Lone Star: The Story of Texas Chapter 15 The New Economics: 1850 - 1910 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper

Lone Star: The Story of TexasLone Star: The Story of Texas

Chapter 15The New Economics:

1850 - 1910

Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River, NJ. All rights reserved.

Lone Star: The Story of TexasLone Star: The Story of Texas

Section 1: Railroads

Section 2: Banking

Section 3: Beginnings of Industry

Section 4: Political Issues

Chapter 15: The New Economics: 1850 - 1910

Section 5: Daily Life

Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River, NJ. All rights reserved.

RailroadsRailroads

• What transportation problems did Texans face before the building of railroads?

• How did Texans encourage companies to build railroads in their state?

• How did railroads change Texas?

Chapter 15, Section 1

The Growth of Railroads in TexasThe Growth of Railroads in Texas

The Republic grants the right to lay track in 1836.

Many people are suspicious of railroad companies and the building of the railroads is prevented.

In 1851, work begins on the first rail line in Texas.

The Civil War begins. Tracks fall apart with few people to care for them.

Texas has a successful railroad system with many miles of track.

After the war, railroads are slowly rebuilt.

The state gives rewards to railroad companies and raises funds to encourage production.


Financing the Expansion of the RailroadsFinancing the Expansion of the Railroads

• Cities and counties sold bonds to raise money to build railroads. Bonds are certificates that promise to repay the amount paid for them plus interest.

• Railroads also received tax breaks that allowed them to pay little or no taxes.

• The biggest incentives offered to railroad builders were land grants. A land grant is a block of public land that a government gives to a business, school, or other organization. The Texas government gave railroad companies more than 30 million acres of land in land grants in the 1800s.


Railroads Change TexasRailroads Change Texas

Diversity

Population

Economy

Problems

Travel

Railroads put out brochures to attract settlers. Trains made it easier for people to travel and move further west.

The railroads put Texans in contact with distant markets quickly and cheaply.

The railroad made it easier to travel between towns. Texas cities became trade centers.

Railroad companies often engaged in unfair business practices to increase their profits.

Members of different ethnic groups helped build the railroads. Many of them stayed in Texas.


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Railroads - AssessmentRailroads - Assessment

Who offered land grants to the railroad?(A) Texas farmers(B) Texas ranchers(C) Texas government(D) Texas towns

What are bonds?(A) Investment money that is used to start up a new company(B) Bad loans (C) Lottery tickets used to award land grants(D) Certificates that promise to repay the amount paid for them plus

interest

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Railroads - AssessmentRailroads - Assessment

Who offered land grants to the railroad?(A) Texas farmers(B) Texas ranchers(C) Texas government(D) Texas towns

What are bonds?(A) Investment money that is used to start up a new company(B) Bad loans (C) Lottery tickets used to award land grants(D) Certificates that promise to repay the amount paid for them plus

interest



BankingBanking

• Why did the first bank in Texas fail?• How did the citizens of the state of Texas

try to limit the power of banks?• What services did Texans hope would be

provided by state-chartered banks?


Banking in Early TexasBanking in Early Texas

• The first bank in Texas, Banco Nacional de Texas, issued handmade bank notes. A bank note is a piece of paper issued by a bank that promises to pay the holder a certain sum. Texans did not trust this system of banking.

• The first commercial bank in Texas, Banco de Commercia y Agricultura, was created in 1835. A commercial bank issues loans and provides services to businesses. In return, those businesses repay the loans with interest.

• In its early days, the Republic of Texas used private firms to issue paper money and provide other financial services to Texans.


State Banks

Private Banks

National Banks

Texas legislature debated over state-chartered banks for years. State-chartered banks are controlled by the state.

The first national bank in Texas opened in 1835. Laws required national banks to raise $50,000 before opening. This slowed the growth of national banks in Texas.

Private banks became the most common type of bank in Texas after the Civil War. These banks were unregulated by the state.

Banking in the State of TexasBanking in the State of Texas


Texans Demand Better BanksTexans Demand Better Banks

• Texans voted to allow both state-chartered and national banks in 1904. Some Texans felt that state banks would help the state more than private banks, because they could be regulated.

• Texas lawmakers created a Department of Insurance and Banking in 1906 to supervise the banks.

• The rapid growth of banking around the turn of the century made many Texans rich and powerful. Texas passed a law in 1909 requiring banks to set aside a sum of money to use during a bank panic.




