Big Business and American Industrialization

1. Big Business and American Industrialization Analyze and identify the growth and effect of big business and industrialization on American Society

2. The Indian Wars 1870-1890 • Causes- • Culture: Native Americans believe that nobody owns the land; Europeans see the land as natural and go west to claim it. • Gold Rush of 1849 and 1858- Settlers move west to claim land and find their fortune. Thousands pour into Native American lands. • Railroads- For the first time thousands can travel from the Atlantic to Pacific Coast. Thousands move west • Treaty of Fort Laramie- The U.S. tried to contain Native Americans in defined areas with land 1. Broken treaties- The U.S. was constantly breaking these treaties and allowing settlers into Indian territory so most Native Americans refused to follow these treaties.

3. Reasons for Native American Resistance • Land Available- Native Americans resisted the approach of American settlers because there was no place to go anymore. 1. Great Plains-Area stretching from Kansas to Wyoming was originally a reservation for Native Americans. 2. Buffalo- the main food supply of Plains Indians who use the newly introduced horse to hunt them down; gave up farming. 3. Reservations- Usually the poorest and worse land in an area, which caused many to struggle to survive and rebel against the U.S. Native American view of land- not their’s to own directly opposite Europeans. 1. Europeans view of land- if its not settled or farmed then it’s open for them to claim. Homestead Act of 1862- grants 160 acres to each family and leads to a mass migration to the West of almost one million settlers.

4. Key Battles of the Indian Wars • Sand Creek- U.S. Army troops ambush and massacre 150 Cheyenne and Arapaho 1. During the Indian Wars the U.S. Army routinely killed defenseless people, which resulted in similar revenge tactics by Native Americans. 2. “The only good Indian is a dead Indian” • Bozeman Trail-Sioux Nation upset over settlers constantly passing through their land ambush and kill soldiers. • Red River War- second uprising by the Sioux Nation caused by the discovery of gold in the Black Hill Mountains of South Dakota (sacred site to the Sioux).

5. Key Battles cont’d… • Battle of Little Big Horn- Last major victory of the Indian Wars led by Sitting Bull and Crazy Horse. 1. General George Custer-he wanted the glory of defeating the Sioux Nation and attacks a Sioux camp. 2. Massacre-7th Cavalry was killed by the Sioux Nation and scalped. 3. 1881- Sitting Bull surrenders to the U.S. Army rather than let his people starve in war. • Ghost Dance-ritual to regain lost lands spreads among Sioux on Dakota reservation; Sitting Bull is killed in 1890 on the reservation. • Battle of Wounded Knee-last major battle and end of the Indian Wars, 300 unarmed Sioux are massacred by the U.S. Army.

6. Populist Movement • Reason Behind it- organized to address the needs of farmers/poor/disenfranchised in America who are being bled dry by banks, railroads and big business. • Populism—movement of the people; Populist Party wants reforms • Economic Ideas: increase money supply, graduated income tax, federal loans • Political Ideas: Senate elected by popular vote; secret ballot; 8-hour day • Legacy of the Populist Movement- 1. Powerless can organize and have impact on American Society 2. Ideas become a part of American Society in the 20th century

7. The Panic of 1893 • Government’s gold supply depleted, leads to rush on banks 1. Businesses, banks collapse causing panic which leads to an economic depression. 2. Silver or Gold-people argue for each one as the backing of paper money. • Bimetallism- Idea proposed in which both silver and gold are used to back currency 1. Gold standard:backing currency with gold only 2. Paper money considered worthless if cannot be exchanged for metal. 3. Silverites: bimetallism would create more money, stimulate economy. 4. Gold bugs: gold only would create more stable, if expensive currency

8. Cause of American Industrialization1865-1900 • Natural resources- the U.S. had all the essential raw materials- coal, iron, oil, copper, lead and timber • Labor Supply- Between 1865-1900 hundreds of thousands of immigrants poured into the United States • Transportation- By the late 1800’s the U.S. had the largest most advanced network made it the largest market in the world. • Capital- Money poured into the country to develop new industries and trade.

9. Cause of American Industrializationcont’d… • New Technologies- Between 1865-1900 an explosion of new ideas and technologies made life easier. • Government Support- The U.S. supported big business with protective tariffs, little regulation, little taxes. • Railroads- U.S. government gave out huge land grants and loans to railroads. • Entrepreneurs- The U.S. was filled with people who built vast industrial and commercial businesses out of scratch during this era.

