AP
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UNITED STATES HISTORY
2008 SCORING GUIDELINES
Question 4 Information List
Economic Development
• Southern economic development was difficult: few towns and cities, lack of capital, low rate of
technological development, northern control of financial markets and patents. Other problems: high
protective tariffs, demonetization of silver meant less capital for investment, lack of educated work
force.
• Northern investment.
o Investors received concessions from southern state legislatures (land, forest, mineral
rights).
o Railroad companies laid over 22,000 miles of new track, but by 1890 more than half of track
laid was owned by northern railroad companies.
• Industrial development.
o Henry Grady, editor, Atlanta Constitution.
o Industry developed: coal mining in Appalachians, textiles in Carolinas and Georgia,
furniture, cigarette manufacturing (James B. Duke, American Tobacco Co., 1890), iron and
steel in Birmingham, Alabama (by 1900, largest pig-iron shipper in the United States).
o Northern investors came to control some southern iron industry: Andrew Carnegie got
railroads to charge higher freight rates through “Pittsburgh plus” pricing system that
charged Birmingham steel an extra fee; New York bankers eventually controlled stock in
southern iron firms; U.S. Steel bought out many Birmingham iron businesses.
o Northern businessmen invested in lumber industry in Gulf states’ pine forests; production
increased 500 percent.
o Railroads connected the South to national markets but charged higher rates for transport of
manufactured goods than raw materials moving from South to North.
o White merchants and industrialists prospered.
• Cotton industry.
o Southern merchants and landowners promoted vertical integration of cotton industry;
number of cotton mills grew: 161 in 1880, to 400 in 1900.
o
o Cotton manufacturing states of North Carolina, South Carolina, Georgia, Alabama;
Augusta, Georgia, called the “Lowell of the South.”
“Move the mill to the cotton.”
o Attracted northern investors (1880–1920), who owned major textile mills by 1920.
o Mill towns in Piedmont (from Virginia, Carolinas, Alabama, and Georgia) were a mixture of
industrial development and rural traditions; often controlled by mill owners who kept mill
workers tied to the mill.
o Textile workers were white and paid poorly; wages were 30–50 percent less than those for
New England mill workers.
• Labor.
o Wages in industries were low for blacks and whites; lowest paid workers were children
(child labor in textile industry was particularly widespread in South).
o Some opportunities for African Americans: railroads, construction (Atlanta), mines, iron and
steel furnaces, tobacco factories (black women), but workplaces were rigidly segregated, or
blacks had menial jobs; southern urban areas attracted black unskilled labor.
o Cheap convict labor (often African Americans and often 90 percent of convict labor force)
used in railroads, mines, lumber business; brutal mistreatment and no wages paid to
convict workers.
o African American women: domestic workers.
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