The Gilded Age

The Second Industrial Revolution• From 1865 and 1914, the US underwent one of the

most rapid and profound economic growths in human history.

• Our greatest asset was our size and natural resources- few countries have ever had more (and those that do are half frozen….)

• Also had a growing population (natural and immigrant), which created a labor supply and market for finished goods.

• Federal government actively promoted economic growth. High tariffs, tax and land incentives for development, and Indian removal to clear new areas for settlement

The Industrial Economy• Not unique to US, important part of European

history as well • “Age of Steel”, it the most important product:

Henry Bessemer invented a better refining process. Great Lakes region important b/c it has good transportation, and is near(er) ore sources. Cities like Detroit, Pittsburgh, and Cleveland have booms

• Chemicals and electricity also taking off. Corporate banks allow greater capital for investment. Significant increases in consumer goods

• By 1900 US is the largest, most powerful econ in the world, with 75% of our citizens working jobs OTHER than agriculture

Railroads• Gov’t subsidized building of 1st Transcontinental

(Union Pacific) realizing it would be unprofitable until more people settled

• Other lines: • Northern Pacific: Minneapolis to Seattle• Atchison, Topeka, Santa Fe line• Southern Pacific: New Orleans to Los Angeles

• Railroad vital, linked the country, creating the largest integrated market in the world• Led to the creation of Time Zones

• Supported growth of cities (ship in food) and “national brands” like Quaker oats and Sears Roebuck

• Created the “Robber Barons”

Spirit of Innovation• 1790-1860: 36,000 patents. • 1860-1900: 1.5 million patents

• Thomas Edison: “the Wizard of Menlo Park”. Most famous “inventor” of the era. Electric light (through the light bulb), and machines to generate electricity- which is more reliable than steam. Also invented phonograph, mimeograph (copies), Dictaphone, and the 1st projector for moving pictures. Cites became “electrified” overnight- revolutionized urban living

• Nicola Tesla: electric motor. George Westinghouse: transmission of electricity.

Competition and Consolidation• Boom econ of Civil War “burst” in 1873, with regular

downturns until 1897 (until the 30s, this time period was known as the “Great Depression”) If you wanted to be successful- you had to get cutthroat – no room for the “virtuous” market of earlier times. Cut expenses, undersell the competition, do what it takes.

• RR first industry to work together to increase their own profits (at expense of consumer), and other major industries: oil, steel, coal, and textiles weren’t far behind.

• Even as industry is growing the number of corporations is shrinking as the strong gobble up the weak 4000 firms disappear between 1897 and 1904

• Age of the Giant- like US Steel, the 1st Billion $ company

Pools and Trusts• Obviously eliminating competition allows

corporations to make more $$. The ultimate goal for many; monopoly.

• Pools: divide the market- giving a share to specific “competing” corporations- which allows them to charge higher prices

• Trusts: “Rival” companies are actually owned by the same person/corporation- so it “looks” like there is competition where there is none

Cornelius Vanderbilt

• 1st of the “Robber Barons”. Developed a near monopoly of RR lines in the east- and amasses over $100 million in his lifetime.

• Used “Pools” (defensive alliances with competition to protect each others interests, divide the market). Gave rebates and kickbacks to large corporations, and squeezed others out of business- by any means necessary.

• “Law! What care I about Law! I have something better- Power”.

Jay Gould

• Controlled Western RR. • Had the ability to control agricultural prices

by controlling the rates they paid for shipment.

• “Stock Watering” inflated the value of his company by issuing more and more shares to force others out of business.

• Involved in gov’t corruption (bribes, kickbacks etc..)

The Rise of Andrew Carnegie• Andrew Carnegie: A classic “rags to riches” story.

Immigrated as a teen with poor parents, began work in a textile mill for $1.20 a week, and rose from there –establishing a

steel mill in 1873. His father taught him that life is a constant struggle, and if you don’t swim (with the sharks) you are going to sink…. Ran companies with a dictatorial hand, factories operated 24 hours a day (2 twelve hour shifts) 364 days a year (4th of July only holiday)

• Carnegie didn’t like trusts and pools, so he found a different way to organize….

