Industrialization1865-1901 Section 1 “The Rise of Industry”
Natural Resources • Even before the invention of the automobile, petroleum was in high demand because it could be turned into kerosene. • Edwin Drake – Drilled the first oil well.
Free Enterprise • Laissez-faire relies on supply and demand to regulate prices and wages. • Supporters of laissez-faire believed the government should interfere in the economy only to protect property rights and maintain peace. • Protect new domestic businesses from foreign competition.
Free Enterprise • During the early days of industrialization, many members of Congress believed that tariffs were necessary to help new American industries compete with large established European factories.
New Inventions • Alexander Graham Bell – Invented the telephone. • “Come here Watson, I want you.” • Thomas Alva Edison – Invented the phonograph, light bulb, electric generator, etc. • Set up Menlo Park which became the forerunner of the modern research laboratory.
Technology’s Impact • Northrop Automatic Loom – Changed bobbins without stopping. • Measurements taken of Union soldiers during the Civil War led to the development of ready made clothes.
Section 2 “The Railroads”
Pacific Railway Act – Began the railroad boom. • Union Pacific • Central Pacific • Hired workers from China when there was a labor shortage in CA. • Construction of the transcontinental railroad pushed west from Omaha, Nebraska. • The government offered each railroad company building the transcontinental railroad land along its right-of-way to encourage rapid construction.
Railroad companies raised a large percentage of their money from selling government land grants. • In 1883 the American Railway Association divided the country into four different time zones. • Cornelius Vanderbilt – Began the first direct rail service from New York City to Chicago.
Crédit Mobilier Scandal - Union Pacific investors became rich by paying inflated bills from a construction company they controlled. • Jay Gould - Practiced “insider trading”.