Chp 24

How did the industrial transformation after the Civil War compare with the earlier phase of American economic development? (see chapter 14) Why were the economic developments of 1865-1900 often seen as a threat to American democracy, whereas those of the 1815-1860 were not?

Clemmer  
 

The industrial transformation following the Civil War included many similar circumstances to the industrial boom between 1815 and 1900. In that time period, Eli Whitney’s cotton gin and the McCormick Reaper incited a new and more efficient way of living. The revolutionary changes made to the entire society allowed the country to modernize every aspect of life. Changes were seen as beneficial because of the lack of mass corruption to the integrity of the political and economic areas of America. Unlike the boom during this era, the time period following the Civil War caused an outburst in the railroad circuit throughout the nation that was easily susceptible to the radical graft presiding in the country at the time. By 1884, over four transcontinental railroads were built. With all but the Great Northern receiving land grants, the ease with which to lay the rails grew and grew. The significance of this peace time undertaking was the connection it made throughout the country. The West was now connected with the East, facilitating trade with Asian countries and exposure of Eastern manufacturing goods in the Far East.

            Paving the way to rapidly grow in the West drew many comparisons to the landmark achievements of America’s past. Rapid growth was in large part due to the increasing bond of the older eastern networks into one. The welding together of such wealth allowed for new inventions to be implemented in the railroad project, thereby increasing the long term effectiveness of the railroad system. The first was the steel rail, which replaced the iron tracks. This eliminated the expense and inconvenience of numerous changes from one line to another. Air brakes were also invented to make the trips safer and easier. With the entire country expanding, the physical unification of the nation created a stronger and more solid foundation for the economy in America. The corruption soon got to the heads of those in charge. American people would not allow so few control the masses in the country. American ingenuity would discover the vast natural resources of America, but their exploitation would reveal how radically different the new technologies were from the past.

            Wealth was now growing into a powerful position that was bordering on the illegal. Trusts by tycoons like J.P. Morgan and Andrew Carnegie monopolized the steel and railroad markets. Arousing negative sentiments in the government, which caused many reforms and transitions that changed the tide of controlling the behavior of the private sector. Although the graft and corruption tainted the nature of the beast, the standard of living dramatically increased during this phase of the Industrial Revolution. Women were profoundly propelled into the ranks of social and economic opportunities. The creation of unions and labor organizations were created in direct response to the corruption of management. They had to endure the hardships of graft, but the overwhelming transformations made to the law were just as revolutionary as the inventions. The Industrial Revolution changed the nation in many ways, some positive and others negative. Corruption and graft convoluted and distorted the revolutionary changes, but the drastic leaps made in anti-trust legislation and improvements to labor laws made this revolution different from previous revolutions due to the improvements made on both the social and economic fronts in America.

Fodor  
 

The industrialization of America during the years of 1815 through 1860 did not seem as threatening as the industrialization of the years following the Civil War.  The first of the two brought more jobs to the public.  It also helped the American economy to grow because of an increase in trade.  However between 1865 and 1900, the industrialization of America had become corrupted.  This was especially seen in the railroading business, where “railroad titans” took over the government through bribing.

            The American population welcomed the economic developments that occurred between the years 1815 and 1860.  During these years machines such as the cotton gin, created by Eli Whitney, and the telegraph, created by Samuel F. B. Morse, were created, forever changing the American culture.  The cotton gin led to the need for more field hands to pick the cotton.  Slaves were then brought over from Africa and were bought in order to meet this demand.  Slavery would later greatly affect Americans during the Civil War and years after.  The telegraph allowed two people who were far apart from one another to communicate.  Along with the inventions of machines such as these came a factory system.  The factories, similar to cotton gins, also needed people to work in them.  Large amounts of workers working in these factories created a sort of working class, where entire families, including children would work in unsanitary buildings for small amounts of money.  The industrialization of America caused economy to rise because of increased trade with other countries.  Along with the rising economy came highways, steamboats, and railroads.  These were greatly needed by Americans in order to allow faster traveling from place to place. 

            The economic developments of 1865 through 1900 were not as welcomed as the economic developments between the years 1815 and 1860.  This could be because of the corruption that came along with it, especially when concerning the railroads.  The so-called “railroad titans” only were worried about making money.  One of these men was Cornelius Vanderbilt, who only cared about building his railroads.  He had statements such as “Law! What do I care about the law?  Hain’t I got the power?” and “I won’t sue you, for the law is too slow.  I’ll ruin you.”  These were said when people of laws got in the way of his desire to make more money.  Other “railroad titans” manipulated journalists, politicians, judges, and legislatures in order to get their own way.  Many people were afraid of these railroad builders.  The American public also did not like the idea that the “railroad titans” were taking over and creating railroad monopolies.  The railroad business was the main reason why Americans believed that industrialization between 1865 and 1900 was a threat.

            Between the years of1815 and 1860 the economic developments occurring in the United States were not as threatening to Americans as the industrialization of 1865 through 1900.  This is because the first one brought more jobs to the population and also increased trade.  Also during this time many new inventions were created that would later change the history of America.  The second industrialization period was full of corruption and manipulation.  The men who were in charge of the railroads did not care about the American people.  Instead they only cared about gaining power and money. 

Ortiz  
   The industrial transformation after the Civil War can be easily compared with the earlier phase of American economic development because in both periods, factories grew like weeds. The developments of 1865-1900 were seen as a threat to American democracy because factory owners became millionaires through illicit means. Americans were threatened because of the factory owner’s dishonesty.
Ponder  
   
Proto  
 

How did the industrial transformation after the Civil War compare with the earlier phase of American economic development? (See chp 14) Why were the economic developments of 1865-1900 often seen as a threat to American democracy, whereas those of the 1815-1860 were not?

 

          The industrial transformation after the Civil War was easily comparable to the earlier phase of American economic development.  The economic developments during the years 1865-1900 caused a much more controversy than the boom from 1815-1860.  The year of 1873 was filled with panic. During this time, the production in many fields was much too high. Therefore, the bankers made too many untimely loans to finance the large undertakings. The lack of profit caused the loans to go unpaid, and the credit-based system went way down. One of the first signs of economic instability was when the banking firm Jay Cooke and Company shot down. This company was extremely wealthy, which caused quite a shock amongst the American people at the time. More than 15,000 businesses went bankrupt during this era. The blacks faced many challenges, as well, because the “Freedman’s Savings and Trust Co.” made loans to many companies that fell during the chaos. Black people around the nation lost hundreds of thousands of dollars, and also confidence in their banking system. During this period of chaos and an unstable economy, many people were very misinformed, and were under the impression that by increasing the amount of money it would lessen the inflation. The “hard money” supporters, (the people who promoted the idea of non-paper currency during this economic crisis,) persuaded Grant to veto a bill that would print much more paper money, (which would eventually cause the money to decrease in value because of over production.) In the year1875, these people succeeded yet again with the passing of the Resumption Act, which endorsed the US government to further remove the greenbacks from use, and for all paper currency to be changed to gold currency. In 1873, the production of silver dollars was stopped because of the misconception that gold was more valuable. Then, later in the 1870’s, the silver prices dropped, and demanded a return for the silver currency. Like the greenbacks, this demand was a request for inflation. Republicans disagreed openly with this request, and Grant complied with the demands. The monetary policy of the Grant administration deepened the Depression during the years 1870-1880. Thus, the policy of contraction was created. This policy enabled the per capita rate of stocks and gold to go down, which over time caused the Depression to decrease.