Unit V
The Gilded Age, 1865-1900
A. The Growth of Industrialization
The USA had an abundance of the elements necessary for industrialization.
1. With increased demand and fewer workers during the war, mechanization increased and production techniques improved. Mass production overtook many cottage industries.
2. The labor force was swelled by immigrants.
Between 1870 and 1920, there were
26.4 million immigrants. Chinese, Irish, and African-American laborers built the
railroads
.
3. Raw materials
a. Fossil fuel replaced whale oil for lighting and lubricating machine
parts.
b. The Mesabi Range
in
c. The
4. Transportation
a.
The first transcontinental railroad
was
completed in 1869, and the golden spike
was driven at Promontory, UT. In 1865, there were less than
35,000 miles of tracks. By 1900,
there were 193,000 miles of tracks.
b. Fortunes were made in railroads by Rockefeller, Morgan, James J. Hill Commodore Cornelius Vanderbilt, and Leland Stanford.
5. By 1880, the industrial production of the USA surpassed that of Britain.
B. The Gospel of Wealth
Andrew Carnegie
wrote an essay, The
Gospel of Wealth in 1889 in which
he advocated laissez-faire capitalism, social Darwinism, and philanthropy.
1. The government should adopt a policy of laissez-faire
(hands off) toward business.
It should not regulate, tax, or otherwise interfere with expansion and profit.
a. Before the progressive period (1901-1917), the robber barons suffered
few restraints from government regulation. By
financing campaigns, they controlled legislators and judges.
They owned newspapers that shaped public opinion.
They drove competitors into bankruptcy by under-pricing, and, after the
competition was eliminated, they raised prices.
b.The protective tariff and aid to corporations bound the fortunes of the captains of industry to the Republican Party. The government used the US Army to protect railroad construction against the Indians. It did not regulate railroads, but it supported them by land grants. Railroad owners demanded five square miles of land on each side of the track. By 1871, they owned about 320,000 square miles. (The land area of New Jersey is 7,417 square miles.) Although the land grant was vast, its value amounted to about 8% of the cost of building the transcontinental railroad.
c.
Income tax was fended off until the Sixteenth Amendment in 1913.
Troops were also used for strike breaking. Congress passed high protective tariffs.
The Supreme Court handed down decisions that were favorable to the
captains of industry. They were
immune from enforcement of anti-trust laws.
2. Social Darwinism
a. Charles Darwin, a biologist, wrote in The Origin of Species (1859) that organic life evolved from a lower
to a higher order through a process of natural selection.
The strong and those who could adapt to changing conditions survived.
b. Social Darwinists applied the law of survival of the fittest to the
social and economic development of human beings which
1) Carnegie and Rockefeller rose from rags to riches.
Anyone who worked hard could prosper.
If people were poor, it was their own fault.
Horatio Alger
wrote over one hundred novels,
including Ragged Dick, which had a
similar theme: If young boys were honest, hard working, thrifty, and had some
luck, they too could achieve middle class respectability.
2)
3. Philanthropy
Rockefeller said, “God gave me my money.”
Carnegie wrote in that the rich were the stewards of wealth and had an obligation to improve society. Philanthropists
endowed colleges and foundations. There
were Vanderbilt, Johns Hopkins (Baltimore and Ohio Railroad), Carnegie-Mellon, and
C. The Supreme Court and Big Business
1. Munn v. Illinois
(1877)
Supported by the Grange, farmers sought relief from the exorbitant freight rates charged by the
railroads. The
2.
The Supreme Court applied to corporations the property protection of the
Fourteenth Amendment. It reversed
the Munn decision, ruling that a state could not set maximum freight
rates because it would be depriving railroads of profit.
3. Wabash,
4. Pollock v. Farmers’ Loan & Trust Co.
(1895) held that income tax was unconstitutional.
D. The Politics of the
1870s and 1880s
1. The disputed election
of 1876
a. Samuel Tilden, the Democratic candidate for president, polled
264,000 more popular votes than the Republican, Rutherford B. Hayes. Republicans
challenged the returns from
b. The southern states acquiesced because Conservative Republicans offered the Compromise of 1877. The GOP conceded control of the South to the Democrats in exchange for control of the White House. It agreed to end Reconstruction and to withdraw the troops and granted “home rule” to the South. The North won the war, but the South won Reconstruction.
2. African-Americans would not enjoy the rights of citizenship for a century.
a. In 1879, African-Americans called "exodusters," fearing the reinstitution of slavery, migrated to Kansas.
b. By 1886, the Southern Redeemers
(a.k.a. the
Bourbons
) had regained control of the south for the Democratic
Party. The “solid South
” would last until President Lyndon Johnson signed the
Civil Rights Act of 1964.
c.
