Tuesday, January 1, 2019

Historical Look: The Gilded Age

So what began with a fascination with the life of Walt Disney, then inspired me to a study of American industrialists, has now lead to an interest of the entire historical period known as the Gilded Age. This is an era of American history (from the 1870s to the 1900s) I have always been fascinated with, however have yet to make a deep dive into. Well now with the free time granted to me by the holidays and my recent inspirational interest of American industrialists, I am going to study the era in full. This period was essentially an economic boom that transformed America to become one of the most powerful economies in the world.

First to set the stage, the world began to experience an Industrial Revolution based out of Great Britain in the 1830s and 1840s that spread throughout Europe and into America. This was a new age of mechanical innovations, steam engines, iron production, coal production, textile production, chemical advancements, and so forth. The world was experiencing a boom of technology unlike anything  before which also lead to a boom in economy. As a result of this came a golden age experienced by various countries such as the Victorian Age of Britain, the German Empire under Otto Van Bismark, and the Belle Epoque of France (of which I have already written about here).

The United States however was still a young country during this time, and before they could prosper in this industrial renaissance, they first had to resolve their own political turmoils. Due to their Civil War of the 1860s, and a Reconstruction Period in the 1870s, the United States was somewhat late to the global industry boom. However that still did not stop them from building a transcontinental railroad during this war time which would ultimately connect the vast resources from the east to the west coast of America.

By the 1870s as the Reconstruction of the south was coming to an end, the American industry of the north and western parts were finally starting to boom. It began with the booming Railroad industry, that brought about new needs for oil, steel, financing, mining, electricity, and numerous other new markets that began to boom. It did not take long for the United States to become the new center of global commerce which brought on a massive wave of immigration. This pivotal period of American innovation and business, lead to a Second Industrial Revolution, and was a golden era for the American economy, which Mark Twain fittingly called, "The Gilded Age".


Industrial Advancements

I believe there were two defining reasons for this American economic boom. First was the result of industrial-mechanical advancements which I will list here. And second was the ambitious business-men who were able to capitalize on America's free market economy which I will list in the next column. These industrial innovations came from both Europe and America, however it seems clear that America was able to take the lead during this time. From 1860 to 1890 over 500,000 patents were issued for new inventions in America (ten times what was issued in the prior 60 years).


  • Railroads: Perhaps the biggest key to the Gilded Age was the boom of the railroad industry, most notable the completion of the Transcontinental Railroad in 1867. Soon railroad companies and tracks were spanning in every direction. This industry was key in connecting business, shipping freight, and also a very effective means of transportation.  
  • Steel: One of the key inventions that made steel production more efficient during this time was the Bessemer Process. Thru the use of a giant metal converter iron could be melted and transformed into steel in a matter of 10 minutes. This saved time and labor and gave way to the mass production of steel. 
  • Oil: The Petroleum Industry began to take off in the 1850s as a valuable resource for fuel and lubrication. The Oil Boom in America began out of Pennsylvania in 1859 where Edwin Drake introduced the first modern oil well. Also the value for oil increased even more when kerosene was discovered as a more efficient means to lighting. By the late 1860s oil drills and refineries were sprouting everywhere. It did not take long for the Petroleum Industry to surpass the railroad industry as the top market in the nation. Standard Oil became the first major monopoly in the country by using aggressive pricing and vertical integration management to control every aspect of the business. 
  • Electricity: One of the biggest technical breakthroughs of the 19th century was the invention of the light bulb which soon became the basis of electrical lighting and power throughout urban cities. This new market eventually began to compete with the need for kerosene. Both direct current and alternating current became effective means of delivering electrical flow. 
  • Finance: With the boom of the railroad industry came a need for private financial funding. The majority of this was done thru loans, bonds, and investments by wealthy financiers, not associated with the government. This brought on a major boom of finance and banking based out of New York City in the 1860s. 
  • Telecommunications: By the 1830s the Telegraph had become an effective means of communication by transmitting electrical signals over a wire. However the invention of the telephone by Alexander Graham Bell in 1876 made communication all the more clear and efficient. The establishment of Western Union and the American Telephone & Telegraph Company (AT&T) improved America's business and communication network.
  • Automobiles: In 1881 Karl Benz introduced the first electrical automobile out of Germany. This new means of transportation was at first only a luxury enjoyed by the wealthy, however at the turn of the century it became available to the general public thanks to Henry Ford's mass production of the Model T. 



