The Gilded AgeThe Gilded Age

• Phrase coined by Mark Twain• Roughly the time period between 1877

and 1900• Coincides with the “Victorian Era” in

England• U.S. begins to take the modern form we’re

familiar with today

The Gilded Age

• After corruption of U.S. Grant’s administration, there was a diminished role of the President

• Gilded Age Presidents:– 1876 – Rutherford B. Hayes– 1880 – James Garfield (1881-Chester Arthur)– 1884 – Grover Cleveland– 1888 – Benjamin Harrison– 1892 – Grover Cleveland– 1896, 1900 – William McKinley

• (2nd term, 1901 – T.Roosevelt)

Major Themes/Issues to be studied in the Gilded Age:

• Urbanization• Industrialization• Rise of “Big Business”• Growth of Labor

Unions/workers’ rights• Industrialized Farming

• Cultural developments

• Political Corruption• Immigration• Reform and

Progressivism

Urbanization

• Growth of cities• Changing from an agricultural society to

an urban one• Not just traditionally large cities grew; also

smaller cities and towns

Problems facing cities: they grew faster than leaders could plan/keep up

• Shortage of housing• Lack of sewage

systems• No indoor plumbing• No electricity

• Limited public services: – Trash collection– Transportation– Police/fire– Communication

Look of cities changed, too:• Development of

skyscrapers because:– Improved steel for

building frames– Invention of the

elevator by Elisha Otis

– Land shortage: grow up not out

The First Skyscraper: Home Insurance Building, 1885, Chicago

• Experiences in the time period differed greatly for the wealthy and the poor as there were wide gaps in the standard of living

Tenements • Very crowded

apartment buildings, small units, high rent

Dumbbell Tenement

Improved ventilation and lighting, helping health and sanitation of the tenements.

Jacob Riis

• Pronounced “Reese”• Photographer/photojournalist• Published a book called How the Other

Half Lives in 1890• Filled with photos of the urban poor in New

York and their living conditions• Led to calls for reform in housing

conditions

“New” Immigration

Changes and Experience

Changes in immigration:

• Before the Civil War, most immigrants came from western and northern Europe (England, Ireland, Scotland, Germany, Scandinavian nations)

• During the Gilded Age, more came from eastern and southern Europe (Italy, Poland, Russia, Hungary, Greece; many from Eastern Europe were Jewish)

• Called “New Immigration”

• Most immigrants arrived in cities on the East Coast, especially New York City

• They were generally poor and had to travel 3rd class, or steerage

• Accommodations were crowded and smelly

Ellis Island

• An immigrant processing facility was built to accommodate the huge numbers

• Barely off the coast of Manhattan and in sight of the Statue of Liberty

• Ellis Island operated from 1892-1954 Ellis

Statue

Today, Ellis Island serves as a museumand a research facility for historians and people who want to learn their own family’s history…and they sell really good hot dogs!

Registering as a citizen

http://Medical Exam

Life after Ellis Island…• Some stayed in New York; those who

had money or family traveled to their final destination

Many faced economic difficulty, discrimination and poor working conditions

Factories and Working Conditions

Work Force

• 14 million immigrants moved to U.S. from 1860-1900

• 8.5 million relocated from farms to cities• Led to a surplus of workers; in other

words, the supply (of workers) was greater than the demand – therefore, wages fell

• To make ends meet, often every member of the family worked, including children

Factory work

• Unskilled Labor (no special knowledge or training required)

• Made workers easily replaced• Average: 12 hours/day, 6 days/week• Some did piecework: paid not by time

worked by what they produced• Wages too low for one worker to support a

family

Conditions

• Dangerous – fires/accidents frequent• Loud• Poor Lighting• Poor ventilation• Strict discipline• Division of labor – workers repeated exact same

small task ALL DAY• No laws existed for worker protection• Always someone willing to take your job

There were no laws regarding pollution or environmental issues.Waste was dumped into landfills or bodies of water

Women & Children

• Children were 5-10% of the total workforce – often had developmental problems

• Women had no opportunity for advancement

• Used where smaller people would benefit

Factories as “part of the community”

• Most workers had to live in walking distance of the factory

• Most immigrants settled in distinctly ethnic neighborhoods

• Therefore, many factories were dominated by a particular ethnic group/nationality

• However, mangers and high-ranking employees tended to be white, American born

Rise of Labor Unions

• As working conditions worsened and wages dropped, workers looked for solutions

• Labor unions were already influential in Europe and many immigrants brought the idea with them to the U.S.

• First labor union in the U.S. was the Molly Maguires, a group of Irish coal miners in Pennsylvania

• Early unions were often organized according to ethnicity and/or the specific work being done

Knights of Labor

• Terrance Powderly “make every man his own master”

• Unite ALL workers• Workers create wealth so they

deserve a share of it• Emphasized education/training• End child/convict labor, equal pay

for women

Haymarket Square Riot

• Blamed violence on the KofL

• Unions in general lost credibility, members

• KofL fell apart and ceased to exist within a few years

American Federation of Labor

• Founded by Samuel Gompers – brought British ideas of organizing

• System of skilled workers, organized by trade, all under the AFofL guidance

• Believed that men (white) should be well paid so that women & children wouldn’t have to work

• Emphasis on 8 hour work day, wages and collective bargaining

AFofL• No women, minorities or

unskilled workers• Thought they shouldn’t have

the same arguments as skilled workers but encouraged them to form their own unions

• Remained strong in U.S. and merged with the CIO (founded later) in 1955

Industrial Workers of the World

• AKA the “Wobblies”• All workers should be in one big union• “Mother” Jones – female leader; believed

revolution & sabotage OK if it helped workers in the long run

• William “Big Bill” Haywood was best known leader

• Non-discriminating (race, gender, (un)skilled

“Workers of the World-Unite!”

