Rising Protests

1
The Gilded Age
1865 - 1900
P a r t I

• The Second Ind. Rev.
• Its Economic Effects
• Its Social Effects

2
To what extent, and in what ways, did the
Industrial Revolution alter American economic,
social, and political institutions?
3
T h e S e c o n d I n d u s t r i a l R e
v o l u t i o n

• 1865 - 2 billion Produced
• 1900 - 13 billion
• GNP Increased 8x!
• From 4th to 1st
• Outproducing 2 and 3 Combined

4
Some Indicators...
Category
1890s
1860s
Population 31.5m 62.6m
No. of Farms 2m 4.5m
Farm Workers 60 37
No. of Factories 140,000 400,000
Factory Workers 1.3m 5.5m
5
More Indicators...
Category
1890s
1860s
Value of Farms 7.9m 17m
Value of Factories 1b 7.5b
Capital Investment 1b 12b
Goods Produced 2b 13b
6
Conducive Factors

• Civil War a Catalyst
• Many Economic Stimuli
• Large, Cheap Work Force (20m
• Immigrants During the Period)
• Communication and Transportation
• Friendly Government (Republican)
• Laissez-Faire (or Was It?)
• Technology

7
More Power...
Steam
Petroleum
Electricity
Lots of Inventions
8

• Before 1860 36,000 Patents
• 1860 1890 448,000!
• 1890 1900 Another 200,000

9

• Dis-Assembly Line
• Refrigerated RR Car

Gustavus Swift
10

• Thomas A. Edison
• Wizard of Menlo
• Park
• Invention Factory

11
Alexander Graham Bell
12

• Cyrus Field
• Trans-Atlantic
• Cable

13
Laying the Cable
14
Frank Duryeas First Gasoline-Powered Automobile
15
In 1896, Duryea Won the First Ever Road Race
He Averaged 7 Mi. per Hour!
16
Henry Ford
17
First and Millionth Ford
18
The Ford Assembly Line
19
The Wright Brothers
20
Kitty Hawk, N.C. 1903
21

• Frederick W. Taylor
• Taylorism
• Scientific Mgt.
• Impact?

22
New Ways to Sell Things
23
Atlantic Pacific Tea Co. (A P )
24
(No Transcript)
25
Advertising

• New Ways to Sell
• By 1900 Spending
• 90m a Year!
• 10x More than 1865

26
Business Practices

• Proprietorships
• Corporations
• Pooling Agreements
• How to Better Reduce
• Competition? How to
• Better Consolidate
• Business Enterprises?

27
One Way to Integrate
28
And Another Way to Integrate Businesses
Were There Even Better Ways to Organize?
29
New Business Practices

• The Trust (1879)
• A Corporation of
• Corporations
• How Did It Work?

John D. Rockefeller
30
The Trust Managed the Corporations

• 1882 Standard Oil Trust
• 26 Became ONE
• 9 Trustees Ran the
• Worlds Oil Business!

31
Holding Companies

• 1889 (NJ)
• Owns Stocks, but Does NOT
• Produce Anything
• By 1904 318 Holding Companies
• Controlled 5,330 Factories (7b)

32
By 1900 - 1 of America's Corporations Ran 1/3 of
All Our Manufacturing
Reaction?
33
Anti-Trust Movement
34
(No Transcript)
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People Began Demanding Regulation...

• 1887 Interstate Commerce Act
• 1890 Sherman Antitrust Act

It outlawed practices that operated in
restraint of trade
36
Newer Business Practices

• Interlocking Directorates
• Holding Companies

Collectively, What Occurred Was Referred to as
Big Business Who/What Were the Role Models?
37
The Key Industries
Railroads

• Backbone of Ind. Rev.
• Many Spin Offs
• 180 Million Acres
• Millions in Subsidies
• 200,000 Mi. by 1900
• First Model for Big Bus.

