Chapter 3: The Gilded Age and The Progressive Era 1870-1920 Flashcards
Progressive Movement
The main objectives of the Progressive movement were addressing problems caused by industrialization, urbanization, immigration, and political corruption.
Progressive reformers sought to regulate private industry, strengthen protections for workers and consumers, expose corruption in both government and big business, and generally improve society.
Capitalism
Is an economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state.
It was very strong and controversial during 19th century
Mass urbanisation
The rate at which people are moving from rural areas into urban areas is extremely high.
Factors of rapid industrialization
- labour supply
- Availability of raw materials - coal and iron ore
- Rapid population growth and availability of food
- Availability of land for factories, housing, food production,
- Expanding transport system
- Protective tarrifs
- Technological and bussiness innovation
- Availability of capital
- Supportive state legislators
Impact of the civil war
The north has created a very large economy that needed guns ammunition, clothing and transportation.
The economy had to adapt and deliver the amounts of goods required
Mass production could deliver these large quantities
Government had to raise money - tarrifs were raised to gain income
Population growth
Increase in population helped to provide the workforce needed for the industrial expansion
Population grew due to decline in death rate (especially among children) Becuase of improved living conditions - healthier diet - medical knowledge - better housing - cleaner water supplies - sewage disposal
Real wages
Is income expressed in terms of purchasing power as opposed to actual money received.
Real wages are wages adjusted for inflation, or, equivalently, wages in terms of the amount of goods and services that can be bought
Land availability
The louisiana Purchase and the lands taken from Mexico are large geographical areas gained by the US
The homestead Act of 1862 -
Allowed farmers to settle huge areas in the west.
Farmers productivity grew because of increasing mechanisation and the spread of greater knowledge about farming techniques
Ex. Threshing machine
Railroad expansion
Railroads are needed to transport
- raw materials
- cattle
- wheat
- corn
Transport prices were lowered
Competition lowered prices
Railways stimulated demand
To make railways they need steel which needs coal
The land that wasn’t needed by the railroads was sold
Engineers and architects gauned contracts and profits from the railway expnsion
George Pullman
He developed special new train carraiges so that wealthy passengers could travel in luxury
The availability of raw materials
Coal provided warmth to growing city population
New merchant ships and railroads were made out of iron
South could produce cotton
Forests of the West and North coild provide timber and housing for railway sleepers
Carnegie and United States Steel
Andrew Carnegie (1835-1919)
- Scottish immigrant
- dominated the production of steel in the country
- saw a new way of making steel called the Bessemer process
- cut prices by 80%
- improved quality
- improved speed of production
- lowered labour costs
- better for railway tracks
- stronger and more hard-wearing
He built
United States Steel company
He controlled the whole steel making process and banked profits to keep his plants operational in bad times
He opposed labor unions
Edison and the electrical power
Thomas Edison (1847-1931)
- Self educated and one of the greatest inventors
- responsible for many inventions (eg. light bulb)
- had the skill to industrialize inventions and sell them on a large scale
- developed first great industrial research laboratory
He was supported by the patent acts by Congress to prevent others copying his work
Bell and the telephone
-Alexander Graham Bell (1847-1922)
-Was a teacher for deaf people
-developed the telephone (whether he invented it was a debate)
-The Bell Telephone Company (AT&T) have a monopoly by 1880
-achieved by making use of the holding company
He controlled the whole system and was a multimillionaire
Capital availability
-All projects needed substantial amounts of initial investments
-By 1870 a capital-raising system developed known as the stock market in New York due to the stimulus provided by the civil war
-Profits generated by the war were invested in this stock market and the capital needed for these projects would be raised