Vertical Integration• Carnegie set up his company so that it controlled,

or held and interest in all the phases of production: raw materials, transportation, manufacturing and distribution. Carnegie bought iron fields, coal mines, limestone quarries, and coke factories to make sure he had materials he needed

• Eventually sold his company (Carnegie Steel) to JP Morgan (US Steel) for $400 million, and spent the rest of his life giving his $$ away to build libraries, schools etc…

Gospel of Wealth• Another justification of wealth of

industrialists- exemplified by Andrew Carnegie and JD Rockefeller.

• Their $$ was a reward from God for their work and skills- but should be used primarily for the betterment of mankind.(rather than conspicuous consumption) Did not advocate “handouts” as that would stifle initiative, but donating to allow underclasses to help themselves. Donations for libraries, museums, universities, scholarships for deserving, halls for music/lecture etc….

JD Rockefeller• From Cleveland OH Interesting combination of religion and greed (God helps those who help themselves) Gets into the oil industry after the war- which was just beginning, and actually centered in Western PA at the time (shale oil – Fracking!)• Use Horizontal Integration: Buy out the competition.

Rockefeller would sell at a loss to drive others out of business.

• The people who ran these companies were controversial- either “Captains of Industry” (if you’re a fan) Or “Robber Barons” (If you are not). They were definitely looking out for #1, but their companies provided millions of jobs, and thousands of new consumer products. Also represent the idea of the American Dream. Not all were from privileged backgrounds, “anyone” could end up a millionaire.

Trusts • Rockefeller wants a monopoly on oil- and that’s

illegal, so it’s time to get creative….• Trust: stockholders in various oil companies sell

their shares, and authority to board of directors from Rockefeller’s Standard Oil Co. Though they are still “owners”, Rockefeller’s group has the power, and he ends up controlling 95% of the oil industry in the US.

• Died in 1897 with a company worth $900 million, BEFORE the auto industry…. Like Carnegie, Rockefeller gave away over $500 million- part of the paradox of the Robber Barons.

JP Morgan• The only one of the “Big 3” born rich- and

his specialty is investment banking and deals (rather than an actual product or single company)• Used the econ crisis of 1893 to buy weak companies,

sell of pieces, and make them profitable (hostile takeover)

• Used Interlocking Directorates to get around burgeoning anti-trust legislation- holding companies and same people on boards of directors of different companies.

• Also liked consolidating industries, he bought steel companies until he was big enough to rival Carnegie, made him an offer he couldn’t refuse, and made US Steel the first billion dollar company in the world (and more than the wealth of the entire nation in 1800)

Worker’s Freedom in an Industrial Age

• Some people gained unimaginable wealth, the number of people in the middle class (managers etc…. “white collar” jobs), and skilled workers made good livings. Economic independence now rested on skill (in business or craft) rather than ownership of land or tools

• But the majority of workers were Unskilled laborers. Their work is dirty and tedious, with no accident protection. Everyone in family works, and still up to ¾ of wages earned needed for food. No job security, can be fired at

any time, for any reason- and bosses justified actions with Social Darwinism, seeing the workers as just a cog in the wheel of industrialization.

Working Women

• Cities gave women greater career opportunities- there were over 5 million female workers in 1900. Middle and upper class women still did not work after marriage (not socially acceptable), but “might” before married in top of 3 tiers of “women’s work”• 1. Service Jobs. Teachers/Nurses, most “respected”

jobs. Clerk/secretary, shop girl, seamstress, telephone operator also respectable- generally open only to “American” girls, not immigrants

• 2. Factory work- had variations, could be/become respectable and allow social mobility, or could be sweatshop horrible

• 3. Domestic Servant. Represented 40% of working women. Again, there were respectable positions (Governess, Cook, etc…) but generally the bottom class. Most likely to be foreign born or African American.

Sunshine and Shadow: Increasing Wealth and Poverty• Traditionally, wealth came from, and was tied up

in land- people who were “rich” didn’t always have bunches of cash. But industry requires Capital- $$ to start, and it could be risky, it could disappear. (which land didn’t) As Industry became the driving force of the econ, the $$ based society it created changed on many levels

• Richest 1% of Americans Control 50% of the wealth in the nation(today they still have 40%) and more property than the other 99% put together. if you take the “poorest” 40% of the population, they controlled 1.2% of the wealth

Nouveau Riche• Middle classes are moving to the suburbs, and wealthy

to the enclaves (Nob Hill, Newport RI, “millionaire’s row”)• Robber Barons were the the apex of a new “leisure

class” that began to emerge in America after the Civil War, people who had been born rich, and would never NEED to work.

