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AMH 2020-U.S. History since 1877 (ONLINE) SUMMER 2017 Professor: Mark J. Smith, Ph.D.

Course Schedule

Before beginning read pages 1-5 of this textbook and the Final Exam

Periods

Due Date

Assignments

Discussion

I. 1870s

to ca. 1900

R, 6/21*

Assign m ent 1

Discussion 1

M, 6/25

Assignment 2

Discussion 2

II. ca. 1900

to 1929

R, 6/28

Assignment 3

Discussion 3

M, 7/2

Assignment 4

Discussion 4

III. 1929

to 1945

R, 7/5

Assignment 5

Discussion 5

M, 7/9

Assignment 6

Discussion 6

IV. 1945

to ca. 1970

R,7/12

Assignment 7

Discussion 7

M, 7/16

Assignment 8

Discussion 8

V. ca. 1970

to present

R, 7/19

Assignment 9

Discussion 9

M, 7/23

Assignment 10

Discussion 10

R, 7/26

Discussion 11

T, 7/31

Final Exam Due on Canvas by 11:59 pm

*You are required to submit one assigned task during the first week to remain enrolled in the class.

If you fail to do so, you will be withdrawn. If withdraw, re-enrollment will not be allowed.

PROLOGUE ESSAY: The essay below explains the general philosophy behind this class. You should read it carefully and be sure that you understand the nature of the class.

M.J. Smith, On Creating a Usable Past.

There’s an adage about history, that it’s just one damn thing after another. Lots of people think that history is a linear narrative of persons, places, events, and the like, the ‘knowing’ of which makes someone an expert in history. Historians, many believe, have a vast, encyclopedic knowledge of the past that they convey to students who are expected to ‘learn’ that information. But, as the philosopher of history R.G. Collingwood said in 1946, “Nothing capable of being memorized is history.” For our purposes, history is not a collection of information or “knowledge” about the past, but an intellectual tool that has value only to the extent that it is usable.

As with any tool, history requires a set of skills to be applied properly and effectively. In the words of the American Historical Association, history involves “the study of the human past as it is constructed and interpreted with human artifacts, written evidence, and oral traditions. It requires empathy for historical actors, respect for interpretive debate, and the skillful use of an evolving set of practices and tools.” In this class, you will be given the opportunity to develop those skills, methods, and habits of mind that will help you make use of the intellectual process, or discipline, that is history.

From its original Greek, the word history means to inquire. Writing in 1931, historian Carl Becker wrote that history is “an imaginative creation.” It is born in the mind, and it requires that we develop what Lendol Calder described in 2016 as “disciplined process of problem solving and supported by evidence.” The skills of historical inquiry can be used to solve problems, address issues, and develop ideas in your daily life. If done properly, you will be able to construct interpretations supported by evidence within a historical context.

In addition to the tools of inquiry, the course also calls for the development of empathy or historical perspective. As you study the experiences of people in the past you will need to understand them on their own terms, born of the historical context in which they lived. You should develop this ability to empathize with the people in the past not for their benefit, but for yours. Connecting with the people of the past helps you understand your place in the present. It gives you examples, experiences, and exemplars of how others have dealt with problems and took advantage of opportunities.

Thus, to create a usable past you need to develop skills: The ability to use evidence and reasoning to come to meaningful conclusions about historical problems. The ability to express understanding of the historical contexts from which the evidence is drawn. The ability to apply empathy to the people of the past. The ability to use the past to address contemporary issues.

At the end of the course, if you can do these things well, you will have a broader and stronger set of thinking skills. You will think more critically and effectively. You will have gone a long way toward creating a usable past. This will help you in all walks of life; it will make you a better citizen, family member, worker, and leader.

GUIDELINES FOR COURSEWORK

GUIDELINES FOR CHARACTERIZING CONTEXT. Making use of the past begins with understanding the context in which historical events, people, movements, ideas, institutions, cultures, etc. are positioned. Explaining historical context requires a clear statement of the broad nature and general contours of the period in question. This is its character and should encompass the entire period.

