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6.2 Westward Expansion: Economic Development
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Government Support for Western Development
The federal government played a crucial role in promoting westward expansion through policies that subsidized transportation and communication systems, opening new markets across North America. This approach represented a revival of Henry Clay's "American System" promoting internal improvements, which gained new life under Republican leadership after the Civil War.
- Pacific Railway Act (1862): Provided massive land grants and
financial loans to railroad companies
- Union Pacific Railroad built westward from Omaha, Nebraska
- Central Pacific Railroad built eastward from Sacramento, California
- Government granted railroad companies 10 square miles of public land for each mile of track laid
- Companies received additional financial subsidies through government bonds
- Transcontinental Railroad (completed 1869):
- Dramatically reduced coast-to-coast travel time from months to days
- Created economic corridors connecting Eastern markets with Western resources
- Golden spike ceremony at Promontory Summit, Utah marked completion
- Stimulated related industries including steel, coal, and lumber production
- Established new towns and commercial centers along railway routes
- Homestead Act (1862):
- Offered 160 acres of public land free to settlers who lived on and improved the land for five years
- Over 375,000 families received land titles between 1862-1900, settling approximately 65 million acres
- Supplemented by other land policies including the Timber Culture Act (1873) and Desert Land Act (1877)
- Created incentives for agricultural development of the Great Plains
- Telegraph and Communication Networks:
- Government supported expansion of telegraph lines alongside railroads
- Enabled rapid communication between East and West coasts
- Facilitated integration of national markets and financial systems
Resource Extraction and Economic Development
The discovery of mineral resources in western territories, combined with improved transportation networks, created new centers of economic activity and population growth. Corporate interests gradually displaced individual prospectors as extraction industries became more capital-intensive.
- Mining Industry Development:
- Gold and silver discoveries triggered migration to Colorado, Nevada, Montana, and Idaho
- Comstock Lode in Nevada (1859) yielded over $300 million in silver
- Initial individual prospecting gave way to corporate mining operations requiring significant capital investment
- Mining techniques evolved from placer mining to hydraulic mining and deep shaft mining
- Mining boomtowns experienced rapid growth and decline cycles tied to resource extraction
- Created diverse workforce including immigrants from China, Mexico, and Europe
- Timber Industry:
- Extensive logging operations in the Pacific Northwest and Great Lakes regions
- Supplied railroad ties, mine supports, and building materials for expanding settlements
- Facilitated by railroad access to previously remote forest regions
- Led to significant deforestation and later conservation movements
- Cattle Industry Expansion:
- Open range cattle ranching dominated plains from Texas to Montana
- Texas longhorn cattle driven north to railroad connections (cattle towns)
- "Long drives" followed established trails: Chisholm Trail, Western Trail, Goodnight-Loving Trail
- Diverse workforce of cowboys included significant numbers of Black and Mexican American herders
- Joseph McCoy established Abilene, Kansas as first major cattle shipping center (1867)
- Chicago emerged as meatpacking center with companies like Armour and Swift
- Industry transformed by refrigerated rail cars (1880s) allowing shipment of dressed meat
- Rise of cattle ranching led to conflicts with farmers and eventual end of open range era
Agricultural Development and Mechanization
Improvements in agricultural technology enabled significant increases in farm productivity while opening previously unusable lands to cultivation. However, these changes also created economic challenges for small farmers.
- Technological Innovations:
- Steel plow (John Deere) enabled breaking of tough prairie sod
- Mechanical reapers and threshers (McCormick, Case) dramatically increased harvest efficiency
- Barbed wire (Joseph Glidden, 1874) allowed effective and affordable fencing of vast areas
- Wind-powered pumps accessed groundwater for irrigation and livestock
- Dry farming techniques developed for semi-arid regions
- These innovations collectively increased production while reducing labor requirements
- Changes in Agricultural Production:
- Shift from subsistence farming to market-oriented commercial agriculture
- Specialization in cash crops based on regional advantages
- Great Plains became major wheat-producing region ("breadbasket")
- Food prices declined significantly as production increased
- Farm size grew as mechanization made larger operations more efficient
- Increasing capital requirements for modern equipment created financial pressures
Farmer Responses to Economic Challenges
As agriculture became more integrated into national markets, farmers faced new economic pressures including high railroad shipping rates, expensive farm equipment, and falling crop prices. Many farmers responded by forming cooperative organizations to increase their economic and political power.
