Gilded Age 1870 1900 By 1870 the period
Gilded Age 1870 -1900
By 1870, the period of “Southern Redemption” is taking back control of the South and the Radical Republicans are ending Construction. ► Colfax Massacre ► Slaughterhouse Cases ► States Rights versus Federal Rights are being debated as the South re-enters the Union. ► Jim Crow Laws ► Ku Klux Klan ► Economic Panic of 1873 ► Hands-off Presidencies (beginning with Grant) ► Economic and Political Corruption
Gilded Age-origin Gilded Age -Period when corruption existed in society but was overshadowed by the wealth of the period (“gilded” is when something is golden/beautiful on the surface but is really cheap/worthless underneath ► Abuses in business and government caused problems for immigrants, laborers, and farmers ► Term comes from a book written about the time period by Mark Twain and Charles Dudley Warner in 1873 The ► Gilded Age View Intro to America’s Industrial Revolution
Inventors/Inventions = New technology and new opportunity ► ► ► ► Thomas Edison ► Technology increased § Perfected the light bulb in 1880, and motion picture agricultural and business § Organized power plants productivity which will § Established first research lab Alexander Graham Bell change consumer access § Telephone (1876) and the nature of business Henry Ford § Assembly Line George Eastman ► The US government issued 440, 000 § Camera (1885) patents between 1860 -1900. Samuel Morse § Telegraph (1837) Developed Urban centers through Wright Brothers migration seeking jobs in § Airplane (1903) Christopher Sholes manufacturing industry that were § Typewriter (1867) Guglielmo Marconi § Radio unavailable in other U. S. regions
The Steel Industry’s Impact on America: Urban America Bessemer Processdeveloped around 1850 injected air into molten iron to remove impurities and make steel-a lighter, more flexible, rust resistant metal ► Steel is used in railroads, farm equipment, canned goods ► Engineers use steel to create skyscrapers and longer bridges (Brooklyn Bridge) ►
Impact of Railroads on America during the Gilded Age ► Benefits § Stimulated growth of other industries (steel, iron, coal, lumber, glass) § Helped cities grow § Helped increase westward expansion of America § Standard time zones were created to get everyone on correct time ► Corruption § Charged much higher rates to western farmers § Credit Mobilier Scandal 1868 ► Union Pacific ► Fake construction company ► Bribed members of Congress ► Represented corruption of period
The Rise of Big Business Vertical Integration § A process in which a company buys out all of the suppliers. (Ex. coal and iron mines, ore freighters, rr lines) ► Horizontal Consolidation -A process in which a company buys out or merges with all competing companies (JP Morgan bought out Carnegie steel and other companies) ►
The Rise of Big Business ► Social Darwinism § Used Darwin’s theory to explain business § Natural Selection, Survival of the Fittest § Govt. should not interfere § Laissez-faire -policy that US had followed sinception to not allow govt. to interfere with business ► Captains of Industry § A positive idea that industrial leaders worked hard and deserved their wealth because they were the innovators and took all of the “financial risk” Carnegie Library Carnegie Hall Vanderbilt University
The Rise of Big Business ► Trusts -A group of separate companies placed under the control of a single managing board ► Cartels: pooled resources and developed “gentlemen agreements” for price fixing. (technically not a monopoly because multiple owners had a “voice” ► Not all companies wanted to be part of a trust or cartel… often they were strong-armed into cooperating with the larger corporations or they were forced into closure.
