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Notes on the Gilded Age
Notes on the Gilded Age
Overview of the Gilded Age (1877-1900)
The Civil War and Reconstruction had divided America. However, even before Reconstruction ended America’s industrial expansion was well under way. England and Germany had gone through a similar transformation earlier, but American industrialization was larger in scale than either country, transforming the national culture more profoundly.
Businesspersons and industrialists received unprecedented government support during the Civil War and reached unprecedented heights in the postwar period, continuing to rise with few interruptions for the rest of the 19th century.
Much of the aid came in the form of the government’s most plentiful asset, millions of acres of land.
As the Industrial Revolution gained momentum, it was reinforced by a resurgence of the “Ideology of Success,” the belief that everyone who exercised hard work (industry) and economy (restraint) could become successful in America.
Although the idea would generally be untrue for most Americans for several generations, and for some never, it nonetheless provided the hope, people needed to believe in and embodied the “Gospel of Wealth.”
However, some, especially in business, espoused “Social Darwinism” as the reason for the success of individuals. Wealth, leadership, success, and prosperity were determined by evolutionary superiority (survival of the fittest).
The population to operate the factories and swell the markets poured in from Europe and to a lesser extent Asia. Between 1877 and 1900, the U.S. population grew from 38,500,000 to 76,000,000.
-More than 12,000,000 came from Southern and Eastern European countries like Italy and Poland. However, many Anglo-Saxon Americans questioned whether these immigrants could be absorbed. However, in the end the extraordinary needs of industry for laborers, plus the American commitment to free immigration, generally won out.
The impact of railroads and industry :
The growth of the railroads after the Civil War was phenomenal. By the early l900’s America possessed 1/3 of the world’s railroad tracks. The early railroads were local, catering to regional service. However, with the federal giveaways of 54 million acres of public domain and $60 million dollars in loans, by l869 the first transcontinental railroad was completed. In addition, with other land grants and public loans, other railroads were built.
By l871, the federal government had given the railroads more than 135 million acres of land and millions of dollars in interest-free loans. Federal support, plus generous state policies, eventually led to the creation of three transcontinental routes and the consolidation of hundreds of smaller railroads.
These smaller railroads had also been given federal aid but went bankrupt through competition with other railroads using ruthless strategies like “the discrimination in railroad freight rates.” Once monopolies ran the smaller railroads out of business, they continued to charge, “whatever the market would bear.”
Critical changes to railroads also facilitated their growth. This included the standardization of track gauge, improved engines, and eventually refrigerator cars to carry goods over long distances.
A by-product of this period of long-term capitalization in the railroads was the rise and development of new industries, or booms to existing industries like coal and steel, glass, lumber, rubber, etc.
Generous government policies plus regional and national monopolization led to abuses including stock manipulation, rate discrimination, and rebates along with bribery and other forms of corruption.
Industry:
Countless businesspersons contributed to the growth and power of the national economy; men like Alexander Graham Bell, Thomas Edison, and Gustavus Swift.
Other captains of industry including Andrew Carnegie, John D. Rockefeller, Cornelius Vanderbilt and Philip Armour were considered “Robber Barons” for their questionable morality taking advantage of poor laborers and their ruthless accumulation of wealth.
Often the “captains of industry” professed a belief in unfettered free enterprise and unrestricted competition. However, this led to savage price wars between competitors to dominate their particular industry.
This led some business leaders to believe open competition created chaos and sought ways to bring order.
-One example was Gentleman Agreements; unwritten agreements between owners in different industries looking to control prices and competition—such agreements failed.
-A second example was the so-called Pools. Unlike Gentlemen Agreements, these were written agreements between businesses to control prices and competition in the same field. However, they too failed and replaced by Trusts.
Trusts dominated a particular industry through monopolization, often using vertical and horizontal consolidation.
Despite the dominance of business during the late nineteenth century the captains of industry remained insecure, fearful that despite their financial power, generous support from the federal government and states, their unethical behavior would come back to haunt them.
This was especially true in the agrarian mid-western and western states where farmers were exploited by the railroads and other businesses. They could not always be sure they, or their lobbyists, would have judges, legislatures or supportive states in their corner.
To prevent states from controlling their practices, they sought protection in the Constitution under the so-called “Doctrine of Vested Rights.” This constitutional theory claimed nothing was more sacred and fundamental to “God and Justice” than the sanctity of private property.
Between l869 and 1898, businesses sought indirect and direct protection from potential, state regulation under the Fourteenth Amendment. They sought a substantive reinterpretation of the 14th amendment, one that would provide business protection under the Amendment. This occurred as a result of business appeals to state regulation over their practices in three Supreme Court cases:
Slaughterhouse Cases (1869): The Louisiana State Legislature awarded a virtual monopoly to one slaughterhouse business. The other slaughterhouse businesses filed a suit that worked its way up to the Supreme Court. They argued that the state legislature’s action violated their rights against arbitrary state action and equal protection under the 14th amendment. The Supreme Court rejected their claim, essentially saying they had no standing under the amendment since it was specifically passed to protect the civil and political rights of the recently freed slaves in the southern states, and for individuals, which they were not. The court upheld the Louisiana State Legislature.
Munn v. Illinois (1873): This case presented exactly the scenario big business was afraid of happening, a state attempting to regulate the practices of businesses, specifically the railroads. After years of being victims of railroad rate discrimination, agrarian radicals managed to win a majority of seats in the Illinois State Legislature.
To punish the railroads the Grange (agrarian radicals) controlled legislature passed a law setting the rates for the storage of grain in grain elevators in cities with populations of 500, 000 or more. Chicago was the only city in Illinois with such a population and where 95% of all grain was stored in grain elevators owned by the railroads. Again, the railroads filed suit taking it to the Supreme Court seeking protection under the 14th Amendment. However, The Supreme Court still, took a strict interpretation of the 14th Amendment, ruling the railroads or any business, could not find protection under the amendment.
