(1865 – 1900)

(1865 – 1900)

Gilded – covered in a thin layer of gold

Trends of this time period:

• Political Corruption

• Political Scandals

• Economic Depressions (Panic of 1873 & Panic of 1893)

• Labor Strikes (Haymarket Affair, Homestead Strike, & Pullman Strike)

• Big profits for business owners, while factory workers and farmers struggle

The Lollypop “Guild”

The Wizard of OZ

Book – 1900 Movie – 1905 & 1939

“Disputed” Election of 1876

President – Rutherford Hayes (R)

Vice President – William Wheeler

The U.S. Government’s Design “Separation of Powers”

Electoral Commission of 1876Why Formed: There were 20 “disputed” electoral votes from 4 states (Oregon, South Carolina, Florida, and Louisiana).

Original Electoral Vote Count: Rep. – Hayes (165) Dem. – Tilden (184) * Difference in votes – 19

Purpose: Determine which candidate gets the 20 disputed electoral votes.

Electoral Commission Members: 15 • Job Breakdown – 5 Senators, 5 House Reps., & 5 Supreme Courts Justices • Pol. Party Allegiance Breakdown – 7 Republicans, 7 Democrats, & 1 Independent

1 “Independent” – Supreme Court Justice David Davis:• Ran for the Senate and got elected • He was removed from the electoral commission and another member of the Supreme Court was put on the commission in his place. • Only members left on the Supreme Court to fill his position were republicans.• New Pol. Party Allegiance Breakdown – 8 Republicans & 7 Democrats

Electoral Commission’s Decision – Hayes gets the 20 disputed votes

Final Electoral Vote Count: Rep. – Hayes (185) Dem. – Tilden (184) * Difference in votes – 1

Rutherford B. Hayes

Nickname: “Rutherfraud” B. Hayes

What compromise did he have to agree with in order for him to get the disputed votes from the Electoral Commission?

Compromise of 1877

Terms:

1. The removal of all Federal Union troops from the former Confederate states that were in rebellion during the Civil War.

* Troops only remained in LA, SC, and FL., but the compromise finalized the process.

2. Hayes would appoint one Southern Democrat to his cabinet.

* David Key of TN. was appointed Postmaster General

3. The construction of another transcontinental railroad would be constructed through the south.

4. More laws to help “industrialize” the South.

Purpose: End the “Reconstruction” system in the south that took place after the Civil War and called for a Union / Federal military occupation of the former statesthat were in rebellion during the Civil War.

Special Note: Terms 1 & 2 were done, but 3 & 4 were not.

The “Great” Migration (1865 – 1900)

Red – states leaving from Blue – states going to

The “Great” Migration (1865 – 1900)“People on the move”

Why were they leaving the south?

#1 – Better Job Opportunities

# 2 – Mistreatment

The Great Migration (1865 – 1970)

Southern Lynchings (1865 – 1970)

The “Spoils” System

Developed By: President Andrew Jackson

What: Appointing people to a government job not for their qualifications, but for their loyalty and monetary contributions to you and your campaign.

Problem: Unqualified people with no political background are holding government jobs and are helping run the country.

Result: Corruption and scandal, which is one characteristic of the Gilded Age.

Hayes’ Stance: He wanted to end the spoils system.

Hayes’ Success: He had no success ending the spoils system.

Republican Party DivisionHalf-Breeds v. Stalwarts

Stalwarts – Republican group that wanted to see the spoils system remain in place.

Half-Breeds – Republican group that wanted to see the spoils system ended.

Importance: Because these 2 groups within his political party could not agree on this issue, nothing was done with the spoils system by President Hayes during his presidency.

Chester Arthur (Stalwart)

Roscoe Conkling(Stalwart)

James Blaine(Half-Breed)

James Garfield

Republican parties choice for the election of 1880.

Stalwart or Half-Breed Republican?

Election of 1880

President – James Garfield (R)

Vice President – Chester Arthur

James Garfield AssassinationJuly 2, 1881

Where: Washington railroad station.

Wound: Two gunshots in the lower back.

Medical Care: Doctors checked the wounds without washing their hands or sterilizingtheir equipment which caused his wounds to get infected. These infections and not the bullets themselves are what killed him.

Agony: He suffered in pain for 11 weeks before he died.

Died: September 19, 1881

Charles Guiteau Garfield’s Assassin

Why: He was angry that he was not given a job by Garfield under the spoils system.

“I am Stalwart and Arthur is now President.”- Charles Guiteau after he shot Garfield

Insanity?: This case was the first case in U.S. history in which an insanity plea was considered. He randomly recited poetry and asked for advice from members of the courtroom crowd.

Fate: Put on trial and sentenced to death by hanging.