10. Positives More Jobs Inventions made life more comfortable and easier Growth of Cities Philanthropy Developed New Industrial Services/Products Higher Standard of Living Negatives Only a few got wealthy on the backs of the workers Living and working conditions in cites were poor and unhealthy Slums emerge in cities Overcrowded cities Rise in crime rates No sewage systems Low wages and long hours High poverty rates Rise of Industries in America

11. Impact of the Railroad on the growth of America • Railroads- had the biggest impact more than any other technological invention of the 19th century. • Chinese Labor- thousands are brought in to build the railroads in the West and Great Plains. 1. Conditions- harsh, little protections, disease, high death toll. • People- see the railroad as romantic, give them a chance to start their lives fresh. • Transcontinental Railroad-The first coast to coast railroad was built in 1869 and met in Promontory Point, Utah. 1. Competition- The Union Pacific Railroad company built track from East to West. While the Central Pacific built track East from California through the Rocky Mountains. 2. Additional Lines- By the end of the 1800’s five transcontinental lines were built connecting the East and West coasts of America.

12. Positive Impacts 1. Settlement- allowed for the settlement of the west and expansion of America 2. Connections- railroads connect isolated towns, promote trade and interdependence. 3. Trade- towns begin selling huge supplies of their products nationally. Iron, Steel, coal, glass and timber companies grow to meet the demand of the railroad. 4. Time Zones-24 different time zones established to regulate railroads, soon adopted by the world. 5. Business- development of the modern stockholder company and regulations. Negative Impacts 1. Prices-Monopolies develop after the panic of 1893, they set high rates and kept farmers in debt. 2. Corruption-Railroads sell the land they received from government land grants to businesses not settlers. 3. The Interstate Commerce Act of 1886- passed to control the practices of the railroads. 4. Cornelius Vanderbilt-Robber-baron of the Railroad industry he wanted to crush competition and develop a monopoly. 5. George Pullman- created the railcar industry and factory system that controlled all aspects of a workers life. Impact of Railroads on America

13. Steel Industry • Bessemer Process- this puts air into iron and creates steel. Which is much stronger and lighter than iron. • Andrew Carnegie-A Scottish immigrant he would be among the famous business leaders of the late 1800’s to change American businesses. By 1900 he controls almost three-fifths of all steel. 1. Technology- Carnegie used the latest tech to beat his rivals and corner the market in the sale of steel. 2. Vertical Integration-a company controls every stage of the industrial process; from raw materials to finished products. 3. Horizontal Integration- control competing companies 4. Philanthropy-Carnegie was the first major businessman to donate large portions of his income to helping the poor and underprivileged. They become Robber-Barons.

14. Social Darwinism- people use the idea of Charles Darwin that only the strong survive and apply it to life and business. 1. Rich are rich because they are better than the poor who are lazy and pathetic. Laissez-Faire Capitalism- the idea that the government should not regulate business practices but the law of supply and demand should control business. Monopolies- companies control everything from the beginning to the end of their businesses. 1. Competition- eliminate it by buying your competition out or selling too low and drive them out of business. 2. Prices- keep them high to make the most money possible. 3. Wages- keep them low to make the most money possible. New Ideas in Business

15. Standard Oil Company • John D. Rockefeller-he used new technologies and efficient practices to gain control of 90% of the oil industry. 1. Trust- a mixture of companies put together by Rockefeller that are separate on paper but united under one board, it controlled every phase of Standard Oil. By controlling the supply, shipping, manufacturing and pricing Standard Oil became a huge monopoly. 2. Profits- by the time of his death Rockefeller was worth 900 million, made money by paying low wages and cutting prices to drive out competition. • Antitrust Movement- 1. Sherman Antitrust Act 1890- trusts and monopolies are illegal if they interfere with free trade. No teeth until the Progressive Era in the early 1900’s.

16. Thomas Edison- in Menlo Park, New Jersey he establishes his research laboratory. This made inventions a team thing rather than a single person idea. 1. Incandescent light bulb 2. Phonograph 3. Motion Picture Camera 4. Motion Pictures Other Key Inventions and Inventors. 1. Typewriter 2. Cash register 3. Kodak Camera 4. Fountain Pen 5. Gillette Razors 6. AC current 7. Bell Phone 8. Elevator Technology Changes Everything

17. Workers demand rights • Work Hours- most work 12-16 hours a day 6 days a week; no vacation, no injury compensation, no sick leave. 1. Jobs- repetitive and mind numbing. 2. Wages- determined by supply and demand always more workers than needed so pay was very low. 3. Families- everyone worked to support the family including children. 4. Women- worked in sweat shops, required little skill and paid almost nothing. 5. Children- were put to work in small places in factories, mines, newspapers and messengers.

