CHANGING

AMERICAN

SOCIETY1865-1914

Thematic History of the Late 19th Century

INDUSTRIALISMProducing goods by machines rather than by

hand

IMMIGRATIONPeople moving into a country from another

country

URBANIZATIONThe growth of cities

INDUSTRIALISMProducing goods by machines rather than by

hand

I. AMERICA’S RESOURCES

A.Natural Resources:

B.Human Resources:

gold, silver, water, timber, coal, iron ore

work ethic, increasing population, entrepreneurship

C.Technology

D.TransportationScience applied to business

Roads, railroads, steamboats, canals

You may want to take some notes from this video clip.

II. ORGANIZING AMERICA’S INDUSTRY

A.Types of Businesses

1. Sole proprietorship: owned by one person

Small scale Individual control Owner bears

responsibility and liabilityFor example….

2. Partnership: owned by two or more people

Shared responsibility Increased resources Potential for

disagreements

For example….

3. Corporation: owned by shareholders who purchase stock in the company

Limited losses, limited gains

Shareholders have limited liability

Size, if too large, makes running a corporation difficult

For example….

How do

shareholders

profit from

ownership in a

corporation?

DIVIDENDA portion of earnings paid to a stock holder

Ralph owns 100 shares of Ford. If the board of directors

authorizes a dividend payment of $.30 per share, how much

will Ralph receive?

CAPITAL GAIN

Sale of stock at a higher price than

purchased

Ralph bought his shares at $10 per share; he sells them at $12 per share. How much does he

gain?

B. Financing industry

1. Capital: money used to make more money; investment

2. Bank loans

3. Bonds: loans from the public, repaid with interest

Stock – investing by owningBond – investing by loaning

C.Growing industry1. Trust: a combination of several

companies into a corporation; merger

2. Monopoly: exclusive control of the manufacture and distribution of a product

VERTICAL MONOPOLY

Control of entire manufacturing process,

from start to finish

HORIZONTAL MONOPOLY

Control of a key step in the manufacturing

process

A Gallery of American IndustrialistsCornelius Vanderbilt

1794-1877- shipping and transportation -

Philip Armour1832-1901

- grain and meatpacking -

Andrew Carnegie1835-1919- steel -

J. Pierpont Morgan1837-1913- finance -

John D. Rockefeller1839-1937

- oil -Charles Pillsbury

1842-1899- flour and milling -

III.AMERICA’S RESPONSE TO INDUSTRIALISM

A.Changing American life1. Increased trade, prosperity

2. Changed standard of living+ leisure time, professional sports

modernization- pollution, crime, overcrowding

3. Changing social structure Women working outside the home Child labor Greater distinction between the “haves”

and “have-nots”

The “Haves”

Biltmore Estate

The “Have-nots”

Lyndhurst

B. An Emphasis on Capitalism1. Capitalism: economic system

based on free enterprise, private property and individual investment

a. Laws of supply and demandb. Laissez-faire: government has a

“hands-off” policy concerning business

2. Social Darwinism: the theory of evolution (biological) applied to society (cultural-economic); the stronger, more successful businesses will survive—the weaker will not

C.Government Regulation of Business

1. Purpose: to protect the consumer and to encourage competition

2. Examples:

a. Interstate Commerce Act (1887) regulated railroad rates

b. Sherman Anti-Trust Act (1890) prohibited large corporations from restricting trade or commerce

D.Rise of Labor Unions

1. Purpose: to protect the worker from abuses by the management and to negotiate for better benefits

Salary, hours, working conditions, safety

2. Examples:

a. Knights of Labor (founded by Uriah Stevens): the first union; tried to organize all workers into a brotherhood

b. American Federation of Labor (Samuel Gompers) joined workers of local craft unions with people of the same skill; local unions will associate with state and national unions

OVTA

3. Actions of unions

a. Collective bargaining: the right of the union to represent workers in negotiations

b. Strike: refusal to work in order to have demand met

c. Picket: demonstration to publicize disagreements between employer and employee

d. Injunction: a court order to return to work

E. Increase in Wealth

1. Materialism: placing excessive emphasis on wealth or material possessions

2. Philanthropy: charitable giving by the wealthy

Erie Canal: http://www.lakelandschools.org/lt/NewYorkVM/canalmap.gif

Cornelius Vanderbilt: http://content.answers.com/main/content/wp/en/thumb/3/35/225px-Vanderbilt.jpg

Philip Armor: http://content.answers.com/main/content/wp/en/thumb/5/50/180px-Philip_D_Armour_in_the_1880s.jpg

J. Pierpont Morgan: http://teachpol.tcnj.edu/amer_pol_hist/fi/00000107.jpg

Andrew Carnegie: http://www.creativeenergy.org/images/andrew_carnegie.jpg

John Rockefeller: http://shots.oxo.li/hot/OXO-World/John_D_Rockefeller.jpg

Charles Pillsbury: http://www.kipnotes.com/pillsbury.jpg

“After the feast”: http://www.pbs.org/wnet/historyofus/teachers/pdfs/segment9-4.pdf

Founders of the Knights of Labor: http://6hourday.org/images/FoundersKoL1886.jpg

Knights of Labor symbol: http://content.answers.com/main/content/wp/en/a/a7/KOLlarge.jpeg

Uriah Stevens: http://www.freemasonry.bcy.ca/biography/images/stevens_u.jpg

Samuel Gompers: http://content.answers.com/main/content/img/BritannicaConcise/images/24735.jpg

IBEW: http://www.ibew683.org/ibew683.jpg

Teamsters: http://www.focusink.com/images/teamsters_official_logo.gif

PSEA: http://cattyea.org/images/psea2.png

Strike: http://weblogs.newsday.com/entertainment/tv/blog/strike.jpg

American Workers’ Union Strike: http://www3.niu.edu/~td0raf1/radicalunionism/548_214_Hooverville_street_protest_zm.jpg

Writers’ Strike: http://flowtv.org/wp-content/uploads/2008/05/wga9.jpg

Sit down strike 1937: http://info.detnews.com/dn/history/labor/images/flint1.gif

Lyndhurst: http://www.lyndhurst.org/images/LyndhurstFront.jpg

Biltmore: http://www.biltmore.com/images/content/biltmore_img_media.jpg