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Questions to look for:  What transportation problems did Texans face before the building of railroads?  How did Texans encourage companies to build.

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Presentation on theme: "Questions to look for:  What transportation problems did Texans face before the building of railroads?  How did Texans encourage companies to build."— Presentation transcript:


2 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?

3 Texas Railroads before 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  1 st 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

4 Expansion 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

5 Linked to the nationLinked 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 2 nd rail line to stretch from one side of the U.S. to the other

6 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

7 Questions to look for:  What was the 1 st 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?

8 Banking in Texas Banking in Early Texas  Texans had bad experiences with banks  1822- Mexican gov’t set up Banco Nacional de Texas; the 1 st 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

9 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

10 Texans Demand Better 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

11 Questions to look for:  What were the 1 st 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?

12 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 1 st industries  1 st 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

13 Growth of Industry 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 3 rd 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

14 Growth of New 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

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