APUSH Unit 6: The Gilded Age (1865-1898)
6.1: Contextualizing Period 6
Economic Changes: Large-scale industries (railroads, steel mills, mining) were capital intensive. Wealthy Europeans joined wealthy Americans to fund stock and bond sales needed for expanding industries.
Advancements in technology and improved transportation systems changed the way Americans lived and increased productivity of large-scale industries. Manufacturing boomed in the North and agriculture took hold in the West.
Industries depended on expanding markets connected by railroads, steamships, and networks of telegraphs, cables, and telephones. American industries also began to expand their market internationally (Europe, Latin America, Asia)
Political Changes: American businesses also benefited from pro-growth government policies that protected property rights, refrained from regulating business operations, sheltered domestic manufacturers with high tariffs, and subsidized railroads with land grants and loans.
Federal, state, and local governments often overlooked the problems of workers, farmers, consumers, and growing urban populations/cities
This would generate debates over the proper role og government in the economy
Migration & Urbanization: Growing industrialization in cities and westward expansion pulled people from rural areas and foreigners
Foreign immigrants from Southern & Eastern Europe and Asia will migrate to the US, benefitting economic growth and cultural diversity.
Industrialization accelerated urban development leading to extreme growth in cities, causing sanitation problems, degradation of the environment, and weak law enforcement
Low wages, lack of housing, and overcrowding resulted in squalid living conditions for migrant families and poorer, working classes
Industrialization also led to an expanding middle class, who had more leisure time and developed a new urban culture of leisure such as sports, music, and theater
Reform Efforts: Reform movements arose due to rapid economic and cultural changes.
Workers, farmers, and the growing middle class began to demand changes in economic, political, and cultural institutions.
Farm organizations protested against unfair railroad rates and banking practices, while industrial workers fought for higher wages and the right to organize unions
Women led a campaign for temperance and started fighting for women’s suffrage
6.2: Westward Expansion & Economic Development
After the Civil War, the government invested heavily in transportation and communication systems, which helped connect the different regions of the nation and create new markets. The Republicans returned to Henry Clay's American System, which advocated for government investment in infrastructure projects, and they used federal funds to build the Transcontinental Railroad.
The Transcontinental Railroad was a massive undertaking that linked the East and West coasts of the United States by rail, and it was completed in 1869.
The railroad boom that followed helped connect regional areas of the country and opened up new markets for trade and commerce.
It also greatly facilitated the settlement and development of the American West, which had previously been difficult to access.
The construction of the Transcontinental Railroad also had a significant impact on the nation's economy, as it spurred the growth of industries such as steel, coal, and manufacturing.
It also provided jobs for thousands of workers, and it led to the growth of many towns and cities along the railway.
The railroad was a key factor in the capitalist development of the United States during the Gilded Age, and it played an important role in shaping the nation's economy and society.
Mining Frontier
Mining was a major factor that attracted people to the West during the Gilded Age. The California Gold Rush of 1848 was the first significant mining boom in the West, and it led to a large influx of people to California in search of gold. This was followed by other gold and silver rushes in other western states, such as Colorado and Nevada.
Individual prospectors, known as "49ers", flocked to the West in search of wealth and many did strike it rich, but for most, it was a hard and unprofitable endeavor. Eventually, mining became too expensive for the average miner to undertake, as it required deep shafts and costly equipment. Large corporations then moved in to take over the mining operations, which led to the displacement of many small-scale miners.
The mining boom led to the creation of many boomtowns, which were towns that sprang up overnight as a result of a rich strike. These towns were often characterized by saloons, dance hall girls, and vigilante justice. However, many of these towns would become ghost towns within a few years after the gold or silver ran out. The mining boom brought wealth to some but also brought hardship to many, and it had a significant impact on the development of the American West during the Gilded Age.
Chinese Exclusion Act
As mining operations developed in the West during the Gilded Age, mining companies employed experienced miners from various parts of the world, including Europe, Latin America, and China. In many mining camps, a significant portion of the population was foreign-born, with as much as 25-50% of the population being made up of immigrants.
However, the Chinese immigrants faced significant discrimination, and in 1882, the United States Congress passed the Chinese Exclusion Act, which suspended immigration of Chinese laborers for ten years. This was the first major act of Congress to restrict immigration on the basis of race and nationality. The act was driven by anti-Chinese sentiment and economic competition, as many Americans saw the Chinese as taking jobs away from native-born workers and driving down wages. The act was also motivated by a belief that the Chinese immigrants were not capable of assimilating into American society.
The Chinese Exclusion Act was extended multiple times and was not repealed until 1943. The act had a severe impact on the Chinese-American community, and it created a discriminatory and exclusionary system that denied basic rights to Chinese immigrants and their descendants for over 60 years. It is considered a dark chapter in American history and had a lasting impact on the Chinese-American community.
Agricultural Frontier
The Homestead Act of 1862 was a significant piece of legislation that encouraged farming on the Great Plains by offering 160 acres of public land free to any family that settled on it for a period of five years. Many people moved west to take advantage of this opportunity, and it contributed to the settlement and development of the American West.
The Homestead Act was one of the several government policies that helped spur the growth of agriculture in the West. Innovations such as the McCormick reaper and cotton gin had already led to greater agricultural production, but new innovations like barbed wire and the refrigerated railroad car further boosted the productivity of Western settlers' farms and ranches. These innovations made it possible to fence in and protect large areas of land, and to transport and store perishable goods, which helped to increase the scale of agricultural operations.
However, while the innovations and the Homestead Act led to increased productivity in agriculture, it also led to lower prices for farm products, and many farmers began to see large corporations (banks, railroads, etc.) as the enemy.
They felt that many government policies were benefiting large corporations at the expense of small farmers.
The farmers began to organize and form cooperatives and political groups to push for policies that would benefit small farmers. This was the start of the farmers movement which will grow stronger during the following decades.
Cattle Frontier
Cattle ranching dominated the open range, a vast fenceless area extending from the Texas Panhandle north into Canada. The problem was how to get the beef to eastern markets, and Joseph McCoy was one of the people who helped solve this problem. He conceived the idea of taking the cattle to the railheads in Kansas and built the first stockyards in the region in Abilene, Kansas, to hold cattle destined for Chicago. In 1870, 300,000 head of Texas cattle reached Abilene, followed the next year by 700,000.
Cowboys, or cattle herders, pushed steers northward in herds of two to three thousand. While novels and films often portray cowboys as white, at least a quarter of cowboys were black and another quarter were Mexican. The cowboy culture is a diverse culture, and it was not just white men who drove cattle to the railhead.
The rise of the railroads in the late 19th century also helped with the transportation of cattle to eastern markets. The railroads made it possible to transport cattle to places like Chicago, where they could be slaughtered and processed. This led to the growth of the meatpacking industry in the Midwest, and Chicago became known as the "hog butcher for the world."
The cattle drives were a significant part of the history of the American West and had a significant impact on the economy and society of the region. The open range and the cowboy culture that developed around it are an iconic part of American history.
Grange Movement
The Grange movement, also known as the National Grange of the Patrons of Husbandry, was a fraternal organization for farmers that was founded in 1867. The Grange was formed to provide a sense of community among farmers and to organize resistance against the monopolistic practices of railroads, grain elevators, and other large corporations. These groups were typically local cooperatives that encouraged farmers to unite and better their communities.
From these movements, the Farmers’ Alliance was founded after the Panic of 1873. The Farmers' Alliance was a political organization that grew to be one of the largest farmers’ groups ever, with a membership of over one million.
The Farmers' Alliance organized cooperatives to buy supplies for less and sell goods collectively.
They also provided loans to farmers and asked for government support in stabilizing the agricultural economy.
They also advocated for the regulation of railroads, the creation of a graduated income tax, and the establishment of a graduated land tax.
The Farmers' Alliance played a major role in the populist movement of the 1890s, which aimed to give more political power to farmers and workers. They eventually merged with the People's Party, also known as the Populist Party, which ran a presidential candidate in 1892.
Overall, the Grange movement and the Farmers' Alliance are examples of how farmers and rural communities organized themselves to address the challenges they faced during the Gilded Age, and how they pushed for government policies that would benefit them.
Ocala Platform
Many farmers’ alliances were politically minded and lobbied state legislatures for regulations on railroad rates.
In 1890, several farmers’ alliances met in Ocala, FL to discuss a few common political initiatives. There, they established the Ocala Platform, which called for the following:
Direct election of US senators
Lower tariff rates
A gradual income tax (people with higher incomes would pay higher rates of tax)
A new banking system regulated by the federal government.
It also urged the free coinage of silver ⛓, and increase its use in circulation to create inflation and raise crop prices.
Federal storage for farmers crops and federal loans, which would free farmers from dependency on middlemen and creditors.
These issues (and the government’s failure to address them) eventually led to the foundation of the Populist Party (or the People’s Party) in 1892
6.3: Westward Expansion: Social & Cultural Development
The West was seen as a land of opportunity by many settlers during the 19th century. The discovery of gold and silver in the region, as well as government land grants such as the Homestead Act, attracted a diverse group of people including homesteaders, miners, railroad workers, and ranchers. Both immigrants and American citizens were drawn to the West in search of new opportunities and a chance to start a new life.
One Big Reservation Policy
Before the Civil War, the land west of the Mississippi River was considered "Indian Country" by the US government, and access to the area was restricted to white people through the Indian Intercourse Act of 1834.
This act prohibited whites from entering the area without a government-issued license.
In 1851, the US government adopted a new policy of "concentration" for the native tribes, which involved defining specific boundaries for each tribe's reservation and relocating native peoples to these designated areas.
This policy was intended to clear the way for white settlement in the West.