Learning Outcome addressed: Express Understanding of Historical Context.

How to Characterize Historical Context:

· 1. Write a two to four sentence statement that identifies and fully encompasses the period in question.

· 2. Express the nature and contours of the overall period. Don’t focus on one aspect.

· 3. Be scholarly, coherent, and show proper writing mechanics. Write in third person.

Exceeds Satisfactory:

· 4. Show complexity or thoughtfulness. Clearly suggest the distinctiveness of this period.

Example of a Characterization: The formative period for the United States began in antiquity and continued through the mid-1700s as the population and “American” culture took shape. Over this period indigenous peoples, Europeans, and Africans came to occupy the region that would become the United States. While Europeans were the dominant culture in the region, African slaves provided important and lasting elements of American life. The development of American culture and society in this period, a sense of American identity, was a necessary precursor for the movement for political independence that followed.

GUIDELINES FOR DESCRIBING FEATURES. You should be able to identify the most significant features of the period, those with the biggest impact. These are most impactful features, rather than specific details. Typically, there are five to seven such features.

Learning Outcome addressed: Express Understanding of Historical Context.

How to Describe the Most Significant Features: Use this list to check your work.

· 1. Describe the historical features of the period that had a broad impact, in two or three sentences each.

· 2. Be scholarly, coherent, and show proper writing mechanics. Write in third person.

Exceeds Satisfactory:

· 3. Show a sense of judgment about what is significant; don’t include unnecessary specifics or details.

Example of a Statement on a Significant Feature*: Development of the American colonies relied heavily on the use of indentured servitude and slave labor. Both added significant social and cultural elements to the country. But while slavery was a violent forced migration of Africans, indentured servants were mostly white Europeans.

*There are typically five to seven of these for each period.

GUIDELINES FOR WRITING A THESIS.

Paragraphs and essays must begin with a concise statement that expresses your argument, interpretation, or claim about the issue in question. If it is clearly a factual statement, it is not a thesis. The thesis is what gives your work coherence, or holds it together. It is the controlling idea for the body of the work that follows. Without a thesis or with a weak thesis, the work is out of control; it is a ramble or a list. The thesis should be clear, focused, and complex. See the example below for a thesis for a paragraph.

Learning Outcome Addressed: (2) Develop and express a historical interpretation in a thesis.

How to write a thesis statement: Use this list to check your work.

· 1. Write a two to four original sentences thesis. Avoid using the terms of the question.

· 2. Identify the historical period in question within the thesis.

· 3. Focus fully and directly on the issue in question as reflected in the sources.

· 4. Be scholarly, coherent, and show proper writing mechanics. Write in third person.

Exceeds Satisfactory:

· 5. Be complex; address more than one aspect of the issue or idea. Reflect all of the sources.

· 6. Be thoughtful or insightful, rather than conventional, basic, or bland.

Example of a Thesis Statement:

Immigrants from Europe and Asia in the late-nineteenth and early-twentieth centuries faced derision and bigotry from the those who saw them as an economic and cultural threat. These new immigrants confronted the discrimination through activism and adaptation while maintaining their cultural heritage. They formed close-knit communities that helped them cope with life in their new homeland while providing a means to organize and advocate for their needs. While preserving their cultural heritage benefitted the immigrants, it fueled suspicion and distrust among the pre-existing population.

GUIDELINES FOR USING EVIDENCE.

Paragraphs should be developed with evidence in the form of primary and secondary sources. Secondary sources are the accounts produced by historians or other scholars, generally long after the events have taken place. Primary sources are original letters, photographs, works of art, interviews, printed accounts, official records, statistics, or other material produced at the time to which they refer or by those who witnessed the events of the time. You must clearly identify the sources you use as part of a sentence, integrated within your own prose, as shown in bold face in the example paragraph below. Short quotations from sources, integrated carefully within your own sentences, make for good writing.

