What Was The Role Of The American Economy In The 19th Century

The rise of Wall Street as a major investment structure provided the substantial financial support required for mass construction of railroads. The Civil War caused the Union states’ manufacturing and financial sects of economy to flourish: bringing previously unseen prosperity to northern cities. New York City in particular "came into its own as the nation's banking center," connecting "Old World capital and New World ambition” (Schivelbusch, 1986). A burgeoning Wall Street assisted industry and finance replace agriculture as the keystone of the American economy in the post-war years. As mentioned, demand for supplies in wartime spurred Congress to build more railroads in northern states to transport materials to military personnel. Originally, due to the …show more content…
The post-war financial vacuum allowed for the rise of capitalist Wall Street, and ultimately from various financiers’ prowess, the expansion and domination of the American rail network. A shift in control of the railways from public to private ownership occurred; big business tycoons, not politicians, would control the new industrialized America. Interestingly, this transition proved to be key in bringing railroads to the brink of becoming a staple in American life. The war-weary government could not have supported the tremendous cost of construction. Lack of federal and state regulation at this time simultaneously allowed moneyed entrepreneurs to fully pursue their business interests, nearly to the point of perversion. The year 1879 was an auspicious turning point in the career of financier J. Pierpont Morgan. This year saw the end of government operators as the chief investment occupation of Morgan