The beard trend has been better observed with British culture of the mid 19th Century. The British Army is thought to have spurred on this trend. Before 1854*, most members of the British Army were banned from growing facial hair (apart from several who could grow moustaches). At this time, bare faces were viewed as unmanly and juvenile in much of Indian culture. In 1854, moustaches were made compulsory for members of the East India Company's Bombay Army.

From 1853 - 1856 Britain was embroiled in the Crimean War. During this war, especially the Siege of Sevastopol, shaving supplies were particularly hard to come by. For this reason, uniform requirements like shaved faces were relaxed. Many of these soldiers returned home with facial hair of some variety. This corresponds well to the rise of facial hair as a fashion trend. In 1860 moustaches were actually mandated as part of the British Army uniform (the French and Russian militaries already had similar regulations for some time before this).

So this craze seems to have begun in Britain. It is thought to have spread across the Atlantic through fashion plates from British magazines. Americans were avid readers of these magazines, keen to adopted the latest European fashion trends.

This trend continued in force really until the production of disposable razors which were ironically safer and cheaper than the safety razors used pre-1850.

If you want any further sources "Of Beards and Men" by Christopher Oldstone-Moore is quite specific and indepth. (http://press.uchicago.edu/ucp/books/book/chicago/O/bo20949601.html).

For a more general and basic understanding I recommend this article by the BBC: http://www.bbc.com/news/magazine-30037914

*edit: 1854 not 1954

I've just posted an in-depth answer about the popularity of beards and facial hair among white, male, Westerners during the 19th century in this thread.