Learning Outcome Addressed: (3) Support the thesis with evidence.

How to use evidence: Use this list to check your work.

· 1. Write a point of two to four sentences.

· 2. Identify the source as part of a sentence.

· 3. Clearly support the thesis.

· 4. Cite sources in boldface by author, time reference, and type.

· 5. Incorporate at least one quotation from a primary source, not more than 15 words.

· 6. Be scholarly, coherent, and show proper writing mechanics. Write in third person.

Exceeds Satisfactory:

· 7. Fully develop the point without going over four sentences.

· 8. Uses the source and quotations very effectively to provide strong support for the thesis.

Example of a Point of Evidence:

In a 1902 magazine article, a Polish Jew named Sadie Frowne demonstrated her resolve to be a part of the American nation. Frowne recalled her arrival in America, the hardships of the voyage, and the joy she felt upon seeing the “Goddess of Liberty.” She lived in Jewish neighborhood in New York, but worked in the wider community where she had to fit in. She notes that she “can read quite well in English now and I look at the newspapers every day,” demonstrating her willingness to assimilate to her new nation.

GUIDELINES FOR DISCUSSION PARTICIPATION: Over the term you will discuss the experiences of people in the past. You should make direct reference to the source or sources by author, use some of the words from the sources, place the people in their historical context, and show understanding of the lived experiences of the people in the sources. Unlike other work in this class, discussion comments may be written in first person.

Learning Outcome addressed: (4) Show historical perspective or empathy.

Historical Perspective/Empathy:

By developing an appreciation of how others see, and saw, the world, we gain range, depth, and openness in our thinking. This is empathy, and it means to understand people in the past on the terms that come from the conditions in which they lived. You should be able to explain the lived experiences, decisions, and actions of people in a specific historical and social context. And you should be able to demonstrate understanding of how people in the past thought, felt, made decisions, acted, and faced consequences.

Empathy doesn’t mean sympathy; you don’t have to agree with historical actors. It means that you understand “where they are coming from” even if you find their ideas, words, and actions repugnant. As the writer Sisonke Msimang said recently, “We can't afford to ignore the protagonists we don’t like.” The past includes many stories, and we can’t accept only those that confirm our world view. In the words of novelist Chimamanda Ngozi Adichie, “Many stories matter. Stories have been used to dispossess and to malign, but stories can also be used to empower and to humanize. Stories can break the dignity of a people, but stories can also repair that broken dignity.”

In 1964, the great American writer James Baldwin said, “You think your pain and your heartbreak are unprecedented in the history of the world, but then you read. It was [writers of the past] who taught me that the things that tormented me most were the very things that connected me with all the people who were alive, or who ever had been alive. Only if we face these open wounds in ourselves can we understand them in other people.” Baldwin’s message applies clearly to reading history and the stories of the past. When we read the stories of people in the past we can see what they faced and home they coped. This is empathy.

How to Participate in Discussions: Use this list to check your work.

· 1. Post a coherent original comment of about 150 words for each discussion by the due date.

· 2. Show historical perspective or empathy as explained above.

· 3. Post thoughtful responses to two classmates’ posts in each discussion within a day or two of the due date.

Exceeds Satisfactory

· 4. Participate significantly more than required.

Example of a one-paragraph informal comment for discussion:

Immigrants had a difficult time when they came to America. I can see that both Chinese and Jewish immigrants faced discrimination even though they came here to have a better life. Mary Tape just wanted to send her kids to good schools, but when she did they were “hated.” And Jews came from Russia but said “they were safer from assault and insult in that country than they are on the streets of Chicago.” Maybe it was because they were both seen as “different” than the white, Anglo, Christian Americans who were already in America. Both groups probably set themselves apart from society by living in neighborhoods where there were others like them. I can see that in the article by Jacob Riis. He showed how New York was divided up into these little communities of immigrants. That was probably more comfortable for them and gave them access to things that they might not find outside their own community, so it was understandable. Maybe that’s true for all of the United States at that time.