• Older American aristocracy deeply resentful b/c they felt econ power gained by this group was not being used for good (public service etc) Many, like the Roosevelt's, became anti-trust crusaders

• Deepening class divides, but overall, the stand of living in the US is rising, and in large part b/c of the econ created by Barons- despite monopolies, consumer goods getting cheaper, and they employed millions

Conspicuous Consumption• The idea that you want people

to SEE your wealth, to impress. 1st defined by Thorstein Veblen (great name) in The Theory of the Leisure Class. The trappings of wealth became visible, and idea was anyone can reach that level with work.

• The idea that it could happen to “anyone” kept many blind to the gap between rich and poor.

• Jacob Riis: How the Other Half Lives: shocking account of working conditions among Urban Poor

Meantime – out West……

“Up to our own day American History has been in a large degree a history of the colonization of the Great West. The existence of an area of free land, its continuous recession, and the advance of American settlement westward, explain American development

• Frederick Jackson Turner: the Significance of the Frontier in American History

The Transformation of the West • Early settlers had been trappers or missionaries. Before

RR travel was long and dangerous, if your family went, you were going for good. People began moving beyond Mississippi 1830-1850, with the biggest bump being the California gold rush 1849

• Has always been America’s “safety valve” (Frederick Jackson Turner)– and this is our last big burst of westward movement

• 1860 Divided into “territories” and inhabited primarily by Native Americans (mostly nomadic plains Indians)- by 1890 it will be states with only 2 territories left

• 3 waves of “frontier” – major economic activities. • Mining• Cattle• Farming

Pony Express• April 1860- October 1861:

Brief, but legendary. To speed communications, riders on horseback carried mail relay style with 157 stations 10 miles apart (how far a horse can go at flat gallop) Rider changes horses at each station- and mail can cross country (one way) in 10 days

• Put out of business by telegraph (transcontinental line completed Oct 1861)

A Diverse Region• Large variations: Great Plains WI, IL, MN, IO, and parts

of NB, KA, and DK are great for farming, but the further west you go (high plains: western KA, NB, MT, WY, CO, NM) the drier things get.

• Then you get the mountains, and the true deserts of AZ, NV, UT etc…

• This process of “settling” the Interior was not unique to US, Happened in S America, South Africa and Australia as well, complete with natives To fight…..

Farming on the Middle Border

• Homestead Act of 1862 gave 160 acres for nominal fee ($10-30) to anyone who would live on land and “improve” for 5 years. Hugely popular after war, as diverse groups move west: easterners, “exodusters”, immigrants, southerners – about 500,000 will go.

• Many (as much as 2/3 in some areas) lost their “bet” with gov’t

and left land.• Available until after wwi

New Farming Techniques

• One reason so many people lost land is that climate too dry for traditional farming (where rainfall will be main watersource)

• Dig wells, use windmills to pump water for irrigation. Steel plows cut deeper into sod to get down to fertile soil. Barbed wire allowed cheap fencing of large scale territory

• Morrill Act of 1862 gave federal land for est. of colleges to specialize in agricultural research and technology

Hard Wheat• Growing season too short for

spring wheat- so they bring in winter wheat from Russia (plant in fall, lies dormant, then flowers in spring) Harder to grind: John Pillsbury of Minnesota invents a new milling process

• Use RR to transport crop back east, and to get manufactured goods (harder to be self sufficient on the plains)

• Creating an integrated economy

Desert Farming• Extensive irrigation

made new farmland available- even in desert areas. Mormons early success story in Utah.

• Turns out the Ogallala Aquifer is below a large area, it’s deep, but once farmers get down there it provides need irrigation

Bonanza Farms• Believe it or not, 160 acres wasn’t really a profitable amount

of land out west, you need more. 1873 Timber Culture Act allows settlers an additional 160 acres if they plant trees on at least 40 acres. Desert Land Act of 1877 you could buy up to 640 acres for $1.25 and acre if you created irrigation

• Bonanza Farms – large scale agriculture . In order to farm successfully on a large scale (without free labor) you need machinery.

• Had to borrow $$ for equipment (plows, threshers, reapers etc…) and less than stellar harvests (or really good harvests which made prices go down) could make it impossible to get out of debt.

