American Industrial Revolution

Transcription

1 U.S. History A Ellsworth Week 2 American Industrial Revolution Chapter 6, Section 1 Chapter 6, Section 2 Chapter 12, Section 3

2 Chapter 6 10/21/02 4:57 PM Page 230 The Expansion of Industry WHY IT MATTERS NOW Terms & Names At the end of the 19th century, natural resources, creative ideas, and growing markets fueled an industrial boom. Technological developments of the late 19th century paved the way for the continued growth of American industry. Edwin L. Drake Bessemer process Thomas Alva Edison Christopher Sholes Alexander Graham Bell One American's Story One day, Pattillo Higgins noticed bubbles in the springs around Spindletop, a hill near Beaumont in southeastern Texas. This and other signs convinced him that oil was underground. If Higgins found oil, it could serve as a fuel source around which a vibrant industrial city would develop. Higgins, who had been a mechanic and a lumber merchant, couldn t convince geologists or investors that oil was present, but he didn t give up. A magazine ad seeking investors got one response from Captain Anthony F. Lucas, an experienced prospector who also believed that there was oil at Spindletop. When other investors were slow to send money, Higgins kept his faith, not only in Spindletop, but in Lucas. A PERSONAL VOICE PATTILLO HIGGINS Captain Lucas,... these experts come and tell you this or that can t happen because it has never happened before. You believe there is oil here,... and I think you are right. I know there is oil here in greater quantities than man has ever found before. quoted in Spindletop GUSHER! Pattillo Higgins and the Great Texas Oil Boom In 1900, the two men found investors, and they began to drill that autumn. After months of difficult, frustrating work, on the morning of January 10, 1901, oil gushed from their well. The Texas oil boom had begun. Natural Resources Fuel Industrialization After the Civil War, the United States was still largely an agricultural nation. By the 1920s a mere 60 years later it had become the leading industrial power in the world. This immense industrial boom was due to several factors, including: a wealth of natural resources, government support for business, and a growing urban population that provided both cheap labor and markets for new products. 230 CHAPTER 6

3 Chapter 6 10/21/02 4:57 PM Page 231 Vocabulary entrepreneur: a person who organizes, operates, and assumes the risk for a business venture Skillbuilder Answers 1. Pennsylvania 2. An abundance of coal and iron ore, plus access to a major river, contributed to Pittsburgh s high levels of steel production. BLACK GOLD Though eastern Native American tribes had made fuel and medicine from crude oil long before Europeans arrived on the continent, early American settlers had little use for oil. In the 1840s, Americans began using kerosene to light lamps after the Canadian geologist Abraham Gesner discovered how to distill the fuel from oil or coal. It wasn t until 1859, however, when Edwin L. Drake successfully used a steam engine to drill for oil near Titusville, Pennsylvania, that removing oil from beneath the earth s surface became practical. This breakthrough started an oil boom that spread to Kentucky, Ohio, Illinois, Indiana, and, later, Texas. Petroleum-refining industries arose in Cleveland and Pittsburgh as entrepreneurs rushed to transform the oil into kerosene. Gasoline, a byproduct of the refining process, originally was thrown away. But after the automobile became popular, gasoline became the most important form of oil. BESSEMER STEEL PROCESS Oil was not the only natural resource that was plentiful in the United States. There were also abundant deposits of coal and iron. In 1887, prospectors discovered iron ore deposits more than 100 miles long and up to 3 miles wide in the Mesabi Range of Minnesota. At the same time, coal production skyrocketed from 33 million tons in 1870 to more than 250 million tons in Iron is a dense metal, but it is soft and tends to break and rust. It also usually contains other elements, such as carbon. Removing the carbon from iron produces a lighter, more flexible, and rust-resistant metal steel. The raw materials needed to make steel were readily available; all that was needed was a cheap and efficient manufacturing process. The Bessemer process, developed independently by the British manufacturer Henry Bessemer and American ironmaker William Kelly around 1850, soon became widely used. This technique involved injecting air into molten iron to remove the carbon and other impurities. By 1880, American manufacturers were using the new method to produce more than 90 percent of the nation s steel. In this age of rapid change and innovation, even Natural Resources and the Birth of a Steel Town, MESABI RANGE L. Superior Pittsburgh Ohio River Allegheny River Minneapolis Omaha Mississippi Major industrial city Other cities Coal mining Iron ore mining Oil Steel production miles kilometers R. Milwaukee Chicago L. Michigan Indianapolis St. Louis Ohio R. New Orleans L. Huron Detroit L. Erie Cleveland Pittsburgh Cincinnati Atlanta L. Ontario A P PA L A C H I A N M O U N T A I N S Buffalo Wilkes-Barre Titusville New York Philadelphia Baltimore W Boston N S 40 N E ATLANTIC OCEAN 30 N City Limits Steel mills, 1886 Steel mills, 1906 Pittsburgh City Limits Monongahela R. GEOGRAPHY SKILLBUILDER 1. Region Which state had the most steel-producing areas? 60 W 2. Human-Environment Interaction What connection can you draw between natural resources (including water) and steel production in Pittsburgh? 50 W 70 W W 80 W