    Key American Inventors 

    While the Industrial Revolution was born out of England with numerous British and European inventors there was also a significant amount of American inventors during this time. Many of these American inventors were able to partner with business moguls to establish booming new businesses. For example Edison's work on the light bulb and direct current gave way to General Electric while Tesla's work on alternating current gave wave to Westinghouse Electric. Alexander Graham Bell's first audio transmitting telephone gave way to one of the most profitable telecommunications company in the world of AT&T. 
    • Thomas Edison: Perhaps one of the most renown American inventors in history, he is credited with over 300 patents throughout his lifetime that played a crucial role in the industrialization of America. His most significant inventions were that of the light bulb, the phonograph, and the motion picture camera and developed new industries such as electricity, mass communication, sound recording, and motion pictures. 
    • Nikola Tesla: He is often regarded as Thomas Edison's arch-rival yet also played a very significant role in the development of electricity. He is best known for his development of alternating current which brought about numerous inventions and breakthroughs in wireless power and communications. Along with his various patents on alternative current mediums, he also is credited with the invention of radio and the remote control. 
    • Alexander Graham Bell: He was the inventor of the telephone in 1876 and founder of AT&T. His invention to transfer sound over wire completely changed the telegraphic mass communication industry during this age. He also made contributions to other fields such as wireless phones, hydroplanes, aeronautics, and his invention of the metal detector to find the lost bullet in President James Garfield's body. 
    • Samuel Morse: He is credited with the invention of the telegraph in the 1830s and 1840s which became an effective new way to communicate thru electrical signals. By the Gilded Age numerous massive telegraph companies began to boom such as Western Union and the Atlantic Telegraph Company. 
    • Elias Howe: He is best known for his invention of the sewing machine in 1846, which played a significant role in the textile industry as well as an effective home tool for women during the Gilded Age. 
    • Cyrus McCormick: He is credited with the invention of the mechanical reaper in 1834 which made it much more efficient to harvest crops. The significance of this machine happened slowly, however at the onset of the Gilded Age it became a vital tool for the farming industry.  
    • Charles Goodyear: He introduced a new chemical process of vulcanizing rubber in 1840, which brought on a boom in the rubber industry during the Gilded Age. His discovery made rubber a common feature for automobile tires and shoes. Although he died before he could realize the significance of his invention, his name was used for the iconic American Goodyear Tire and Rubber Company in 1898 which still thrives to this day.
    • Christopher Latham Sholes: He is credited with the first commercial success of the typewriter much thanks to his revolutionary QWERTY keyboard design. The machine was eventually bought by Remington and Sons and became a very sought after device for business and private owners alike. 
    • Orville and Wilbur Wright: These brothers from Ohio are credited with designing the world's first successful airplane using technology of the Gilded Age. They implemented their aeronautic designs from earlier concepts of bicycles, motors, and machinery. Their major breakthrough came in 1903 with their groundbreaking Wright Flyer, that utilized three axis control to maintain balance and steering capabilities. This design in flight dynamics became a key contributor to the aviation industry that boomed during the Progressive Era. 


    Key American Business Magnates

    The Gilded Age saw of boom of industry and wealth unlike America had ever seen before. Thanks to America's unregulated free market economy, various entrepreneurs were able to climb to the top of their respected industry. These business magnates mentioned below, were considered titans of industry. They were also often labeled as robber barons for their ruthless business tactics. Many of America's most wealthy businessman in history came during this period.


