APUSH, Period: 2
14 January 2013
Chapter 16: Conquering a Continent, 1861-1877:
* Essential Question: What factors helped advance the integration of the national economy after the Civil War? Section 1: The Republican Vision:
* Integrating the National Economy:
* Reshaping the former Confederacy after the Civil War supplemented a Republican drive to strengthen the national economy to overcome limitations of market variations that took place under previous Democratic commands. * Failure to fund internal improvements left different regions of the country disconnected, producing the Civil War, Republicans argued. * During the Civil War and after, the Republican-dominated Congress made strong use of federal power, passing protective tariffs that gave U.S. manufacturers a competitive advantage against foreign firms. * Republican administrations would strengthen the economy through a massive public-private partnership that modern historians argue represents a turn away from a laissez-faire or “hands off” approach of previous administrations towards the economy. * Railroad developments in the United States began well before the Civil War but peaked after the Civil War. By 1900, virtually no corner of the country lacked rail service. * Railroads transformed American capitalism by adopting a legal form of organization, the corporation, enabling them to raise private capital in large amounts. * Along with the transformative power of railroads, Republicans’ protective tariffs also helped build thriving U.S. industries. A Civil War debt of $2.8 billion was erased during the 1880s by a $2.1-billion-dollar income from tariffs. * Fierce tariff debates marked American politics in the 1880s and 1890s. Democrats argued that the tariff had not slowed poverty in the United States. * Protective tariffs had also helped to foster the growth of trusts, giant corporations that dominated whole sectors of the economy and wielded monopoly power. * The rise of railroads and trusts prompted a pushback by companies against new state and federal regulatory laws. In Munn v. Illinois (1877), the U.S. Supreme Court ruled that states possessed the right to regulate businesses, but not at the expense of fragmenting the national marketplace. * In the Southwest, federal courts promoted economic development at the expense of racial justice. Although the United States had taken control of New Mexico and Arizona after the U.S. Mexican War of 1848, much of the land still remained in Mexican American hands by the 1870s. * As the post–Civil War years brought railroads and Anglo-American settlers, Mexican Americans lost 64 percent of their lands through special courts that ruled on land titles. * The Santa Fe Ring was a notorious group of politicians and lawyers who conspired to defraud Mexican Americans of their lands. * After the Civil War, U.S. and European policymakers attempted to transform their economies to the gold standard. But basing money supplies on gold was a divisive issue that framed U.S. politics for a generation. * In 1873, Congress directed the U.S. Treasury, over a six-year period, to retire the greenback paper dollars issued during the Civil War and replace them with notes from an expanded system of national banks. After 1879, the Treasury exchanged notes for gold upon request. * Silver adherents received a modest victory when Congress passed the Bland-Allison Act of 1878, requiring the United States to coin a modest amount of silver. * Republican nationalist policies fostered rapid economic growth in the form of an expansion of telecommunications, corporations, and capital, making the United States a mighty industrial power by 1900.
* The New Union and the World:
* Following the Civil War, the United States achieved greater leverage with foreign nations like Britain. American expansionists expected to add more...