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How Did The Transcontinental Railroad Affect The California Economy

546 Words3 Pages

For twenty years after the Gold Rush, Americans in California felt extremely remote from the rest of the United States. The early Forty-Niners of the California Gold Rush wishing to come to California were faced with limited options. Some options included sailing around South America from the Atlantic which could take up to eight months or travel by land but that came with many dangers as well. The railroads helped establish countless towns and settlements, it paved the way to abundant mineral deposits and fertile tracts of pastures and farmland, and created new markets for eastern goods. For many, the dream of a transcontinental railroad symbolized all sorts of hopes for better things. The Central Pacific Railroad Company was authorized by Congress in 1862. The establishment of America's transcontinental rail lines securely linked California to the rest of the country, and the …show more content…

The railroad shipped $50 million worth of freight coast to coast each year. The railroad brought an economic growth for businesses. It also allowed people to travel across country at a cheaper rate and at a much faster pace. The railroad brought many positive effects to California but it didn’t stay that way. Just as the railroad created economic growth it also brought a lot of corruption with it. The railroad companies were given government bonds that were funded by the taxpayers and they were also given enormous amounts of land to build on. There was little incentive to function efficiently or responsibly. ‘Stocks were manipulated, as bosses bought struggling eastern rail companies, spread rumors that the railroad line would link to these companies.’ (Coffey, W, Corruption and the Transcontinental Railroad, http://waltercoffey.wordpress.com/2013/01/17/corruption-and-the-transcontinental-railroad/).
The widespread fraud and abuse surrounding the transcontinental line resulted in the greatest scandal of the 19th

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