Introduction
Transportation is vital to our economy. Today, many are arguing if the government should aid the airline industry. An industry this country depends on to import goods, commute for business and pleasure and utilize to send packages. The air industry today is incredibly like the railroad industry in postbellum America. It created a commercial reservoir which for years afterward sustained much of the economy, including their own industry.
Extended explanation of chosen research methodology
The author chose railroad expansion and the effect it had on the economy after visiting Europe and saw how rail systems are still being utilized as important mode of transportation. The sources being used are both primary and secondary. A Journal article by two authors named Ebru Solakoglu and Barry Goodwin get into the effects railroad development had on pricing behavior. Robert Wiebe book, The Search for Order, 1877-1920, explains how the spread of science, technology and industrialism effected the country after the Reconstruction era. Secondary source was an article in the Saber and Scroll Journal, in the article, Greg Balliet explains the value railroad industry had on America expansion.
Analytical comparison
American entrepreneurs saw potential with the railways as soon as the first railroad was built in England in 1803.[1] After the Civil War, the country was continuing to grow, adding the Dakotas, Nebraska, Colorado, Montana and Washington territories. Railroads with the assistance of machinery and scientific improvement opened more farmland towards the end of the century.[2] Agricultural cultivation began as farmers purchased land with access to grow vegetables, fruits and crops like wheat. Wheat became a valuable product and agriculture needed a method to quickly transport. Shipments to the “northern, eastern and southern states grew by over 10% annually”.[3] Figure 1 shows the growth in mileage from the end of Civil War. Railroad expansions became an important factor to trade with all these regions.
The railroad networks and a rise of crossroad merchants incorporated the upcountry into the national market economy. This traces back to railroad baron, Leland Stanford when he announced joining of the Central Pacific and the Union railroad to form the Transcontinental Railroad. It boosts the economy in certain areas i.e., like Bourbon County in Kentucky. The area had large landed estates and “one of the wealthiest agricultural counties in the state, never ranking below fourth value in value” during postbellum.[4] This was possible due to price convergence.
By the time the railroad expansion had reached its limits, some areas needed to specialize in specific crops. An example is wheat “could move to the frontier regions because of its higher value per unit of weight”.[5] The expansion and more trade reduced transportation cost which allowed the settlements in the frontier. The frontier settlement specialized in wheat production.[6] With the specialized and the demands across the Atlantic, it decreased price differentials. Areas could trade due to its crop mix which allowed sellers to “move between markets and earn higher return”.[7]
Agriculture was not the only resource effected due to the railroad expansion. Other resources like coal, iron and steel were harvested in an unprecedented rate. The industry was able to bring markets and/or resources together which allowed them to flourish like never seen before.
The discussion of personal travel must be explained when it came to railroad. The resounding effect it had on business or personal travel was remarkable. An example is given in the article by Greg Balliet, in the late 18th century if some wanted to travel from New York to Maine it would take a week. However, by 1890s, the same trip was only one day. It allowed citizens to travel comfortably and areas that did not have access previously.
Conclusion
In summary, the economic effect the railroad system had on postbellum was substantial. There was uncertainty with this new industry. But it opened doors and path for many resources. It provided agriculture with a faster mode of transportation to thrive in the market. Railroads brought different resources together which allowed steel, iron and coal to flourish in postbellum. It made traveling more affordable and the ability to move from coast to coast.
[1] Balliet, Greg,”Railroads and their Effect on American Society, 1840-1890,” Saber and Scroll, Vol. 2: Issue 4, Article 4, 2013, 8
[2] Wiebe, Robert H, The Search for Order, 1877-1920 (Hang and Wang: New York, 1967), 15
[3] Guven Solakoglu, Ebru and Goodwin, Barry K, “The effects of railroad development on price convergence among the states of the USA from 1866 to 1906”, Applied Economics, 37, 1747-1761, 2005, 1747
[4] Davis, Charles L, “the Railroad Expansion Controversy in Postbellum Bourbon County: Conflicting Economic Interests and Ideological Perspectives among Urban and Rural Elites.” The Register of the Kentucky Historical Society 112, no. 1, (51-82, 2014), 59
[5] Guven Solakoglu, Ebru and Goodwin, Barry K, “The effects of railroad development on price convergence among the states of the USA from 1866 to 1906”, Applied Economics, 37, 1747-1761, 2005, 1748
[6] Ibid.
[7] Ibid.
Biography
Balliet, Greg. “Railroads and their Effect on American Society, 1840-1890,” Saber and Scroll Vol. 2: Issue. 4, Article 4, 2013. http://digitalcommons.apus.edu/saberandscroll/vol2/iss4/4
Davis, Charles L. “the Railroad Expansion Controversy in Postbellum Bourbon County: Conflicting Economic Interests and Ideological Perspectives among Urban and Rural Elites.” The Register of the Kentucky Historical Society 112, no. 1 (2014): 51-82.
Guven Solakoglu, Ebru and Goodwin, Barry K. “The effects of railroad development on price convergence among the states of the USA from 1866 to 1906”. Applied Economics, 37, 1747-1761, 2005
Brown, Thomas J. Reconstructions New Perspectives on the Postbellum United States. Oxford: Oxford University Press, 2006.
Redenius, Scott A. “Regional Economic Development and Variation in Postbellum National Bank Profit Rates.” Business History Conference. Business and Economic History on-Line : Papers Presented at the BHC Annual Meeting 5, (2007): 1.
Thomas, Brook. “Ruiz de Burton, Railroads, Reconstruction.” ELH 80, no. 3 (2013): 871-895.
Wiebe, Robert H. The Search for Order, 1877-1920. Hang and Wang: New York, 1967.
Mostly History 