APUSH II: Unit 1 Chapter 19 The Incorporation of America

1. APUSH II: Unit 1Chapter 19The Incorporation of America Essential Question: How did the “Second Industrial Revolution” transform the U.S. during the Gilded Age? How effective were politicians in meeting the needs of Americans during the Gilded Age? How did problems in gov’t (patronage & coinage), the economy (depression of 1893), & agriculture (Populists) impact the politics of the Gilded Age?

2. Second Industrial Revolution • American Economy is growing at a rate of 4% per year • In 1865, 4th largest economy • By 1900, largest economy in the world • How? • Metal ore development, timber, coal, oil • Growth of Cities • “Gilded Age”

3. Growth of Railroads • 1865 – 1900: mileage increases five times • 35,000 to 193,000 miles of track • Huntington, Stanford, Vanderbilt, Gould • Creation of Time Zones • Creation of TRUSTS

4. “Laissez-faire” Adam Smith, The Wealth of Nations Invisible hand of market should guide business No government regulation Rise of Monopolies

5. The 2nd Industrial Revolution The Industrialization of America

6. The Business of Invention • 19th-century inventors led to an “Age of Invention”: • Cyrus Field’s telegraph cable • Business typewriters, cash registers, adding machines • High-speed textile spindles, auto looms, sewing machines • GeorgeEastman’sKodakcamera • Alexander G. Bell’s telephone

7. The Business of Invention • New technologies allowed for increased industrial production • Newmachineswereincorporated into the first assembly lines which allowed for continuous & faster production of goods • The railroad linked every region of America & allowed for a mass consumption of goods

8. The Second Industrial Revolution was fueled by 3 industries: railroads, steel, & oil

9. Problems of Growth • But, the railroad industry faced problems due to overbuilding in the 1870s & 1880s: • Mass competition among RRs • RR lines offered special rates & rebates (secret discounts) to lure passengers & freight on their lines • Pooling & consolidation failed to help over-speculation

10. Revolutions in Technology and Transportation • The post-Civil War era saw a tremendous boom in business and technology. Inventors like Alexander Graham Bell and Thomas Edison brought new products to Americans. • By 1900, Americans had produced over 4,000 cars. • In 1903, the Wright Brothers pioneered airplane flight. • Railroads stimulated development, creating a national market. • Industry grew at a pace previously unimaginable.

11. Section 1 The Rise of Industry, the Triumph of Business

12. Problems of Growth • RR bosses asked bank financier J.P. Morgan to save their industry: • Morgan created a traffic-sharing plan to end wasteful competition • “Morganization” fixed costs, cut debt, stabilized rates, issued new stock, & ended rebates • Created a “board of trustees” • By 1900, 7 giant (centralized & efficient) rail systems dominated

13. The Steel Industry • Steel transformed world industry: • Allowed for taller buildings, longer bridges, stronger railroad lines, & heavier machinery • Andrew Carnegie’s company made more steel than England • Carnegie converted his steel plants to the Bessemer process & was able to out-produce his competition & offer lower prices

14. Rockefeller and Oil • Petroleum also changed industry • New industrial machines needed kerosene for lighting & lubricants • JohnD.Rockefellermonopolized the oil industry, lowered oil costs & improved the quality of oil • By 1879, Standard Oil ruled 90% of all U.S. oil & sold to Asia, Africa, & South America

15. Standard Oil: The Monster Monopoly?

16. Gilded Age Industrialization • During the Gilded Age, American businesses were transformed: • Massive corporations replaced small, family businesses • New technology, transportation, marketing, labor relations, & efficient mass-production • By1900,theU.S.wasthemost industrializedcountryintheworld

17. The Business of Invention • Thomas Edison, the “Wizard of Menlo Park,” created the 1st research lab in New York • Edison Illuminating Co was the to 1st use electric light in 1882 • Tesla’s alternating current (AC) allowed electricity to travel over longer distances & to power streetcars & factories

18. Mechanization Takes Command • The second industrial revolution was based on the application of new technology to increase labor productivity and the volume of goods. • By the early 20th century, the United States produced one-third of the world’s industrialgoods. • Continuous machine production characterized many industries. • Coal provided the energy for this second industrial revolution. • Assembly line production, beginning with meat-packing, spread throughout Americanindustry.

