Whaples, R. American Economic History since the Civil War
SYLLABUS
HISTORY 438
AMERICAN ECONOMIC HISTORY SINCE THE CIVIL WAR
Spring 1991
Robert Whaples
Office: 385 Holton
Office Hours: MW 2:30
229-5211
"Economic history focuses on two main issues: one is the economic
growth, stagnation, or decline of a society; the other is what
happens to people within the society in the course of such growth,
stagnation, or decline." - D. North
In History 438 we will try to explain the economic forces
which determined the well being of ordinary people in the years
between the Civil War and the present.
Instead of spot-lighting the Boy Orator of the River Platte
(Bryan), we'll decide what the economic grievances of the Populists
were all about and examine the effect of government regulation on
the "Octopus" railroads.
Instead of focusing on the battles between Andrew Johnson and
the Radical Republicans or the Compromise of 1877, we'll look at
what actually happened to the economic well being of blacks upon
emancipation and into the twentieth century.
Instead of dwelling on the dramatic wheeling and dealing of
the "Robber Barons," we'll examine the real changes in the economy,
technology, and transportation which led to the emergence of giant
corporations.
Instead of limiting our view of labor markets by focusing on
dramatic strikes, we'll also examine the forces behind the ebb and
flow of unions' power, and the forces which made American workers'
lives so much more livable as the twentieth century has progressed.
Instead of ignoring the economic role of women, children, and
the elderly, we'll study the importance of the "family" economy,
the changing role of women in the economy, the withdrawal of
children from full-time employment, and the growth of retirement
for older people.
Instead of focusing on the alphabet soup agencies of FDR,
we'll try to explain the forces which threw one-third of American
workers out of work during the Great Depression and determine if
New Deal policies worked to alleviate these hard times. Readings:
These required texts are available at the UWM Bookstore and
Follett's:
Melvyn Dubofsky, Workers and Industrialization
Peter Fearon, War, Prosperity and Depression: The U.S.
Economy, 1917-1945.
Robert Higgs, Competition and Coercion: Blacks in the American
Economy, 1865-1914.
Edward Kirkland, Dream and Thought in the Business Community,
1860-1900.
Glenn Porter, The Rise of Big Business, 1860-1910.
Gavin Wright, Old South, New South.
In addition, there are required readings in a course pack which is
available at Clark Graphics, 2915 N. Oakland Avenue (just North of
Locust St.).
Grades:
Final Exam- 30%
Three to Four Open-Book Quizzes- 20%
Two Papers- 30%
Oral Presentation- 15% (see attached)
Class Participation- 5%
Attendance is, of course, mandatory. Although I will not take
attendance you will be subject to pop quizzes and will be graded
for class participation.
Assignments will not be accepted after the due date, since they
will be the focus of our discussion on the due date.
If you are a student with a disability, please feel free to contact
me early in the semester for any help or accommodations which you
may need. Outline of course:
The Growth of the American Economy: An Overview of Patterns and
Causes
Railroads and the American Economy
What is a Transportation Revolution?
*Lee and Passell, pp. 274-291
Why Were the Populists So Mad?
*Lee and Passell, pp. 292-301
*Mayhew, "A Reappraisal of the Causes of Farm Protest"
Was Railroad Regulation Good for the Public?
*Perkins and Walton, "Regulating the Railroads," pp. 159-
164.
The Economic History of Black Americans since the Civil War
*Wright
*Higgs
The Economic Legacy of Slavery and the Opportunities of Freedom
Southern Farmers, Landlords and Storekeepers
Segregation and Discrimination
*Roback, "The Political Economy of Segregation: The Case
of Segregated Street Cars"
Progress into the Twentieth Century
The Rise of Big Business
What is Big Business and Why Did it Arise?
*Wright, "Origins of American Industrial Success, 1879-
1940"
*Kirkland
*Porter
The Evolution of Labor Markets
A Brief History of Organized Labor
*Dubofsky
Why Have Good Jobs Replaced Bad Ones?
*Fishback, "Did Coal Miners "Owe Their Souls to the
Company Store"?"
