Economy (1890-1920)

Question 1

Name 3 monopolies between 1890 and 1920

Answer 1

JP Morgan & Co
US Steel Company
Standard Oil Company

Question 2

What was the significance of the US Steel Company in 1901?

Answer 2

They were creating 67% of US Steel.

Question 3

What was the significance of JP Morgan in 1907?

Answer 3

During the Panic of 1907, Morgan was one of the wealthiest men in America. He formed the ‘House of Morgan’ which created the liquidity of funds in order to offer financial aid to struggling banks.

Question 4

What was the ‘House of Morgan’ ?

Answer 4

A group of bankers and financiers

Question 5

What was the significance of the Standard Oil Trust in 1911?

Answer 5

The monopoly was dissolved by the Supreme Court under the Sherman Anti-Trust Act - into 34 different companies.

Question 6

When was the Pullman Strike?

Answer 6

1894

Question 7

What was the Pullman Strike?

Answer 7

In 1893, George Pullman laid off hundred of railroad workers and cut others wages by huge amount (some even up to 30%). Hundreds of remaining workers, as part of the American Railway Union (led by Eugene Debs), walked out. This halted railway commerce in 27 states.

Question 8

What was the Pullman Strike’s significance?

Answer 8

WASPs blamed the strike on ‘foreign agitators’.
The ARU set fire to some buildings and a derailed locomotive.
Railway managers had to seek help from the federal government.
Federal troops were sent to Illinois and attacked a mob approx 30 people were killed.

Question 9

What was the Pullman Strike’s outcome?

Answer 9

The conditions of workers were at a standstill notwithstanding the strike, however the significance of railway workers became clear.

Question 10

When was the Homestead Strike?

Answer 10

1892

Question 11

What was the Homestead Strike?

Answer 11

Carnegies Steel had an agreement with the Steel Union - ended and Henry Frick (chair/chief executive of Carnegie’s Steel) announced wage cuts. 3800 workers lost their jobs. They all participated in the strike.

Question 12

What was the Homestead Strike’s significance?

Answer 12

Governor of Pennsylvania sent in 8,500 troops

Question 13

What was the Homestead Strike’s outcome?

Answer 13

12 people were killed.
The strike’s leaders were charged with murder, and others with lesser crimes.
Carnegie’s reputation was destroyed.

Question 14

How was government regulation imposed between 1890 and 1920?

Answer 14

Anti-Trust Legislation and Labour Rights

Question 15

Give an example of anti-trust legislation and what it did

Answer 15

Sherman Anti-Trust Act of 1890 - made monopolies illegal.

Question 16

Give an example of anti-trust legislation and what it did

Answer 16

Clayton Anti-Trust Act of 1914 - ensured fair competition in businesses.

Question 17

Give an example of labour rights and what it did

Answer 17

The Department of Labour was formed in March 1913.

Question 18

Give an example of labour rights and what it did

Answer 18

Adamson Act 1916 - established the 8 hour work day

Question 19

What was the Federal Reserve Act of 1913?

Answer 19

It was a precautionary measure taken which essentially meant that money would be available if another panic occurred in order to prevent banks collapsing in economic busts.

Question 20

Why was there economic growth in the US between 1890 and 1920?

Answer 20

Protectionism
Industrialisation
WW1 (Trade)
Urbanisation / Immigration (Great Migration)

Question 21

What is protectionism?

Answer 21

The US used it in the sense that they imposed tariffs on foreign imports to encourage demand on US products.

Question 22

Give 3 examples of industrialisation.

Answer 22

Steel Industry - (US Steel Company) 67% of US steel in 1901 - Bessemer Process.

Oil Industry - (Standard Oil) produced approx 90% of US oil from 1882 till it was dissolved in 1911.

Automobile Industry - (Ford) The Ford Model T was first produced in 1908 and began using the assembly line in 1913.