- Economic Challenges for Farmers:
- Railroads charged higher rates for short hauls affecting rural shippers
- Grain elevator and warehouse operators often set unfavorable terms
- Crop prices fell as production increased and global competition grew
- Rising debt from purchasing equipment and land
- Deflationary monetary policies favored creditors over debtors
- The Grange Movement:
- National Grange of the Patrons of Husbandry founded 1867 by Oliver H. Kelley
- Grew to over 800,000 members by 1875
- Created social community among isolated rural families
- Established cooperative purchasing associations and grain elevators
- Advocated for "Granger Laws" regulating railroad and warehouse rates
- Supreme Court initially upheld these regulations in Munn v. Illinois (1877)
- Farmers' Alliances:
- Southern Farmers' Alliance and Colored Farmers' Alliance (1880s)
- Northern/Northwestern Farmers' Alliance
- Created cooperative exchanges for buying supplies and marketing crops
- Developed educational programs on scientific farming methods
- Lobbied for political reforms including railroad regulation
- Established "sub-treasury" plan to provide low-interest farm loans
- Political Activism:
- Farmers' organizations increasingly turned to political action
- Ocala Demands (1890) and Omaha Platform (1892) outlined political agenda
- Called for inflation through free silver coinage to raise crop prices
- Advocated for graduated income tax and direct election of senators
- These movements laid groundwork for Populist Party formation
Long-Term Impact of Western Economic Development
The economic transformation of the West had profound and lasting effects on American society, creating new patterns of settlement, wealth distribution, and economic activity while generating both opportunities and challenges.
- Transformation of the West:
- Settlement patterns followed railroad lines and resource locations
- Diverse populations including European immigrants, African Americans, Asian immigrants, and Hispanic communities
- Development of distinctive regional economies based on local resources
- Environmental changes through resource extraction, agriculture, and settlement
- Integration of National Markets:
- Western resources supplied Eastern manufacturing centers
- Agricultural products moved efficiently to urban markets
- Financial systems increasingly connected through national banking networks
- Regional economic specialization increased national interdependence
- Legacy of Western Development:
- Created foundation for America's rise as industrial and agricultural power
- Established infrastructure networks still in use today
- Reshaped relationships between government, business, and citizens
- Generated tensions between corporate power and democratic ideals that would fuel Progressive Era reforms
Key Terms to Review (29)
49ers: The 49ers were a group of prospectors who migrated to California in 1849 during the Gold Rush, seeking fortune and a better life. This mass movement of people significantly contributed to the rapid westward expansion of the United States, as thousands flocked to the West in search of gold, leading to increased settlement and the establishment of new communities.
Agricultural Frontier: The Agricultural Frontier refers to the advancing boundary of agricultural development and settlement in the United States during the 19th century, especially as people moved westward seeking fertile land. This movement played a crucial role in shaping American society, economy, and culture by promoting agricultural expansion, fostering new communities, and altering the landscape through farming practices. As settlers ventured into these new areas, they not only cultivated crops but also transformed their lifestyles and interactions with Indigenous populations.
Barbed Wire: Barbed wire is a type of fencing material that consists of twisted strands of wire with sharp barbs at regular intervals, designed to deter animals and people from crossing. During the period of westward expansion, barbed wire became crucial for marking property boundaries and protecting crops, reshaping the landscape and agricultural practices in the American West.
Boomtowns: Boomtowns were rapidly growing communities that emerged during periods of economic prosperity, often linked to resource discovery or economic opportunities. They were typically characterized by a sudden influx of people seeking jobs, wealth, and new beginnings, leading to the establishment of businesses, schools, and social institutions. The concept of boomtowns is closely tied to the westward expansion, particularly during the Gold Rush and the expansion of the railroad system.
California Gold Rush: The California Gold Rush was a mass migration of an estimated 300,000 people to California between 1848 and 1855 after gold was discovered at Sutter's Mill in Coloma. This event significantly influenced the westward expansion of the United States, spurring economic growth and cultural exchange, while also intensifying conflicts over land and resources.