Example of an informal reply to a classmate:

You said in your post that immigrants should “mix-in” with the American community. My own grandparents came from Italy and had to make serious adjustments to life in America. They lived in the Italian neighborhood that helped them adjust. Maybe that’s why some people resented the immigrants; they were seen as different or people who set themselves apart from the “Americans.”

Part I (1870s to ca. 1900)

ASSIGNMENT 1: Answer the questions outside of Canvas. Save your responses. Submit on Canvas before the deadline on the Class Sc h edule.

1a. Write a statement characterizing this period based on the essay by Richard White below. Follow closely the Guidelines for Characterizing Context.

1b. Identify the five to seven most significant features of the period, based on White’s essay. Follow closely the Guidelines for Describing Features.

● Richard White. “The Rise of Industrial America, 1877-1900.” The Gilder Lehrman Institute of American History 49 W. 45th Street, 6th Floor · NYC, NY 10036 (646) 366-9666 © 2009–2014 All Rights Reserved. [https://www.gilderlehrman.org/]

When in 1873 Mark Twain and Charles Dudley Warner entitled their co-authored novel The Gilded Age, they gave the late nineteenth century its popular name. The term reflected the combination of outward wealth and dazzle with inner corruption and poverty. Given the period’s absence of powerful and charismatic presidents, its lack of a dominant central event, and its sometimes tawdry history, historians have often defined the period by negatives. They stress greed, scandals, and corruption of the Gilded Age.

Twain and Warner were not wrong about the era’s corruption, but the years between 1877 and 1900 were also some of the most momentous and dynamic in American history. They set in motion developments that would shape the country for generations—the reunification of the South and North, the integration of four million newly freed African Americans, westward expansion, immigration, industrialization, urbanization. It was also a period of reform, in which many Americans sought to regulate corporations and shape the changes taking place all around them.

The End of Reconstruction

Reforms in the South seemed unlikely in 1877 when Congress resolved the previous autumn’s disputed presidential election between Democrat Samuel Tilden and Republican Rutherford B. Hayes on the backs of the nation’s freed blacks. A compromise gave Hayes the presidency in return for the end of Reconstruction and the removal of federal military support for the remaining biracial Republican governments that had emerged in the former Confederacy. With that agreement, Congress abandoned one of the greatest reforms in American history: the attempt to incorporate ex-slaves into the republic with all the rights and privileges of citizens.

The United States thus accepted a developing system of repression and segregation in the South that would take the name Jim Crow and persist for nearly a century. The freed people in the South found their choices largely confined to sharecropping and low-paying wage labor, especially as domestic servants. Although attempts at interracial politics would prove briefly successful in Virginia and North Carolina, African American efforts to preserve the citizenship and rights promised to black men in the Fourteenth and Fifteenth Amendments to the Constitution failed.

The West

Congress continued to pursue a version of reform in the West, however, as part of a Greater Reconstruction. The federal government sought to integrate the West into the country as a social and economic replica of the North. Land redistribution on a massive scale formed the centerpiece of reform. Through such measures as the Homestead and Railroad Acts of 1862, the government redistributed the vast majority of communal lands possessed by American Indian tribes to railroad corporations and white farmers.

To redistribute that land, the government had to subdue American Indians, and the winter of 1877 saw the culmination of the wars that had been raging on the Great Plains and elsewhere in the West since the end of the Civil War. Following the American defeat at the Battle of the Little Bighorn the previous fall, American soldiers drove the Lakota civil and spiritual leader Sitting Bull and his followers into Canada. They forced the war leader Crazy Horse to surrender and later killed him while he was held prisoner. Sitting Bull would eventually return to the United States, but he died in 1890 at the hands of the Indian police during the Wounded Knee crisis.

