Impact of Industrial Growth

Question 1

Depression of 1873

Answer 1

Unwise investments in privately owned banks lead to bankruptcy. Depression caused by poor US banking system and European economic reversal. Led to unemployment, credit drying up and NYSE closing. ¼ laborers in New York were unemployed. Major railroad companies failed

Question 2

Urbanisation

Answer 2

Before 1860 only 16 US cities with a population of
50,000+. Chicago had a population of 30,000 in 1850, population of over 1 million by 1890. Became a railroad center for shipping lumber meat and grain. Cities become identified by what they produced. Troy, NY: Shirt collars. Birmingham, AL: Steel. Paterson, NJ: Silk. Houston, TX: Railroad cars

Question 3

Living Conditions

Answer 3

Slums develop and corruption in running new cities. Urban growth created slums with poor living conditions and overcrowding. ‘Boss’ System created. ‘Boss’ was the Mayor who would sell right to the highest bidder to provide housing, transport and other basic utilities. Police owed their job to the ‘Boss’. He would provide housing and employment to African-Americans in exchange for votes

Question 4

Agriculture

Answer 4

Not prosperous. Had debts from borrowing to buy land
and machinery and were too dependent on overseas markets. Could not compete with ‘agribusiness’. South dependent on cash crop (cotton). Prices keep dropping. Bushel of wheat falls from $1.45 in 1866 to 76 cents in 1869.