Economy (1890-1920) Flashcards

1
Q

5

Describe the causes of economic growth 1890-1920

A
  • Higher productivity - through innovation and efficient management methods (Ford doubled wages to $5 in 1914)
  • Cheap labour supply - influx of immigrants
  • Rising world demand
  • Favourable political climate (even with Progressivism)
  • Vast natural resources
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2
Q

5

Describe the take-off of American exports 1895-1913

A
  • 2 intense surges in manufactured exports: 90% (1895-1900) and 77% (1908-13)
  • Net exporter by 1913
  • Exports concentrated on iron, steel, copper and oil
  • American productivity outstripped Britain’s, even though American exports were lower
  • Dubbed ‘American Commercial Invasion’ in Europe
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3
Q

7

Describe industrial growth 1890-1920

A
  • Main driver of economic growth
  • Particular areas of expansion were oil and steel
  • Iron production rose
  • Modern oil production
  • Continued development of trusts and monopolies
  • Aided by favourable political circumstances
  • Exploited economic opportunites of favourable trading partners
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4
Q

4

Describe the growth of iron production 1890-1920

A
  • Rose from 9.3m tns (1890) to 10.3m tns (1900) to 11.3m tns (1910)
  • Pittsburgh became highly-centralised centre of iron industry
  • 38 steel plants along 42k of rivers
  • US Steel formation 1901
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5
Q

3

Describe modern oil production

A
  • Began in Jan 1901
  • 1901, Lucas Well in TX produced 100k barrels per day for 9 days though spindletop device
  • Oklahoma leading oil producer by 1907 - produced 25% of nation’s oil in 1913
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6
Q

4

Describe the continued development of trusts and monopolies 1890-1920

A
  • by 1904, largest 4% of US companies produced 57% of total American industry
  • 319 major consolidations between 1908-1912
  • Dupont controlled 85% of nation’s electric power
  • Carnegie Steel Corporation sold to JP Morgan in 1901 - formed US Steel and became world’s first $1bn company
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7
Q

4

Describe the favourable political climate for industrialisation 1890-1920

A
  • limited business regulation
  • state and fed govts sympathetic to business interests
  • TR apporoved TC&I takeover in 1907
  • particularly true of Republican dominance from 1896-1912
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8
Q

6

Describe the Depression of 1893

A
  • Withdrawal of Argentinian and European investors caused run on gold held in Treasury
  • Panic triggered when Reading Railroad declared bankruptcy
  • ‘Industrial Black Friday’
  • Sparked 4-year depression
  • Worst depression hitherto
  • Known as ‘Great Depression’ until 1929
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9
Q

4

Describe the social and economic effects of the 1893 Depression

A
  • 15k businesses folded
  • 600 banks closed
  • unemployment climbed to 20% (43% in Michigan)
  • soup kitchens opened to aid poor
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10
Q

2

Describe the political and structural effects of the 1893 Depression

A
  • Upsurge in business consolidations in response to bankruptcies
  • Led to support of populism/progressivism
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11
Q

4

Describe how Cleveland responded to the 1893 Depression

A
  • Supportive of traditional economic beliefs of Gold Standard, business cycle, limited intervemtion
  • Oct 1893, Cleveland persuaded enough members of Congress to pass Repeal of Silver Purchase Act
  • Boosted business confidence and gradually stemmed unemployment
  • 1895, JP Morgan lent $62m to prop up Gold Reserves
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12
Q

3

Describe the Sherman SIlver Purchase Act 1890

A
  • doubled US purchase of silver
  • undermined US gold reserves
  • lead cause of Depression
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13
Q

4

Describe the Panic of 1907

A
  • Triggered by collapse of 3rd largest NY trust, the ‘Knickerbocker’ trust company
  • NYSE fell by 50%
  • Local and national banks went under - no central bank at time to prop up banking system
  • Interrupted boom period of 1895-1913 (though 1900-07 period one of slower growth)
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14
Q

4

Describe how the 1907 Panic was ended

A
  • TR authorised JP Morgan takeover to avert TC&I (Tennesseee Coal, Iron and Railroad Company) collapse
  • JP Morgan’s actions prompted other financers to provide millions to restore business confidence
  • Panic quickly overcome (unlike 1893 or 1929)
  • Yet demonstrated that real economic power laid with robber barons
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15
Q

2

Describe the political effects of the 1907 Panic

A
  • Demonstrated underlying weakness of unregulated banking system
  • Support of central banking - Federal Reserve established 1913
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16
Q

2

Describe how the agricultural sector remained important 1890-1920

A
  • US still leading producer of wheat and corn despite industrialisation
  • Cotton still foundation of economy in South
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17
Q

