Class Time Line: e-Portfolio Assignment: Chapters 14-20

Economic History of the U.S. Econ 1740

(Changes of Modes of Transportation, Social Changes, Political Changes/ War, Money and Banking
Issues, Technology, Acts/Laws/Court Decisions, Commerce, Other)

1834 Cyrus Hall McCormack - a harvesting machine which put an end to the hand scythe and the one-horse plow.
His reaper machine allowed a much greater amount of work to be accomplished while decreasing the amount of
labor necessary to perform the task.

1840 Wholesaling - Full-service wholesale houses evolved, bringing goods on their own account from
manufacturers and importers to sell to retailers, frequently on credit. This led to the practice of wholesaling to
be performed by successful retailers. Some of the retailers began to fully drop retailing all together.
1848 Cyrus Hall McCormack (continued) - moves his main implement plant to Chicago thereby ensuring a steady
supply of his harvesting machines to the Midwest. By centralizing his plant he permitted the distribution of his
machine to many more farmers. This raised labors productivity dramatically. Although yields per acre changed
very little, mechanization allowed farmers to add more acres to their farms, thus increasing output per farm.

1849 Gold Rush - Gold Rush showed the difficulty of transporting people and goods from place to place, and
established the need for a safe railroad system that could connect to the Pacific Coast. Other forms of transport
were subject to weather, long travel times and danger, or were very expensive.
1850 Railroad Managerial Changes - In response to the unmanageable size and complexity of the railroads, Daniel
McCallum, president of the Erie Railroad, proposed a series of new management principles with wide potential

application. These systems were adopted by other businesses and became routine in virtually all large
businesses.

1857 John Deere - begins mass production of the steel plow. He was annually producing 10,000 steel plows,
eclipsing the iron plow, which had proven ineffectual in the tough clay sod of the prairies. The steel plows
allowed for a much higher rate of output for your average farmer. Between 1860 and 1920, the number of
mouths fed per farmer nearly doubled, freeing labor for industry.
1860 Pro and Anti-Slavery - The Democratic Party splits into pro-slavery and anti-slavery factions, contributing to
the start of the civil war. Abraham Lincoln was able to win the election because of this.
1860 Abraham Lincoln - Abraham Lincoln won the presidential race and is elected president of the United States

Seceding States - On December 20, South Carolina secedes from the union, the first of the eleven states to do
so. This lead to the formation of the Confederacy.

1860 Manufacturing Differences - The value in manufacturing added up to 1.6 billion in the north, while the value
of the south in manufacturing added up to 193 million dollars. There were about three farmers per

manufacturing worker, by 1910 this ratio change to one to one. In conclusion percentage of workers was rising,
from 33 % to 40%.
1861 The Civil War - The Civil War officially begins. The southern and northern states begin fighting against each
other over political matters, most of which are to protect their ideas of slavery.

1860 Financial Panic - A sharp financial panic occurs; with the U.S treasury empty, the banks began to suspended
payments of specie. This started the taxing on personal and business incomes. This also brought greenbacks into
circulation, even though their value was not as high as gold dollars.

1862 Pacific Railway Act - Congress granted Charter of Incorporation to the Union Pacific Railroad, and authorized
them to build a railroad from Iowa to Nevada. Central Pacific, incorporated a year before, was authorized to
build from Sacramento to Nevada. An 1864 act double the land grants and provide second-mortgage bonds.
1862 The Homestead Act - Any head of a family or anyone older than 21 could have 160 acres of public land on the
payment of small fees, the only stipulation was that the homesteader should either live on the land or cultivate
it for five years. (also provided 320 acres to married couples)
1862 Department of Agriculture - Although the Department was created in 1862, it wasnt until 1889 that the
Commissioner of Agriculture gained Cabinet ranking. The Department performed three important functions: 1)
research and development in plant and animal breeding and exploration of new plants; 2) distribution of
agricultural information through publications and public demonstrations; 3) regulation of the quality of
products.

1863 Naval Blockade - This was when northern naval blockade became effective. The south was not allowed to
export goods because the north prevented foreign countries to trade with the South, increasing the Souths
financial difficulties.
1863 National Bank Act- The National Bank Act went into effect: creating new national banking institutions and
bank notes as a form of money. The conversion from state to national banks was at first slow, hence taxes were
imposed in June 1964 2%, in March 1965 the tax was raised to 10%. This led to the majority of state banks
moving to federal jurisdiction. By 1866 fewer than 300 state banks remained in existence.
1862 Greenbacks- Greenbacks were a fiat currency issued by the U.S. Treasury. This currency helped the
government by adding revenue for the government during the war.