Sand Creek Massacre
The Sand Creek Massacre, also known as the Chivington Massacre, occurred in 1864, where a group of Cheyenne and Arapaho tribes, led by Chief Black Kettle, had asked for peace and camped on Sand Creek in Colorado.
They were attacked early in the morning by a group of Colorado military under the command of Colonel John Chivington.
The soldiers were ordered to "Kill and scalp all, big and little. Nits make lice."
Chief Black Kettle tried to stop the attack by raising an American flag and a white flag, but the soldiers ignored them and killed and scalped nearly all of the tribe members, including women and children.
The Sand Creek Massacre is considered one of the most horrific acts of violence against Native Americans in US history.
Little Bighorn
The Battle of Little Bighorn, also known as "Custer's Last Stand," was a battle that took place on June 25, 1876, as part of the northern Sioux Wars.
The US Army, under the command of Lieutenant Colonel George Armstrong Custer, was sent to engage a band of Sioux warriors.
Custer believed he had a small group of warriors surrounded on the banks of the Little Bighorn River in Montana, but instead he found himself in the middle of a much larger Sioux camp of around 2,500 warriors.
Custer and his men were quickly overwhelmed and killed in the battle.
The news of Custer's defeat and the deaths of his men caused a public outcry and demands for revenge throughout the US.
Ghost Dances
The rapid settlement of the West greatly upset many Native American tribes, who saw it as a threat to their way of life and an infringement on their land.
In response, many tribes engaged in both active and passive resistance. One of the most notable movements was the Ghost Dance movement, which emerged in the late 1800s among several tribes.
The Ghost Dance was a religious movement that promised to restore Native American lands and bring back the bison, while causing the white settlers to disappear.
The Ghost Dance was based on the belief that through the performance of the Ghost Dance, all Native Americans would unite and a new Earth would come into being. This new Earth would be covered in dust, and the vanished buffalo would return in great herds.
Wounded Knee Massacre
The Ghost Dance movement and the belief in its ability to restore Native American lands and bring back the buffalo, led to the intervention of the US Army.
They were tasked with stopping the Ghost Dance and the violence that ensued.
This ultimately led to the killing of Sitting Bull, a Hunkpapa Lakota Sioux holy man and leader of the Sioux tribes.
In December 1890, the army caught up with a group of Sioux who were practicing the Ghost Dance and took them to the army camp at Wounded Knee Creek in South Dakota.
The situation quickly escalated, when an accidental shot was fired, and the army responded by opening fire with their new machine guns.
They killed about 200 men, women and children, shredded their teepees and left many of them in the snow.
This event became known as the Wounded Knee Massacre, considered as one of the most tragic and notorious incidents in the history of the US treatment of Native Americans.
Assimilation
The US government's treatment of Native Americans during the late 19th and early 20th centuries included a policy of forced assimilation, in which the government sought to assimilate Native Americans into white American culture.
This policy was implemented through a variety of means, including the establishment of boarding schools for Native American children, such as the Carlisle Indian School, which aimed to break the connection between the children and their culture and traditions.
The government also actively sought to break up tribal sovereignty and violated its own treaties with native tribes.
The policy of forced assimilation and the breaking up of tribal sovereignty were aimed at assimilating Native Americans into the dominant American culture, and were often implemented through military force and repression.
Dawes Act
The Dawes Act of 1887 (also known as the General Allotment Act) was a federal law that aimed to assimilate Native Americans into white American culture by redistributing native lands and confining them to life on reservations.
The act divided tribal lands into individual allotments, which were then distributed to individual Native American households.
47 million acres of land were distributed under the Dawes Act, however another 90 million acres were designated as reservations and sold to white settlers as they were considered more fertile.
The implementation of the Dawes Act, along with other policies aimed at assimilating Native Americans and breaking up tribal sovereignty, resulted in the loss of much of their land and a significant decrease in their population.
The Hardships of the Farming Frontier
Life in the West was difficult for many settlers, as they faced harsh conditions and the possibility of failure. Miners, homesteaders, ranchers, railroad workers, and other migrants all had to contend with the harsh realities of frontier life.
Farmers in particular struggled with falling prices for agricultural goods and rising railroad rates, which made it difficult for them to make a living.
This led to the formation of Progressive reform movements, such as the Grange Movements and Farmers' Alliances, which aimed to address these economic challenges by advocating for government regulation of certain industries.
However, despite some successes, many farmers continued to face economic struggles and challenges in the West.
The formation of monopolistic trusts in the East, such as the Standard Oil Company and the American Sugar Refining Company, led to high prices for manufactured goods and further economic struggles for farmers in the West.
These trusts, which controlled much of the country's industry, had the power to keep prices high and limit competition.
As a result, farmers found it increasingly difficult to make a living, as they were making less money while having to pay fixed or increasing expenses and taxes.
Additionally, farmers had to compete with commercialized bonanza farms, which had access to expensive equipment and often received reduced railroad and storage rates. This made it difficult for small farmers to compete and survive in the West.
The economic struggles of farmers in the West led to the emergence of Progressive reform movements, such as the Grange Movements and Farmers' Alliances.
These groups sought to address the economic challenges faced by small farmers by lobbying state legislatures for economic regulation of certain industries.
One notable achievement of these movements was the Supreme Court case of Munn v. Illinois, which established that states had the power to regulate commerce within their own borders.
The federal government also attempted to address these issues through the passage of the Interstate Commerce Act of 1887, which was the first federal law aimed at regulating industry.
However, these efforts were not always successful in resolving the economic struggles of farmers in the West, as large corporations were able to circumvent regulations and maintain control over certain industries.
While the Grange Movements and Farmers' Alliances made some progress in addressing the economic challenges faced by small farmers in the West, their successes were limited.
Large corporations, such as the railroad companies, were able to circumvent regulations and maintain control over certain industries.
For example, after the Supreme Court case of Munn v. Illinois established that states had the power to regulate commerce within their own borders, railroad companies got around the ruling by simply hiking up rates for interstate hauls.
Similarly, the Interstate Commerce Committee, which was established by the Interstate Commerce Act of 1887, had limited success in regulating the railroad industry.
Overall, the efforts to address the economic struggles of small farmers in the West were hindered by the power and influence of large corporations.
In 1890, the US Census Bureau officially declared that the American frontier had been closed.
This marked the end of westward expansion and the settling of the western territories. The census report stated that there was no longer a vast Western area with few settlers, and that the process of westward expansion had been completed.
This realization marked the end of an era in American history, as the Western frontier had been a defining aspect of American identity and had played a significant role in shaping the nation's culture and economy.
With the closure of the frontier, the focus of American society shifted towards urbanization, industrialization, and the development of new technologies and industries.
6.4: The “New South”
New South
Despite some small areas of industrialization and some rallying calls to construct a “New South,” the south struggled to rebuild.
Some southerners promoted a new vision for a self-sufficient southern economy built on modern capitalist values, industrial growth, and improved transportation. Railroads and the expansion of markets led to increased industrial production and new city development.
Henry Grady, the editor of the Atlanta Constitution spread the gospel of the New South with editorials that argued for economic diversity and laissez-faire capitalism.
Despite progress, the South remained a largely agricultural section and also the poorest region in the country. The poverty of the majority of southerners was not caused by northern capitalists. Two other factors were chiefly responsible:
The South’s late start at industrialization
A poorly educated workforce.
Agriculture in the “New South”
Although slavery has been outlawed, landowners continued to employ African Americans on their plantations through tenant farming and sharecropping.
Sharecropping is a type of agricultural system in which the landowners provide resources to farmers in return for a portion of the profits the farmers make from their crops. While this may sound reasonable, many former slaves had no choice but to work as tenants for white landowners. They could not legally own land and had to work for others.
Tenant Farming was another similar system. The landowners would rent out pieces of their land to a tenant farmer. They would pay the landowner rent through the crops they harvested that season.
Social Status for Former Slaves
There was little to no social mobility and economic opportunity for many African Africans due to racial segregation. The KKK continued using violence to keep African Americans out of the polls and legislative offices. Lynching was widespread. Literacy tests, grandfather clauses, and poll taxes were also used to restrict voting rights.
Supreme Court & Civil Rights
The Supreme Court⚖ made a series of decisions that severely limited the nature of the Fourteenth Amendment.
In the Civil Rights Cases of 1883, the Court ruled that Congress could not legislate against racial discrimination practices by private citizens, which included railroads, hotels, and other businesses. This meant that anyone but the government could discriminate against African Americans.
The most important of these cases was Plessy v. Ferguson (1896). The case stemmed from a challenge to a Louisiana law that required separate railway cars for white and black passengers. Homer Plessy, an African American man, refused to leave a whites-only railway car and was arrested. He argued that the law violated the Thirteenth and Fourteenth Amendments to the U.S. Constitution, which guarantee equal protection under the law and prohibit discrimination on the basis of race.
The Supreme Court ruled that segregation was constitutional under the doctrine of “separate but equal.” This ruling ushered in the Jim Crow Era, and allowed the government institutions to practice segregation.
Voter Suppression
Various political and legal devices were invented to prevent blacks from voting. The most common were literacy tests. They were extremely difficult tests meant to stop African Americans from voting. Since many could not obtain formal education, they could not pass the test and vote in elections. Poll taxes and political party primaries for whites only (white primaries) also prevailed. Many southern states adopted grandfather clauses, which allowed a man to vote only if his grandfather had cast ballots in elections before Reconstruction.
Activists
Still, many brilliant minds (such as Booker T. Washington, W.E.B. DuBois, and Ida B. Wells) continued to debate the nature of racial relations and advocate for civil rights.
Booker T. Washington: influential African American educator and leader in the late 19th & early 20th centuries.
Advocated for accomodation/vocational education for African Americans as a means to improve their economic status, while not directly challenging segregation.
