1.10 Urbanisation, Industrialisation, and the Rise of Corporations Flashcards
What was industrial development like in American in 1865?
It lagged behind European economies like Britain or Germany. But modern industrial capitalism had already transformed much of the North and East before 1861, and this process was accelerated by the demands of the North’s war economy during the Civil War.
What impact did the Civil War have on the economy?
Favourable economic conditions enabled rapid expansion of trade and industry.
What accelerated the process of urbanisation?
Industrialisation, mass immigration, and improvements in transportation.
How were towns and cities distributed in the country?
Most of the larger towns and cities were located in the region east of the Mississippi River and north of the Ohio River. Existing big cities grew bigger, while new big cities experienced explosive population growth.
What were the positives of urbanisation?
It created new markets, new business opportunities, and a vast, mobile workforce.
What materials did extractive industries provide?
coal, iron, copper, and oil
How did the oil industry develop?
From 1859, oil wells were developed in western Pennsylvania, spreading into other parts of the Appalachian Basin (including West Virginia and the western parts of New York State). By 1874 smaller oil companies were merging into larger ones, especially Standard Oil.
How did the Steel industry develop?
New techniques in the manufacturing of steel, such as rolling mills, were developed by the Bethlehem Iron and Steel Company from 1860. Production of steel was greatly increased by the demands of the Civil War and by the expansion of railroads.
How did refrigeration impact industry?
Improved technologies in refrigeration from 1867, including refrigerated ships and railway cars, assisted rapid commercial expansion for ice-making, breweries, and meat-packing
What are examples of businesses taking shape by the late 1870s?
Rockefeller’s Standard Oil, Carnegie’s US Steel, and Heinz’s canned foods empire.
How did the Panic of 1873 impact the economy and industry?
It slowed down the economy, leading to 5 years of recession, and many firms went bankrupt. However, the depression of the 1870s had the effect of weeding out less efficient businesses; it opened opportunities for enterprising businessmen to buy up failed companies and consolidate them.
What was the economy like by 1877?
Despite the slowdown of the 1873 Panic, the American economy was prepared for further expansion.
How did railroads grow between 1865 and 1893?
In 1865 there were 35,000 miles of track in the United States, almost all in the North and East. By 1893 there were almost 200,000, stretching over the continent
What were some problems with the railroads?
There was fierce competition between rival companies and a lot of wild financial speculation.
What role did railroads have in the role of towns and cities?
Where the railroads went, or did not go, was the making or breaking of big cities and small towns. The main reason why Chicago eventually oustripped St Louis as the main hub city of the Midwest was Chicago’s superior rail connections.