Smyth v. Ames (1898): By the end of the century, most Americans were less hostile toward business or at least began to see its benefits.
Moreover, the composition of the Supreme Court had changed with presidential appointments of justices who were outright favorable to big business. The court decided to take a more expansive interpretation of the 14th amendment and included business under its protection, striking down a Nebraska state statute that attempted to regulate railroad freight rates. While the decision touched on corporations as individuals, it did not hurt that the case involved a business involved in interstate state commerce and generally beyond the jurisdiction/regulation of the states under the Interstate Commerce Act.
Ironically, the Interstate Commerce Act of 1887 was designed to regulate the railroad industry, specifically its monopolistic practices. It created the Interstate Commerce Commission to monitor railroads to ensure the railroad rates were “reasonable and just,” but did not give the government power to fix specific rates.
Cities during the Gilded Age:
As mentioned, between the 1870 and 1900 the cities grew at a fantastic rate. There was continual conflict between older Anglo-Saxon stock Americans who had been displaced by the railroads or sought the “milk and honey in the cities,” and the newer immigration of Southern and Eastern Europeans. By l916 several books, like Madison Grant’s, The Passing of a Great Race, (l916) and Lothrop Stoddard’s The Rising Tide of Color, (l920) argued that these races were injecting an inferior racial gene pool into America, destroying the exceptionalism of the Anglo-Saxon race.
In certain areas of the country where foreign immigrants, like the Chinese, had been in America since the l840s when they arrived to pan for gold and became the source of cheap labor for building the railroads in the 1860’s under the Burlingame Treaty of l865.
Chinese became the object of xenophobia and race hatred during the 1870’s. A part of this had to do with the exploding growth of San Francisco, a major area for Chinese settlement during the railroad building years and the subsequent white migration to the west with the evolving transcontinental railroads. Suddenly the Chinese represented a “yellow peril,” and American Irishmen like Denis Kearney wrote a manifesto warning that the Chinese were pushing the Anglo-Saxons out of the economic competition. He called on Congress to pass a law stopping the immigration of Chinese.
In truth, anti-Chinese or anti-Asian behavior before the l870s:
The Foreign Miners’ Law of l850, a law originally passed to limit Mexican miners, was increasingly applied to Chinese miners.
Californians fearing economic competition charged $50 for each foreigner, especially Chinese entering California.
In the late l850s, race riots drove Chinese out of the mining regions of northern California. The popular statement, “Not a Chinaman’s chance” became tragically true.
In the late 1860’s “anti-coolie” clubs attempted to keep the Chinese in their place or drive them out of California.
In l871, a fierce race riot in Los Angeles saw large numbers of Chinese injured or killed. Many believed with the completion of the transcontinental railroad the Chinese would surely go back to China. This was not the case. By 1876, more than 116,000 Chinese lived in California.
Race hatred of the Chinese was so strong that San Francisco passed the Cubic Air Ordinance decreeing all adults must have 500 cubic feet of living space, but like the black codes, it only applied to Chinatown. Chinese were arrested for violating the law and sent to jail. In jail whites, understanding the religious importance of their “pigtails” cut them off.
Anti-Chinese sentiment culminated in Congressional passing of the Chinese Exclusion Act of 1882. The law stopped Chinese immigration for a ten-year period. Moreover, in 1892, the Geary Act (“Dog Tag Law”) required Chinese to carry their residential permit with them or risk imprisonment and deportation.
We should also mention scholars and writers believed the expelling of Native Americans from their land and their virtual extermination through wars and broken treaties was genocide. Helen Hunt Jackson writing about this period titled it A Century of Dishonor in her 1881 book. To soothe their consciences, Congress passed the Dawes Severalty Act (1887). The Act stated its objective was to assimilate Indians into American mainstream society. For those who accepted it they would receive 160 acres of land to be theirs “forever,” and education to help with their assimilation. Individual ownership of land on the European-American model was seen as an essential. The act also provided that Indian reservation lands remaining after allotments would be sold on the open market, allowing purchase and settlement by non-Native Americans.
Urbanization:
To meet employer demands, factories and tenements sprang up overnight. There was virtually no city planning and concern for the new urban workers. The lack of planning and the pursuit of profit resulted in unsafe and unsanitary work and home environments. By 1900 cities, especially New York, suffered from high mortality rates, cholera, tuberculosis and other environmental diseases. Immigrants frequently found themselves in crowded tenement buildings while middle-class residents took advantage of new transportation like streetcars and moved to suburbs or other “bedroom communities” which allowed them to work in the city but avoid the overcrowding, air pollution, and noise.
The Gilded Age represented the first time a significant number of women and children entered the labor force on a full-time basis. Employers provided no workmen’s compensation for accidents or illness, and certainly no health benefits.
The medical treatment of women reflected outdated Victorian values and male chauvinism. The origins of women’s illnesses were often attributed to “nervousness or some dysfunction of the uterus.” Treatments from the 1870’s to the end of the century involved massive doses of mercury, lead, or opium. Later gynecologists prescribed the use of leeches placed around or in the uterus. Later in the century, doctors prescribed complete bed rest, massage, and electric shocks to cure their illnesses. In addition, there was a double standard in the way female doctors were treated compared to male physicians.Labor and Farmers:
Labor’s response to big business domination over their wages, working conditions and even homes (company homes) was a series of attempts at organizing labor beginning with the National Labor Union in l866. The union was virtually ineffective.
The Knights of Labor was established in l869 by a minister named Uriah Stevens but most prominently led by Terrence V. Powderly. Both believed using “moral suasion” to get employers to give laborers better wages and living conditions. It was an industrial based union, welcoming both skilled and unskilled labor. In the beginning, it even attempted to bring blacks and women into the union.
