Discuss The Effects Of The Transcontinental Railroad

The topic that I chose to do is the Industrial Revolution and the Effects of the Transcontinental Railroad. The rise of the Industrial Revolution and the construction of the Transcontinental Railroad took place during the period from 1877 to 1900. They occurred as a result of the discovery of natural resources on American land and the government’s encouragement of the growth of businesses. In 1859, Edwin Drake was able to use a steam engine to drill for oil in Pennsylvania, making the mining of oil practical enough for several other states began the process. With the new abundance amount of oil, refining industries arose to turn oil into kerosene and gasoline, which in turn could be used to fuel the machines essential to the Industrial Revolution.

To further increase their profits, both railroad companies founded secondary supplementary companies. For example, the founder of the Union Pacific Railroad created the Crédit Mobilizer of America construction company that helped finance the building of the railroad. The Union Pacific Railroad also established a land development company that got Europeans to migrate to farms on the prairie. These people gave the railroad company a market for the 38,000 square miles of land that the government gave them and the new farms provided the railroad with business from the hauling of produce, supplies, and people. The Southern Pacific Railroad went further than the Union Pacific Railroad in the extent that they would go to increase their wealth by founding the Charles Crocker and Company and building the railroad that went to it and establishing a monopoly over transportation in California. Yet even though Union Pacific began with more government subsidizes, their more subtle business plan prevented them from accumulating wealth as quickly as Central Pacific, but allowed them to stay and business and eventually buy Central Pacific

Many of these Americans became farmers anticipating the high profit from the rising value of land and crops. So, during boom times, farmers rushed into debt to get more land and better farm equipment. They were excited about cash crops, land speculation, borrowed money, and new technology. Though, these individuals were at a disadvantage dealing with the large companies that arranged their credit, supplied them with machinery, and marketed their products. So, farmers tried cooperation where agrarian parties made Granger laws to regulate grain elevators, fix the maximum railroad rates, and prohibit the discrimination of small and short hauled shippers. The farmers’ success was very dependent on farm prices and other factors so the west was not as profitable as it originally seemed. (why did enthusiasm lead to the deflation of the economy that took place during the 1880s and harsh times for those