Cattle Frontier: The Cattle Frontier refers to the region in the American West during the late 19th century that was characterized by the large-scale cattle ranching and the movement of cattle drives. This frontier played a crucial role in shaping the economy and culture of the United States as ranchers sought new grazing lands and markets for beef, transforming the landscape and driving westward expansion.
Chinese Exclusion Act: The Chinese Exclusion Act was a federal law passed in 1882 that prohibited the immigration of Chinese laborers to the United States. This act was a response to rising anti-Chinese sentiment fueled by economic competition, and it marked the first significant law to restrict immigration based on nationality. Its implications extended far beyond immigration policy, influencing social dynamics, labor movements, and racial attitudes in America during various historical periods.
Civil War: The Civil War was a brutal conflict fought in the United States from 1861 to 1865, primarily over issues of slavery and states' rights. This war not only pitted the Northern states (the Union) against the Southern states (the Confederacy) but also reshaped the nation's political, social, and economic landscape, leading to significant changes in American society.
Cotton Gin: The cotton gin is a machine invented by Eli Whitney in 1793 that quickly separates cotton fibers from their seeds, revolutionizing the cotton industry in America. Its invention significantly boosted cotton production, leading to increased profitability and a greater demand for slave labor in the South.
Cowboys: Cowboys were skilled horsemen and cattle herders who played a crucial role in the American West, particularly during the late 19th century. They are often romanticized in American culture as rugged individuals who embodied the spirit of the frontier, contributing to the development of the cattle industry and the image of the Wild West. Cowboys also helped shape social and cultural dynamics through their interactions with various groups, including Native Americans and settlers.
Farmers’ Alliance: The Farmers’ Alliance was a collective organization formed in the late 19th century aimed at advocating for the interests of farmers across the United States. It emerged during a time when farmers were facing significant economic hardships, particularly due to declining crop prices and burdensome debt, leading to increased calls for political and social reform. This movement sought to address these challenges through cooperative buying and selling strategies, as well as lobbying for reforms such as railroad regulation and currency expansion.
Farmers Movement: The Farmers Movement was a collective effort by agrarian workers in the late 19th and early 20th centuries seeking to address the economic struggles faced by farmers in the United States. This movement was characterized by the formation of organizations and political parties that aimed to reform agricultural practices, address issues like railroads monopolies, and advocate for more favorable economic conditions, connecting deeply with the broader trends of Westward Expansion.
Gilded Age: The Gilded Age refers to the period in American history from the 1870s to about 1900, characterized by rapid economic growth, industrialization, and significant social changes, all cloaked in a superficial layer of prosperity that masked underlying issues such as political corruption, economic inequality, and social strife. This era saw the emergence of a wealthy elite and a growing middle class, while also witnessing major conflicts over labor rights, immigration policies, and government roles.
Grange Movement: The Grange Movement, officially known as the Patrons of Husbandry, was an organized effort in the late 19th century aimed at advancing the social and economic interests of farmers in the United States. It emerged during a time of rapid industrialization and westward expansion, seeking to provide a support network for farmers, improve their conditions, and advocate for reforms in agricultural practices and transportation costs.
Henry Clay's American System: Henry Clay's American System was an economic plan that aimed to strengthen the national economy through a series of interconnected measures, including a national bank, protective tariffs, and internal improvements such as roads and canals. This system was designed to promote national unity and economic growth while facilitating westward expansion by improving transportation and communication networks.
Homestead Act of 1862: The Homestead Act of 1862 was a significant piece of legislation that granted 160 acres of public land to settlers for a small fee, provided they improved the land by building a dwelling and cultivating crops. This act was a crucial element in promoting westward expansion and played a vital role in the concept of Manifest Destiny, encouraging many to seek new opportunities in the American frontier.
Joseph McCoy: Joseph McCoy was a key figure in the development of the cattle industry in the United States during the late 19th century, best known for establishing the first cowtown, Abilene, Kansas. He played a crucial role in the cattle drive era, connecting ranchers in Texas to markets in the East, thus facilitating westward expansion and economic growth during this time.
McCormick Reaper: The McCormick Reaper was a revolutionary agricultural invention developed by Cyrus McCormick in 1831 that mechanized the process of harvesting grain, significantly increasing efficiency and productivity on farms. This invention played a crucial role in transforming agriculture during the Market Revolution, facilitating larger-scale farming and contributing to westward expansion by making it easier to cultivate vast tracts of land in the American Midwest.
