Farming to Industry 1865-1903

							Industrialization
  Sketches
       • Why?




      • Why?




       • Why?
      America’s Industrial
         Revolution
         1865-1925



What are the causes?
 New Frontiers: Farming’s
       Revolution
• After Civil War, US population
  rose greatly
• Farmers went west to Great
  Plains
• Homestead Act, 1862—160
  acres of free land to anyone
  who would farm it for five
  years
      Cattle Farming

• Grazed on land in Texas,
  Kansas, Nebraska, Dakotas,
  Wyoming, and Montana
• Went to market and brought
  there on long cattle drives by
  cowboys
 Mountains and Valleys

• West for riches in mining
  minerals in Rockies & Sierra
  Nevada
• Timber in California
• Gold & silver funded US
  industrializing
• Gold discovered in California
  brought more settlers west
Transcontinental Railroad
 • To build workers blast through
   Sierra Nevada and Rockies
 • Chinese, Mexicans, Irish, African
   Americans, ex-Confederates and
   Federal soldiers filled job
   openings on Transcontinental
   Railroad
 • 1869 it was complete
 • Everyone benefited except the
   Native Americans
 Second Great Removal

• Rapid settlement of land west of
  Mississippi R. forced second
  removal of Native Americans
• Relocated to reservations
• Dawes Severalty Act (1871) took
  away rights of Native Americans
  to negotiate treaties over land
  with US government
  The Rise of Big Business



Captains of Industry or Robber Barons
              Industrialization Terms
• Bessemer          • Social
  Process             Darwinism
• Horizontal        • Trust
  integration       • Sherman Anti-
                      Trust Act
• Vertical
  integration       • Entrepreneur
                    • Philanthropist
• Laissez faire
                    • Corporation
• Capitalism
                    • Monopoly
• Capital
Industrialization Focus Questions


    Was the rise of industry good for
      the United States?
    How did the industrialization
      affect the US?
        Industrialism
• The process of manufacturing
  replacing agriculture in the US
• Urbanization of the US
• US becoming “smaller” due to
  better modes of transportation and
  communication
• Rise of big business & labor unions
• “The Gilded Age”
• Trusts
    Causes of Industrial
        Expansion
• Abundance of natural resources
  (lumber, coal, oil) fueled factories
  machines
• Immigrants (from Southern and
  Eastern Europe and Asia) filled
  demand for cheap workers
• Cultural climate favorable view of
  entrepreneurs & inventors (the
  American Dream)
    New Technologies
• Thomas Edison & electric light bulb
  revolutionized factory life
• New and better railroads transported
  goods throughout US
   – Bessemer Process-air sent through
     molten iron removing impurities;
     steel made was better and quicker
     than previously
• Improvements to telegraph
• Telephone invented
   – Eased communication barriers
Line Graph: Patents Issued
 for Inventions, 1845-1900
Year   Total Patents   Year   Total Patents
          Issued                 Issued

1845       473         1875      13,291

1850       883         1880      12,903
1855      1,881        1885      23,285

1860      4,357        1890      25,313

1865      6,088        1895      20,856

1870      12,137       1900      24,644
Impact of Industrialization

• Long-lasting impact on society
  – Rise in standard of living
  – Cities grew up and out
  – Culturally diverse
• Efficient production techniques
• Improved transportation and
  communication
• Consumerism
  – Instead of making clothes, they
    were bought @ stores
       Big Business

• Before Civil War businesses were
  small and family owned
• End of 19th C. large corporations
  dominated the US business
  scene
• Corporations gain huge fortunes
• Federal Regulations target
  corporate abuses
       Big Business

• Andrew Carnegie—steel baron
  sold US Steel for $1.5 billion
• John D. Rockefeller—oil tycoon;
  Standard Oil
• Gustavaus Swift and Philip
  Armour—meatpacking
• Tobacco, farm machinery, and
  sewing machines also dominated
        Big Business