Tuskegee Institute: an educational institution founded by Booker T. Washington which focused on teaching practical job skills to African Americans
Atlanta Compromise: An agreement struck in 1895 where Southern black leaders (like Booker T. Washington) vowed to submit to white political rule, while Southern whites guaranteed that blacks would receive basic education and due process in law.
WEB DuBois: a contemporary of Booker T. Washingotn who disagreed with his approach, advocating instead for immediate civil rights and higher education for African Americans
NAACP (National Association for the Advancement of Colored People): An organization co-founded by DuBois that works to ensure political, educational, social, and economic equality for all persons to eliminate race-based discrimination.
Talented Tenth: A term popularized by DuBois referring to the likelihood that one in ten black men would become leaders within their communities through education, writing books or becoming involved in social change.
The Souls of Black Folk: This is a seminal work by W.E.B. DuBois that explores the history and experiences of African Americans post-Civil War.
Ida B. Wells: African-American journalist, abolitionist, and feminist who led an anti-lynching crusade in the United States during the 1890s.
Anti-Lynching Crusade: A movement led by Ida B. Wells aimed at ending racially motivated violence particularly towards African-Americans in Southern states during Jim Crow era.
Southern Horrors: Lynch Law in All Its Phases: An investigative journalism piece written by Wells that exposed the horrors of lynching in the South.
The Red Record: Another significant work by Wells, it is a detailed examination of lynchings in America.
6.5: Technological Innovation
The growth of industry in the United States during the late 19th and early 20th centuries was driven by several factors, including new technological innovations, greater access to natural resources, and a rapidly growing labor force.
The use of steam engines, kerosene, and electricity in manufacturing and production led to increased output power and efficiency.
The United States also began tapping into its natural resources, particularly iron, coal, and oil, as a means of more efficient production.
This created a boom in manufacturing and had a significant impact on the country's economy and foreign policy.
The industrial boom also led to urbanization as people migrated from rural areas to cities in search of work in the factories.
The increase in industrial production also led to the development of new transportation methods such as railroads and steamships, which allowed for faster and more efficient movement of goods and people.
The rise of industry also had a significant impact on the labor force.
The introduction of assembly line production led to an increase in the demand for unskilled labor, which led to the growth of the working class and the rise of organized labor.
This, in turn, led to the formation of trade unions and the rise of the labor movement.
Additionally, the growth of industry in the United States also led to the development of new business practices, such as vertical integration and the rise of large corporations.
These corporations controlled large portions of the economy and had a significant impact on the country's politics and society.
Communications
The invention of the telegraph and the telephone were two of the most significant technological advancements that transformed communications during the 19th century.
Samuel F.B. Morse's invention of a workable telegraph in 1844, and the improvements made by Cyrus Field in 1866 with the transatlantic cable, allowed for faster and more efficient communication over long distances.
By the 1870s, telegraph networks were in place on every continent, revolutionizing the way people communicated with one another.
Alexander Graham Bell's invention of the telephone in 1876 was another major breakthrough in communications technology.
Both the telegraph and telephone greatly improved the speed and efficiency of communication, revolutionizing the way people interacted and conducted business.
They played an important role in the development of modern society by connecting people and businesses across the globe, and laying the foundation for the development of more advanced communication technologies such as the radio, television, and the internet.
Industry
The high speed spindle, automatic looms, and electric sewing machines were significant innovations that transformed the clothing industry during the late 19th century.
These technological advancements made it possible for manufacturers to produce ready-made clothes for the masses, which greatly increased the efficiency and productivity of the clothing industry.
This led to a decrease in the cost of clothing and made it more affordable for people of all socioeconomic backgrounds to purchase.
Another major innovation of the time was Andrew Carnegie's use of the Henry Bessemer's process of steel production.
This process allowed for steel to be produced more efficiently and at much lower prices than ever before.
This was a significant development as steel was used extensively in construction and infrastructure projects such as building railroads in the West and cities in the East.
This led to the growth of the national economy and the expansion of the country.
The innovations in steel production and the clothing industry were important contributors to the growth of the economy and the development of modern society.
The steel industry was a major driving force behind the expansion of infrastructure and the construction of new buildings, while the clothing industry made it possible for people of all socioeconomic backgrounds to purchase affordable clothing.
In addition to the innovations in steel production and the clothing industry, other technological advancements also played a significant role in transforming society during the late 19th century.
One of these was the development of the internal combustion engine, which was used in automobiles and other forms of transportation, greatly improving the efficiency and speed of travel.
The invention of the electric elevator also greatly improved the efficiency and speed of transportation within buildings, making it possible to construct taller buildings than ever before.
The growth of the retail industry was also a direct result of the technological advancements of the time.
The development of the department store and the mail-order catalog made it possible for people to purchase goods from a wide range of products at one location or through mail-order, greatly improving the convenience of shopping and making it more accessible to people all over the country.
Electricity
Edison's invention of the incandescent lightbulb in 1879 was one of the most significant technological advancements of the late 19th century. The invention made it possible for people to light their homes and workplaces with electric light, greatly improving the efficiency and convenience of lighting. Edison's initial system was based on low-voltage direct current, which could be transmitted only about 2 miles.
However, George Westinghouse, demonstrated the advantages of high-voltage alternating current for transmission over great distances.
developed an alternating current motor that could convert electricity into mechanical power.
This allowed factories to be located further away from water or coal, greatly increasing the flexibility and efficiency of industry.
The incandescent lightbulb, the development of the alternating current transmission system, and the alternating current motor all greatly improved the efficiency and accessibility of electricity.
This had a profound impact on society, transforming the way people lived and worked, and greatly contributing to the growth of the economy.
The innovations of Edison, Westinghouse and Tesla also led to the formation of General Electric, one of the largest and most influential companies in the world.
Review
Technological advances during the period of 1865-1898 played a major role in the development of the United States. Some of the key effects of these advancements include:
Economic growth: Technological advancements in areas such as steel production, transportation, and communications greatly contributed to the growth of the economy during this period. The development of new manufacturing processes and machinery led to increased productivity and efficiency, making it possible to produce goods at lower costs, which in turn led to the expansion of industry and the creation of new jobs.
Expansion of infrastructure: The use of new technologies such as the Bessemer process for steel production, the internal combustion engine, and the electric elevator made it possible to construct railroads, bridges, and buildings on a scale previously unimaginable. This led to the expansion of infrastructure and the growth of cities.
Improved transportation: The development of the steam engine, the internal combustion engine, and the electric elevator greatly improved the efficiency and speed of transportation, making it possible to travel greater distances in less time.
Increased communication: The invention of the telegraph and the telephone greatly improved the speed and efficiency of communication, making it possible to transmit information over long distances quickly.
Social changes: Technological advancements also led to social changes, such as the growth of the retail industry and the availability of ready-made clothing, which made it possible for people of all socioeconomic backgrounds to purchase goods and services that were previously only available to the wealthy.
Development of new industries: The invention of the incandescent lightbulb and the development of the alternating current transmission system led to the creation of the electric power industry. The development of the internal combustion engine led to the creation of the automobile industry.
Improved living standards: The availability of electric light made it possible for people to work and study in well-lit environments at any time of the day. The development of the telephone and telegraph made it possible for people to communicate with each other quickly and easily, regardless of their location.
Impact on foreign policy: The technological advancements of this period also had an impact on foreign policy. The development of the steel and oil industries, for example, led to the United States becoming a major industrial and economic power, which in turn led to an expansion of its political and military influence abroad.
Impact on labor: The introduction of new machinery and manufacturing processes led to increased productivity and efficiency, but also led to the displacement of many workers. This led to the rise of the labor movement and the push for better working conditions and fair wages.
6.6: The Rise of Industrial Capitalism
Railroad Business
The expansion of the railroad system in the US after the Civil War due to the US government subsidizing its growth by providing companies low-interest loans and millions of acres of public lands, had a significant impact on economic/social development.
Increased railroads created a national market for goods by making it possible to transport goods and people over long distances quickly and efficiently. This, in turn, encouraged mass production and consumption.
Facilitated economic specialization as it allowed for the movement of goods and people between different regions, encouraging the growth of industries in areas that had access to natural resources and other advantages
The introduction of new technologies such as air brakes, refrigerated railcars, dining cars, heated cars, and electricity transformed the railroad industry by making it safer and more comfortable to transport passengers and more efficient to ship goods, allowing long-distance travel to be more accessible to people
The federal government provided subsidies in the form of loans and land grants to railroad companies, leading to the expansion of railroads, facilitating Western settlement
Cornelius “Commodore” Vanderbilt: successful businessman who used his fortune from steamboat business to merge local railroads into the New York Central Railroad (1867) which ran from NYC to Chicago and operated more than 4500 miles of track
Cons of Railroads
Investors often overbuilt new technologies, leading to overcapacity in the industry
Railroads suffered from mismanagement and fraud, with some speculators entering the industry for quick profits and engaging in practices such as selling off assets and watering stock (inflating the value of a corporation’s assets and profits before selling its stock to the public)
To survive, railroads competed by offering rebates and kickbacks to favored shippers while charging high freight rates to smaller customers (ex: farmers)
Led to financial panic in 1893, forcing a quarter of all railroads into bankruptcy
Bankers like JP Morgan moved in to take control of the bankrupt railroads and consolidate them, leading to the creation of large railroad monopolies
Andrew Carnegie & Steel Industry
In the 1850s, both Henry Bessemer (England) & William Kelly (US) discovered that blasting air through molten iron produced high-quality steel
Henry Bessemer - developed the Bessemer Process, which was a new process of mass-producing steel, leading to a technological breakthrough that led to the rise of the steel industry
Andrew Carnegie: leader of the steel industry; Born in Scotland in 1835, he immigrated to the US and worked his way up from poverty to become the superintendent of a Pennsylvania railroad. In the 1870s, he started manufacturing steel and soon beat his competitors through salesmanship and use of the latest technology
Carnegie ran his business through vertical integration, where his company would control every stage of the industrial process, from mining the raw materials to transporting the finished product.