Execution Date: June 30, 1882 Charles Guiteau (Stalwart)

New President

Chester Arthur(Stalwart)

* Garfield’s Vice President

Pendelton Civil Service Act (1883)

Terms:

• 15 % of all government jobs are classified

• Classified – You must pass a thorough examination before being appointed to any government office

Goal – Help end the spoils system

Special Note – Chester Arthur chose not to represent the Republican Party in the presidential election of 1884. James Blaine was selected to represent the RepublicanParty.

Election of 1884

President – Grover Cleveland (D)

Vice President – Thomas Hendricks

Interstate Commerce Act (1887)

Gov. Agency Created By This Act: Interstate Commerce Commission (ICC).

ICC’s Purpose: To regulate railroad shipping rates throughout the country.

* Shipping rebates were outlawed

ICC’s Targets: Rockefeller and Carnegie

ICC’s Success: 16 cases were brought before the U.S. Supreme Court by the ICC and they lost 15.

Who were the makers of this law trying to help?

Reasons:

1. Because farmers were not frequent customers. Railroad companies were less willing to give them deals on shipping rates.

2. Shipping rates were not published by railroad companies, therefore farmers had no way of knowing what shipping rate they were getting in comparison to others.

Puck Magazine Illustration (1896) Puck Magazine Illustration (1896)

Wizard of Oz Book Illustration (1900) Wizard of Oz Book Illustration (1900)

Election of 1888

President – Benjamin Harrison (R)

Vice President – Levi Morton

Sherman Anti-Trust Act (1890)

Terms: Monopolies are outlawed!

Problem with the Sherman Anti-Trust Act: Too vague

John D. RockefellerStandard Oil

Andrew Carnegie Carnegie Steel

Clayton Anti-Trust Act (1914)

Tariff?

Imports – products coming into the country.

Export – products leaving the country.

Tariff – a tax on an imported good.

Price – Tariff = Higher Price

Why does a tariff raise the price of a product?

McKinley Tariff Bill (1890)

Terms: It placed a higher tariff (48%) on all imported goods that are also produced in the U.S.

Imports that were not subject to this tariff: Not made in the U.S.

TeaCoffeeSpicesOpiumSugar

Goals:

1. Make U.S. made goods cheaper in comparison to foreign goods.2. Stimulate the U.S. economy because money is being spent in the country.

What type of people were severely hurt by the passage of this law?

Why were farmers hurt by the McKinley Tariff Bill (1890)?

What did other countries do with their tariff when the U.S. raised their tariff?

Why was it passed by state representatives in Congress from states with a high population of farmers (western and southern states)?:

Northern states agreed to pass the Sherman Silver Purchase Act.

How does this hurt American farmers?

U.S. farmers shipped their crops worldwide and now no one is wanting to buy the U.S. crops because they are more expensive

due to a raised tariff.

Farmers lost a lot of customers.

Paper Money(“Greenbacks” or Dollars)

Why is one more valuable than the other?

What determines the value of American paper money?

GNPGDP

Gross Domestic Product (GDP) Definition – The total (gross) value of all goods and services produced within a country (domestic) in given time period (usually 1 year)

“Measuring Stick” – It measures how good a countries economy is doing inside of its own country.

GDP

Gross National Product (GNP)Definition – The total (gross) value of all goods and services produced by a country, or businesses affiliated with that country, “world wide” in a given time period (usually 1 year)

“Measuring Stick” – It measures how good a countries economy is doing “world wide”. How much economic activity that country is responsible for throughout the world.

GNP

Which one determines the value of American money?

What used to determine the value of American money?

The more gold a country had, the more valuable it’s paper money was.

Coinage Act of 1873 “Crime of 1873”

Terms: Gold is the only metal that can be turned into coins in U.S. federalcoining mints.

Prior to law: Anyone could bring gold or silver into any federal mint to have the gold or silver turned into coins for a fee. They could take the coins and leave or they could choose to take a piece of paper (gold or silver certificate) which is based on the value of the metal they brought in to be coined.

• 1873 Federal Mint Silver Exchange Price: $1.29 per oz.

• Currency: These pieces of paper (certificates) could be used as money to buy things.

• Exchange: You could also exchange these certificates for gold and silver.

Unofficial Law – This law unofficially put the U.S. on the “Gold Standard”.

Meaning that American paper money is backed by gold only. No more silver.

Why a crime?

“Follow the yellow brick road.”

Who thought that this was a crime?

People of the west(farmers and miners)

Why?

There is now no reason to mine anything other than gold which had become very scarce. The metal that was most abundant out west was silver.

Coinage Act of 1873 “Crime of 1873”

Terms: Gold is the only metal that can be turned into coins in U.S. federalcoining mints.

Prior to law: Anyone could bring gold or silver into any federal mint to have the gold or silver turned into coins for a fee. They could take the coins and leave or they could choose to take a piece of paper (gold or silver certificate) which is based on the value of the metal they brought in to be coined.

• 1873 Federal Mint Silver Exchange Price: $1.29 per oz.

• Currency: These pieces of paper (certificates) could be used as money to buy things.

