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Difficulty: MediumRise of Industrial Capitalism and Business Consolidation

Source: Memorial of the National Grange of the Patrons of Husbandry, petition to Congress, 1874

"We ask of our representatives in Congress... that they shall look to the rights of the people against the encroachments of monopolies... The railroads, built largely by public aid, by land grants and municipal bonds, have passed into the hands of private corporations who manage them solely for private greed, ignoring their duties as public highways. We demand that these monopolies be brought under public control and that freight rates be made uniform and reasonable."

The arguments expressed in the petition most directly challenge which of the following Gilded Age assumptions?

  1. The assumption that Gilded Age industrialization was driven solely by private enterprise without government assistance.Answer
  2. B
    The belief that late-nineteenth-century industrial growth was hindered by excessive government regulation and taxation.
  3. C
    The assumption that urban Progressive reformers had already successfully established federal boards to control railroad rates.
  4. D
    The idea that the federal government maintained colonial-era mercantilist controls over all industrial production.

Answer

The assumption that Gilded Age industrialization was driven solely by private enterprise without government assistance.
The correct answer is correct because the National Grange petition points out that railroads were 'built largely by public aid, by land grants and municipal bonds,' which directly challenges the myth that Gilded Age industrialization occurred entirely through private initiative and laissez-faire capitalism without government intervention.

Step-by-Step Solution

1
Analyze the historical source context and author.
The source is an 1874 petition by the National Grange, a Gilded Age organization of farmers protesting railroad monopolies.
Understanding the source helps identify the political and economic perspectives of the authors.
2
Identify the key evidence in the text regarding government action.
The text notes that railroads were 'built largely by public aid, by land grants and municipal bonds.'
This shows the authors are arguing that private railroad corporations relied heavily on government support.
3
Evaluate the options to find which Gilded Age assumption is challenged by this evidence.
The evidence directly challenges the myth of pure laissez-faire, which assumes that the rise of industrial corporations was achieved strictly through private enterprise without state support.
Pointing out public aid and land grants contradicts the idea of a completely hands-off government in the Gilded Age economy.

Key Concept

The role of the federal government in promoting and subsidizing business consolidation and industrial growth, which contradicted the popular concept of laissez-faire.
Estimated Time:1m 30s
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Topics

Rise of Industrial Capitalism and Business Consolidation

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