US Economy 1890-1917 Flashcards
What were the foundation for the US to rise as an economic/ industrial power?
Dominant bussines men(Andrew Carnegie, John D. Rockefeller) and the mass immigration providing flexible supply of labour
They were a net importer: total volume and value of imports greater than exports
What had caused dynamic growth in the American economy?
‘Second Industrial Revolution’
-a surge in advanced technical developments in industries (iron, steel, copper & oil)
In America 90% increase exports (1895-1900) then 77% rise (1908-1913) concentrating on iron, steel etc.. on low prices
-increase productivity
What were the reason the US had industrial expansion?
Efficiency: industries had high productivity & efficient methods
Labour supply: influx of immigrants reached peak
Rising world demand for high graded iron ore & oil
Benefits from vast number of resources
-{{(1907) US steel bought 75% message ore which was connected by transportation network to steel mills in Ohio }}
-Steel production increas by 400% by (1913)
-(1910) US oil production equal rest of world combined { spindle oil gusher in Texas was biggest oil gusher discovered }
How did the United States became part of a world economy?
-world shipping routes stretch accord Atlantic and pacific routes
-undersea telegraph cable network stretch accross oceans
-peaceful trade with Canada and Latin America
Why was agriculture important for American economy?
-provided large amount of revenue from exporting large amounts of grains
US was a world leader in wheat and corn production
-(By 1900 US produced 25% of worlds wheat production)
Cotton remained interval to southern economy
-(1913, 22.5% of US exports were cotton
Large production of iron and steel
-(1913, 12.5% exports were iron & steel)
What hardships did the agriculture industry suffer during the 1890s?
-(1893) panic affected farmer economic conditions
-the US south and west faced economic instability like falling prices & shortage of credit
-American farmers became dependant on railroad companies & banks
=increase African American sharecroppers
= small white farmers struggle to raise finance to invest in advanced methods
-small farmers had become vulnerable
• early 1890 land rush caused poeple to acquire land that had been fuelled by unrealistic loans from banks. Causing farmers to get into debt when credit boom subsidised
• climate issues: high annual painful caused farmers to be susceptible to drought & wind erosion
How did the agricultural industry improve after 1900?
Expanding domestic economy boost demand for agricultural production & economy
-increase mechanism
-(1902) reclamation act aided irrigation schemes in arid areas
-(1916) federal farm loan act: provide low cost to loans to farmers
-(1914) war dislocated world market, so farmer but more land
After (1905) farmers has more buying power, increasing land under cultivation. Which increased wheat and corn exports
Why was the “golden age” of America agriculture limited?
-after the war land only became profitable when high prices persisted( struggle to maintain)
-and world markets recovered after ww1
How did American urbanisation develop during 1890-1914?
New York double population from (1890-1910)
1900 was 38 American cities with population over 100,000
Development in north, south and west
What was the main impact for economic change in north & northeast?
Urbanisation was rapid in north
-population of New York doubled (1890-1910)
What were the main impacts of economic change in the south (1890-1914)?
-development of oil in Texas expanded cities (New Orleans/housten)
-continue domination by plantation products “king cotton”
-urbanisation was slower & smaller than northeast
(Housten population had almost tripled from 1890-1910 )
What were the main impacts of economic change in west (1890-1914)
-was dominated by extractive industries
-dependant on eastern financial interest for investments
-growth of port cities on west coast:-
• (Seattle population 1900=81 thousand, 1910=237 thousand)
•(1896) Alaska gold rush stimulated rapid development in pacific coast ports As it had doubled gold reserves, which increase China trade, increase exports in Seattle
• potero point in San Francisco became important for ship building
In what ways was the economic expansion not continuous/ smooth?
• lots of poverty in big cities (Appalachia) caused by
-Industrial unrest:
(1892)in Pennsylvania 13 steel workers killed fighting against strike barriers sent by Carnegie steel company
(1894) Pullman strike shutdown large parts of railroad network
- stock markets & banking system often unstable and unreliable
(1893 Panic) reduced railroad boom, failed banks, created 3 years of economic slumps and caused insufficient money supply to finance economic activity
(1907 Panic) triggers by collapse of knickerborder (3rd largest) trust company in New York
=J.p Morgan to put million of dollars to restore bussines confidence &prompting other finances to do the same
What was commissioned to prevent another panic ?
An establishment of federal reserve central banks (1913) during Woodrow Wilson’s government
But failed (1929) panic
What opportunities did world war 1 bring to USA in (1914-1917)?
Large companies (US steel, US catering company, & Baldwins locomotive company) expand production to full capacity
[Baldwin locomotive company produce 6 million artillery shells for allies]
-importance of food supplies expanded the economy
-unemployment fell due to Samual Gompers cooperation with workers
-increase opportunities for American financiers
• j.Morgan & company made agreement with French and English bankers, who became dependant on American loans
