An Industrial Order Emerges, 1865-1880
After you read and analyze this chapter, you should be able to:
10. Identify the factors that led to rapid economic growth and industrial expansion after the Civil War.
20. Analyze the constraints that faced railroad developers and explain how the choices they made consequently influenced other enterprises.
30. Explain how American labor sought to improve its working and living conditions in the late nineteenth century and identify major instances of labor protest.
40. Explain the meaning of Social Darwinism and the Gospel of Wealth.
50. Outline people’s expectations about the role of political parties in the Gilded Age and the choices political parties offered voters.
60. Evaluate how American choices regarding Alaska, Latin America, and Asia reflected traditional American expectations regarding world affairs.
I0. Foundations for Industrialization
A0. Resources, Skills, and Capital
10. Factors that contributed to rapid U.S. industrial expansion after the Civil War included:
a0) Abundant natural resources: untouched farmland, grasslands, forests, and mineral resources.
b0) An experienced workforce, with many skilled artisans able to supervise unskilled industrial workers.
c0) Capital accumulated prior to the Civil War from shipping.
d0) Institutions to mobilize capital: banks, stock exchanges, and bank branches in England to raise capital there.
B0. The Transformation of Agriculture
10. Economic expansion was based on a well-developed agricultural sector.
a0) Transportation developed before the Civil War—canals and railroads—moved farm produce over long distances.
b0) Government policy made land available cheaply or even at no cost (under the Homestead Act).
20. Commercial crops increased markedly because of:
a0) New farming methods, such as greater use of fertilizer.
b0) New machinery, such as the McCormick reaper.
30. Agricultural growth stimulated other sectors of the economy, including:
a0) Steel, used in the production of farm machinery.
b0) Shipbuilding, because farm produce was the nation’s greatest export.
C0. The Impact of War and New Government Policies
10. Republican Party policies during the Civil War that set the stage for later economic growth included:
a0) Higher protective tariffs.
b0) Free land for farmers (Homestead Act).
c0) Support for higher education (Land-Grant College Act).
d0) Land grants to railroad companies.
D0. Overview: The Economy from the Civil War to World War I
10. Given the solid foundation for industrialization, the expansion of agriculture, and favorable governmental policies, the nation grew dramatically between the Civil War and World War I.
a0) Much of this growth was sporadic according to the ups and downs of the business cycle.
20. The depression that began in 1873 was both severe and long lasting.
II0. Railroads and Industry
A0. Railroad Expansion
10. A national railroad system developed in the late nineteenth century.
a0) Five transcontinental lines were completed.
b0) Track mileage increased almost fivefold.
c0) Almost all major rivers were bridged.
d0) A standard-gauge track was adopted.
20. Government aid contributed to railroad expansion.
a0) Between 1862 and 1871, the government awarded approximately 70 land grants to railroad companies.
B0. Railroads: Models for Big Business
10. The expansion of railroads created the potential for a nationwide market and stimulated the economic development of the West.
20. Railroad companies also provided an organization model for newly developed industries.
a0) Development of bureaucracy.
b0) Concepts of business administration.
c0) Raising capital on a national and international scale through sale of stocks and bonds.
30. Excessive competition, including ruinous price wars, led the railroad industry to employ methods to reduce competition and increase profits.
a0) The pool was an agreement to divide up the market.
b0) The rebate was a refund for preferred customers.
c0) Higher rates were charged for short hauls than for long hauls.
40. Methods used by the railroads in order to prevent government regulation included:
b0) Free passes for public officials.
c0) Bribery, such as the Credit Mobilier scandal.
C0. Chicago: Railroad Metropolis
10. Chicago experienced the most dramatic transformation as a result of railroad construction.
20. Other industries developed in Chicago as a result.
a0) Sears Roebuck and Montgomery Ward created the national mail-order business.
b0) Chicago became the center of the meatpacking industry.
D0. Andrew Carnegie and the Age of Steel
10. The trend in American business during the late nineteenth century was from many small businesses to a few giant corporations.
a0) Carnegie led the way in manufacturing, creating the largest and most complex steel company of all.
20. Carnegie, like many other industrialists, built a giant company on the principle of vertical integration.
E0. Survival of the Fittest or Robber Barons?