Banking - AssessmentBanking - Assessment

Who is most likely to obtain a loan from a commercial bank?(A) A business (B) An individual(C) A state agency(D) A town

Which type of bank became the most common in Texas after the Civil War?(A) national(B) state-chartered(C) commercial(D) private






Banking - AssessmentBanking - Assessment

Who is most likely to obtain a loan from a commercial bank?(A) A business (B) An individual(C) A state agency(D) A town

Which type of bank became the most common in Texas after the Civil War?(A) national(B) state-chartered(C) commercial(D) private




Beginnings of IndustryBeginnings of Industry

• What were the first industries to develop in Texas?

• Why did the timber industry come to East Texas?

• What new industries grew rapidly after the Civil War?


Gristmills turned grain into flour.

Sawmills turned cut lumber into boards.


Early Industry in TexasEarly Industry in Texas

Industry - the processing of raw materials into goods for sale.

War industries grew out of the Civil War blockades. Texas produced guns, ammunition, and cloth for uniforms.

Milling was one of the first industries to develop in Texas.

Growth of Industry After the Civil WarGrowth of Industry After the Civil War

Gristmills• Gristmills accounted for one

third of the state’s manufacturing in 1870.

• Mills used the railroads to export products cheaply.

• The largest industry in 1880 was the production of flour and other gristmill products.

• This industry was still the third largest in Texas by 1900.

Lumber Industry• The growth of Texas railroads

made it possible to ship lumber to distant markets.

• The Kirby Lumber Company became one of the largest companies in Texas.

• African Americans made up about one third of the sawmills’ workforce.

• Many companies paid workers with paper money that could only be used at company stores.


Textiles

Cottonseed Oil

Other Industries

Coal and Iron

Texas offered land grants to individuals who built cotton and woolen mills in the late 1800s.

People used cottonseed oil for fertilizing crops, cooking, and lighting their homes. By 1900, it was the state’s second-largest industry.

Texas coal was poor quality, but the railroads used it to fuel their engines. Since Texas had few high-quality iron deposits, the iron industry did not thrive in Texas.

Other industries included salt production, meatpacking, and breweries.

Growth of New IndustriesGrowth of New Industries




Beginnings of Industry - AssessmentBeginnings of Industry - Assessment

What do gristmills do?(A) They cut beef to prepare it for packaging.(B) They cut lumber into boards. (C) They convert wind into energy.(D) They grind grain into flour.

Which industry did NOT develop in Texas in the late 1800s?(A) Salt production(B) Computer production(C) Meatpacking(D) Fabric production




Beginnings of Industry - AssessmentBeginnings of Industry - Assessment

What do gristmills do?(A) They cut beef to prepare it for packaging.(B) They cut lumber into boards. (C) They convert wind into energy.(D) They grind grain into flour.

Which industry did NOT develop in Texas in the late 1800s?(A) Salt production(B) Computer production(C) Meatpacking(D) Fabric production


Political IssuesPolitical Issues

• What was the main goal of the Constitution of 1876?

• How did the Texas government pay for a new Capitol?

• What kind of reform movements grew in the late 1800s?



Constitution of 1876Constitution of 1876

In 1876, Texas delegates met in Austin to rewrite the Constitution of 1869. The Constitution of 1876:• limited the government’s power and spending• reduced the term of governor to two years• limited the power of the governor to appoint officials• returned law enforcement to local control

In the late 1800s, Democrats held most of the public offices in Texas. They worked to reduce state debt and cut taxes:• They cut the salaries of state workers.• They paid veterans’ pensions in land instead of cash.

These spending cuts enabled them to reduce taxes. But outlaws had become a big problem, and Democrats could not cut spending on law enforcement. State debt continued to rise.


Building the New CapitolBuilding the New Capitol

• Texas could not afford to pay for a new capitol. Instead, it provided land grants in exchange for building services.

• The Capitol building was made of Texas pink granite. Its design was based on the Capitol in Washington.

• The state held a contest to choose an architect. • Construction began in 1882 and ended in 1888.


Texans Fight for Reform - Farmers and the RailroadsTexans Fight for Reform - Farmers and the Railroads

Farmers• Farmers claimed railroad

prices were too high.• They formed the Patrons of

Husbandry, also known as the Grange.

• Grangers called for government regulation of railroads.

• Their efforts persuaded lawmakers to pass laws lowering rail fares.

Railroads• Railroads had no competition,

so they could charge whatever they wanted.

• Railroads paid bribes to lawmakers to keep them from passing legislation that would lower the companies’ profits.

• They gave rebates to politicians to gain their support.Rebate - a deduction from the amount paid for something.

Farmer’s Alliance

James Stephen Hogg

People’s Party

• Goal was to establish a business exchange• Joined with other groups to form the Southern Alliance• The Southern Alliance eventually formed a political party, the

People’s Party.