In the 1890s, the Jim Crow Laws
extended segregation to public schools, transportation, hotels, restaurants, theaters, toilets, and drinking
fountains. (Jim Crow was a blackface
character in an antebellum minstrel show.)
d. The Civil Rights Act of 1875 had required equality in employment and in public facilities. After Reconstruction ended, Civil Rights Cases (1883) declared it unconstitutional. The Slaughterhouse Cases (1873) also weakened the protections given to African-Americans by interpreting narrowly the “privileges or immunities” conferred by the Fourteenth Amendment.
e. Plessy v.
f. African-American leaders disagreed on the strategy for acquiring equal
rights.
1)Booker T. Washington believed that blacks must lift themselves up by their bootstraps. In his address at the Atlanta Exposition in 1895, he said that blacks should overlook segregation and the denial of voting rights and earn the respect of whites. Because he rejected militancy, he received donations from whites and
founded the Tuskegee Institute.
2) Doctor W.E.B. DuBois criticized Washington’s submissiveness and called his address “The Atlanta Compromise.” He led the Niagara Movement (1905) that demanded voting rights for African-Americans. He asserted that blacks should be proud of their African heritage. He cooperated with white reformers who founded the National Association for the Advancement of Colored People (NAACP, 1909) that worked to end racial discrimination.
3. In the 1880s and 1890s, the New South movement, led by Henry W. Grady, sought a partnership with northern industrialists in order to improve the economic condition of the South that was no longer dependent on slavery and cotton. Many northern industries moved to the South to take advantage of low wages, social conservatism, and anti-union sentiments.
4. The Greenback and Free Silver movements
a. When the USA returned to the gold standard in 1866, debtors protested having to pay off loans with currency worth three times more than it had been when they borrowed it. The Greenback Labor Party (1874-1886) supported paper currency.
b. The Bland-Allison Act
(1878) was
sponsored by Representative
c.
The Sherman Silver Purchase Act
(1890)
authorized the purchase of more silver, but it was later repealed because of the
Panic of 1893. The era from the end of the Civil War to the outbreak of World War I
was characterized by periodic economic panics, or depressions.
American history is marked with a cycle of recessions: 1819, 1837, 1857,
1873, 1893, 1907, 1929, 1982, and 2008.
5. James G. Blaine
a.
b. In 1884,
1)
The “stalwarts,” ultraconservative, pro-business, no-reform Republicans, denounced
2) The “mugwumps
” were liberal, Republican reformers
who opposed corruption and
refused to support
c.
It was a mudslinging campaign.
1) The Republicans smeared Grover Cleveland, a bachelor, for fathering an
illegitimate son, Oscar, by Maria Halpin, a thirty-six year old widow. Their
campaign slogan was, “Ma, Ma, where, my Pa?”
“Gone to the White House ha, ha, ha.”
2) The Democrats’ slogan was “Blaine, Blaine, James G. Blaine, the
continental liar from the state of
3) Days before the election,
E. The Passing of the Frontier
1. The Turner thesis
In his essay, “The Significance of the Frontier in American History”
(1893), Frederick Jackson Turner, a professor at the
2. Other revisionists repudiate the Turner-Hollywood version of the
history of the
West, claiming
that it is a white,
male, romantic view.
a. The West was not always a land of opportunity.
Half of those who sought gold or silver returned penniless.
Farmers faced crop failures, backbreaking work, and isolation.
b. Native Americans
were
massacred, cheated, and herded onto reservations. Revisinists call this "The American Holocaust."
c. Women were victimized as dance hall girls and prostitutes.
Native American women were abused by white and Indian men.
Mormons practiced polygamy. Some
Chinese engaged in white slavery.
3. People went west for land, jobs working on the railroad, and gold.
a.
land
1) The Homestead Act
(1862)
virtually gave away land. It was
also a gift from a grateful nation to Civil War veterans.
Thousands heeded Horace
Greeley
’s advice, “Go west, young man, go west.”
People could stake a claim for 160 acres, register it for $30 or live on it for five years, and it was
theirs. Only about 15% of the nearly one billion acres, however, was given to
homesteaders. The rest went to
railroads
nd land
speculators. From 1862 to 1890 (the
2) The Morrill Act
(1862)
(a.k.a. the Land Grant College Act) was an impetus for college education in the
West. Congress made land grants to
establish agricultural, engineering, and military colleges.
Sixty-nine land grant colleges were founded including
3) Cattle
ranches grew with the railroads and advances in
meatpacking. The long drive to the
railroad against the dangers of Indian attack, stampede, and rustlers
immortalized the cowboy.
b. The railroads brought settlers westward.
By 1890, there were 8.5 million people west of the
c. Gold and silver brought fortune hunters westward.