19. Integration, Combination, and Merger • Business leaders tried to gain control over the economy and to enlarge the commercial empire. • Periodic depressions wiped out weaker competitors and enabled the survivors to growto unprecedented heights. • Businesses employed: • vertical integrationto control every step of production • you buy the cow, the dairy, the milkers, the pasteurizers, the homogenizers, the bottlers, and the delivery trucks. • horizontal combinationto control the market for a single product • you buy all the delivery trucks

20. Sherman Anti-Trust Act • 1890 – allowed the government to investigate and prosecute trusts • Trusts – Invented by Standard Oil Company the year before to avoid state-monopoly laws • Prevent monopolies and unfair market manipulation • Hampered unionization instead, but did not prevent the continued consolidation of American business until after 1907

21. The Gospel of Wealth • American business leaders saw their success as an indication of their own personalvirtues. • A “gospel of wealth” seemed to justify ruthless financial maneuvering by men likeJay Gould. • More acceptable was the model presented by Andrew Carnegie, a self-made multimillionaire who brought efficiency to the steel industry. • Captains of industry seemed to fulfill the lessons of Charles Darwin—survival of the fittest.

22. New Forms of Business Organization • Newtypesofbusinessorganization were used to increase profits: • “Trusts” & “holding companies” integrated various businesses under 1 board of directors • Vertical & horizontal integration maximized corporate profits • Frederick Taylor’s “scientific management” emphasized time efficiency & mid-level managers

23. New Forms of Business Organization • Business leaders used a variety of ideas to justify their wealth: • The “Gospel of Wealth” argued that it is God's will that some men attained great wealth • Social Darwinism taught that natural competition weeds out the weak & the strong survive • Were monopolists “captains of industry” or “robber barons”?

24. Section 2 Labor in the age of Big Business

25. Industrial Workers • Industrial work was hard: • Laborers worked long hours & received low wages but had expensive living costs • Industrial work was unskilled, dangerous, & monotonous • Gender,religious,&racialbiases led to different pay scales • These conditions led to a small, but significant union movement

26. Early American Labor Unions • The Eight Hour League demanded 8 hours for work, 8 hours for leisure, and 8 hours for sleep. • Crumbled after deaths at the Haymarket Square “Riot” • In 1868, Knights of Labor formed to help all type of workers escape the “wage system” • Lead by Terence V. Powderly

27. AFL • The most successful union, the American Federation of Labor (1886) led by Samuel Gompers: • Made up only of skilled labor & sought practical objectives (better pay, hours, conditions) • Included 1/3 of all U.S. laborers

28. Panic of 1873 • Abandonment of Gold standard • Labeled the “Crime of ’73” over 20 years later in 1896 Presidential race • Black Friday (1869) and Flu Epidemic (My Antonia) • Jay Cook and Company went bankrupt virtually overnight • 1876 – 14% unemployment • Start of Long Depression

29. The “Era of Strikes”, 1870-1890 • During the Chicago Haymarket Strike (1886), unionists demanded an 8-hr day; led to mob violence & the death of the Knights of Labor • The Great RR Strike of 1877 shut down railroads from WV to CA & resulted in hundreds of deaths • The Homestead Strike (1892) resulted from a 20% pay cut at one of Carnegie’s steel plants

30. Section 3 The New South

31. An Internal Colony • Southerners like Henry Grady envisioned a “New South” that would take advantageof the region’s resources and become a manufacturing center. • Northerninvestors bought up much of the South’s manufacturing and natural resources, often eliminating southern competition. • Southern communities launched cotton mill campaigns to boost the textile industry. • By the 1920s northern investors held much of the South’s wealth, including the major textile mills. • For the most part, southern industry produced raw materials for northern consumption and became the nation’s internal colony.

32. Southern Labor • Most southern factories were white-only or else rigidly segregated. • African Americans were allowed low-paying jobs with railroads while African-American women typically worked as domestics. • With the exception of the Knights of Labor, white workers generally protected their racial position. • Wages were much lower for southerners than outside of the region, a situation thatwas worsened by widespread use of child and convict labor.

33. The Transformation of Piedmont Communities • The Piedmont (the area from southern Virginia through northern Alabama) developedinto a textile-producing center with dozens of small industrial towns. • As cotton and tobacco prices fell, farmers sent their children into the mills to pay offdebts. • Gradually they moved into these company-dominated mill villages. • Mill superintendents used teachers and clergy to inculcate the company’s work ethicin the community. • Mill village residents developed their own cultures, reinforced by a sense ofconnection to one another.