-people invest there savings
-manufacturers invest there profits
-banks invested their deposits
-insurance companies invested their clients premiums
All in the stock market
Investors make money or lose it by buying shares hoping for good dividends and a rise in their shares
The effects of minimal legislations
- no laws restricting hours of labour
- no taxes on profits
Robber Barons
It is a term of social criticism that was applied to certain wealthy and powerful American businessmen such as :
Andrew Carnegie John D. Rockefeller J.P Morgan Henry Ford Cornelius Vanderbilt
John D. Rockefeller
Started as a bookkeeper
He then built a small business in oil refining then gave rail owners shares to get cheaper freight (goods transported in bulk by truck, train, ship, or aircraft) than his rivals then force them out of the business and gain monopoly control
He controlled the price of oil in USA
In 1889, the holding company was formed allowing Rockfeller to maintain control over the oil industry
JP Morgan and investment banking
Some companies were having financial difficulties and so Morgan invested in many of these business and took control over them and gradually took control of freight prices and enabled him to build profits
Took over Carnegies steel empire and turned it into United States Steel Corporation and bought New York Times
Trade policies and protectionism
They were imposed to ensure that foreign made goods were more expensive than the home-produced ones, forcing people to buy american goods
tarrifs were principle source of the federal government’s income
Manufacturers and Republican Party (pro tarrifs):
Reduced competition from abroad
Farmers and Democrats (anti-tarrifs):
Increased operating costs
Ran a campaign arguing thay high food prices are caused by the tarrifs
McKinley Tariff
Raised rates imposed on imported goods to protect domestic industries from foreign competition and it was supported by Republicans
Wilson-Gorman Bill
Significantly lowered tarrifs rate however the republicans in the senate made ammendments and there were hardly any reductions at all
Immigration from southern and eastern Europe
People that immigrated from the south were encouraged to leave their homes because of religious persecution, poverty, unemployment and a desire for political freedom increasing demand for cheap labour.
US welcomed them and this is a factor for rapid industrialization
The Panic of 1873
Principal cause was..
Speculative railroad expansion and a drop in European demand for American farm products.
Companies that recieved large loans by the New York Banks failed and went bankrupt unable to repay the loans and the panic spread
Stock markets and banks shut down for a period of time
The following year the bill was vetoed by President Grant.
The Specie Resumption act backed the United States currency with gold which helped inflation and stabilized the dollar
The Panic Of 1893
Similar causes to tbe panic of 1893 Over expansion in industry Railroad development Speculation in the stock market Weak banking system
Fall in exports because of political and political and economic problems and the prices dropped drastically
There was a large reduction in the consumption of all goods.
JP morgan was able to help to prevent the flight of gold abroad as he bought shares to restore business comfidence
The panic of 1907
Also known as the Rich man’s panic caused by the New York stock exchange and speculation.
Speculation: buying shares in the hopes of selling them later for a higher price.
Aggregate demand:
Aggregate demand is expressed as the total amount of money exchanged for those goods and services at a specific price level and point in time.
The price of stock is decreasing which causes everyone to sell the shares as it is losing its value.
Knickerbocker trust (The Knickerbocker Trust was a bank based in New York City that was, at one time, among the third largest bank in the New York, United States.)
The Knickerbocker trust collapsed as a result of poor investment on the United Copper Company
Therefore customers feared and demanded their money back and some trusts didn’t have the money and went bankrupt.
Industrial production dropped by 11% Demand for goods dropped Wage reduction Unemployment increased to 11% Increase in poverty
War was a major cause for the recovery of depression
Federal Reserve Bank was created in 1913 to enhance the stability of the American banking system.
