The Gilded AgeGilded: covered with a thin layer of gold (although the inside may be

worthless material)

IntroductionIn the late 1800s, Mark Twain and Charles Dudley Warner wrote the book called The Gilded Age. In the book, the authors made fun of the politicians in Washington and other leaders of the day. In this case, gilded means that something is covered with gold on the outside, but the inside is cheap and inferior.

The Gilded AgeThe name of the book became the name of the age, which lasted roughly from 1875 to 1900. The Gilded Age was a time of tremendous wealth, but underneath it was a period of intense greed and corruption. Keep in mind that this time period overlaps some of what you have already studied. Reconstruction after the Civil War lasted until 1877, so part of Reconstruction falls into this time period. Also, many of the events in the previous era studied occurred during this period: settling and closing of the western frontier, Indian wars, farmers’ grievances, and the Populist Movement. Now we’ll look at other aspects of this time period. Here’s a summary of this “Gilded Age.”

Industries grew and became more modern and productive New sources of power from electricity and oil were discovered or invented Railroads became big business, but they cheated their customers to gain their

success Oil and steel also became huge industries with one company in each field gaining

control of most of the markets Cities grew at a steady rate as “country” people moved into the cities. A steady

stream of new immigrants made the cities grow even larger Workers organized into unions to demand higher wages and better working

conditions

IndustrializationYou have already seen that the Industrial Revolution of the early 1800s led to the formation and growth of factories and railways in the United States. During this time, water power was replaced by steam power. The Civil War then accelerated the process of industrialization even more. But the war was not the only factor that caused the almost explosive growth of the late 1800s. By the late 19th century, American industries underwent a second phase of industrialization, factories converted to electricity as their main source of power.

Factors in the Rapid Growth of Industries

An abundance of raw materials A source of cheap labor Capital (money) to invest New technologies and sources of power Expanding markets A national transportation system (railroads)

Abundant Raw Materials In order for industries to make

things, factories have to start with raw materials. Raw materials include things such as wood, coal, iron, oil, water, cotton, etc. For example, wood is a raw material for making paper, furniture, etc.As the population of the United States pushed farther west, new sources for raw materials were discovered. Rich deposits of coal, oil, and iron ore were found to go along with the abundance of water and timber the United States already had.

Abundant Raw MaterialsNew technologies made these raw materials into useful products that fueled industrialization. Coal and iron ore were used to form steel. Oil was converted to kerosene and later to gasoline. Both the steel industry and the oil industry were vital to the further industrialization of America.In addition, huge deposits of copper from the Midwest and the West helped to make electricity the latest and most efficient form of power for industries.

Cheap LaborFactories also needed workers. The less money factories pay their workers, the greater the profit. Two sources provided cheap labor: the migration of farm workers to the cities and the immigration of unskilled laborers from Europe. Immigrants are foreigners who move into another country. Farm laborers who lost their jobs because of the hard times in the agricultural industry moved to the cities in search for work. Factory owners were happy to see them coming. Immigrants from Europe were also a constant source of cheap labor. Often poor with no skills, the immigrants flocked to the cities to work in the factories.

New Technologies and Sources of Power

Thomas Edison was an inventor during the late 1800s who had a tremendous impact on the industrialization of America. His inventions include the phonograph and a lightbulb that could be used safely indoors. But perhaps the greatest contribution to industry was the development of a way to generate and distribute electrical power.Edison raised the level of the invention process by creating a research laboratory at Menlo Park, New Jersey, where he gathered talented workers to help turn his ideas into reality. Menlo Park was a kind of “invention factory,” the first industrial research laboratory in the United States. During his life, Edison patented over 1,000 inventions.

Expanding MarketsAs the population of the United States grew, so did the demand for more goods. Transcontinental railroads that crossed the nation provided an efficient way to get goods from businesses to their new and distant customers.Americans even expanded their markets to include distant places far beyond their shores. American factories began selling to nations across the Pacific Ocean, including China and Japan. United States imperialism would eventually establish colonies in places like Samoa, the Philippines, Hawaii, and Puerto Rico. Imperialism is the desire of a nation to expand its influence into other countries.