The Evolution of the Family Economy: Women Enter the Labor Force
while Children and the Elderly Exit
*Goldin, "The Changing Economic Role of Women"
*Fuchs, "Women's Quest for Economic Equality"
Were Immigrants Uprooted or Transplanted?
The Great Depression and the New Deal
What Caused the Great Depression?
Was the New Deal a Good Deal?
*Fearon CLASS PRESENTATIONS
What individuals have had a major influence on the shape of the
American economy?
For your subject take about 15 minutes:
1. Open with a brief biographical sketch.
2. Focus on your subject's contribution to the American economy.
3. Close by summarizing how she or he does or does not exemplify
the themes of the section (i.e. the rise of big business and modern
business practices; the ebb and flow of union power; the increased
role of the government in the economy).
Please do not go over 15 minutes. As Shakespeare said, "Brevity
is the soul of wit."
The Giants of Business and Industry
Philip Armour (meat packing)
*Andrew Carnegie (iron and steel)
James Buchanan Duke (tobacco)
George Eastman (cameras)
*Henry Ford (autos)
Henry Clay Frick (coal, coke, and steel)
Elbert Gary (steel)
*Jay Gould (railroad financier)
James J. Hill (railroads in the Northwest)
Samuel Insull (electrical power)
*Cyrus McCormick (agricultural implements)
*J.P. Morgan (banking)
Allan Pinkerton (industrial intelligence)
Henry Poor (market information)
George Pullman (railroad sleeping cars)
*John D. Rockefeller (oil)
Alfred Sloan (autos- GM)
Charles Schwab (steel)
Frederick Taylor (scientific management)
William Vanderbilt (railroad magnate)
George Westinghouse (inventor- railroads and electricals)
Weyerhauser family (lumber) Titans of Organized Labor
*Eugene V. Debs- Railroad labor leader and Socialist candidate
Elizabeth Gurley Flynn- labor radical
*Samuel Gompers- founder and long-time leader of the AFL
William Green- Head of the AFL, 1924-52
"Big Bill" Haywood- Head of IWW
Alice Henry- journalist, educator, trade union leader
Sidney Hillman- Amalgamated Clothing Workers of America
*"Mother" Jones- labor organizer and "hell raiser"
*John L. Lewis- Leader of the CIO and United Mine Workers
George Meany- Head of the AFL-CIO
John Mitchell- United Mine Workers
Philip Murray- Organizer of the Steelworkers, president of the CIO
*Terrence V. Powderly- Head of the Knights of Labor
A. Philip Randolph- Brotherhood of Sleeping Car Porters and black
leader
Walter Reuther- Leader of the CIO and United Auto Workers
Rose Schneiderman- Women's Trade Union League
William Sylvis- National Labor Union
Keepers of Leviathan
*Jane Addams- Social Reformer, founder of Chicago's Hull House
Bernard Baruch- Wall Street speculator and wartime Czar of the US
economy
*Louis Brandeis- Advocate of government regulation and Supreme
Court Justice
John R. Commons- Professional Economist and architect of labor
legislation
Marriner Eccles- Head of the Federal Reserve and leading advocate
of Keynesianism
Henry George- Reformer, Single-Tax Advocate
Alice Hamilton- Expert on Industrial Diseases
*Herbert Hoover- Secretary of Commerce and President
Harry Hopkins- Minister of New Deal relief
Hugh S. Johnson- The General behind the Blue Eagle of the NIRA
Florence Kelley- Head of the National Consumers League
Ralph Nader- Consumer Advocate
*Frances Perkins- FDR's Secretary of Labor
Francis Townsend- Leader of the push for Social Security
Rexford Tugwell- New Deal Brain Trust leader and advocate of
national planning
Frank Walsh- Commission on Industrial Relations and National War
Labor Board
* = People for whom it will be easiest to locate material.
