INDUSTRIALIZATION IN THE LATTER 1800S AND THE IMPACT UPON THE UNITED STATES

The last half of the 1800s was a period of INDUSTRIALIZATION in the United States. 

"Boring" is said to describe the presidents of the period. 

Mark Twain called the period the "Gilded Age."

Characteristics of the politics of the period:

1 The parties were relatively even in their vote-getting.

2. No president between 1877 and 1897 saw his party control both houses of Congress for a full 4 year term.

3. Between 1872 and 1896, no president won a majority of the popular vote.

4. Republican Party strength was in the Northeast and Midwest and had the African-American vote.  It was a divided party, divided between STALWARTS, led by Senator ROSCOE CONKLING of New York and HALF-BREEDS, led by JAMES G. BLAINE of Maine.

5. The Democrats  voting strength was in the South and West and among the party "machines."  There was a second wing of the Democratic Party that was made up of the big city political machines and loyal immigrants.  It strongly supported states' rights and a decentralized, limited government.  They believed in white supremacy, AND BOTH PARTIES TRIED TO DISFRANCHISE MINORITIES, blacks in the South. 

6. Corruption often marked the politics.

During this period, the federal government did not interfere in the lives of the people.

Railroads were an integral part of this growth.  The growth in railroads also affected the steel industry as the railroads were buying steel for the rails and rail cars.  In 1882, the rr’s were buying 90 percent of the steel being produced.

The national government provided large amounts of money for the building of the rr’s.  Much money was to be made, and this led to the nation’s first “big” businessmen, men such as J.P. Morgan, Andrew Carnegie, John D. Rockefeller, and Jay Gould.    Men such as these will be referred to as “Robber Barons.” 

 

New business practices developed as industrialization grew.  The concept of the BROKER developed as there was need for investors in these businesses.  The broker helped find these investors.  J.P. Morgan was the most famous investment banker of the period.  The predominant ECONOMIC PHILOSOPHY of the period was LIMITED GOVERNMENT.  Of course, this was to the advantage of the big businessmen.

 

Three Philosophies of the period:  LAISSEZ FAIRE, SOCIAL DARWINISM, and THE GOSPEL OF WEALTH.

 

LAISSEZ FAIRE:  the ideal promoted by Adam Smith, a Scottish thinker and professor…..wrote of this idea in THE WEALTH OF NATIONS in 1776.  His argument was that self interest is what drives individuals and he believed that individuals should be left alone by government in order to achieve their potential in business.  He believed the public interest was best served by GOVERNMENT STAYING OUT OF BUSINESS. 

 

SOCIAL DARWINISM:  a philosophy based on Charles Darwin’s theory that those species that adapted to changing environments were what survived.  He believed that nature was such that the strongest would survive.  This belief was applied by the big businessmen to justify their creating monopolies by putting the small businessman out of business.  Herbert Spencer coined the phrase, “survival of the fittest” in reference to his belief that COMPETITION is natural and therefore, the strongest will survive. 

 

THE GOSPEL OF WEALTH:  the idea that man was supposed to work hard and become successful.  Success was good and was NOT AGAINST the principles of Christianity.  ANDREW CARNEGIE and HORATIO ALGER were strong proponents of this idea.  

 

OPPONENTS OF THESE PHILOSOPHIES:  Edward Bellamy in his book, Looking backward, advocated a UTOPIAN society in which the government owned the means of production and distributed wealth equally among all citizens.  He also strongly attacked the abuse of the worker by the industrialists.  Henry George, in his book, Progress and Poverty, attacked the growing materialism in our society and the growing gap between rich and poor.  Advocated a 100 percent tax on land sales. 

 

To try and stop the abuses of big business due to consolidation and monopolies, states regulated railroads.  COURTS OFTEN SIDED WITH THE BUSNESSES.  The public begins to push Congress for REGULATION.  The INTERSTATE COMMERCE ACT and THE SHERMAN ANTITURST ACT were responses to this.  Very little impact was made by made by these but the ESTABLISHED THE PRECEDENT for FEDERAL REGULATION OF INDUSTRY. 

 

During this period, there was a growing movement of people from agricultural work into FACTORY work.  This means there was a GROWING DEPENDENCE upon someone else for one’s wages rather than being self-employed.  By 1900, 2 out of 3 Americans depended on their wages coming from someone else.

 

There was very little mobility for the worker.  This affects attitudes toward immigrants and women in the workplace.  There will be more women working outside the home and child labor also increased. 

 

Some inventions resulting from the industrialization:  typewriter, cash register, adding machine, flush toilet came from England in 1870s, the tin can, refrigerated railcars, telegraph, telephone (AT&T Company formed). 

 

Thomas Edison, the Wizard of Menlo Park, had many inventions, incandescent light bulb being only one of many. 

 

American shopping changed as the result of the changes in business.  The large DEPARTMENT STORE was introduced.   Macy’s was born in New York City, Sears Roebuck and Company, Montgomery Ward, Great Atlantic and Pacific Tea Company (first chain store), Woolworth”s “five and ten cent” store.  These are just a few. 

 

American advertising boomed. 

 

A DEMAND FOR REGULATION OF THE BIG BUSINESSES GREW AMONG THE AMERICAN PUBLIC and government regulation began with the RAILROAD. 

 

MASS TRANSIT will develop as people move to the cities.  DISEASE grows in the cities as overcrowding occurs and poor sanitation. 

 

The POLITICAL MACHINE was born…….a political organization in the city that was run by a very powerful, influential party BOSS.  Develop strong followings among the poor and immigrant.  One of the most famous was the TWEED RING in New York City. WILLIAM MARCY TWEED, “Boss” Tweed, headed this political machine.  He controlled city government in NYC and CORRUPTION was widespread due to his control.  He will be brought to justice by the CARTOONS of THOMAS NAST.

 

American entertainment changed and grew.  The VAUDEVILLE HOUSE was the most popular form of public entertainment.  AMUSEMENT PARKS developed and were popular, the most famous was CONEY ISLAND in New York.  BASEBALL was the MOST POPULAR of the new sports. 

 The major political issues of the period were PATRONAGE,  the MONEY SUPPLY, and  HIGH TARIFFS.

PATRONAGE was the handing out of jobs based on party loyalty, not on qualification.

The MONEY SUPPLY issue revolved around the following: 

1. whether or not to print more paper money unbacked by gold or silver.  Results in the formation of the GREENBACK PARTY.

2. the coinage of more silver money which had been stopped by Congress in 1873 due to so little silver being mined and this meant that you could not pay your bills in silver; tis meant that the value of  gold only determined the value of money. 

The TARIFF ISSUE WAS WHETER OR NOT TO CONTINUE A HIGH TARIFF TO PROTECT American industry.   Democratic western farmers wanted reduced tariffs and Republican businessmen supported high tariffs.

Conditions for FARMERS became worse during this period.  The GRANGE was developed by farmers to help their condition.   The Greenback Movement was another effort.   the Greenback Labor Party was formed.  Farmer’s Alliances were also formed to help farmers. 

 

THE PEOPLE’S PARTY, also known as the POPULISTS, was formed.  One unique idea that they promoted was the GRADUATED INCOME TAX.

 

The ABUSES resulting from America’s growing industrialization led to one of the nation’s largest REFORM movements, THE PROGRESSIVE MOVEMENT.