• Members of the People’s Party were Populists• Wanted regulation of railroads and an increase in the money

supply• The Democratic Party adopted many of the Populists’ goals.

As attorney general• Reformed insurance companies• Helped write and pass the Anti-Trust Act of 1889 to ensure fair

trade As governor• established the Texas Railroad Commission to force railroads

to lower rates

Reformers and Reform GroupsReformers and Reform Groups


Women’s Christian Temperance Union (WCTU)

Equal Suffrage League of Houston

Texas Equal Rights Association

Campaigned for prohibition, a ban on making and selling alcohol

pressed for women’s rights, particularly the right to vote

Texas women did not gain the right to vote until 1920, when the Nineteenth Amendment to the U.S. Constitution took effect.

Reformers and Reform GroupsReformers and Reform Groups


Political Issues - Key TermsPolitical Issues - Key Terms

• Capitol - a building in which lawmakers meet.• Supply and demand - The law of supply and

demand states that when the supply of an item is greater than the demand for it, the prices drop. When items are scarce and demand for those items is high, prices rise.

• Rebate - a deduction from the amount paid for something.

• Trust - a group of firms that agree to work together to discourage competition.

• Monopoly - the complete control of a commodity or service in a single industry or market.




Political Issues - AssessmentPolitical Issues - Assessment

What were the two main goals of Texas Democrats in the late 1800s?(A) Break up monopolies and regulate railroads(B) Reduce state debt and cut taxes(C) Establish prohibition and reduce transportation costs(D) Improve law enforcement and end discrimination

By working together, trusts can form a (A) council.(B) committee.(C) political party. (D) monopoly.





Political Issues - AssessmentPolitical Issues - Assessment

What were the two main goals of Texas Democrats in the late 1800s?(A) Break up monopolies and regulate railroads(B) Reduce state debt and cut taxes(C) Establish prohibition and reduce transportation costs(D) Improve law enforcement and end discrimination

By working together, trusts can form a (A) council.(B) committee.(C) political party. (D) monopoly.



Daily LifeDaily Life

• What were some of the advantages and disadvantages of city life?

• What problems confronted Texas farmers?

• What hardships did African Americans, Tejanos, and women in Texas face?


Population Growth and CitiesPopulation Growth and Cities

Benefits of City Living• Newspapers and telegraph

connections helped cities become information centers.

• Cities developed into economic and cultural centers.

• Trolleys helped people get to work. They enabled cities to spread over a larger area.

Trolley - a streetcar powered by overhead cables.

City Problems• Diseases spread quickly.• Water was often impure.• The lack of a sewage

system left terrible odors and helped spread disease.

• Crime increased as cities grew.


Rural CommunitiesRural Communities

• Farmers in West Texas struggled with droughts. Many gave up and left the area. Ranchers had more success, because cattle adapted better to the dry conditions.

• African Americans and Tejanos endured segregation in schools and the workplace. Lawlessness and biased viewpoints often resulted in violence against African Americans and Mexican Americans.

• Prices for farm products were low, and railroad shipping rates were high. Many farmers were forced to sell their farms and take other jobs.

• By the late 1800s, only one Indian reservation remained in Texas. A new rail line through Polk County in the 1880s boosted the lumber industry and created jobs for the Alabama-Coushatta Indians.


African Americans

Women

Mexican Americans

White Texans fought for legal segregation, or the separation of racial groups. Jim Crow laws enforced the segregation of African Americans. They could not ride in the same train cars or attend the same schools as white Texans. Between 1870 and 1900, more than 500 African Americans were lynched in Texas (murdered by mob action without a fair trial).

Mexican Americans also experienced segregation. Many were restricted to low-paying, unskilled jobs.

Married women could not buy or sell property without their husband’s permission. Women could not sue in court, serve on juries, or vote.

Civil RightsCivil Rights




Daily Life - AssessmentDaily Life - Assessment

In the 1800s, most white Texans believed in(A) racial equality.(B) legal segregation.(C) women’s suffrage.(D) civil rights for all.

One of the first professions available to Texas women was(A) meatpacking.(B) the legal profession.(C) railroad work.(D) teaching.




Daily Life - AssessmentDaily Life - Assessment

In the 1800s, most white Texans believed in(A) racial equality.(B) legal segregation.(C) women’s suffrage.(D) civil rights for all.

One of the first professions available to Texas women was(A) meatpacking.(B) the legal profession.(C) railroad work.(D) teaching.


Documents

Lone Star: The Story of Texas Chapter 15 The New Economics: 1850 - 1910 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper