The Gilded Age in America

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Most information taken from:Steven Mercado Chaffey High School1245 North Euclid AvenueOntario, CA 91762

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Preface

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Not all of American history shows this country shining in all its glory. The period of Industrialism post Civil War Era is known as the Gilded Age. This is, in fact, one part of American history that is definitely not pretty! America was like four different countries having different problems in the Northeast, the new South, and the West. ± In short:
‡ The Northeast was dealing with industry, immigrants, robber barons, and monopolies. Life was rough and tough. ‡ In the West and South (primarily West) there were many groups of people having problems.
± ± ± ± ± The Native Americans The immigrant farmers living in homesteads The miners The cowboys The African Americans (South)

The ³New South´
‡ This is post Civil War and the black just got freed and got their ³rights´
± But how are they really getting along?
‡ Jim Crow laws in the South (until the 1960¶s)
± Plessy v. Ferguson (1896- allowed segregation) ± KKK is at large and can¶t be broken

‡ Grandfather Clause (they can¶t vote unless their grandfather could) ‡ Sharecropping, etc. (they are still like slaves)

The Northeast
‡ While the South is trying to get themselves back up, the Northeast seems to be prospering. ‡ They had their Industrial Revolution already and are continuing to industrialize. ‡ America was the perfect place for Industry to thrive! Why?
± They are inventing more and more now that they can patent inventions ± The country is HUGE and so there is a vast amount of natural resources. ± There is laissez-faire, social mobility, and people have money already (so they naturally want to make more« and CAN!) ± The government is stable and pro-business ± There are many immigrants from Germany, Italy, and Ireland who bring around a strong work ethic as well as cheap labor!

The Railroad System
‡ The railroad system was immense! ‡ It was revolutionary and helped in communication and transportation of people and goods.
± Before the railroad, when people needed to contact each other it could take days to reach someone close by, weeks for someone across the country, and immigrants waiting for news from their homeland waited months for a letter! ± Also, it kept businesses in touch, not to mention helped with trade! ± The thing was, though, getting people out into the great plains area of America to settle and work the railroad!
‡ The railroad enterprise, monopolized by Cornelius Vanderbilt, began to offer land and jobs to people (particularly Irish immigrants and Chinese immigrants [from California]) in the unpopulated areas of the country. ‡ As a result, towns began and soon after, cities!

Steam and Steel
‡ Even though the railroad system was so big and thrived, it relied on other big industries: steam and steel! ‡ The Steel Industry:
± Andrew Carnegie was a Scottish immigrant in the NE. He created the Bessemer Process in which he purified iron to make steel- a stronger and more efficient metal. ± Steel was used to make the trains and the tracks! ± One very important thing made with steel during this time period was our Brooklyn Bridge which was an architectural masterpiece!

‡ The Steam Industry:
± Steam was already commonplace by this time. ± It wasn¶t the industry itself that was important. ± The important this was that it:
‡ Let the railroad thrive ‡ Created a need for coal and iron which created jobs in mines and made that enterprise thrive

Electricity and Oil
‡ ‡ Electricity and oil were the other two big enterprises. Electricity
± It was created by Thomas Edison. He was the only man at the head of a monopoly who wouldn¶t be considered a ³robber baron´ (to be discussed in a later slide) since he was an inventor and not just some entrepreneur. s ± The effects of electricity were good and bad
‡ ‡ It did save money because you no longer required oil for lamps and it made things like the refrigerator and the refrigerator car possible. However, it meant that big factory owners could make their employees work longer shifts. Now that they had electric lighting, the sun¶s setting and rising did not dictate the work day.

‡

Oil
± ± ± ± John D. Rockefeller monopolized oil. Oil was used for the railroad, for lamps, and for factory machinery. It truly was a very important resource! The Sherman Antitrust Act of 1890 was a reaction to Rockefeller¶s oil industry. It outlawed any combination of companies that restrained interstate trade or commerce. In the end, though, it failed to prevent monopolies and the fat cats of businesses simply used it by twisting it into an anti-union act!

