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The Civil War Abraham Lincoln, considered by the South to be a threat to slavery, was elected president in 1860. Eleven southern states withdrew from the Union. They formed a separate government called the Confederate States of America. Here is the division between free and slave states in 1861: FREE STATES Maine Indiana New Hampshire Illinois Vermont Michigan Massachusetts Wisconsin Rhode Island Iowa Connecticut Minnesota New Jersey Kansas New York Oregon Pennsylvania California Ohio S LAVE STATES Maryland South Carolina* Delaware Georgia* Virginia* Florida* Kentucky Alabama* Missouri Mississippi* Louisiana* Arkansas* Texas* Tennessee* North Carolina* TERRITORIES Washington Nevada Dakota Colorado New Mexico Utah Indian Nebraska *Confederate States In 1861, Confederate soldiers opened fire on Fort Sumter in Charleston, South Carolina, and the Civil War began. The “War Between the States” lasted four years and eventually killed 600,000 people. It also destroyed an estimated $5 billion in property. The war ended in 1865 after the surrender of Robert E. Lee, the most important general of the Confederacy. Four million slaves were freed during the period of Reconstruction that followed the war. Five days after the Northern victory, President Lincoln was assassinated by a Confederate sympathizer. Resentment and division between the South and North were not resolved for decades after the war’s end. Big Business From 1860 into the next century, the United States expe- rienced an explosion of industrialization. Just as the Industrial Revolution changed Europe, it altered life in the new nation. Natural resources, technological advances, railroad expansion, and a new wave of immigrants in the workforce made industrial growth possible. Businesses began to operate over broad geographic areas and grew into large corporations. Tycoons of the steel and oil industry like Andrew Carnegie and John D. Rockefeller controlled much of the marketplace. The powerful industrialists supported the policy of laissez-faire: They believed government should not interfere with business. Large-scale production changed the workplace. Laborers were more likely to work in large factories than in small workshops. Machines and unskilled workers replaced skilled workers to keep costs down. Many worked long hours doing monotonous work in danger- ous conditions. As a result, national labor unions began to form to protect the rights of workers. The first national labor union was the Knights of Labor, which organized in 1869. In 1886, the American Federation of Labor (AFL) formed, joining together a network of local unions. Led by Samuel Gompers, an immigrant cigar maker, the union rallied for improved hours, wages, and working conditions. Reformers, called the Progressives, wanted to curb the power of big business and protect working people. Among other goals, progressive reform- ers wanted to end child labor and introduce a minimum wage. Through their efforts, government at the local, state, and national level began to regulate business. EXERCISE 5 Use the information from the big business passage to select the best answer for each question. The answers are on page 168. 1. Which of the following slogans would industrial- ist John D. Rockefeller most likely support? a. Live Free or Die b. Our Union, Our Voice c. Equal Pay for Equal Work d. That Government Is Best Which Governs Least e. Big Government – WORLD HISTORY– 140 2. Which of the following was NOT a goal of the Progressives? a. improve workers’ safety b. stop legislation that restricted business practices c. increase government regulation d. prohibit child labor e. set a minimum level for wages The Great Depression In the 1920s, the country enjoyed a prosperous period. Business expanded and investors speculated in the stock market, often borrowing money on easy credit to buy shares of a company. Money flowed into the stock mar- ket until October 24, 1929, when the market collapsed. Investors lost fortunes overnight, businesses started to close, workers were laid off, and banks closed. The stock market crash of 1929 marked the onset of the Great Depression, which lasted through the 1930s. By 1933, unemployment reached 25%, more than 5,000 banks were closed, and over 85,000 businesses had failed. Elected in 1932, President Franklin D. Roosevelt started a relief effort to revive the economy and bring aid to people who were suffering the effects of the depres- sion. He called his program the New Deal. In what is now called the First Hundred Days, Roosevelt and Congress passed major legislation that saved banks from closing and regained public confidence. The following box lists some of the important measures passed in 1933, the first year of Roosevelt’s presidency. The New Deal Agricultural Adjustment Act—paid farmers to slow their production in order to stabilize food prices National Industrial Recovery Act—outlined codes for fair competition in industry Securities and Exchange Commission— established to regulate stock market Federal Deposit Insurance Corporation— insured bank deposits in the case that banks fail Public Works Administration—built roads, public buildings, dams Tennessee Valley Authority—brought electric power to parts of the Southeast Although the New Deal brought relief, it did not end the Depression. The economy did not revive until the nation entered World War II in the 1940s. However, the New Deal had long-lasting effects. It expanded the pow- ers of the central government to regulate the economy, and it created “safety-net” programs that would assist citizens. – WORLD HISTORY– 141 . in 18 60. Eleven southern states withdrew from the Union. They formed a separate government called the Confederate States of America. Here is the division between free and slave states in 18 61: FREE STATES Maine. Great Depression, which lasted through the 19 30s. By 19 33, unemployment reached 25%, more than 5,000 banks were closed, and over 85,000 businesses had failed. Elected in 19 32, President Franklin D. Roosevelt started. the Social Studies Test will come from both national (American) and global contexts, so it will be to your advantage to be prepared to answer a wide variety of questions. 15 14 3 TYPE OF GOVERNMENT