The New International Encyclopedia, Dodd,Mead and Company-New York. Copyright: 1902-1905 21 Volumes.]
The causes are many. Firstly, the Railway Transportation hit rock bottom and locomotive transportation came to a stand-still. Secondly, fires engulfed a number of cities and people suffered immensely. In fact, many buildings were razed to the ground. Thirdly, the Coinage Act of 1783 brought about a huge change in the silver prices. Gold and Silver could no longer be mined. This not only affected the internal economy, but foreign relations as well. Debts of farmers increased and this affected the lower middle class.
The Army Cavalry had to fight the Apaches and there was a huge emergency, when they were required to pull the wagons by hand. This had a big impact as well. In addition to this, the immense growth of the Railways saw most of the financial resources channelized to the sector, leaving the economy in the dumps. Big banks like Jay Cooke and Co. had invested majorly in the railways and couldn't meet the bonds they were supposed to clear. Besides all of this, the fiscal policies of the then President and the other entrepreneurs made things worse. So much so, that Jay Cooke and Co. went bankrupt. All these causes led to the Economic Depression of 1873, which not only affected the internal and external affairs of the United States.
b. What caused the rise of American industry
Initially, the American factories were run by using hydel power from the fast flowing rivers in Northern America. However, after the Civil War, rail links were laid between Southern and Northern America. Then, industrialisation, which was catching up in the rest of the world, took over the United States.
This happened because of steam-powered manufacturing in factories, which succeeded water-powered factories. When the fast-flowing rivers were situated in Northern America, factories were located in the region. However, since steam-power was universal, the factories began to sprout everywhere, leading to industrialisation. Then, the first cotton industry came up, followed by wool processing. Mills came up everywhere and this initiated the first phase of industrialisation in America.
Since Britain and the rest of the developed world were taking to industrialisation, America couldn't stay far behind and thus, industrialisation was brought about in the U.S, leading to the agricultural sector taking a backseat.
c. What impacts did big business have on society, economics, and politics
The Age of Industrialisation paved way for the establishment of big industrial houses. These houses grew by leaps and bounds and became establishments that help immense power and contributed immensely to the economy of America. These