The Robber Barons
Listen to the song! Click HERE!
‡ ‡ ‡ The various men involved in these industries were not only brilliant but very sneaky! They often received the infamous name ³robber baron.´ So why were (or weren¶t) these gentlemen ³robber barons´? Andrew Carnegie (Steel)
± He used vertical consolidation in which he owned the means of every step in production. He owned everything from the mines where he got the iron from, to the factories, to the railroads and ships that he used to transport his goods. This makes him a robber baron. However, he seemed to be against large monopolies and eventually sold his enterprise to JP Morgan and gave his money to charities and libraries. This does not change the fact that he is a robber baron! He did not believe "money power" was dangerous unless it was in the wrong hands. Morgan bought up countless enterprises and mastered interlocking directorates. This means that, during this time filled with a number of depressions and recessions, he bought controlling shares of stock in member companies instead of purchasing companies outright. The "held" companies remained separate businesses on paper but, in reality, the holding company controlled them. Holding Companies made trusts unnecessary. In contrast to Carnegie, he mastered horizontal consolidation in which means that he simply bought out competitors in his field and put them all under his umbrella. He and Jay Gould were hot shots in the railroad business. At the time, this business was an oligarchy (ruled by a few, rich, guys) and they all were considered ³robber barons´ for this reason. Also, they did not regulate their fares or stocks often sneaking around the laws and rules by giving some people discounts and others, inflated fares. He actually was not a robber baron! He was an inventor- not an entrepreneur and so he earned his money in a fair way. He created an industry without having to crush others.

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JP Morgan (the Bank)
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John D. Rockefeller (Oil)
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Cornelius Vanderbilt
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Thomas Edison
±

The Beginning of Unions
‡ With the fat cats of businesses compensating for their ³robber baron´ ways through ³The Gospel of Wealth,´ ³Social Darwinism,´ and by boasting laissez-faire economics, workers were left powerless to fight back. Many farmers were poor due to drought and immigrants were stuck in contracts at factories. Whole families had to work unremittingly in a system of piecework (those who work longest and hardest received the most pay) Work environments proved to be extremely strict and bosses were relentless. Some people such as photojournalist and activist Jacob Riis (pronounces reez) created exposés to reveal the tragic conditions in factories, mines, slums, etc. In time, workers became Socialists (yes« like Communism) and began to come together in unions.

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First Unions
‡ The earliest union was the National Trades Union in 1834. It died after only a few years due to the panic and the depression of 1837. ‡ The Knights of Labor formed in Philadelphia in 1869. It included farmers, factory workers, shopkeepers, office workers, and workers who were skilled and unskilled and men and women. It also recruited 60,000 African Americans.
± They pursued broad reforms such as equal work, the eight-hour day, and the end of child labor. Wages was not an emphasis.

‡ By the 1890¶s. they had vanished and between 1886 and 1892, the American Federation of Labor (AFL) gained power. They had few African Americans and only contained skilled, male, workers separated by craft.
± They focused on increased wages, decreased working hours, and improved conditions. They encouraged collective bargaining in which workers negotiate with employers.

‡ In 1905, some people who were apposed to the AFL formed the IWW (Industrial Workers of the World) also called ³Wobblies´
± It¶s focus was on unskilled workers and represented miners, lumbermen, migrant farm workers, and some eastern textile workers.

The Reaction to Unions and Strikes
‡ ‡ Employers were naturally outraged by the unions being formed all over the place! They feared them and so they took several measures to stop them: ± They forbade union meetings ± They fired union organizers ± They forced new employees to sign ³yellow dog´ contracts in which workers promised never to join or form a union or participate in a strike ± They refused to bargain collectively (AFL idea) when strikes occurred ± They refused to recognize unions as their workers¶ legitimate representatives. When strikes broke out, they also reacted: ± They had lock-outs where they would not allow the workers back in after a strike ± They black listed those involved in strikes so that they may not be hired by anyone else ± Again, they used the yellow dog contract ± If the strike was volatile enough, they used an injunction which is an official court order for the immediate end of a strike ± The used scabs to replace those on strike

‡

Important Strikes
‡ Railroad Strike (1877)
± This was a sympathy strike which means that one group started it, others felt bad and joined in. ± The Feds had to be brought in and 100 or so people were killed. The railroad property was burned and there was lots of damage everywhere. The Feds brought in scabs and so the rioters achieved nothing.

