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Industrialization (1865-1901) - Coggle Diagram
Industrialization (1865-1901)
The Rise of Industry
The Rise of Industry
Industrial Revolution began in United states in early 1800s
Out of population ofver 30 million, only 1.3 million Americans worked in industry (when 1861 civil war began)
After the war，industry start to increase amounts
Millions of Americans start to choose to work in mines and factories instead of work in farms
Factories start to replace simple hand tools
Factories start to replace small workshops
By 1914 the nations's gross national product is eight times greater than it had been in 1865 ( end of civil war)
The Gross National Product (GNP) is the total value of all goods and services that a country produces
Natural Resources
Abundance of raw materials
Reason for nation's industrial success
United States got many natural resources
(Timber Coal Iron Copper)
American companies could obtain materials in cheap price
Do not need to import from other places
Resources located in American West
Settlement of this region helped accelerate industrialization
Railroads took settlers and miners to each region and carried resources back to factories in East
People start to use petrolecum
in high demand material
Use of Kerosene
the use of kerosene is for lanterns and stoves
Western Pennsylvania
which there are oil in the surface of area
Edwin Drake
First drilled the oil well near Titusville
Later on oil fields by 1900 led to economic expansion
Large Workforce
Human resources available to American industry
As important as natural resources
population 1860-1910 population of United States tripled
Provides workforce for industry
Creates greater demand for the consumer goods manufactured by factoreis
Industry start to grow- social and economic conditions in mainly europe and china convince them to immigrate to America
Also some trying to escape from oppressive governments and religious persecution
They increase production and become consumers
Mainly large families and the flood in of immigrants causes the increase of population
Better living condition- more children survived
New Inventions
Nature resources, larbor- essential to American economic
Also those new inventions
Improve nation's productivity and transportation also communication network
New inventions- take new industry, which means more wealth and jobs
Bell and Telephone
1874 a scottish immigrant- Alexander Graham Bell
Suggest the idea for telephone to his assistance- Thomas Watson
1876 Alexander Graham Bell succeed
The telephone revolutionized business and personal communication
In 1877 he ordered Bell Telephone Company,
Edison, Westinghouse, and Electricity
Thomas Alva Edison
Learn about mechanical workings of objects in early ages
laboratory at Menlo Park
set up his lab with money he earned, by improving the telegraph system for western union
lab- “invention factory.”
first five years Menlo Park
By the time he died, Edison held more than one thousand patents.
Edison company began to transform American society in 1882 when it started sup- plying electric power to New York City.
achieved international fame in 1877 with invention of the phonograph
two years later, he invented the electronic generator and the lightbulb
George Westinghouse invented an air-brake system for railroads.
provided a continu- ous braking system
Westinghouse develop AC (alternate current) system distribute electricity using transformers and generators
Work with Nikola Tesla
first to use the hydroelectric power of Niagara Falls to generate electricity for streetcars and lights in Buffalo,
Technology’s Impact
Shortly after the Civil, Thaddeus Lowe invented the ice machine
Swift Meatpacking, hired an engineer to develop a refrigerated railroad car.
Swift shipped the first refrigerated load of fresh meat in 1877
The wide use of refrigerater keeps the food fresh and reduce the risk of food poisoning
Industry's impact
Textile Industry
mid- 1800s, Northrop auto- matic loom allowed cloth to be made at a much faster rate.
Bobbins, which had to be changed by hand, could now be changed automatically.
clothing industry
Power-driven sewing machines and cloth cutters
move from small tailor shops to large factories
Similar changes took place in shoemaking. By 1900 cobblers had nearly disappeared.
Depended on machines turning fibers to cloth
improved communications.
e.gCyrus Field laid a telegraph cable across the Atlantic Ocean in 1866
Creates direct communication between America and Europe
Free Enterprise
America industrialize rapidly was its free enterprise system
late 1800s, many Americans embraced the idea of laissez-faire
French phrase meaning “let people do as they choose.”
Believers of this laissez faire believes that government should not interfere in the economy other than to protect private property rights and maintain peace.
argue that if the government regu- lates the economy, it increases costs and even- tually hurts society more than it helps.
they need elies on supply and demand, rather than the government
free market with competing companies leads to greater efficiency and creates more wealth for everyone.
they need to make sure support low taxes and limited government debt
ensure that private individuals
Government will not have the power to control the decisions for a nation's future wealth
late 1800s, the profit motive attracts many ambitious people
Entrepreneurs—people who risk their capital to organize and run businesses
attracted by the prospect of making money in manufacturing and transportation
entrepreneurs from New England
they gain money by developing trade, fishing, and textile mills, now invested factories and railroads
another important source for private capital
Europe- Great Britian
government went beyond laissez-faire and introduced policies intended to promote business.
early 1800s, leaders in the Northeast and the South had different ideas about the proper role of the government in the economy.