Please come to me for any help you need in finding sources. American Economic History
First Paper
Turn in a 4 to 6 page, typed, well-organized, tightly-reasoned,
finely crafted essay that answers these question: Why did it take
so long for the South to rise again economically after the Civil
War and how has it become the fastest growing part of the country
since World War II? Discuss the South as a whole, but be careful
to compare it with the rest of the country and to emphasize
differences between blacks and whites.
Readings:
Gavin Wright, Old South, New South.
Robert Higgs, Competition and Coercion.
Jennifer Roback, "The Political Economy of Segregation: The Case
of Segregated Street Cars"
Paper is due: March 4
Late penalty is 5 percent of the grade per day.
Failure to type penalty is at least 10 percent of the grade. American Economic History
Second Paper
Turn in a 4 to 6 page, typed, well-organized, tightly-reasoned,
finely crafted essay.
The period between the Civil War and World War One is often seen
as one in which American businessmen and industrial workers were
generally at odds. Focus your essay on this question: Were
"capital" and "labor" at "war" during this period?
Consider these subsidiary points while supporting your thesis: On
what major issues did they disagree? On what major issues did they
agree? Were industrialists exploiting their workers? Were
industrial workers exploiting their employers? Why was labor
violence so widespread during this period? Why were workers so
"conservative" rather than revolutionary or socialistic?
Readings:
Edward Kirkland, Dream and Thought in the Business Community, 1860-
1900.
Glenn Porter, The Rise of Big Business, 1860-1910.
Melvyn Dubofsky, Industrialism and the American Worker, 1865-1920.
Price Fishback, "Did Coal Miners "Owe Their Souls to the Company
Store"?"
Paper is due: Wednesday, April 10.
Late penalty is 5 percent of the grade per day.
Failure to type penalty is at least 10 percent of the grade. History 438
Quiz #1
February 8, 1991
Quiz is open-book. Answer both questions. Suggested time- 30
minutes.
1. Describe the patterns of American economic growth between the
end of the Civil War and World War One. Consider a number of
measures and give attention to regional patterns, distributional
questions, and cyclical patterns.
2. Two of the key Populist policies were: 1) adoption of a
bimetallic monetary standard with a 16 to 1 price ratio between
gold and silver, and 2) nationalization of railroads. Do you
support these positions? Why or why not? Quiz #2
American Economic History
1. One "legacy of slavery" was that the economic status of blacks
was much lower than that of whites. What were the economic
legacies of slavery? Explain how they handicapped blacks. Use
quantitative evidence for support and to provide details. (10
points.)
2. Was "competition" the friend or foe of blacks in the postbellum
South? Define competition. Support your conclusion with
theoretical and empirical evidence. Examine labor and product
markets. Note any caveats. (10 points.)
Extra Credit:
3. Interpret the table, highlighting North-South differences and
trends. Link your interpretation to broader issues in economic
history. (2 points.) Quiz # 3
American Economic History
1. Identify each individual in approximately two sentences. (1
point each.)
a. J.P. Morgan
b. John Rockefeller
c. Eugene Debs
d. Edgar Thompson
e. Ira Stewart
Essay. (7.5 points each.)
1. The strength of organized labor has ebbed and flowed over the
past century and a half. Describe the timing of this pattern and
its causes.
2. America became the leading industrial nation in the world around
the turn of the century. What explains America's rise to the top?
Discuss economic, social, and political reasons. History 438
Final Exam
Answer two of the following.
1. The Great Depression was more severe than any other recession
in American history and lasted for an entire decade. We can never
know precisely how much blame to give to each of its causes, but
we do know who the primary culprits were. Describe a) weaknesses
in the economy during the 1920s, b) the economic forces which
pulled the economy down from the stock market crash to FDR's
inauguration, and c) New Deal policies which retarded economic
growth. Don't just mention each cause, explain how they weakened
the economy.
2. David Roediger and Philip Foner argue that the shorter hours
issue was unique in "uniting workers along lines of craft, gender
and ethnicity." In a review of Our Own Time, Hormsbury claims that
a close reading of the book reveals that the shorter hours issue
divided workers as much as it united them. Cite specific examples
to support both cases. Who do you feel has a stronger case?
