| (Lesson 1 cont.)--pg 2 VI. Farm Discontents A. Farm Problems 1. Receiving inadequate prices for farm goods 2. Paying high prices for farm machinery and shipping rates 3. Over production B. Farmers' Enemies--"Plutocracy" rule of the rich/wealthy * located in NE Sector * Controversy--NE vs W & S 1. RR monopolies 2. Manufacturing monopolies (machinery) 3. Banker * Neither political party stepped forward to help them C. Farm Belt Radicalism 1. Grangers--Grange movement started in 1867 by Oliver Kelley --farmers coming together w/common concerns/needs 2. Farm Alliances--1870s --ex: Texas Alliance, Southern Alliance --by 1890 membership was 2 1/2 million --formed parties such as Greenback Party (reference to money) --believed their problem could be solved by more money in circulation D. Populist Party *formed in 1892 *nominated James Weaver for President *other populist leaders: -Mary Elisabeth Lease-public speaker -Tom Walter-Georgia state Governor Lesson 2--Industrialization Intro: Necessary Components 1. Machines-there must be enough of them --transition from steam to electric 2. Abundant supply of raw materials --lumber, iron, oil, coal 3. Finance-coming from foreign and domestic--European and American 4. Markets-adequate market base to move and sell products --market base expanding --moving to cities, people become consumers --America expands outside of N.America (market overseas) 5. Labor Force must be adequate --mainly unskilled workers --repetitive acts in factories from foreign immigrants and displaced American farmers I. Captains of Industry or Robber Barons? A. Meat Industry--Gustavus Swift introduced: 1. Centralized meat processing plant * No Govt regulation 2. Leads to abuse and unsanitary conditions ** "The Jungle" (1906) Upton Sinclair wrote it, educating public on meat industry B. Technology--Thomas Edison led the way 1. Over 1000 U.S. patents (ex: motion picture camera, phonograph, incandescent light bulb, direct current electricity) 2. Pearl St. Station (1882) 1st Electric Company (New York) C. Steel--Andrew Carnegie (1848) Scottish Immigrant 1. Rags to Riches dream 2. From Factory to RR to Steel -he learned morse code, became telegraph operator at RR at age of 16 -met Thomas Scott, owner of Pennsylvania RR, who taught him about investments 3. Bessemer Method (England) Henry Bessemer-method of processing steel -Carnegie memorized it and brought it to the U.S 4. Introduced Careful Management System 5. Introduced Vertical Integration -getting control over all processes in your industry from raw to finish 6. Imaginative marketing **A humanitarian, philanthropist, helped others, shared his wealth **1900 sold his steel industry to J.P. Morgan D. Finance--J.P. Morgan **Bought the steel industry for $492 million **JPM Represents: 1. Corporate finance and investment banking 2. Marketed Corporate Stocks and Bonds E. Railroads--Jay Gould--age of the Robber Barons 1. America's First big business 2. JG started Pullman City--self contained community-outside of Chicago,built customized RR cars 3. JG owned Erie RR, made of several RRs**he was caught doing malpractices 4. Abuses of the RRs a. Financial Abuse--sold corrupt stock in his RR, overinflated value, lying to the public b. Political Corruption c. Unfair rate setting (no federal regulation 5. This caused Depression 1873 F. Oil--John D. Rockefeller--Standard Oil of Ohio (1870s) **Opposite of Carnegie--born into wealth 1. Leader of Standard Oil of OH--monopoly 2. 1879--Standard Oil of OH, controlled 90% of all oil production in America -they owned wells, refineries, and corporate stock in RRs shipping oil **1911 Supreme Court ruled that Standard Oil must be dissolved |
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