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Period 6 (1865-1898)

Key Concept 6.1 —Technological advances, large-scale production methods, and the opening of new markets encouraged the rise of industrial capitalism in the United States.

I. Large-scale industrial production — accompanied by massive technological change, expanding international communication networks, and pro-growth government policies — generated rapid economic development and business consolidation.  

  • Dams and irrigation saved many western farms who endured harsh environmental conditions

  • With increased farm equipment, small, marginal farms were often driven out of business

  • Increased production decreased the prices for wheat, cotton, and other crops - caused deflation

  • Railroads created a national market for goods and created time zones

    • Government gave railroad companies huge subsidies in the form of loans and land grants

  • United States Steel became the largest enterprise in the world

    • Steel more durable than iron

  • Standard oil kept prices low for consumers and inspired the organization of trusts

  • Telegraph and global communication internationalized markets and prices for basic commodities

  • Edison’s invention of the electric lightbulb allowed for lighting cities, operating electric cars, subways, and machinery

  • Packaged food, large department stores, and advertising created a consumer culture

  • Overall, standard of living increased but with sharp economic divisions among classes

II. A variety of perspectives on the economy and labor developed during a time of financial panics and downturns.

  • Mining boom created a crisis over the value of gold and silver based currencies and left environmental damage

  • Some Southerners promoted a self-sufficient economy built on modern capitalism 

    • Henry Grady coined the term “New South” and argued for economic diversity and laissez-faire capitalism

  • Northern finance dominated the Southern economy - large profits from the new industries went to northern banks and financiers

  • Industrial workers in the South earned less money and worked longer hours than any other region

  • Sharecropping and tenant farming in the South - farmers tied to the land by their debut to the landowner

  • Railroad loans led to hasty construction and corruption in the federal government

  • 1893 - railroads went bankrupt and bankers moved to consolidate railroads

    • Consolidation made railroads more efficient

  • Middle class fear trusts unchecked power - reformers moved Congress to pass the Sherman Antitrust Act which prohibited contract in the form of trust

  • Laissez-Faire Capitalism - government no involved in economy

  • Social Darwinism - belief that Darwin’s ideas of natural selection and survival of the fittest should be applied to business

  • Gospel of Wealth - justifies gaining wealth and civic philanthropy efforts through religion (Rockefeller)

  • Management used strategies to defeat unions and put down strikes

  • Great Railroad Strike - railroad companies cut wage and a strike spread across 11 states that was eventually put down by federal troops

  • National Labor Union - first attempt to organize all workers

    • Social program for equal rights for women and blacks, monetary reform, and worker cooperatives

    • Victory was an 8 hour day

  • Knights of Labor lost popularity after the anarchist bombing at Haymarket square

  • American Federation of Labor focused on higher wages and improved working conditions

  • Homestead Strike - workers wages cut and lockout

    • Set back union movement in the steel industry

  • Pullman Strike - Supreme Court allowed court injections for the breaking up of unions

III. New systems of production and transportation enabled consolidation within agriculture, which, along with periods of instability, spurred a variety of responses from farmers.  

  • National Grange Movement - active in economics and politics to defend members against middlemen, trusts, and railroads

    • Established cooperatives or regulated rates charged by railroads and elevators

  • Wabash v. Illinois - individual states could not regulate interstate commerce

  • Farmers alliances - goal of economic and political action

  • Many reform ideas of the Grange and Farmers alliances would become part of the Populist movement


Key Concept 6.2 — The migrations that accompanied industrialization transformed both urban and rural areas of the United States and caused dramatic social and cultural change.

I. International and internal migrations increased both urban and rural populations, but gender, racial, ethnic, religious, and socioeconomic inequalities abounded, inspiring some reformers to attempt to address these inequities. 

  • Plessy v. Ferguson - upheld “separate but equal accommodations” - Louisiana’s segregation law did not violate the 14th Amendment

    • Supported a wave of segregation laws

  • Various political and legal devices were invented to prevent southern black people from voting (literacy tests, poll taxes, and political primaries for whites only)

  • “New Immigrants” - from Greece, Italy, Russia - didn’t speak english, poor, & not accustomed to democracy 

    • Mostly settled in ethnic enclaves in large cities for job opportunities 

  • Contract Labor Laws of 1885 - restricted temporary workers to protect American workers 

    • Literacy test for immigrants passed in 1917

    • Efforts to restrict immigration were supported by labor unions, a nativist society, and social darwinists

  • Influx of migrants from rural areas to cities for economic opportunities (from farming to commercial jobs)

  • Mass transportation segregated urban workers by income

  • Overcrowding in cities and filthy tenements helped spread disease

  • Ethnic neighborhoods - each group could maintain its own language, culture, church, and social club

II. Larger numbers of migrants moved to the West in search of land and economic opportunity, frequently provoking competition and violent conflict.