4 Chapter 6 10/21/02 4:57 PM Page 232 The Technological Explosion, Telegraph Sewing Machine Dynamite Light Bulb Radio Airplane Reaper Internal- Typewriter Phonograph Motion Pictures Photography Combustion Telephone X-Ray Engine Electric Motor HISTORICAL SPOTLIGHT ILLUMINATING THE LIGHT BULB Shortly after moving into a long wooden shed at Menlo Park, Thomas Alva Edison and his associates set to work to develop the perfect incandescent bulb. Arc lamps already lit some city streets and shops, using an electric current passing between two sticks of carbon, but they were glaring and inefficient. Edison hoped to create a longlasting lamp with a soft glow, and began searching for a filament that would burn slowly and stay lit. Edison tried wires, sticks, blades of grass, and even hairs from his assistants beards. Finally, a piece of carbonized bamboo from Japan did the trick. Edison s company used bamboo filaments until 1911, when it began using tungsten filaments, which are still used today. the successful Bessemer process was bettered by the 1860s. It was eventually replaced by the open-hearth process, enabling manufacturers to produce quality steel from scrap metal as well as from raw materials. A NEW USES FOR STEEL The railroads, with thousands of miles of track, became the biggest customers for steel, but inventors soon found additional uses for it. Joseph Glidden s barbed wire and McCormick s and Deere s farm machines helped transform the plains into the food producer of the nation. Steel changed the face of the nation as well, as it made innovative construction possible. One of the most remarkable structures was the Brooklyn Bridge. Completed in 1883, it spanned 1,595 feet of the East River in New York City. Its steel cables were supported by towers higher than any man-made and weight-bearing structure except the pyramids of Egypt. Like those ancient marvels, the completed bridge was called a wonder of the world. Around this time, setting the stage for a new era of expansion upward as well as outward, William Le Baron Jenney designed the first skyscraper with a steel frame the Home Insurance Building in Chicago. Before Jenney had his pioneering idea, the weight of large buildings was supported entirely by their walls or by iron frames, which limited the buildings height. With a steel frame to support the weight, however, architects could build as high as they wanted. As structures soared into the air, not even the sky seemed to limit what Americans could achieve. Inventions Promote Change By capitalizing on natural resources and their own ingenuity, inventors changed more than the landscape. Their inventions affected the very way people lived and worked. THE POWER OF ELECTRICITY In 1876, Thomas Alva Edison became a pioneer on the new industrial frontier when he established the world s first research laboratory in Menlo Park, New Jersey. There Edison perfected the incandescent light bulb patented in 1880 and later invented an entire system for producing and distributing electrical power. Another inventor, George Westinghouse, along with Edison, added innovations that made electricity safer and less expensive. The harnessing of electricity completely changed the nature of business in America. By 1890, electric power ran numerous machines, from fans to printing presses. This inexpensive, convenient source of energy soon became available in homes and spurred the invention of time-saving appliances. Electric streetcars made urban travel cheap and efficient and also promoted the outward spread of cities. More important, electricity allowed manufacturers to locate their plants Summarizing A What natural resources were most important for industrialization? A. Answer oil, coal, iron ore, water Vocabulary incandescent: giving off visible light as a result of being heated 232 CHAPTER 6

5 Chapter 6 10/21/02 4:57 PM Page 233 Analyzing Effects B How did electricity change American life? B. Answer It changed the nature of business, made possible the invention of new appliances, and helped cities and industries grow. wherever they wanted not just near sources of power, such as rivers. This enabled industry to grow as never before. Huge operations, such as the Armour and Swift meatpacking plants, and the efficient processes that they used became the models for new consumer industries. B INVENTIONS CHANGE LIFESTYLES Edison s light bulb was only one of several revolutionary inventions. Christopher Sholes invented the typewriter in 1867 and changed the world of work. Next to the light bulb, however, perhaps the most dramatic invention was the telephone, unveiled by Alexander Graham Bell and Thomas Watson in It opened the way for a worldwide communications network. The typewriter and the telephone particularly affected office work and created new jobs for women. Although women made up less than 5 percent of all office workers in 1870, by 1910 they accounted for nearly 40 percent of the clerical work force. New inventions also had a tremendous impact on factory work, as well as on jobs that traditionally had been done at home. For example, women had previously sewn clothing by hand for their families. With industrialization, clothing could be mass-produced in factories, creating a need for garment workers, many of whom were women. Industrialization freed some factory workers from backbreaking labor and helped improve workers standard of living. By 1890, the average workweek had been reduced by about ten hours. However, many laborers felt that the mechanization of so many tasks reduced human workers worth. As consumers, though, workers regained some of their lost power in the marketplace. The country s expanding urban population provided a vast potential market for the new inventions and products of the late 1800s. The typewriter shown here dates from around TERMS & NAMES For each term or name, write a sentence explaining its significance. Edwin L. Drake Bessemer process Thomas Alva Edison Christopher Sholes Alexander Graham Bell 2. TAKING NOTES In a chart like the one below, list resources, ideas, and markets that affected the industrial boom of the 19th century. In the second column, note how each item contributed to industrialization. Resources, Ideas, Markets Impact CRITICAL THINKING 3. MAKING INFERENCES Do you think that consumers gained power as industry expanded in the late 19th century? Why or why not? 4. HYPOTHESIZING If the U.S. had been poor in natural resources, how would industrialization have been affected? 5. ANALYZING EFFECTS Which invention or development described in this section had the greatest impact on society? Justify your choice. Think About: the applications of inventions the impact of inventions on people s daily lives the effect of inventions on the workplace A New Industrial Age 233