Later, Carnegie decided to sell his company for more than $400 million to JP Morgan. Carnegie believing that his wealth brought social obligations, decided to retire his business and devote himself to philanthropy.
Rockefeller & the Oil Industry
John D. Rockefeller founded the Standard Oil Trust which controlled 90% of the oil refinery business, becoming a monopoly, a company that dominated a market so much that it faces little or no competition from other companies.
By controlling the supply and prices of oil, Standard Oil’s profits soared
Standard Oil grew due to Rockefeller using new technology and efficient management practices, allowing his company to grow very powerful as he was able to extort rebates from railroad companies and temporarily cut prices in order to force rival companies to sell out
Trust: an organization or board that manages the assets of other companies (ex: Standard Oil Trust - one board of trustees managed a combination of once-competing oil companies)
Holding Company: company created to own and control diverse companies
Horizontal integration: process through which one company takes control of all its former competitors in a specific industry
Vertical integration: a process through which one company takes control of all stages of making a product (ex: Carnegie Steel)
Economic Philosophies
Laissez-faire capitalism:
Adam Smith, Wealth of Nations: argued that business should be regulated by the law of supply and demand, not the government
If the government kept its hands off (laissez-faire), businesses would be motivated by their own self-interest to offer improved goods and services at low prices
Social Darwinism:
The belief that Darwin’s idea of natural selection and survival of the fittest should be applied to the marketplace. They believed that concentrating wealth in the hands of those who deserved it benefitted everyone.
Based off Charles Darwin’s theory of natural selection
William Charles Sumner: introduce principles of Social Darwinism to sociology
argued that helping the poor was misguided because it interfered with the law of nature and would only weaken the evolution of the species by preserving the unfit
Social Gospel: reform movement led by Protestant ministers who applied Christian ethics to solve social problems such as inequality, child labor, poverty etc.
John D. Rockefeller (who was a devout Baptist) believed his wealth was a blessing from God and that he had a moral obligation to use it for the betterment of society.
He donated to many charitable causes and organizations (i.e. education, healthcare, arts) and believed that his business practices should be guided by Christian principles (i.e. honesty, integrity, fairness)
Andrew Carnegie’s article argued that the wealthy had a God-given responsibility to carry out projects of civic philanthropy for the benefit of society (the idea of the Gospel of Wealth).
He donated more than $350 million of his fortune to support libraries, universities, and the arts/public institutions
International Business Influence
Corporations increasingly desired to do business in Latin America & Asia.
Industries wanted the raw materials they could process into finished goods.
Businesses also wanted to sell manufactured goods and agricultural products abroad.
This led to the US being more involved in international affairs in the early 1800s & late 1900s.
6.7: Labor in the Gilded Age
As industrialization boomed during the Gilded Age, the gap between the wealthy and the poor grew significantly. Industrialization led to the growth of large factories and the rise of big businesses, which concentrated wealth and power in the hands of a small group of industrialists and business leaders, leading to an increase in economic inequality.
Workers often worked long hours and unsafe and unsanitary working conditions for low pay, many of which were immigrants/minorities who faced discrimination.
Children were also employed in these harsh working conditions, often working for long hours and performing dangerous tasks with no legal protection or compensation for injuries/accidents on the job.
This ultimately led to the rise of labor unions and the labor movement, as workers fought to improve their working conditions, wages, and labor rights. Often, management of companies would use different tactics to suppress worker strikes.
Anti-Union Techniques
Management often held a significant advantage over organized labor in terms of resources & power. With a high supply of cheap labor, they had to ability to replace striking workers with strikebreaker or scabs (unemployed people desperate for jobs), making it difficult for strikes to be successful and weakening the power of labor unions. Strategies for suppressing workers’ strikes include:
Lockout: closing a factory/workplace to prevent workers from going to work, breaking a labor movement before it even gets organized
Blacklists: a roster of the names of pro-union workers that employers circulated so that these people could not find work
Yellow-dog contract: a contract that included as a condition of employment that workers could not join a union
Private guards & state militia: forces used by employers to put down strikes
Court injunction: judicial action/court orders used by an employer to prevent or end a strike, making it illegal for workers to continue their strikes.
Attempts to Organize Unions
National Labor Union: formed in 1866; first attempt to organize all workers in all states
sought to improve the rights and working conditions of all workers, regardless of their trade/skill level
fought for 8-hour workdays, workplace equality, and the right to organize
lost support/members after the Panic of 1873; dissolved in 1876
Knights of Labor: formed in 1869 and accepted all workers regardless of skill, race, or gender.
one of the most influential labor unions but declined due to economic downturns and internal conflicts
also advocated for the 8-hour workday and the right to organize but also advocated a number of reforms:
forming worker cooperatives to “make each man his own employer”
abolishing child labor
abolishing trusts and monopolies
settling labor disputes by arbitration instead of strikes
Haymarket Riot: occurred in Chicago during a labor protest in support of workers striking for an 8-hour workday, but it turned violent when someone threw a bomb at the police, killing 8 people
Led to backlash against labor unions and the labor movement as a whole
Many people began to view labor unions as radical and anarchist organizations, which were further fueled by the growing Nativist sentiment of the time
Had major impact on the Knights of Labor, one of the most influential labor unions of the time, which had already been struggling with declining membership and internal conflicts, was further weakened by the negative public perception of labor unions following the Haymarket Riot
Public opinion of unions was damaged and the organization was unable to recover from the blow; led to increased government repression of labor unions and further weakened the power of organized labor
American Federation of Labor: led by Samuel Gompers; one of the most influential labor unions and focused on narrower goals such as:
better wages, better working conditions
nation’s largest labor organization at the time
Strikes
Homestead Strike of 1892: Henry Clay Frick (manager of Carnegie’s Homestead Steel Mill) incited resistance by reducing workers’ wages. The workers went on strike and Frick responded by locking the workers out of the plant. The workers surrounded it and Frick hired a small private army, the Pinkertons, to drive them off. Workers spotted the Pinkertons, shot at them and forced them to surrender. The Pennsylvania governor ordered the militia to impose peace at Homestead.
Pullman Strike of 1894: strike by railroad workers in the Pullman Palace Car Company (manufactured widely used railroad sleeping cars) who were protesting wage cuts and poor working conditions; led by Eugene V. Debs
They were joined by other railroad workers and the strike quickly spread nationwide
The Federal government, led by President Cleveland, intervened and obtained a court injunction against the strike, which made it illegal for the workers to continue their strike action and federal troops were sent to break up the strike, resulting in several deaths and injuries
Great Railroad Strike of 1877: nationwide strike by railroad workers, who were protesting wage cuts & poor working conditions
quickly spread to other industries and became one of the largest labor strikes in American history
The federal government intervened and sent federal troops to break up the strikes, leading to violent clashes and deaths of several workers and was put down
Led to the government taking a more aggressive stance towards labor unions
6.8: Immigration & Migration
Push Factors: negative factors or conditions that drive people to leave their home country and migrate to another country
the poverty of displaced farmworkers driven from the land by political turmoil and mechanization of farm work
Overcrowding and unemployment in European cities due to population growth
Religious or ethnic persecution
Pull Factors: positive conditions or factors that attract people to migrate to a particular country
economic opportunities afforded by settling in the West and the abundance of industrial jobs in US cities
the prospect of a better life
political and religious freedom
Old Immigrants: refers to immigrants who came to the US primarily before the 1890s, mostly from Northern & Western Europe
largely Protestant and mostly English speaking with a high level of literacy and had occupational skills that made it relatively easy for them to blend into American society
included many Irish and German immigrants; however, Irish and German Roman Catholics faced significant discrimination
New Immigrants: Beginning in the 1890s, there was a significant increase of immigrants coming from Southern and Eastern Europe, particularly: Italy, Greece, Poland, and the Russian Empire
Many were poor and illiterate/uneducated who left autocratic countries and were unaccustomed to democracy
Many were non-Protestants and were largely, Roman Catholic, Greek Orthodox, Russian Orthodox, or Jewish
Faced discrimination and prejudice from earlier waves of immigrants and from native-born Americans, who viewed them as culturally and socially different
Asian Immigrants: 1st large migration of Asians to the US was due to the California Gold Rush of 1848. The passage of the Chinese Exclusion Act (1882) prohibited the immigration of Chinese laborers and ended the immigration of people from China. (1st law implemented to prevent a specific ethnic group from immigrating to the US)
However, Japanese, Korean, and Filipino immigrants found work in Hawaii, and some settled in California & other states.
What caused migration from rural to urban areas?
Urbanization and industrialization allowed cities to provide both laborers for factories and a market for factory-made goods, leading to a shift from rural to urban.
People moving into cities included both foreign immigrants and migrants from the rural US. Many rural residents were farmers who faced economic challenges (ex: falling crop prices, rising costs of inputs, and limited opportunities for growth & expansion).
Economic factors: Urban areas offered a wider range of economic opportunities (factory jobs, retail, and service work). Additionally, many rural residents were attracted to the higher wages and better working conditions that were usually found in urban areas
Social factors: Many rural residents were seeking to escape the isolation and limited social opportunities in rural areas. Urban areas offered a wider range of social/cultural activities and a diverse population
Technological factors: Advances in transportation (i.e. expansion of railroads), made it easier and cheaper for people to travel to urban areas.
Advances in communication (i.e. telegraph and telephone), made it easier for people to stay in touch
Urban Development: Mass transportation had the effect of segregating urban workers by income.
Upper and middle classes moved to streetcar suburbs (communities that grew along transit routes leading to an urban center) to escape the pollution, poverty, and crime of the city.
