Industrialization And The “Gilded Age”

America Industrializes

• After Civil War – “Second Industrial Revolution” – rapid industrialization

• Occurred during the decades after Civil War

New Inventions and Technology

• Bessemer Process – made production of steel more economical – Wood --- Iron - Steel

– Before -1 Day = 5 tons of steel

– After – 15 Minutes = 5 tons of steel

Steam Engines

• Steam engines powered pneumatic drills, cutting deeper into the Earth– 1860 – 14 million tons

of coal– 1884 – 100 million tons

of coal• Oil drilled in

Pennsylvania in 1859– First internal

combustion engine used gasoline, from oil

Electricity

• Alexander Graham Bell created telephone to increase communication

• Thomas Edison combined gas and metal filament to create electric light bulbs.

• Electricity replaced steam and coal in factories

• Also used on streetcars and subways

• Each new invention increased people’s standard of living.

Growth of Railroads• Transcontinental Railroad completed in 1869 at Promontory Point, Utah• Built in the west by Chinese Immigrants

– Worked 12 Hour Days, and 6-Day Weeks– Made $26-$35 a month

• Trip across U.S. was reduced from several months, to a few weeks.

A National Market

• Railroads now linked both coasts of the United States

• Raw goods and materials are linked to larger markets

• National Producers could make and ship goods cheaper than local producers

• Creation of Department Stores, chain stores and mail order houses.

Railroad Impact on Population

• Between 1850 and 1900 the population more than tripled.

• High Birthrates and increased immigration• Created a favorable condition for business

expansion– Demand for goods increased– Supply of cheap labor increased

New Types of Business Organizations

• Before Civil War, most businesses were owned by individuals or partners

• After the war, corporations became popular– Separate “person”– Allows for many people to pool money together

Entrepreneurship and Philanthropy

• By 1870’s entrepreneurs began to have a dominant influence on American business

• Lowered the price of goods and improved their quality

• Made HUGE profits for themselves• Known as “Captains of Industry” because they

forged modern industrial economy• Also known as “robber barons” – used ruthless

tactics to destroy competitors and keep wages low

Andrew Carnegie

• Scottish Immigrant, began his life penniless

• After Civil War, he invested in ironworks and built steel mills in Pittsburgh

• Used profits to buy more mills and created Carnegie Steel Corporation

Carnegie

• Controlled all phases of steel production– Iron ore fields, coal mines, steel

mills and ships– Paid low wages, and crushed

attempts at unions in his mills

• Later in life, he gave away $350 Million to build libraries and endow universities

John D. Rockefeller

• Built an oil refinery in Cleveland, Ohio

• In 1870 founded the Standard Oil Company

• By 1879, he controlled 90% of oil refining in the U.S.

• Created a monopoly– Forced the railroads to

pay “secret” low rates, and charged his competitors higher rates

Interstate Commerce Act (1887)

• Railroads charged higher rates to local farmers on shorter routes

• U.S. Supreme Court said only national government could regulate interstate commerce

• The Interstate Commerce Act prohibits unfair practices by railroads

• Created Interstate Commerce Commission to enforce the act

Sherman Anti-Trust Act

• Was created to stop monopolies• Marked a significant change in Congress’

attitude towards big business– Before – Laissez-faire – little government

interference – After – More control by Congress

Conditions of Labor

• Average workday – 10-14 hours

• Average work week – 6 Days

• Average pay - $3-$12 a week

• Even lower wages for immigrants, women and children

Poor Conditions

• Workers became nothing more than a cog in a companies machine

• Work became less skilled, more repetitive and boring

• Very little if any safety.• Thousands killed or injured every year

Child Labor

• Textile Mills and Coal Mines used children to preform special tasks– Smaller hands fit well into small parts of machines

• 1/5 Children worked outside the home in 1910• Work = no school = little chance of increased

standard of living

Rise of Unions

• Knights of Labor – joined together all skilled and unskilled workers

• Demanded an 8 hour work day, higher wages and safety codes

• Grew rapidly in 1880’s, but fell apart after failed strikes

American Federation of Labor (AFL)

• Founded by Samuel Gompers in 1881• Sought “Closed Shops” where only union

members could be hired• AFL became weakened by the exclusion of

unskilled workers• By 1910 less than 5% of American workers

were unionized

Government and Unions

• Business leaders often contributed to politicians campaigns

• Politicians saw workers as greedy and businesses as good for American prosperity

Government and Unions

• Between 1880 and 1900 there were 20,000 strikes involving 6 million workers

• Government saw this as a disruption of the American economy

• Supreme Court ruled that unions were illegal combinations in restraint of trade

Haymarket Strike of 1886

• Most Americans believed that businesses should have the right to hire and fire employees as they pleased

• Haymarket Affair of 1886- labor leaders were blamed when a bomb exploded during a demonstration of strikers in Chicago.

