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Difficulty: MediumRise of Industrial Capitalism and Business Consolidation

Source: President Grover Cleveland, Proclamation 366—Ordering Troops to Chicago, Illinois, July 8, 1894

"Whereas, by reason of unlawful obstructions, combinations, and assemblages of persons, it has become impracticable, in the judgment of the President, to enforce by the ordinary course of judicial proceedings the laws of the United States within the State of Illinois, and especially in the city of Chicago...

Now, therefore, I, Grover Cleveland, President of the United States... do hereby command all persons engaged in, or in any way connected with, said unlawful obstructions, combinations, and assemblages to disperse and retire peaceably to their respective abodes..."

Which of the following best describes the relationship between the federal government and big business demonstrated by the action in the excerpt?

  1. The federal government actively used military and judicial power to support the interests of large corporations during labor disputes.Answer
  2. B
    The federal government maintained a strict laissez-faire policy, refusing to involve itself in conflicts between private business owners and workers.
  3. C
    The federal government, guided by Populist and Progressive reformers, intervened to arbitrate a fair compromise between corporate managers and unions.
  4. D
    The federal government nationalized the railroad industry to protect consumers and small business owners from corporate monopolies.

Answer

The correct answer states that the federal government actively used military and judicial power to support the interests of large corporations during labor disputes.
The correct option is correct because the federal response to the Pullman Strike of 1894 demonstrated that the Gilded Age government was willing to use military force and judicial injunctions (such as those under the Sherman Antitrust Act) to dismantle strikes and protect the private interests of corporate monopolies.

Step-by-Step Solution

1
Analyze the historical context of the source.
The source is an executive order by President Grover Cleveland in July 1894, which corresponds to the federal intervention during the Pullman Strike.
Understanding the specific historical event helps identify the motivations and outcomes of the government's action.
2
Evaluate the nature of the government's intervention.
The federal government sent troops to Chicago and utilized judicial injunctions to end the strike, effectively siding with the railroad owners against the American Railway Union.
This shows that the state was not neutral or hands-off, but rather intervened directly to protect corporate operations.
3
Connect the event to Gilded Age government-business relations.
The intervention illustrates that the federal government actively supported business consolidation and corporate power, contradicting the myth of pure laissez-faire.
This allows for the elimination of incorrect choices that assume strict laissez-faire, nationalization, or Progressive-style labor arbitration.

Key Concept

Government intervention in Gilded Age labor disputes and business consolidation
Estimated Time:1m 30s
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Topics

Rise of Industrial Capitalism and Business Consolidation

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