6

Describe the 1890s Agricultural Discontent

A
  • Farming had become a part of a more integrated commercial network through railroads
  • Made agricultural economy subject to wider market volatility, esp in South
  • Shortage of credit in South and West
  • New settlers in Trans-Mississippi West struggled due to conditions
  • ‘Great Plains’ became known as ‘Great American Desert’
  • Credit-fuelled early land rushes saddled farmers with huge debts
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18
Q

3

Describe the agricultural hardships in the South in the 1890s

A
  • Tobacco, Sugar, Cotton underpinned economy
  • most black farmers remained sharecroppers
  • white farmers rarely better off - struggled to raise finance to invest in new methods against Big Agriculture
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19
Q

3

Describe how the 1893-97 Depression intensified agricultural discontent

A
  • Reliance on loans
  • Falling food prices accompanied with higher prices for grain storage and transportation caused by the surge of consolidation
  • Provided less income to repay loans
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20
Q

4

Describe the political effects of the 1890s Agricultural Discontent

A
  • Rise in populism
  • Many farmers lay blame at railroads and bankers
  • Bimetallism won popularity as way to repay loans
  • Farmers Alliance support developed into support for Weaver in 1892 and Bryan in 1896
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21
Q

5

Describe the ‘Golden Age’ of agriculture

A
  • Dramatic increase in production after 1900 due to increased global and domestic demand
  • Farmer cooperatives permitted mechanisation to spread more widely
  • Federal Government provided support
  • Parity between farmer incomes and prices from 1905
  • Boom enhanced by WW1
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22
Q

4

Describe federal government support provided during the ‘Golden Age’ of agriculture

A
  • 1902 Reclamation Act - irrigation scheme in arid (dry) areas
  • 1906 Meat Inspection Act - regulated food quality
  • 1916 Federal Farm Loan Act
  • 1917 Vocational Education Act
23
Q

3

Describe the impact of farmer income and price parity

A
  • placed at same ‘buying power’ as general economy
  • could therefore afford to cultivate greater land
  • led to boom in wheat and corn output
24
Q

4

Describe how WW1 enhanced the agricultural boom

A
  • Greater demand for American produce
  • Farmers able to purchase more land secure in knowledge their income would be greater guaranteed
  • Food production inc from 12.3m to 18.6m tonnes per year (1915-1918)
  • Farmer’s income grew by 30% (1915-1918)
25
Q

2

Describe the limits to the impact of WW1 on the agricultural boom

A
  • Demand fell once global markets recovered
  • Much of new land bought was ‘sub-marginal’ - only made profits when demand and prices were exceptionally high
26
Q

3

List the effects of economic change 1890-1920

A
  • Immigration
  • Urbanisation
  • Industrial action

See social cards for first 2 points

27
Q

3

Describe the causes of industrial action 1890-1920

A
  • Panic of 1893 and 1907
  • Intense pockets of poverty e.g. poor region of Appalachia
  • Depression 1893 and low wages/harsh conditions
28
Q

6

List 6 examples of industrial action 1890-1920

A
  • Pittsburgh steelwork’s strike 1892
  • Great Northern Railroad Strike 1893
  • Pullman strike 1894
  • Anthracite coal strike 1902
  • Ludlow Massacre 1913
  • 1919 strikes
29
Q

6

Describe the Pittsburgh steelwork’s strike 1892

A
  • Manager at Carnegie’s Homestead Steel Works plant, Henry Clay Frick, cut wages in 1892 and refused union negotiation
  • Private detectives smuggled in ‘blackleg labour’ to break griphold of ‘Amalgamated Association of Iron and Steel Workers’
  • Strikebreakers attacked by workers
  • Company called in militia, armed with rifles and machine guns
  • Action collapsed after 5 months without wages and ensuing starvation
  • Defeat set back union power considerably
30
Q

2

Describe the Great Northern Railroad Strike 1893

A
  • Initiated by American Railway Union (ARU)
  • forced railway bosses to make concessions
31
Q

Who led the ARU?

