Economic Developments: Urbanisation and the rise of Corporations and the impact of the 1873 Depression Flashcards
What was the situation with Industrial competition for the USA against Europe in 1865?
They were still behind Germany and Britain
What event happened in the USA to help upscale industrialisation?
The Civil War
Which industries became prominent in the Gilded Age? (Name 3)
The Oil Refinery Industry, The Steel Industry, The Railroad Industry
What 2 things were companies able to form to create monopolies?
Corporations and Trusts
What did the 1921 Census show?
For the first time, more than half of the US Population lived in urban areas
How can immigration and corruption from this be linked to increased urbanisation?
Immigrants were able to find jobs quicker so on a large scale could start earning money much quicker
Why could new markets be made due to Urbanisation? Give an example of a monopoly which was able to emerge due to this.
People would eventually want better public utilities, which helped for General Electric to become a monopoly as they offered this
What was the population growth in New York from 1860-90?
Went from 1.2 million to 2.5 million
How many people lived in Chicago in 1860 compared to 1890?
109,000 in 1860. Over 1.1 million in 1890
How much did the population of San Francisco increase from 1860-80?
It quadrupled
What was socially significant about the population growth of cities in relation to Industrialisation?
Cities started to become known by what their city mainly manufactured
Give an example of a city and a new social perception of it based on what it manufactured
Mobile in Alabama mainly made Steel
When did Oil wells start to appear in the USA and where?
Small oil wells started to appear in Pennsylvania in 1859
What was the situation for many moderately large oil companies by the mid 1870s?
They were being bought up by Standard Oil
When was Standard Oil Formed?
1870
What percentage of oil refineries did Standard Oil own in 1871?
10%
What percentage of oil refineries did Standard Oil own in 1877?
90%
Name 2 things Thomas Edison invented during this era
Lightbulb, Phonograph
What significant technology was developed in the mid 1800s that would help with transporting products a long way?
Refrigeration Technology
How long was the recession after the 1873 Economic Panic?
5 years
What happened to the economic growth of the USA due to the 1873 Economic Panic?
It slowed down
Give a specific example of a way that some railroad companies had to cope with the recession?
Ohio and Baltimore railroad companies cut their workers pay by 4 times to cope with the recession
Who was able to open a bank in the USA?
Anyone
What were smaller banks usually connected to?
Larger private banks based in New York
What was a limitation of the New York Private banks?
They sometimes made poor investment choices
What is an example of a poor investment choice made by a New York bank?
Investing in Jay Cooke’s railroad network
What happened to Jay Cooke’s railroad network?
It failed and went bankrupt
What was the impact of Jay Cookes railroad network collapsing?
Many investors and the New York bank lost confidence and many railroad businesses went bankrupt
Was the Jay Cooke railroad failure one of the reasons for the 1873 Economic Depression?
Yes
What did the New York Bank have to do for the first 10 days of the Economic Depression? What did this mean?
They had to close the stock exchange for 10 days which meant there was no longer any way to easily get credit
What percentage of labour workers were unemployed in 1874?
25%
How many miles of rails were created in 1872?
7500 miles
How many miles of rails were created in 1874?
1600 miles
How much money did J.P Morgan inherit?
$12 million
What skill did J.P. Morgan have?
He was a good financier
Which Corporation did Morgan help to create? What was significant about this in the long term?
Helped to create the US Steel Corporation, which became the first billion-dollar company in history
When did J.P. Morgan create his banking company and what was it called?
Created it in 1871 and it was called J.P Morgan and Co
Was J.P Morgan’s Banking company a monopoly?
Yes