3. The labor market of 1890 was much different than the labor
market of 1990. Describe and explain the major changes in the
labor market- including changes in the type and quality of jobs,
and the roles of minorities, immigrants, women, children, and
elderly men.
II. Answer one of the following.
1. One of the crucial decades in American economic history was the
1890s. Discuss events of this decade in agriculture,
transportation, labor markets, big business, and government policy.
2. In The Devil's Dictionary, Ambrose Bierce defines an immigrant
as, "an unenlightened person who thinks one country better than
another." In what sense is his definition true of American
immigrants of the late 1800s? In what sense is it false?
3. In The Devil's Dictionary, Ambrose Bierce defines a freedman as,
"a person whose manacles have sunk so deeply into the flesh that
they are no longer visible." In what sense is his definition an
accurate portrayal of freedmen in the postbellum South? In which
sense is it false?
III. Multiple Choice/Short Answer Questions. Worth one point each.
1. What percent of married females held jobs in 1890?
a. 5%
b. 15%
c. 40%
d. 70%
2. After emancipation blacks in the South remained poor because:
a. former slave owners made them little more than serfs and kept
them on the same plantation for life.
b. Jim Crow laws denied them an education beyond the second grade.
c. a heavy stream of immigrants to the South drove wages down to
subsistence levels.
d. world demand for cotton grew slowly relative to growth in world
supply.
3. Herbert Hoover's economic policy
a. was laissez-faire and did much to deepen the depression
b. was the most interventionist in history to that point, but did
little to stop the depression.
c. was Keynesian, since he sought to stimulate the economy via
federal spending.
d. was laissez-faire and virtually ended the depression-
Roosevelt's policies retriggered the depression.
4. A key New Deal reform was the Glass-Steagel Act. Name one of
its provisions.
5. America's transcontinental railroads
a. would not have been built during the 1860s and 1870s if the
federal government had not given the owners over $8 billion.
b. would have been built sooner if the government hadn't
established the Interstate Commerce Commission.
c. were good for the country because their social rate of return
was over twenty percent.
d. were built by the owners of major eastern railroads trying to
establish a national monopoly.
6. The Populist party's chief aims were
a. larger bonuses to Civil War veterans and repeal of Prohibition
b. regulation of monopolists and inflationary monetary policy
c. subsidies to farmers and establishment of social security
d. eradication of the Indians and passage of Jim Crow Laws
7. Which of these is incorrect?
a. In the early twentieth century economic concentration reached
a peak, following the great merger wave.
b. By World War I the United States had the highest industrial
output in the world.
c. In the years between 1900 and World War I the railroad industry
was regulated increasingly tightly and profit rates fell.
d. Before World War I American businessmen paid for the passage of
over three million European immigrants to come work in America.
8. Which pair of agencies was part of the New Deal?
a. Federal Trade Commission and Federal Reserve Board
b. National Recovery Admin. and Agricultural Adjustment Admin.
c. Social Security Admin. and Consumer Product Safety Commission
d. Tennessee Valley Authority and Federal Communication Commission
9. "Avoid strikes. They have caused more damage than they can ever
makes amends for." What labor leader, head of the Knights of
Labor, argued this?
10. Unit banking laws
a. were meant to decrease the concentration of economic power.
b. gave American banks greater stability than Canadian banks.
c. were passed by Southern carpetbaggers as a way to keep
sharecropper poor.
d. were terminated during the New Deal. V. In which ways is the life story of this individual typical? In
which ways atypical? Make marginal comments. Correct any factual
errors. 20 points. If you do very well on this section, extra
credit is possible.
Stan Tatarewicz- 1935
I am the son of Polish immigrants and began work at age 18,
in 1883. I have worked at the same place, the Murphy Furniture
Company factory, ever since I got my first job. I got the job when
I graduated from trade school and the Detroit Furniture Builders
Association sent their recruiter to my shop class. Like most
American workers I have been a union member most of my life. The
first union I joined was the Knights of Labor. I joined in 1888
when everyone went out on strike for eight hours a day, forty hours
a week. Unfortunately our union didn't win its strike. If that
damned Samuel Gompers, head of the Knights, hadn't secretly ordered
us not to strike, we would have won hands down.