6 Chapter 6 10/21/02 4:58 PM Page 236 The Age of the Railroads WHY IT MATTERS NOW Terms & Names The growth and consolidation of railroads benefited the nation but also led to corruption and required government regulation. Railroads made possible the expansion of industry across the United States. transcontinental railroad George M. Pullman Crédit Mobilier Munn v. Illinois Interstate Commerce Act One American's Story In October 1884, the economist Richard Ely visited the town of Pullman, Illinois, to write about it for Harper s magazine. At first, Ely was impressed with the atmosphere of order, planning, and well-being in the town George M. Pullman had designed for the employees of his railroadcar factory. But after talking at length with a dissatisfied company officer, Ely concluded the town had a fatal flaw: it too greatly restricted its residents. Pullman employees were compelled to obey rules in which they had no say. Ely concluded that the idea of Pullman is un-american. A PERSONAL VOICE RICHARD T. ELY It is benevolent, well-wishing feudalism [a medieval social system], which desires the happiness of the people, but in such way as shall please the authorities.... If free American institutions are to be preserved, we want no race of men reared as underlings. Pullman: A Social Study The town of Pullman was carefully laid out and strictly controlled. As the railroads grew, they came to influence many facets of American life, including, as in the town of Pullman, the personal lives of the country s citizens. They caused the standard time and time zones to be set and influenced the growth of towns and communities. However, the unchecked power of railroad companies led to widespread abuses that spurred citizens to demand federal regulation of the industry. Railroads Span Time and Space Rails made local transit reliable and westward expansion possible for business as well as for people. Realizing how important railroads were for settling the West and developing the country, the government made huge land grants and loans to the railroad companies. 236 CHAPTER 6

7 Chapter 6 10/21/02 4:58 PM Page 237 Analyzing Effects A What were the effects of railroad expansion? A. Answer The growth of industries that could ship to new markets; hazardous jobs for railroad workers; an increase of immigration and migration to the West. A NATIONAL NETWORK By 1856, the railroads extended west to the Mississippi River, and three years later, they crossed the Missouri. Just over a decade later, crowds across the United States cheered as the Central Pacific and Union Pacific Railroads met at Promontory, Utah, on May 10, A golden spike marked the spanning of the nation by the first transcontinental railroad. Other transcontinental lines followed, and regional lines multiplied as well. At the start of the Civil War, the nation had had about 30,000 miles of track. By 1890, that figure was nearly six times greater. ROMANCE AND REALITY The railroads brought the dreams of available land, adventure, and a fresh start within the grasp of many Americans. This romance was made possible, however, only by the harsh lives of railroad workers. The Central Pacific Railroad employed thousands of Chinese immigrants. The Union Pacific hired Irish immigrants and desperate, out-of-work Civil War veterans to lay track across treacherous terrain while enduring attacks by Native Americans. Accidents and diseases disabled and killed thousands of men each year. In 1888, when the first railroad statistics were published, the casualties totaled more than 2,000 employees killed and 20,000 injured. RAILROAD TIME In spite of these difficult working conditions, the railroad laborers helped to transform the diverse regions of the country into a united nation. Though linked in space, each community still operated on its own time, with noon when the sun was directly overhead. Noon in Boston, for example, was almost 12 minutes later than noon in New York. Travelers riding from Maine to California might reset their watches 20 times. In 1869, to remedy this problem, Professor C. F. Dowd proposed that the earth s surface be divided into 24 time zones, one for each hour of the day. Under his plan, the United States would contain four zones: the Eastern, Central, Mountain, and Pacific time zones. The railroad companies endorsed Dowd s plan enthusiastically, and many towns followed suit. Finally, on November 18, 1883, railroad crews and towns across the country synchronized their watches. In 1884, an international conference set worldwide time zones that incorporated railroad time. The U.S. Congress, however, didn t officially adopt railroad time as the standard for the nation until As strong a unifying force as the railroads were, however, they also opened the way for abuses that led to social and economic unrest. A Opportunities and Opportunists The growth of the railroads influenced the industries and businesses in which Americans worked. Iron, coal, steel, lumber, and glass industries grew rapidly as they tried to keep pace with the railroads demand for materials and parts. The rapid spread of railroad lines also fostered the growth of towns, helped establish new markets, and offered rich opportunities for both visionaries and profiteers. HISTORICAL SPOTLIGHT CHINESE IMMIGRANTS AND THE RAILROADS Although the railroads paid all their employees poorly, Asians usually earned less than whites. The average pay for whites working a ten-hour day was $40 to $60 a month plus free meals. Chinese immigrants hired by the Central Pacific performed similar tasks from dawn to dusk for about $35 a month and they had to supply their own food. The immigrants working conditions were miserable, as depicted by artist Jake Lee below. In 1866, for example, the railroad hired them to dig a tunnel through a granite mountain. For five months of that year, the Chinese lived and worked in camps surrounded by banks of snow. The total snowfall reached over 40 feet. Hundreds of the men were buried in avalanches or later found frozen, still clutching their shovels or picks. A New Industrial Age 237