In general, the Knights endorsed the restriction of child labor, a graduated income tax, more land set aside for homesteading, cooperatives, and the nationalization of the telegraph and railroad.
In 1884, a spontaneous strike against the railroads of Jay Gould demonstrated the power of the strike. While the Knights leadership continued to support “moral suasion” as the main tactic, rank and file members revolted and led strikes. By l886, the membership of the Knights had grown to 600,000. Ironically, in the same year, a strike by the McCormick Reaper workers in Chicago led to the Haymarket Square incident. Over l, 500 people gathered for a mass meeting at Haymarket Square to protest against the brutality against striking workers the day earlier. While several speakers were denouncing the violence, someone threw a bomb. In the days that followed known anarchists like August Spies were rounded up, charged, and convicted of murder. Blamed by the media, the Knights of Labor had nothing to do with the strike. Still, such accusations led to its demise in the same year its membership peaked.
The American Federation of Labor succeeded the Knights of Labor. Founded by Adolph Strasser in 1888 it grew to prominence under Samuel Gompers. The AFL was a craft or guild union (skilled labor only) and used an apprentice system for controlling the number of skilled craftsmen in every guild. This made bargaining with businesses more effective in a strike. It was much harder to replace skilled labor as opposed to unskilled labor. It sought recognition of its union status to bargain with employers for better working conditions, higher wages and shorter hours.
Farmers during the Gilded Age sought to imitate the practices of manufacturing in the North which succeeded by mass production. To achieve this Farmers Alliances (Northern, Western, Southern and Colored) introduced education and cooperatives. However, unlike manufactured products growing more crops did not result in greater profits. The more they produced, the more prices fell. Increasingly in the l880’s farmers especially in states like Kansas, Nebraska, and Texas fell into foreclosure. This led many to arm themselves to resist eviction. According to Populist radical Mary Lease, it was time to produce “less corn and raise more hell.” The farmers succeeded in taking over a number of southern but mostly western state legislatures, including Texas. In 1892, they organized a third political party, the Populist and ran James Weaver as a candidate for President against the Republican Benjamin Harrison and the Democrat Glover Cleveland who won. Farmers accused both parties of neglecting the farmer and supporting a banking system that favored of business over the farmers.
Use the following essay questions based on the notes to guide your study for the Gilded Age:
1.Compare and contrast the views of Social Darwinism, the Ideology of Success, the Gospel of Wealth, and Laissez-faire. What do they all have in common and in what ways are they different? Explain why each had a popular appeal in America in the late nineteenth century.
2.What factors account for the dramatic growth in business after the Civil war?
3.What factors shaped the growth of labor unions during this period? What factors delayed or weakened their growth? What were their limitations and what achievements can they claim.
4.Compare and contrast the goals, tactics, leadership, and accomplishments of the Knights of Labor, the American Federation of Labor, and the Industrial Workers of the World.
5. Who financed the railroad expansion in the late nineteenth century? How did this expansion affect the economic development of the country?
6.How did immigration to America change in the latter half of the nineteenth century, and what was the response to that change?
7.Describe the explosive growth of urbanization in the late nineteenth century. What factors led to this growth, and where did the largest growth take place?
8.Discuss the most serious challenges the urban population faced, how were those challenges addressed, and how effective were the solutions.
9.How did big business seek protection from state control during the Gilded Age?
10.What economic, political and social reforms did farmers seek during the Gilded Age? What organizations arose to fight for those reforms?
Notes on American Foreign Policy 1877-1920
Notes on American Foreign Policy: 1877-1920 Few would argue that America had a clearly defined and articulated foreign policy at the end of Reconstruction in l877.
It was common to read newspaper editorials and comments belittling America’s Foreign Service.
The New York Sun decried the diplomatic service was “a costly humbug and sham.” Instead of making ambassadors, Congress should wipe out the whole service.” The New York Herald declared the “Trans-Atlantic cable had made diplomats unnecessary” and called for the abolition of the foreign ministry.
Perhaps most telling of American indifference to the outside world was Admiral David Porter’s comment in the l870s that the Navy’s fleet was so decrepit that it reminded him of the Chinese who painted dragons on their forts to frighten away their enemies.
Notwithstanding this, a number of factors between 1877 and 1900 pushed the country in the direction of a clear and identifiable American foreign policy:
New Manifest Destiny: The Industrial Revolution gave Americans a greater sense of themselves and America’s place in the world. The replacement of regional markets with a single national market, business sought to expand beyond the continental United States.
Bold new nationalism: Americans took greater pride in their country, reflected in singing the national anthem at sporting events and even comic operas. Americans were vocally unhappy with the attempt of Ferdinand De Lesseps’ attempt to sever the Isthmus and build the Panama Canal. Another example of this new nationalism was Secretary of State James G. Blaine’s tireless effort to create arbitration treaties with Latin American nations and congressional authority to negotiate reciprocity trade agreements. The efforts resulted in the Pan American Conference in l889.
The world became smaller: The New York World’s reporter Nellie Bly’s (real name Elizabeth Jane Cochran) recording shattering trip around the world in 72 days made it increasingly difficult for Americans to view the world through “isolationist lens.”
The popularity of Admiral A. T. Mahan’s The Influence of Sea Power Upon History struck a chord with both civilians and the military that any country is seeking to make its imprint on history needed to follow the example of England and build a robust navy and acquire coaling stations for commercial and military dominance.
Need for Overseas Markets: The remarkable growth of the American economy pushed businesses to find markets outside of the continental United States to unload their surplus goods.
The impact of these various forces, impulses, and factors, pushed Americans to involve themselves in countries and events outside the United States.
Samoa (1878-1899): As early as 1838 American whaling companies stopped off at the Samoan archipelago for rest and refueling. The friendly reception by the Samoan people led the United States to secure a foothold in Samoa.
