1. THE GILDED AGE: What does gilded mean?
To be covered in gold…implies NOT solid gold

2. America in the Gilded Age
Term coined by Mark Twain
Vast wealth gained from industrialization
Wealthy industrialists - “capitalists”
(ROBBER BARONS)
Carnegie, Rockefeller,Morgan, Vanderbilt

3. America in the Gilded Age
Under the “Gild”:
- Massive immigration
- Expansion of industry following Civil War
- Loss of skilled labor-rise of unskilled labor
- Long hours, low wages, and dangerous working conditions
- Expanding gap between rich and poor

4. trust: legal devices that controlled several, rival companies through one director
Cartoon #1

5. What was the relationship between big business and government in the Gilded Age?

6. a company or group having exclusive control over a commodity or service
Cartoon #2

7. Rise of Big Business: Growth and Consolidation$ $ $
VANDERBILT’S
MILLIONS
Cartoon #3
FIELD’S
MILLIONS
LUMBER
WORKERS
$6/WEEK
CLOTH
WORKERS
AVERAGE
$3/WEEK
LINEN
WORKERS
Rise of Big Business: Growth and Consolidation

8. America Changes From artisan to factory From piecework to wage work
From family farms to mechanized farms
From water powered factories to coal
From rural to urban

9. Business Changes Efficiency Assembly line production Mechanization
Streamlined businesses - Created managers
Made workers work faster (in a more dangerous work environment)
Mechanization
Machines replace workers (especially skilled workers)
McCormick reaper
Carnegie’s coal hauler

10. Innovation & Mechanization
Steel Plow
McCormick reaper
Trains/Refrigerated train cars

11. By 1893, the US was the world’s leading industrial power, out-producing its 3 closest competitors combined.

12. Three Reasons for Growth: 1
Three Reasons for Growth: 1. Abundant resources: Iron, coal, minerals, etc 2. Government protection (High tariffs) 3. Loans/subsidies to businesses from the government

13. All trains MUST pass and PAY any toll we DEMAND.
Railroads
Cornelius Vanderbilt
Made money from investors and state/national government
Set prices and schedules
Common track size and time zones
Railroads began to see the need for uniformity to improve their business-Time zones were created ad track gauges were unified.
All trains MUST pass and PAY any toll we DEMAND.
Cartoon #4

15. Populist Party
Emerged from beliefs that other political parties were corrupted by big business
Often combined interests of farmers and laborers
Platform:
unlimited silver coinage
Government control of railroads and tele- communications
legal protection of labor unions
Graduated income tax

16. Business Strategies Vertical Integration
Buy the whole process of production and distribution
Example: Carnegie owned coal mines, coke fields (iron), steel mills, trains, etc
Horizontal Integration
Buy all of the same level of business
Example: Rockefeller bought up all oil refineries and consolidated them into the Standard Oil Corporation

17. Buy property/goods not to use but to sell later for a profit
Lack of Regulation
Buy property/goods not to use but to sell later for a profit
Anyone with money was allowed to start a railroad - Created cartels or trusts
Speculation and selling “watered stock”
Horizontal Integration
- were created to improve the organization of large businesses
- were associated with abusive practices and often used their size to exclude competition

18. Cartoon #5

19. Banking Industry J.P. Morgan and Salmon P. Chase
Stabilized the national economy
Banks loaned people’s money out for interest

20. Oil Industry Cartoon #6 Oil refineries- making oil useful!
Standard Oil Company founded
Standard Oil owned 90% of oil refining in the U.S.
Set prices and controlled output

21. Steel Industry Cartoon #7 Andrew Carnegie Rose up from poverty
Used Bessemer Process to make steel in all factories
Gospel of Wealth
Salt Trust
1882-9/10 of nation’s steel went into rails and 1/4 of lumber
Lumber
Trust
Sugar
Trust
Oil Trust
Steel
Trust

22. Business and Politics Cartoon #8 Spoils system still around
Trusts and political machines control politics
Massive corruption
Kickbacks
Cartoon #8

23. Cartoon #9

24. Some attempts at regulation:
1. Interstate Commerce Act (1887)
-Created Interstate Commerce
Commission
2. Sherman Anti-Trust Act-1890