There was the Gold Rush
in
5. The Plains Indians
a. The Indian Removal Act
(1830) had
declared that all the land west of the
b. Battle hardened veterans under Generals Sheridan, Sherman
, and Custer
were
dispatched to protect railroad workers and settlers.
General Sheridan
said,
“The only good Indian is a dead Indian.”
One-fifth of the army fighting the Indian wars was buffalo soldiers
.
1) The Chivington Massacre
at Sand
Creek, CO (1864)
The
Colorado militia killed 450
2) Native Americans
raided
settlers, railroad workers’ camps, and small units of soldiers.
In 1866, the Oglala Sioux killed eighty-two soldiers under Captain W.J.
Fetterman who were protecting the miners on the Bozeman Trail in
3) In the Treaty at Fort Laramie in 1868, Native Americans allowed the settlers safe passage on the Oregon Trail, and the government accepted the Indians’ hunting rights in the Black Hills and the Great Plains (SD,WY, and MT). This treaty was soon broken.
4) The
Apache War began with the massacre of over one hundred
Apache in
5) A gold rush into the
6) The Ghost Dance
movement started by Wovoka
promised a Messiah and the return of the buffalo.
It called for hunting instead of farming, rejection of the white man’s
culture, especially alcohol, and a return to the old ways.
It was a religious ritual, not a war dance, but the army feared an
uprising. The
c. Native Americans needed buffalo for food, clothing, and shelter. Buffalo even had a religious significance for them. Before the Civil War, Native Americans killed many buffalo because the trade in hides was lucrative. Soldiers, traders, and sportsmen led by Buffalo Bill Cody hunted buffalo for hides and to diminish the Indians’ food supply. In the 1880s the buffalo were reduced from about fifty million to a few thousand.
d. Helen Hunt Jackson
criticizedthe
government’s policy towards the Native Americans
in A
Century of Dishonor
(1881).
This
led to the passage of the Dawes Act.
Teddy Roosevelt called her a foolish sentimentalist.
e. By the Dawes Severalty Act
(1887),
f. By 1934, 86 million of the 138 million acres originally
designated to Native Americans
had
been acquired by whites. Assimilation
had failed. Indians were granted
g. The relationship of the whites with the Native Americans evolved
through enslavement by the Spanish, trade, encroachment, removal, reservations,
extermination, severalty, tribal ownership of land, and cultural preservation.
The current government policy is tribal sovereignty, even though there is
still dependence on government assistance.
F. The Grange Movement
1. The Patrons of Husbandry, popularly known as the Grangers, was
founded by Oliver H. Kelly in 1867. To
relieve the grinding, lonely life on the farms, they sponsored square dances,
county fairs, and lectures.
2. After the Panic of 1873, they became politically active in support of
the farmers.
a. the plight of the farmers
: high freight rates, the long haul and short haul,
high interest rates, high storage costs, large profit for middlemen, and price
fixing of commodities.
b. The Grange organized cooperatives that provided loans, storage facilities, and
bulk buying and selling. By 1875, there were 850,000 members in 21,000
cooperatives.
c. Reformers passed Granger laws
in
G. The Populist Reform
1. The Northern Alliance and the
2. At a convention in
a. free coinage of silver
b. government ownership of the railroads, telephone
and,
telegraph and the nationalization of the banks.
This reflected the influence of European socialism. Most Americans wanted
to reform abuses but also wished to preserve capitalism.
c. income tax that was eventually accomplished by the Sixteenth Amendment
(1913)
d. popular election of US senators came with the Seventeenth Amendment
(1913)
e. tariff reduction
f. initiative: voter petition for state legislation
g. referendum: voter approval of state legislation
h. recall: removal from office by the voters
i. the eight-hour day for factory workers
3. The Populists nominated General James Weaver
for
president in 1892. The Democrat,
former president Grover Cleveland,
defeated
the incumbent President Benjamin Harrison and Weaver.
The Populists ran strong in the West.
They did not, however, attract labor or African-Americans.
Populism was perceived as an agrarian crusade.
Not until Franklin Roosevelt would there be a coalition of labor,
farmers, African-Americans, and white southerners.
H. The Rise of Labor
1. The factory workers saw their plight as a direct effect of the
excesses of big business that kept wages low and refused to recognize unions.
a. the plight of labor: low wages, long hours, unhealthy and dangerous
conditions in the work place, child labor, no pensions, poverty, slums, and crime.
b. The twelve-hour day and seven-day week prevailed in US Steel until
1913. In 1900, unskilled workers
received $1 per day (the purchasing power of $26.40 today), skilled workers $2
per day, and women and children $2 to $4 per week.
2. Urbanization accompanied industrialization.
Immigrants and farmers seeking employment converged on cities.