In l878, the six-foot-four head of Samoa, Le Mamea (referred to as the “tattooed Prince”) was invited to Washington where a treaty was negotiated. The treaty provided that in return for the rights to a coaling station in Pago Pago, the U.S. would employ its “good offices” to adjust any differences between Samoa and other foreign powers.
The weak government had formally bound the United States to support it against foreign powers. This notwithstanding, Samoa the following year made treaties with Great Britain and Germany. Not long after, the Germans pressed demands on the Samoan king for “alleged” wrongs, forcing the U.S. to push against the Germans, leading to a naval standoff in 1888 at Apia. With naval guns trained on one another, a storm blew in and nearly sank both the American and German ships. Great Britain’s navy which was out of the storm’s reach, sailed in to save both countries.
The next year the three countries create a three-headed Samoan protectorate, with the native dynasty nominally “ruling from the royal hut.” However, as the saying goes about too many cooks in the kitchen, it failed. In late 1899, Samoa was permanently divided between Germany and the United States (American Samoa).
The Americanization of Hawaii (the 1870s to 1900):
As early as the 1820s, American whalers and missionaries journeyed to Hawaii. The fishing companies for rest and relaxation, and the missionaries to save souls. By the 1850s, European countries and America saw the strategic and economic value of Hawaii. In fact, American President Franklin Pierce negotiated a treaty for the annexation of the Hawaiian kingdom but blocked by the United States Senate (primarily because it included a provision for immediate statehood).
However, by the l870s the son of the missionaries had become wealthy sugar growers. Moreover, in l875 the U.S. entered into a reciprocity treaty with the Hawaiian kingdom. The treaty bound Hawaii not to make any territorial concessions to any other foreign power and allowed the U.S. a major coaling station. Furthermore, Hawaiians were allowed to ship sugar and other products to the U.S. duty-free. The treaty had little value to native Hawaiians but was of great importance to the white sugar growers who near the end of the nineteenth century owned two-thirds of Hawaii’s real estate.
Queen Liliuokalani ascends to the throne and declared “Hawaii for the Hawaiians”
The sugar-growers conspired with John L. Stevens; the American minister stationed in Honolulu and stages the fake, so-called “Revolution of l893.”
With American troops, stationed ostensibly to protect American property, the sugar-growers deposed Queen Lil.
Immediately a commission composed of three white Americans and one Englishman sail to Washington and push for the annexation of Hawaii. President Grover Cleveland refuses the annexation after finding out the Hawaiian people opposed annexation. However, Republican president, William McKinley has no such reservations and annexes Hawaii in 1898.
The native Hawaiians were not the only people unhappy about annexation. Fresh from defeating China in the Sino-Japanese War (1894), Japan was furious. With a quarter of the population of Japanese descent, they believed Hawaii should belong to them. HH
The Spanish-American War (1898)
War resulted from the forces building in America since the Industrial Revolution.
After years of oppression by Spain’s sugar growers, the Cuban peasants revolted. Using the cry “Viva Cuba Libre,” they sought the ouster Spain’s overlords by terror, dynamiting trains, and burning property owned by the Spanish Americans.
The American press sympathized with revolution making the comparison between their revolution and the American Revolution.American reporting of the revolution was influenced by the “rise of yellow journalism” and the competition between William Randolph Hearst’s New New Journal and Joseph Pulitzer’s New York World.
To increase the circulation of their newspapers, they exaggerated, distorted, and made up facts. Or as one contemporary put it, “they snooped, scooped, and stooped to conquer” their competitors.
At the beginning of the Cuban Revolution, the combined circulation of both newspapers was 800,000. By the end of the Spanish-American War, the circulation doubled to 1.6 million.
To end the rebellion Spain sent General Valeriano Weyler to Cuba. General Weyler positions forces between the cities and countryside, and constructs huge wired concentration camps with no humanitarian provisions. Cuban women, children, and men die from the lack of sanitation and brutality.
In the midst of putting down the rebellion, tensions escalate the United States. Spain accuses the U.S. of sympathizing with the revolutionaries and running guns from Florida to support the revolution. Segments of the population pressure the American government to take action to end the revolution. This is especially true of the business community, which is losing money from the destruction of their investment in sugar growing on the island. Men like William Randolph Hearst who has invested millions of dollars in growing sugar on the island.
Still, President McKinley is reluctant to get America involved in the revolution but issues two strongly worded demands of Spain in 1897. He insists on the modification of the concentration camps to make them more humane and granting the Cuban people some sort of autonomy or democracy.
Spain accepts the demands and the crisis appears averted, when early 1898, the USS Maine on a “friendly” trip to Cuba suddenly explodes while in the harbor of Havana. While there were multiple suspects and causes for its explosion, for the American people, the only acceptable suspect is Spain, embodied in the cry, “Remember the Maine, to Hell with Spain.”
Congress declares war on Spain in April, 1898.
It was a short war lasting roughly four months (August). Yet, it had important implications for America’s place in the world. England hails the quick defeat of Spain praises America for taking its rightful place among the great nations.
The Treaty of Paris, Dec. 10, 1898, officially ended the war. The major consequences of the war are:
a. It ended Spanish Empire in America and the Pacific.
b. Spain gave up rights to Cuba. To let the world know the war was not fought for territorial gain, Congress passed the Teller Amendment as it declared war on Spain. The Amendment specifically declares the U.S. did not covet one an inch of Cuban territory.
c. Spain cedes Puerto Rico, an island in the Marianas, and ultimately Guam to the United States.
d. Spain surrendered the Philippines, but the Phillippine citizens who fought beside the Americans to gain their independence were left with their fate in the hands of a “commission.” Unfortunately “duty, dollars, and destiny” got in the way of America’s outright recognition of Phillipino independence. Betrayed by the United States, the Phillippinos, led by Emilio Aguinaldo, fought the Americans. The Americans used the same concentration camps they denounced the Spanish for erecting. The U.S. employed nearly 70,000 troops to put down the Phillippines.
f. In the end, the U.S. annexed the Philippines.