  • As mines developed, skilled immigrant miners from Europe, Latin America, and China were employed

  • Hostility to foreigners resulted in the Miner’s tax ($20 a month to foreign born miners)

  • Chinese Exclusion Act of 1882 - restricted immigration on the basis of race and nationality 

  • Rush to acquire the West’s natural resources damaged the environment

  • Immigrantion to the West was caused by a series of gold and silver rushes in Colorado, Nevada, Idaho, Montana, Arizona, and South Dakota

  • Rich strikes created boomtowns - these usually became ghost towns within a few years after precious metals ran out

  • Homestead Act - encouraged farming in the West by offering 160 acres of public free land to a family who settled on it for five years

  • Reservation Policy - federal government began to assign the Plains tribes reservations with definite boundaries

    • Most Plains tribes refused to restrict their movements to the reservations

    • This led to conflicts with American settlers and violent conflict with US troops

  • Indian Appropriation Act of 1871 - ended recognition of tribes as independent nations and nullified previous treaties made with the tribes

  • Ghost dance - last effort by Natives to resist government controls 

  • Battle/ Massacre of Wounded Knee - more the 200 Natives killed by US army - marked end of the Indian Wars 

  • Dawes Act of 1887 - break up tribal organizations to assimilate Natives into American culture

    • Former reservation land was sold to white settlers

    • Disease and poverty reduced Native population to 200,000 people

Key Concept 6.3- The “Gilded Age” witnessed new cultural and intellectual movements in tandem with political debates over economic and social policies.

I. New cultural and intellectual movements both buttressed and challenged the social order of the Gilded Age.  

  • Political parties active campaigns & high voter turnout resulting from party loyalty from region, religious, or ethnic ties of voters

  • Idea of a suburban house (American idea of comfortable living) was created by landscape architect Frederick Law Olmsted

  • Increasing disease, crime, waste, and pollution in cities inspired reformers of the need for water purification, sewerage systems, waste disposal, steer lighting, police departments, and zoning laws

    • 1890s - “City Beautiful” movement - public parks, cultural attractions

  • Settlement houses - reformers hoped to experience and relieve effects of poverty by providing social services for peoples in the neighborhood

    • Hull House - started by Jane Addams - taught English, early childhood education, industrial arts, and established music schools

  • Social gospel - importance of applying christian principles to social problems

  • Family size dropped - kids are an economic liability

  • Increased children in school and tax-supported public high schools

  • Du Bois. - leading black intellectual - advocated for equality for blacks integrated schools, equal access to higher education

  • Advance of social sciences and changes in universities provided a boost to progressive legislation and liberal reform in the 20th century

  • Reduction of hours worked, improved transportation, advertising, and decline of restrictive Puritan values promoted the growth of leisure activities

    • Growth of collegiate and professional spectator sports

II. Dramatic social changes in the period inspired political debates over citizenship, corruption, and the proper relationship between business and government. 

  • Republicans supported pro-business economics of high protective tariffs

  • Democrats argued for state’s rights and limiting powers for the federal government 

  • Hayes vetoed efforts to restrict Chinese immigrants

  • Pendleton Act of 1881 - set up Civil Service Commission and created a system by which applicant for classified federal jobs would be selected based on an examination

  • Debate issue: how much to expand the money supply

    • Debtors, farmers, and start-up businesses wanted “easy” money - could borrow money and pay off loans

    • Bankers, creditors, investors, and established businesses wanted “sound” money - currency backed by gold stored in government vaults - would hold value against inflation

  • Specie Resumption Act - withdrew all greenbacks from circulation (caused formation of Greenback party)

  • In 1890s, tariff provided more than half of federal revenue

  • Republican controlled presidency and congress enacted…

    • McKinley Tariff - raised tax on foreign products

    • Sherman Antitrust Act - outlawed “combinations in restraint of trade”

    • Sherman Silver Purchase Act of 1890 - increased the coinage of silver

  • Populist Party - wanted to do something about concentration of economic power in bankers and trusts

    • Increased in power of common voters through direct popular elections of senators and use of initiative and referendums (allowed citizens to vote directly on proposed laws)

    • Advocated unlimited coinage of silver, a graduated income tax, public ownership of railroads, telegraph/ telephone systems, loans and federal warehouses for farmers to stabilized prices for their crops

  • Panic of 1893 - stock market crash and bankruptcy