National TransportationNo other single factor helped settle the West more than the railroads. In time, many independent railroads linked together into a transportation web that reached across the continent. Transcontinental railroads connected the east to the West. During the Gilded Age, railroads were the most commonly used form of transportation in America.

Urban GrowthDo you remember the disagreement between Alexander Hamilton and Thomas Jefferson in 1789? Jefferson wanted an agrarian society, which is built around farming. Hamilton wanted an urban society, which is based on industry.In the late 1800s, the nation finally made the shift from a mostly rural, agrarian society to an urban, manufacturing society as more and more people moved from farms to cities. This urban migration happened for several reasons.

Reasons for Urbanization New machines made farm work more productive and put

many farmhands out of work. Small farms could not compete with large commercial farms Farmers lost their land during economic hard times African-Americans wanted to escape the prejudice and

segregation of the South Immigrants looking for a better life looked to the cities as a

place of opportunity Railroads established a national transportation system

Urban ProblemsDuring the Gilded Age, cities grew at a tremendous rate. The rapid growth created problems such as overcrowding, crime, and disease. Middle class and rich people could live outside the city, but the poor had to live in the inner city in whatever housing they could find. Areas where lots of poor people lived were called slums.Many poor immigrants were forced to live in the slums because that’s all they could afford. Poor sanitation often led to the spread of disease. Many died as a result. Later reformers would target the terrible conditions in the cities and try to make things better for the poor. We’ll look at some of these reformers a little later.

ImmigrationImmigrants who came to America were from two major areas of the world: Europe (Ellis Island in New York) and Asia (Angel Island in San Francisco, California). Both groups found new opportunities in the mid 1800s, especially laying tracks for the railroad. The Asian immigrants came to California and worked on the Central Pacific. European immigrants, particularly the Irish, worked to lay track for the Union Pacific. Both groups met at Promontory Point, Utah, in 1869 when the first transcontinental railroad was completed.After the era of railroad construction, factories and new construction projects needed laborers. Europeans were somewhat welcomed, but Asians were not.

European ImmigrantsFrom around 1840 to 1880, there was a steady stream of immigrants coming to America from Europe. Most of these immigrants were from northern and western Europe, which included Germany and Scandinavia (Denmark, Sweden, and Finland). They were called “old immigrants.” Some had been farmers in Europe, and many settled in the Midwest to farm. “Old immigrants” were educated, learned to speak English, and adapted well to the American way of life.

European ImmigrantsThe “new immigrants,” those who came between 1880 and 1920, were different. These immigrants were from southern and eastern Europe: Italy, Russia, Poland, etc. Many were Catholic, poor, uneducated, and unskilled. New immigrants often faced discrimination from Americans, especially from the “old immigrants,” because they were so different.Since many of the immigrants were unskilled, they had to take low wage jobs in factories and on construction projects. New immigrants provided an almost endless supply of cheap labor to work for low wage jobs that sprang up during this time.

Asian ImmigrantsWhile the railroads were being built from the West coast, Asian laborers, particularly the Chinese, were more than welcomed. For the most part, Chinese men came to the United States without their families. They wanted to work here and then return to China.Soon, the Chinese were competing with Americans for other jobs, and they became not so welcome. In 1882, Congress passed the Chinese Exclusion Act, which stopped immigration from China for ten years. This act was renewed again and again for many years to keep Chinese out of the country.

Urban ReformsAs the cities continued to grow, so did the problems. Problems of poor sanitation, crime, and slums began to be addressed by the end of the 19th century.To deal with the sanitation issues, new sewers were installed and a system developed to get rid of the garbage. Water purification plants were built to filter and treat water so that the drinking water was clean and safe.

Urban ReformsTo combat crime, cities hired a professional police force although there never seemed to be enough policemen to go around. Laws were passed to improve housing and clean up for the slums. Sometimes the laws worked and sometimes they did not. But at least the city leaders made an effort.To help the poor, especially immigrants, social reformers set up settlement houses. These were community centers where the people lived. They provided education and social opportunities for the poor. One of these settlement houses was started by a young social reformer named Jane Addams. It was called Hull House and was located in Chicago, Illinois. Settlement houses were the beginnings of modern social work and a big part of the progressive movement, which we will get to shortly.