Wealth and political power of the robber barons
Andrew Carnegie left $408 million
Cornelius Vanderbilt left $105 million
Rockfeller left approximately $2 million
Became the nearest the United States had to an Artistocracy (the highest class in certain societies)
Bought massions, art, dress designers,
And they were being criticised about the ways in which they spent their money because there was a large contrast between the way they lived and the appaling working conditions of their employees
Carnegie gave his fortunes to museams, libraries, universities, hospitals and medical research
Boss system
The population of people living in cities from 1860 to 1910 rose from 20% to 46%
The Boss System was created to deal with issues like
Public health, housing, clean water, sewage disposal, jobs, transport and law enforcement
The leaders (bosses) and their organisations (machines) provide these needs
Best known and most successful is the ‘Boss Tweed’ it was a political machine that controlled the New York state and city governments when the courthouse was built
He stole millions of dollars from cities and the state through his control of the loca democrats but later we was exposed, arrested and died in jail
Housing health and safety
Chicagos population increased rapidly from 300,000 to 1.5 million in the span of 30 years which made it one of the fastest growing cities in the world
It was a major center for Canal junction Railhead Regional hub Centre for cattle grain industries
Most of the workers lived in small areas with high population density close to the factories and meat packing plants, they were crammed into tenement buildings
They were given names like
Poverty Gap/Misery Row
Aims of the landlords were to squeeze as many people into limited space to maximize their profits
Diseases such as cholera, smallpox measles, diphtheria, tetanus, tuberculosis were widespread and killed thousands of people in these poor living conditions.
Working conditions
Factors contributing to the poor conditions
-endless supply of cheap
-weak labour unions
-no regulations by national governments
Standard working weak for men = 60hrs
Few breaks and no sanitation facilities
No sick pay or holidays, no unemployment insurance, no job security
One horrific accident included a man roasted by molten slag that spilled from a giant ladle when the hook slipped the company had no incentive to car about such things
The labour unions
There were many obstacles that faced labour unions
- Hostile environment in the US
- government, courts and police sided with the employer
- State legislatures were dominated by business interests
- Large supply of cheap labour
- Laissez-faire beliefs
There were many divisions within the labour movement
Racism, ending capitalism, banning immigration etc.
First nationwide trade union was the
National labor union later became knights of labor, the strike was its major weapon
Just under 50% of all strikes over pay and conditions were successful
However some strikes caused increasing working hours and cut wages and strikers lost their jobs and strikes led to violence
Carnegie locked out the workforce fortified the plant and employed hundreds of other employees to protect it, he cut wages and demanded longer working hours, wages were tied up to price of steel
Farming organizations
In this period farming was in depression
Over productivity led to falling prices
Growing competition across from Canada
Terrible weather conditions caused great distress in farming communities
The Granger Movement
Subsistence farming were farmers that farmed for themselves
Market based farming were farmers that farmed to sell
Farmer movement to cut prices of what they needed to buy and and improve the ability to sell produce by 1870s it started to decline and the Farmers Alliance took over.
In the end farming remained in depression.
Famers want more money to buy machines
Progressive movement
People who were concerned about the social, economic and political implications of rapid industrialization were known as the Progressives (against robber barons)
There were 3 categories of sims represented by the progressive movement
Political, economic, and social
Wanted tougher enforcement on
- Sherman Anti-trust act
- Commerce Act
- Recognition of labor unions
- Recognition of working hours
- Separate regulations for women and children
- Compensation for injury at work
- Insurance schemes for the unemployed and sick and old of age
- Regulations of banks insurance and stock market and businesses
- Measures against food adulteration
- Legislation to protect the environment
Radical reforms of the management of cities
Local were more interested in personal gain rather than public service
Reform of political parties
Example: Rockefellers standard oil company
Main demands were for primary elections for candidates for office and for congress and the presidency
Amending the US Constitution
In the US, a supermajority of 2/3 of Congress and 3/4 of the state legislators are needed to change the Constitution. This makes it very hard and can only be done if majorities all over the country agree.
Female emancipation
Womens freedom to vote was divided on the issue of race which limited its effectiveness
Female progressives
Jane Addams
Ida Tarbell
Temperance movement
(Movement against alchohol)
Susan B. Anthony
Elizabeth Cady Stanton
Female suffrage
National Women’s Suffrage Association
American Women’s Suffrage Association
And merged in 1890 to form the National American Women’s Suffrage Association
Suffrage suffered from issues like male prejudice
Churches and business led by saloon interest strongly apposed supporting the women because giving them power could cause movement such as the Temperance Movement to grow.