The exodus of higher-income residents left older sections of the city to the working poor, many of whom were immigrants.
The residential areas of the cities and suburbs both reflected and contributed to the class, race, ethnic, and cultural divisions in American society.
Ethnic Neighborhoods: As affluent citizens moved to out of residences near the business districts, the poor moved into them.
Landlords would divide up inner-city housing into small, windowless rooms, turning them into tenement apartments
Overcrowding and filth in new tenements continued to promote the spread of deadly diseases such as: cholera, typhoid, and tuberculosis
Immigrant groups created distinct ethnic neighborhoods where each group could maintain its language, culture, religion, and social customs.
This explosive growth of immigrants to the US after 1865 renewed populist protests to keep down the number of immigrants, especially ones who differed by ethnicity, languages, and religions from the “old” immigrants.
The efforts to discourage or restrict “new” immigrants drew upon earlier opposition to Irish, Italian, and Chinese immigrants
Americanization is the process of acculturation by which immigrants to the US become Americanized in terms of customs, values, & traditions, and has played a significant role in shaping the cultural and social landscape of the US.
Americanization was seen as a means of assimilating immigrants into American society and promoting national unity.
Americanization programs were implemented by schools, organizations, and government agencies to teach immigrants English, American customs & civic values.
These efforts were often viewed as a way to assimilate immigrants and reduce the perceived threat of ethnic and cultural diversity
Americanization also had a significant impact on the immigrants themselves, as it often involved a process of cultural loss and identity.
Many immigrants were forced to abandon their own cultural traditions and practices in order to conform to American norms & values
Nativism was fueled by both economic and cultural forces
Economic factors: immigrants were perceived as competing for jobs and resources, and were often blamed for reducing wages and driving up the cost of living.
Cultural factors: many Native-born Americans feared that the large influx of immigrants would change the cultural fabric of the country and dilute American identity. Additionally, many of the immigrants (particularly those coming from Southern & Eastern Europe aka “new” immigrants were seen as culturally & ethnically different from the dominant Anglo-Saxon Protestant population)
Similarities & Differences Btwn Immigration Before & After the Civil War
Similarities | Differences |
|---|---|
Both waves of immigration were primarily driven by economic factors (immigrants sought better economic opportunities in the US) | Before the Civil War, majority of immigrants were from Northern & Western Europe, while
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Both waves of immigration were characterized by a large number of people coming from European countries, particularly Ireland & Germany | Before the Civil War, majority of immigrants were farmers/rural people. Afterthe war, many were skilled workers & urban people |
6.9: Responses to Immigration
The growing number of immigrants in the country prompted a multitude of responses from Americans and it was apparent that these individuals often struggled to assimilate and, more importantly, comprised the lowest social classes of America.
Social Darwinism
As the gap between the rich and poor classes in the US grew significantly, many Americans, particularly those who were wealthy and powerful, subscribed to the idea of Social Darwinism, which held that the wealthy and powerful were naturally superior and deserved their success.
This idea was often used to justify the exploitation of immigrants and other marginalized groups.
The idea of assimilation was also used to justify the forced acculturation of immigrants and other minority groups, as well as the forced removal and relocation of Native American communities in the West.
Immigrants were pressured to abandon their cultural traditions and adopt American customs and values, and their children were often forced to attend American schools that did not respect their cultural heritage.
Immigrants during this time faced significant challenges in navigating American society and balancing their old cultural traditions with the demands of their new reality.
Many faced discrimination and poverty and had to work hard to assimilate and make a life for themselves in the US.
Despite these challenges, many immigrants persevered and contributed to the diversity and growth of the country. Immigrants played a vital role in building the nation’s infrastructure and economy, and many formed tight-knit communities that helped them preserve their cultures and customs.
Opposition to Immigration
Several groups supported efforts to restrict immigration from 1865-1890. Each focused on its own reasons, though often these reasons overlapped.
Labor union members were motivated by economic concerns. They resented that employers used immigrants to depress wages and break strikes
Employers benefitted from competition among workers for jobs, but they feared that immigrants would advocate radical reforms.
Business owners often blamed strikes and the labor movement on foreign agitators.
Nativists felt alarmed that immigrants would not only take their jobs but would also weaken the culture of the Anglo majority. Often, nativists were Protestants who were openly prejudiced against Roman Catholics. The largest anti-Catholic organization of the 1890s was the American Protective Association.
Social Darwinists believed that southern and eastern Europeans and all non-Europeans were biologically inferior to people of English and Germanic heritage.
This idea was supported by many of the leading biologists of the 19th cent. before it was completely discredited.
Restrictions on the Chinese & Other Immigrants
The 1st major laws limiting immigration based on race and nationality targeted the Chinese. This hostility towards the Chinese mainly came from the Western states. In many mining towns, half the population was foreign-born, and often most of these were Chinese immigrants. In response to pressure from native-born miners, California passed a Miner’s Tax of $20 a month on all foreign-born miners.
In 1882, Congress passed the Chinese Exclusion Act, which banned all new immigration from China. These restrictions were not fully lifted until 1965.
Restrictions also came in 1882 on the Immigration of “undesirable” persons, such as paupers. criminals, convicts, and those diagnosed as mentally incompetent.
The Contract Labor Law of 1885 restricted temporary workers, an effort to protect American workers from competition.
Soon after the opening of Ellis Island in New York harbor as an immigration center in 1892, new arrivals had to pass more rigorous medical examinations and pay a tax before entering the US. During a severe depression in the 1890s, nativist sentiment increased, as some jobless workers and employers used foreign-born residents as a convenient scapegoat for economic problems.
Boss and Machine Politics
In many cities, politicians welcomed newly arrived immigrants to gain their loyalty in future elections. These tightly organized groups of politicians became known political machines.
Each machine had its “boss”, the top politician who gave orders to the rank and file and doled out government jobs to loyal supporters.
Several political machines, such as Tammany Hall in New York City, started as social clubs and later developed into power centers to coordinate the needs to businesses, immigrants, and the underprivileged.
In return, machines asked for people’s votes on election day.
Successful party bosses knew how to manage the competing social, ethnic, and economic groups in the city.
Political machines often brought modern services to the city, including a crude form of welfare for urban newcomers.
The political organization would find jobs and apartments for recently arrived immigrants and show up at a poor family’s door with baskets of food during hard times.
Political machines could be greedy as well as generous and often stole millions from the taxpayers in the form and graft and fraud.
In NYC in the 1860s, for example, an estimated 65% of public building funds ended up in the pockets of Tammany Hall’s “Boss” Tweed and his cronies
Settlement Houses
Concerned about the lives of the poor and new immigrants, a number of young, well educated, middle class women and men settled into immigrant neighborhoods to learn about the problems of immigrant families firsthand.
Living and working in places called settlement houses, the young reformers hoped to relieve the effects of poverty by providing social services for people in the neighborhood.
Most famous settlement house: Hull House in Chicago started by Jane Addams
Settlement houses taught English to immigrants, pioneered early childhood education, taught industrial arts, and established neighborhood theaters/musical schools.
Settlement houses played a crucial role in helping immigrants assimilate and adjust to life in the US.
They helped immigrants learn the language and customs of their new country, as well as providing them with the skills and resources they needed to find jobs and build better lives.
Ethnic Enclaves & Tenements
Many immigrants who settled in cities during the Gilded Age and early 20th century developed ethnic enclaves, which were neighborhoods where people of a particular ethnic or national background lived together.
These enclaves helped immigrants maintain a sense of community and culture, as well as provided them with a sense of familiarity and support in their new country.
One of the main reasons why ethnic enclaves developed was that many immigrants were concentrated in inner-city neighborhoods and could not afford housing elsewhere.
Landlords in these neighborhoods often divided up housing into small, windowless rooms in order to increase their profits, resulting in overcrowded and unsanitary conditions.
The resulting slums and tenement apartments were often overcrowded and squalid, with many families crammed into one small space.
In an attempt to correct the unlivable conditions, the city of New York passed a law in 1870 known as the "Tenement House Act" which required each bedroom to have a window, and set standards for ventilation, light and sanitation.
Despite these efforts, many immigrants continued to live in poor and overcrowded conditions, as the supply of affordable housing did not keep pace with the growing number of immigrants arriving to the cities.
The "dumbbell tenement" was a type of apartment building that was built in response to the Tenement House Act of 1870 in New York City.
The design, which was created by architect James Ware, was intended to provide more light and ventilation to the apartments than traditional tenements, but it was also a way for landlords to comply with the law in the most economical way possible.
Due to the overcrowding and poor living conditions in these tenements, they continue to promote the spread of deadly diseases, such as cholera, typhoid, and tuberculosis.
Many of these diseases were spread through contaminated water and poor sanitation, which were major issues in the overcrowded slums and tenements of the time.
Muckrakers
To bring attention to the plight of the poor and the dire living conditions in urban areas, a group of journalists and reformers known as "muckrakers" emerged.
These muckrakers wrote articles, books, and took photographs to expose the realities of life in the slums and tenements, and to urge Americans to focus on urban reform.
One of the most prominent muckrakers was Jacob Riis, who wrote "How the Other Half Lives," a photo essay of the poor and tenement conditions.
The book was published in 1890 and it was a very powerful and influential publication that used photographs and text to document the living conditions of immigrants and the poor in New York City's tenements.
Riis's book was instrumental in bringing attention to the need for urban reform.
Another notable muckraker was Lewis Hine, who took photographs of immigrants and working-class people in cities across the United States, with a focus on child labor.
He also wrote articles and books to expose the poor working conditions, and the negative impact it had on children.
Hine's photographs were an important tool in the fight for social reform and helped to bring about important changes in labor laws.