John Hay and the Open Door Notes 1899, 1900
The annexation of the Philippines made the United States a far eastern power and forced to become increasingly concerned over the dramatic events on the Asiatic mainland. After China revealed her weakness in the Sino-Japanese War (1894-1895), the imperialistic European powers descended on the “paper tiger.” They extorted long-term leaseholds and created valuable spheres of influence. Although trade with China was relatively small, it was growing with promising rapidity.
The British, who had the largest foreign trade stake in China, were worried about their presence in the far east. Twice in 1898 and1899, Britain proposed a cooperative arrangement with other countries to ensure equal commercial opportunities in China. This became known as—the Open Door Policy. On both occasions the U.S. said no, arguing it was inconsistent with its traditional no entanglement policy. However, during further discussions with British officials the idea of equal commercial opportunity met with increasing favor. In the end, business pressures on the State Department became strong that some kind of action became imperative. In the late summer of 1899, several British officials working with President William McKinley and Secretary of State John Hay worked out a memorandum that became the Open Door Policy.
Open Door Note One September 6, 1899:
Secretary John Hay sent Open Door notes to Germany, Britain, and Russia. Shortly after, he included Japan, Italy, and France. The note requested each country to provide assurances they would abide by the following:
1. Within its sphere of interest or leasehold in China, no power would interfere with any treaty port or any vested interest.
2. The Chinese tariff treaty would be applicable with such spheres of interest (influence), and the duties were to be collected by the Chinese government.
3. Within their spheres, no power would discriminate in favor of its own nationals in the matter of harbor dues and railroad charges.
Naturally, England and America supported the first open door, while others responded generally or not at all. In truth, the original Open Door Note was merely a dramatic statement of America’s commercial interest, and did not spring from unselfish motives.
Open Door Note Two July 3, 1900:
The Boxer Rebellion prompted the second open door note. A group of fanatical Chinese, called the Boxers, rose up against the foreign “devils” taking over China. After widespread murder and pillaging, a group of whites, including members of various foreign legations found themselves besieged in the foreign legations in Peking, China. American Secretary of State, John Hay led an effort to create an 18,000 international rescue force and free the beseiged foreigners. In August, 1900, the besieged legations were freed. Still, Hay was suspicious that some of the imperialistic powers would take advantage of the chaos to unhinge the Open Door, and issued the Second Open Door.
The note proclaimed that the policy of the Government of the United States was to seek a solution which preserved “Chinese territorial and administrative entity.” Unlike the first Open Door Note, it did not call for an answer. Hay understood that the powers were so strong and suspicious of one another that no one of them was in a position to challenge the Open Door; thus in the end, acquiescing in China’s territorial integrity. Equally important, as countries sought seeking alliances, no wanted to unnecessarily offend the United States, a rising star.
Foreign Policy l900-1920
American and Canal Zone Diplomacy
After the Spanish-American War, public interest of a canal in the Western hemisphere was revived
A.Roosevelt’s Big Stick or Cowboy diplomacy
A French company, headed by Ferdinand de Lesseps, builder of the Suez Canal, threatened to deny the American people the long dream of severing the two continents at Panama. After the French Canal Company had excavated two-fifths of the canal, the whole enterprise collapsed in scandalous ruin—a victim of incompetence, extravagance, disease, heat, and jungles. The collapse allowed President Roosevelt the opportunity to realize America’s dream of severing the Isthmus.
To understand Theodore Roosevelt’s opportunity we need to go back to the 1842 Clayton-Bulwer Treaty. In the treaty, the United States and Great Britain agreed that neither country could construct, hold or fortify a canal in the area that became Panama. It should also be mentioned that with the assassination of McKinley, Roosevelt want to prove he was not “his Accidency” but entitled to be president in his own right. Nothing he believed would prove this than “making the dirt fly” building a canal severing the isthmus and drastically cutting American miles and time to reach the Far East.
He pushed through the Hay-Pauncefote Treaty of 1901 with Great Britain abrogating the Clayton-Bulwer Treaty allowing the U.S. to honorably build, hold, and fortify a canal in this part of the world.
Following an American instigated revolution in Columbia, and recognition of Panama as a sovereign country the U.S. signed the Hay-Bunau-Varilla Treaty. The treaty had the following conditions:
1.The U.S. gave Panama a payment of 10 million dollars and $250,000.00 a year.
2.The U.S. received a canal zone of ten miles and granted extraordinary sovereign rights.
6.Dismayed with Cuban instability and the fear a major power might secure a foothold there, jeopardizing the Isthmus and the U.S., it-forced Cuba to sign the Platt Amendment, reversing the Teller Amendment, and making it a quasi-protectorate.
The Platt Amendment (1901):
a.Cuba could not make a treaty impairing her independence or permitting a foreign power to secure lodgment in or control over the island.
b.Cuba pledged not to incur indebtedness beyond her ability to pay.
c.The U.S. was at liberty to intervene for the purpose of preserving order and maintaining Cuban independence.
d.Cuba agreed to an American-sponsored sanitation program aimed at yellow fever, malaria, and other mosquito-related diseases (not so much for the Cubans but the Americans visiting and living in the Canal Zone).
e.Cuba agreed to sell or lease to the U.S. sites naval and coaling stations. [Guantanamo became the principal base].
The Roosevelt Corollary (1904)
Roosevelt’s Big Stick Diplomacy was also seen in his willingness to take on the role of a regional policeman. Following Spanish-American War and his canal diplomacy, he grew concern that a crisis between Venezuela and its creditors could spark an invasion of that nation by European powers. Therefore, he announced the Roosevelt Corollary in December 1904. The Corollary stated the United States would intervene as a policeman and last resort to ensure that other nations in the Western Hemisphere fulfilled their obligations to international creditors, and did not violate the rights of the U.S., or invite “foreign aggression detrimental of the entire body of American nations.