10. Social Darwinism applied Darwinian evolutionary principles to human society.
a0) Social Darwinists identified competition as the best way to ensure the survival of the fittest and to improve civilization.
b0) They portrayed the industrial entrepreneur as the fittest to survive and as one who improved the human condition.
20. Andrew Carnegie advocated the Gospel of Wealth.
a0) According to Carnegie, entrepreneurs contributed to civilization by returning their wealth to the community.
b0) Carnegie, Rockefeller, and other entrepreneurs accordingly practiced philanthropy to finance cultural and other public institutions.
30. Some accepted early industrial leaders as benefactors to the nation.
a0) Others said they were greedy and exploitative.
III0. Workers in Industrial America
A0. The Transformation of Work
10. Most adult workers were born in rural societies and had to adjust to working in industry.
a0) The rural worker set his own pace, while the industrial laborer’s pace was dictated by a machine whose pace was controlled by a manager.
b0) Efficiency experts determined ideal speeds at which workers were to function, while industrial engineers simplified work by breaking it down into small components.
c0) These techniques reduced the need for skilled labor and permitted greater control of unskilled workers.
B0. Workers for Industry
10. The labor force came from within the nation and from abroad.
a0) Rural dwellers in New England and the Mid-Atlantic states moved to urban areas.
b0) Immigration skyrocketed between 1865 and 1914.
20. Children worked in industry.
a0) More people worked in textile factories than in any other form of industry.
30. Industry also employed women.
a0) Single women and black women predominated.
b0) Women predominated as workers in textile factories and in offices.
c0) Women generally received lower wages than men, even for the same work.
C0. Craft Unionism—and Its Limits
10. Skilled workers formed the first unions, called craft unions or trade unions.
a0) Membership was limited to white males.
b0) The craft union controlled access to apprenticeship training.
c0) The craft union could use strikes effectively because of the employer’s need for skilled labor.
20. Efforts to form a national organization in 1866 foundered by 1872.
IV0. Politics: Parties, Spoils, Scandals, and Stalemate
A0. Parties, Conventions, and Patronage
10. Political parties dominated nearly every aspect of the political process in this era.
20. The Democrats and the Republicans had similar organizations and purposes.
a0) Nominations came from party conventions, and voters in each neighborhood gathered in party caucuses to choose delegates to these conventions.
b0) Party platforms explained their positions on issues and promises of policy changes.
c0) Candidates campaigned as party candidates, and campaigns were almost entirely party-oriented.
30. Once the votes were counted, winners appointed loyal supporters to government jobs using patronage.
a0) Those appointed to such jobs were expected to return part of their salaries to the party as a part of the spoils system.
b0) All government jobs were eagerly sought, especially those that included the duties of purchasing supplies or handling government contracts.
c0) Some critics of the spoils system argued that it invited corruption and that politics ignored principles and issues and revolved instead around greed.
d0) Defenders of the spoils system argued that politics required some sort of reward system, especially since such an enormous number of party workers were needed to identify and mobilize supporters.
e0) The Mugwumps were the most persistent critics and advocated a merit system based on ability to pass a comprehensive exam.
B0. Republicans and Democrats
10. Republicans asserted that they had a virtual monopoly on patriotism and that they were the party of prosperity.
a0) They pointed to a postwar economic growth that had resulted from their policies.
20. The Democrats typically explained what they opposed.
a0) Democrats opposed government interference in the economy as well as social relations and behavior, including the enforcement of black civil rights.
30. On Election Day, each party tried to make sure that all its supporters voted, and in 1876, more than 80 percent of those eligible cast their votes.
a0) Catholics and most immigrants supported the Democrats, which defended them against the American Protective Association, nativism, and prohibition.
b0) Outside the South, most old-stock Protestants voted Republican, and most African Americans also supported the party of emancipation.
C0. Grant’s Troubled Presidency: Spoils and Scandals
10. Too often, Grant named his friends to federal posts for which they were not qualified, but Congress also supplied its full share of scandal.
a0) The Credit Mobilier and the Whiskey Ring were among the most prominent scandals.
20. George W. Plunkitt, who typified many big-city politicians across the country, was a district leader of Tammany Hall in New York City.
a0) William Marcy Tweed, whose name became synonymous with urban political corruption, helped city government launch such major construction projects as buildings and public works improvements.
b0) Perhaps the most important single function the bosses served was to centralize political decision making.