• Banks (loans) and RR (trans costs) the “bad guys” farmers blamed when times got hard

Cowboys• Another legendary feature

of the west- cattle drives made them vital. Young (generally unmarried), from diverse backgrounds (Confederates, Blacks, Native Americans, Mexicans). Cowboys were part of the “safety valve” of the West, head off in the sunset and see what happens

• Earliest were Mexican, and it was “Vaqueros” who developed things like 10 gallon hats and chaps, and lasso etc

Ranches• Cattle owner needs a

base of operations- the Ranch: House, quarters for cowboys/ranch hands, grazing land for cattle.

• Grazing began as open, but as more people came (and barbed wire invented) specific areas marked and claimed.

Mining• Gold/Silver discovered in Colorado and Nevada beginning

late 1850s- leading to mining booms (Virginia City, Carson City, Comstock lode), which drew people with opportunity to “get rich quick”, and provided the first western economy

• Copper (telegraph and telephone wires), Lead, and Zinc eventually became more profitable than gold or silver

• Significance of Mining• Attracted population west• Helped finance the Civil War• Facilitated building of RR• Intensified conflict with Native Americans• Introduced Silver issue into politics

Conflict on the Mormon Frontier• Have settled the Great Salt Lake Valley in 1840s – meant to be

the foundation of an empire they called “Deseret”. And they want to live their way….which is not the “American” way (polygamy etc)

• Brigham Young was territorial Governor of Utah. In 1857 the ever classy James Buchanan fired him (saying he was obstructive justice and refusing to obey federal law). Young refused to step down, and Pres had to send federal troops to govern territory

• Mormons would occasionally attack wagon trains (don’t want non Mormans moving in). At Mountain Meadows Massacre – killed over 100, spared only the children under 5.

• Conflict and cultural differences kept Utah from becoming a state until 1896 – after they had agreed to make polygamy illegal.

The Subjugation of the Plains Indians

• All this settlement is not good news for the Indians. (but then what is?) Began in 1850s, and from 1868-1890 a state of near constant warfare existed between Native Americans and Whites.

• Primarily Guerrilla style: Indians would raid settlements, vandalize RR. Army would raid native villages, or deliberately kill buffalo

• General Philip Sheridan in charge. Major Native disadvantage is that tribes didn’t work together, and Army was in to win, at any cost

• Bureau of Indian Affairs: divided tribes and allocated them either to Indian Territory (OK) or the Dakotas (guaranteed to the Sioux in the Treaty of ft Laramie 1868) Hot mess of corruption, deception and general ineptitude

Decimation of the Buffalo• Spanish horses and Firearms drastically altered

plains culture from 1600s- allowing them to move farther, faster, and base their survival on hunting buffalo

• As whites move into area “buffalo hunting” – for sport- became a fad. This leads to the decimation of the herds (whites kill 1000s at a time, and leave most behind, they are looking for “trophies”)

• There were an estimate 30 million buffalo in 1800, by 1900 they were an endangered species

Let Me Be a Free Man• Nez Pierce- Led by Chief Joseph, had attempted to avoid

conflict, remained on their reservation in Idaho- maintained positive trade etc…1877 Gov’t demands they give up their land, and they decide to fight, winning several skirmishes before main army sent in, at which point they decide to flee.

• 75 day, 1700 mi chase through west and Canada- finally caught. Broken apart as a tribe, sent to Kansas and Oklahoma

• Chief Joseph went to Washington to address the government, using the language of freedom and equal rights reinforced by Civil War and Reconstruction “Treat all men alike…give them the same law….let me be a free man, free to travel, free to stop, free to work, free to trade where I choose, … free to think and talk and act like myself.” Spent rest of his life trying to get the land and tribe back together.

Little Big Horn• Sioux war became most intense after gold discovered in

Dakotas in 1875. Warriors led by Sitting Bull and Crazy Horse attacked after their guarantees of land had been violated.