The efforts of these muckrakers and other urban reformers helped to raise awareness of the issues facing the poor and working-class people in urban areas and played an important role in bringing about changes in housing, labor, and social welfare policies.
Nativists
During the Gilded Age, a significant number of immigrants came to the United States seeking better economic opportunities. However, the rapid influx of immigrants led to growing concerns among some Americans, particularly those who identified as nativists.
Nativists were individuals who believed in the superiority of native-born Americans and often spoke out against unregulated immigration.
In response to these concerns, the United States government began to pass legislation to limit immigration. One of the first federal laws to restrict immigration was the Immigration Act of 1882.
This law placed a 50-cent tax on each immigrant, and excluded certain groups, such as convicts and those with certain diseases, from entering the country.
Another significant piece of legislation was the Chinese Exclusion Act of 1882.
This law effectively halted Chinese immigration to the United States for over 60 years.
The act was passed as a reaction to the growing number of Chinese immigrants who had come to the United States to work on the transcontinental railroad and in the mines during the late 19th century.
Nativists and labor groups had lobbied for the law, arguing that the Chinese immigrants were taking jobs away from native-born Americans.
These laws, along with others that followed, such as the National Origins Act of 1924, significantly limited the number of immigrants who were able to enter the United States during this period.
The legislation reflected the growing concern among some Americans about the effects of immigration on the country's economy and society.
6.10: Development of the Middle Class
Rapid industrialization and economic growth led to the development of the middle class.
the middle class was mainly composed of white-collar workers, small business owners, and professionals who were able to acquire new consumer goods and services through their increased purchasing power.
The rise of this middle class also led to increased social mobility and the emergence of a new leisure class, who were able to afford new forms of entertainment such as professional sports and vaudeville shows. This period also saw the rise of new technologies, such as the telephone and electric lighting, which further improved the standard of living for the middle class.
Impact of Income on Urban Development
Higher-income people remained near the business district of modern cities and lower-income people lived in outlying areas.
The wealthy and middle class migrated to the “healthier” suburbs to escape the problems of the cities.
Consumer Culture
The rise of the middle class led to the emergence of a consumer culture, as people started to have more disposable income to spend on goods and services.
This new consumer culture was fueled by the growth of department stores, mail-order catalogs, and new forms of advertising, which made it easier for people to purchase new consumer goods.
Additionally, new technologies such as the telephone and electric lighting also contributed to the consumer culture as they made it easier for people to communicate and shop for goods.
This period also saw the rise of new forms of entertainment, such as professional sports and vaudeville shows, which further added to the consumer culture.
These changes had a significant impact on American society, as people were able to buy new goods and experiences, and enjoy a higher standard of living.
Leisure Time
The growth of leisure time, especially for the expanding middle class, became a big business in the late 19th century. In addition to higher incomes, other factors also promoted the growth of leisure-time activities
a gradual reduction in the hours people worked
improved transportation
promotional billboards and advertising
the decline of restrictive Puritan & Victorian values that discouraged “wasting” time on play
As people had more disposable income, they were able to afford new forms of entertainment and activities, such as professional sports, vaudeville shows, and amusement parks.
Additionally, the rise of new technologies such as the telephone and electric lighting allowed people to spend more time on leisure activities, as they were able to communicate and travel more easily.
The rise of leisure time also led to the development of new forms of leisure activities, such as traveling, reading, and participating in hobbies.
This period also saw the rise of new forms of social clubs, such as fraternal organizations, which provided people with opportunities to socialize and engage in leisure activities.
This period also saw the rise of a new leisure class, who were able to afford new forms of entertainment and travel, this leisure class had a significant impact on American society as it led to new forms of consumption and ways of life.
Gospel of Wealth
The "Gospel of Wealth" is a term used to describe the belief held by some wealthy individuals during the Gilded Age (1865-1898) that they had a moral obligation to use their wealth for the greater good.
This belief was popularized by Andrew Carnegie, a wealthy industrialist and philanthropist, who wrote an influential essay in 1889 called "The Gospel of Wealth."
In this essay, Carnegie argued that the rich had a duty to use their wealth to benefit society and help the less fortunate, rather than simply hoarding their wealth.
Carnegie believed that the wealthy had a duty to use their wealth to create a more just and equitable society, and that they should use their wealth to support charitable causes and organizations.
He advocated for the establishment of foundations and trusts that would provide long-term funding for charitable causes.
The Gospel of Wealth also emphasized on the importance of "scientific charity" which focused on addressing the root causes of poverty, instead of just providing temporary relief.
It also advocated for the establishment of charitable trusts that would provide long-term funding for charitable causes and organizations.
The Gospel of Wealth had a significant impact on American philanthropy during the Gilded Age and beyond, inspiring many wealthy individuals to use their wealth for the greater good. It also helped to shift the perception of wealthy people from the stereotype of the "robber baron" to that of a responsible, socially-conscious member of society.
Women’s Roles in the Workforce
During the Gilded Age, opportunities for women in managerial positions were limited. Women were largely excluded from formal education and professional training, and societal norms and discrimination made it difficult for them to enter and advance in male-dominated fields.
However, there were some women who managed to succeed in business and industry, often by starting their own companies or by working their way up the ranks in traditionally female-dominated fields such as textiles and retail.
During the Gilded Age, a few examples of women who were successful in managerial positions include:
Madam C. J. Walker: She was an African American entrepreneur, philanthropist, and political and social activist. She is recorded as the first female self-made millionaire in America. She created a line of hair care products for African American women and built a national sales network.
Lillian Dickson: She was a businesswoman who managed her family's wholesale grocery business, Dickson, Deuel & Co., which was one of the largest wholesale grocery firms in the United States during the Gilded Age. She served as the company's president and treasurer.
Carrie Catt: was an American women's suffrage leader who campaigned for the Nineteenth Amendment to the United States Constitution, which gave women the right to vote in 1920. She was the founder of the League of Women Voters and the National Woman's Party, and served as the president of the National American Woman Suffrage Association.
Mary Elizabeth Garrett: She was an American philanthropist and women's suffrage supporter, who was a driving force behind the founding of Bryn Mawr College in 1885 and Johns Hopkins Medical School in 1893.
These examples were a few of the women who managed to succeed in a time when opportunities for women were limited, and their success laid the foundation for future generations of women in leadership positions.
The number of women working in clerical jobs also began to increase. This was partly due to the growth of the service sector and the rise of new forms of business and commerce, which created new job opportunities for women. Additionally, the increasing availability of education and improved social mobility also contributed to the growing number of women working in clerical jobs.
Clerical Jobs
Women who took up clerical jobs during this period were typically single and came from middle-class backgrounds.
They were mostly working as stenographers, typists, and bookkeepers.
They were often paid less than men for doing the same work and were not considered for promotion as easily.
They were also subjected to discrimination and harassment in their workplaces.
This period also saw the rise of the "New Woman" movement, which advocated for greater opportunities and rights for women in the workplace and society.
This movement helped to challenge traditional gender roles and stereotypes and paved the way for greater equality for women in the workplace.
Overall, the Gilded Age saw a growing number of women working in clerical jobs, as new job opportunities and improved social mobility allowed more women to enter the workforce.
However, women still faced significant barriers in the workplace, including discrimination and harassment, and were paid less than men for doing the same work.
6.11: Reform in the Gilded Age
During the Gilded Age, the United States underwent rapid industrialization and urbanization, which led to significant economic growth and prosperity. However, this growth was not evenly distributed, and many Americans, particularly those in urban areas, struggled with poverty and inequality. The gap between the wealthy and the working class widened, and many Americans felt left behind by the economic boom.
In addition to these economic issues, the Gilded Age was also marked by significant political problems, including corruption and political machines. Many politicians and business leaders were accused of using their power and influence for personal gain. This led to a loss of faith in the government and a growing sense that the system was rigged against the average citizen.
The Gilded Age also saw a rise in social reform movements, as many Americans began to call for changes to address the problems of poverty, inequality, and corruption. These movements, which included the Progressive Movement, advocated for a more active role for government in addressing social and economic issues, and led to the passage of important reforms such as the Sherman Antitrust Act and the Pure Food and Drug Act. Overall, the Gilded Age was a period of great change, growth and challenges.
Muckrakers
The muckrakers were journalists and writers who exposed the social and economic problems of the Gilded Age. They wrote about issues such as poverty, corruption, and the exploitation of workers, and helped to bring these problems to the public's attention. Their work contributed to a growing call for reform in the late 19th and early 20th centuries.
The problems of the Gilded Age led to new political debates over issues such as citizenship, economic corruption, and civil rights. Many believed that it was the responsibility of the federal government to step in and regulate these issues. This led to a number of reforms, including the establishment of regulatory agencies, such as the Federal Reserve and the Federal Trade Commission, and the passage of laws such as the Sherman Anti-Trust Act, which aimed to curb the power of monopolies.
Many of the debates and reforms that took place during the Gilded Age continue to shape American politics and society today. Many of the issues that were addressed such as poverty, inequality, and corruption remain a concern for many Americans.
Henry George: publishes a provocative book in 1879 that got readers to look more critically at the effects of laissez-faire economics, calling attention to the alarming inequalities in wealth caused by industrialization
Edward Bellamy: an American author and socialist whose book "Looking Backward" was a best-seller in the late 19th century. The book described a utopian society in which the government was responsible for ensuring the well-being of all citizens.
Both encouraged a shift in American public opinion away from laissez-faire and toward greater government regulation
Religion & Society
All religions adopted to the stresses and challenges of modern urban living. Roman Catholicism grew due to the influx of new European immigrants.
Cardinal James Gibbons was a Catholic priest and bishop who was a prominent figure in the late 19th and early 20th centuries. He was a leading advocate for the rights of immigrants and the working class and was known for his progressive views on social issues.