Santa Domingo (1905) was the first example of an attempt to enforce the Roosevelt Corollary. By 1904, after an orgy of murder and civil war the Dominican Republic was bankrupt. Roosevelt feared the four principal European nations with investments might forcibly attempt to collect their debts. Such attempts, especially if countries decided to remain after retrieving their losses, would violate the Monroe Doctrine and jeopardize America’s interests, forcing the United States in an all our war. Such insurrectionary habits of “these wretched republics” imposed certain responsibilities on the United States. In short, Roosevelt believed he could not permit the foreign powers to collect their alleged debts by force. America had a mandate to intervene and compel these reluctant republics to pay their bills.
Under the Corollary, the U.S. forced the Dominican Republic to invite the U.S. in and take over the revenue-producing customs houses. Santa Domingo retained 45% of the customs for Dominican expenses and the U.S. allocated 55% for its outstanding indebtedness. Such a radical assumption of power, Congress initially balked at the corollary but by 1907 got on board with a new treaty with the Dominican Republic.
Another important example of Roosevelt’s “Walk softy but carry a big stick” foreign policy occurred following the Russo-Japanese War, (1904-1905). U.S. relations with both Russia and Japan were strained over their failure to secure certain spoils of war.
The war developed from Russia and Japan’s rivalry for dominance in Korea and Manchuria. After the First Sino-Japanese War, Japan acquired the Liaodong Peninsula from China, but European powers forced Japan to return it. China subsequently leased it to Russia. During the Boxer Rebellion, Russia had thrown troops into Manchuria, ostensibly to protect Russian lives and railroad interests.
Despite repeated and insincere promises to withdraw, they were still there in l904. Equally important, the trans-Siberian Railroad was nearing completion and Russia stalled until the last stake was driven. Once completed the Russians could ship large quantities of military supplies to attack the Japanese. Aware that the Russian bear was not going to withdraw, the Japanese launched a damaging “sneak” attack on the Russian fleet at Port Arthur, Manchuria. At the outset, American sympathies went out to the “clever little Nipponese.” America’s former Secretary of State, Elihu Root praised the Japanese for showing how to fight a “bully.” Americans would not feel the same with the Japanese attack on Pearl Harbor in 1941.
By the spring of 1905, the Japanese, running dangerously short of men and money, secretary invited President Roosevelt to act as a mediator. He agreed after some hesitation and brought to two belligerents to the negotiating table at Portsmouth, New Hampshire in August of 1905.
Results of the treaty:
The Japanese demanded the Siberian island of Sakhalin and a huge monetary indemnity of $600 million dollars to cover the cost of the war. In the end Japanese did not get $600 million dollars and all of the Siberian island of Sakhalin, It did settle for the southern half and wrested from Russia the Southern Manchurian Railway, and virtually hegemony over Korea in the Katsura Memorandum. Katsura Memorandum (1908) was an agreement of understanding that America recognized Japanese “suzerainty” over Korea. It instructed the state department to direct any inquiries about Korea and from Korea to the Japanese government.
Beyond the treaty, American relations with Japan soured following the war resulting in a second xenophobic episode of the “Yellow Peril.” Attempts to segregate Japanese students in the San Francisco public schools created a saber-ratting exchange between the two governments. To prevent a deeper foreign relations crisis between the two countries, Roosevelt invited the entire board of education and the mayor (under indictment for graft) to the White House where he used his charm to convince them to back off their anti-Japanese activities and allow him to deal with the problem.
Roosevelt understood that behind the attempt to create a caste system for Japanese students in the school system was the desire by Californians to stop the immigration of Japanese, period. To ameliorate this problem, he issued the Gentleman’s Agreement.
Under the Gentlemen’s Agreement:
a. The Japanese agreed to issue no more passports to coolies coming directly to the mainland of the United States.
b. The San Francisco Board of Education rescinded the objectionable school order, and the tensions eased.
c. Japanese immigration under the agreement dwindled to a trickle.
d. Japanese could still go to the Hawaiian Islands.
Following the Gentleman’s Agreement, the U.S. signed one other important agreement with the Japanese, the Root-Takahira Agreement.
The Root-Takahira Agreement between the United States and Japan contained the following points.
Both the U.S. and Japan subscribed to the policy of maintaining the status quo in the Pacific area.
Mutual respect of each other’s territorial possessions in that region of the world.
Uphold the Open Door in China.
Support by peaceful means the “independence and integrity of China.”
To demonstrate that America acted out of fairness and not fear, Roosevelt sent the “Great White Fleet” around the world by from 16 December 1907 to 22 February 1909. The fleet consisted of sixteen new battleships of the Atlantic Fleet and painted white except for gilded scrollwork on their bows.
Both the Katsura Memorandum and the Root-Takahira Agreement reflected Roosevelt’s belief in the United States obligation to become internationally involved in world affairs.
Delivery-Partner Delivery Service Proposal
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Professor
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Date
Delivery-Partner Delivery Service Proposal
Executive summary
Delivery-Partner is an online based delivery service specializing in delivery of good bought from online store. The business is a service provider linking online store and their consumer to help overcome the challenges that have been experienced with traditional delivery companies. the business will hive both online existence and virtual existence and will use store located close to bust terminal or easily accessible points where good will be dropped and the customers can pick them up easily and conveniently. The delivery service will be offered to both business and consumers thus serving B2B consumers and B2C consumers. this proposal analyses the viability of this business in the industry using a SWOT analysis and proposes a marketing strategy the will enable the company to gain a market share in the delivery industry.