    • Cornelius Vanderbilt: He was one of the first major industrialists of the Gilded Age, who established a railroad empire that brought him great fortune. His New York Central Railroad and Grand Central Depot became the undisputed leaders of the railroad industry that stirred the American economy.  
    • John D Rockefeller: He became a titan of the oil industry thru his early control of the refinement process. Thru vertical integration Rockefeller was able to monopolize the petroleum market and Standard Oil became the most profitable company in American history. 
    • Andrew Carnegie: He was a Scottish immigrant who was able to capitalize on the mass production of steel using the breakthrough Bessemer Process. His steel company quickly became one of the largest and most sought after product for railroads, bridges, machines, skyscrapers, and tools. 
    • JP Morgan: He was one of the lead financiers of the Gilded Age, having come from a wealthy banking family. His key investments were in backing Thomas Edison's light bulb, the establishment of General Electric, and especially his massive buyout of Carnegie Steel to establish US Steel(the largest business takeover and first billion dollar company in history).   
    • George Westinghouse: He was an inventor and entrepreneur first known for his breakthrough invention of the railway air brakes. He later played a pivotal role in the booming electricity market when he financed Nikola Tesla's alternating current experiments. The Westinghouse Electric Company became the main competition of General Electric.  
    • Jay Gould: Alongside Cornelius Vanderbilt he was one of the most iconic railroad business magnates of the era. He is also known for making scandalous partnerships with New York businessmen and politicians such as William "Boss" Tweed of Tammany Hall.
    • James J. Hill: He was yet another significant railroad businessman during the Gilded Age, managing the Great Northern Railway. Throughout his career he became known as an empire builder for his vast network of railroad companies he built in the northern regions of America.
    • Henry J Heinz: He established one of the largest food companies during the 1840s, and is often credited with the invention of ketchup. By the onset of the Gilded Age his HJ Heinz Company was producing over 60 food products such as canned beans, mushrooms, soup, peanut butter, pickles, olives, mayonnaise, mustard, and of course ketchup to name a few. 
    • Ezra Cornell: He was a businessman who was able to partner with inventor Samuel Morse to establish the first major telegraph company, Western Union. He also established the Ivy League Cornell University in 1868. 
    • Cyrus West Field: He was a financier and businessman who founded the Atlantic Telegraph Company, which became the 2nd largest telegraph business during the Gilded Age, second only to Western Union.
    • George Eastman: He was an inventor and entrepreneur who brought photography to the mainstream thru his application of roll film and establishment of Eastman Kodak Company in 1892. He was also an early pioneer in motion pictures and the film industry. 
    • George Pullman: He was an industrial developer and entrepreneur who introduced the railroad sleeping car in 1864 as a more effective means of passenger service. The sleeping car was a more affordable and luxurious coach for travelers and became a common feature of most rail companies. Pullman is best remembered during the Gilded Age for his company town of Pullman outside of Chicago that housed his workers and his industry. In 1894 as the rail market began to decline a nationwide railroad strike took place and the town of Pullman took center stage for labor union upheaval. 30 workers were killed during the Pullman Strike, making it one of the most violent union strikes in history. 
    • Marshall Field: He was an entrepreneur and founder of Marshall Field and Company one of the largest department stores during the Gilded Age. His business was based out of Chicago and excelled for it's high quality and customer service. He achieved great wealth during his career and helped found numerous Chicago landmarks such as the Field Museum of Natural History and the University of Chicago.   
    • William Randolph Hearst: He became a newspaper business titan during the 1880s and 1890s. He inherited his father's publishing business and turned it into one of the most successful newspaper publications in New York City. He was able to make his New York Journal publication the most sought after newspaper in the city due to his innovative yellow journalism tactics. This tactic incorporated exaggerated headlines, investigative reports, scandals, tabloids, and sensationalism. Thru this effective news style, Hearst was able to span his publication empire across the country with over 30 different news agencies in various cities. He also later expanded to magazine production and by the turn of the century ran the largest publication businesses in the world.  

    National Politics

    By 1856 the United States had evolved into a new political era known as the Third Party System where the two major political parties were the Democrats and the Republicans. The Whigs had  essentially merged with the Republican Party and were on the right side of history during the Civil War when they saved the union and abolished slavery. The Democrats were essentially the Southern States in support of more traditional values and a free market society (These Political parties would eventually swap their ideals in the 1900s as the Democrats began to support new progressive ideals while the Republicans became in support of conservatism).

