How Did The Federal Government Promote Economic Development

Following Reconstruction, the U.S. federal and state governments became increasingly involved in the economy through measures that promoted industrial and agricultural development.
With Republican support, tariffs were enacted to protect American industry from foreign manufacturing competition. This gave U.S. manufacturing industries an economic edge and allowed them to charge higher prices. The Republicans also pursued an economic agenda that included paying down the national debt (which can strengthen or stabilize currency value) and they brought about a return to the gold standard which was favorable for industrialists and bankers. As the power and wealth of banks and Wall Street financiers was supported, they, in turn, invested vast sums in industrial and agricultural development.
State governments in the North became increasingly involved in the economy by creating public works programs that provided jobs. State governments also granted corporate charters. Police were used to break up strikes. Both state and federal courts were tending to favor industry in
Government support of railroad companies and rail development brought about immense changes and contributed greatly to the growing U.S. economy, industrial, and agricultural development. The government passed the Pacific Railroad Acts which commissioned the completion of transcontinental railroads. These transcontinental railroads created a national economic marketplace and connected the industrial factories of the East with the rich resources of the West. The government also provided railroad companies huge tracks of land to sell at profit as well as money grants and bonds. Legal trusts were formed which expanded the power and wealth of industrialists. The trains allowed for the quick shipment of raw materials and manufactured goods across the country, as well as the transportation of settlers to the