Contents
TOC o “1-4” h z u HYPERLINK l “_Toc332080787” Introduction PAGEREF _Toc332080787 h 3
HYPERLINK l “_Toc332080788” Company overview PAGEREF _Toc332080788 h 3
HYPERLINK l “_Toc332080789” Vision PAGEREF _Toc332080789 h 3
HYPERLINK l “_Toc332080790” Mission PAGEREF _Toc332080790 h 4
HYPERLINK l “_Toc332080791” Company organization PAGEREF _Toc332080791 h 4
HYPERLINK l “_Toc332080792” Management PAGEREF _Toc332080792 h 4
HYPERLINK l “_Toc332080793” Staffs PAGEREF _Toc332080793 h 4
HYPERLINK l “_Toc332080794” Operation model PAGEREF _Toc332080794 h 4
HYPERLINK l “_Toc332080795” Outsourcing PAGEREF _Toc332080795 h 5
HYPERLINK l “_Toc332080796” Marketing PAGEREF _Toc332080796 h 5
HYPERLINK l “_Toc332080797” Market Segmentation PAGEREF _Toc332080797 h 5
HYPERLINK l “_Toc332080798” Market definition PAGEREF _Toc332080798 h 5
HYPERLINK l “_Toc332080799” Marketing strategy PAGEREF _Toc332080799 h 6
HYPERLINK l “_Toc332080800” SWOT analysis PAGEREF _Toc332080800 h 6
HYPERLINK l “_Toc332080801” The 4Ps PAGEREF _Toc332080801 h 7
HYPERLINK l “_Toc332080802” Product PAGEREF _Toc332080802 h 7
HYPERLINK l “_Toc332080803” Place PAGEREF _Toc332080803 h 7
HYPERLINK l “_Toc332080804” Price PAGEREF _Toc332080804 h 7
HYPERLINK l “_Toc332080805” Promotion PAGEREF _Toc332080805 h 8
HYPERLINK l “_Toc332080806” Financials PAGEREF _Toc332080806 h 8
HYPERLINK l “_Toc332080807” Capital estimation PAGEREF _Toc332080807 h 8
HYPERLINK l “_Toc332080808” Fixed Assets PAGEREF _Toc332080808 h 8
HYPERLINK l “_Toc332080809” Transportation PAGEREF _Toc332080809 h 9
HYPERLINK l “_Toc332080810” Human Resources PAGEREF _Toc332080810 h 9
HYPERLINK l “_Toc332080811” Technology setup PAGEREF _Toc332080811 h 9
HYPERLINK l “_Toc332080812” Miscellaneous PAGEREF _Toc332080812 h 9
IntroductionOnline business is among the fastest growing forms of business around the world. According to internet world statistics, internet usage worldwide rose by 400% between 2000 and 2010. This is an interesting development which undoubtedly encourages many service providers and sellers of commodities to sell the merchandise online. In most instances, companies or business are establishing B2C business creating web stores or online stores that sell commodities directly to customers. B2B which involves business selling goods or services to other business is also common. There is also an increase in the number of companies that have restricted their operation on the internet alone. All these companies encounter numerous challenges when it comes to delivering physical goods to customers. There are several delivery service which in unfortunately increase the cost of delivering good to the customer thus in turn increasing the costs incurred by the sellers. As usual this cost are also transferred to customers who end up parting with more that they intended or would have wished to acquire a product. This business proposal proposes a delivery business model that aims at enhancing the delivery process, increasing efficiency and convenience, and reducing the costs involved in the delivery of the goods.
Company overviewIn a nutshell the idea is to put up a delivery business that will act as an intermediary between online shop, e-shop, e-store, Internet shop, web-shop, web-store, online store, or virtual stores and their customers. The key elements of this business will be faster delivery and affordability.
VisionDuring the firsts year of operation the business will aim at gaining a good reputation by offering affordable prices, unbeatable customer service and fast delivery.
The company will also realize long term business partnership with online shops, e-shop, e-stores, Internet shops, web-shops, web-stores, online stores, or virtual stores and achieve a steady cash flow.
MissionTo be a trusted and reliable delivery service worldwide.
Company organizationManagementThe business will sue the service of a qualified manager with minimum of an MBA. The manager will have an assistant who will have a minimum of a bachelor’s degree in management.
StaffsThe other member of staff the will be instrumental provision of our services will be there office assistant, a receptionist, five drivers, and ten potters.
Operation model
The business will adopt an operation model that is both convenient to the online store and their buyers. Be an online business, customers purchasing goods online will have the option of choosing our delivery service while purchasing their good from an online store. When a customer chooses our delivery service he/she will be directed to our website where they will be requested to enter their information: name, cell phone number, email address, the order number of the goods bought from the online store, customer location and desired point of collection. Once this information has been entered, the customer will be directed to checkout where they will pay a nominal fee. In turn the customer will receive a receipt for payment both as a main in the email and as a SMS in his/her phone. Once the information is received in our system, the office assistant will issue it to the driver the details. The driver using the information will collect the goods from the physical location or warehouse of the online store and deliver it to the customers preferred collection point. When the customers go to the collection point, they will be required to produce some form of identification, the SMS receipt for payment of the goods or a print out of the receipt emailed to their mail.
OutsourcingThe business will outsource warehousing and storage services. These services will be outsourced from stores located close to bus terminals or easily accessible place in urban and suburban areas. it is these storage point or warehouses that the customers will chose from when selecting their convenient collection point.
MarketingMarket SegmentationThis section focuses on establishing the various divisions in the market consisting of groups with different needs. The main segmentations are buyer of fragile goods and the not fragile goods. Fragile goods such as electronics will require extreme care to ensure that they arrive in proper condition
Market definitionIn short, delivery-partner will focus on online sellers who want to minimize the cost the incurred in paying delivery companies to deliver goods to their customers and online shopper who want to minimize the amount to money the pay to have the goods they have purchase online delivered. Many shoppers incur expense up to 20% over what they paid for their goods. Delivery expenses incurred by online sellers also increase the operation costs. However this service will be a double edged sword cutting costs incurred by both the sellers and the buyer.