Supreme Court used the constitution to disallow attempts to gain the vote for women
Theodore Roosevelt came out as the first presidential candidate to support for the vote of women
In 1920 the Constitution was amended to give all women the vote.
Jane Addams (1860-1935)
Pioneering social worker who founded an organization called Hull House to fight against poverty amongst women and children
The hull house provided a range of educational services to the poor
Addams battled to overcome basic hygiene problems (clean water & sewage disposal)
And was appointed an inspector of garbage disposal
She was responsible for setting up National Child Labor Committee and Federal Child Bureau and Federal Child Labor Act 1916
Florence Kelly (1859-1932)
Worked in Jane Addams Hull House
She observed children at the age of 4 working in dangerous conditions therefore, made a survey about these conditions and presented to the Illinois state legislature and as a result the state banned labour for those under 14
She was then employed as the states first female factory inspector
She moved to New York and formed National Consumer League (NCL) which started a campaign to end food adulteration
She also got the Supreme Court to restrict working hours of women to 10hrs
Founder of the National Association for the Advancement of Colored People (NAACP)
Ida Tarbell (1857-1944)
Seen as the founder of modern investigative journalism. History student and started by writing biographies of Lincoln and Napoleon. Her father was forced out of the oil refining business and so Tarbells investigation in the Standard Oil Company presented the many illegal practices which led to the successful prosecution of Standard Oil
Standard Oil Co. of New Jersey v. United States
Breaks up Standard Oil in 34 different companies in 1911.
Sherman Anti-Trust Act
1890 Bans “Combinations in restraint of trade” Aims at making it harder for businesses to suppress competition through trusts and monopolies. The word is intentionally vague.
Elkins Anti-Rebate Act
Theodore Roosevelt bans price discrimination by railroads in 1903. It is seen as making it harder for vertically integrated monopolies to suppress competition.
Hepburn Act
Creates the Interstate Commerce Commission which has the power to force a railroad to change prices if it finds they are engaging in illegal price discrimination.
“Rule of Reason”
1911 ruling said that the courts would use ‘reason’ on an individual case to decide if a business was being ‘unfair’.
Clayton Anti-Trust Act
1914 Tries to define exactly what is meant by an illegal trust. 3 main points: no price discrimination, no monopolies, and the government has the right to stop companies from buying each other if it means no competition.
Pure Food and Drugs Act of 1906
Sets up government inspectors to make sure food is what is says it is. Upton Sinclair’s the Jungle is often credited with making it popular.
Department of Commerce and Labor Act of 1903
Theodore Roosevelt creates the Department of Commerce. Initially most there to collect data and information about the economy.,
Yellowstone national park act.
Theodore Roosevelt creates first national park in the US.
The Coal Strike of 1902
Roosevelt imposes a compromise on striking coal workers by threatening to use the army to mine coal if the owners resist or use it to force the strikers out of the mines if they do.
Federal Reserve Bank
Created in 1913 as part of progressive reforms under Wilson. It decides how much money the government will print, and thus the amount of money in the economy.
Pullman strike
In 1895, the Pullman railway company cut wages by 30% after the Panic of 1893. The American Railways Union (ARU) led a strike that quickly spread to all railway workers in the country. They also blocked railways and used violence against people hired to replace them. Because of this, a federal court allowed the federal government to send in troops to disperse them and end the strike.
Prohibition
Banning alcohol.
Anti-Saloon League
Temperance movement that focused on politics. They tried to get win elections for pro-prohibition politicians. By 1917 Congress was majority anti-alcohol. 18th Amendment passed in 1919, prohibiting its sale.
Women’s Christian Temperance Union
A Women’s group dedicated to reducing alcohol use. It encouraged people not to drink socially and later began engaging in political tactics to get people to vote for prohibition candidates.
