Chapter 9 Flashcards
What was the main basis of industrialisation in the USA?
Abundant natural resources
This included coal, iron, lead, copper, petroleum, and timber.
What factors contributed to the creation of a continental domestic market in the USA?
Territorial expansion, population growth, and improved transportation and communications systems.
How did government support manifest for businesses in the USA?
Through tariffs, railroads, banking, and judicial support for corporations.
What role did immigration play in the American economy during industrialisation?
Provided a cheap supply of labor and technical ability.
Between which years did the United States emerge as the world’s leading economy?
1890 and the First World War.
What was the driving force behind the economic growth of the USA during this period?
Industrialisation.
What characterized the economic expansion in American agriculture in the early twentieth century?
New techniques and favorable market conditions.
What were the major financial crises in the USA during the economic expansion?
Panic of 1893 and Panic of 1907.
What was the outcome of the Panic of 1893?
Led to years of a ‘Great Depression’ affecting the wider economy.
What prompted demands for more effective regulation of big business?
Resentment and opposition from farmers, industrial workers, and Progressives.
What was the net export status of the USA by 1913?
The United States was a net exporter.
What were the two intense surges in American manufactured exports?
90% increase between 1895 and 1900, and 77% increase between 1908 and 1913.
What was the impact of American productivity compared to Britain’s?
American productivity was better than Britain’s.
Define ‘net importer’.
A country where the total volume and value of its imports is greater than that of its exports.
What characterized the Second Industrial Revolution?
Advanced technical developments in electric power, engineering, oil, chemicals, pharmaceuticals, and modern communications.
What was the significance of the ‘American Commercial Invasion’?
European competitors were alarmed by the spectacular growth of the American economy.
How did US industries achieve higher productivity?
Through innovation and efficient management methods.
Fill in the blank: The United States had huge deposits of _______.
[coal, iron, lead, copper, petroleum, timber]
True or False: The USA was a net importer by 1913.
False.
What were the three main factors contributing to the economic growth in the United States between 1890 and 1913?
- Labour supply from immigrant influx
- Rising world demand
- Resource abundance
What key discovery in Minnesota contributed to the US export success around the turn of the century?
High-grade iron ore in the Mesabe range of hills
By what percentage did US steel production increase by 1913?
400%
What was significant about US oil production by 1910?
It equaled that of the rest of the world combined
What was the Spindletop oil gusher, and where was it located?
One of the biggest oil gushers discovered, located in Beaumont, Texas
What role did political conditions play in the expansion of big business during this period?
Limited regulation of business and sympathetic government at state and federal levels
What was the time period of Republican political dominance that favored business interests?
1896 to 1912
List three agricultural products that the United States was a world leader in producing.
- Wheat
- Corn
- Other grains
What percentage of total US exports did cotton represent in 1890?
29.7%
What economic challenges did American agriculture face in the 1890s?
- Falling prices for agricultural products
- Shortage of credit
What two factors contributed to the vulnerability of small farmers in the South?
- Dependence on railroad companies and banks
- Market forces beyond their control
What caused the swell of protest from Western and Southern farmers leading to the rise of Populism?
Debt from easy credit and the impact of the 1893 Panic
What climatic conditions initially favored the success of farm settlements in the Trans-Mississippi West?
Unusually high annual rainfall
Fill in the blank: By 1910, US oil production equaled that of the _______.
rest of the world combined
True or False: The agricultural economy in the South was stable and not affected by external market forces.
False
What was the impact of the Panic of 1893 on farmers?
Led to three years of economic depression that hit farmers hard
What were two significant factors that caused the apparent success of early farm settlements to be illusory?
- Banking and credit issues
- Unfavorable climate conditions
What types of farming remained significant in the Southern economy?
- Tobacco
- Sugar
- Cotton
What percentage of total exports did petroleum represent in 1913?
6.1%
What was a significant social development in America that changed urban landscapes?
Urbanisation
Refer to Chapter 10 for social context.
What climatic conditions returned after 1887 that affected farmers?
Drought and wind erosion
What act helped irrigation schemes in arid areas of America?
Reclamation Act of 1902
What was a key federal act passed in 1906 to regulate food quality?
Meat Inspection Act of 1906
What was the relationship between agricultural prices and incomes from about 1905?
Parity in the relationship
What agricultural products saw a boom in output during the golden age?
Wheat and corn
What significant event in 1914 affected world markets and American agriculture?
Outbreak of a general European war
What was the population growth of New York City between 1870 and 1910?
Doubled twice
Fill in the blank: By 1900, there were ______ American cities with a population of 100,000 or more.
38
What were the main plantation products dominating the Southern economy?
- Tobacco
- Sugar
- King Cotton
What was the trend of urbanisation in the American South compared to the Northeast?
Slower and on a smaller scale
What economic factors dominated the Western economy during this period?
Extractive industries and dependence on Eastern financial interests
What event in the late 1890s stimulated rapid development in the Pacific coast ports?
Alaska-Yukon Gold Rush
What was the significance of the Alaska-Yukon Gold Rush in terms of US gold reserves?
Almost doubled the size of US gold reserves
What was the importance of the gold rush to the economy of the West?
Sparked wider economic development
What city briefly became one of the biggest in the West due to the Klondike Gold Rush?
Dawson City
Fill in the blank: The Pacific war against Spain boosted trade with ______.
China
What act was brought in by President McKinley in 1900 related to gold?
Gold Standard Act
What was the economic condition of the United States during the 1890s?
The economic condition included extensive pockets of poverty, periods of depression, and industrial unrest.
What were the major financial crises in the United States during the late 19th century?
The Panics of 1893 and 1907.
What was a significant response by industrial workers to low wages and harsh conditions in the 1890s?
Organizing trade unions and resorting to strike action.
What event in 1892 resulted in the deaths of 13 steelworkers?
The Homestead strike against Carnegie Steel Company.
What triggered the Panic of 1893?
The slowing down of the railroad boom and the bankruptcy of the Philadelphia and Reading Railroad.
What was the general economic slump of 1893 to 1897 commonly referred to as?
The ‘Great Depression’ until the title was transferred to the 1930s slump.
What were the structural weaknesses of the Gilded Age economy that contributed to mass poverty in the 1890s?
Unregulated capital markets and entrepreneurial frenzy.
What was the cause of the Panic of 1907?
The collapse of the Knickerbocker Trust Company.
Who intervened during the Panic of 1907 to restore business confidence?
J.P. Morgan.
What significant financial reform was established in response to the Panic of 1907?
The Federal Reserve central bank.
What economic effect did the outbreak of the First World War have on the American economy?
It stimulated rapid growth in American industry and agriculture.
What role did American farmers play during the First World War?
They expanded production for export to war-torn Europe.
How did unemployment trends change in the United States during the war?
Unemployment fell steadily.
What was the relationship between J.P. Morgan & Company and the Allied war effort?
They became the sole underwriter of Allied war bonds.
Fill in the blank: The American economy became a _______ on the eve of the First World War.
world leader in size, potential, and productivity.
True or False: The American economy was in recession when the First World War began.
True.
What was a notable production achievement of Baldwin Locomotive Company during the war?
Produced 5500 military locomotives and 6 million artillery shells.
What was the general perception of the First World War at the time of its outbreak?
It was expected to be intense but short.
What was one of the consequences of the economic transformation in the U.S. from 1890 to 1920?
Acceleration of modernization and economic development.
