Economic Developments: Urbanisation and the rise of Corporations and the impact of the 1873 Depression

Question 1

What was the situation with Industrial competition for the USA against Europe in 1865?

Answer 1

They were still behind Germany and Britain

Question 2

What event happened in the USA to help upscale industrialisation?

Answer 2

The Civil War

Question 3

Which industries became prominent in the Gilded Age? (Name 3)

Answer 3

The Oil Refinery Industry, The Steel Industry, The Railroad Industry

Question 4

What 2 things were companies able to form to create monopolies?

Answer 4

Corporations and Trusts

Question 5

What did the 1921 Census show?

Answer 5

For the first time, more than half of the US Population lived in urban areas

Question 6

How can immigration and corruption from this be linked to increased urbanisation?

Answer 6

Immigrants were able to find jobs quicker so on a large scale could start earning money much quicker

Question 7

Why could new markets be made due to Urbanisation? Give an example of a monopoly which was able to emerge due to this.

Answer 7

People would eventually want better public utilities, which helped for General Electric to become a monopoly as they offered this

Question 8

What was the population growth in New York from 1860-90?

Answer 8

Went from 1.2 million to 2.5 million

Question 9

How many people lived in Chicago in 1860 compared to 1890?

Answer 9

109,000 in 1860. Over 1.1 million in 1890

Question 10

How much did the population of San Francisco increase from 1860-80?

Answer 10

It quadrupled

Question 11

What was socially significant about the population growth of cities in relation to Industrialisation?

Answer 11

Cities started to become known by what their city mainly manufactured

Question 12

Give an example of a city and a new social perception of it based on what it manufactured

Answer 12

Mobile in Alabama mainly made Steel

Question 13

When did Oil wells start to appear in the USA and where?

Answer 13

Small oil wells started to appear in Pennsylvania in 1859

Question 14

What was the situation for many moderately large oil companies by the mid 1870s?

Answer 14

They were being bought up by Standard Oil

Question 15

When was Standard Oil Formed?

Answer 15

1870

Question 16

What percentage of oil refineries did Standard Oil own in 1871?

Answer 16

10%

Question 17

What percentage of oil refineries did Standard Oil own in 1877?

Answer 17

90%

Question 18

Name 2 things Thomas Edison invented during this era

Answer 18

Lightbulb, Phonograph

Question 19

What significant technology was developed in the mid 1800s that would help with transporting products a long way?

Answer 19

Refrigeration Technology

Question 20

How long was the recession after the 1873 Economic Panic?

Answer 20

5 years

Question 21

What happened to the economic growth of the USA due to the 1873 Economic Panic?

Answer 21

It slowed down

Question 22

Give a specific example of a way that some railroad companies had to cope with the recession?

Answer 22

Ohio and Baltimore railroad companies cut their workers pay by 4 times to cope with the recession

Question 23

Who was able to open a bank in the USA?

Answer 23

Anyone

Question 24

What were smaller banks usually connected to?

Answer 24

Larger private banks based in New York

Question 25

What was a limitation of the New York Private banks?

Answer 25

They sometimes made poor investment choices

Question 26

What is an example of a poor investment choice made by a New York bank?

Answer 26

Investing in Jay Cooke’s railroad network

Question 27

What happened to Jay Cooke’s railroad network?

Answer 27

It failed and went bankrupt

Question 28

What was the impact of Jay Cookes railroad network collapsing?

Answer 28

Many investors and the New York bank lost confidence and many railroad businesses went bankrupt

Question 29

Was the Jay Cooke railroad failure one of the reasons for the 1873 Economic Depression?

Answer 29

Yes

Question 30

What did the New York Bank have to do for the first 10 days of the Economic Depression? What did this mean?

Answer 30

They had to close the stock exchange for 10 days which meant there was no longer any way to easily get credit

Question 31

What percentage of labour workers were unemployed in 1874?

Answer 31

25%

Question 32

How many miles of rails were created in 1872?

Answer 32

7500 miles

Question 33

How many miles of rails were created in 1874?

Answer 33

1600 miles

Question 34

How much money did J.P Morgan inherit?

Answer 34

$12 million

Question 35

What skill did J.P. Morgan have?

Answer 35

He was a good financier

Question 36

Which Corporation did Morgan help to create? What was significant about this in the long term?

Answer 36

Helped to create the US Steel Corporation, which became the first billion-dollar company in history

Question 37

When did J.P. Morgan create his banking company and what was it called?

Answer 37

Created it in 1871 and it was called J.P Morgan and Co

Question 38

Was J.P Morgan’s Banking company a monopoly?

Answer 38

Yes