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Unformatted text preview: Chapter 18 notes. An industrial Economomy Agriculture and Industry- between 1865-1900, pop rose from 40 million to 75 million. GNP t ripled. Farming technology and new/fertile land increased output of crops. Federal govt was a key source to agricultural innovation(Hatch Act 1887 made agricultural experiment stations. Morrill Land Grant College Act 1862 funded agricultural colleges. Increased output and internationalization of markets due to improved transportation led to declining prices. Agriculture growth was significant but nothing compared to industrial growth. By 1900, manufacturing, construction, and mining accounted for 2/3rds of economy. Production of bituminous coal increased by 2000 percent(1868-1900) Industrialization was. The period had many panics which brought about plunging stock prices, business and bank failures. The Panic of 1873 brought about a depression that lasted until 1878. Severe depression 1893-1897. Agricultural economies are subject to the whims of nature. Industrial capitalist economies have business cycles, periods of investment and expansion followed by periods of stagnation or decline. Railroads-March 10, 1869, first transcontinental railroad was completed when a Central Pacific and Union Pacific railroad were joined. By 1890s there were 5 transCon railroads. Creating of railroads brought instability in many areas where it was overbuilt. Railroads are the nations first big business. This brought about separation of managers from ownership, modern accounting techniques, and long-run planning. Cattle and meatpacking became dependent on railroads. Nationalized the economy. Railroads created standard time zones. Also brought about the Interstate Commerce Act and Interstate Commerce Commission which gave the federal govt some right to actively regulate private enterprise. Big Business- by the end of the century, Standard Oil refined about 80% of nations oil. Carnege 30 % of all finished steel. General Electric and Westinghouse had complete control of the electrical equipment industry. 2 things about big businesses 1. Presence of many distinct operating units, each with its own administration and accounts (could operate by themselves) 2. Management by a hierarchy of salaried executives. Started using mass production (companies could produce large quantities of goods in a short period of time.) Full blown big business was pass production integrated with mass distribution which was known as vertical integration (raw goods to consumer.) Rockefeller practiced horizontal integration with Standard Oil by buying competitive refineries and forming alliances with others to control output, keep prices up, negotiate shipping rates w/ railroad....
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This note was uploaded on 03/24/2008 for the course HIST 315k taught by Professor Seaholm during the Spring '08 term at University of Texas at Austin.
- Spring '08
- Interstate Commerce Act