time has a way of covering up the negative and the ugly. Rather than being a "happy time," the 1890's may have been one of the worst times for Americans.
First of all, the 1890's was a time when a very few individuals and families made fantastic fortunes and lived the life of kings. By the turn of the century Andrew Carnegie, the steel tycoon, made over $20 million a year tax-free (there were no income taxes then). Yet, the vast majority of Americans were barely getting by. One of Carnegie's steelworkers would have earned about $450 a year working 12-hour shifts six days a week.
This was also a time when thousands of immigrants were flooding into the country from Europe. Many of these immigrants remained in the eastern industrial cities working for low wages in dirty and dangerous jobs. During the 1890's, the United States had one of the highest industrial accident rates in the world. Yet, workers who were severely injured or crippled could rarely collect any compensation.
Strikes were illegal at this time. Workers who attempted to go out on strike were often arrested or even beaten up by company thugs. A particularly ugly situation developed at Andrew Carnegie's Homestead steel works outside of Pittsburgh, Pennsylvania in 1892. Open warfare broke out between strikers and private guards hired by Carnegie to break the strike. Rifles and even cannons were used in a series of battles between the two sides that left 10 dead.
Times were tough for rural Americans, too. Farmers constantly complained that their lives were ruled by eastern bankers and railroad men. Farmers had to contend with high interest rates for loans in order to buy land, seed and farm equipment. They also had to pay outrageous freight rates set by the railroads in order to get their products to market. Many farm foreclosures resulted when crops failed or prices for farm products dropped.
All these economic problems increased in 1893 when a severe economic depression struck. Many thousands of Americans lost their jobs, farms and homes. The prevailing attitude of government, however, was to stay out of the way of private business. Little was done by the government, from Congress on down to city councils, to reduce the economic suffering of the people.
Corruption and Reform
During the early years of the new century, those individuals who tried to approach government with proposals to improve the lot of factory workers, farmers and small businessmen had little success. Especially at the local and state levels of government, lawmakers were often controlled by political machines and special interest groups. At this time, local and state government reached a low point in American history. Greed, corruption, and outright bribery were common among many politicians.
A New York Times editorial of July 3, 1911, complained that "Respectable and well-meaning men all over the State and especially in this city, are going about saying: 'What is the use? You only replace one lot of rascals by another, generally worse."' Across the country in California, the Southern Pacific Railroad controlled the state legislature and dictated how the state should be run. This was always to the benefit of the railroad. In many states at this time, railroads and other large corporations saw to it that legislatures did nothing to interfere with their profits, power and privilege.
By the early 1900's, reform minded individuals and groups spoke out increasingly against the "robber barons," as the big bankers, industrialists and railroad men were called. Farm, labor, and small business groups along with ministers and journalists charged that the enormous wealth of big business was secured by exploiting hardworking Americans. Political cartoonists portrayed big corporations like the Southern Pacific Railroad as grasping octopuses. A particular target of the reformers were city and state governments that often cooperated or were regularly paid off by the big business interests.
The period from 1890 to 1917 was a time of intense reform activity in the United States. Many different reform movements existed at this time, ranging from farmers who wanted to regulate railroad freight rates, to women fighting for the right to vote, to city social workers trying to improve the health of immigrant children. Generally, these advocates of reform were middle class professionals and small businessmen, both Republicans and Democrats. They wanted changes to take place in American society, but not radical or revolutionary changes. They wanted government to take a more active role in regulating big business. They also realized that before meaningful changes could take place, the stranglehold over local and state government by corrupt politicians and the huge corporations had to be broken. The reformers of this time called themselves "progressives."
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