Lesson 1: Mining, Railroads, and the Economy

Key Idea

After the Civil War, the discovery of vast deposits of gold, silver, and other minerals spurred a massive migration to the American West. The most famous of these discoveries was the Comstock Lode in Nevada, which yielded enormous silver and gold fortunes. These strikes attracted thousands of prospectors and entrepreneurs hoping to get rich quick, dramatically increasing the population of western territories.

This rapid influx of people led to the creation of boomtowns, which were communities that sprang up almost overnight near mining sites. These towns were often characterized by their rapid growth, diverse populations, and a lawless atmosphere. The entire economy of a boomtown revolved around the mine, and when the minerals ran out, many of these towns were abandoned and became "ghost towns."

Key Idea

The rapid growth of mining towns often outpaced law and order, leading to crime and violence. In the absence of official police, groups of vigilantes sometimes took justice into their own hands. These communities were also filled with prejudice. Foreign miners, particularly from China and Mexico, faced hostility and discriminatory laws.

This push for resources also had devastating consequences for the land and its original inhabitants. Mining techniques polluted rivers and scarred the landscape. Furthermore, the flood of settlers onto lands belonging to American Indians broke treaties and sparked violent conflicts over territory.

Key Idea

The federal government viewed a transcontinental railroad as vital for uniting the country. However, the project was too expensive and risky for private companies to build on their own.

To encourage construction, Congress offered powerful incentives to railroad companies. These government subsidies included loans and, most importantly, huge land grants along the railroad's path.

Key Idea

The new national railroad network connected the country like never before. It moved raw materials from the West to eastern factories and carried manufactured goods to western markets. This connection fueled the growth of industries and cities across America.

Soon, powerful railroad companies grew by taking over smaller lines. To eliminate competition, they offered secret discounts called rebates to their biggest customers. They also formed pools, which were agreements to keep shipping prices high. These practices angered small farmers and business owners who relied on the railroads.