The Civil War in America and the Growing Role of U.S.Government
The coming of the post Civil
War industrial society can be traced to key factors that had enabled the North
to win the war in 1865. These factors include a laissez faire relationship
between government and business, the continuance of population growth through
immigration, and a national spirit of sacrifice in order to achieve a goal. At
the same time, these factors created significant problems affecting integrity
of government, treatment of industrial works and immigrants, and the needs of
western farmers.
The Civil War and American
Business
The conduct and course of the
war necessitate strong bonds between government and business. This was the
debut of the billion dollar federal budget and direct governmental
relationships with big business, notably the railroad industry. Railroads had
played a significant role in Union victory, freighting supplies and carrying
soldiers. After the
As historian Howard Zinn
demonstrates, Union generals at times contracted directly with businesses for
arms and supplies. Without government regulatory policies, businesses grew
through a self-policing financial community, failing when greed overtook
prudence as in the Panic of 1873. Congressional leaders curried favor with big
businesses, accepting loans that were never repaid, shares of stocks, and seats
on corporate boards. As in the railroad industry, the quid pro quo was
substantial land grants enabling railroads to connect the oceans and build
hundreds of subsidiary lines.
The amount of railroad
construction remained the same in the decade of the Civil War as it has the
decade before the war. In the decade of the 1870s, however, railroad
construction more than doubled from 20,000 miles of track to over 45,000 miles
of track. [1] Much of this can be directly traced to Congressional support,
often resulting in kickbacks and other favors. The 1872 Credit Mobilier scandal
is but one salient example of graft.
Spirit of Sacrifice and
Determination
The war had taught average
Americans that victory would come if everyone
shared in the sacrifices demanded. This included rationing as well as serving
on the front lines. Four years of often intense conflict inculcated this
mentality in the minds of Americans. As the
Industrialization harnessed
the power of millions of workers, men, women, and children that had no other
recourse to working twelve hour days for low wages. In inequities arising out
of Gilded Age wealth production produced labor movements – unions – that
challenged the status quo and demanded better working conditions.
Many of these workers were
immigrants, unskilled, poor Europeans and Asians, thrust into the economic
machine of rapid industrialization. Government, for its part, supported big business
and viewed unionization as a step toward anarchism and socialism. Governmental
leaders, including Presidents and Cabinet members, had close ties to big
business and legislation that attempted to regulate businesses, such as the
first Interstate Commerce Commission, had no regulatory teeth.
The End of Laissez Faire
The war between capital and
labor would not abate until the Progressive Movement of the early 20th
Century and legislation passed under the leadership of Theodore Roosevelt and
Woodrow Wilson. Yet even before Roosevelt, American voters, notably in 1894 and
1896, rejected Populism and chose the status quo conservatism of on-going
capitalism. While the 1890 Sherman Anti-Trust Act did little to effectively
“curb” the power of the Trusts and rescue American workers from abuse, it was a
first step in recognizing that a problem existed.
Sources:
[1] U.S. Bureau of the
Census, Historical Statistics of the
United States, Colonial Times to 1970, Bicentennial Edition, Washington,
DC, 1975.
Page Smith, The Rise of Industrial America: A People’s
History of the Post Reconstruction Era Vol. 6 (Penguin Books, 1984)
Published 2009 in Suite101 M.Streich under Copyright
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