38
(No Transcript)
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Cornelius Vanderbilt

• NY Central
• Combined RR
• Worth 100m by
• His Death in 77

40
Steel

• Another Cornerstone
• 1850s Bessemer Process
• Abram Hewitts Open-
• Hearth Process
• Andrew Carnegie
• J.P. Morgan

41
The Bessemer Process for Making Steel
Henry Bessemer
42
U.S. Steel In 1890
Andrew Carnegie
J.P. Morgan
43
Oil

• Another Cornerstone
• New Technologies
• Benjamin Silliman
• Edwin Drake
• John D. Rockefeller

44
Edwin Drake
Benjamin Silliman
45
Titusville, Pa. 1859
46
(No Transcript)
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John D. Rockefeller

• Standard Oil
• Co. of Ohio (1870)
• 1900 90 of the
• Oil Industry
• Worth 1 Billion!

48
What Did All Three Have in Common?
How Did Big Business Impact the Nation?
49
Impact?
Negative?
Positive?
More Positive or Negative?
50
(No Transcript)
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The Economy Began to Run on a Business Cycle
52
Were the New Business Leaders... "Captains of
Industry" or "Robber Barons"?
53
Viewed as Medieval Robber Barons
54
The Message?
55
What Does this Suggest about Rockefeller?
56
This One?
57
Message?
58
How Are Rockefeller and Carnegie Depicted?
59
How Does Rockefeller View Government vs. Business?
60
God Gave Me My Money J.D. Rockefeller
Cant I Do What I Want With My Own
Cornelius Vanderbilt
What Do I Care about the Law? Haint I Got the
Power? C. Vanderbilt
61

• Rockefeller Practiced Rule or
• Ruin in Consolidating Business
• Were the Tycoons Answerable
• to No One?
• Exempt from Normal Restraints?
• They Were Self-Made Men!
• Laws Hardly Restrained Them
• at All!
• Growing Criticism
• Led to Attempts to Justify Behavior

62
How to Justify New Practices?

• Religion
• Science
• Philosophy

What Developed Was a Philosophy of Capitalism
63
P h i l o s o p h y of C a p i t a l i s m

• Used Traditional Virtues
• Individualism, Puritan Ethic
• Borrowed Heavily
• Adam Smith - ?
• Thomas Malthus - ?
• David Ricardo - ?
• Herbert Spencer

64
Capitalism
Adam Smith
Economic Theory
65
Capitalist Theory

• Law of Self-Interest
• Law of Supply and Demand
• Law of Competition
• Governments Role?
• Laissez-Faire Capitalism

66
Additional Support
The Use of Science
Charles Darwin
Herbert Spencer
67

• Spencers Ideas
• Social Darwinism
• Struggle Is Normal
• Natural Selection
• Survival of the
• Fittest
• Best Indicator of
• Fitness?
• Who Is MOST Fit?
• Shouldnt the Fit
• Lead?

68

• Popularized
• Social Darwinism
• Folkways (1906)
• Man Must Have
• Freedom to
• Compete, to
• Succeed, or to
• Fail

William Graham Sumner
69
We Ought to Be Rich If We Canby Honorable and
Christian Methods
Poor Are So By Their Own Short-Comings
Russell Conwell
70
Horatio Algers Rag to Riches Stories
71

• Andrew Carnegie
• Gospel of Wealth
• Defense of Laissez-Faire
• Treatise on the
• Obligations of the
• Capitalists
• Use Wealth to Perform
• Good Works
• Became a Leading
• Philanthropist
• Gave Away 350m!
• JDR over 500m!

72
Did These Things Work?

• Govt Supported Them
• Protected Corporations
• Could NOT Be Regulated Unless
• Part of Interstate Commerce
• What Is Interstate Commerce?

