American

Industrial
Revolution
FACTORS STIMULATING THE INDUSTRIAL
REVOLUTION
IN THE U.S.
 The ending of the American Civil War and the profits
it generated (war supplies, inflation and legislation
favorable to businesses) e.g. in iron manufacturing,
productivity increased. New innovations occurred,
new business created to supply war needs and
banking systems improved.
 The civil war also brought about an end to slavery,
which created a market and a demand for industrial
goods and machinery to replace slave labour
 Abundance of natural resources e.g. iron, cotton,
lumber, coal, people, oil, petroleum, manganese,
copper
 Breakthroughs and inventions from the British industrial
revolution was used in the U.S. e.g. steam power, railways,
etc
 Their government was stable, supported industrialization and
put tariffs on imports to encourage local industries. They also
put in place banking legislation and judicial protection of
corporations
 The social and cultural attitudes of the Americans (they
placed emphasis on hard work, they were thrifty)
 A period of large population growth
 Immigration provided cheap labour as well as people with
managerial and technical skills. It “provided a seemingly
inexhaustible supply of cheap labour as well as managerial
and technical supply.”
 Territorial expansion (Manifest Destiny)
 Improvements in transportation and communication due to
the introduction of the railway system
 SOCIAL DARWINISM
 Charles Darwin – survival of the fittest
 SocialDarwin theory evolved:
 Society should do as little as possible to interfere with peoples
pursuit of success
JOHN D. ROCKEFELLER
$ Standard Oil Co.
$ Eventually owned all
oil companies in US.
$ Horizontal
consolidation
$ 40 companies
$  His Standard
Oil Company dominate
d the oil industry until
John D. Rockefeller the Supreme Court
broke it up in 1911. 
ANDREW CARNEGIE
$$ Carnegie
Carnegie started
started as as a telegrapher and
a telegrapher and
by
by the
the 1860s
1860s had
had investments
investments in in
railroads,
railroads, railroad
railroad sleeping
sleeping cars,
cars,
bridges
bridges and
and oil
oil derricks.
derricks. He He built
built
further
further wealth
wealth asas aa bond
bond salesman
salesman
raising
raising money
money forfor American
American enterprise
enterprise
in
in Europe.
Europe.
$$ In
In the
the 1870s,
1870s, he
he founded
founded the 
the 
Carnegie
Carnegie Steel
Steel Company,
Company, aa stepstep which
which
cemented
cemented his his name
name as as one
one of
of the
the
"Captains
"Captains ofof Industry".
Industry".
$$ By
By the
the 1890s,
1890s, the
the company
company was was the
the
largest
largest and
and most
most profitable
profitable industrial
industrial
enterprise
enterprise inin the
the world.
world.
$$ Carnegie
Carnegie sold
sold it
it in
in 1901
1901 for
for $480
$480
million
million to J.P.
to J.P. Morgan,
Morgan, who who created 
created 
U.S.
U.S. Steel. 
Steel. 
Andrew Carnegie $$ He
He is
is often
often regarded
regarded as as the 
the 
second-richest
second-richest man man in in history after 
history after 
John
John D.D. Rockefeller.
Rockefeller.
TYPES OF CONSOLIDATION
 Pooling was an informal agreement between firms to limit
output or divide market. The failed as they were not legally
binding. By the 1880s they disappeared
 Trusts were arrangements whereby stockholders in different
companies deposited their shares under agreements with
trustees, who had equal unified control over a number of
independent firms. E.g. In 1880, the Standard Oil Company of
Ohio created the first trust joining stockholders of 77 oil
companies, producing 90% of refined oil. They transferred
their stocks to 9 trustees. It had been mostly abandoned
because of attacks from state courts
 Holding companies have survived until today. Under the
system, a corporation purchased sufficient stock in to her
companies eventually gaining control over their corporation.
Eg. Henry O Havemeyer Sugar Refining Company (1891) was
transferred into a holding company.
The Changing American
Labor Force
TRADE UNIONISM
 They sought to represent the consolidation of workers
to combat the oppressive capitalists
 The Trade Unions were mostly developed by immigrants
who had been exposed to it in their home countries
 It faced many problems, namely:
 Not all immigrants were united e.g, language, ethnic,
religious difference
 Racism also slowed the process (White Americans and
immigrants refused to associate with blacks)
 Skilled workers did not want to associate with unskilled
workers
 The employers often exploited this and used labour-spies,
blackmail, blacklists and even armed forces to quell the
Trade Unions.
 Knights of Labor

Terence V. Powderly

An injury to one is the concern of all!

 Goals of the Knights of Labor

ù Eight-hour workday.
ù Abolition of child and prison labor.
ù Equal pay for men and women.
ù Safety codes in the workplace.
The American Federation
of Labor: 1886

Samuel Gompers
 How the AF of L
Would Help the Workers
ù Catered to the skilled worker.
ù Represented workers in matters of national
legislation.
ù Maintained a national strike fund.
ù Evangelized the cause of unionism.
ù Prevented disputes among the many craft
unions.
ù Mediated disputes between management
and labor.
ù Pushed for closed shops.
THE US BY 1820
 Peace treaties signed with Britain and France
 Expansion of states from 13 in 1776 to 24 by 1830
 Election of Andrew Jackson and his social
progress outlook 1828
 Population increased to 13 million and a
significant amount of the population was German
or Irish immigrants
 Brutal plantation slavery
 Displacement of the Native Indians
 Wide differences between South and North
economic development
SAMPLE ESSAY
 Discuss the factors responsible for the rapid
growth of industry in the US in the late 19th
century