page_title: Economic history of the United States
section_title: Commerce, industry and agriculture
hierarchical_section_title: Economic history of the United States / Late 19th century / Commerce, industry and agriculture
context_page_description: The economic history of the United States is about characteristics of and important developments in the U.S. economy from colonial times to the present. The emphasis is on economic performance and how it was affected by new technologies, especially those that improved productivity, the main cause of economic growth. Also covered are the change of size in economic sectors and the effects of legislation and government policy. Specialized business history is covered in American business history.
context_section_description: In the last third of the 19th century the United States entered a phase of rapid economic growth which doubled per capita income over the period.  By 1895, the United States leaped ahead of Britain for first place in manufacturing output. For the first time, exports of machinery and consumer goods became important.  For example, Standard Oil led the way in exporting kerosene; Russia was its main rival in international trade.  Singer Corporation led the way in developing a global marketing strategy for its sewing machines.
  The greatly expanded railroad network, using inexpensive steel rails produced by new steel making processes, dramatically lowered transportation cost to areas without access to navigable waterways. Low freight rates allowed large manufacturing facilities with great economies of scale. Machinery became a large industry and many types of machines were developed. Businesses were able to operate over wide areas and chain stores arose. Mail order companies started operating.  Rural Free Delivery began in the early 1890s, but it was not widely implemented for a decade.
  Companies created new management systems to carry out their operations on a large scale. Companies integrated processes to eliminate unnecessary steps and to eliminate middlemen.
  An explosion of new discoveries and inventions took place, a process called the Second Industrial Revolution. The electric light, telephone, steam turbine, internal combustion engine, automobile, phonograph, typewriter and tabulating machine were some of the many inventions of the period. New processes for making steel and chemicals such as dyes and explosives were invented.  The pneumatic tire, improved ball bearings, machine tools and newly developed metal stamping techniques enabled the large scale production of bicycles in the 1890s. Another significant development was the widespread introduction of electric street railways (trams, trolleys or streetcars) in the 1890s.
  Improvements in transportation and other technological progress caused prices to fall, especially during the so-called long depression, but the rising amount of gold and silver being mined eventually resulted in mild inflation during the 1890s and beyond.
caption: Steel workers in 1905, Meadville, Philadelphia
exif: {}