Presentation on theme: "How did the Panic of 1893 affect the Presidential election of 1896? Hint: your answer should use words like “gold standard”, “bimetallists”, and “run on."— Presentation transcript:
How did the Panic of 1893 affect the Presidential election of 1896? Hint: your answer should use words like “gold standard”, “bimetallists”, and “run on banks”.
Natural Resources Oil is discovered and drilled. Coal and iron ore deposits are plentiful. The process for refining iron is improving and new uses for steel are developing. New Inventions Thomas Edison came up with practical uses for electricity that were safe and economical (like the light bulb). Alexander Bell and Thomas Watson invented the telephone & Christopher Sholes invented the typewriter lead to a world wide communication network.
Factories can be located wherever owners chose (near rail lines, roads, etc.) Women enter the workforce in greater numbers. Workers’ standard of living will improve (somewhat).
National Network Transcontinental railroad finished in 1869. The number of rail miles increases by 6X in less than 25 years. -Made travel reliable -Aided in westward expansion -Led to the creation of time zones -Many immigrants are employed laying tracks Corruption Union Pacific forms its own construction company (Credit Mobilier). They granted contracts at 2 or 3 times the actual cost, giving stockholders huge profits (they donated shares of the company to 20 members of Congress) Railroads misuse their land grants by not selling land to farmers Started to charge extra fees for short hauls
They sponsored laws to regulate the railroad called Granger Laws Munn VS. Illinois (1876) Supreme Court ruled that Granger Laws were constitutional. Background: RR owners sued that the states do not have the power to regulate the RR system (like setting maximum freight rates). Issue: constitutionality of the Grange Laws. Decision: they are constitutional based on public interests (which can be regulated by state legislatures) Impact: states could regulate the RR to benefit farmers and consumers. Interstate Commerce Act (1887) The Supreme Court overturned the Munn V Illinois ruling in 1866 due to Interstate Commerce being regulated by states (Gibbons V Ogden = interstate commerce can only be regulated by the fed. government) In 1887, Congress passed the act which set up a 5 person Interstate Commerce Commission (ICC) to regulate the RRs. The ICC has a difficult time doing this because of the long legal process and resistance from the RR companies. (RR owners have large sums of money)
George Pullman Build factories for different kinds of railroad cars (sleepers and cargo) Built a town to house his workers (very strictly regulated) Strikes turned violent in 1894 Andrew Carnegie Built Carnegie Steel Co. Attempted to control entire steel industry by vertical and horizontal integration Basically invented the practical use of the “merger” 1901, sold the company which produced the largest portion of US Steel John D. Rockefeller Established Standard Oil Co. End of 1880, Standard controlled 90% of oil refinery business Drove out competitors by selling oil at low prices Made billions of dollars by paying his employees low wages Just like Carnegie, he gave away millions
Name 3 tycoons and their industrial markets AND name 2 inventors and their contribution to the industrial movement.
The process of “natural selection” will weed out the weakest It was adapted to fit the new American business model Used by many to justify laissez fair economics in America
Major Industrialists used shrewd tactics to gain wealth and power. These people were called robber barons by the critics. Many of these industrialists gave millions to charitable causes. However, many didn’t see the charity worth it. Congress passed the Sherman Antitrust Act, making it illegal to form a trust that interfered with free trade between states or countries.
The Protectors of Our Industries. Which statement most accurately expresses the main idea of this 1883 cartoon? (1)Most workers in the United States can become business owners. (2)Business owners have achieved wealth through their own hard work. (3)Social classes arise from the natural differences in the abilities of individuals. (4)The wealthy are benefiting from the efforts of the working class. This was #23 on June 2014’s test!