Alabama in the Industrial AgeIron and Coal

A new technology developed in 1855 called the Bessemer Process provided a more efficient way to make steel. The process required four essential ingredients: iron ore, coal, limestone, and cheap labor. A way to transport the finished product was also needed, and railroads worked just fine for that.The state of Alabama had all the “ingredients” for making steel. Most of the raw materials could be found in the north-central part of the state, around Birmingham. Birmingham became an industrial center, and the steel industry grew up around the iron, coal, and limestone deposits found there. The city grew, almost like magic. That’s why it is sometimes called the “Magic City.”

Alabama in the Industrial AgeTextiles

After Reconstruction, Northern investors decided to move some of the textile manufacturing closer to where the cotton was grown. Textile mills were built across the South, including in Alabama. These mills offered to work to many people who needed jobs but did not have any job skills. With no skills, they had to work cheaply. But for former sharecroppers and unemployed farmhands, a steady paycheck was at least something.

Alabama in the Industrial AgeLumber

Lumber production is one of the most important industries in Alabama. The state has a great deal of trees-second only to Georgia. As the Midwest was settled, the demand for lumber increased dramatically. Sawmills sprang up throughout Alabama to help meet the increased demand. In 1869, Alabama was 25th in lumber production. By 1925, Alabama was 5th on the list of United States lumber producers.

Alabama in the Industrial AgeShipping

Just as steel shaped the city of Birmingham, shipping and shipbuilding established the city of Mobile. Mobile became the most important port in Alabama. The railroads also found their way to this coastal city so that goods arriving at the port could be shipped all over the Southeast. Trade goods were also transported by train to Mobile to be shipped all over the world.

Alabama in the Industrial AgeConvict Leasing

Displaced farmers and farmhands were one source for cheap labor in Alabama, but another source was convict leasing. A convict is someone who has been convicted of a crime and sent to prison. In the Gilded Age, many former slaves ended up in prison after been convicted of minor crimes. You may remember that the Black Codes said that African Americans could be arrested and fined for not having a job. When they could not pay the fine, they were sent to prison.

Convict LeasingIt costs money to feed, clothe, and house prisoners, so someone came up the idea of “leasing” convicts to industries around the prisons. The state got the money, and the prisoners worked for free. Many convicts ended up in the coal mines where they died. In 1898, convict leasing accounted for over 70% of the money in the Alabama state budget. In 1925, convict leasing in Alabama was finally outlawed because it was too much like slavery. Other states used convict leasing as well, but the state of Alabama was the last to outlaw it.

The Gilded AgeBig Business

A number of businesses were in a position to grow rapidly during the Gilded Age. Some grew by mergers, or by combining with other companies. Others grew by forcing their competition out of business. A large business can sometimes afford to lower prices to the point that small businesses cannot compete. The smaller ones go out of business or sell out to the large corporations. When one company controls most of the market without competition from other companies, it’s called a monopoly. Many businesses during the last part of the 19th century were able to grow into huge monopolies. Three of the largest industries to form monopolies were railroads, steel, and petroleum.

RailroadsAt first, railroads grew through mergers. Owners put short lines together into longer lines. Railroad tycoons such as Cornelius Vanderbilt built huge railroad empires by merging smaller railroads into a larger one. Transcontinental lines linked eastern businesses with western markets and raw materials.In time, a handful of men controlled most of the railroad lines in America. Because there was so much money involved, railroad leaders got together and agreed to avoid competition. They set rates and offered rebates to their best and largest customers.

RailroadsBig businesses benefited from the policies set by big railroad monopolies, but everyone else, including the farmers, were hurt by it. Remember that part of the agrarian rebellion (and the Populist Movement) wanted the government to control the railroads. Eventually, the government stepped in and made many of the harmful practices used by the railroads illegal.Not all the things railroad owners agreed on were bad. In the beginning, there was no standard for how far apart the rails should be. Having no standard often meant that trains from one line could not run on another line. Railroad companies finally agreed on a standard gauge (a distance between the rails) for all railways.

Time ZonesAnother problem created by a national railway system was time. Local towns decided what time it was based on the sun, so the “official” time changed from city to city. When running a train across the country, you can see why the time issue was a huge problem.Railroad owners worked together to get the nation to agree on time zones across the United States so that train schedules would be the same in all parts of the country. These time zones as we now know them were established in 1883.