Marketing strategyIn order for delivery-partner to be successful, a functional marketing strategy must be used. A marketing strategy is an instrument that will evaluate the resources at our disposal and use them publicize our delivery service to give it a competitive advantage over its competitors. It consists of various market analysis instruments that will provide information necessary to create a functional marketing strategy. The analysis strategy will be SWOT analysis examining both internal and external dynamics of the business (Kern, 3). Using the SWOT analysis results the marketing strategy will emphasis the use of the 4Ps to reach the target market (Barker & Charles, 138).
SWOT analysis
Strengths Weaknesses
Strong business model.
Affordable service.
Reliable and convenient service. Little difference from other delivery services.
Since this is a competitive segment, the market share growth is limited
The brand might be dependent on endorsement by online sellers.
Opportunities Threats
There is great room for geographical expansion.
Online shopping is growing since many people are opting to shop online.
Many online shopper and seller need affordable and reliable delivery services. Stiff competition from already developed companies.
Continuous increase in oil prices will have a strong impact on delivery costs
Low operating costs will continue to encourage new entrants to join the industry.
The 4PsProduct
Product stands for the good or service that a business offers to the consumers. The product should meet the needs of the market segment that it intends to serve (Barker & Charles, 139). The product we offer to consumers is a delivery service the will ensure that they can receive goods purchase from online store at their convenience. There are many delivery service companies delivering goods to buyers worldwide. However, our service is different from what the other organizations offer. Our service will involve collecting goods bought from the sellers warehouses and taking to convenient store close to bus terminals where the buyers can pick the on their way home. Good can also be take to stores of customers’ choice where they can be accessed easily.
Place
Place stand for the location where the business can be found (Barker & Charles, 140). Our business will be online, and our clients will be able to reach us through our website. The will be able to order for our delivery services online. Other contact will also be on the website. These include our fax, email and telephone number. The business will also have a physical location where we will have an office with staff to act on the customs instructions. The other physical locations for our company will be our outsourced collection points.
PricePrice is what we will charge our customers for the services we provide them (Barker & Charles, 141). Price must be high enough to meet the costs of operation and low enough to attract customers to our services. At the start however we will not be keen at making the price. We will take penetration pricing strategy which will involve deliberately offer services at low prices to attract customers to use our delivery services. Once the business gets a ‘toehold’, our pricing strategy will change to a cost plus pricing strategy. This is common pricing strategy which involves totaling all cost involved in delivering the service the adding a margin for profit.
Promotion
Promotion involves making customers aware of the product (Barker & Charles, 142). When choosing a pricing strategy we will base on the target market and the cost incurred in creating the awareness. Since the business will start as a localized service provide operating only in a limited geographical area, advertisements will be conducted in local newspapers, radio stations, yellow pages, billboards and by word of mouth. Advertisements will also be conducted on the websites of the most popular online sellers in the area. Social media will also serve a s tool for advertising the business and popularize it.
FinancialsDelivery partner not only require online start up, but will also need a brick and mortar set up. The set up for the business will be minimal to enable realistic growth in future. The setup will cover a single metropolis and then incrementally take on strategic location in neighboring metropolitans.
Capital estimation
The initial set up will be based on renting space rather than buying it or building our own. This will certainly enhanced the flexibility of the business. For startup we will need the following:
Fixed AssetsA corporate center in New Jersey which will serve as the hub management, and monitoring and business development
Office furniture and computers
Outsourced storage or warehousing around the 50 bus terminals in the city.
TransportationWe will be equipped with four vans for collecting goods for sellers’ warehouse service providers to customers’ collection points.
Human ResourcesThe business will have Manager, an assistant manager, an ICT specialist, three office assistants a receptionist and five drivers, and ten porters.
Technology setupTechnological setup will include 7 computers of which three will be used by the top management and three by the office assistant to monitor movement of goods as well as track the customer orders for delivery. On e of the computers will be lead to the reception desk. We will outsource webhosting service from a reliable webhosting service provider.
MiscellaneousThis includes all other costs incurred in operating the business such as the inventory costs.
Start up and operational costs.
Investment Rate ($) Number Time (In Months) Total
Coordination office 400 pm 1 12 4800
Storage space (outsourced) 250 pm 10 12 30000
Total Infrastructure 34800
Transport Vans (Used Vans) $2,495 7 17465
Office Car 1 3000
Total Transportation Assets 20465
Manager 42000 1 12 504000
Assistant Manager 30000 1 12 360000
ICT specialist 25000 1 12 300000
Office Assistants 18000 3 12 648000
Receptionist 15000 1 12 375000
Drivers 15000 5 12 720000
Potters 15000 10 12 1800000
Total Human Resource Cost 4707000
Computers 200 7 1400
Website Setup 1000 1000
Webhosting 10 10
Internet $50 50
Software 40 40
Total ICT infrastructure Cost 2500
Vehicles 50000 50000
IT infrastructure 10000 10000
Total Maintenance cost 60000
Miscellaneous 20000 20000
Miscellaneous 20000
TOTAL 4844765
Funding sources
EMBED MSGraph.Chart.8 s
References
Barker, Rachel. & Charles, George. Integrated Organisational Communication. Cape Town : Juta Academic, 2006.
Internet World Statistics. Internet Usage Statistics: The Internet Big Picture World Internet Users and Population Stats. Web. August 7, 2012 HYPERLINK “http://www.internetworldstats.com/stats.htm” http://www.internetworldstats.com/stats.htm
Kern, Russell. S.U.R.E.-Fire Direct Response Marketing: generating business-to-business sales leads for bottom-line success. New York: McGraw-Hall, 2001.