8 Chapter 6 10/21/02 4:58 PM Page 238 ANOTHER PERSPECTIVE ON THE WRONG TRACK While the railroads captured the imagination of most 19th-century Americans, there were those who didn t get on the bandwagon. The writer Herman Melville raged against the smoke-belching iron horse and the waves of change it set in motion as vehemently as his character Captain Ahab raged against the white whale and the sea in Moby-Dick. Hark! here comes that old dragon again that gigantic gadfly... snort! puff! scream! Great improvements of the age, Melville fumed. Who wants to travel so fast? My grandfather did not, and he was no fool. Pullman cars brought luxury to the rails, as shown in this advertisement from around NEW TOWNS AND MARKETS By linking previously isolated cities, towns, and settlements, the railroads promoted trade and interdependence. As part of a nationwide network of suppliers and markets, individual towns began to specialize in particular products. Chicago soon became known for its stockyards and Minneapolis for its grain industries. These cities prospered by selling large quantities of their products to the entire country. New towns and communities also grew up along the railroad lines. Cities as diverse as Abilene, Kansas; Flagstaff, Arizona; Denver, Colorado; and Seattle, Washington, owed their prosperity, if not their very existence, to the railroads. B PULLMAN The railroads helped cities not only grow up but branch out. In 1880, for example, George M. Pullman built a factory for manufacturing sleepers and other railroad cars on the Illinois prairie. The nearby town that Pullman built for his employees followed in part the models of earlier industrial experiments in Europe. Whereas New England textile manufacturers had traditionally provided housing for their workers, the town of Pullman provided for almost all of workers basic needs. Pullman residents lived in clean, well-constructed brick houses and apartment buildings with at least one window in every room a luxury for city dwellers. In addition, the town offered services and facilities such as doctors offices, shops, and an athletic field. As Richard Ely observed, however, the town of Pullman remained firmly under company control. Residents were not allowed to loiter on their front steps or to drink alcohol. Pullman hoped that his tightly controlled environment would ensure a stable work force. However, Pullman s refusal to lower rents after cutting his employees pay led to a violent strike in CRÉDIT MOBILIER Pullman created his company town out of the desire for control and profit. In some other railroad magnates, or powerful and influential industrialists, these desires turned into self-serving corruption. In one of the most infamous schemes, stockholders in the Union Pacific Railroad formed, in 1864, a construction company called Crédit Mobilier (krddpgt mi-bclpyer). The stockholders gave this company a contract to lay track at two to three times the actual cost and pocketed the profits. They donated shares of stock to about 20 representatives in Congress in A congressional investigation of the company, spurred by reports in the New York Sun, eventually found that the officers of the Union Pacific had taken up to $23 million in stocks, bonds, and cash. Testimony implicated such well-known and respected federal officials as Vice-President Schuyler Colfax and Congressman James Garfield, who later became president. Although these public figures kept their profits and received little more than a slap on the wrist, the reputation of the Republican Party was tarnished. C The Grange and the Railroads Farmers were especially affected by corruption in the railroads. The Grangers members of the Grange, a farmers organization founded in 1867 began demanding governmental control over the railroad industry. Summarizing B How did the railroads affect cities? B. Answer Railroads led to a growth of cities in the Northeast and the Midwest and led to the development of new cities in the West. Summarizing C How did railroad owners use Crédit Mobilier to make huge, undeserved profits? C. Answer By charging too much for railroad construction and paying off government officials. 238 CHAPTER 6