    Following the Civil War and Reconstruction Era the government began to take a more subdued role to the booming industrialists of the era. The new issues of the time became business regulation, prohibitionists, labor unions, and homestead land expansion to the west. However many of the rising politicians of this time were paid for by big business contributions. Both Democrats and Republicans established political machines to canvass support and funds from big business donations. However this ultimately meant that the chosen candidate would be under the control of the business magnate. (This practice of buying out politicians thru campaign funding still exists today).

    One of the most notorious and perhaps corrupt of the political machines was Boss William Tweedy (which I've written about here; New York City Draft Riots). His Tammany Hall in New York City became one of the most influential political machines of the Gilded Age, and a contributing factor to the rise of the Democratic Party. He was able to establish dominance in New York City thru a total spoils system of corrupt dealings with businessmen and government officials alike. He also took advantage of the immigration wave, most notably Irish workers, to build his political support.

    Following the assassination of Abraham Lincoln, it is fair to say that the next 8 presidents (both Republican and Democrat alike) were very ineffective leaders. History often refers to this string of presidents as the "forgettable presidents" (Beginning with Andrew Johnson, Ulysses S. Grant, Rutherford B Hayes, James A Garfield, Chester A. Arthur, Grover Cleveland, Benjamin Harrison, and William McKinley).These presidents oversaw a prosperous time of peace and economic boom, however they were merely under the shadow of the titans of industry who were the ones building America as a world power.

    It was not until the turn of the century that the government began to challenge the big business control. Grover Cleveland was one of the first notable presidents to fight corruption, patronage, and bosses such as William Tweedy. However the Panic of 1893 and the Pullman Strike of 1894 completely tarnished his new democratic ideals. William McKinley's Republican victory in 1896 is often considered the start of the Fourth Party System of politics. Following his assassination in 1901, Theodore Roosevelt seceded him as one of the greatest presidents since Lincoln. He brought on a wave of business regulation that historians consider the end of the Gilded Age and the start of the Progressive Era.


    Art and Literature

    This age of industrial innovation did not only benefit the big businesses yet also society as a whole. Standards of living were significantly improved during these days and the concept of leisure became more commonplace. People were able to enjoy new inventions such as the light bulb, the sewing machine, the camera, and so forth. World Fairs and expositions began demonstrating groundbreaking inventions as well as iconic architecture. It was a golden age of the arts, music, and literature.

    The father of American literature, Mark Twain, prospered during this age with numerous publications that made him famous. His two most famous works were The Adventures of Tom Sawyer released in 1876 and The Adventures of Huckleberry Finn released in 1885. Both these books became popular demonstrations of rural life in America at the time. Mark Twain amassed great wealth and fame during his lifetime from these books and lectures, however he was ultimately against the greed of big business. His lesser known novel in 1873, The Gilded Age: A Tale of Today demonstrated the country's new standard of greed and political corruption which eventually became the name of this era.

    Painting was also experiencing a renaissance during this age, most notably out of Europe with the rise of Impressionism. While the United States, Germany, and England became centers of booming industry, France became the center of booming art and culture that brought on the Belle Epoque. Some of the greatest artists in history such as Claude Monet, JMW Turner, Renoir, and Van Gogh lived during this era. American artists did not so much take on after the impressionist movement however did partake in the realism style. Notable American painters of this time were Thomas Eakins, Winslow Homer, and John Singer Sargent.

    Photography and Motion Pictures also became more common place during the Gilded Age thanks to the accessible distribution of the Kodak camera. In 1878 English immigrant Eadweard Muybridge introduced a groundbreaking series of photos in motion, known as the Horse in Motion, which became one of the first recorded instance of motion pictures. Few years later Thomas Edison made notable improvements to the concept and introduced America's first studio, "Black Maria" in 1893. The Motion Picture industry would eventually begin to take flight in the early 1900s. 

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