Northern leaders
wanted high tariffs (关税) to protect manufacturers from foreign competition and also supported fed- eral (联邦) subsidies (补助金) for companies building roads, canals, and railroads.
Southern leaders
opposed subsidies and favored low tariffs to promote trade and to keep the cost of imported goods low.
Civil War ended the debate
Southern states seceded
Morrill Tariff
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late 1800s, the United States was one of the largest free trade areas in the world
The Railroads
Linking the nation
The Transcontinental Railroad
the rail road boom began in 1862
President Abraham Lincoln signed the Pacific Railway Act.
provides the construction for transcontinental railroad by two corporations
Government want fast construction, so they give lands around the right of way
Competition between the two companies started
they want to own and obtain as much as land and money as possible
The Union Pacific
direction of engineer Grenville Dodge, a former Union general
Began constructing (pushing)westward from Omaha, Nebraska, in 1865
Larborers face some very extrem nature problems (also native americans)
10,000 workers
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lots of extreme problems, including gambling fighting and hard drinking
Larbor, money engineering problems plagued (困扰) this company
things need to get pass Missouri River
Civil War veterans, newly recruited Irish immigrants, frustrated miners and farmers, cooks, adventurers, and ex-convicts.
from Omaha, across the Great Plains, to Utah.
The Central Pacific
Central Pacific Railroad eastward from Sacramento, through the Rocky Mountains to Utah
began as the dream of engineer Theodore Judah
hired about 10,000 larbor from china out of shortage of larbor in california
four Sacramento merchants: grocer Leland Stanford, shop owner Charley Crocker, and hardware store owners Mark Hopkins and Collis P. Huntington
Sold stock at first
All the equipment—rails, cars, locomotives, and machinery—was shipped from the eastern United States
At 1869 two railraods met each other
The increase of railroads created many new jobs
For example, textile workers made more fabric for train seats etc.
Increase the need to coal
The last spike
Workers completed the Transcontinental Railroad in only four years
Each mile of track required 400 rails
each rail took 10 spikes.
The Central Pacific, starting from the west, laid a total of 688 miles of track. The Union Pacific laid 1,086 miles.
May 10, 1869 in Promontory Summit, Utah, join the Union Pacific and Central Pacific
to dig in the last few spikes, many audience watching
Railroads required major capital investment and government land grants. (大量资金和政府给的土地
both can make huge profits and also corruption (贪污腐败)
In1865, America own about 35,000 miles of railroad track
1900- boom of industry, America had more than 200,000 miles of track.
After the civil war, railroad develop fastly, linking regions, improving transportation
Railroads Spur Growth
The transcontinental railroad- first few railroad start to crisscrossing the nation
linking different regions together
increased the markets for many products
Help America industrial growth
Also stimulate(促进) America economy growth- by spending money on steel, coal, timber and other materials
small railroads been built before civil war
Big rail lines took over them
Cornelius Vanderbilt.
one of most succeesful railroad consolidators
In four years, he expand control over to chicago railroads
help him to offer the first direct rail service between New York City and Chicago
1869, he merged three Newyork railroads
form the NewYork Central, running from NewYork City to Buffalo.
Time zones
Before the 1880s, different time zones look at time by observing the sun
Out of safety problem, American Railway Association divide America into four time zones
Federal government confirm this by 1918
New technology
new locomotive technology and the invention of air brakes
allows trains to take heavier weight and become for efficient
Railroads were changing American society by adding communication between regions and many other ways
Robber Barons
Building railroads requires many money (most of the time more than they have
To encourage construction of railroads, government gave land grants to companies
the companies then sold the land out to raise money for building the railroads
1850s-1860 federal land grant system give the railraods over 120 acres of public land
Several railroads, including the Union Pacific and Central Pacific, received enough land to cover most of the cost of building their lines.
Too many land and money given, the railroad entrepreneurs have been accused
Jay Gould
the most notoriously and corrupt railroad owner (最腐败贪污的)
Land owners found that using the land grants can make more money than building the railroads
to get more land grants they began to bribing members of Congress.