9 Chapter 6 10/21/02 4:58 PM Page 239 Seattle Major Railroad Lines, Portland GREAT Butte NORTHERN L. Superior 40 N PACIFIC OCEAN CENTRA L Sacramento San Francisco Los Angeles Eastern time Central time Mountain time Pacific time PACIFIC SOUTHERN Railroads by 1870 Railroads by W miles kilometers Background Price fixing occurs when companies within an industry all agree to charge the same price for a given service, rather than competing to offer the lowest price. Analyzing Issues D How did the Grangers, who were largely poor farmers, do battle with the giant railroad companies? Great Salt Lake P ACIFIC Tucson RAILWA Y 110 W NORTHERN Salt Lake City PACIFIC UNION PACIFIC Albuquerque El Paso Denver ATCHISON, TOPEKA, & TEXAS AND PACIFIC Fargo Fort Worth Minneapolis Omaha Topeka SANTA FE St. Paul ILLINOIS CENTRAL Chicago St. Louis Kansas City Memphis ILLINOIS C ENTRAL L. Michigan L. HuronL. Ontario Detroit Cleveland PENNSYLVANIA New Orleans GEOGRAPHY SKILLBUILDER 1. Human-Environment Interaction What factor led to rapid growth in Chicago, Minneapolis, and Denver? 2. Movement Why was rail construction concentrated in the East before 1870 and in the West after 1870? L. Erie Indianapolis Louisville Nashville Buffalo Atlanta NEW YORK CENTRAL Albany Pittsburgh RAILROAD ABUSES Farmers were angry with railroad companies for a host of reasons. They were upset by misuse of government land grants, which the railroads sold to other businesses rather than to settlers, as the government intended. The railroads also entered into formal agreements to fix prices, which helped keep farmers in their debt. In addition, they charged different customers different rates, often demanding more for short hauls for which there was no alternative carrier than they did for long hauls. GRANGER LAWS In response to these abuses by the railroads, the Grangers took political action. They sponsored state and local political candidates, elected legislators, and successfully pressed for laws to protect their interests. In 1871 Illinois authorized a commission to establish maximum freight and passenger rates and prohibit discrimination. Grangers throughout the West, Midwest, and Southeast convinced state legislators to pass similar laws, called Granger laws. The railroads fought back, challenging the constitutionality of the regulatory laws. In 1877, however, in the case of Munn v. Illinois, the Supreme Court upheld the Granger laws by a vote of seven to two. The states thus won the right to regulate the railroads for the benefit of farmers and consumers. The Grangers also helped establish an important principle the federal government s right to regulate private industry to serve the public interest. D INTERSTATE COMMERCE ACT The Grangers triumph was short-lived, however. In 1886, the Supreme Court ruled that a state could not set rates on interstate commerce railroad traffic that either came from or was going to another state. In response to public outrage, Congress passed the Interstate Commerce Act in This act reestablished the right of the federal government to supervise railroad activities and established a five-member Interstate Commerce Commission (ICC) for that purpose. The ICC had difficulty regulating railroad rates because of a long legal process and resistance from the railroads. The final Baltimore Washington, DC Richmond Norfolk Wilmington ATLANTIC OCEAN Savannah 80 W Boston New York Philadelphia W N S 40 N 30 N E Skillbuilder Answers 1. Their location as railroad hubs. 2. In 1869, the transcontinental railroad was complete, which spurred the need for new, smaller rail lines across the West. D. Answer The farmers took political action in one united front. They pressed legislators to pass laws to protect them. A New Industrial Age 239

10 Chapter 6 10/21/02 4:58 PM Page 240 Analyzing THE MODERN COLOSSUS OF (RAIL) ROADS Joseph Keppler drew this cartoon in 1879, featuring the railroad giants William Vanderbilt (top), Jay Gould (bottom right), and Cyrus W. Fields (bottom left). The three magnates formed a railroad trust out of their Union Pacific, New York Central, and Lake Shore & Dependence lines. SKILLBUILDER Analyzing Political Cartoons 1. The title of this cartoon is a pun on the Colossus of Rhodes, a statue erected in 282 B.C. on an island near Greece. According to legend,the 100-foot-tall statue straddled Rhodes s harbor entrance. Do you think the artist means the comparison as a compliment or a criticism? Why? 2. The reins held by the railroad magnates attach not only to the trains but also to the tracks and the railroad station. What does this convey about the magnates control of the railroads? SEE SKILLBUILDER HANDBOOK, PAGE R24. Skillbuilder Answers 1. Criticism. The Colossus of Rhodes protected the harbor; the magnates controlled the railroads for their own gain. 2. Controlling the tracks and the station implies that Vanderbilt has total control of the whole operation. blow to the commission came in 1897, when the Supreme Court ruled that it could not set maximum railroad rates. Not until 1906, under President Theodore Roosevelt, did the ICC gain the power it needed to be effective. PANIC AND CONSOLIDATION Although the ICC presented few problems for the railroads, corporate abuses, mismanagement, overbuilding, and competition pushed many railroads to the brink of bankruptcy. Their financial problems played a major role in a nationwide economic collapse. The panic of 1893 was the worst depression up to that time: by the end of 1893, around 600 banks and 15,000 businesses had failed, and by 1895, 4 million people had lost their jobs. By the middle of 1894, a quarter of the nation s railroads had been taken over by financial companies. Large investment firms such as J. P. Morgan & Company reorganized the railroads. As the 20th century dawned, seven powerful companies held sway over two-thirds of the nation s railroad tracks. Vocabulary consolidation: the act of uniting or combining 1. TERMS & NAMES For each term or name, write a sentence explaining its significance. transcontinental railroad George M. Pullman Crédit Mobilier Munn v. Illinois Interstate Commerce Act 2. TAKING NOTES In a chart like the one below, fill in effects of the rapid growth of railroads. Rapid Growth of Railroads How did the growth of railroads affect people s everyday lives? How did it affect farmers? CRITICAL THINKING 3. MAKING INFERENCES Do you think the government and private citizens could have done more to curb the corruption and power of the railroads? Give examples to support your opinion. Think About: why the railroads had power the rights of railroad customers and workers the scope of government regulations 4. SYNTHESIZING The federal government gave land and made loans to the railroad companies. Why was the government so eager to promote the growth of railroads? 5. ANALYZING MOTIVES Reread Another Perspective on railroads (page 238). Why do you think that some Americans disliked this new means of transportation? 240 CHAPTER 6

