1. Economic Cycles: The Panics of 1873 and 1893
Isy Pacini
APUSH 1B

2. Background and Status Quo
Industrial growth: railroads, iron, coal, electricity, steel, oil, banks.
Laissez-faire conservatism
Gospel of Wealth
Social Darwinism; survival of the fittest
Effects of technological development on worker/work-place.

4. Capitalism- an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.
Monopoly- the exclusive possession or control of the supply or trade in a commodity or service.
Trust- an organization that manages money or property for another group or person.
Key Terms

5. Jay Cooke- an American financier who helped finance the Union war effort during the American Civil War and the postwar development of railroads in the northwestern United States.
J.P. Morgan- A financier, philanthropist and one of the fathers of corporate finance in the United States.
William Jennings Bryan- Democratic Party nominee for president in the election of  Known as the “Boy Orator,” Bryan was the greatest champion of inflationary “free silver” around the turn of the century.
Andrew Carnegie- One of the nations first large scale philanthropists. Helped build the steel empire.
John D. Rockefeller- Industrialist who founded the Standard Oil Company.
Key People

6. Panic of 1873
Info
Panic of Defined as the financial crisis that triggered a depression lasting from
Caused what is known as the Long Depression.
Was known as the worst depression in US History to date.
Causes
Post War Inflation
Trade Deficits
Economic Dislocation from Europe
Strain on Bank Reserves

7. Panic of 1873: Political Backlash
Voters turned against the Republican Party.
There was a change in the global political climate.
North really hated reconstruction.

8. Panic of 1873: Social Backlash
Rail lines went bankrupt.
Unemployment dropped to 8.25%
Over 18,000 businesses failed.
Salaries were reduced.
Major loss of jobs.
Start of major immigration boost.

9. Panic of 1893
Info
Panic of Defined as the economic collapse of the same year set off by business collapse.
Known as, once again, the worst economic depression in US History to date.
Causes
Argentina
Overbuilding of Railroads
Flooding of Silver into the Economy
Inflation

10. Panic of 1893: Political Backlash
Huge debates over bimetallism.
Strengthened the following of the Populist Party.
A gold rush would start the country on the road to economic growth.

11. Panic of 1893: Social Backlash
Left millions without work.
25% in Pennsylvania
35% in New York
43% in Michigan
Great social unrest stemmed from President Cleveland’s inability to end the depression.
Strikes

12. Labor Movements Organizations Knights of Labor
Were the first large national union.
Sought to organize all workers in all industries and to form labor- management cooperative businesses.
American Federation of Labor
Restricted membership to those with similar interests; only skilled workers that were difficult to replace if they went on strike.

13. Labor Movements Strikes Rail Road Strike of 1877 Homestead Steel
Railroad strike ended when federal troops attacked workers
Homestead Steel
1892 strike at Carnegie's Homestead Steel plant outside Pittsburgh turned violent
Pitched battle between workers and armed security left 12 men dead
8000 state militia intervened to crush strike
Steel industry remained union-free until 1930s
Pullman Strike
In 1894, Pullman cut wages at his factory but did not reduce rents for workers living in Pullman Town
Workers went on strike, gained support of national American Railways Union
Strike ended in failure after government troops intervened and courts ruled it illegal
Labor Movements

14. Primary Source

15. Primary Source Analysis From the AP Gods
Document Information
Shows trusts as oversized.
Shows public entrance to the Senate closed.
Shows monopolists lined up at monopolists’ entrance.
Shows some senators looking back toward the trusts.
Shows sign saying “This is a Senate of the monopolists by the monopolists and for the monopolists.”

16. Primary Source Analysis From the AP Gods
Document Inferences
The Senate (government) is controlled by big business.
People have no control over the Senate because senators are not directly elected.
Monopolists (trusts) are wealthy and powerful.
Trusts control a great many industries.

19. Works Cited http://www.loc.gov/pictures/resource/ppmsca.29133/
The Causes of the Panic of 1893
becoming/index.html
q1.pdf
Wall Street and the Fruited Plains by James T. Wall
The 100 Most Significant Events in American Business by Quentin A. Skrabec, Jr.
America’s Gilded Age: An Eyewitness History by Judith Clark
The Annals of America Volume 10
hall/
  ression.pdf