Dwight Moody was a Christian evangelist and publisher who was active in the late 19th century. He was a leading figure in the religious revival known as the "Third Great Awakening" and was known for his powerful preaching and his emphasis on personal salvation.
Salvation Army: a Christian charity organization that was established in the late 19th century. It provides services such as housing, education, and job training to those in need.
Social Gospel
The Social Gospel movement was a religious and social movement that emerged in the late 19th century.
It advocated for Christians to actively work to improve the lives of the poor and marginalized in society.
The Social Gospel movement emphasized the importance of applying Christian principles to social problems such as poverty, inequality, and injustice.
As a result of the Social Gospel movement, many charitable organizations were established to help the urban poor. These include the Salvation Army and YMCA. These organizations helped to provide services such as housing, education, and job training to those in need.
The Social Gospel movement also had a significant impact on the arts and literature of the time.
Many artists and authors began to use their platform to call for social reform and to raise awareness about the plight of the poor.
They used their work to expose the social and economic injustices of the Gilded Age and to inspire change.
The movement had a lasting effect on the American society, still today many non-profit organizations and charities are based on the Social Gospel principles.
The call for social justice also influenced the government to pass laws and regulations to protect the rights of the poor and marginalized groups, and also influenced the creation of many welfare programs.
Women’s Suffrage
The women's suffrage movement was one of the major reform movements of the Gilded Age and the Progressive Era. The National American Woman Suffrage Association (NAWSA) was one of the leading organizations in the movement, which aimed to secure the right to vote for women.
Women of this era faced limited educational and career opportunities, and even fewer opportunities in politics. Despite these challenges, women were actively involved in a wide range of reform efforts, not just those related to gender equality.
Women's suffrage movement was a long struggle that lasted for several decades. The women's suffrage activists were met with resistance from many quarters, including from some of their own male counterparts. Women of different backgrounds, ethnicity and social status joined together to fight for the right to vote and to be recognized as equal citizens.
In 1920, the 19th Amendment to the US Constitution was ratified, granting women the right to vote. This was a significant achievement for the suffragists and for women's rights in general.
The right to vote gave women a voice in the political process and helped to pave the way for greater political and economic opportunities for women in the future.
The suffrage movement also had a broader impact on American society as it helped to bring attention to the broader issue of gender inequality and it laid the foundation for the modern feminist movement.
NAWSA: The National American Woman Suffrage Association (NAWSA) was one of the leading organizations in the movement to secure the right to vote for women in the late 19th and early 20th centuries.
Minor v. Happersett: Minor v. Happersett was a U.S. Supreme Court case that was decided in 1875.
The case dealt with the question of whether or not women had the right to vote under the 14th Amendment of the U.S. Constitution. The court ruled that women did not have the right to vote.
Temperance Movement
Excessive drinking of alcohol by male factory workers was one cause of poverty for immigrant and working-class families. The Women’s Christian Temperance Union (WCTU) was formed in 1874 and advocated total abstinence from alcohol.
The Anti-Saloon League (ASL) was a powerful political organization in the United States that advocated for the prohibition of alcohol.
The organization was founded in 1893 and quickly grew in membership and influence. It became one of the most powerful lobbies in the country and played a major role in the passage of the 18th Amendment to the U.S. Constitution, which established Prohibition in 1920.
The ASL worked to elect politicians who supported prohibition and put pressure on those who did not.
It also sought to educate the public about the dangers of alcohol and the benefits of a dry society.
The organization was active until the repeal of Prohibition in 1933.
WCTU: The Women's Christian Temperance Union (WCTU) was a social reform organization that was founded in the late 19th century. It advocated for the prohibition of alcohol and was also active in other social reform causes such as women's suffrage and education.
Social Workers
Settlement houses were community centers established in urban areas to provide services such as education, job training, and medical care to the poor. They were often run by social reformers and were an important part of the progressive movement of the late 19th and early 20th centuries.
Literature & Arts
New Realism wanted to express an authentic American style. Many popular works of literature of the time broke the tradition of depicting idealistic heroes and instead opted to depict realistic life aspects and characters
Mark Twain - The Adventures of Huckleberry Finn (1884): revealed the greed, violence, and racism in American society
Naturalism focused on how emotions and experience shaped human experience
Jack London
The Call of the Wild: portrayed the conflict between nature and civilization
Stephen Crane
Maggie: A Girl of the Streets (1893): told how a brutal urban environment could destroy the lives of young people
Painting
Began to place new emphasis on realism
Ashcan School: The Ashcan School was a group of American realist artists active in the early 20th century.
They focused on depicting the everyday lives of urban Americans, particularly those of the working class and immigrant populations.
Their work was characterized by a gritty, realistic style and a focus on social issues.
6.12: Role of Government in the Gilded Age
During the Gilded Age (approximately 1870s-1890s), the role of government in the US economy was marked by both continuities and changes.
One continuity was the government's role in promoting economic growth through policies such as the construction of infrastructure, such as railroads, and the acquisition of new territories.
The government also played a role in protecting American industry through tariffs on imported goods.
Another continuity was the government's role in regulating business through laws such as the Sherman Antitrust Act of 1890, which aimed to prevent monopolies and promote competition.
However, there were also changes in the government's role during the Gilded Age.
One change was the limited role of the government in addressing social and economic issues, such as poverty and labor rights.
The government also largely laissez-faire, or hands-off approach to the economy, believing that the market would regulate itself.
Additionally, during this period, the government's role in certain industries, such as railroads, changed as well.
The government initially supported the expansion of railroads through land grants and other incentives, but later sought to regulate the industry through laws such as the Interstate Commerce Act of 1887, which aimed to prevent discrimination and unjust rates.
Context
During the Gilded Age, the dominant economic ideology was laissez-faire, which held that the government should have a minimal role in the economy and that the market should be left to regulate itself.
This idea was closely tied to Social Darwinism, which held that competition in the marketplace was a natural and beneficial process that would lead to the survival of the fittest businesses.
Many people during this period opposed government intervention in the economy and believed that businesses and the economy would recover on their own without government interference.
However, the government did take certain actions to promote economic growth and development, such as granting land to railroad companies, implementing high tariffs, and following hard money guidelines.
These actions were seen as a way to support American businesses and promote economic growth, while still adhering to the laissez-faire ideology.
Federal Land Grants
The federal government provided significant subsidies to railroad companies during the Gilded Age, including granting large amounts of land to build railroads.
The government believed that these subsidies would promote economic growth and development, by increasing the value of government land and providing rates for carrying the mail and transporting troops.
However, these subsidies had negative consequences as well.
The large land grants prompted hasty and poor construction, with many railroads being built without proper planning and engineering.
Additionally, the land grants led to significant corruption, as insiders used construction companies to bribe government officials and pocket profits.
This led to a significant loss of government revenue and public trust in government. The land grant also led to the displacement of native American tribes and damage to the environment.
Interstate Commerce Act of 1887
Prior to the passage of the Interstate Commerce Act, many states had passed laws to regulate railroad rates, but these laws ran into legal problems.
The Supreme Court case of Wabash v Illinois (1886) declared that individual states could not regulate commerce, as it was a power reserved for the federal government.
As a result of this decision, the federal government passed the Interstate Commerce Act of 1887.
The act aimed to address issues of discrimination and unjust rates by railroad companies.
It required that railroad rates be "reasonable and just" and established the first federal regulatory agency, the Interstate Commerce Commission (ICC), to enforce the act and investigate complaints.
The ICC was given the power to investigate rates and practices of common carriers and to order changes if they were found to be unjust or unreasonable.
The Act helped to prevent discrimination against small shippers and farmers and to ensure that rates were fair.
However, the ICC was not very effective as the railroad companies continued to use their influence over the commission. The act was amended several times to strengthen the ICC's power, but it was not until the Hepburn Act of 1906 that the ICC was given the power to set maximum rates.
Antitrust Movement
The trusts, or large monopolies, came under widespread scrutiny and attack in the late 19th century.
Many middle-class citizens feared the trusts' unchecked power and believed they were a threat to competition and economic opportunity.
Urban elites, or the old wealth, also resented the increasing influence and wealth of the new rich who controlled the trusts.
In response to these concerns, reformers pressured Congress to pass the Sherman Antitrust Act of 1890.
The act prohibited any contract, combination, or conspiracy in restraint of trade or commerce among the several states or with foreign nations.
The act was intended to break up monopolies and promote competition, but it was not initially enforced effectively.
In the United States v E. C. Knight Co. in 1895, the Supreme Court ruled that the Sherman Antitrust Act could only be applied to commerce and not manufacturing.
This ruling severely limited the government's ability to use the act to break up monopolies, and it was not until later court cases, such as Standard Oil Co. of New Jersey v. United States (1911) that the government successfully used the Sherman Act to break up trusts.
Civil Service Reform
The Pendleton Act of 1881 was a federal law that established the Civil Service Commission and implemented a system of merit-based appointments for federal government jobs.
It aimed to reduce the widespread practice of political patronage and ensure that government positions were filled based on qualifications and ability, rather than political connections.
Initially, the act only applied to a small percentage of federal jobs, but over time it was expanded to cover the majority of positions in the federal government.
Easy money vs Hard Money
During the late 19th century, there were debates in the United States about the appropriate monetary policy to support economic growth.
The advocates of "easy" money, such as farmers and startup businesses, argued that an increase in the money supply would make it easier for them to borrow money at lower interest rates and pay off their loans with inflated money.
On the other hand, "hard money" supporters, such as bankers, creditors, investors, and established businesses, believed that a currency backed by gold stored in government banks would hold its value in times of inflation.
They also believed that as the population grew, each dollar would gain value. Supporters of hard money were correct as the value of the dollar increased by nearly 300 percent between 1865 and 1895.
