Rise of Industrial America

1. Rise of Industrial America Essential question: What were the results of early 19th century industrialization in America?

2. The Transportation Revolution By 1832, nearly 2,400 miles of road connected most major cities Erie Canal, 1820s, begun in 1817 and completed in 1825

3. Principle canals by 1840 • The canal systems extended shipping and connected cities.

4. The “iron horse” wins! (1830) 1830, 13 miles of track built by Baltimore & Ohio (B&O) RR. By 1850, 9,000 miles of RR track By 1860, 31,000 miles of RR track

5. The Railroad Revolution Immigrant labor built the Northern railroads Slave labor built much of the Southern railroads The work of building the first railroads was accomplished with human muscle and dogged endurance. This construction train from the 1850s illustrates the laborious process of moving earth by hand and the fairly crude state of antebellum railroading

6. The Northern Industrial “juggernaut” Unstoppable force

7. Causes and Effects of Industrialization Categorize each of the following 20 terms either a cause or an effect of American Industrialization, Unrestricted immigration Growing population New inventions Education for the masses High tariff discovery of large deposits of raw materials in the West Large-scale cotton production in the South Higher standard of living Monopolies Growth of cities Stable banking system New industrial products and services American leadership of the developed nations Governmental aid to RR Development of new sources of power Foreign investments in American factories Need to protect rights of consumers/workers Widespread use of the corporation as a form of business organization Lengthening of canals and waterways Mass production techniques

8. How does the cause and effect chart illustrate the following generalizations? • Specialization increases interdependence. • Regions become interconnected and interdependent through communication of ideas and sharing of resources. • Industrialization brought both positive and negative changes. • Mass production society is closely related to mass consumption. • Government incentives promote industrialization.

9. Business Growth through combination Merger: Two or more corporations become one. Assets are combined with the surviving corportation.

10. Pools: competitors agree to limit their operations and share markets outputs or profits. Such agreements are illegal. Total market

11. Trusts company and shareholders assign title to their shares to a trustee organization which can vote these shares. Trustees can elect directors to company board and gain control of these companies. Not considered illegal unless “restraint of trade” is shown.

12. Holding company A corporation that owns the majority of stock or securities of one or more corporations for purposes of control rather than as an investment.

13. Vertical Trusts An organization that controls all or part of a series of operations within an industry, from processing raw materials to retailing the finished products. ore mines Blast furnaces and rolling mills coal mines shipping transportation executive and sales offices

14. Distribution of wealth • During the American Revolution, 45% of all wealth in the top 10% of the population. • 1845 Boston top 4% owned over 65% of the wealth. • 1860 Philadelphia top 1% owned over 50% of the wealth. • The gap between rich and poor was widening!

15. What’s happening in America by 1850s? Regional specialization