World Time Zones

SteelOne of the new industries that grew out of the industrial age was steel. People had known about steel for a long time, but making iron into steel was a slow and expensive process. Iron is extremely hard, but it is also brittle. Steel is more flexible and a better building material than iron.It’s mostly the carbon in iron that makes it so brittle. To create steel, most of the carbon needs to be removed. In the mid 1800s, two men on two different continents came up with the process of purifying iron to make steel. William Kelly of Kentucky and John Bessemer of England both discovered that if air is forced through the molten iron, the impurities would be burned out. Since Bessemer was much more well-known than Kelly, the Bessemer Process was born. With this process, steel could be made in much less time and at a much lower cost.

SteelIt took a young immigrant from Scotland, Andrew Carnegie, to turn steelmaking into an industrial empire. Carnegie started as a factory worker but soon moved up to a good job in the railroad industry. He then decided to go into business for himself. He started a company to build iron bridges. Not satisfied with iron as a building material, Carnegie looked for something better. On a visit to Scotland, Carnegie heard about the Bessemer Process for turning iron into steel. On returning to the United States, Carnegie started his own steel mill near Pittsburgh, Pennsylvania.With his source of cheap steel, Carnegie changed the entire construction industry. Industries now wanted Carnegie’s steel rather than iron. Soon there were steel railroad tracks, steel bridges, and even ships with steel hulls. As land in cities became more valuable, builders used steel frames in buildings to make them taller. These new buildings were so tall that they were called “skyscrapers.”

Carnegie’s Millions

Petroleum/OilAround 1855, a chemist discovered that kerosene could be made from the black liquid that Native Americans and early settlers called “rock oil” (now commonly called crude oil or petroleum). Kerosene was a cheap, clean replacement for the whale-oil lamps commonly used at that time. Soon after the discovery of kerosene, oil refineries were built in the United States.Already a successful businessman, John D. Rockefeller became interested in the new petroleum industry. After studying the industry, Rockefeller decided that drilling for oil was too risky. He decided that refining (turning oil into kerosene) made the most sense. In 1870, he and other investors formed Standard Oil Company in Cleveland, Ohio. There were many oil refineries in the Cleveland area, and Rockefeller decided to own them all. His favorite tactic was to drive his competition out of business by reducing his prices.

John D. RockefellerRockefeller wanted his corporation to own refineries in states other than Ohio, but there were laws that kept a corporation from doing business in more than one state. To get around the law, Rockefeller used a business organization called the trust. A trust was a group of men who controlled more than one corporation. Using this idea of a trust, Rockefeller turned his Standard Oil Company into one of the largest monopolies in American business history. By the turn of the century, Rockefeller controlled most of the petroleum in the U.S. He is known as the wealthiest man to have ever lived.By the early 1900s, Henry Ford began to make cars popular and affordable. Petroleum refiners discovered that they could take what was left from making kerosene and make it into gasoline for automobiles. Profits from oil refineries grew even larger.

Robber BaronsMen like Rockefeller and Carnegie built huge business empires and made many millions (or even billions) of dollars in profits. Workers in these industries and others accused these industrial giants of being robber barons because they made their millions by paying low wages to their workers to increase profits. Others called these men “Captains of Industry” because they provided jobs for thousands of people and lowered prices on their products so that all Americans could benefit. Both men gave large contributions to charity, especially Andrew Carnegie. Whether robber barons or Captains of Industry, it all depends on who you ask.

Ideologies of Big Business

Strong men with equally strong ideas and beliefs built the industries of the Gilded Age. These ideologies (beliefs or philosophies) were applied to business. Some of the more important ideas were Social Darwinism, the Gospel of Wealth, and the “rags to riches” model of success.

Social Darwinism

Do you remember Charles Darwin’s theory of “survival of the fittest” from your science classes? Darwin’s observations of competition in nature led him to believe that only the strongest plants and animals survive. The weaker ones die.

Social DarwinismSocial Darwinism was a philosophy that “survival of the fittest” also applied to society and business. In business, the idea that weaker businesses would fail and stronger ones would survive and thrive. According to this philosophy, such an outcome was simply an act of nature. During the Gilded Age, industry leaders such as Carnegie and Rockefeller strongly believed in Social Darwinism. Unfortunately, without healthy competition, the big business monopolies could charge whatever prices they wanted, and American consumers suffered.