The defeat of the Lakotas and the utterly unnecessary Nez Perce War of 1877 ended the long era of Indian wars. There would be other small-scale conflicts in the West such as the Bannock War (1878) and the subjugation of the Apaches, which culminated with the surrender of Geronimo in 1886, but these were largely police actions. The slaughter of Lakota Ghost Dancers at Wounded Knee in 1890 did bring a major mobilization of American troops, but it was a kind of coda to the American conquest since the federal government had already effectively extended its power from the Atlantic to the Pacific.

The treaty system had officially ended in 1871, but Americans continued to negotiate agreements with the Indians. The goal of these agreements, and American land policy in general, was to create millions of new farms and ranches across the West. Not satisfied with already ceded lands, reformers—the so-called “Friends of the Indians” whose champion in Congress was Senator Henry Dawes—sought to divide reservations into individual farms for Indians and then open up most or all of the remaining land to whites. The Dawes Act of 1887 became their major tool, but the work of the Dawes Commission in 1893 extended allotment to the Creeks, Cherokees, Seminoles, Chickasaws, and Choctaws in Indian Territory, which became the core of the state of Oklahoma. Land allotment joined with the establishment of Indian schools and the suppression of native religions in a sweeping attempt to individualize Indians and integrate them one by one into American society. The policy would fail miserably. Indian population declined precipitously; the tribes lost much of their remaining land, and Indians became the poorest group in American society.

Immigration

Between 1877 and 1900 immigrants prompted much more concern among native-born white Americans than did either black people or Indian peoples. During these years there was a net immigration of approximately 7,348,000 people into the United States. During roughly the same period, the population of the country increased by about 27 million people, from about 49 million in 1880 to 76 million in 1900. Before 1880 the immigrants came largely from Western Europe and China. Taking the period between 1860 and 1900 as a whole, Germans comprised 28 percent of American immigrants; the British comprised 18 percent, the Irish 15 percent, and Scandinavians 11 percent. Together they made up 72 percent of the total immigration. At the end of the century, the so-called “New Immigration” signaled the rise of southern and eastern Europe as the source of most immigrants to America. The influx worried many native-born Americans who still thought of the United States as a white Protestant republic. Many of the new immigrants did not, in the racial classifications of the day, count as white. As the century wore on, they were increasingly Catholic and Jewish.

Immigrants entered every section of the country in large numbers except for the South. They settled in northeastern and midwestern cities and on western and midwestern farms. The Pacific and mountain West contained the highest percentage of immigrants of any region in 1880 and 1890.

The immigrants forged networks that shaped how and where they migrated and the kinds of communities they established. Chain migrations linked migrants to prior migrants. Early arrivals wrote home to bring family, friends, and neighbors to the United States. Over large swaths of Minnesota, the Dakotas, and elsewhere German was the primary language of daily life. Tensions between immigrants and the native born over the language to be spoken in public schools, Sunday closures of businesses (sabbatarianism), and temperance reform often put cultural issues and practices at the center of local and state politics.

Taken together, immigration and the end of Reconstruction triggered an anti-democratic movement to restrict access to the ballot box. By the 1870s proponents of restricting suffrage, having defeated an early push for women’s suffrage, were calling democracy a mistake. They advocated restrictions on voting as a way to check corruption, elevate political culture, and marginalize those—they had in mind immigrants and blacks—whom they thought incapable of meeting the obligations of republican politics. They sought political changes that would make it far more difficult for the poor and immigrants to vote. Over time, through poll taxes, residence requirements, literacy requirements, and more, they would succeed. The mass politics and high voting rates characteristic of late nineteenth-century America would not outlive the era.