1866 Haymarket Riot - On May 4 in Chicago, it began as a peaceful rally in support for an 8 hour work day, but as
police tried to break it up one individual threw a dynamite stick which killed 7 officers and 4 civilians. The
authorities and press demanded action, leading to the deaths of 7 men who were most likely innocent.
1866 Foreign Trade - The first transatlantic cable began operations in 1866 being a rapid improvement in
communication and transportation.

1867 The National Grange of the Patrons of Husbandry - by 1874 had 20,000 local branches and a membership of
nearly 1.5 million. They were the first farm organization of importance, they fought for farmers rights and fought

against unfair business practices. Although the bylaws of the organization strictly forbade political involvement
by the Grangers they still held informal political meetings and worked with reform parties to ensure that
regulatory legislation was passed.
1869 Formation of Standard Oil Company - As demand for goods rose and prices dropped, some small companies
were forced to consolidate into larger units to avoid failure. John D. Rockefeller, a moderately wealthy
businessman in the oil industry, formed a series of partnerships before consolidating them as the Standard Oil
Company.

1869 Joining Railways - May 10th was the joining of the railways at Promontory Summit. President Ulysses Grant
gave the order to drive in the last stake by telegraph, and the blows that drove home the last stake were also
sent by telegraph. The road established a network that revolutionized the settlement and economy of western
American States.
1870 Hygiene Sewage and cleanliness of areas became a big factor at the time. This paid a big part in decreasing
children birth rates in the years leading up to better health care.
1870 Railroad Regulations - first wave of State-level Railroad regulations, due to evidence of discrimination.
farmers in the Midwest blamed much of their financial issues on the Rail, due in part to the high rates.
Regulations were imposed to regulate the rates.
1873 The Timber-Culture Act - Passed to encourage the growth of timber in arid regions, this law made available
160 acres of free land to anyone who would agree to plant trees on 40 acres of it.
1875 Early Business Combinations - Pooling, had become common practice. In Pooling, markets could be divided
on the basis of output (with each producer free to sell a certain number of units) or territory (with each
producer free to sell within his own protected area). Or sellers could form a profits pool, where net income
was paid into a central fund and later divided based on a percentage of total sales in a given period.

1877 The Desert Land Act - This law provided 640 acres at $1.25 an acre and could be purchased by anyone who
would agree to irrigate the land within three years. One serious defect of this act was its lack of a clear definition
of irrigation.
1878 The Timber and Stone Act - This law provided for the sale at $2.50 an acre of valuable timber and stone lands
in Nevada, California, Oregon, and Washington
1878 The Timber-Cutting Act - This law authorized residents of certain specified areas to cut trees on government
lands without charge, with the stipulation that the timber be used for agricultural, mining, and domestic building
purposes.
1879 Retailing - F.W.Woolworth opened retailing stores, buying product from wholesalers and selling individual
items in his store. No single item in his stores had a cost of over a dime. These type of stores led to his success as
a business man, making him a multi-millionaire.

Photographer: J. Edward Bailey III

1887 Federal Regulation - Federal Regulation began with the Act to Regulate Commerce. The Act brought all
Railroads engaged in interstate commerce under federal regulation. This created the Interstate Commerce
Commission, which also required rates to be just and reasonable. ICC was the first permanent federal Regulatory
Agency.
1887 The Dawes Act - Nearly 100 million acres were opened up for purchase from the Indian Territories, ignoring
promises made to the Native Americans.
1890 The Sherman Antitrust Act - in response to accusations of monopolizing in the meatpacking industry, the
Sherman Antitrust Act was passed. It prescribed punishment of a fine, imprisonment, or both for every person
who would monopolize, attempt to monopolize, or conspire to monopolize any part of trade or commerce
among the states.

1890 Sherman Silver Purchase bill - This bill allowed for double the amount of silver purchased monthly by the
secretary of the treasury as defined in the Allison Act. But in 1893, The Sherman Act was repealed.

1890 Filtered Water- Cities began large scale projects on filtered water, along with filtration of the water and
sewer systems. Death rates from cholera, typhoid fever, and gastro-intestinal infections declined.
1891
The General Revision Act - this law repealed measures that had been an open invitation to land fraud,
making it more difficult for corporations and wealthy individuals to steal timber and minerals. One section of the
act also empowered the president to set aside forest reserves. This led to the beginning of land conservation
rather than waste within the United States.
1892 Predatory Pricing of Standard Oil - A journalist named Ida M Tarbell accused Standard Oil of selling kerosene
at a price below the average cost of production of his competitors, forcing them into bankruptcy. This causes the
Supreme Court to order the Standard Oil Trust to be dissolved.

1892 Homestead - Homestead works at Pittsburgh were attempting to oust the alliance of iron and steel workers.
A strike was called because the company refused to agree on wage matter. A friend of Carnegie brought in 300
Pinkerton detectives to resolve the situation. The striking mob won, which caused the states militia to be called
out to restore order. The Union suffered a defeat which ultimately set organization of labor in steel mills back
several decades.
1900 Gold Standard Act - The secretary of the treasury was directed to keep reserve of $150 million in gold, which
was exempt from government expenses. The Gold Standard act allowed for all forms of money to be exchanged
for gold.
1901 Founding of United States Steel Corporation - With a capital stock of more than $1 Billion, United States
Steel was the largest corporation in the world by a substantial margin and controlled 60% of the nations steel
business. While protecting its position in raw materials, the corporate giant was able to prevent price warfare in
an industry typified by high fixed costs.

1901 The Bureau of Forestry - The Bureau was renamed the United States Forest Service in 1905 and led to a
program of scientific forestry, trees were to be continually harvested and sold such that ever-larger future crops
were ensured. It also led to a system of conservation, intending to preserve nature and its resources for the use
of future generations and set the stage for the engineering marvels of the present era.

1910 US is Leading Industrial Power - The factories of the United States were producing goods at nearly twice the
rate of its nearest rival, Germany, and accounted for more than one-third of the worlds industrial production.
Around the same time, the printing, malt liquor, tobacco, and railroad car industries surpassed the production of
flour, woolens, wagons, and leather goods, due to a shift in focus from homemade goods to store-bought, and a
shift from old to new technologies.

1910 Urbanization - Population living in urban centers doubled between 1800-1840, 1840-1860, and 1860-1900.
By 1910, nearly 10% of all population lived in the 3 cities of New York, Chicago, and Philadelphia. Urban areas
became an entrepot for trade and industry. The trade opportunities acted as a magnet to pull more and more
people to urban areas. This was a movement started by the transportation revolution.
1911

Supreme Court Monopoly Rulings - The Supreme Court found that unlawful monopoly power existed and
ordered the dissolution of both the Standard Oil Company and the American Tobacco Company. However, the
successor companies to both still managed to maintain a tight oligopoly in their industries.

1913 Composition of imports and exports - By 1900 the US had become the leading manufacturing country in the
world. By 1913 the US was the producer of 65% of the worlds petroleum, 56% of the copper, 39% of coal, 37%
of zinc, 36% of iron, and 34% of the lead.
1914 First Car Assembly Line - Henry Ford devised the first progressive, moving assembly-line systems for large,
complex products. Due to this, a chassis that had formerly been assembled in 12 hours could be put together
along a 250-foot line in a little over one and a half hours.

1914 The Federal Trade Commission - During Woodrow Wilsons first term, Congress passed the Clayton Act,
which was intended to make existing antitrust laws less ambiguous. The Federal Trade Commission (FTC) was
established to enforce the act. The FTC could also carry out investigations, and issue cease-and-desist orders on
the behalf of an injured party.

1919 Metalworking Innovations - Electrically driven shears allowed the cutting of steel slabs 12 inches thick and 44
inches wide, and huge presses could stamp out parts of automobile bodies rapidly enough to make mass
production possible. The industry also played a central role in diffusing technical knowledge from its point of
origin to other sectors of the economy.

1920 Immigrants - Immigrants accounted for 33 percent of railroad laborers, 22 percent of railroad foremen, 33
percent of jewelers, and 17 percent of policemen. More generally, immigrants accounted for 25 per- cent of the
labor force in manufacturing, 35 percent in mining, 18 percent in transportation.
1920 Department Stores - Cities with small and/or large populations had department stores. Now with numerous
clerks and large stores, the price of all goods was the same for all the customers. Negotiating with merchants
was now a thing of the past.
1920 Advertising - By 1920, advertisement was a billion dollar industry. Advertisements helped many companies
to attain success in size and capital. The larger the growth of the company was often times largely relative to its
growth in national advertising.