Robber Baron: Bullies ► Critics called these practices unfair and the business leaders “Robber Barons” and the concept of monopolies
Project: Captain of Industry or Robber Baron? You decide ► Background and Business information. ► To what extent were they an Industrial Statesman? ► To what extent were they a Robber Baron? ► Fate of the company/industry
► Andrew Carnegie § William Evelyn Carlos ► Jay Gould § Celeste Yadira Roberto ► Andrew Mellon § Laura Alex Margarito ► J. P. Morgan § Ryan Humberto Jake ► John D. Rockefeller § Daniela Raymundo Joey ► Charles Schwab § Ytzel Martha Crystal ► John D. Spreckels § Jaribeth Joshua Adriana ► Leland Stanford § Mirsa Daniel Stephanie ► Cornelius Vanderbuilt § Albert Chris Alexis
The Rise of Big Business Gospel of Wealth -belief that the wealthy are “chosen by God” to be successful and were therefore responsible to look out for the well being of those less fortunate. Many Industrialist shared wealthough rarely through direct welfare. Started museums, etc. ► Monopoly-complete control of a product or service ►
The Rise of Big Business ► Andrew Carnegie § Industrialists who made a fortune in steel in the late 1800’s, as a philanthropists, he gave away some $350 million to public works projects ► John D. Rockefeller § Industrialists who made a fortune in the oil refining industry § U. S. Standard Oil
The Rise of Big Business ► J. P. Morgan § Industrialists who started U. S. Steel from Carnegie Steel and other companies. Became 1 st Billion dollar Corporation. § Bailed out the U. S. economy on more than one occasion.
Standard Oil Cartoon based on Ida B. Tarbell’s book- The History of Standard Oil
Big Business Boom ► In 1860, U. S. total wealth was $16 billion ► By 1900, U. S. total wealth was $88 billion ► Manufacturing business increased from $3 B to $13 B by 1900 and the labor force increased from 13 million to 19 million people (immigration and a baby boom)
The Rise of Big Business ► Sherman of 1890 Anti-Trust Act § Law outlawing a combination of companies that restrained interstate trade or commerce; important to prevent monopolies. Not initially enforced properly. Benjamin Harrison § Mc. Kinley Tarriff Act ► Republicans passed at the same time to raise prices on foreign goods. Nullification Crisis!!!!!! “What can I do when both Parties insist on kicking”
Backlash to the Sherman Anti. Trust Act ► The act forbade any restraint of commerce across state lines, and courts ruled that strikes and boycotts were part of the law. ► First example of an unintended consequence of the act occurred in 1894 with the American Railway Union. ► Owner of the Pullman Place Car Company cut wages 25%-40% in response to an economic depression.
► The American Railway Union called for a nation wide strike. ► Railway workers across the country refused to work with Pullman cars. ► Businessman obtained a court injunction to stop the strike. ► Violent confrontations ensued between union members and federal troops. ► Union leader Eugene Debs and 700 other workers were arrested.
Poor Working Conditions in the Late 1800’s Most factory workers worked 12 hour days, 6 days a week ► Steel mills often demanded 7 days a week ► No vacations, sick leave, unemployment compensation, or workers compensation for injuries on the job Video on factory work ► Children as young as 5 often worked as much as 12 or sometimes 14 hours a day, for as little as. $27 a day. ►
The New Immigrants -Between 1870 and 1920 -20 million Europeansmostly from Southern and Eastern Europe came to America - (Jews/Catholics) ► Hundreds of thousands more came from Mexico, Caribbean, and China ► Looked and sounded different than natives ► Nativism-Movement to ensure that native-born Americans received better treatment than immigrants ► Russian Jews
The Rise of Labor Unions The Purpose of a labor union was “strength in numbers. ” Attempted to gain better working conditions and pay. ► The Knights of Labor ► § Was the first union to accept workers of all races and gender. Pushed for 8 hour workday, equal pay for women, accepted skilled and unskilled workers
The Rise of Labor Unions ► The American Federation of Labor (AFL)- Accepted only skilled white males, won higher wages and shorter work weeks for its members ► Head of AFL was Samuel Gompers
The Rise of Labor Unions ► Industrial Workers of the World (IWW) or Wobblies § Created in 1905, was a radical group of mostly unskilled workers who believed in socialism § Socialism-an economic or political philosophy that favors public (or social) control of property and income.
