Economic Developments: Reasons for Industrial Growth Flashcards
Why would raising federal funds during the Civil War be significant to the banks?
It would mean that bank infrastructure would need to evolve to control more money
What type of currency was introduced during the Civil War? What year was it introduced?
Paper Notes, introduced in 1861
How would Paper Notes help economic growth?
Another incentive for banks to develop to gain control of more money
What was a benefit for farming with slavery being abolished in terms of developments?
It meant there was more of a reason to modernise agriculture
What was the population of the USA in 1860?
30 million
What was the population of the USA in 1880?
50 million
How many people immigrated to the USA from 1870-1879?
2.8 million people
How can you link population growth to improvements in housing?
More people being born means more of a need for good quality housing to survive
Why would you have had a better chance of getting established in the USA if you were in the North-east in the 1870’s?
Because the North-East of the USA was the most developed part of the USA
When did the first Transcontinental Railroad open up?
1869
How many kilometres of railroad was laid down from 1868 to 1873?
53,000 km
How many people were employed in railroad networks by 1900?
1 million
What was the annual stock market turnover in New York in 1865?
$6 billion
How big was the stock market in New York by 1900?
It had become the second largest stock market in the world
What was essential for entrepeneurs to get loans for their businesses?
Credit
What was a potential issue with lots of large private banks in New York before 1873? Give an example
They gave out very large loans to any railroad startups, such as Jay Cooke’s failed railroad network
What role did the Constitution give to the Federal Government in running the economy?
A very small role
Why were Congress happy to introduce high taxes for imports?
Because they did not want the US economy to be undermined by foreign economies.
How high could import taxes be if it was foreign?
Above 50%
What were employers able to do for a long amount of time after the Civil War? What shows this?
Prevent Unions from being created, such as Carnegies armed guards who prevented any unions being formed.
Give an example of employers not caring about their workers in the 1870s
The Baltimore and Ohio railroad companies cut their workers’ wages 4 times from 1873 to 1877
Why were Corporations and Trusts able to be created?
Because the federal government did not regulate the power of businesses for a long time
Why did Corporations allow for mass economic expansion?
Because it meant one business could control most of an industry for the whole nation
Why did trusts allow for mass economic expansion?
More properties could be bought by companies out of the state they operated in
What helped increase the speed and quality of Steel Production?
The Bessemer Process
Who efficiently implemented the Bessemer Process into their steelworks?
Andrew Carnegie