Workers lived near factories, and cities were marked by ethnic
neighborhoods and racial segregation. Those
who were able withdrew to the suburbs. Industry
located in Northeastern cities near the labor force and shipping to the European
market or near resources, e.g. coal and iron near
a. By 1890, the populations of
b. Political machines
such as
Tammany Hall
,
and immigrants took over city governments. Patronage
and graft abounded, but there was a Robin Hood character in this corruption.
In an age when the federal government did not provide many social
services, political machines filled the vacuum and took care of the destitute.
3. Labor unions were illegal. They
violated the Sherman Anti-trust Act
(1890)
which said, “Every contract, combination in the form of a trust [i.e.,
monopoly], or conspiracy in restraint of trade is illegal.”
Strikes would restrain trade. Employers
also argued that unions violated the rights of individual workers to bargain for
themselves.
4. Management blocked the labor movement.
a. yellow dog contract:
Workers had to sign a contract not to join a union.
b. Black listing
tried to
prevent union organizers from finding another job.
Employers would spread the word to other companies that certain people
were troublemakers.
c. Company towns
effectively
curbed unionizing. Wages were low,
but the company provided housing and stores.
d. lockout:
Strikes could be broken by preventing employees from
returning to work, starving them into submission, and hiring scabs.
5. The Knights of Labor
began under Uriah Stephens
in 1869.
Unions were illegal, and the Knights were a small and unorganized secret
society fascinated with Masonic rituals and symbols.
Under the leadership of Terrence Powderly
the workers became more militant.
a. the Railroad Strike
(1877)
There was a protest against a wage cut by the Baltimore and Ohio Railroad. The
state militia and then the US Army were sent in to break the strike and to
restore order. About one hundred men were killed in the conflict. The
unions were portrayed as violent, and the strikers had to return to work at
wages offered by the railroad.
b. the Haymarket Riot
1886)
In
c. the Homestead Strike
(1892)
The steel workers at the Carnegie Plant in
d. the Pullman Strike
1894)
During the Panic of 1893, the Pullman Railroad Car Co. cut wages by one
third but did not lower the rent in the company town nor reduce dividends to
stock holders. Eugene V. Debs
organized the American Railway Union
in a sympathy strike that paralyzed transportation nationally.
President Cleveland dispatched the army to restore order and protect interstate
commerce and mail delivery. Debs was the sworn enemy of the excesses of
industrial capitalism. He was imprisoned and emerged as a confirmed socialist.
He ran for the presidency five times on the American Socialist ticket.
e. The Molly Maguires were a secret organization of coal miners that
protested poor working conditions with sabotage and
assassinations (1854 to 1876).
6. The labor movement had internal problems, and by 1890 the Knights had
faded.
a. The bargaining power of skilled workers, such as electricians,
carpenters, and plumbers, was weakened by membership in unions that included
many unskilled workers.
b. The financial resources of unions were exhausted by strikes.
c. Public support was lost because of violence.
7. The American Federation of Labor
was
founded by Samuel Gompers, “The Father of American Labor” in 1886.
He formed a federation of five unions of skilled tradesmen.
The AFL was not a union of workers but a federation of independent trade
unions. It differed from the Knights
in that the members of unions in the AFL
were all skilled workers. The
Knights had included both skilled and unskilled workers.
Gompers stressed “bread and butter” unionism, concentrating on
acquiring a living wage, the eight-hour day, and safe working conditions.
He refused association with socialists.
8.
I. The Cross of Gold - The
Election of 1896
1. The Republicans nominated William McKinley, a stalwart,
who
supported the gold standard and high tariffs,
which protected the domestic market but were an
obstacle to foreign trade.
Tariff
summary:
1816 Henry Clay's American System (an
average of 20% ad valorem)
1828 Tariff of Abominations
(40%)
1833 Compromise Tariff (20%)
1890 McKinley Tariff (49.5%)
1897 Dingley Tariff (57%)
1909 Payne-Aldrich Tariff
(38%)
1913 Underwood-Simmons Tariff
(30%)
1922 Fordney-McCumber Tariff
(50%)
1931 Hawley-Smoot Tariff
(59%).
2. The Democrats nominated William Jennings Bryan, who supported the free coinage
of silver. In his “Cross of Gold” speech at the Democratic Convention he said,
“You shall not press down upon the brow of labor this crown of thorns. You
shall not crucify mankind upon a cross of gold.” The Populists threw their
support to Bryan.
3.
4. Marcus Hanna, a shipping and streetcar magnate managed McKinley’s campaign and assessed industrialists .25% of their corporate assets. McKinley spoke from his front porch in Canton, OH to groups that were brought in by railroad. Just before the election, workers around the country were paid and were told not to return to work if McKinley lost. Hanna’s victory message to McKinley was, “God’s in his heaven. All’s right with the world.”
5.
6. The Grange
had
collapsed with the