‡

Haymarket Riot (1886)
± A group of anarchists went to Chicago¶s Haymarket Square where thousands of people had gathered for May Day. Suddenly, a bomb went off. Nobody ever knew who set it off but the fingers unjustly pointed towards the Knights of Labor and ruined them forever. 7 police were killed. 7 were wounded.

‡

Homestead Strike (1892)
± This took place at Andrew Carnegie¶s Pennsylvania steel factory. The current manager, Henry Frick, at that particular factory had just dropped wages. Intending to break the union strike, he hired 300 Pinkertons which were a private militia. Several were killed and wounded. Americans sympathized with the workers up until an anarchist, Alexander Berkman tried to assassinate Frick (although he was not associated with the strike itself).

‡

Pullman Strike (1894)
± Pullman, the creator of the sleeping car on the railways had always provided good conditions for his workers. However, after the Panic of 1893, he had to lay off workers and cut wages. When some workers argued it, he fired three and thus the strike began. Since the railroad was so nationally important, an injunction was ordered

The Wild West
‡ Again, America is very sectional right now. There is the industrial North, the rural South, and the Wild West. The South had some industry (cigarette factories and cotton) but nothing like the NE! So what happened in the West? ‡ The Wild West, as we call it colloquially often is associated with several stereotypes.
± We picture a cowboy (which is actually Mexican) wearing a hat, boots with spurs, chaps, and lariats. ± The cowboy is an important part of the Gilded Age in the West because they, along with miners, and farmers, populated the New West! ± However, in doing so, the Native Americans were mistreated once again!

Native Americans and the Buffalo
‡ ‡ ‡ ‡ The West (the Great Plains) of America is an absolute hell hole! There is bad land and no rain and the animals are all useless save the buffalo! But the railroad industry, wanted to populate that area for means of doing business, needs to attract people out there. The first issue is the Native Americans and their buffalo. What do we do to them? ± First they tried to pass the Dawes Act of 1887 which encouraged Indians to own private property and assimilate rather than share property collectively. ± We massively wipe them off! There is vicious slaughtering of Indians. The buffalo are also herded by cowboys up to raunchy towns like Dodge City where there is a railroad that transports them to Chicago slaughter houses. ± The Indians did put up a fight. They were far superior horseback riders but when it comes to arrows vs. bullets, their attempts proved futile. Some impressive battles included the Battle of Little Big Horn. ± The remainder of Native Americans were placed on reservations where they starved as they only knew how to hunt the buffalo for food. There was also (and still is today) the highest suicide rate on reservations. And yes, you can die from a broken heart!

Miners and Cowboys
‡ These three types of people then took over the West once the Indians were taken care of. ‡ Cowboys
± They were often blacks or former Civil War soldiers who had nothing to do. It was a relatively straight-forward job which paid a pretty penny. It was a tough life and took about 3 months for a cowboy to round up buffalo from the South and bring them up to railroad/mining cities for transport.

‡ Miners
± The good thing about the whole mining businesses is obviously that prospectors could find gold. The bad part was that it caused inflation. Miners would go out, often alone, to try their luck. They often would set up makeshift homes. Then they would need a bar to have a drink, and a prison, and clubs for some ³entertainment´ since they had no women! Then as a result, they may have children there from these women and they need a school. Soon a whole town springs up. BUT when the gold is all used up, they abandon the town and move on (this creates ghost towns).

Farming on Homesteads
‡ The government, in trying to get people to move out west, passed the Homestead Act. In this act, they gave away parcels of land to prospective farmers. This attracted immigrants and other people of the urban poor. This would not have even been possible before since the land was hard (buffalo trampled on it) and there was little rain. Now, however, there was the invention of the iron plow which let farmers tear up hard earth. They also created a technique of dry farming where they planted underground where there was moisture. Barbed wire was invented in 1874 by Joseph Glidden and this allowed farmers to keep their livestock under control! Now the Homestead Act was tricky! There were some catches:
± ± ± ± ± You had to be 21 or the head of a family. You had to be an American citizen or an immigrant applying for citizenship. You had to pay a $10 registration fee. Settlers had to build a house on the land and live their for 6 months of the year. You had to stay on the land 5 consecutive years to officially own it.