Setbacks for Labor Unions ► Great Railroad Strike of 1877 § RR workers strike to protest wage cut § Violence erupted in many cities for a week § President Rutherford B. Hayes sends in Federal Troops to put down strike § Scab –worker called in by an employer to replace strikers § Courts and Federal govt. often sided with business during Gilded Age
Setbacks for Labor Unions ► Haymarket Riot 1886 § Workers protesting and holding demonstrations in Haymarket Square Chicago § Speakers are socialist and anarchist (no govt. ) § Police arrive and bomb is thrown at police killing some and causing riot § Public blames labor unions and views them as radical, violent, and mostly foreigners
Setbacks for Labor Unions ► Homestead Strike-1892 § Workers strike against Carnegie Steel plant § Henry Frick was anti-union leader of plant ► Pullman Strike 1894 § Railroad industry strike in which 120, 000 striking railroad workers were stopped only by the intervention of the federal government
1888 Puck Magazine cartoon about American businessmen encouraging immigration for cheap labor which hurts Americans
The New Immigrants ► Ellis Island- In New York harbor where most European immigrants came to get processed ► Angel Island- In San Francisco where most Asians entered US ► Culture Shock ► Melting Pot
The New Immigrants 1882 -Chinese Exclusion Act - prohibited Chinese laborers from entering the country. Was not lifted until 1943. ► Gentlemen’s Agreement 1907– was reached between U. S. and Japan in which Japan agreed to restrict immigration to the U. S. ►
Political Cartoon depicting how Chinese immigrants workers lived and regular American workers lived. Rats, Yummy!
Problems of Rapid Urbanization- growth of cities ► 3 reasons cities grew in late 1800’s and early 1900’s ► § New immigrants arrived in cities for work § As farm machines replaced farmers they moved to cities § African Americans left South after Civil War and came to Northern cities. View Rise of NYC video
Problems in Cities ► ► ► 1. Housing shortages- Tenement – crowded apartment building with poor standards of sanitation, safety, and comfort 2. Transportation –struggled to keep up with growth 3. Clean water – was difficult to produce and transport 4. Waste and garbage removal was a challenge and often neglected 5. Fires were very common § Great Chicago Fire -1871 § San Francisco Earthquake 1906 6. Crime rose with urbanization
The beginning of the Progressive Era Early Reforms to fix problems of Urbanization Settlement House – Community center organized to provide various services to urban poor ► Hull House -1889 – most famous settlement house established by Jane Addams and Ellen Gates Starr ► Social Gospel Movement – social reform movement that sought to fix social problems in the name of Jesus ►
The Rise of Political Machines ► Political Machines –an organized group of people that controlled the activities of a political party § By giving voters services they needed, the machine won their vote and controlled city government ► City Boss was head of Political Machines § Controlled Jobs in police, fire, and sanitation departments ► Agencies that granted licenses to businesses ► Money to fund large construction projects ► “All Politics center around the Boss” View Gangs in New York Clip #1
Political Machines ► Political machines loved immigrants, WHY? § Never voted, tried to sway votes by bribery, intimidation, and other means ► Political machines used power to § Rig elections § Become wealthy from kickbacks-illegal payments § Control police force to stay out of trouble
“Boss Tweed” and Thomas Nast ► William “Boss” Tweed City Boss of Tammany Hall- Democratic Political Machine in New York City ► Thomas Nast –political cartoonist who was critical of machines and Tweed
Presidents of the Gilded Age U. S. Grant 18691877 Rutherford B. Hayes 1877 -1881 Grover Cleveland 1885 -1889 and 1893 -1897 Benjamin Harrison 1889 -1893 James Garfield 1881 William Mc. Kinley 1897 -1901 Chester A. Arthur 18811885
A Two-Party Stalemate develops
1880 Presidential Election
Very Laissez Faire Federal Govt. « From 1870 -1900 Govt. did very little domestically. « Main duties of the federal govt. : Ø Deliver the mail. Ø Maintain a national military. Ø Collect taxes & tariffs. Ø Conduct a foreign policy. « Exception administer the annual Civil War veterans’ pension.