11 Chapter 12 10/21/02 5:19 PM Page 422 The Business of America WHY IT MATTERS NOW Terms & Names Consumer goods fueled the business boom of the 1920s as America s standard of living soared. Business, technological, and social developments of the 1920s launched the era of modern consumerism. Calvin Coolidge urban sprawl installment plan One American's Story In 1927, the last Model T Ford number 15,077,033 rolled off the assembly line. On December 2, some 1 million New Yorkers mobbed show rooms to view the new Model A. One striking difference between the two models was that customers could order the Model A in such colors as Arabian Sand and Niagara Blue ; the old Model T had come only in black. A Ford spokesman explained some additional advantages of the new automobile. The Model A was a more luxurious car than the Model T. It was introduced at $495. Model T s were selling for $290. A PERSONAL VOICE Good-looking as that car is, its performance is better than its appearance. We don t brag about it, but it has done seventy-one miles an hour. It will ride along a railroad track without bouncing.... It s the smoothest thing you ever rode in. a Ford salesman quoted in Flappers, Bootleggers, Typhoid Mary, and the Bomb The automobile became the backbone of the American economy in the 1920s (and remained such until the 1970s). It profoundly altered the American landscape and American society, but it was only one of several factors in the country s business boom of the 1920s. American Industries Flourish The new president, Calvin Coolidge, fit into the pro-business spirit of the 1920s very well. It was he who said, the chief business of the American people is business.... The man who builds a factory builds a temple the man who works there worships there. Both Coolidge and his Republican successor, Herbert Hoover, favored government policies that would keep taxes down and business profits up, and give businesses more available credit in order to expand. Their goal was to keep government interference in business to a minimum and to allow private enterprise to flourish. For most of the 1920s, this approach seemed to work. Coolidge s administration continued to place high tariffs on foreign imports, Skillbuilder Answers 1. Possible Answers: With a Southwestern route, engineers did not have to build a road across the Rocky Mountains. Also, Route 66 would help open up the sparsely populated Southwest to the rest of the country and thus spur population growth and economic development. 2. Cities along the route grew as traffic brought more business to the area. 422 CHAPTER 12

12 Chapter 12 10/21/02 5:19 PM Page 423 A. Possible Answers Roads were paved, and shopping centers and other services for cars were built; people commuted to work, and urban sprawl developed; regional differences diminished. Analyzing Effects A What was the impact of the automobile? which helped American manufacturers. Reducing income taxes meant that people had more money in their pockets. Wages were rising because of new technology and so was productivity. THE IMPACT OF THE AUTOMOBILE The automobile literally changed the American landscape. Its most visible effect was the construction of paved roads suitable for driving in all weather. One such road was the legendary Route 66, which provided a route for people trekking west from Chicago to California. Many, however, settled in towns along the route. In addition to the changing landscape, architectural styles also changed, as new houses typically came equipped with a garage or carport and a driveway and a smaller lawn as a result. The automobile also launched the rapid construction of gasoline stations, repair shops, public garages, motels, tourist camps, and shopping centers. The first automatic traffic signals began blinking in Detroit in the early 1920s. The Holland Tunnel, the first underwater tunnel designed specifically for motor vehicles, opened in 1927 to connect New York City and Jersey City, New Jersey. The Woodbridge Cloverleaf, the first cloverleaf intersection, was built in New Jersey in A The automobile liberated the isolated rural family, who could now travel to the city for shopping and entertainment. It also gave families the opportunity to vacation in new and faraway places. It allowed both women and young people to become more independent through increased mobility. It allowed workers to live Gas for cars was cheap and plentiful. Gas stations sprung up on Route 66 charging 25 per gallon. Route N 30 N PACIFIC OCEAN 120 W WASHINGTON Roadside stands offering food, drink, and other items appeared in increasing numbers. CALIFORNIA W S MOJAVE DESERT Barstow Los Angeles N The Auto Camp developed as townspeople roped off spaces alongside the road where travelers could sleep at night. E Winslow ARIZONA 0 UTAH Colorado River PAINTED DESERT MONTANA M O U N T A I N R O C K S Albuquerque Holbrook miles kilometers Y WYOMING NEW MEXICO COLORADO Arkansas River Santa Rosa Commissioned on the cusp of the Depression, Route 66 symbolized the road to opportunity. Also known as the Mother Road, it became the subject of countless songs, films, books, and legends Federal-Aid Road Act sets up highway program with the federal government paying half the cost of states highway construction Highway construction in 11 western WISCONSIN states begins under administration of Bureau of Public Roads U.S. Highway 66, which would run 2,448 miles from Chicago to Los Angeles, MINNESOTA California, is established. MICHIGAN Tucumcari Route 66 linked hundreds of rural communities in Illinois, Missouri, and Kansas to Chicago, enabling farmers to NEBRASKA transport produce. Amarillo Routing of highway through 392 miles of Oklahoma gave the state more miles, more jobs, and more income than other states on Route 66. KANSAS TEXAS Tulsa Red Galena OKLAHOMA River Mississippi Missouri River MISSOURI Claremore River IOWA Springfield Springfield ARKANSAS Lake Huron Chicago ILLINOIS Lake Michigan L. Superior OHIO INDIANA St. Louis KENTUCKY TENNESSEE GEOGRAPHY SKILLBUILDER 1. Place What do you think were some of the reasons government officials decided to build Route 66 through the Southwest rather than straight west from Chicago? 2. Movement How do you think the increase in traffic affected the cities along this route? Politics of the Roaring Twenties 423