Many NOT Won Over!
73
Alternative Visions of America's Future
What Problems with Monopoly Did Many See?
74
Counter-Arguments?Critics Turned to

• Religion
• Science
• Philosophy

To Justify Their Arguments
75

• Dynamic Sociology
• Reform Darwinism
• Cooperation in
• Nature
• Intellect, NOT
• Natural Selection
• Shapes Society
• Man Can Change
• His Environment

Lester Frank Ward
76

• Theory of the
• Leisure Class
• Conspicuous
• Consumption
• One Upmanship

Thorstein Veblen
77

• Principles of
• Psychology
• Pragmatism
• Too, Borrowed
• Truth to Be
• Determined by Their
• Consequences
• To Provide the
• Greatest Good for
• the Greatest Number of People

William James
78
Single Tax Idea

• What Tax?
• Advantages?

Henry George
79
Suggested Large Scale Regulation
Henry Demarest Lloyd
80
What Did the Young Man See When He Awoke?
Edward Bellamy
81

• It Would Take Time for Reform
• Ideas to Set In
• Too Radical for the Time
• By 1900
• 1 of All Families 88 of All
• Assets
• 10m Families Living in Poverty
• (Less than 600 a Year)
• When Would Attitudes Change?

82
Another Way to Protest
T h e U n i o n M o v e m e n t

• What?
• Why?

83
Analyze the impact of any TWO of the following on
the American industrial worker between 1865 and
1900.
Govt Actions Immigration Labor
Unions Technology
Workers Were Both Beneficiaries and Victims in
Relation to the New Economy
84
(No Transcript)
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Generalizations

• A Six Day Workweek
• 12-14 Hours a Day
• Average Pay 9 a Week
• Mans Salary - 597
• Womans - 314
• Lots of Kids (under 16)
• All Girls 10 Working
• Boys 20 Working
• Conditions in Factories?
• New Rules about Work

86
The Dangers of the Factory
87
(No Transcript)
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Other Problems

• Describe the Ideal Type Worker
• What Diminished His Potential?
• Women (17 of the Work Force)
• Immigrants (?)
• Blacklists, Yellow Dog Contracts,
• Used Pinkerton Militia, Got
• Injunctions, Company Towns
• Wages Followed Business Cycle
• Workers Felt Alienated

89
(No Transcript)
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Labor vs. Business
91
(No Transcript)
92
The Union Movement

• What Could Be Done?
• Organization (32 by 1872)
• Types of Unions?
• 1866 National Labor Union

• William Sylvis
• Combination of Craft Unions
• Urged Self-Sufficiency
• 1870 650,000 Members
• 1873 Dead in the Water!

93
(No Transcript)
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Knights of Labor

• 1869
• Uriah Stephens, Terrence Powderly
• Stick to Work-Related Goals
• 1886 700,000 Members
• United All Who Toil (Mostly)

95
What Killed the Knights?
96
Haymarket Square, Chicago
97
Another Look
As Its Power Waned, Another Union Began to Grow
98
American Federation of Labor

• 1886
• Federation of
• Craft Unions
• 1900 1m
• 1910 4m

99

• 1903 Separate Union for Women
• Called for an 8-hr Day, Minimum
• Wage, Abolition of Child Labor

100
W h a t W e a p o n s D i d L a b o r H a
v e ?

• Strength in Numbers
• Political Clout
• Cooperatives
• Collective Bargaining
• The Strike

101
(No Transcript)
102
Women Workers on Strike
103
(No Transcript)
104
Battle of Homestead (Pittsburg, 1892)
105
Another View
106
The Pullman Strike
Chicago, 1894
107
By 1900
Gains Shortcomings

• Wage Laws
• 8-Hr. Day
• Bureau of Labor
• Contract Labor
• Law Repealed
• Labor Day

• Conflicting Goals
• Associated with
• Radicalism, Violence
• Govts Sided with
• Business
• Businesss Weapons

108
Labor Viewed as a Tool of Anarchists
109
What Is the Message of the Cartoon?
By 1900, WhatPercentage of American Workers Were
Unionized?
110
Stay Tuned...
G i l d e d A g e S o c i e t y a n d
P o l i t i c s