The Panic of 1873 was blamed on the gold standard for restricting the money supply and causing economic depression.
Greenback Party
The Greenback Party, which emerged in the United States in the late 19th century, opposed the shift from paper money to a specie-based monetary system, as it believed that this would lead to a reacquisition of power by privately owned banks and corporations to define the value of products and labor.
They believed that government control of the monetary system would allow for more currency in circulation, as it had during the Civil War.
The party gained 14 seats in Congress and was popular, but the Specie Resumption Act of 1875, passed by Congress, which withdrew all greenbacks from circulation, led to the decline of the party. The economic turmoil of the 1870s also contributed to the decline of the party, by the end of the decade, the Greenback Party died out.
Demand for Silver Money
The "Crime of 1873" refers to the decision made by Congress to stop coining silver, which was seen by some as a blow to the expansion of the money supply and especially to those who had invested in silver mining.
The discovery of new silver mines in Nevada, as well as pressure from farmers, debtors, and miners, led to renewed demands for the unlimited coinage of silver.
In response, Congress passed the Bland-Allison Act of 1878, which allowed for the limited coinage of silver between $2 million and $4 million per month. However, this did not satisfy those who were calling for unlimited coinage and the debate over the use of silver as a monetary standard would continue in the following years.
Tariff Issue
During the Civil War, Congress passed protective tariffs to protect the US industry and fund the Union government. These tariffs raised the prices of imported goods, making them less competitive with domestically produced goods. However, after the war, both Southern and Northern Democrats opposed these tariffs, arguing that they raised prices for consumers. In response, other countries also raised their tariffs, which led to a decrease in international sales for American products, particularly crops. This resulted in lower farm profits and a decline in the farming industry. The tariffs also led to economic tension between the different regions of the country, as the North, which had a more industrialized economy, generally supported the tariffs, while the South, which was more agriculturally based, opposed them.
6.13: Politics in the Gilded Age
For a large part of the period, the federal government seems to be M.I.A.
Political paralysis is a term frequently associated with the era as it was largely marked with stalemates, incompetence, and corruption. Still, there are some things worth mentioning.
Republicans
In the North, Republican politicians kept memories of the Civil War alive during the Gilded Age by figuratively waving the “bloody shirt” in every campaign and reminding the millions of veterans of the Union army that their wounds had been caused by southern Democrats and that Abraham Lincoln had been murdered by a Democrat.
They kept the votes of reformers and African Americans. The core of their strength came from business men and the middle-class, Anglo-Saxon Protestants, many of who supported temperance or prohibition.
Democrats
After 1877, the Democrats could count on winning every election in the former state of the Confederacy. The solid South was indeed solidly Democrat and would stay that way until the mid-20th Century.
In the North, Democratic strength came from big city political machines and immigrant vote.
Democrats were often Catholics, Lutherans, and Jews who objected to temperance and prohibition crusades conducted by Protestant.
Patronage: Stalwarts, Mugwumps, & Halfbreeds
Since neither party had an active legislative agenda, politics in this era was chiefly a game of winning elections, holding office and providing government jobs to the party faithful.
In New York, Republican Senator Roscoe Conkling became a powerful leader of his party by dictating who in the Republican ranks would be appointed to lucrative jobs in the New York Customs House. Conkling and his supporters were known as the Stalwarts, while their rivals for patronage were the Halfbreeds, led by James G. Blaine.
Republicans who did not play the patronage game were ridiculed as the Mugawumps for sitting on the fence – their “mugs” on one side of the fence and “wumps” on the other.
Presidential Politics
Rutherford B. Hayes | Hayes' most significant act was to end Reconstruction by withdrawing the last federal troops from the South. |
|---|---|
James Garfield | Hordes of office seekers wanted government jobs and constantly cornered the president. In July, on his way to vacation in New England, Garfield was shot while walking toward the train by Charles J. Guiteau, a deranged lawyer and disappointed office seeker. |
Chester A. Arthur | Pendleton Act, reforming the Civil Service was created under him. He also approved the development of a modern American navy and began to question the high protective tariffs |
Grover Cleveland | He implemented the new civil service system and vetoed hundreds of private pension bills for those falsely claiming to have served or been injured in the Civil War. He worked long into the night reviewing veterans pensions and civil service appointments. He forced railroad, lumber and cattle companies to surrender millions of acres of fraudulently occupied public land. He signed into the Interstate Commerce Act of 1887, the federal government's first effort to regulate business and the Dawes Act, which reformers hoped would benefit American Indians. |
Pendleton Civil Service Act
In 1883, Congress passed the Pendleton Act to reform the civil service.
It created the bipartisan Civil Service Commission to administer competitive examinations and appoint officeholders on the basis of merit.
Initially it affected only 14,000 of the 100,000 government jobs, but it would expand over time.
Greenback Party
Paper money not backed by specie (gold or silver) had been issued by the federal government in the 1860s as an emergency measure for financing the Civil War. Northern farmers who received high prices during the war, prospered from the use of greenbacks. On the other hand, creditors and investors attacked the use of unbacked paper money as a violation of natural law. Supporters of paper money formed a new political party, the Greenback party.
Silver
In addition to removing greenbacks, Congress also stopped the coining of silver. The silver discoveries in Nevada revived demands for the use of silver to expand the money supply. A compromise law, the Bland-Allison Act was passed over Hayes’s veto.
It allowed a limited coinage of $2-4 million in silver each month at the standard silver-to-gold ratio of 16 to 1.
Famers, debtors, and western miners were not satisfied and continued to press for the unlimited coinage of silver.
Harrison and the Billion Dollar Congress
For the first two years of Benjamin Harrison’s presidency, Republicans controlled the presidency and both houses of Congress. The new Congress was the most active in years, passing the first billion-dollar budget in US history. It enacted the following:
McKinley Tariff Act was passed and raised tariff duties about 4% (higher than ever before)
Sherman Antitrust Act was also passed and was the first federal attempt to regulate big business. This was an attempt to deal with the problem of trusts, declaring them illegal. Penalties for violation were stiff, including fines and imprisonment and the dissolution of guilty trusts.
Sherman Silver Purchase Act with the discovery of the great bonanza mines in Nevada, American silver production quadrupled between 1870 and 1890, flooding the world market and lowering the price of silver. As a result, many nations demonetized silver in favor for gold, which was a more scarce metal.
Populist Party
The farmers alliance movement provided the foundation of a new policy party – the People’s, or Populist, party. Delegates from different states met in Omaha, Nebraska in 1892 to draft a political platform and nominate candidates for president and vice president for the new party. The Omaha Platform (basically the earlier Ocala demands added on to) called for both political and economic reforms.
The direct popular election of US senators (instead of being picked by the state legislatures)
The use of initiatives and referendums, procedures that allowed citizens to vote directly on proposed law.
Unlimited coinage of silver to increase the money supply
Graduated income tax (the greater a person’s income , the higher the percentage of the tax on his or her income)
Public ownership of railroads by the US government
Telegraph and telephone systems owned and operated by the government
Loans and federal warehouses for farmer to enable them to stabilize prices for their crops
8 hour workday for industrial workers.
By 1896, the Populists had considerable political support and chose William Jennings Bryan (made famous for his “Cross of Gold” speech 👑 attacking the gold standard) as a presidential candidate. Unfortunately, the Democrats also chose Bryan and began adopting many key issues of the populist party. With the votes split between these two parties, McKinley (the Republican candidate) won the election and marked the end of the Populist Era.
Panic of 1893
In February of 1893, panic suddenly hit the New Stock Market. In one day, investors dumped on million shares of a leading company (the Philadelphia and Reading Railroad) and it went bankrupt People were frightened and hurriedly sold off their stocks and assets to buy gold. It depleted the gold reserve of the US Treasury. By March, the reserve was near the $100 million mark, which was the amount the government committed at to maintain the gold standard. By April, it fell below $100 million. Quickly many bad things happened:
The banks began to cut back on loans.
Businesses were unable to get capital and failed at a rate of two dozen a day during the month of May.
In August, the worst month, factories and mines across the country shut down. Economics estimated unemployment at 2 million or 15% of the labor force.
15,000 businesses and 600 banks closed in 1893.
1894 was even worse. By the midyear, unemployment was at 3 million. 1 out of 5 workers was unemployed.
Coxey’s Army
Some of the unemployed wandered across the country in small groups or small armies. “General” Jacob Coxey led an “army” of 3000 people from Ohio to Washington, D.C.
He wanted to put the nation’s jobless to work building roads.
He wanted Congress to pass the Coxey Good Roads Bill, which would authorize the printing of $500 million in paper money to finance road construction
Coxley made it to the foot of the Capitol where the police were on him. He and a companion were clubbed and then arrested for trespassing. He was then sentenced to 20 days in jail. The armies melted away but their discontent didn’t.
Political Machines, Boss Tweed, and Tammany Hall
In urban areas, poor immigrants often turned to political machines⚙ for aid. Since the federal government did fairly little for these groups, many of them came to rely on political machines. Political machines often brought modern services to the city, including a crude form of welfare for urban newcomers.
They would find jobs and apartments for recently arrived immigrants and show up at a poor family’s door with baskets of food during hard times.
They ran picnics for slum children on hot summer days and contributed to hospitals, orphanages and dozens of worthy neighborhood causes.
Although political machines were pretty corrupt in their dealings (as seen through Boss Tweed and his Tammany Hall Ring 💰), immigrants often supported them for their ability and willingness to provide direct aid in exchange for votes.
The New York County Courthouse (The house that Tweed built) was his masterpiece. It was in downtown Manhattan and was a three-story structure. It was designed to cost $250,000 but the bills ran higher. Andrew Garvey charged $500,000 for plasterwork and then $1 million to repair the same work. The total bill was $13 million.