1890-1920 Economic change and developments: the rise of US dominance as an economic and industrial power and the consequences of this Flashcards
To what extent did Industry grow from 1890-1912?
Industry continued to expand, particularly oil and steel. Iron production rose from 920,000 tons in 1860 to 10.3 million tons by 1900. The city of Pittsburg, in Pennsylvania, became the centre of the iron industry. It was highly centralised with 38 steel plants along 42 km of navigable rivers.
Modern oil production began in January 1901 with the success of the Lucas Well in Spindlehop, Texas. This well produced 70,000-110,000 barrels per day for nine days before being capped. Further gushes were discovered throughout the Southwest. Indeed, by 1907 Oklahoma was the leading oil producer and, six years later, was producing 25 per cent of the nation’s oil.
Trusts and monopolies also continued to develop. By 1904, the largest 4 per cent of US companies produced 57 per cent of the total industry of the USA.
The Carnegie Steel Corporation, which had been set up by Andrew Carnegie, was sold to J. P. Morgan in 1901. It was renamed US Steel and became the world’s first billion-dollar corporation.
How influential was the Depressions of 1893?
The Depression of 1893 sparked a stock market crash that turned into the worst depression in American history up to that time. The crisis sparked a four-year depression in which 15,000 companies and 600 banks closed and the national unemployment rate approached 20 per cent. Soup kitchens were opened to help feed the destitute.
President Grover Cleveland was among the last of the conservative Democrats who supported limited federal government and believed, like most people of both major parties, that the business cycle was a natural occurrence and should not be tampered with by politicians. He was a supporter of a sound monetary system based on gold. As such, he opposed many in his party by calling for the repeal of the Silver Purchase Act. Cleveland persuaded enough members of Congress to pass the Repeal of the Silver Purchase Act in October 1893. This helped boost business confidence and gradually reduced unemployment.
Perhaps most importantly, the panic of 1893 and the subsequent depression
led to the rise of Progressivism. The panic of 1893 and other factors had a lasting impact. The effects of the Depression lasted until 1897. One response to the series of failures and bankruptcies was an upsurge in business consolidations.The poorer elements of society believed they had been ignored during the hard times and then were left at the mercy of the trusts. This encouraged the rise of Progressivism.
Was there Agricultural Discontent from 1890-1912?
Farmers in the South and West did not share the prosperity and expansion experienced by industry. Moreover, they objected to the power of bankers and corporations. Farmers traditionally saw themselves as independent and self-sufficient, but many relied on loans to get them through the farming year.
However, falling agricultural prices, together with higher prices charged for grain storage and transportation, meant less income for repaying loans. Many farmers blamed the railroads and bankers for their problems.
They joined together into Farmers’ Alliances, creating unity for themselves through co-operation and mutual self-respect. These Alliances led to the Populist Party and support for the Democrats in the presidential election of 1896.
What was the Pittsburgh steelworkers strike of 1892?
At Carnegie’s Homestead Steelworks plant the manager, cut wages in 1892 and refused to accept union negotiation. In an attempt to break the power of the union, the Amalgamated Association of Iron and Steel Workers, private detectives were used to smuggle in strike-breakers, who were then attacked by the strikers. The Company called in the militia, armed with rifles and machine guns. However, after five months without wages, the strikers were starving and their action collapsed. This defeat set back union power considerably.
What was the Pullman strike of 1894?
This was the first national strike in the USA and it paralysed the railway system. The Pullman company had cut wages but refused to lower rents for the houses where employees were required to live. When the workers went on strike, the American Railway Union (ARU) run by Eugene Debs refused to handle any trains carrying Pullman cars including mail trains. The railway owners asked President Cleveland for support and he agreed to send in troops to keep the trains running. Rioting was followed by the troops firing into the crowd and killing four people.
The strike gradually ended in failure with the rents remaining as they were. The federal government had shown itself hostile to unions and willing to shoot its own citizens. The Omnibus Indictment Act, used against the ARU, permitted the legal banning of strikes and remained in force until the 1930s.