D0. President Rutherford B. Hayes and the Politics of Stalemate
10. Rutherford B. Hayes became president after the contested 1876 election.
20. Hayes promised to only serve one term but annoyed many Republicans with his handling of patronage.
E0. Challenges to Politics as Usual: Grangers, Greenbackers, and Silverites
10. Farmers joined organizations they hoped would provide some relief.
a0) The Grange (Patrons of Husbandry) provided a social outlet for farm families but also educated them and grew rapidly.
b0) The Grange became a leading proponent of cooperative buying and selling.
c0) Granger Laws were state regulations prohibiting railroad rate discrimination.
20. The Greenbackers argued that prices would stabilize through printing more greenbacks, an idea that appealed to farmers in debt.
30. The Silverites wanted the government to resume issuing silver dollars.
F0. The Great Railway Strike of 1877 and the Federal Response
10. Railroad workers in many states went on strike spontaneously in the summer of 1877.
a0) Declining wages between 1873 and 1877, capped by a further reduction of 10 percent, led to such actions.
b0) Strikes and demonstrations of support ensued in many states among a cross section of industries.
20. Employers relied on federal troops, state militias, and urban police to break the strikes, with much loss of life and property damage.
a0) Many Americans feared continuing labor strife and even revolution.
V0. The United States and the World, 1865-1880
A0. Alaska, Canada, and the Alabama Claims
10. Secretary of State Seward agreed to buy Alaska from Russia for $7 million.
a0) The agreement extended full citizenship to the residents of Alaska but carried no promise of eventual statehood.
b0) This action was moving toward later patterns of colonial acquisition.
c0) Charles Sumner, chairman of the Senate Foreign Relations Committee, saw Alaska as the first step to the ultimate possession of Canada.
20. The United States claimed that the British violated its neutrality by cooperating with the Confederacy and agreed to arbitration in the Treaty of Washington (1871).
a0) Great Britain was held responsible for the direct claims and set aside $15.5 million as damages to be paid to the United States.
B0. The United States and Latin America
10. European nations sent military forces to Mexico to collect unpaid debts in late 1861.
a0) France remained in Mexico after Britain and Spain left.
b0) Archduke Maximilian was a puppet emperor for Napoleon III but apparently believed that the Mexican people genuinely wanted him.
c0) Resistance to Maximilian’s rule became a war, and only the French army kept him in power.
d0) Seward demanded that the French leave and sent 50,000 troops to the border. Napoleon III agreed to withdraw his army.
e0) Maximilian unwisely stayed behind and was executed.
f0) The withdrawal of French troops helped create new worldwide respect for the United States.
20. Some Americans considered the Caribbean and Central America as areas for future expansion.
a0) One driving vision was a canal to shorten the coast-to-coast shipping route.
b0) President Grant proclaimed a corollary to the 1823 Monroe Doctrine stating that no territory in the Western Hemisphere could ever be transferred to Europe.
30. Rather than annexation of territory, Secretary of State Fish encouraged trade, which was also important to later Secretary of State James G. Blaine.
a0) This would create additional markets for American products.
C0. Eastern Asia and the Pacific
10. Americans had long taken a strong commercial interest in the area, and American missionaries began to penetrate China in 1830.
a0) The first treaty with China in 1844 granted most favored nation status, which laid the basis for the Open Door policy.
b0) Trade prospects with eastern Asia fueled American interest in the Pacific.
20. Hawaii attracted missionaries as early as 1819, and its location near the center of the Pacific made it an ideal supply depot.
a0) The Senate exempted Hawaiian sugar imports from tariffs in 1875, which led to rapid expansion of the Hawaiian sugar industry.
b0) Many Americans organized sugar plantations in Hawaii, and sugar soon tied the Hawaiian economy closely to the United States.
c0) In 1887, the trade reciprocity treaties were extended, and Hawaii granted the U.S. Navy Pearl Harbor.
Identify the following items and explain the significance of each. While you should include any relevant historical terms, using your own words to write these definitions will help you better remember these items for your next exam.