• Army sends General George Custer (known for recklessness and vanity) to “handle” June 1876, Custer and 250 troops find Sioux camp, where they are circled by 2500 Native Americans and killed (164 Indians die)

• Newspapers carry accounts of “Custer’s Last Stand” (making it sound heroic instead of stupid), which increased gov’t need to handle situation. Start chasing Sitting Bull- who heads north to Canada and claims asylum, but eventually forced to return and surrender. Ends up in Buffalo Bill’s Wild West Show

Apache• Carried on a 9 year guerrilla war from Rocky

Mountains, led by Cochise and Geronimo• Eventually chased through Arizona to Mexico,

where Geronimo was captured by Mexican Army and sold to US

• Sent to Oklahoma, where they became successful cattle ranchers

Remaking Indian Life• The very nature of Indian life (at least nomadic

Indians) and their notion “Freedom” did not work with the American way of life, or their definition of the same word. To be fair – many people thought they were “helping” the Indians by “civilizing” them – but one of the main aspects of policy was greed for land.

• 1871 Congress eliminated the system which treated tribes as dependant, but sovereign nations.

• Bureau of Indian Affairs established boarding schools which required Indian children to be removed from the “negative influences” of tribal identity.

Dawes Act 1887

• Gov’t plan to eradicate Native American culture• Provisions

• Dissolved tribes as legal entities• Divided reservations into 160 acre plots, each “family” (determined by gov’t) was required to “improve” land like white settlers, if they did, it was theirs (along with citizenship) in 25 years, if not improved, went back to gov’t.

• In 50 Years, Native Americans lost 86/138 million acres of land that had been guaranteed by the goverment

Oklahoma Land Boom• Had been given to Native Americans because it

seemed such poor farmland, but new techniques meant that it could be profitable, so gov’t (pressured by public and land speculators) decides whites should have it.

• President Benjamin Harrison announces the land will be “opened” for claims on April 22nd 1889. (Soldiers posted to prevent “sooners” from claiming early) at Noon on 22nd, whistle blows, and 50,000 people rush in and claim 2,000,000 acres within 6 hours

Indian Citizenship

• Dawes Act Accelerated destruction of native cultures – though many of them refused to participate. Courts rule (Elk vs. Wilkins 1884) that they are not citizens- therefore have no rights protected by the 14th or 15th Amendment

• Amerindians get citizenship 1924, (1919 if they fought in WWI) but Dawes Act remains official policy until 1934 Indian Reorganization Act (Indian New Deal)

The Ghost Dance and Wounded Knee• One problem reformers had with Natives

was that they weren’t Christian. So Gov’t pressured to outlaw native religious practices, like the Lakota “Ghost Dance” (which was supposed to get rid of evil, Lakota thought it might get rid of white people)

• Dec 29th 1890 Army came to a civilian encampment, and slaughtered 200(ish) old men, women and children (29 soldiers killed, most from friendly fire) Positive

reaction from whites, who saw it as stamping out a cult (20 soldiers got medal of honor )• Last major clash between whites and

Amerindians- Native population is now less than 250,000.

Settler Societies and Global Wests• Argentina, Australia, Canada and New Zealand are

known as “settler societies” b/c Europeans became the largest ethnic group, replacing indigenous people (as opposed to say India, where the British were always a tiny minority)

• Issues like America had with Native Americans common in settler societies- and to help ourselves feel better (after all, we have been kind of nasty to people lately) we were NOT the worst! Australia probably wins that prize with treatment of Aboriginals- they forcibly took native children to be raised by whites (some adopted, many in “orphanages”) and kept the policy til 1970s! (PM apologized on “Sorry Day” in 2008)

Politics in a Gilded Age“Gilded” means covered in gold – but implies falseness- what lies underneath is not quality. That was certainly true of the political world of the 1800s – corporate dominance/corruption and oppression of workers was not our finest hour, and we capped it off with not our finest leaders too…..

The Corruption of Politics• Americans thought of themselves as living in a

democracy (as opposed to many European countries where many citizens could not vote)- but the power of business seemed to call that into question. Who was in charge- the citizens or the corporations? Wasn’t it the government’s job to look out for the people? Then why were so many leaders siding with the industrialists?

• Industrial cities often ruled by Political Machines- men behind the scenes who held power- but not offices. Have been around for a century, but reached their zenith in the

late 1800s. Used spoils system to make $$ for party leaders- generally through corruption or other illegal means

Boss Tweed• Ran the most infamous “machine” in NYC- Tammany Hall.

Cities had grown, but city government had not- bosses like Tweed took advantage of the gap. Controls city gov’t by controlling votes of immigrants, so he “helped” them in return for their votes, giving away more than $2 million in charity, and funding schools and hospitals. At the same time- Tweed gained as much as $200 million for himself/supporters through spoils, fraud and embezzlement.

