Questions to look for: Questions to look for:

What transportation problems did Texans face before the building of railroads?

How did Texans encourage companies to build railroads in their state?

How did railroads change Texas?

Explain the significance of: Buffalo Bayou, Brazos, Colorado Railway Co., & Southern Pacific

What is one negative way railroads affected Texas?

Texas Railroads before Texas Railroads before the Civil War the Civil War

RR’s not in Texas before the 1850’s

Texas lacked reliable year-round methods of moving from one place to another

Few roads in Texas- unstable & muddy when it rained; Steamboats could not be used year-round because the rivers became too shallow

Economy could not grow because of transportation problems

Sending good was slow & expensive

1st rail line was the Buffalo, Brazos, & Colorado Railroad; first trains in Texas used this line in Sept. 1853

By 1861, 9 railroads operated in Texas

Expansion of RailroadsExpansion of Railroads

Cities & counties sold bonds

Railroads received: tax breaks, land grants

By 1882, R.R. companies had received over 30 million acres of land

Linked to the nation Linked to the nation

1880’s companies from other states bought several TX RR’s

Southern Pacific became one of the most important RR companies in TX; 1883- S.P. completed the 2nd rail line to stretch from one side of the U.S. to the other

Railroads Change Texas Railroads Change Texas Benefits of Railroads Boosted economy with

faster/cheaper shipment of goods in & out of Texas

Reduced travel time

Growth of cities towns such as San Antonio, Ft. Worth, Houston, & Dallas

Problems with Railroads Racism towards

railroad workers

Unfair business practices to increase profits

Questions to look for: Questions to look for:

What was the 1st bank in Texas? Why?

Why did Texas begin to mistrust banks?

What effect did laws of 1904 regarding state-chartered banks have on Texas?

What is a bank panic?

Look for characteristics of Commercial, National, Private, & State-chartered banks.

If you owned a bookstore, which bank would you most likely ask a loan for your business? Why?

Banking in Texas Banking in Texas Banking in Early Texas

Texans had bad experiences with banks

1822- Mexican gov’t set up Banco Nacional de Texas; the 1st bank in Texas

The bank issued bank notes; 1 yr after opening the banks refused to trade bank notes for coins; they would only trade for new paper currency

1835 lawmakers created commercial banks; Texas turned to private firms such as McKinney, Williams & Co.

Banking in the State of TX.

1845 – Texas tries to limit power of banks by outlawing the operation of banks in Texas; private firms could lend money (loans) but not issue money

After the C.W. Texas’s new constitution banned state-chartered banks; 1869 the new constitution had no laws barring the bank

In 1876 state-chartered banks were banned again

Four Types of Banks State-chartered banks:

- Regulated by the state government

- Became legal in 1904

Commercial Banks:

- Give loans & other services to businesses

-Loans are repaid by the borrower with interest

National Banks: - Regulated by the national government-was required to raise $50,000 before doing business in Texas -Texas laws limited the spread of these

banks

Private Banks:-Became the most

common type of bank in Texas after the C.W.

- Not regulated at all - Most did business

with wealthy cotton growers

Texans Demand Better Texans Demand Better Banks Banks

The call for a state banking system In the 1890’s the main

goal of Texas Bankers Association as to change laws against state-chartered banks

1904- Texas voted to allow state-chartered banks; which gave Texas state & national banks

1907- Texas lawmakers created a Dept of Insurance & Banking to supervise the banks

The growth of banks # of banks in Texas grew

quickly; 1909= more than 300 state banks

Banking panics (where many customers try to withdraw their money at the same time) led to banking reforms

1909- a law was passed that forced banks to set aside a sum of money to use during a panic

State banks grew the fastest; by 1920 there were more than 1,000 banks in Texas

Questions to look for:Questions to look for:

What were the 1st industries to develop in Texas?

Explain the significance of Kirby Lumber Company

Explain the significance of cottonseed oil

What new industries grew rapidly after the Civil War?

Early Industries Early Industries

By the 1850’s most Texans were still farmers, Texas was rich in natural resources but there was little industry

Gristmills: until the mid 1800’s most Texas farmers grew corn; later Texans grew a vast amount of wheat ; milling became one of the 1st industries

1st gristmills were located in Spanish missions

Milling Wood: Texas was also rich in trees; as early as the 1810’s sawmills operated in Texas

The Union blockade during the Civil War forced Texans to set up their own war industries

Growth of Industry Growth of Industry after the C.W.after the C.W.

Gristmills continued to play an important role in TX Economy

RR’s enabled mills to export their products cheaply

Flour & gristmills compromised the top industry in TX in 1880

By 1900 this industry was the 3rd largest in TX

After the Civil War, loggers began cutting trees; they sent the logs to sawmills where they shipped finished lumber to towns along the Gulf Coast

John Henry Kirby was most responsible for the growth of the lumber industry

Kirby Lumber Co became one of the largest companies in the state; 13 sawmills, 300,000 acres of forest

Growth of New Growth of New Industries Industries

New industries included: textiles, cottonseed oil, mining, meatpacking

Textiles: During the C.W., Texans had to produce their own clothing; after war cotton mills made fabric in Hempstead, Houston, Waco, Tyler, & Gonzales

Cottonseed oil: Farmers learned to use every bit of the cotton; the oil was used for fertilizing crops, cooking & lighting homes

Coal & Iron: Commercial mining began for coal began in the 1880’s; TX coal was poor in quality; TX had few high quality iron deposits & the industry did not thrive

Other industries: Salt mines, meatpacking plants, produced wine, liquor, & beer