13 Chapter 12 10/21/02 5:19 PM Page 424 PLAYER KEY CALVIN COOLIDGE Stepping into office in 1923, the tightlipped Vermonter was respected for his solemnity and wisdom. Coolidge supported American business and favored what he called a constructive economy. Known for his strength of character, Coolidge forced the resignation of Attorney General Daugherty and other high officials who had created scandal in office. Shortly after Coolidge was elected, his son died of blood poisoning. Coolidge later wrote, The power and the glory of the presidency went with him. When he decided not to seek reelection in 1928, Coolidge stumped the nation. Keeping in character, he said, Goodby, I have had a very enjoyable time in Washington. miles from their jobs, resulting in urban sprawl as cities spread in all directions. The automobile industry also provided an economic base for such cities as Akron in Ohio, and Detroit, Dearborn, Flint, and Pontiac in Michigan. The industry drew people to such oil-producing states as California and Texas. The automobile even became a status symbol both for individual families and to the rest of the world. In their work Middletown, the social scientists Robert and Helen Lynd noted one woman s comment: I ll go without food before I ll see us give up the car. The auto industry symbolized the success of the free enterprise system and the Coolidge era. Nowhere else in the world could people with little money own their own automobile. By the late 1920s, around 80 percent of all registered motor vehicles in the world were in the United States about one automobile for every five people. The humorist Will Rogers remarked to Henry Ford, It will take a hundred years to tell whether you helped us or hurt us, but you certainly didn t leave us where you found us. B THE YOUNG AIRPLANE INDUSTRY Automobiles weren t the only form of transportation taking off. The airplane industry began as a mail carrying service for the U.S. Post Office. Although the first flight in 1918 was a disaster, a number of successful flights soon established the airplane as a peacetime means of transportation. With the development of weather forecasting, planes began carrying radios and navigational instruments. Henry Ford made a trimotor airplane in Transatlantic flights by Charles Lindbergh and Amelia Earhart helped to promote cargo and commercial airlines. In 1927, the Lockheed Company produced a single-engine plane, the Vega. It was one of the most popular transport airplanes of the late 1920s. Founded in 1927, Pan American Airways inaugurated the first transatlantic passenger flights. Vocabulary status symbol: a possession believed to enhance the owner s social standing Analyzing Effects B How did the widespread use of the automobile affect the environment and the lives of Americans? B. Possible Answers It encouraged consumers to consider many more items necessities rather than luxuries. The Coolidge administration and big business got along very well together. Flight attendants train for an early United Airlines flight. When commercial airline flights began, all flight attendants were female and white. 424 CHAPTER 12

14 America s Standard of Living Soars The years from 1920 to 1929 were prosperous ones for the United States. Americans owned around 40 percent of the world s wealth, and that wealth changed the way most Americans lived. The average annual income rose more than 35 percent during the period from $522 to $705. People found it easy to spend all that extra income and then some. ELECTRICAL CONVENIENCES Gasoline powered much of the economic boom of the 1920s, but the use of electricity also transformed the nation. American factories used electricity to run their machines. Also, the development of an alternating electrical current made it possible to distribute electric power efficiently over longer distances. Now electricity was no longer restricted to central cities but could be transmitted to suburbs. The number of electrified households grew, although most farms still lacked power. By the end of the 1920s, more and more homes had electric irons, while well-to-do families used electric refrigerators, cooking ranges, and toasters. Eunice Fuller Barnard listed prices for electrical appliances in a 1928 magazine article: Image not available for use on this CD-ROM. Please refer to the image in the textbook. Forming Generalizations C How did the use of electricity affect Americans lifestyle? Goods and Prices, 1900 and wringer and washboard $ 5 brushes and brooms $ 5 sewing machine (mechanical) $25 washing machine $150 vacuum cleaner $ 50 sewing machine (electric) $ 60 These electrical appliances made the lives of housewives easier, freed them for other community and leisure activities, and coincided with a growing trend of women working outside the home. C THE DAWN OF MODERN ADVERTISING With new goods flooding the market, advertising agencies no longer just informed the public about products and prices. Now they hired psychologists to study how to appeal to people s desire for youthfulness, beauty, health, and wealth. Results were impressive. The slogan Say it with flowers doubled florists business between 1912 and Reach for a Lucky instead of a sweet lured weight-conscious Americans to cigarettes and away from candy. Brand names became familiar from coast to coast, and luxury items now seemed like necessities. One of those necessities was mouthwash. A 1923 Listerine advertisement aimed to convince readers that without Listerine a person ran the risk of having halitosis bad breath and that the results could be a disaster. American consumers in the 1920s could purchase the latest household electrical appliances, such as a refrigerator, for as little as a dollar down and a dollar a week. A PERSONAL VOICE She was a beautiful girl and talented too. She had the advantages of education and better clothes than most girls of her set. She possessed that culture and poise that travel brings. Yet in the one pursuit that stands foremost in the mind of every girl and woman marriage she was a failure. Listerine Advertisement Businesspeople applied the power of advertising to other areas of American life. Across the land, they met for lunch with fellow members of such service organizations as Rotary, Kiwanis, and the Lions. As one observer noted, they sang Politics of the Roaring Twenties 425