At the time I was a manual laborer, loading crates of
furniture onto railroad cars. After the Knights bit the dust, the
CIO sent an organizer around to our shop in 1890. The goal was to
organize an industry-wide union. The employer imported a couple
hundred negro workers from Alabama to replace us, but when we told
them they were strikebreakers, they wouldn't cross our picket line.
The strike was very radical. We burned a couple railroad cars of
good furniture, the governor called out the state militia, but the
state supreme court was on our side and made them stop harassing
us. Then the Pinkertons were called in. We told them how grievous
our working conditions were, that we had to work fifty-four hour
weeks, and that the employer was discriminating against women
workers. This brought them over to our side too. We were locked
out of work for two months, but only a couple workers looked for
work elsewhere. Finally we were about to give up when Mother Jones
showed up. When the boss heard about her, he nearly fainted. She
sat down at the negotiating table with him and made him give us a
big raise. The really big thing she won us was getting rid of
child labor in our factory, and forcing them to adopt Taylor's
system of scientific management.
Everything settled down after that and I got married.
Meanwhile I was climbing the occupational ladder. My father-in-
law, Mr. Schmidt, taught me how to be a skilled wood carver and by
the age of 41, in 1906, I was a foreman. Being foreman was really
a hassle. I had to listen to all the gripes of the workers and was
given very little power to get them to work hard. Then Mr. Murphy
started reading all that "welfare capitalism" stuff and put one of
those starched-shirt college boys in charge of hiring workers in
1912, after the Homestead strike put a chill through everybody.
I was glad to get back to my work bench.
When I was 56, my back gave out. I got a big disability bonus
from the company, but no body wanted to give me a job. The
furniture industry chews men up and shoots them into the human
spittoon, as they say. My kids were able to take care of me for
a couple years until my back got better. Children can be living
insurance policies in this day and age. I went back to work at the
same factory and work there to this day. Fortunately this cussed
depression hasn't hurt employment in the furniture industry much.
V. Continued.
-Katherina Schmidt, 1935
I was born in Prussia and moved to America when very young.
I attended school at the Lutheran Church academy until age 13.
Then my mother died giving birth to my youngest sister. So, I had
to quit school and take care of the house and the younger children.
Fortunately, my father remarried and when I was 15 I returned to
school. By the time I was 18 I was teaching school. I worked
there for about 3 years and then got married to Stan Tatarewicz.
The policy was to fire women when they got married, so I never told
them that I was married. That was in 1892. They knew something
was up when the baby was on its way, however.
When my two children were finally out of diapers I went back
to work in 1898. I didn't want to go back to work, but Stan
insisted that it was necessary for us to become a solid middle
class family. A lot of married women were going out to work during
the depression of '98. The only work I could get was in a sweat
shop making shirts. The work was grueling but I stuck with it.
I was paid on piece rate, and when I got proficient, made a lot of
money. I started making even more than my husband. This bruised
his ego, things started getting bad between us and we divorced in
1910.
I had saved a lot of money and decided I would open a shirt
making shop of my own. During the Great War the business was
booming, labor was there for the picking, and the government was
especially eager to put out contracts for uniforms to shops owned
by women. But then the AFL sent around a crack team to organize
women's industries. They were really feeling the heat from the
IWW, which had nearly half a million female members and was
becoming quite strong during the war. I asked them what they
wanted, and they demanded nothing less than employee management of
the shop. I had about 40 employees, mostly Jewish, Italian women
and girls, and Black men. I couldn't hold out against them and the
pressure of the National War Labor Board which was pushing
employee-management everywhere. Fortunately, after the Red Scare,
I shook the union. Unfortunately, that's when the national child
labor bill was passed. It single-handedly dried up half my supply
of workers. Profits were low, so I retired in 1928 when the merger
mania caught hold again and a big merger of the clothing industry
was arranged by Johnny Rockefeller.