US Economic Growth (1890-1920)

Question 1

Industrial Growth (1890-1900)

Answer 1

• 1900: Iron production rose to 10.3 million tons
• Pittsburgh became the centre of the iron industry, had 38 steel plants
• 1901: Lucas Well in Texas produced 70,000-110,000 barrels of oil per day for 9 days
• Oklahoma produced 25% of the nation’s oil
• 1904: Largest 4% of US companies produced 57% of the total industry of the US
• 1898-1902: 319 major consolidations

Question 2

The 1893 Depression (Panic of 1893)

Answer 2

• Cause: Reading Railway, one of the biggest railroad companies, declared bankruptcy
• Caused stock market to crash, people began to sell their shares
• People began to buy gold as it remains high in value
• Caused value of the currency to collapse as it relied on the Gold Standard
• This caused Cleveland to repeal the Silver Purchase Act of 1890, helped boost business confidence
• 1/4 of railroad companies went bankrupt
• Led to 1894 Pullman Strike
• Led to Populist movement

Question 3

Agricultural Discontent (1890-1900)

Answer 3

• Farmers in the South and West
• Objected to the power of bankers/corporations
• Many farmers relied on loans
• Falling agricultural prices, rising prices charged for transport and grain storage, less income to repay loans
• Many farmers blamed railroad companies and bankers for the problems
• Farmers’ Alliances led to Populists, support for Democrats in 1896

Question 4

The Pittsburgh Steelworkers Strike (1892)

Answer 4

• Carnegie’s Homesteaders Steelworks, manager, Henry Clay Frick, cut wages and refused to accept union negotiation
• Attempt to break power of the union, private detectives were used to smuggle in strike-breakers, attacked by strikers
• Military forces were called in, rifles and machine guns
• After 5 months without wages, strikers starving, action collapsed

Question 5

The Pullman Strike (1894)

Answer 5

• First national strike in the USA, paralysed in the railway system
• Pullman company cut wages, refused to lower rents for the houses they’re are required to live in
• American Railway Union refused to handle any trains carrying Pullman cars
• Railway owners asked President Cleveland for support, sent troops to keep trains running
• Rioting was followed, troops firing, four killed
• Omnibus Indictment Act, permitted legal banning of strikes until 1930s
• Revealed that the federal gov didn’t care about the less well off in society, encouraged Populism