The American Promise: A History of the United States Fourth Edition CHAPTER 18 Business and Politics in the Gilded Age 1870–1895

Old Industries Transformed, New Industries Born Railroads: America’s First Big Business Largest railroad network – 193,000 miles – first big business – federal, state, and local government funds Jay Gould and his competitors – stocks – “pools” Andrew Carnegie, Steel, and Vertical Integration Pittsburgh – control of every aspect of steel business – cut costs to boost productivity – exacted from workers – low wages and dangerous working conditions John D. Rockefeller, Standard Oil, and the Trust Controlled 9/10s of oil business – established Standard Oil Company – undercut competition – rebates from railroads – trusts – stocks in various refinery companies – govt. opposition – holding company – 90% of oil business – Ida B. Tarbell - McClures

Old Industries Transformed, New Industries Born Mass Marketing, Advertising, and Consumer Culture Railroad catalyst for industrial revolution - new entrepreneurs Gustavus Swift, John Henry Heinz – new products – Campbell Soup, Quaker Oats – consumer culture with new products and aggressive advertising New Inventions: The Telephone and Electricity Alexander Graham Bell – Thomas Alva Edison

From Competition to Consolidation J. P. Morgan and Finance Capitalism J. P. Morgan – American Banking - “money trust” – General Electric – U. S. Steel – over capitalization – short term profit instead of long-term innovation and growth – acquired Carnegie Steel – corporate consolidation Social Darwinism and the Gospel of Wealth Charles Darwin, Herbert Spencer , William Graham Sumner Justification for economic inequality – “The Gospel of Wealth” Laissez-Faire and the Supreme Court No interference of government in economic affairs Conservative Supreme Court and laissez-faire

Kerosene Lamp

Politics and Culture Political Participation and Party Loyalty Spoils System Party affiliations – spectacle Religion Sectionalism and the New South Old Confederate South – changed with migration to cities industrialization Gender, Race, and Politics Suffrage for African American males – no elimination of racial barriers with women’s issues - lynching Women’s Activism Stanton and Anthony – National Woman Suffrage Association – Woman’s Christian Temperance Union

Presidential Politics Corruption and Party Strife Political corruption –party factionalism – political reform Party bosses – Roscoe Conkling – “Stalwarts James G. Blaine – “Mugwumps” and Half-Breeds” Hayes between reform and spoils men James A. Garfield and Chester A. Arthur Garfield’s Assassination and Civil Service Reform Garfield assassinated by Charles Guiteau – attach on Spoils System – Pendleton Civil Service Act of 1883 Reform and Scandal: The Campaign of 1884 Republican candidate - Blaine – Democratic candidate – Grover Cleveland – campaign of mudslinging and scandals – negative publicity against Union and Catholicism – Cleveland wins

“Another Voice for Cleveland”

Economic Issues and Party Realignment The Tariff and the Politics of Protection Republicans reduced tariffs, later increased – farm and non farm sector differences Railroads, Trusts, and the Federal Government Need for regulation of railroads and action against trusts - Interstate Commerce Act – Sherman Antitrust Act - The Fight for Free Silver Gold v. silver – 1873 Congress voted down minting and purchase of silver – 1890 Silver Purchase Act – 1893 SPA repealed - gold standard Panic and Depression Silver issue led to panic and depression