15 Chapter 12 10/21/02 5:19 PM Page 426 ANOTHER PERSPECTIVE THE NEEDY While income rose for many Americans in the 1920s, it did not rise for everyone. Industries such as textile and steel manufacturing made very little profit. Mining and farming actually suffered losses. Farmers were deeply in debt because they had borrowed money to buy land and machinery so that they could produce more crops during World War I. When European agriculture bounced back after the war, the demand for U.S. crops fell, as did prices. Before long there were U.S. farm surpluses. Many American farmers could not make their loan and mortgage payments. They lost their purchasing power, their equipment, and their farms. As one South Dakota state senator remarked, There s a saying: Depressions are farm led and farm fed. songs, raised money for charities, and boosted the image of the businessman as a builder, a doer of great things, yes, and a dreamer whose imagination was ever seeking out new ways of serving humanity. Many Americans idolized business during these prosperous times. A Superficial Prosperity During the 1920s, most Americans believed prosperity would go on forever the average factory worker was producing 50 percent more at the end of the decade than at its start. Hadn t national income grown from $64 billion in 1921 to $87 billion in 1929? Weren t most major corporations making fortunes? Wasn t the stock market reaching new heights? PRODUCING GREAT QUANTITIES OF GOODS As productivity increased, businesses expanded. There were numerous mergers of companies that manufactured automobiles, steel, and electrical equipment, as well as mergers of companies that provided public utilities. Chain stores sprouted, selling groceries, drugs, shoes, and clothes. Fiveand-dime stores like Woolworth s also spread rapidly. Congress passed a law that allowed national banks to branch within cities of their main office. But as the number of businesses grew, so did the income gap between workers and managers. There were a number of other clouds in the blue sky of prosperity. The iron and railroad industries, among others, weren t very prosperous, and farms nationwide suffered losses with new machinery, they were producing more food than was needed and this drove down food prices. BUYING GOODS ON CREDIT In addition to advertising, industry provided another solution to the problem of luring consumers to purchase the mountain of goods produced each year: easy credit, or a dollar down and a dollar forever. The installment plan, as it was then called, enabled people to buy goods over Background See productivity on page R44 in the Economics Handbook. Analyzing YES, SIR, HE S MY BABY This cartoon depicts Calvin Coolidge playing a saxophone labeled Praise while a woman representing Big Business dances up a storm. SKILLBUILDER Analyzing Political Cartoons 1. The dancing woman is a 1920s flapper independent, confident, and assertive. In what ways was big business in the 1920s comparable to the flappers? 2. What do you think the cartoonist suggests about Coolidge s relationship with big business? SEE SKILLBUILDER HANDBOOK, PAGE R CHAPTER 12

16 Chapter 12 10/21/02 5:19 PM Page 427 Analyzing Issues D What were the main advantage and disadvantage of buying on credit? D. Answer Advantage: People could buy goods they could not otherwise afford. Disadvantage: People could go far into debt without realizing it. Predicting Effects E How do you think the changes in spending will affect the economy? an extended period, without having to put down much money at the time of purchase. Banks provided the money at low interest rates. Advertisers pushed the installment plan idea with such slogans as You furnish the girl, we ll furnish the home and Enjoy while you pay. Some economists and business owners worried that installment buying might be getting out of hand and that it was really a sign of fundamental weaknesses of a superficial economic prosperity. One business owner even wrote to President Coolidge and related a conversation he had overheard on a train. D A PERSONAL VOICE Have you an automobile yet? No, I talked it over with John and he felt we could not afford one. Mr. Budge who lives in your town has one and they are not as well off as you are. Yes, I know. Their second installment came due, and they had no money to pay it. What did they do? Lose the car? No, they got the money and paid the installment. How did they get the money? They sold the cook-stove. How could they get along without a cook-stove? They didn t. They bought another on the installment plan. a business owner quoted in In The Time of Silent Cal Still, most Americans focused their attention on the present, with little concern for the future. What could possibly go wrong with the nation s economy? The decade of the 1920s had brought about many technological and economic changes. And yet the Coolidge era was built on paradox the president stood for economy and a frugal way of life, but he was favored by a public who had thrown all care to the wind. Life definitely seemed easier and more enjoyable for hundreds of thousands of Americans. From the look of things, there was little warning of what was to come. E E. Possible Answer The economy may falter when consumers are unable to meet their credit obligations. Automobile Registration TERMS & NAMES For each term or name, write a sentence explaining its significance. Calvin Coolidge urban sprawl installment plan 2. TAKING NOTES Re-create the web below on your paper and fill it in with events that illustrate the central idea. Technology & Business Changes of the 1920s Choose one event from the web and explain its significance in the 1920s. CRITICAL THINKING 3. EVALUATING Do you agree with President Coolidge s statement The man who builds a factory builds a temple the man who works there worships there? Explain your answer. Think About: the goals of business and of religion the American idolization of business the difference between workers and management Registration (millions) Source: Historical Statistics of the United States. 4. INTERPRETING GRAPHS What trend does the graph show between 1920 and 1930? What were some of the reasons for this trend? Politics of the Roaring Twenties 427