peak led to an influx of over 100,000 people.
• Boomtowns:
  • Towns like Denver City and Boulder City sprang up overnight due to the gold rush.
  • Diverse populations due to the universal desire for gold.