Meatpacking industry in the Midwest: The meatpacking industry in the Midwest refers to the large-scale processing of livestock into meat products, which became a crucial part of the region's economy in the late 19th and early 20th centuries. This industry was instrumental in supporting westward expansion by providing a reliable food source for both settlers and urban populations, leading to significant demographic and economic shifts. The growth of the meatpacking industry was fueled by innovations in transportation, such as railroads, which allowed for the quick movement of livestock and finished products across the country.
Mining Frontier: The Mining Frontier refers to the regions in the American West where mineral wealth, particularly gold and silver, led to rapid settlement and economic development during the mid-19th century. This phenomenon was a major driver of westward expansion, attracting thousands of prospectors, settlers, and entrepreneurs seeking fortune and opportunity, which greatly impacted the social, economic, and environmental landscape of the United States.
National Grange of the Patrons of Husbandry: The National Grange of the Patrons of Husbandry, commonly referred to as the Grange, is an organization founded in 1867 to promote the social and economic needs of farmers in the United States. The Grange emerged during a time of significant change in agriculture, as westward expansion brought new challenges and opportunities for farmers. By advocating for agricultural education, cooperative buying, and political reforms, the Grange played a crucial role in addressing the issues faced by farmers in an increasingly industrialized nation.
Ocala Platform: The Ocala Platform was a set of proposals adopted in 1890 by the National Farmers' Alliance, outlining key political reforms aimed at addressing the economic challenges faced by farmers during the late 19th century. This platform sought to promote agricultural interests and reflected the growing discontent among rural Americans, particularly in the context of Westward Expansion and the industrialization of the economy.
Panic of 1873: The Panic of 1873 was a financial crisis that triggered a severe economic depression in the United States and Europe, beginning with the collapse of Jay Cooke & Company, a major bank heavily invested in railroads. This crisis exposed the fragility of the post-Civil War economy and led to widespread bank failures, unemployment, and social unrest. The fallout from this panic highlighted debates about the role of government in regulating the economy and the impact of westward expansion, as it coincided with the completion of the Transcontinental Railroad and increased speculation in the railroad industry.
People's Party: The People's Party, also known as the Populist Party, was a political movement that emerged in the late 19th century, primarily representing the interests of farmers and laborers against the established political elites and economic interests. This party sought to address issues such as monetary reform, government ownership of railroads, and an increase in the money supply to alleviate the economic struggles of rural America, particularly during the era of westward expansion and industrialization.
Populist Party: The Populist Party, also known as the People's Party, was a political movement in the late 19th century that sought to represent the interests of farmers and laborers against the elites and established political powers. It emerged during a time of economic distress for many Americans, advocating for reforms like the direct election of senators, government ownership of railroads, and an increase in the money supply to help struggling farmers.
Refrigerated Railroad Car: A refrigerated railroad car, commonly known as a reefer car, is a specialized freight car designed to transport perishable goods while maintaining a controlled temperature. This innovation was crucial during the period of westward expansion as it allowed for the transportation of fresh produce, meat, and dairy products over long distances, significantly impacting the economy and settlement patterns of the American West.
Stockyards in Abilene, Kansas: The stockyards in Abilene, Kansas, were a central hub for cattle drives and the meatpacking industry during the late 19th century. Established in the 1860s, they became one of the first major stockyards in the United States, facilitating the shipping of cattle from Texas to eastern markets. This development significantly contributed to the growth of the cattle industry and played a crucial role in westward expansion by linking ranchers with railroads, promoting economic opportunities and settlement in the West.
Texas Panhandle: The Texas Panhandle is a distinct region located in the northern part of Texas, characterized by its flat terrain and agricultural landscape. It played a crucial role during the period of westward expansion as settlers moved into the area, drawn by opportunities for farming and ranching, which were made possible by the introduction of railroads and land grants.
Transcontinental Railroad: The Transcontinental Railroad was a railroad line that connected the eastern United States with the Pacific Coast, completed in 1869. This monumental achievement not only facilitated westward expansion but also played a crucial role in the industrialization of the nation, impacting the economy, society, and the environment.