10. Frank Roney
20. foundry workers
50. interchangeable parts
70. stock exchange
80. Homestead Act
90. protective tariff
100. public domain
110. Land-Grant College Act
160. Pacific Railway Act
180. fixed costs
220. mail-order sales
240. Andrew Carnegie
250. Social Darwinism
260. Gospel of Wealth
270. robber baron
300. craft union
310. National Labor Union
320. party convention
350. patronage system
380. Grand Army of the Republic
390. laissez faire
410. states’ rights
420. white supremacy
460. Credit Mobilier
470. Tweed Ring
480. William Marcy Tweed
500. Whiskey Ring
530. Granger laws
540. monetary policy
570. graduated income tax
580. gold standard
590. Bland-Allison Act
610. general strike
620. Great Railway Strike of 1877
630. William H. Seward
640. Senate Foreign Relations Committee
660. Monroe Doctrine
670. Benito Juarez
690. Danish West Indies
700. Santo Domingo
730. most–favored nation status
740. merchant marine
Select the correct answer.
10. All of the following factors contributed to a favorable climate for industrial development in the late nineteenth century EXCEPT a(n)
a0. abundance of natural resources.
b0. sympathetic national government.
c0. large and growing labor supply.
d0. universal system of public education.
20. Examples of how the Republican Party used the public domain to stimulate economic growth include
a0. forestation projects in arid regions.
b0. free grants of huge expanses of land to cattle ranchers.
c0. land grants to railroads.
d0. exploration for oil at government expense.
30. Agriculture contributed to industrial development after the Civil War
a0. by utilizing new farm machinery.
b0. because farm produce comprised a large category of exports.
c0. since farmers living in remote places could participate in the national market by purchasing through mail-order catalogs.
d0. All of these
40. Andrew Carnegie created the nation’s largest manufacturing enterprise during the late nineteenth century by relying on
a0. railroad pools.
b0. vertical integration.
c0. the method of centralized control called the trust.
d0. the sale of stock to thousands of individual investors.
50. Those most likely to approve of Social Darwinism were
a0. major industrialists.
b0. the urban poor.
c0. Samuel Gompers and Eugene Debs.
d0. socialists and other opponents of capitalism.
60. The first unions were those that represented
a0. skilled craftsmen.
b0. agricultural workers.
c0. office and clerical workers.
d0. unskilled laborers.
70. Appealing to Civil War memories was
a0. a tactic used effectively by Republicans.
b0. perfected by the Democrats.
c0. a clever tactic employed by the Mugwumps.
d0. used by northerners to defeat the Republican Radicals.
80. The national Democratic Party in the Gilded Age was most enthusiastic in its support of
a0. high tariffs.
b0. civil rights legislation.
d0. laissez-faire government.
90. Credit Mobilier and the Whiskey Ring are best described as
a0. groups of informal presidential advisers.
b0. factions in the Republican Party.
c0. political scandals during the Grant presidency.
d0. industrial cartels that controlled wages and prices.
100. The acquisition of Alaska in 1867
a0. was approved by Congress because of the great oil deposits there.
b0. was justified by many as a step toward the acquisition of Canada.
c0. cost Secretary of State Seward his job.
d0. almost provoked war with Canada and England.
110. The United States was interested in eastern Asia for all of the following reasons EXCEPT
a0. the China trade dating back to 1784.
b0. stories brought by American missionaries.
c0. the merchant marines’ need for ports in the Pacific for supplies and repairs.
d0. the possibility of building a canal.
120. The Bland-Allison Act did all of the following EXCEPT
a0. authorize a limited amount of silver dollars.
b0. fail to counteract deflation.
c0. receive support from silverites.
d0. receive condemnation from gold supporters.
130. In Munn v. Illinois, the Supreme Court ruled that
a0. the public should be able to control businesses with a “public interest” for the common good.
b0. the public should be able to control businesses with a “strong profit” for the common good.
c0. the public should not be able to control businesses for any reason.
d0. businesses should be taxed for the “public interest.”
140. The Grange
a0. helped elect Rutherford B. Hayes to the presidency.
b0. helped bring impeachment charges against Rutherford B. Hayes.
c0. extended full participation to women as well as men.
d0. organized urban workers to participate in politics.
150. Which of the following was a “defect” of patronage?
a0. Putting qualified people in the best government positions.
b0. Patronage revolved around greed for government positions.
c0. Allowing both major political parties to put their supporters in office after an election was over.
d0. Party activists were against it.
