Farmers and the Populist

Problems: U.S. issues “greenbacks” during Civil War

Worth less than coins or “yellow” money farmers paying back loans with money that has a higher

value than the money they borrowedo Railroads have no competitioncharged farmers inflated prices to ship and store goods

Reform:GRANGE: est. by Oliver Hudson Kelley in 1867 fight railroads, organized co-ops, sponsored state legislation gave rise to other farm alliances in West and South 4 million members strong

Populism-1892 Populist Party1st reform movement

Movement of the people-give people a greater voice

Gives country a third partySupported bi-metallism and free coinage of

silverSupported Democratic candidateWilliam Jennings Bryan

Republican candidate wins election causing decline of populist movement

Populism’s two lasting legacies

Downtrodden could organize and have a strong political impact

Create and utilize an agenda of reforms

EXPANSION OF

INDUSTRY

Chapter 6

Fuel industrialization

OIL—1859 Edwin drake successfully drills for oil in Pennsylvania Starts Oil Boom Popularity of automobile contributes to production of

gasoline

STEEL—1850 Bessemer Process-injection of air into molten iron to remove carbon

Railroad tracks, barbed-wire, farm machines, construction

Inventions, worldwide communication network

Expanding urban population, vast potential market

Thomas Edison, 1876Incandescent Light BulbElectricity

Electric streetcar

1867, Thomas SholesTypewriter

1876, Alexander Graham BellTelephone

Age of the Railroad: created nationwide network of supplies and markets: linked isolated cities & towns: towns pop up on railroad lines

May 10, 1869Transcontinental

Railroad, central Pacific and Union Pacific meet at Promontory Point

Creation of Time Zones

November 18, 1883, synchronized across U.S.

Officially adopted as U.S. standard in 1918

Railroad abuses lead toeconomic and social unrest

George Pullman: provided town for workers, wanted stable workforce

Cut worker pay, but didn’t lower rent or prices

Leads to strike in 1894

Credit Mobilier: extreme corruption involving vice-president and future president

$23 million in stocks, bonds, cash to Union Pacific officers

Hurts Republican Party

Railroad Abuses

Created nationwide network of supplies and markets Linked isolated cities and towns Towns developed on railroad lines George Pullman—provided self-made “town” for workers believed it would provide a stable workforce• Controlling, cut worker pay, didn’t lower rent or pricesled to strike in 1894 Credit Mobilier—highest corruption involving current

Republican V.P. and future President$23 million in stocks, bonds, cash to Union Pacific officers

Railroad abuses in land grants, fixed prices, different rates

Grange pushes for political action

Granger laws = regulatory laws

Munn v. Illinois of 1877-Supreme court upheld Granger laws said federal govt. has right to regulate private industry to serve public interest

Interstate Commerce Act of 1887-established right of federal govt. to supervise railroad

Established ICC-5 man commission assigned to regulate railroad—ineffective until Theodore Roosevelt becomes president

Big Business/Andrew Carnegierags to riches story

Worked for Pennsylvania RR-allowed to buy stock and makes millions

1873-enters steel business Wanted to make better

products cheaper Attracted talented people

by allowing them to purchase stock

Encouraged competition

Vertical Integration- buys out suppliers to control materials and transportation

Horizontal Integration-buy out competitors merging companies making similar products

Can’t beat ‘em, join’em!

Idea of Social Darwinism applied to big business

Natural selection in business, survival of the fittest

“laissez-faire” – “allowed to do” whatever is needed to be a successful

Meaning the marketplace should not be regulated

Success or failure in business is a part of natural law

Can’t beat ‘em, join ‘em, continued

Holding company-a corporation that did nothing but buy out the stock of other companies

J.P. Morgan, wealthiest holding company 1894-runs ¼ of railroad 1901-U.S. Steel buys

Carnegie Steel creating world’s largest business

Trust-collection of different companies who turn stock over to one large corporation, trustees

John D Rockefeller, Standard Oil Company- used trust to gain 90% of refining business

Ruthless-Robber Barons

PhilanthropyCarnegie donated 90% of wealth accumulated during life

Rockefeller-gave over $500 million to charity

J.P. Morgan-Metropolitan Museum of Modern Art

Labor Unions-workers joining together to achieve better working conditions, wages,

hours …

1886, American Federation of Labor combined craft ( skilled workers from various trades) unions, very successful, 2+million members by 1945

Eugene V. Debs, reformer, socialistStrikes turn violent with “scabs”Employers feared powerful unions

Wouldn’t hire union members Made workers sign contracts not to join

Tragedy would lead to reform http://www.cbsnews.com/video/watch/?id=7360200n