Corruption in Government ► ► ► Patronage or Spoils Systemgiving government jobs to loyal party workers or friends § Were not qualified § Used position to get money from government (graft) President James Garfield is assassinated by disappointed office seeker favoring Spoils System President Chester Arthur signs Pendleton Civil Service Act of 1883 James Garfield View video #2 View video #3 Charles Guiteau
The Presidency as a Symbolic Office « Party bosses ruled. « Presidents should avoid offending any factions within their own party. « The President just doled out federal jobs. Senator Roscoe Conkling Ø 1865 53, 000 people worked for the federal govt. Ø 1890 166, 000 “ “ “
1881: Garfield Assassinated! Charles Guiteau: I Am a Stalwart, and Arthur is President now!
Chester A. Arthur: The Fox in the Chicken Coop?
Pendleton Civil Service Act 1883 Attempted to end Patronage/Spoils System ► 1. Creating the Civil Service Commission which required appointed govt. officials to pass the Civil Service Exam to base jobs on merit instead of friendship ► 2. Federal employees did not have to contribute to campaign funds ► 3. Federal employees could not be fired for political reasons ► Chester A. Arthur signed Pendleton Act into effect
Pendleton Act (1883) « Civil Service Act. « The “Magna Carta” of civil service reform. « 1883 14, 000 out of 117, 000 federal govt. jobs became civil service exam positions. « 1900 100, 000 out of 200, 000 civil service federal govt. jobs.
Republican “Mugwumps” « Reformers who wouldn’t re-nominate Chester A. Arthur. « Reform to them create a disinterested, impartial govt. run by an educated elite like themselves. « Social Darwinists. « Laissez faire government to them: Ø Favoritism & the spoils system seen as govt. intervention in society. Ø Their target was political corruption, not social or economic reform!
The Mugwumps Men may come and men may go, but the work of reform shall go on forever. « Will support Cleveland in the 1884 election.
1884 Presidential Election Grover Cleveland * (DEM) James Blaine (REP)
1884 Presidential Election
Cleveland’s First Term « The “Veto Governor” from New York. « First Democratic elected since 1856. « A public office is a public trust! « His laissez-faire presidency: Ø Opposed bills to assist the poor as well as the rich. Ø Vetoed over 200 special pension bills for Civil War veterans!
The Tariff Issue « After the Civil War, Congress raised tariffs to protect new US industries. « Big business wanted to continue this; consumers did not. « 1885 tariffs earned the US $100 mil. in surplus! « Mugwumps opposed it WHY? ? ? « President Cleveland’s view on tariffs? ? « Tariffs became a major issue in the 1888 presidential election.
1888 Presidential Election Grover Cleveland (DEM) Benjamin Harrison * (REP)
1888 Presidential Election
Changing Public Opinion « Americans wanted the federal govt. to deal with growing soc. & eco. problems & to curb the power of the trusts: Ø Interstate Commerce Act – 1887 Ø Sherman Antitrust Act – 1890 Ø Mc. Kinley Tariff – 1890 § Based on theory that prosperity flowed directly from protectionism. § Increased already high rates another 4%! Ø Rep. Party suffered big losses in 1890 (even Mc. Kinley lost his House seat!).
By: Ms. Susan M. Pojer Horace Greeley HS Chappaqua, NY
Price Indexes for Consumer & Farm Products: 1865 -1913
The Grange Movement Ø First organized in the 1870 s in the Midwest, the south, and Texas. Ø Set up cooperative associations. Ø Social and educational components. Ø Succeeded in lobbying for “Granger Laws. ” Ø Rapidly declined by the late 1870 s.
Supreme Court Decisions Ø Munn vs. Illinois (1877): allowed states to regulate commerce. Ø Wabash, St. Louis, & Pacific Railroad Company vs. Illinois (1886): created the ICC to control interstate commerce rates.
Gift for the Grangers: The Farmer Pays for All!