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Hardships on the Western Farms
‡ Farmers had trouble fulfilling the tasks necessary to keep up a homestead. Between the debts they owe for building up a house and farm and the problem of growing and trading crops, the farmers were having some real trouble. ‡ Railroads were hustling them and charging them too much to ship goods. ‡ The decreased income taxes and high import tariffs that benefited industrialists caused them grief because they could not sell their good over seas. ‡ The farmers react by forming two major alliances
± The Grange ± The Populists

The Grange
‡ The Grange (1867)
± This was based on the idea of farmers helping each other survive. ± They would get together in sewing bee¶s, for example. ± The Grange wanted the government to regulate the banks and the railroads (this is an attack on laissez-faire).
‡ As a result, there was the Interstate Commerce Act of 1886. In this, the government could control rates of interstate trade and transportation. This means that the railroads had to post their fares. However, no one really kept this law up and so it was corrupt.

The Populists
‡ The Populists eventually became a third party in the U.S. at this time. ‡ Before we get to how they gained power, we will discuss what they wanted:
± They wanted the direct election of senators (which we do have today) ± They called for a progressive income tax which means that they wealthy are taxed more heavily than the poor. ± They asked for no tariffs to be placed on imported goods. ± They became known as ³silverites´ because they desired paper money to be backed by silver.
‡ This, farmers hoped, would create inflation. This would result in higher prices for their goods. In addition, it would make it easier for them to pay off their debts to the bank. ‡ The industrialists in the NE (³gold bugs´) do not like this at all!

Events Leading up to the Populist Party
‡ A third party has never and will never last, but let¶s review the background that led to the creation of this third party in 1892. ± First of all, the government is very corrupt and it is at one of its lowest points.
‡ ‡ ‡ ‡ ‡ There is a divided government They catered especially to NE industrialists There is a strong laissez-faire attitude Social Darwinism is rampant The spoils system (patronage) is widely used

± There were some feeble attempts to fix things up, too, that went awry.
‡ 1878: The Bland Allison Act
± This catered to Populist cries for silver monetary value. The government took 2-4 million ounces of silver to be made into silver dollars. However, most of it was never released and it so it was ineffective.

‡ 1883: Pendleton Civil Service Act
± After Garfield was assassinated in 1881 for not giving a good enough job to someone through patronage, the government cracked down on the spoils system and made it necessary to take an examination to receive a government job. However, this is still corrupt today (but absolutely not as much).

‡ 1887: Interstate Commerce Act
± (consult slide on ³The Grange´)

‡ 1890: Sherman Antitrust Act
± The government tried to end monopolies but it was side skipped by vertical/horizontal consolidation

‡ 1890: McKinley Tariff
± This put a 48% tariff on imports which pleased industrialists but made Populists livid!

The Election of 1892
‡ So after all of these building tensions, the Populist Party emerged and had plenty of support. ‡ In the Election of 1892, they nominated James Weaver to run for the Populists. ‡ He ran against Grover Cleveland (Democrat) and Benjamin Harrison (Republican) ‡ Even though the Populist Party had great anticipation and excitement, Grover Cleveland won reelection. ‡ The Democratic party would then adapt some Populist platforms and the party would die out by the next election.

The Election of 1896
‡ Now, setting a bit of background, between 1893 and 1894, America was in a depression. So the people are losing jobs and don¶t have money to buy products. Farmers, therefore, are not selling goods and they can¶ t pay off their debts. Out of desperation, in 1894, thousands led a march in Washington. This was called ³Coxey¶s Army´ and made the government very nervous. So this election is between McKinley (Republican) and Bryan (Democrat). This election is very famous because it established a Republican government which will last until 1926! Bryan, the Democratic candidate reached beyond his party towards the immigrants (8-hour work day) and the Populists (silver monetary worth).
± In doing this he gained their support but lost the support of many of his Democratic voters who were ³gold bugs.´

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McKinley, who didn¶t so much as leave his state to campaign, won the election as he received votes from both the Republican and Democratic parties!
± At this, the farmers really did lose their power and wiped out any hints of Populism left behind.

More Resources: ‡Industrialism in the Gilded Age ‡The West: 1865-1900
‡Study your DBQ, notes, homeworks, and textbook

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