Attempts to restrict suffrage were part of a strong political and social backlash against immigrants that developed over the course of the century. The United States welcomed immigrants because they were essential to its growing economy, but nativists opposed immigrants as antithetical to American culture and society. They thought of immigrants as exotic and inassimilable. In certain situations, however, nativists had allies who were immigrants or the children of immigrants. Workers, both immigrant and native born, often feared that corporations were using contract labor—workers recruited abroad at lower wages than those paid American workers—to undermine American working conditions and the American family, which they defined as a working man whose wife maintained the home. They opposed certain kinds of immigration. One of the forgotten reforms of the period, the Foran Act of 1885, outlawed contract labor, but the law proved difficult to enforce.

Alliances of some native-born Americans with some immigrants against other immigrants proved most effective in the case of the Chinese. Roughly 180,000 Chinese immigrated to the United States between 1849 and 1882, and they became the personification of both the inassimilable immigrant and the contract worker. Although the Chinese came as free laborers, they were often branded as coolies: abject semi-slaves, whose low standard of living allowed them to thrive on wages that could not support white families.

Racists had previously claimed that superior Anglo-Saxons would inevitably replace “inferior” races. But in the West, while Sinophobes saw the Chinese as exotic and inferior, they also thought the Chinese would triumph over the supposedly superior white men because they were efficient workers. Immigrants and the native born formed mobs that attacked the Chinese at Rock Springs, Wyoming, in 1885 and expelled them from Tacoma, Washington, in 1885 and Seattle in 1886. Congress passed ten-year restrictions on Chinese immigration in 1882 and 1892 and a permanent exclusion act in 1902. Late in the nineteenth century, those who opposed immigration from Italy, Hungary, and elsewhere compared those groups to the Chinese.

Some immigrants could wrap themselves in the mantle of Americanism if they were “white” and Protestant. Protestant immigrants, particularly Scandinavians and Scots-Irish, joined the American Protective Association in 1887 to restrict Catholic immigration as it rode a larger wave of anti-Catholicism that swept over the country. Aimed initially at Irish and Catholic schools, anti-Catholicism increased its range as new Catholic immigrants began to arrive.

Agricultural, Commercial, and Industrial Development

Although not all of them intended to stay, most immigrants came to the United States for economic opportunity. Cheap land and relatively high wages, compared to their home countries, were available regardless of citizenship. The Homestead Act did not require that settlers filing for land be American citizens, and the railroads not only sold their land grants cheaply, they advertised widely in Europe.

The results of this distribution of fertile and largely accessible land were astonishing. Everything in the late nineteenth century seemed to move faster than ever before. Americans brought more land under cultivation between 1870 and 1900 (225 million acres) than they had since the English first appeared at Jamestown in 1607 (189 million acres). Farmers abandoned small, worn-out farms in the East and developed new, larger, and more fertile farms in the Midwest and West. They developed so much land because they farmed extensively, not intensively. In terms of yields per acre, American farmers ranked far below Europe. Maintaining fertility demanded labor, which was precisely what American farmers were bent on reducing. They invested not in labor but in technology, particularly improved plows, reapers, and threshers. With westward expansion onto the prairies, a single family with a reaper could increase acreage and thus production without large amounts of hired labor. Arable free lands grew scarcer during the 1880s, forcing more and more land seekers west into arid lands beyond the 98th meridian. In many years these lands lacked adequate rainfall to produce crops. “In God we trusted, in Kansas we busted” written on the side of a wagon cover by a family abandoning its homestead summed up the dangers of going too far out onto the semi-arid and arid plains.

The expansion of agricultural lands led to what superficially seems a paradox: the more farmers there were—and the more productive farmers became—the smaller was agriculture’s share of the economy. Farmers had the largest share of the dollar value of American economic output until 1880 when commerce’s 29 percent of the gross national product edged out their 28 percent. In 1890 manufacturing and mining at 30 percent share of the GNP both exceeded agriculture’s 19 percent share. During the same period, the percentage of workers employed in agriculture fell. A majority of the nation’s workers were farmers or farm laborers in 1860, but by 1900 the figure had declined to 40 percent.