34. Section 4 The Industrial City

35. “Old Immigrants” • Immigration slowed down after 1850s • No more Irish Potato famine • Irish, Germans, Scandinavians – “Old Immigrants” • Only 2.6 million Old Immigrants fled to US cities after 1860 • Pattern of staying in cities (Church and social networks)

36. New Immigrants • From 1880-1920, 23 million immigrants came looking for jobs: • These “new” immigrants were from eastern & southern Europe; Catholics & Jews, not Protestant • Many Jews came to escape the Pogroms in Eastern Europe • Kept their language & religion; created ethnic newspapers, schools, & social associations • Led to a resurgence in Nativism & attempts to limit immigration

37. “New Immigrants” • “New Immigrants” came from Central and Southern Europe and settled in primarily urban areas • Made the US an urban nation • From 1870 to 1900, American cities grew 700% due to new job opportunities in factories • “New Immigrants” were from rural areas: both those of Europe and America • Immigrants came because of economic opportunities. • Like “Old Immigrants”, “New Immigrant” groups tended to live near their countrymen and to work in similar trades

38. Immigration to the U.S., 1870-1900

39. The influx of ethnic nationalities led to a new “melting pot” (“salad bowl”?) national image Foreign-born Population, 1890

40. The Urban Landscape • ½ of NYC’s buildings were tenements which housed the poor working class • “Dumbbell” tenements were popular but were cramped & plagued by firetraps • Slums had poor sanitation, polluted water & air, tuberculosis • Homicide, suicide, & alcoholism rates all increased in U.S. cities • Several cities experienced devastating fires, allowing architects to transform theurban landscape as part of the City Beautiful movement. • The extension of transportation allowed residential suburbs to emerge on the periphery of the cities • In the 20th century, suburbs are going to be increasingly middle class and white, while inner cities will be lower class and multi-cultural

41. Jacob Riis’ “How the Other Half Lives” (1890) exposed the poverty of the urban poor

42. The Lure of the City By 1920, for the 1st time in U.S. history, more than 50% of the American population lived in cities

43. Skyscrapers and Suburbs • By the 1880s, steel allowed cities to build skyscrapers • The Chicago fire of 1871 allowed for rebuilding with new designs: • John Root & Louis Sullivan were the “fathers of modern urban architecture” • New York & other cities used Chicago as their model

44. Skyscrapers and Suburbs • Cities developed distinct zones: • Central business district with working- & upper-class residents • Middle-class in the suburbs • Electric & elevated rapid transit made travel easy

45. The City and the Environment • Despite technological innovations, pollution continued to be an unsolved problem. • Overcrowding and inadequate sanitation bred a variety of diseases. • Attempts to clean up city water supplies and eliminate waste often led to: • polluting rivers • building sewage treatment plants • creating garbage dumps on nearby rural lands • Progressive reformer are going to start tackling these issues in the 1890s

46. Urban Political Machines • Urban “political machines” were loose networks of party precinct captains led by a “boss” • Tammany Hall was the most famous machine; Boss Tweed led the corrupt “Tweed Ring” • Political machines were not all corrupt (“honest graft”); helped the urban poor & built public works like the Brooklyn Bridge

47. Boss Tweed Tweed Courthouse—NY CountyCourthouse was supposed to cost $250,000 but cost $13 million. But the Tweed Ring catered to immigrants by building the Brooklyn Bridge & hosting holiday barbeques

48. Section 5 The Rise of Consumer Society

49. “Conspicuous Consumption” • The growth of consumer goods and services led to sweeping changes in American behavior and beliefs. • The upper classes created a style of “conspicuous consumption“ in order to display their wealth to the world around them. • They patronized the arts by funding the galleries and symphonies of their cities. • They built vast mansions and engaged in new elite sports. • Mansions and wealthy hotels had great open windows so that people passing by could marvel at the wealth displayed within the building. • Women adorned themselves with jewels and furs.

50. Expanding the Market for Goods • New techniques for marketing and merchandising distributed the growing volume ofgoods. • Rural free delivery enabled Sears and Montgomery Ward to thrive and required thatthese companies set up sophisticated ways of reaching their customers. • Chain stores developed in other retail areas, frequently specializing in specific consumer goods. • Department stores captured the urban market. • Advertising firms helped companies reach customers.