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