Such statistics seemed to reflect a decline in the importance of farming, but in fact, they reflected its significance and efficiency. Farmers produced more than the country could consume with smaller and smaller percentages of its available labor. They exported the excess, and the children of farmers migrated to cities and towns. Where at the beginning of the century exports composed about 10 percent of farm income, they amounted to between 20 and 25 percent by the end of the century. What farmers sold abroad translated into savings and consumption at home that fueled the nation’s industry. Migration from rural to urban areas dwarfed both foreign migration and westward migration. American agricultural productivity allowed it to remain the world’s greatest agricultural economy while it became the world’s largest industrial producer.

The rise of industrial America, the dominance of wage labor, and the growth of cities represented perhaps the greatest changes of the period. Few Americans at the end of the Civil War had anticipated the rapid rise of American industry. For the first time in the nation’s history, wage earners had come to outnumber the self-employed, and by the 1880s these wage earners were becoming employees of larger and larger corporations. As the Massachusetts Bureau of Statistics and Labor declared in 1873, wage labor was universal: “a system more widely diffused than any form of religion, or of government, or indeed, of any language.”[1]

Skilled workers proved remarkably successful at maintaining their position through the 1880s, but they had to fight to do so. The relatively high wages for skilled workers led employers to seek ways to replace skilled with unskilled or semi-skilled workers. Mechanization provided the best tactic for deskilling work and lowering wages. Many of the bitterest strikes of the period were attempts to control working rules and to maintain rather than raise wages. Beginning with the Great Railroad Strike of 1877, through the Great Upheaval of 1886 that culminated in the slaughter at Haymarket Square, then through the Homestead Strike (1892), Pullman Strike (1894), and more, the largest confrontations often involved violence and the intervention by state or federal governments to repress the strikes.

Railroads

Many of these strikes involved the railroads; the whole economy seemed to revolve around the railroads. At the end of the 1870s the railroads renewed their expansion. With a brief break in the 1880s, expansion continued at a reckless pace until 1890. At the end of 1890 more than 20 percent of the 161,000 miles of railroad in the United States had been constructed in the previous four years. By the end of the century the railroad corporations rivaled the United States government in size. In 1891 the Pennsylvania Railroad had 110,000 employees, almost three times the number of men in all the armed forces of the United States. Its capitalization of $842 million was only $150 million less than the national debt. Nationally, 418,957 people worked for railroads in 1880 and nearly 800,000 in 1890: about 3 percent of the entire work force of the nation. By 1900 roughly one-sixth of all capital investments in United States were in the railroads.

The railroads powered the industrial economy. They consumed the majority of iron and steel produced in the United States before 1890. As late as 1882, steel rails accounted for 90 percent of the steel production in the United States. They were the nation’s largest consumer of lumber and a major consumer of coal. They also distributed these commodities across the country.

At times, however, railroads threatened to haul the American economy into the abyss. Rail corporations overbuilt, borrowed recklessly, and were often atrociously managed. They ricocheted wildly between rate wars and the creation of pools to fix prices, and they encouraged other industries to follow. Wheat, silver, timber, cattle, and other commodities flooded the market, sent prices tumbling, and dragged many producers into bankruptcy. The signal of every economic collapse in the late nineteenth century was the descent of railroads and the banks associated with them into receivership.

The Economy

The railroads were typical of the economic contradictions of the era. Over the period as a whole, American industry advanced rapidly. By 1900 the United States had one half the world’s manufacturing capacity. At the end of the century, it had overtaken Great Britain both in iron and steel production and in coal production. The United States made such great gains because it was the fastest runner in a relatively slow race. The entire period from 1873 to the turn of the century became known as the Long Depression in western Europe. The United States grew faster than European economies, although no faster than nations with similar British colonial backgrounds—Australia and Canada. It actually grew more slowly than Argentina. None of these economies, however, were remotely as large.