Crédit Mobilier
Corruption in the railroad industry became public in 1872
was a construction company set up by sev- eral stockholders of the Union Pacific Railroad
many members Acting for both the Union Pacific and Crédit Mobilier,
they signed contracts them self, so they made alot of money
they give many bills with out questions
the scandal didn't affect the outcome of the elections.
The Great Northern Railroad
James J. Hill
a good man, offered low fares to settlers who home- steaded along his route.
sold homesteads to the Norwegian and Swedish immigrants coming to the region.
Hill built and operated the Great Northern Railroad from Wisconsin and Minnesota in the East to Washington in the West, without any federal land grants or subsidies
He had carefully planned the railroad’s route to pass close to established towns in the region.
identified American products that were in demand in China, including cotton, textiles, and flour
haul those goods to Washington for shipment to Asia.
most successful transcontinental railroad and the only one that was not eventually forced into bankruptcy.
Big Business
The rise of big business
Start to develop corporations
an organization owned by many people but treated by law as though it were a person.
own property, pay taxes, make contracts, and sue and be sued
raise large amounts of money for big projects while spreading out the financial risk.
Selling stocks to public
At first there is a state legislature
after there is no need for the issue of state legislature, corporations start to increase
With selling stocks for money
invest in new technologies, hire large workforces, and pur-chase many machines
achieve economies of scale
the cost of manufac- turing is decreased by producing goods quickly in large quantities
Big business
all businesses have two kinds of cost
fixed cost
costs a company has to pay, whether it is operating or not
for example loans, mortgages, and taxes (税务和债务)
operating cost
cost that occurs when running/operating a company
for example- paying wages and shipping costs and buying raw materials and supplies.
small manufacturers
usually had low fixed costs but high operating costs
cheaper to close company for a while
Big manufacturers
had the high fixed costs of building and maintaining a factory
so it can make more money by operating the company instead of closing it
big corporations had several advantages
they can produce products in cheap price and efficienty
also they can countinuing making money even when recession by operating the company
able to negotiate rebates(退回货物)from railroads etc.
Small companies hard to compete with large manufacturers
so accusing them behaving unethically by drving small companies out of business
competition between the fixed cost drive many small companies out
Consolidating Industry
Pools
because of the decrease of price benefited consumers, they cut into profits.
so they organize agreements, to keep prices at a certain level.
interfered with competition and property rights.
no more legal protection because courts and legislatures don't like it
Andrew Carnegie and Steel
was secretary of Thomas Scott
Carnegie became the new superintendent, because his energy effect scott
he know that he can make a lot of money by investing in companies that served the railroad industry
trip to Europe, met Sir Henry Bessemer,
invented a new process for making high-quality steel efficiently and cheaply.
Carnegie opened a steel company in Pittsburgh in 1875 using Bessemer steel process (effecient)
began vertical integration
A vertically integrated com- pany owns all of the different businesses on which it depends for its operation.
saved money and enabled many companies to become even bigger
Rockefeller and Standard Oil
horizontal integration
combining firms in the same business into one large corporation
When a company began to lose market share, it would often sell out to com- petitors to create a larger organization
when oil is discovered
Rockefeller decided to build oil refineries instead
By 1870, his com- pany, Standard Oil, was the nation’s largest oil refiner. He then began buying out his compet- itors.
When a single company achieves control of an entire market, it becomes a monopoly.
New Business Organizations
American's thoughts about monoply
charge whatever it wanted for its products.
keep prices low because raising prices would encourage competitors to reappear and offer the products for a lower price
preventing the rise of monoply
states made it illegal for one company to own stock in another company.
trusts a new way of merging businesses that did not violate such laws
trustee do it for you (deal with the stocks)
control a group of companies as if they were one large, merged company.
Holding Companies
allowed corporations char- tered in New Jersey to own stock in other businesses without any need for special leg- islative action
use law to create organization - holding company
not produce anything itself. Instead, it owns the stock of companies that do produce goods.
Investment Banking
mid-1890s, when investment bankers began to help put new holding companies together.
most famous investment banker- J. P. Morgan
began his career in 1857 as an agent for his father’s banking company in New York
The bankers would then find people willing to buy the stock and sell it for a profit
Morgan merged Carnegie Steel with other large steel companies into an enormous holding company called the United States Steel Company
Selling the Product
retailers—companies that sell products directly to consumers
By 1900, retailers were spending over $90 million a year on advertising in newspapers and magazines.