• Thomas Nast: Political Reporter for NY Times- exposed Tweed’s actions in a series of Political Cartoons (Nast is credited with their modern creation) Tweed offered him $100,000 to stop, Nast refused. Samuel Tilden eventually prosecuted and Jailed Tweed in 1873.

• Boston, Chicago, Philadelphia, St Louis, and Cleveland also known for their political machines

Credit Mobilier• One way Robber Barons got what they wanted was by

“investing” in lawmakers- putting them on Board of Directors, or giving them stock within the company.

• Credit Mobilier: Construction Co created by Union Pacific RR, then hired by RR at ridiculous prices to build transcontinental with gov’t $$. Ends up making $75 mil on a $50 mil contract. Story breaks during the 1872

presidential campaign, 13 members of congress, and the VP found to be shareholders in the Co. Congressmen censured, VP replaced on ticket, but no other action.

Whiskey ring• 1875. A group of mostly

Republican politicians were able to siphon off millions of dollars in federal taxes on liquor. Diversion of tax revenues in a conspiracy among government agents, politicians, whiskey distillers, and distributors. Tainted Grant’s presidency- while there was never any direct evidence he was involved, some were his friends, and when scandal was exposed he kept attorney general from strong prosecutions.

The Politics of Dead Center• Divides of war have not faded. • Republicans. Every Republican

president elected from 1868-1900 had served in the union army, and they consistently hold 16 states in the North and West.

• Democrats: have the south, and do well with Catholic voters, especially the Irish in the cities. Have 14 “solid” states.

• That leaves 5 “swing” states- with NY and OH being the most important, the man who takes those takes the presidency, and that was typically a republican, they won all but 2 presidential elections –but races were remarkably close.

• String of one term presidents, we have another dry patch of leadership during from 1876-1900

Presidential Rankings: C-Span Survey, 2009

1. Abraham Lincoln2. Franklin Roosevelt3. George Washington4. Theodore Roosevelt5. Harry Truman6. John Kennedy7. Thomas Jefferson8. Dwight Eisenhower9. Woodrow Wilson10. Ronald Reagan11. Lyndon Johnson12. James Polk13. Andrew Jackson14. James Monroe

15. Bill Clinton16. William McKinley17. John Adams18. George H.W. Bush19. John Quincy Adams20. James Madison21. Grover Cleveland22. Gerald Ford23. Ulysses Grant24. William Taft25. Jimmy Carter26. Calvin Coolidge27. Richard Nixon28. James Garfield

29. Zachary Taylor

30. Benjamin Harrison

31. Martin Van Buren

32. Chester Arthur

33. Rutherford Hayes

34. Herbert Hoover

35. John Tyler

36. George W. Bush

37. Millard Fillmore

38. Warren Harding

39. William Harrison

40. Franklin Pierce

41. Andrew Johnson

42. James Buchanan

Government and the Economy• The power of the Federal government had grown during

the war- but not as fast as the rest of the country and economy was growing after it….Federal workforce was 100,000 people in 1880 – today 2.5 million.

• Industrialists kept ties to both parties- after all, you never know who will win…. Republicans favored high tariffs, Democrats don’t like tariffs, but had close ties to banking. US withdrew Greenbacks issued in the war in 1879, and returned to the Gold Standard.

• All this focus on the industrial east was not generally good for southern and western farmers- they had to pay inflated prices for manufactured goods, and the price of their crops was going down….

Reform Legislation• 4 months after his election, James Garfield was assassinated by Charles Guiteau, a disappointed office seeker. The assassination led to a call for civil service reform- the patronage (spoils) system (used since Jackson) had been discredited. • 1883 Congress created Civil Service Act . (Pendleton Act) designated a variety of federal jobs (10%)

that would be filled via a competitive exam process rather than appointment. A 1st step to creating a professional bureaucracy. Today only about 30% of federal jobs are filled via appointment.

• Also began reform against some business practices: ICC (Interstate Commerce commission) to regulate RR, saying that all rates must be “reasonable and just”. Had power to investigate, but not power to enforce. Still, a step in the Right direction…

Political Conflict in the States• National reform won’t really be a big thing until

turn of the century- but the states start sooner, investing in things like parks, water treatment systems, gas services for public health, welfare and education.