A

Eugene Debs

32
Q

4

Describe the Pullman Strike 1894

A
  • Triggered by Pullman company’s decision to cut wages yet refuse to lower rents where employees were required to live
  • ARU refused to handle any trains handling Pullman carts, including mail trains
  • Caused national strike that paralysed railway system
  • AFL opposed boycott as ARU was tying to seize its membership - internal divisions
33
Q

4

Describe how Cleveland ended the Pullman Strike 1894

A
  • Railway leaders asked President Cleveland for support
  • Cleveland sent in troops to keep trains running
  • Rioting led to troops firing onto crowds, killing 3
  • Strikes gradually ended in failure with rents remaining at the same level
34
Q

5

Describe the signficance of the Pullman Strike 1894

A
  • Federal Govt had shown itself hostile to unions - to extent it was willing to shoot its own citizens
  • Used Ombibus Indictment Act 1884 against ARU - permitted legal banning of strikes
  • ARU dissolved
  • Remained in force until 1930s
  • Belief that Government sided with industrialists led to working class support for populism
35
Q

3

Describe the Triangle Shirtwaist Factory Fire 1911

A
  • Deadliest industrial disaster in NYC
  • led to deaths of 123 women (as young as 14)
  • Doors to stairwell and exit blocked to prevent workers taking unauthorised breaks
36
Q

3

Describe the impact of the Triangle Shirtwaist Factory Fire 1911

A
  • Muckraker journalism
  • Led to legislation on factory safety standards
  • Helped spur growth of ILGWU which fought for better working conditions for sweatshop workers

ILGWU - International Ladies’ Garment Workers’ Union

37
Q

5

Describe the impact of WW1 on the economy (exports)

A
  • USA went from debtor to creditor nation
  • High demand for crops from Europe led to agricultural boom
  • Britain and France depended on US for war supplies
  • Total exports climbed from $2.3bn (1913) to $6.2bn (1917)
  • By end of 1918, 3.5m rifles produced
38
Q

4

Describe the impact of WW1 on the economy (employment)

A
  • employment dropped from 16.4% (1914) to 6.3% (1916)
  • reduction in immigration due to war
  • recruitment to army
  • increased in production → more jobs
39
Q

2

How much did WW1 cost for the USA?

A
  • $33.5bn
  • $7bn loaned to allies
40
Q

3

How did the USA pay for WW1?

A
  • 22% through corporate taxes and levies on wealthy
  • 20% through creation of new money (QE)
  • 58% raised through ‘Liberty’ bonds
  • A 25% inheritance tax introduced
41
Q

What was the top level of income tax in WW1?

A

75%

42
Q

2

Describe liberty bonds

A
  • 5 war bonds issued across war
  • by 3rd bond, 9m posters had been distributed, esp to women
43
Q

3

Describe private business in WW1

A
  • Baldwin produced 5.5k military locomotives and 6m artillery shells for allies
  • US Steel expanded to full capacity
  • JP Morgan made loans to French Bankers and BoE
44
Q

4

Describe progressive labour relations in WW1

A
  • Unions more powerful due to reduced labour force and need for high and consistent employment
  • Samuel Gompers (AFL) appointed to Wilson’s Council of National Defence
  • National War Labor Board
  • War Labor Policies Board
45
Q

3

Describe the National War Labor Board

A
  • set up in April 1918 to settle industrial disputes
  • consider over 1.2k cases
  • dissolved in May 1919
46
Q

3

Describe the War Labor Policies Board

A
  • set wages and standards of employment
  • wages doubled in steel industry
  • consulted unions and employers - greater acceptance of unions
47
Q

How much did union membership grow by in WW1?

A

2.3m

48
Q

2

Describe regressive labour relations in WW1

A
  • Women and AA still faced union resistance
  • Communist Revolution in 1917 in Russia led to backlash against worker movement
49
Q

4

Describe the 1919 strikes

A
  • wave of national strikes involving over 4m workers
  • Feb 1919 - general strike of 60k workers in Seattle
  • Sept 1919, 75% of Boston police officers on strike
  • ‘Great Steel Strike’ against US Steel lasted 3 months
50
Q

3

Describe the US economic positives by 1920

A
  • Produced 70% of world’s oil
  • Overtook Germany as leading producer of fertilisers and chemicals
  • Standard of living outshone European counterparts ravaged by war
51
Q

2

Describe the US economic negatives by 1920

A
  • Inequality persisted in urban areas
  • Trade Union movement grew but still limited
52
Q

2

Describe agriculture by 1920

A
  • Midwest’s efficient, large-scale farms produced ⅓ of world’s wheat and ⅔ of its corn
  • Small farmers faced competition from larger agricultural enterprises from Argentina, Canada, Australia and New Zealand
53
Q

2

Describe the Dingley Tariff Act 1897

A
  • raised tariffs in United States
  • to counteract the Wilson–Gorman Tariff Act of 1894, which had lowered rates
54
Q

3

Describe Labor Day

A
  • Designated by Cleveland as national holiday following 1894 Pullman strike
  • Won support from Gompers
  • Contrasted more radical May Day movement