Gospel of WealthAlthough Andrew Carnegie believed in the philosophy of Social Darwinism and laissez-faire, he also believed that the wealthy had a responsibility to give back to society. In an essay, written by Carnegie in 1887 title the Gospel of Wealth, he described his views. His ideas of philanthropy, giving away money to better society, became known as the Gospel of Wealth.

Gospel of WealthCarnegie believed that the wealthy should help others and not just leave it to their heirs who he believed would probably waste it. He also didn’t think much of public charities because they could waste the money as well. Carnegie believed that the wealthy should use their money while they are still alive. During his later life, he gave millions for the public good, mostly to fund public libraries and schools.

Rags to RichesOne of the ideas that developed during the industrial age was that anyone, even the poor, could succeed and become wealthy. Horatio Alger wrote a series of very popular “rags to riches” novels in which a poor person worked hard and became successful.

Labor UnionsAs business grew into huge monopolies, the voices of the workers often went unheard. To get the attention of big businesses, workers began to organize into labor unions. A union with many members could make itself heard through collective bargaining. In collective bargaining, union representatives spoke for all members of the union. If management still did not listen, workers could agree to strike, or refuse to work.

Knights of LaborThe Knights of Labor was first formed in 1869, and it was the first national industrial union. The union supported radical ideas: they wanted an eight hour workday, equal pay for women, worker-owned factories, and an end to child labor. Membership was open to all workers including blacks and women.The knights did not use strikes. Instead they used arbitration. In arbitration, labor disputes are decided by a neutral third party. After winning a railroad strike in the early 1880s, membership in the union soared.

The Knights of LaborIn 1886, a protest in Haymarket Square concerning an eight hour workday turned disastrous when someone threw a bomb into a group of policemen. The event was called the Haymarket Riot. Several anarchist (people who did not want any government) were arrested for the crime, but the Knights were blamed. The Knights of Labor lost support after this event.

The American Federation of LaborThe American Federation of Labor, or AFL, was started in 1886. It was a collection of trade unions who wanted higher wages, shorter hours, and benefits for disabled workers. Since the union only accepted skilled workers, very few blacks or women qualified to join.With the decline of the Knights of Labor, the AFL continued to grow until it became the longest-lasting and most influential union in the country.

American Railway UnionThe American Railway Union, a union for railroad workers, went on strike against the Pullman Palace Car Company near Chicago in 1894. This famous strike was called the Pullman Strike. Within days, 125,000 workers were off the job, and the strike interfered with railroad transportation. President Cleveland used federal troops and an injunction from the courts to break the strike. (An injunction is a court order issued by a federal judge that demands an action be stopped.) http://www.youtube.com/watch?v=GZkq7d4lyrwhttp://www.youtube.com/watch?v=GZkq7d4lyrw

Politics of the Gilded AgeOne of the issues dividing the Republican Party in 1880 was the practice of patronage, giving government jobs to political supporters. Some Republicans wanted reform in this practice. Other Republicans, called Stalwarts, wanted to keep patronage and give out as many public jobs as they could. Yet another group, called Half-Breeds, supported patronage but wanted to be a little less obvious with the political favors.An unstable Stalwart lawyer brought the debate over patronage to the public’s attention by assassinating the newly elected President, James Garfield, who was considered a Half-Breed. Garfield had only been President for a few months. Now Chester A. Arthur was President, and the public was angry over patronage.

What did the assassination of President Garfield have to do with government jobs?

Charles Guiteau, the man who killed the President was angry because he had wanted a government job that he was not given. The public was angry because the President was killed over patronage, and they wanted the government to do something about it.

The Pendleton ActIn 1883, Congress passed the Pendleton Act, which classified certain government jobs as available only by passing a competitive exam. The new law also set up a bipartisan (contained members from both parties) Civil Service Commission to oversee the process. At first, about 10% of government jobs required the exam, but the President could add jobs as he saw fit. The law also made it illegal to force officeholders to donate money to political campaigns.

