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The New Economics: 1850-1910. Chapter 15. Railroads : Sec. 1. What transportation problems did Texans face before the building of railroads? How did Texans encourage companies to build railroads in their state? How did railroads change Texas?. The Growth of Railroads in Texas.
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The New Economics: 1850-1910 Chapter 15
Railroads : Sec. 1 • What transportation problems did Texans face before the building of railroads? • How did Texans encourage companies to build railroads in their state? • How did railroads change Texas?
The Growth of Railroads in Texas The Republic grants the right to lay track in 1836. Many people are suspicious of railroad companies and the building of the railroads is prevented. In 1851, work begins on the first rail line in Texas. The Civil War begins. Tracks fall apart with few people to care for them. After the war, railroads are slowly rebuilt. The state gives rewards to railroad companies and raises Funds to encourage production. Texas has a successful railroad system with many miles of track.
Financing the Expansion of the Railroads • Cities and counties sold bonds to raise money to build railroads. Bonds are certificates that promise to repay the amount paid for them plus interest. • Railroads also received tax breaks that allowed them to pay little or no taxes. • The biggest incentives offered to railroad builders were land grants. A land grant is a block of public land that a government gives to a business, school, or other organization. The Texas government gave railroad companies more than 30 million acres of land in large grants in the 1800s.
Banking : Sec. 2 • Why did the first bank in Texas fail? • How did the citizens of the state of Texas try to limit the power of banks? • What services did Texans hope would be provided by state-chartered banks?
Banking in Early Texas • The first bank in Texas, Banco Nacional de Texas, issued handmade bank notes.A bank note is a piece of paper issued by a bank that promises to pay the holder a certain sum. Texans did not trust this system of banking. • The first commercial bank in Texas, Banco de Commercia y Agricultura, was created in 1835. A commercial bank issues loans and provides services to businesses. In return, those businesses repay the loans with interest. • In its early days, the Republic of Texas used private firms to issue paper money and provide other financial services to Texans.
Texans Demand Better Banks • Texans voted to allow both state-chartered and national banks in 1904. Some Texans felt that state banks would help the state more than private banks, because they could be regulated. • Texas lawmakers created a Department of Insurance and Banking in 1906 to supervise the banks. • The rapid growth of banking around the turn of the century made many Texans rich and powerful. Texas passed a law in 1909 requiring banks to set aside a sum of money to use during a bank panic.
Beginnings of Industry : Sec. 3 • What were the first industries to develop in Texas? • Why did the timber industry come to East Texas? • What new industries grew rapidly after the Civil War?
Early Industry in Texas Industry – the processing of raw materials into goods for sale.
Gristmills Gristmills accounted for one third of the state’s manufacturing in 1870. Mills used the railroads to export products cheaply. The largest industry in 1880 was the production of flour and other gristmill products. This industry was still the third largest in Texas by 1900. Lumber Industry The growth of Texas railroads made it possible to ship lumber to distant markets. The Kirby Lumber Company became one of the largest companies in Texas. African Americans made up about one third of the sawmills’ workforce. Many companies paid workers with paper money that could only be used at company stores. Growth of Industry After the Civil War
Political Issues : Sec. 4 • What was the main goal of the Constitution of 1876? • How did the Texas government pay for a new Capitol? • What kind of reform movements grew in the late 1800s?
Constitution of 1876 In 1876, Texas delegates met in Austin to rewrite the Constitution of 1869. The Constitution of 1876: • limited the government’s power and spending • reduced the term of governor to two years • limited the power of the governor to appoint officials • returned law enforcement to local control In the late 1800s, Democrats held most of the public offices in Texas. They worked to reduce state debt and cut taxes: • They cut the salaries of state workers. • They paid veterans’ pensions in land instead of cash. These spending cuts enabled them to reduce taxes. But Outlaws had become a big problem, and Democrats could not cut spending on law enforcement. State debt continued to rise.
Building the New Capitol • Texas could not afford to pay for a new capitol. Instead, it provided land grants in exchange for building services. • The Capitol building was made of Texas pink granite. Its design was based on the Capitol in Washington. • The state held a contest to choose an architect. • Construction began in 1882 and ended in 1888.
Farmers Farmers claimed railroad prices were too high. They formed the Patrons of Husbandry, also known as the Grange. Grangers called for government regulation of railroads. Their efforts persuaded lawmakers to pass laws lowering rail fares. Railroads Railroads had no competition, so they could charge whatever they wanted. Railroads paid bribes to lawmakers to keep them from passing legislation that would lower the companies’ profits. They gave rebates to politicians to gain their support. Texans Fight for Reform – Farmers and the Railroads
Daily Life : Sec. 5 • What were some of the advantages and disadvantages of city life? • What problems confronted Texas farmers? • What hardships did African Americans, Tejanos, and women in Texas face?
Benefits of City Living Newspapers and telegraph connections helped cities become information centers. Cities developed into economic and cultural centers. Trolleys helped people get to work. They enabled cities to spread over a larger area. Trolley- a streetcar powered by overhead cables. City Problems Diseases spread quickly. Water was often impure (water impurity.) The lack of a sewage system left terrible odors and helped spread disease. Crime increased as cities grew. Population Growth and Cities
Rural Communities • Farmers in West Texas struggled with droughts. Many gave up and left the area. Ranchers had more success, because cattle adapted better to the dry conditions. • African Americans and Tejanos endured segregation in schools and the workplace. Lawlessness and biased viewpoints often resulted in violence against African Americans and Mexican Americans. • Prices for farm products were low, and railroad shipping rates were high. Many farmers were forced to sell their farms and take other jobs. • By the late 1800s, only one Indian reservation remained in Texas. A new rail line through Polk County in the 1880s boosted the lumber industry and created jobs for the Alabama-Coushatta Indians.
