A second opportunity of the politician was found in the rapid
economic expansion that followed the war. The feeling of security
in the North caused by the success of the Union arms buoyed an
unbounded optimism which made it easy to enlist capital in new
enterprises, and the protective tariff and liberal banking law
stimulated industry. Exports of raw material and food products
stimulated mining, grazing, and farming. European capital sought
investments in American railroads, mines, and industrial under-
takings. In the decade following the war the output of pig iron
doubled, that of coal multiplied by five, and that of steel by
one hundred. Superior iron and copper, Pennsylvania coal and oil,
Nevada and California gold and silver, all yielded their enormous
values to this new call of enterprise. Inventions and
manufactures of all kinds flourished. During 1850-60
manufacturing establishments had increased by fourteen per cent.
During 1860-70 they increased seventy-nine per cent.
The Homestead Act of May 20, 1862, opened vast areas of public
lands to a new immigration. The flow of population was westward,
and the West called for communication with the East. The Union
Pacific and Central Pacific railways, the pioneer
transcontinental lines, fostered on generous grants of land, were
the tokens of the new transportation movement. Railroads were
pushing forward everywhere with unheard-of rapidity. Short lines
were being merged into far-reaching systems.
Pages:
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46