Railroad and Business RegulationsAs railroads became a big business, they gave “favors” and good rates to other big businesses and were free to charge higher rates to everyone else. Angry citizens who were unable to get the federal government to respond to railroad abuses turned to state government with their complaints. The state of Illinois passed laws to restrict railroads, but in 1886, the Supreme Court ruled that no state could pass laws regulating a railroad that crossed state lines. Only Congress could regulate interstate trade.

Railroad and Business RegulationsAlso in 1886, the Supreme Court ruled in another case that the railroads as a corporation were protected under the 14th Amendment. Yes, that’s the same 14th Amendment that was designed to protect blacks from discrimination. According to the court, corporations are “people” and are protected under the 14th Amendment. The states were blocked from enforcing restrictions on the railroads.

Railroads and Business Regulations

Congress eventually began to take notice of railroad abuses. In 1887, they passed the Interstate Commerce Act. The law instructed railroads to charge “reasonable and just” rates. It also established the Interstate Commerce Commission to oversee that the rates were, indeed, reasonable and just.

Railroad and Business RegulationsThe commission had little success in regulating railroads, so in 1890 Congress passed the Sherman Anti-trust Act. This law made trusts (business monopolies) that limited trade or commerce among several states illegal. But because the wording was vague, railroads and other big businesses were able to use the courts to avoid obeying the law. Later laws would prove to much more effective, but that’s another story.

The Money DebateBetween the high cost of railroad shipping and the crushing weight of debt, farmers found themselves between a rock and a hard place, so to speak. The Populist Party was formed to address the farmer’s issues when neither the Democrats nor the Republicans were willing to listen.Remember that one of the key issues for the Populist Party was increasing the money supply. Farmers and western miners wanted the government to buy silver from western mines and mint silver coins. Republicans were against it. They wanted to print paper money backed by gold.

The Money DebateThe issue came to the forefront of Gilded Age politics in the 1896 presidential election. The Republicans nominated William McKinley who ran on a platform committed to the gold standard (paper money backed by gold). The Democratic Party nominated a young Nebraska representative, William Jennings Bryan, who made a passionate speech in favor of the free (unlimited) coinage of silver and the farmers’ cause.

The Money Debate“You cannot press down on the brow of labor this crown of

thorns; You shall not crucify mankind on a cross of gold.”

-William Jennings Bryanfrom his Democratic Convention

Speech,1896

Bryan’s speech became known as the “Cross of Gold” speech, and it was a rousing success at the convention. Bryan went on to make over 600 speeches during the campaign. But his efforts did not bring him to victory at the ballot box. McKinley and the Republicans won the election.

Alabama Farmers and the Populist Party

Many people in Alabama supported the Populist Party because it addressed the needs of farmers, both black and white. But the Democratic Party, controlled by land-owning whites, was a strong force in Alabama politics during the Gilded Age.When the Populist Party appealed directly to African American voters, many whites were outraged. Prejudices against blacks caused support for the Democratic Party to grow even stronger. To keep blacks from voting for Populist candidates, the Democrats did everything they could to take away African American voting rights.

Alabama Farmers and the Populist Party

In 1901, Democrats were able to rewrite the Alabama Constitution with some new rules to disenfranchise black and poor white voters. To disenfranchise simply means to take away the right to vote. Political corruption reached new lows during this time. In order to ensure white supremacy, ballots from “black” districts were often not counted, and unwanted election results were simply changed. These were the dark days in Alabama politics.

What kinds of things were in the 1901 Alabama Constitution to keep blacks and poor whites from voting?

Poll taxes

Literacy tests

The Communication Revolution Pony Express-(1860)-express riders could deliver mail in days instead

of months. Telegraph-a device for sending electrical pulses over wire, developed

by Samuel Morse. Transatlantic Cable-an underwater cable successfully laid across the

English Channel, developed by Cyrus Field. This cable allowed messages to be transmitted from the North America to Europe. The cable was about 2,600 miles long.

Telephone-created by Alexander Graham Bell. AT & T (American Telephone and Telegraph Company) grew out of the original parent company started by Bell, which was called the Bell Telephone Company.

Radio-Italian inventor Marconi developed a way to send messages through radio waves. On November 2, 1920, KDKA, a radio station in Pittsburgh, Pennsylvania became the first commercial radio station in the United States to broadcast programming.