• Lots of 3rd parties out there – which shows people are not thrilled with Rep/Dem policies

• Greenback labor: protested the return to the gold standard, which meant there was less $$ available

in the economy. Would eventually merge in to the populist party, which would take up “Hard” vs “Soft” money as a major political issue

The Grange• The common name for members of the

Patrons of Husbandry, formed in 1867. Actually created for educational and social purposes, had meeting with lectures, picnics etc… to reduce the isolation common to farm families. Most successful in Illinois, Wisconsin, Iowa, and Minnesota

• 1st issue was against RRs- they protested unfair rates and grain storage charges.

• Had 700,000 members by 1873. Asked for laws which regulated RRs and warehouses. Formed co-ops to store their own grain, and negotiate for better RR rates.

Freedom in the Gilded AgeThe Social Problem

• There was very much an “us” vs. “them” mentality brewing in the US. “better/respectable” classes vs. “dangerous”

classes (notice that poverty is seen as a flaw- somehow making you less than an acceptable American)

• It was obvious to people that they were living in a time of enormous change, and lots of them weren’t sure how they felt about it. Books, pamphlets and articles were published by the thousands – widespread debate over the social and ethical implications of industrialization

Freedom, Inequality and Democracy

• Many factory workers could work all day every day – and never escape poverty. If that is true- is America the land of opportunity? It became harder to see wage labor as temporary, and the west wasn’t the answer any more

• Adam Smith said this is how it works- Malthus and Ricardo said resistance is futile. Most people (unless they were in the underclass) thought it right that vast wealth

flowed to Industrialists- that they were the ones working hardest. Many feared the political rights of the proletariat (or sought to use them) and thought of them as a THREAT to the freedom of the upper classes. Talked about return to property qualifications….

Social Darwinism in America

• Charles Darwin had published On the Origin of Species in 1859. Evolution is a scientific theory – but the idea of “natural selection” and “survival of the fittest” fit

right in to ideas of the Gilded Age• Social Darwinism: says that the strong will rule (as they do

in nature) and the government should not interfere. Especially wasteful would be efforts to uplift the underclass. ½ of the nations large cities offered no public relief in 1900

• Again- if you are poor, it’s your fault (not a new idea- remember protestant work ethic) reformers distinguished between “deserving” (widows and orphans) and the rest – who should just work harder, be thrifty, and keep out of debt.

• Graham Sumner “Government exists only to protect the property of men and the honor of women”.

Liberty of Contract• Interesting twist- said that laws to protect workers

(limit hours, minimum wage, safety regulations) actually HURT freedom – by preventing workers from making whatever “contract” they desire. The basic idea is – no matter how bad/dangerous the job is, if someone is willing to do it, they should be “free” to do so- and any laws that set limits are bad for workers.

The Courts and Freedom• Courts tended to use Liberty of Contract to define

the protections guaranteed by the 14th amendment: after all, workers should have the “freedom” to choose their employer without government interference.

• Wabash vs Illinois 1886: IL was trying to regulate RR to guarantee fair rates. But court says only Fed can do it (helped create ICC) but whenever Fed (or Court) called to investigate – Business seemed to come out on top.

• United States vs. E.C Knight Co 1895: said Gov’t could not break up a sugar refining monopoly b/c congress can only regulate commerce, not manufacturing.

• Lochner vs. New York 1905: said a law for a 60 hour work week violate right of worker to work as long as they wanted

Yellow Dog Contracts• While courts seemed very worried

about using the law to limit business, they had no trouble using it to limit labor organizations. Most common use of Sherman Anti-Trust law (meant to prevent monopolies) was to break up labor unions – which courts said interfered with free trade (primarily b/c of strikes)

• In order to get hired, workers were often required to sign an “ironclad oath” (yellow dog contract) where they swore never to join a union, or participate in strikes etc…

Labor and the Republic

“The Overwhelming Labor Question”• Divided Americans more deeply than any issue since

slavery- but this time it is along class lines rather than geographic ones.

• Industrial workers helped companies make millions in profit- and there was a virtually endless supply of unskilled labor available from immigration- individual workers had little power.

• Strikes very controversial- and often violent . 1st industry affected was RR (Great RR strike of 1877) and Pres. Hayes called out militia to force strikers back to work. Federal government began building armories in various cities- not to protect from invasion, but to be available to use against strikers.