Chain stores
focusing on low price
Woolworth’s, which opened in 1879, became one of the most successful retail chains in American history.
issuing mail-order catalogs
for ads
N. W. Ayer and Son, the first advertising company
Unions
Working in the United States
Life for larbor and workers in America is hard and dangerous, also there is many safety concerns
Industrialism led to a dramatic rise in the standard of living.
So between 1860 and 1890 the wage increase over 50 percent
Deflation, or a rise in the value of money,
add the tention between employors and workers
deflation causes the price to fall
increased the buying power of workers’ wages
workers mad at getting less wages
concluded that they needed a union to bargain
to get better living and work conditions
Early Unions
two basic types of industrial workers over the 1800s
craft workers
with special skills and training
(machinists, iron molders, stonecutters, shoemakers, printers etc.
higher wage
Common laborers
With few skills, recieve less wage
Craft workers first start to form trade unions
there were 32 national trade unions in United States
Most successful were Iron Molders' International Union, International Typographical Union, Knights of St.Crispin-the shoemaker's union
Industry oppose Unions
Employers need to negotiate with trade unions, because they represent the workers with skills they needed
Employers view unions as conspiracies that interfered with property rights(有阴谋的,秘密计划)
they particularly oppose industrial union
Gathers all workers in a particular industry
companies use techniques to stop workers from building unions
make them promise not to join one, use detectives, use blacklist (list of troublemakers, no company would hire them)
they use lockouts to break union(locked workers out of the property and not pay them
if there was a strike, they will hire strikebreakers our replacements
Political and Social Opposition
Breaking unions often succeeded because no laws give workers the right to form union or requiring owners to negotiate with them
courts thinks that those strikes would break trade, so larbor leaders might be fined or jailed
Marxism
believe that basic force shapong capitalist society is class struggle, the workers will overthrow the government and seize control
few supported anarchism, which they believe no need for government
some believe only violence and solve the problem
At the same time many European immigrants headed to America
people began associate immigrants with radical ideas, they are concerns for law and order, so often need officials to use courts, police and even army to solve problem
Struggling to organize
The great Railroad Strike
panic in 1873 - severe recession, struck American economy, forced companies to cut wages
the strike involve 80,000 workers, affected two thirds of nation's railway
workers walked off job and block tracks
President Hayes sent federal troops
strike finally collapse, more than 100 people died
the violance alarm Americans for more peaceful means to settle labor disputes
The knights of Labor
Leader, Terrence Powderly
opposed strikes, prefer boycotts to pressure employers
support arbitration
third party helps workers and employers reach agreement
welcome woman and African Americans
Early Successes, use strikes (early 1880s), successful, members grew from 100,000 to 700,000
Because of Haymarket Riot, lost reputation, lost strikes (accuse for dangerous thoughts
The Homestead Stike
steel mill (of carnegie) managed by anti, union
cut wages by 20 percent
let out Pinkertons and detective to bring in replacement workers
gunfire, workers don't let them in the land, died, after four months, the strike collapse
The pullman Stike
American Railway Union, try to organize all employees of railraod industry
Pullman company laid off workers and slashed wages, make it difficult for life
strike began
court involve, issued an injunction, directing the union to halt the boycutt
Pullman and ARU stike collapsed
gave business powderful tool for dealing with labor unrest
New Unions Emerge
Rise of AFL
American Federation of Labor
a dominant union of the late 1800s, focuse on promoting the interestes of skilled workers
Samuel Gompers, first president of AFL
try to stay on wages, working hours, working conditions etc simple problems, pure unionism
develop slowly, by 1900 over 500,000 members, but the union agains African Americans, and only few admit women
The IWW
The Industrial Workers of the World
with out making distinctions between the skilled and unskilled
believe in that working lcass and employing class have nothing in common
believe all workers should be organized in one big union
1912 organized successful strike of textile workers, companies reversed the wahge cuts after weeks
but still most strikes failed
working women
1900 women made up more than 18 percent of the labor force
one third of them work as domestic servants, another third worked as teachers nurses and sales clerks, the remaining third is industrial workers
they paid less wage for women even for when they perform the same jobs, they believe all women need men's support
most famous leader- "Mary harris Jones"
Irish immigrant, began as labor organizer
1909 a strike leads to won and won union recognittion in industry and better wages and benefits for employees
1903, establish of Women's Trade Union League
WTUL pushed for eight hour workday, minimum wage, and end to evening work worm women, and abolition of child labor