• 7 Policemen killed and 67 severely wounded

Immigration

Immigration

In the late 19th century immigrants were coming to the U.S. in large numbers

Reasons for immigrating: (‘push’ and ‘pull’ factors) Escape oppression Poverty War Religious/ethnic persecution Freedom Economic opportunity Cultural ties

Shifting Patterns of Immigration

Prior to 1880 Most immigrants came from Northern Europe

(Great Britain, Ireland, Germany)The NEW IMMIGRANTS (1880-1920)

Immigrants came from Southern in Eastern Europe in much larger numbers (Poland, Italy, Austria-Hungary, Greece, Russia)

The Immigrant Experience Most immigrants entered the U.S.

through Ellis Island (New York), or Angel Island (California) Traveled in steerage – an open room

below the water line often with awful conditions, disease spread rapidly, & all they owned with them in a single bag

Initial Hardships Mostly settled in inner city ethnic

ghettos Neighborhoods of same nationality,

same language, same religion Immigrants felt more comfortable around

people with the same customs as themselves

Little or no money Discrimination from native-born

Americans Isolated from mainstream American life

The Process of Americanization

Americanized – learning to dress, speak, and act like other Americans

Assimilated – adopting the American way of life, culture

Melting pot – mixture of different cultures and ethnicities blended together and re-shaped in to the dominating culture

Americanization often led to conflict

The Rise of Nativism As the immigrant

population continued to grow, so did the hostility towards them from the native-born Americans

Nativism – favoring the interest of native-born people over the interest of foreign-born people

Many nativists were concerned the most with the immigrants taking valuable jobs away from other Americans

Early Restrictions on ImmigrationChinese Exclusion Act –

1882First federal law to

restrict immigration to the U.S.

Temporarily banned the immigration of Chinese workers

Restrictions on Chinese immigrants who were already in the U.S.

Liberalism

• Strongly anti-business, pro labor and pro-reform.

• More open to change.• Conservatism would be the opposite. Pro-

business, anti-labor and anti-reform.

Urbanization

The movement of people from the countryside to town and cities

Gentlemen’s Agreement

• 1907-1908• Japan’s government agreed to limit emigration

of unskilled workers to the United States• In return the United States agreed to repeal

the San Francisco segregation order of 1906

Urbanization – The Growth of Cities

Demography – the study of population See map pg. 82 ‘The Growth of U.S. Cities 1865-

1900’1865 only 2 U.S. cities has populations of more than

500,000By 1900, 40% of Americans lived in cities

Urbanization Factors

• Introduction of new farming equipment & technology – Cyrus McCormick’s reaper – cut and bundled grain

– reduced the number of farm hands needed– Industrialization in the cities provided for many

new jobs• Factories• Mines & workshops• Transport services

Cities Face New Problems Urbanization also led to physical changes of the land

Trees & fields were replaced by wood & brick buildings Municipal (city) authorities were unable to adequately deal with the

growing population Overcrowding and Congestion

Essential services like clean water, sewer, garbage collection, adequate public schools were hard to deliver

Tenements – single-room apartments often without heat or lighting Lived in by whole families Often shared on toilet, shower

Inadequate Transportation Social Tensions – between the wealthy and the poor who often

lived next door to each other

Political Machines Organized groups that controlled a political party and city

governments Often provided jobs, help finding housing, and other types of

services to immigrants and the poor in exchange for their votes Helped immigrants become naturalized citizens Would provide cash handouts to help the poor & immigrants

Political bosses Leaders of the political machines

Patronage – power to appoint government jobs, often appointed those people who helped him get elected to that office – a reward system for loyalty

Political Machines cont…….

Boss Tweed of Tammany HallHead of New York City’s

political machineControlled thousands of

city workersHad influence over schools,

hospitals, & lawmakersStole millions of dollars

from the city through bribery & corruption

Municipal Graft and Scandal

• Graft – the illegal use of political influence for personal gain

• Once the political machines candidate was in office, corruption and fraud often followed

Pendleton Civil Service Act

• 1883• Authorized a bipartisan civil service

commission to make appointments to federal jobs through a merit system based on candidates performance on an examination

• Led to closer ties with big businesses – for donations