The Growth of Industry Section: 1 Chapter 20: An Industrial Society 1860-1914
Mar 29, 2015
The Growth of IndustrySection: 1
Chapter 20: An Industrial Society1860-1914
Late 1700’s saw establishment of textile mills
in New England (Northeast US).
By mid-1800’s, factories spread to other
industries and regions.
Several factors lead to high growth…
Industrial Revolution Continues
America has large supplies of forests, water,
minerals, including coal, iron, copper, silver,
and iron.
Plentiful Natural Resources
Early 1800’s saw steamboats and canals
improve transportation.
Following Civil War, RR production boomed,
making transportation of goods easier.
Improved Transportation
From 1860 to 1900, US population grew from
31.5 million to 76 million.
This led to growing demand for goods,
spurring industry and supply.
Growing Population
1860-1900, 14 million people immigrated to
US.
Many knew specialized trades, such as
metalworking.
High Immigration
Immigration Continued…
New machines helped improve on processes.
Inventors applied for patents: government
document giving an inventor exclusive rights
to make or sell his/her product.
New Inventions
Financial resources that have cash value.
Factories, equipment, land, and machinery
owned by business to produce goods and
services.
Human Capital
Investment Capital
Capital (money) was provided to businesses
by banks (hoping to share in the profits).
Businesses used capital (borrowed money) to
purchase equipment, factories, labor.
Investment Capital
Continued…
1. Plentiful Natural Resources
2. Improved Transportation (RR)
3. Growing Population
4. High Immigration
5. New Inventions
6. Investment Capital
What are the major growth industries? (6)
Petroleum DiscoveredPetroleum: Oily
flammable liquid (1855).
Edwin Drake begins drilling in 1859 & strikes oil in August.
Launches oil industry
Pattern of ups (boom) & downs (bust) in the
economy.
Business Cycle
Good times (up swing) people buy more and
invest more heavily.
Bad times (down swing) people spend and
invest less.
Down swings (recessions) lead to higher
unemployment rates, less goods produced,
businesses may close.
Business Cycle Continued…
When was the last time the US had a recession?
Recent US Recession
Prior to mid-1800’s, steel was expensive due
to process that used large amounts of coal.
Henry Bessemer & William Kelly (1850’s)
come up with new design using less coal.
Steel Industry
Bessemer steel process: increased steel
output by 500 times 1867-1900.
Plows, barbed wire, nails, & beams for
buildings now made out of steel instead of
iron.
Main use still for RR’s.
Steel Continued…
Railroad Steel: 1890
1870’s invention of the generator
Generator: machine producing electric
current
Electric Power
Thomas Edison1876 opens laboratory,
employing many assistants.
Received over 1,000 patents
Invents safe light bulbInvents system to
deliver electric to buildings
Alexander Graham BellTaught deaf students
in Boston.Invents device to
transmit speech using electricity.
Receives patent in March 1876 for telephone.
Jan MatzeligerImmigrant from Dutch
Guiana.Invents machine that
fastens soles to bottom of shoes.
Increases production by 1,400%.
Telephone industry grows rapidly, selling
50,000 telephones by 1880.
Technology Changes Industry
Numbers of inventions helped employ
women.
1. Switchboard operators (1880’s)
2. Typewriting (1870’2)
3. Sewing Machine patented by Isaac Singer
(1851)
Female Labor Force
Sewing machine leads to ready-made clothes.
Came in standard sizes
People now bought clothes instead of making
them.
Clothing
RR’s continued to have largest impact through mid-1800’s.
Railroad
Section: 2
Railroads Transform the Nation
RR spanning the entire United States.
Bill passed in 1862 to allow two companies to
build, helping lure settlers to the West.
Transcontinental Railroad
Central Pacific started in Sacramento,
California, and build east.
Union Pacific started in Omaha, Nebraska,
and built west.
Two Railroads
RR’s needed large amounts of money to build.
Government lent millions of $.
Government also provided 20 square miles
for every one mile of track. Excess land could
be sold for profit.
Government Involvement
Due to labor shortages (mining, ranching,
etc.), Chinese labor was essential.
At peak of production, 10,000 Chinese
worked on RR.
Chinese Rail Workers
RR’s hired former soldiers from North and
South, former slaves, and Irish immigrants
(largest).
Both companies occasionally hired Native
Americans.
Variety of Backgrounds
May 10th, 1869, Central and Union lines
connect in Promontory, Utah.
1869 RR earned $300 million
1890 RR earned $734 million
Transcontinental RR Connected
Originally, communities had set their own
times.
Crossing several time zones caused problems
RR comes up with standard time: dividing the
US into four time zones.
Went into effect on November 18th, 1883
However, Congress doesn’t adopt till 1918.
Railroad Changes Time
Time Zones
1. RR linked east and west economies. Lumber,
livestock, and grain carried east.
2. Lifeline to settlers, bringing food,
equipment.
3. RR’s push Native Americans out.
4. RR’s allowed urban centers to move in-land,
rather than being connected to waterway.
Social & Economic Change
Positives
Railroad Growth
Negatives