The Farmers Alliances Ø Begun in the late 1880 s (Texas first the Southern Alliance; then in the Midwest the Northern Alliance). Ø Built upon the ashes of the Grange. Ø More political and less social than the Grange. Ø Ran candidates for office. Ø Controlled 8 state legislatures & had 47 representatives in Congress during the 1890 s.
United We Stand, Divided We Fall Ø In 1889 both the Northern and Southern Alliances merged into one—the Farmers’ Alliance.
The Populist (Peoples’) Party Ø 1890 Bi-Election: So. Alliance wanted to gain control of the Democratic Party. No. Alliance ran 3 rd Party candidates. Ø 1892 800 met in St. Louis, MO majority were Alliance members. over 100 were African Americans. reps. of labor organizations & other reformers (Grange, Greenback Party).
The Populist (Peoples’) Party Ø Founded by James B. Weaver and Tom Watson. Ø Omaha, NE Convention in July, 1892. Ø Got almost 1 million popular votes. Ø Several Congressional seats won. James B. Weaver, Presidential Candidate & James G. Field, VP
Omaha Platform of 1892 1. System of “sub-treasuries. ” 2. Abolition of the National Bank. 3. Direct election of Senators. 4. Govt. ownership of RRs, telephone & telegraph companies. 5. Government-operated postal savings banks. 6. Restriction of undesirable immigration. 7. 8 -hour work day for government employees. 8. Abolition of the Pinkerton detective agency. 9. Australian secret ballot. 10. Re-monitization of silver. 11. A single term for President & Vice
1892 Election
Result of Election Returns Ø Populist vote increased by 40% in the bi-election year, 1894. Ø Democratic party losses in the West were catastrophic! Ø But, Republicans won control of the House.
Cleveland Loses Support Fast! « The only President to serve two nonconsecutive terms. « Blamed for the 1893 Panic. « Defended the gold standard. « Used federal troops in the 1894 Pullman strike. « Refused to sign the Wilson-Gorman Tariff of 1894. « Repealed the Sherman Silver Purchase Act.
Causes of the 1893 Panic Ø Begun 10 days after Cleveland took office. 1. Several major corps. went bankrupt. § Over 16, 000 businesses disappeared. § Triggered a stock market crash. § Over-extended investments. 2. Bank failures followed causing a contraction of credit [nearly 500 banks closed]. 3. By 1895, unemployment reached 3 million. Ø Americans cried out for relief, but the Govt. continued its laissez faire policies!!
Here Lies Prosperity
Written by a Farmer at the End of the 19 c When the banker says he's broke And the merchant’s up in smoke, They forget that it's the farmer who feeds them all. It would put them to the test If the farmer took a rest; Then they'd know that it's the farmer feeds them all.
Coxey’s Army, 1894 Ø Jacob Coxey & his “Army of the Commonweal of Christ. ” Ø March on Washington “hayseed socialists!”
William Jennings Bryan (1860 -1925) The “Great Commoner”
Bryant’s Speech “Cross of Gold” You shall not press down upon the brow of labor this crown of thorns; you shall not crucify mankind upon a cross of gold!
Bryan: The Farmers Friend; (The Mint Ratio) 18, 000 miles of campaign “whistle stops. ”
Democratic Party Taken Over by the Agrarian Left Platform tariff reductions; income tax; stricter control of the trusts (esp. RRs); free silver.
Mark Hanna: The “Front-Porch” Campaign (American King-maker? ) William Mc. Kinley Republican Candidate
The Seasoned Politician vs. The “Young” Newcomer
1896 Election Results
Why Did Bryan Loose? Ø His focus on silver undermined efforts to build bridges to urban voters. Ø He did not form alliances with other groups. Ø Mc. Kinley’s campaign was well- organized and highly funded.
The Wizard of Oz by L. Frank Baum
Heyday of Western Populism
Why Did Populism Decline? 1. The economy experienced rapid change. 2. The era of small producers and farmers was fading away. 3. Race divided the Populist Party, especially in the South. 4. The Populists were not able to break existing party loyalties. 5. Most of their agenda was co-opted by the Democratic Party.
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