• Robber barons— “stole” their
  fortunes by paying low wages
• Captains of industry—steered the
  country toward economic
  prosperity
• New business organization
  – cartels
  – Trusts
  – Monopolies/oligopolies
         Big Business
• Trust—has a board of trustees who
  combine the stocks into a new
  organization and run the business
• Bought out/merged with smaller firms
• Vertical integration—Carnegie/steel
  – Taking control of each step in
    production of a product
• Horizontal integration—Rockefeller/oil
  – Bringing together as many firms
    from same industry
       Big Business

• Social Darwinism to describe how
  the “fittest” people in society
  would dominate
• Carnegie was a philanthropist
  (rich should share riches to help
  aid in the betterment of society)
        Big Business
• Federal Regulations established
  to combat the large corporations
• Interstate Commerce
  Commission created to oversee
  railroad operations
  – Regulated with Sherman Anti-trust
    Act in 1890, which banned mergers
    and monopolies
• didn’t work at first; not enforced;
  laissez faire
 Line Graph for Total Number of
Workers, 1870-1920 (in thousands)
     Year   Agricultural      Non-
             Workers       Agricultural
                            Workers

     1870     6,850          6,075
     1880     8,585          8,807
     1890     9,938          13,380
     1900     10,912         18,161
     1910     11,592         25,779
     1920     11,449         30,985
  Line Graph for Value of US
Exports 1850-1905 (in millions)
  Year    Total    Year   Total Exports
         Exports


  1850    $152     1880       $853
  1855    $275     1885       $784
  1860    $400     1890       $910
  1865    $234     1895       $921
  1870    $451     1900      $1,499
  1875    $606     1905      $1,660
    BAR Graph for Average
     Annual Income, 1890
                   Avg. Annual
Person or Group    Income
Andrew Carnegie    $25,000,000
Postal Employees   $ 878
Clerical Workers   $ 848
Ministers          $ 794
Gas & Electric     $ 687
Railroad Workers   $ 560
Manufacturing      $439
Coal Miners        $406
School Teachers    $256
    Consumer Price Index
•  Today: 219
•  1890: 9.0
•  Formula to make the Historical Price
   the “current” price using the CPI:
1. Divide the most current index
   number (202.5) by the historical
   year’s number (9.0)
2. Take this figure (22.5) and multiply it
   by the price in the historical year
   (256—teachers salary) and the sum
   is ($5,760)
      The Gilded Age
• 1873 author Mark Twain “coined”
  the phrase
• Something that is gilded looks
  like gold but only on the outside
• Used to describe US society
  because industrialists made
  great fortunes, led extravagant
  lifestyles, but there was
  corruption & social unrest
  brewing beneath
      The Gilded Age

• Carnegie, Rockefeller, Vanderbilt
  were all entrepreneurs
• Amassed huge fortunes
• Became philanthropists (person
  who gives money to support a
  worthy cause)
Robber Barons or Captains of
            Industry?
• Critics call industrialists robber
  barons
  –Wealthy by ruthless means
  –Lavish lifestyle
  –cruelly drove out small
   businesses
  –raised prices
  –robbed the nation of natural
   resources
  –worked their workers to death
  Robber Barons or Captains
         of Industry?
• Supporters think industrialists were
  captains of industry
  – despite shady dealings, helped
    usher in modern economy
  – worked hard & took advantage of
    new technology
  – innovative ideas to finance business
  – created jobs for millions
  – helped living standards rise
     • mostly for wealthy
     • workers continued to struggle…
LL Response: A time when…

 Write a short paragraph (5-10
  sentences) describing a time when
  you were unhappy with certain
  conditions—at work, school, or
  home—that you had to deal with.
 How did you try to change those
  conditions? Were you successful?
  Why or why not?
     The Rise of Unions



Combatants of Big Business
    Unions Vocabulary
• Working class    • Division of labor
• Child labor      • Sweatshop
• American         • Tenement
  Federation of
                   • Labor union
  Labor (AFL)
• Haymarket        • Strike
  Affair           • Socialism
• Homestead        • Collective
  Strike             bargaining
• Pullman Strike   • anarchist
 Learning Log Chart (2 pgs)

Conditions of the   Strikes Erupt
 Working Class        Nationwide




Labor Movements     Mixed Success
               Pg 24:
     Our Class vs. Labor Unions
               Classroom Experience   Historical Experience
Similarities
Differences