• Wobblies also promoted socialism and a downfall of capitalism – by far the most radical of the labor groups in the U.S.

• Still around; stronger in Europe, not really present in U.S.

Unions and Politics

• Raised money and campaigned for “pro-labor candidates”

• Pushed for changes in laws; most success was gradually achieved at state and local levels

• Connected to the Democratic Party through Jackson’s image of the “common man” and immigrants, union have historically been affiliated with that party

Eugene Debs • Helped to found the Socialist Party in the

United States• One of most prominent Socialist leaders• Said that using Democratic system, the

workers could change the economy to a Socialist system and redistribute the wealth equally

Rise of Big Business

Characteristics of “Big Business”

• Much larger pools of capital (money available for investing) than small business

• Much higher cost of doing business (equipment, labor, shipping, etc.)

• Boards and committees running them rather than individuals; ownership divided among shareholders

• Use of complex technologies• Size and scope of business operations – no longer just a

neighborhood, city or state• Ability to take on multiple operations by one corporation• Development of bureaucratic management

• During the Gilded Age, the term “big business” usually referred to railroads, manufacturing or banking

• The public’s reaction to “big business” was mixed; they enjoyed lower prices and superior goods but hated the working conditions and ruthless or unethical business strategies used

Robber Barons or Captains of Industry?

• Americans both loved and resented the very rich

• They were celebrities of their time

Andrew Carnegie

• Carnegie Steel• First to employ widespread use of the

Bessemer Process which made steel stronger and cheaper

• Railroads were a major consumer of steel but so were buildings, farm tools and most machines being used

Cornelius Vanderbilt

• Began in steamboats then modernized with railroads

• Bought and consolidated rail lines all across the country

• Railroads became the primary method of shipping goods and travel, especially as the American population moved further west

John D. Rockefeller

• Perfected the oil refining process• Controlled 90% of the nation’s oil at the

height of his Standard Oil’s power• As more machines and engines were

developed, oil became necessary• Developed other uses for petroleum

products (Ex: kerosene – so he started manufacturing kerosene stoves and lamps)

J.P. Morgan

• Financier and investor in some of the largest businesses in U.S.

• Eventually bought Carnegie Steel (for just under $500 million) and consolidated it with other steel, coal and mining companies, renaming it U.S. Steel

• U.S. Steel was the first billion-dollar company

Carnegie Morgan

Vanderbilt Rockefeller

Philanthropy

• Many wealthy Americans believed in giving back

• Different from charity• Philanthropy is meant to have a long-term

effect and lasting improvement on society• Examples: universities, libraries,

museums, etc

40 Richest Americans of ALL TIME

• Adjusted for today’s dollar value• NO athletes, entertainers made the list• Only 3 are still alive!• Amount is based on accumulated wealth

over their lifetime; many gave away millions prior to their death or in their will

40 – Claus Spreckels (1828-1908): sugar refining 39 – Elias Hasket Derby (1739-1799): ship

building38 – William Rockefeller (1841-1922) THE

Rockefeller’s bro & worked for him37 – James Hill (1838-1916): steamboats &

railroads36 – Hetty Green (1834-1916) inherited millions

and invested it; only woman on list

35 – Leland Stanford (1824-1893): railroads (founded University)

34 – Edward Clark (1811-1882) lawyer, Singer Company president

33 – Mark Hopkins (1813-1878): railroads32 – James C. Flood (1826-1889): mining

and lumber31 – Philip Armour (1832-1901): meatpacking

30 – Nicholas Longworth (1782-1863): lawyer, real estate

29 – Peter Widener (1834-1915): streetcars and multiple investments

28 – Collis Huntington (1821-1900): railroads27 – Henry Frick (1849-1919): Carnegie’s

right-hand man26 – Oliver Payne (1839-1917): oil and steel

25 – Henry Rogers (1840-1909): oil, investor, Mark Twain’s business manager

24 – Edward Harriman (1848-1909): stock trader, railroads

23 – J.P. Morgan (1837-1913): investing and financing

22 – Paul Allen (1953 - ): co-founder of Microsoft: owns Seattle Seahawks, Portland Trail Blazers and Seattle Sounders

21 – Cyrus Curtis (1850-1933): newspaper publisher

20 – John Blair (1802-1899): mining and railroads

19 – Russell Sage (1816-1906): investing18 – Moses Taylor (1806-1882): importing,

railroads17 – William Weightman (1813-1904): early

pharmaceuticals and real estate16 – James Fair (1831-1894): mining, railroads

15 – Richard Mellon (1858-1933): investing (with brother Andrew)

14 – Andrew Mellon (1855-1937)13 – Warren Buffett (1930 - ) investing12 – Henry Ford (1863-1947): Ford Motor

Company11 – Sam Walton (1918-1992): Sam’s,

WalMart

10 – Marshall Field (1834-1906): department stores

9 – Jay Gould (1836-1892): investing and railroads

8 – Frederick Weyerhauser (1834-1914): lumber7 – A.T. Stewart (1803-1878): department stores6 – Stephen Girard (1750-1831): banking,

shipping, real estate, insurance

#5 Bill Gates

• 1955 – • Founder of Microsoft; developed new

software• Has largest fortune in total dollars

#4 John Jacob Astor

• 1763-1848• Fur trade• Real estate; owned all of northern

Manhattan when it was still forested

#3 Cornelius Vanderbilt• 1794-1877

#2 Andrew Carnegie

• 1835-1919

#1 John D. Rockefeller

• 1839-1937• By 1922, he’d given away about a

BILLION dollars to charity