1. APUSH II: Unit 1 Chapter 19 The 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 Industrialization of America
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
George Eastman’s Kodak camera
Alexander G. Bell’s telephone 13

7. The Business of Invention
New technologies allowed for increased industrial production
New machines were incorporated 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 13

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 8

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. The Rise of Industry, the Triumph of Business
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 8

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
Henry Bessemer (& William Kelly) turned iron into steel in 1850s—process allowed for mass production of steel 9

14. Rockefeller and Oil Petroleum also changed industry
New industrial machines needed kerosene for lighting & lubricants
John D. Rockefeller monopolized 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 12

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
By 1900, the U.S. was the most industrialized country in the world

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 industrial goods.
Continuous machine production characterized many industries.
Coal provided the energy for this second industrial revolution.
Assembly line production, beginning with meat-packing, spread throughout American industry.

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 grow to unprecedented heights.
Businesses employed:
vertical integration to control every step of production
you buy the cow, the dairy, the milkers, the pasteurizers, the homogenizers, the bottlers, and the delivery trucks.
horizontal combination to control the market for a single product
you buy all the delivery trucks
Refer to “Standard Oil,” p. 555

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 personal virtues.
A “gospel of wealth” seemed to justify ruthless financial maneuvering by men like Jay 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
New types of business organization 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
Led to monopolists like Carnegie, J.P. Morgan, & Rockefeller 13

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”? 14

24. Labor in the age of Big Business
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, & racial biases led to different pay scales
These conditions led to a small, but significant union movement
Low wages ($ /year but living cost $600); railroad injury rate 1 in 26, death rate 1 in 399; Composition of work force in 1900: 20% women (in 296 of 303 jobs) 10% of girls & 20% of boys had jobs (“child labor” meant ↓14 yrs)
all children poorly paid, but girls less than boys; Earning comparisons: Adults > Children; Men > Women; Skilled > Unskilled; Protestants > Catholics or Jews; Whites > Blacks & Asians; Blacks worked menial jobs; Chinese worked on Pacific Coast; often discriminated against (Chinese Exclusion Act in 1882)

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 17

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”,
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 advantage of the region’s resources and become a manufacturing center.
Northern investors 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 that was worsened by widespread use of child and convict labor.
Refer to “Processing Tobacco,” p. 562

33. The Transformation of Piedmont Communities
The Piedmont (the area from southern Virginia through northern Alabama) developed into 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 off debts.
Gradually they moved into these company-dominated mill villages.
Mill superintendents used teachers and clergy to inculcate the company’s work ethic in the community.
Mill village residents developed their own cultures, reinforced by a sense of connection 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 , 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
Resurgence of the Nativism of the 1850s
4 of every 10 Americans today can trace their ancestry through Ellis Island’s gates

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.,

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

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 the urban 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
Refer to “The Bowery at Night,” p. 566

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
NY County Courthouse supposed to cost city $250,000 but ended up costing $13million.

47. Boss Tweed
Tweed Courthouse—NY County Courthouse 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. The Rise of Consumer Society
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 of goods.
Rural free delivery enabled Sears and Montgomery Ward to thrive and required that these 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.

51. The Midwest Made Meat for America
A new-and-improved “market revolution”: More regional specialization made mass production & mass consumption possible
(Chicago→meat, St Louis→beer, & Minneapolis→grain)

52. New Methods of Marketing
Marketing became a “science”:
Advertising firms boomed
Department stores like Macy’s & Marshall Field’s allowed customers to browse & buy
Chain stores like A&P Grocery & Woolworth’s “Five & Ten”
Mail-order catalogues, like Montgomery Ward sold to all parts of America 14

53. Self-Improvement and the Middle Class
A new “middle class” developed its own sense of gentility.
Salaried employees were now part of the middle class.
Aided by expanding transit systems, they moved into suburbs providing both space and privacy but a long commute to and from work.
Middle-class women devoted their time to housework.
New technologies simplified household work.
The new middle class embraced “culture” and physical exercise for self-improvement and moral uplift.
Middle-class youth found leisure a special aspect of their childhood.

54. Life in the Streets
Many working-class people felt disenchanted amid the alien and commercial society. To allay the stress, they established close-knit ethnic communities.
Chinese, Mexicans, and African Americans were prevented from living outside of certain ghettos.
European ethnic groups chose to live in closely-knit communities.
Many immigrants came without families and lived in boarding houses.
For many immigrant families, home became a second workplace where the whole family engaged in productive labor.
Refer to “Orchard and Hester,” p. 570

55. Immigrant Culture
Despite their meager resources, many immigrant families:
attempted to imitate middle-class customs of dress and consumption
preserved Old World customs
Immigrant cultures freely mixed with indigenous cultures to shape the emerging popular cultures of urban America.
Promoters found that young people were attracted to ragtime and other African-American music.
Promoters also found that amusement parks could attract a mass audience looking for wholesome fun.

56. Cultures – in Conflict, in Common
Section 6
Cultures – in Conflict, in Common

57. Social Changes in the Gilded Age
Urbanization changed society:
The U.S. saw an increase in self-sufficient female workers
Most states had compulsory education laws & kindergartens
150 new public & private colleges were formed
Cities set aside land for parks & American workers found time for vaudeville & baseball

58. Education
Stimulated by business and civic leaders and the idea of universal free schooling, America’s school system grew rapidly at all levels.
Only a small minority attended high school or college.
Supported by federal land grants, state universities and colleges proliferated and developed their modern form, as did the elite liberal arts and professional schools.
Professional education was an important growth area.
Women benefited greatly by gaining greater access to colleges.
Vocational education also experienced substantial expansion.

59. African American Education
African Americans founded their own colleges and vocational schools.
Howard University, established for African Americans, had its own medical school.
Educator Booker T. Washington founded the Tuskegee Institute to press his call for African Americans to concentrate on vocational training.
Washington encouraged African Americans to learn practical, moral, and industrial trades.
Teachers and domestic servants were trained through these new schools.
Refer to “George Washington Carver,” p. 572

60. Leisure and Public Space
In large cities, varied needs led to the creation of park systems.
The working class and middle class had different ideas on using public spaces.
Park planners accommodated these needs by providing the middle-class areas with cultural activities and the working class with space for athletic contests.
Regulations such as no walking on the grass, picnicking, or playing ball without permission were enforced in many parks.

61. Frederick Law Olmstead
Frederick Law Olmstead’s design for Central Park was completed in 1873, though he always considered Prospect Park in Brooklyn his greatest accomplishment

62. National Pastimes
Middle and working classes found common ground in a growing number of pastimes.
Ragtime, vaudeville, and especially sports brought the two classes together in shared activities that helped to provide a national identity.
After the Civil War, baseball emerged as the “national pastime” as professional teams and league play stimulated fan interest.
Baseball initially reflected its working-class fans both in style of play and in organization but soon became tied to the business economy.
By the 1880s, baseball had become segregated, leading to the creation of the Negro Leagues in the 1920s.
Refer to “Baseball,” p. 574

63. Conclusions: Industrialization’s Benefits & Costs

64. American Industrialization
Benefits of rapid industrialization:
The U.S. became the world’s #1 industrial power
Per capita wealth doubled
Improving standard of living
Human cost of industrialization:
Exploitation of workers; growing gap between rich & poor
Rise of giant monopolies 19