10. Although leading entrepreneurs agreed with the Social Darwinist notion that competition was beneficial, they often sought to reduce the level of competition in their own industries. Why did they fear competition in their businesses, and what steps did they take to bring it under control?
DEVELOPING YOUR ANSWER: Excessive competition in the late nineteenth century sometimes led to price wars (as in the railroad industry), which in turn led to lower profits. To reduce the perils of competition, industrialists relied on a variety of methods: pools and rebates in the railroad industry, vertical integration, trusts, and mergers.
The industrial entrepreneur did not work alone when he endeavored to reduce competition. He usually had the assistance of an investment banker like J. P. Morgan. You should be certain to explain in your essay that when investment bankers consolidated competing companies, troublesome price wars would be eliminated.
20. As industrialization and the consolidation of companies both swept across the United States in the late nineteenth century, the landscape of business changed dramatically. Provide as many examples as possible of the innovations that swept through American business during the period indicated.
DEVELOPING YOUR ANSWER: The following innovations warrant examination, and you should analyze the function and importance of each: the investment banker, advertising in the mail-order (or catalog) industry, the efficiency expert, and the industrial engineer.
You should show how each arose to meet a particular set of needs and how each therefore played a part in the nation’s new economy.
30. American industrialization during the late nineteenth century was often accompanied by conflict between labor and industrialists. Describe the steps taken by labor in its efforts to win concessions from management.
DEVELOPING YOUR ANSWER: Unions could develop either along craft lines (unionizing only skilled workers) or by unionizing all workers. You should describe how this division affected the development of the Knights of Labor and the American Federation of Labor. Explore also the differences and the similarities in their respective approaches to taking action.
Labor also attempted to improve its lot by calling major strikes, and you should describe the most important of these in your essay.
Examine the chapter’s opening map as well as Map 17.2 to answer the following questions about American economic development during the last quarter of the nineteenth century.
10. During the time period indicated, Chicago emerged as the country’s rail center. What geographic factors contributed to that development? What edge did Chicago have over other cities in the Midwest?
20. Why was one of the most renowned arrangements used by the railroad industry to curb competition called the Iowa Pool?
30. What accounts for the importance of Minnesota and Wisconsin to an industrial developer like Andrew Carnegie?
40. Identify at least five states whose mineral resources contributed to industrial expansion.
To answer the following questions, consult the Individual Choices section at the beginning of the chapter.
10. Who introduced Frank Roney to organized labor?
20. Why did Roney leave Ireland to come to the United States?
30. Why did Roney find the pace maintained by American workers personally degrading? Do you agree or disagree? Why or why not?
40. Why do you think Roney became a successful union leader?
0Examining a Primary Source: Andrew Carnegie Explains the Gospel of Wealth
To answer the following questions, consult the Individual Voices section at the end of the chapter.
10. Identify Andrew Carnegie.
20. How do you think Frank Roney would have responded to Carnegie’s praise of competition?
30. How does Carnegie’s notion of the Gospel of Wealth compare with Social Darwinism?
40. Is Carnegie being consistent in arguing for the benefits of competition and survival of the fittest, on the one hand, and insisting on the obligations of wealth, on the other?
RUBRIC: Research other labor movements in various industries emerging in the United States.
Answers to Multiple-Choice Questions
1. d. Because this statement is not true, it is the correct choice. Child labor, rather than schooling, was widespread. See page 509.
a. Because this statement is true, it is not the correct choice. Minerals and rich agricultural land abounded. See page 492.
b. Because this statement is true, it is not the correct choice. A protective tariff and land grants to railroads contributed to the development of industry. See page 496.
c. Because this statement is true, it is not the correct choice. The labor force more than doubled after the Civil War. See page 508.
2. c. Between 1862 and 1871, the federal government gave railroads 128 million acres. See page 500.
a. Government aid under the Republicans during the Civil War included land grants to railroads, free land for farmers, and land-grant colleges. See pages 496, 499-500.
b. See 2a.
d. See 2a.
