hey are all allied and intertwined by their
various mutual interests. For instance, the Pennsylvania Railroad
interests are on the one hand allied with the Vanderbilts and on the
other with the Rockefellers. The Vanderbilts are closely allied with the
Morgan group.... Viewed as a whole we find the dominating influences in
the trusts to be made up of a network of large and small capitalists,
many allied to one another by ties of more or less importance, but all
being appendages to or parts of the greater groups which are themselves
dependent on and allied with the two mammoth or Rockefeller and Morgan
groups. These two mammoth groups jointly ... constitute the heart of the
business and commercial life of the nation." Such was the picture of
triumphant business enterprise drawn by a financier within a few years
after the memorable campaign of 1896.

America had become one of the first workshops of the world. It was, by
virtue of the closely knit organization of its business and finance, one
of the most powerful and energetic leaders in the struggle of the giants
for the business of the earth. The capital of the Steel Corporation
alone was more than ten times the total national debt which the apostles
of calamity in the days of Washington and Hamilton declared the nation
could never pay. American industry, filling domestic markets to
overflowing, was ready for new worlds to conquer.

=References=

F.W. Taussig, _Tariff History of the United States_.

J.L. Laughlin, _Bimetallism in the United States_.

A.B. Hepburn, _History of Coinage and Currency in the United States_.

E.R.A. Seligman, _The Income Tax_.

S.J. Buck, _The Granger Movement_ (Harvard Studies).

F.H. Dixon, _State Railroad Control_.

H.R. Meyer, _Government Regulation of Railway Rates_.

W.Z. Ripley (editor), _Trusts, Pools, and Corporations_.

R.T. Ely, _Monopolies and Trusts_.

J.B. Clark, _The Control of Trusts_.

=Questions=

1. What proof have we that the political parties were not clearly
divided over issues between 1865 and 1896?

2. Why is a fall in prices a loss to farmers and a gain to holders of
fixed investments?

3. Explain the theory that the quantity of money determines the prices
of commodities.

4. Why was it difficult, if not impossible, to keep gold and silver at a
parity?

5. What special conditions favored a fall in silver between 1870 and
1896?

6. Describe some of the measures taken to raise the value of sil