rise of big businesses in the United States
According to Richard White, the rise of big businesses in the United States was contributed by investment in transcontinental railroads rather than what is depicted in the commonly accepted story. The government liberality of providing money and land acted as driving forces to propel the projects and attract capitalists to invests. The Pacific Railway Act of 1862 created a structure of land grants and loan guarantees to companies constructing the roads. As a result, two corporations, the Central Pacific and California Corporation, secured the right to construct the railroads from the west. Construction of transcontinental railroads induced the local investors to establish local railroads with significant help from the state to finance existing commerce. Additionally, the railroads received money from sales of land to settlers to pay off their debts and create new customers, thus increasing revenue. Consequently, the development of transcontinental railroads also contributed to establishing a contract and financial institutions, which played a pivotal role in the rise of businesses.
Why were there still some obstacles between the business people and the government bond even after the new Pacific Railway Act of 1864, which aimed at mitigating the obstacles?