Chasing the Santa Fe Ring: Power and Privilege in Territorial New Mexico

1: The Gilded Age, East and West

1 Chapter One THE GILDED AGE, EAST AND WEST Y S amuel Langhorne Clemens and Charles Dudley Warner did not invent the syndrome of values and aspirations that characterized the period between the Civil War and the turn of the century, but in a satiric novel of contemporary society, they gave it a name: The Gilded Age. In truth, the postwar boom in industrial development, speculation, and large living was not all that far along when the book was published in 1873, but Clemens— Mark Twain—and Warner had seen enough to portray some of its more egregious features. Creating a caricature in words, they drew attention to the unbridled pursuit of wealth, an increasing penchant for speculation, the ostentation of the newly rich, and the discovery of “Beautiful credit!” as a foundation of modern society.1 Historians of post–Civil War America have been faulted for too great a reliance on the cynical view expressed in the novel, but there can be little doubt that the authors had identified some signal characteristics of the period. Enterprise and Exploitation Fueled by the second Industrial Revolution and continuing waves of immigration , the postwar period saw unprecedented growth in population and manufacturing. In the industrial Northeast, and then in the Midwest, cities mushroomed. In the 1860 census, the ten largest U.S. cities had a combined population of fewer than three million. By the end of the century, New York alone had more than 3.4 million residents, and the total for the largest ten had grown more than three times. The proportion of urban residents doubled from 20 percent to 40 percent, while rural residents declined from 80 percent of the population to 60 percent and falling.2 During the same period, demand for fuels soared. The American steel industry was born, and by the early 1900s it had grown to strapping proportions, leading all other Chapter One 2 producers in the world. Manufacturing also grew rapidly, increasing fourfold between 1870 and 1900.3 With all of their problems and possibilities, the nation ’s industrial cities grew up, attracting waves of immigrants, along with many of the rural poor who chose the city over a hazardous and uncertain journey to the frontier West. With growth in population and productivity came corresponding expansion of wealth and income. By one estimate national wealth, the sum of tangible assets to which a dollar value could reasonably be assigned—just over $16 billion in 1860—had grown to more than $88 billion by 1900.4 Estimates of national and personal income showed similar gains. Boats of all sizes rose with the tide of increasing income and wealth, but they did not rise at the same rate, and many who were struggling lost their boats. Spectacular fortunes were made by some, and less spectacular but still substantial fortunes were made by thousands of others. The emergence of an economy in which manufacturers could produce inexpensive goods for national and international markets created opportunities all along the chain of production—in mineral extraction and production of steel and other basic materials, in manufacturing and transportation, and in finance. The achievements and wealth of men like John D. Rockefeller, Andrew Carnegie, and Cornelius Vanderbilt are the stuff of legend, and they helped put a human face on the phenomenon by which men of ordinary means amassed incalculable fortunes. Opulent homes and lifestyles provided visual evidence of fabulous wealth and prestige, inspiring ambition in some, envy or scorn in others. The rapid economic growth of the Gilded Age was made possible by advances in technology and transportation, but companies and capitalists also benefited from a favorable regulatory climate and a tax system that supported accumulation of personal wealth. Congress was slow to react to complaints concerning monopolistic practices, and its members were equally reluctant to assumeamoreactiveroleinmanagementoftheeconomy.OfficialWashington took its time in addressing the grievances of an increasingly vital and vocal labor force. Urban problems festered for decades in the absence of any significant response on the part of the government. Moreover, the U.S. Supreme Court, during the interval between the Civil War and the new Progressive Era, maintained a posture that was notably friendly to business, rendering key decisions that deflected threats to corporate power. The rise of corporations holding unprecedented sway over markets and labor created new opportunities for their chiefs to exploit and manipulate The Gilded Age, East and West 3 on a grand...