history of these gifts and their relation to the political leaders that engineered them would alone fill a large and interesting volume.

Railway Fortunes and Capital. Out of this gigantic railway promotion, the first really immense American fortunes were made. Henry Adams, the grandson of John Quincy Adams, related that his grandfather on his mother's side, Peter Brooks, on his death in 1849, left a fortune of two million dollars, supposed to be the largest estate in Boston," then one of the few centers of great riches. Compared with the opulence that sprang out of the Union Pacific, the Northern Pacific, the Southern Pacific, with their subsidiary and component lines, the estate of Peter Brooks was a poor man's heritage.

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The capital invested in these railways was enormous beyond the imagination of the men of the stagecoach generation. The total debt of the United States incurred in the Revolutionary War - a debt which those of little faith thought the country could never pay - was reckoned at a figure well under $75,000,000. When the Union Pacific Railroad was completed, there were outstanding against it $27,000,000 in first mortgage bonds, $27,000,000 in second mortgage bonds held by the government, $10,000,000 in income bonds, $10,000,000 in land grant bonds, and, on top of that huge bonded indebtedness, $36,000,000 in stock — making $110,000,000 in all. If the amount due the United States government be subtracted, still there remained, in private hands, stocks and bonds exceeding in value the whole national debt of Hamilton's day — a debt that strained all the resources of the Federal government in 1790. Such was the financial significance of the railways.

Growth and Extension of Industry. In the field of manufacturing, mining, and metal working, the results of business enterprise far outstripped, if measured in mere dollars, the results of railway construction. By the end of the century there were about ten billion dollars invested in factories alone and five million wage-earners employed in them; while the total value of the output, fourteen billion dollars, was fifteen

times the figure for 1860. In the Eastern states industries multiplied. In the Northwest territory, the old home of Jacksonian Democracy, they overtopped agriculture. By the end of the century, Ohio had almost reached and Illinois had surpassed Massachusetts in the annual value of manufacturing output.

That was not all. Untold wealth in the form of natural resources was discovered in the South and West. Coal deposits were found in the Appalachians stretching from Pennsylvania down to Alabama, in Michigan, in the Mississippi Valley, and in the Western mountains from North Dakota to New Mexico. In nearly every coal-bearing region, iron was also discovered and the great fields of Michigan, Wisconsin, and Minnesota soon rivaled those of the Appalachian area. Copper, lead, gold, and silver in fabulous quantities were unearthed by the restless prospectors who left no plain or mountain fastness unexplored. Petroleum, first pumped from the wells of Pennsylvania in the summer of 1859, made new fortunes equaling those of trade, railways, and land speculation. It scattered its riches with an especially lavish hand through Oklahoma, Texas, and California.

The Trust an Instrument of Industrial Progress. Business enterprise, under the direction of powerful men working single-handed, or of small groups of men pooling their capital for one or more undertakings, had not advanced far before there appeared upon the scene still mightier leaders of even greater imagination. New constructive genius now brought together and combined under one management hundreds of concerns or thousands of miles of railways, revealing the magic strength of coöperation on a national scale. Pricecutting in oil, threatening ruin to those engaged in the industry, as early as 1879, led a number of companies in Cleveland, Pittsburgh, and Philadelphia to unite in price-fixing. Three years later a group of oil interests formed a close organization, placing all their stocks in the hands of trustees, among whom was John D. Rockefeller. The trustees, in

turn, issued certificates representing the share to which each participant was entitled; and took over the management of the entire business. Such was the nature of the "trust," which was to play such an unique rôle in the progress of America.

The idea of combination was applied in time to iron and steel, copper, lead, sugar, cordage, coal, and other commodities, until in each field there loomed a giant trust or corporation, controlling, if not most of the output, at least enough to determine in a large measure the prices charged to consumers. With the passing years, the railways, mills, mines, and other business concerns were transferred from individual owners to corporations. At the end of the nineteenth century, the whole face of American business was changed. Threefourths of the output from industries came from factories under corporate management and only one-fourth from individual and partnership undertakings.

The Banking Corporation.

JOHN D. ROCKEFELLER

Very closely related to the growth of business enterprise on a large scale was the system of banking. In the old days before banks, a person with savings either employed them in his own undertakings, lent them to a neighbor, or hid them away where they set no industry in motion. Even in the early stages of modern business, it was common for a manufacturer to rise from small beginnings by financing extensions out of his own earnings and profits. This state of affairs was profoundly altered by the growth of the huge corporations requiring millions and even billions of capital. The banks, once an adjunct to business, became the leaders in business.

It was the banks that undertook to sell the stocks and bonds issued by new corporations and trusts and to supply them with credit to carry on their operations. Indeed, many of the great

mergers or combinations in business were initiated by magnates in the banking world with millions and billions under their

control. Through their connections with one another, the banks formed a perfect network of agencies gathering up the pennies and dollars of the masses as well as the thousands of the rich