3. d. Because a, b, and c are true, this is the correct choice.
a. Although this statement is true, it is not the correct choice. Farmers readily adopted the new machinery produced by industry. See page 495.
b. Although this statement is true, it is not the correct choice. Much of the U.S. exports were in agricultural produce, and this stimulated ship construction. See page 498.
c. Although this statement is true, it is not the correct choice. Rural inhabitants could avail themselves of the new mail-order companies, and this in turn would certainly have contributed to the demand for goods manufactured by industry. See page 503.
4. b. Carnegie practiced vertical integration, from the iron mine up through the steel mill. See pages 504-505.
a. He was a steel manufacturer not a railroad developer. See pages 504-505.
c. This method of centralization was associated with John D. Rockefeller. See pages 504-505.
d. For vertical integration, the method that he did employ, see pages 504-505.
5. a. Many, Andrew Carnegie, for example, believed that successful industrialists exemplified the Darwinian concept of survival of the fittest. See pages 504-505.
b. As the ones who were at the bottom of the social scale, they were not likely to embrace the idea that advancement came only to those who were the most fit as ruthless competitors. See pages 504-505 for the element of competition in Social Darwinism.
c. As labor leaders, they opposed the industrial entrepreneurs who embraced Social Darwinism. See pages 504-505
d. Great capitalists like Andrew Carnegie were the ones who approved of it. See page 504-505.
6. a. Craft (or trade) unions arose before the Civil War. They enrolled only skilled workers. See pages 510-511.
b. Unions developed in urban environments. See pages 510-511.
c. Unions emerged to represent, first, skilled craftsmen and, later, unskilled laborers. See pages 510-511.
d. Unions for unskilled labor developed after unions for skilled craftsmen. See pages 510-511.
7. a. The Republicans took credit for fighting and winning the Civil War. See pages 513-514.
b. The Republicans implied that they had been disloyal during the Civil War. See pages 513-514.
c. Civil War memories had nothing to do with their cause of fighting corruption in government. See pages 513-514.
d. It was a Republican tactic. See pages 513-514.
8. d. The party opposed a role for government in the economy. See pages 514-515.
a. They opposed protective tariffs. See pages 514-515.
b. Southern Democrats, in particular, opposed federal protection for the civil rights of African Americans. See pages 514-515.
c. Prohibition was not popular among the urban immigrant groups whose votes the Democrats courted. See pages 514-515.
9. c. In the Credit Mobilier affair, congressmen received Union Pacific Railroad shares at a cheap price. The Whiskey Ring scandal involved presidential appointees and reached even into the White House. See pages 515-516.
a. These are the names of political scandals during the Grant administration. See pages 515-516.
b. See 9a. See pages 515-516.
d. See 9a. See pages 515-516.
10. b. See page 521.
a. Oil did not play a part in the purchase of Alaska. See page 521.
c. Seward did not get into trouble because of this initiative. Although newspapermen mocked it as “Seward’s Folly,” the Senate approved. See page 521.
d. In fact, the United States and Britain (which owned Canada at the time) agreed to arbitration to settle claims made by America for damages caused by Confederate ships built and repaired by Britain during the Civil War. See page 521.
11. d. Since this statement is incorrect, it is the best choice; the United States was interested in a canal in Latin America, not Asia. See pages 521-522.
a. This statement is correct so it is not the right answer. See pages 521-522.
b. This statement is correct so it is not the right answer. See pages 521-522.
c. This statement is correct so it is not the right answer. See pages 521-522.
12. d. This statement is incorrect so it is the best answer. See page 519.
a. This statement is correct so it is not the right answer. See page 519.
b. This statement is correct so it is not the right answer. See page 519.
c. This statement is correct so it is not the right answer. See page 519.
13. a. This statement is correct. See page 518.
b. This statement is wrong. See page 518.
c. This statement is wrong. See page 518.
d. This statement is wrong. See page 518.
14. c. This statement is correct. See page 517.
a. This statement is incorrect. See page 517.
b. This statement is incorrect. See page 517.
d. This statement is incorrect; the Grange was an organization of farmers. See page 517.
15. b. This statement is correct. See page 513.
a. This statement is incorrect. See pages 513-514.
c. This statement is incorrect; only the winning party was allowed to do this. See pages 513-514.
d. This statement is incorrect; on the contrary, this is why many people were active in the party. See page 513.
Copyright © Houghton Mifflin Company. All rights reserved.