The Research On The United States’ First Wave Of The Mergers And Acquisitions From1873to1904

In the history of the United States, the First Wave of the Mergers and Acquisitionswas of remarkable social and economic significance. It was produced in the specifichistorical conditions, and was the result of capitalists’ competing with each other inpursuit of profit maximization in the capitalist society. So the First Wave of the Mergersand Acquisitions was of the historical inevitability of economic development. Meanwhile,it was the history of the formation of monopolies, and marked the American capitalismby free competition stage into monopoly stage, and the imperialist era coming. After thefirst merger wave among enterprises, the variety industries were controlled by one or twolarge enterprises, i.e. so-called American consortiums, which controlled the Americannational economic lifeline.In this article, the writer systematically discussed the historical background,development situations and some characteristics of this wave from the angle of economichistory research, and then concluded that the United States’ First Wave of the Mergersand Acquisitions had important influence on the development of American economy.In the first part of the article, the author mainly analyzed the background of the firstenterprises merger wave. After the American Civil War ended, the outbreak of thetechnological revolution in the1870s, railway laying and expansion, the government’shigh tariffs trade protectionism and laissez-faire free competition, and the developmentof capital market were the mainly four elements which resulted in the first enterprisesmerger wave. In the second part of the article, the writer systematically expounded thefour development stages those consisted of simple agreements, pools, trusts and theholding companies of the climax stage. In addition, the causes, status and classical casesin each stage of development, as well as the relationship between the Sherman AntitrustLaw and1893-97economic depression and the wave were discussed and analyzed deeply.In the last part, the author stated the influence of the first wave on the U.S. economy andfinally summarized that the First Wave of Mergers and Acquisitions between1873and1904in the United States made a great promotion for American economic to rise and tocatch up with England in the late19thcentury and early20thcentury. It was of far-reaching influence for American economic development and prosperity in the future.