Molly Maguires• Founded 1875 by Irish Coal Miners in PA/WV. Secret

society- used arson, intimidation, and violence to protest the owners refusal to allow unions.

• Owners call in the Pinkerton detectives (essentially para-military for hire) to infiltrate and break up the union

• 20 Mollies hanged in 1877• Controversial- some saw them as martyrs for labor, others as a symbol of working class anarchy that needed to be contained.

Knights of Labor and the Conditions Essential to Liberty

• 1st attempt to nationalize unions came in 1866 with the National Labor Union, but it fell apart in the panic of 1873.

• Knights of Labor founded 1869 as a secret society in Philadelphia. Led by Terence Powderly became “public” in 1879-93. All “workers” welcome (including women and blacks- but not liquor dealers, lawyers or stockbrokers)- had moderate, not radical goals. 700,000 members in 1886

• Economic and Social Reform: Wanted 8 hour day, end to child labor, equal pay for all workers in same job, and a graduated income tax.

• Lost credibility in the “Great Upheaval” a series of strikes (primarily against RR)

Middle Class Reformers • While workers suffered- there were those in the

middle classes who began to work on ideas for reform (after all, it’s been about a generation, time for another round of reform movements!)

• A whole series of Utopian (yeah we solved the problems!) and Dystopian (oh no, we had a cataclysmic collapse!) were writeen in the last 25 years of the 19th century. Sought to reclaim an imagined golden age of social harmony and American freedom

Progress and Poverty• Written by Henry George (1879) from California-

who was concerned by the monopolization of land there. (often by RR and other corporations)

• Solution was a “Single Tax” – which would replace all others, and be based on property. The tax would be set VERY high, to discourage people from owning large amounts of urban or rural land.

• “Freedom men” would do for industrial slavery what the republicans had done for African Americans – and then the purpose of government would become limited to projects to enhance quality of life- public bathes, museums, libraries and gardens.

The Cooperative Commonwealth• Written by Laurence Gronlund (1884), a lawyer

who had emigrated from Denmark in 1867. Socialist- said private business ownership should be replaced with government ownership to ensure a fairer distribution (was already a major movement in Western Europe) Seemed crazy revolutionary (after all, access to property is why people came!) but Gronlund began process of introducing socialism to US – said it would end class conflict (which people were getting tired of) and restore social harmony

Bellamy’s Utopia• Edward Bellamy wrote Looking Backward (1888)

which was also socialist- though he doesn’t use that word (calls it nationalist instead)

• Main character fall asleep – and wakes in the year 2000. There, cooperation has replaced class struggle, and inequality has been banished, so true “Freedom” exists. (you got it by being required to work as assigned in the Industrial Army headed by the Great Trust)

Protestants and Moral Reform• Wanted to stamp out sins that seemed on the rise

during the gilded age. “Christian Lobby” – called for legal solutions to what they saw as moral issues. (specifically labor conflict, Darwin & science) Not about individuals- these problems infected all society.

• Proposed abolishing : consumption of alcohol (common with immigrants and factory workers) gambling, prostitution, polygamy and birth control.

• In a fun twist- the South was the center of this reform movement- makes them the “Bible Belt”.

A Social Gospel• Insisted that freedom and spiritual self

development required the creation of a society that equalized wealth and power, and that the cutthroat competition of the industrial world was unchristian.

• Built churches in Urban areas- attempted to alleviate poverty, combat child labor, and encourage better housing, health, and safety laws.

Haymarket Riot• 1886 Chicago: the iron workers at the McCormick

plant were trying to unionize, and in Feb company brought in strikebreakers. May 3- strikers attempt to prevents new workers from entering the factory- police kill 4 strikers. The next day- a rally was held in Haymarket Square to protest the killings…. Police are called in…. And a bomb goes off- killing 8 police, wounding 60 (7 workers killed, 40 wounded as well)

• Anarchists blamed- 4 sentenced to death after witch hunt trial (1st “Red Scare” and 7 of the 8 accused of plotting were foreign)- to this day no one knows who had bomb.

Labor and Politics• As time goes by, many labor leaders (and others

unhappy with industrialization) will find the ballot their most effective tool, after all, if you want laws that will help your group, become the guy that makes them. Over 100 people associated with Knights of Labor run for office between 1886-1888 – 60 won.

• Labor never becomes a permanent party in US – instead Dems and Reps begin supporting labor goals during progressive era