The Gilded Age 1877-1890 Flashcards
The spoils system
- political patronage
- rewards key voters with gov jobs
- conflicts principle of meritocracy
- party loyalty over administrative competence
New York Custom House
- main port for importing goods
- huge opportunities for extortion
- if tariffs are not accepted, imports would be undervalued and declared as forfeit
- 1/2 of total goes to head of custom house
- 1874 - $50,000 bribe paid by Phelps Dodge and Co. to Senator Conkling
Views on politics
Traditionist: CORRUPT and GREED.
Revisionist: Corruption overmphasised, many politicians did want to make a difference.
Economic developments
- continued growth
- increased urbanisation
- increased immigration
- labour movement emerged
Robber Barons Overview
By 1890, USA led Britain, Germany and France in terms of industrial power.
Economy grew by 3.8% annually
Innovation unregulated by laissez-faire gov
Laissez-faire
Opposed gov subsidies, state aids and tariffs
Social Darwinism - ‘survival of the fittest’
Justification to RB
RB Businessmen
Cornelius Vanderbilt - Railroads
John D. Rockefeller - Standard Oil
Andrew Carnegie - Steel
J.P. Morgan - Banker/financer
Jim Fisk - Wall street trader
Jay Gould - Wall street trader
Andrew Carnegie - Steel
- Needed for RR and other industries
- Anti-union = strike - Homestead Strike 1892
- Vertical integration to monopolise steel for lower costs and higher profits
- Contributed millions to make libraries and cultural institutions
- Universities - Carnegie trust for universities of Scotland (1901)
- ‘Gospel of Wealth’
- 1901 sold company to J.P. Morgan
John D. Rockefeller - Standard Oil
- Monopolised oil, owned 90%
- Horizontal integration to buy out competition and used fixed prices
- 1911, split into 34 separate entities
- Gave $550mn to medicine, Baptist church and AA educational institutions
- Helped create University of Chicago, Rockefeller Institute and Rockefeller Centre
Cornelius Vanderbilt - RR
- Engaged in ‘fare wars’ and some competitors paid him to not compete with them
- Bought out RR companies in the east to cut operation costs
- Gained control of the Hudson River by cutting fares and offering luxurious ships - his competitors paid him to move his operation elsewhere
- Offered first RR service from NYC to Chicago
- Gave $1mn to build Vanderbilt University
- Ordered building of Grand Central Depot to give thousands of jobs to the unemployed during 1873 Panic
National Labour Union 1866
Aim - 8 hr day, better working conditions
300,000 members but short lives in panic of 1873 and members decreased to 50,000 in 1877
Knights of Labour 1869
Aim - 8 hr day, end to child labour
750,000 members with ineffective strikes, however it’s downfall was due to the Haymarket Bomb Outrage 1866
American Federation of Labour
Samuel Gompers
1892 - 250,000 members
Aim - higher wages, shorter work days
Union for skilled workers (men)
National Railroad Strike 1877
Workers walked out due to a pay cut, Hayes sent in violent federal troops.
- 25 killed
- $10mn worth of property damaged
- RR yards attacked
- Burned trains and tore up tracks
- 500 cars, 104 locomotives, and 39 buildings set on fire
Shows Hayes and fed gov were in favour of big business
Haymarket Bomb Outrage 1886
Strike at McCormick Harvester where police fired so Anarchists rebelled.
Bomb thrown at police and 160 wounded, retaliatory police fired and wounded 100+.
7 arrested and executed in 1887.
Public opinion towards Anarchists hostile. 8 hr day movement FAILED