Government Intervention in 19th Century Economy

1. First DBQ – DUE 01.23.15 Big Business

2. Question To what extent and for what reasons did the policies of the federal government from 1865 – 1900 violate the principles of laissez faire, which advocated minimal government intervention in the economy? Consider with specific reference to the following three (3) areas of policy: railroad land grants, control of interstate commerce, and anti-trust activities.

3. Remember your formatting • INTRO – thesis statement; mentioning your three subtopics • BODY PARAGRAPHS – 3 of them • 1) RR Land Grants • 2) Control of Interstate Commerce • 3) Anti-Trust Activities • CONCLUSION – restate your main ideas; wrap up the essay

4. Document A • Amasa Walker; American Economist • The government is best which governs least • Gov’t needs to stay out of economic affairs. • Laissez-faire supporter • This can go in any subtopic paragraph.

5. Document B • Daniel Knowlton – New York City Merchant • Laissez Faire supporter • Government should only protect the people’s safety, let the people do their business and trade • Could go into any subtopic

6. Document C • National Population and Federal Government Spending and Debt • Population increases • Government is spending more money • BUT the government is getting less and less out of debt • The government is giving away money, and land, and people are getting richer and pouring money back into the economy • As the population grows, the country gets richer…the government made money off the land it gave away

7. Document D • RR Land Grants • This is an example of government intervention • Stimulus • The government took land, subsidized it, and gave it to corporations to BUILD RRs. • NOT Laissez Faire – government intervenes by taking the land and giving it away • Sub-Topic - RR Land Grants

8. Document E • National Agricultural Congress of farmers’ representatives • Farmers are calling for businesses to BE FAIR • The farmers are calling for government intervention to make corporations charge fair rates for shipping • Against Laissez Faire • Subtopic – RR Land grants; or Interstate Commerce

9. Document F • Congressional Record – U.S. Congress • Congress is stopping the giving of land to businesses by 1878. • This is Laissez-Faire • They give land away for a few years and then they back off • Sub-topic – RR Land Grants

10. Document G • J.K. Lutrell; Democratic Congress • Criticizing the government for giving away the land and causing a gap between the rich and poor • Subtopic – RR Land grants

11. Document H • Jay Gould – RR Financier – RICH! • Supports government intervention to give the land away • He believed it was helping the country and the people by providing capital for the nation

12. Document I • Charles Francis Adams Jr.; RR official • The Railroad Problem • It makes the few rich; creates these socioeconomic gaps • Who can solve the problem? The government • The governments need to intervene and make laws to solve the problem • Subtopic – RR Land Grants

13. Document J • Interstate Commerce • U.S. Senate • RRs are fueling the rich and hurting the not so rich; fueling monopolies and such • Congress must secure fairness and equity through legislation • Result – Interstate Commerce Act • Subtopic – interstate commerce

14. Document K • William C. Oates • Democratic Congressman • AGAINST government intervention referring to the Interstate Commerce Act • If the government starts intervening in business it will diminish our democratic values that makes the U.S. special • Laissez Faire supporter • Subtopic – Interstate commerce

15. Document L • Interstate Commerce Commission • Defending government intervention • They are saying that the government is not attacking free enterprise, but instead unfair business practices • Subtopic – interstate commerce

16. Document M • Political Cartoon • 1889 • The fatmen are trusts; rich entrepreneurs and corporations; they look mean and intimidating • Standing behind the senators as they make laws • BIG BUSINESS HOLDS THE REAL POWER • Criticizing trusts and monopolies • Subtopic – Anti-trust activities

17. Document N • John Sherman • Lead politician pushing the Sherman Anti-Trust Act • Supports government intervention to protect FAIR COMPETITION and fair business practices • Subtopic – Antitrust activities

18. Document O • President Grover Cleveland • Second Inaugural Addy • Cleveland is supporting government intervention to protect FAIR business • Subtopic – Antitrust Activities • PS TRUSTS = “combinations”

19. Document P • Chief Justice M.W. Fuller • Supreme Court defends the U.S. Government’s right to regulation and stop monopolies and trusts • Subtopic – Anti-Trust Activities

20. Document Q • U.S. government data • Mergers in Manufacturing and mining • Federal Prosecutions under the Sherman Anti-Trust Act by President • Mergers – companies coming together – forming a trust • 1895 – 1900 – goes up dramatically then drops • Sherman Anti-Trust is not being consistently and successfully enforced • Presidents didn’t enforce this law consistently • This shows the difficulty the government has in finding a good balance of intervention in U.S. economics • Sherman Anti-Trust Act will not be thoroughly enforced until Roosevelt’s presidency (1901 – 1909) • Subtopic – Anti-Trust Activities