18. Labor Unions • Samuel Gompers- founds the American Federation of Labor (AFL) a craft union with people from all skilled trades. 1. Success- Uses collective bargaining to win: higher wages, shorter workday, improved working conditions. 2. Most unions ban Blacks, women and children. Industrial Workers of the World (IWW)-Organized by radical unionists, socialists; include African Americans 1. Socialism- when the government controls business and property; equal distribution of wealth. 2. Dignity- unskilled workers feel labor unions give them dignity and solidarity.

19. Industrial Warfare • To fight the organization of labor unions, Business owners struck back 1. Lockout- closing the factory to break a labor movement before it starts 2. Blacklists- Pro-union employees circulated and banned from jobs. 3. Strikebreakers- hired thugs who beat up workers on strike 4. Yellow-dog contracts- workers sign this when hired and agree to never join a union. 5. Government support- almost always the national guard or army called out to break a strike if it turned violent.

20. Railroad Strike of 1877- railroad companies cut wages but a strike brakes out and spreads to over 500,000 workers in 11 states. 1. President Hayes- uses the military to put it down and over 100 people die Homestead Strike 1892- a manager in a Carnegie Steel Plant uses lockout, strikebreakers and blacklists to break a union after he cut the wages of workers by 20%. 1. Union steel workers don’t organize again until 1937. Pullman Strike- lays off 3,000 workers, cuts wages but keeps the rent at the same rate. 1. Fired- Pullman fires the head of the workers unions. 2. Federal troops brought in to break the strike. 3. Results- almost all workers fired and blacklisted by the Pullman company. 4. Union Leaders- see that conventional means can’t work and turn to more radical, violent ideas to gain Union rights Major Strikes

21. Immigration changes America • Between 1870-1920 20 million immigrants come to the United States 1. New Farm Machines- European farm workers lose jobs to new technology 2. European cities- overcrowded and high unemployment 3. Religious Persecution- Jews and others attacked in European countries. 4. Religious/Political Freedom- immigrants wanted to live in a “free” country. 5. Jobs- plenty of jobs available in factories in U.S. cities. 6. Transportation- cheap costs of one way trips to U.S.

22. Old Immigrants- come from Western Europe (England, Germany, Scandanavia) and speak English and Protestant. 1. High level literacy and skills made it easier to accept them into American society. New Immigrants- come from southern and eastern Europe (Italian, Greek, Russians, Polish) and are Roman Catholic, Jewish and Greek Orthodox. 1. Most are unskilled, poor, illiterate and young men. Old Immigrants vs. New Immigrants

23. Immigration cont’d.. • Ellis Island-chief U.S. immigration station, in New York Harbor. 1. Immigrants given physical exam by doctor; seriously ill not admitted 2. Inspector checks documents to see if meets legal requirements 3. Between 1892–1924, about 17 million immigrants processed at Ellis Island

24. Immigrant Neighborhoods • Cooperation leads to Survival- immigrants move to areas of the country where there are a large number of similar immigrants. 1. Share- religion, cultural values and language. 2. Melting Pot- U.S. develops the idea of abandoning old culture an blending into American culture; immigrants refuse leads to backlash.

25. Backlash to Immigration • Nativism- people who favor native born Americans; believe Anglo-Saxons are superior to other immigrants. 1. Religion- objection over Jews and Catholics. 2. Support- Labor Unions, Racists and anti- religious groups. • Chinese Exclusion Act 1882-places a ban on all new immigrants from China • 1897 Literacy Bill- only literate could enter the U.S., vetoed by the President.

26. Urbanization • Urbanization- the move from county to cities was caused by Industrialization. 1. Immigrants- mainly settle in cities were jobs and neighborhoods located. 2. African-Americans- immigrate to North to find jobs escape discrimination. Over 1 million move North and West to cities. JIM CROW LAWS • Problems in Cities 1. Water- no indoor water in 1860’s; developed but rare by the late 1800’s. 2. Sanitation- Streets are open garbage dumps, sewer lines develop in the early 1900’s. 3. Police and Fire- not enough to provide any protection crime is rampant and fires can spread rapidly.