• Exchange: You could also exchange these certificates for gold and silver.

Unofficial Law – This law unofficially put the U.S. on the “Gold Standard”.

Meaning that American paper money is backed by gold only. No more silver.

Why a crime?

U.S. Gold Shortage (1873 – 1900)

Panic of 1873 – World Wide Economic Depression (1873 – 1877)

Domestic (U.S.) – People in the U.S. kept their gold and began exchanging their gold certificates for gold seeing that the gold certificates themselves had no value and the gold did. This lead to less gold being circulated in the U.S. economy which caused the value of American paper money to decrease.

Foreign (Other Countries) – Gold was only accepted by othercountries in the event of any sale because the value of Americanpaper money was declining. This lead to more gold leaving the U.S. economy and causing the value of American paper money to drop even further.

BAD! – This made the Panic of 1873 get much worse.

Little Big Horn “Custer’s Last Stand”

Date: 1876

Where: Montana (Little Big Horn River)

Sitting Bull

Sioux Chief Krazy Horse

Sioux Chief George CusterU.S. General 7th Cavalry

& V.

Why was General Custer here?

Laws of Supply and Demand

low supply (shortage) = high price

low demand = low price

high supply (surplus) = low price

high demand = high price

low supply + low demand = low price

low supply + high demand = high price

high supply + low demand = low price

high supply + high demand = fair price

Deflation v. Inflation Deflation – The value of the dollar increases (the dollar will buy you more). * Prices = decrease • On Gold Standard – The U.S. economy is in possession of less gold, making the gold more valuable, but makes the paper money backed by gold less valuable.

• Law of supply and demand?

Inflation – The value of the dollar decreases (the dollar will buy you less). * Prices = increase

• On Gold Standard – The U.S. economy is in possession of more gold, making the gold less valuable, but makes the paper money backed by gold more valuable.

• Law of supply and demand?

Farmer Loan Problems

Year # 1:

• Loan – $1,000.00 to be paid back next year

• Corn Price – $0.25 per ear (4 for $1.00)

• Corn production needed to pay back loan – 4,000 ears of corn

• Harvest sales expectation – 4,000 x $0.25 = $1,000.00

Hmmmmm………..

Farmer Loan Problems Next Year – Deflation Occurs (dollar will buy you more / price drop):

• Loan – $1,000.000

• Harvest corn price after deflation – $0.20 per ear (5 for $1.00)

• Your planned production to pay back loan taken – 4,000 ears of corn

• Price when loan taken – 4,000 x $0.25 = $1,000.00

• Harvest sales – 4,000 x $0.20 = $800.00

• Short on loan payback to bank – $200.00

• Result: Foreclosure or re-possession of farm

Free Silver Movement Goals:

1. Unlimited “coinage” of silver. 2. Bimetallism – “Coining” gold and silver and using both metals to back the value of paper money.

Desired Gold for Silver Exchange Ratio: 16 to 1 • 16 ounces of silver is equal in value to 1 ounce of gold.

Occupation of the supporters of this movement – farmers

Supporters of this movement – “Silverites”

Opponents of this movement – “Goldbugs”

What is the abbreviation for ounces?

Bi-Metallism

+ =

Bimetallism – “Coining” gold and silver and using both metals to back the value of paper money.

Basis of the Free Silver Movement

1.Adding more metal to the money supply in order to back the paper currency (greenbacks) will stabilize the value of the dollar and help control deflation and inflation.

2. If there is more metal being “coined”, there will be more money in circulation for people to use to buy goods and services. This will stimulate the economy which was very stagnant at the time.

Dorothy’s Ruby Red Slippers

What color were they in book?

Wizard of Oz Book Illustration (1900) Wizard of Oz Book Illustration (1900)

Start – Munchkin Land End – Emerald City

Silver States“Silverites”

What – States where the population is in favor of the free silver movement and bi-metallism.

Where: The west and the south.

Why these state? These states had a high population of farmers.

Gold States “Gold Bugs”

What – States where the population is not in favor of the free silver movement and bi-metallism.

Where: The northeast and mid-west.

Why these state? These states were highly industrialized and did not have a a high population of farmers.

Between the “gold state” region and the “silver state” region,

which one had the higher population?

Bland-Allison Act (1878)

Terms: The U.S. government will coin $2,000,000 in silver each month.

Sherman Silver Purchase Act(1890)

Terms: The U.S. government will coin $4,500,000 in silver each month.

Reminder –The congress members of the northern states agreed to passing this law if the congress members of the southern statesagreed to pass the McKinley Tariff Bill (1890).

The Populist Party Birth – 1892

Other Name – The People’s Party

“Populus” = “the people” (Latin)

Members – Farmers (black and white)

Goal – “Bridge” the gap between the industrial east and the

underdeveloped western “frontier”.

“Group Hug”

Populist Party Platform1. Unlimited coinage of silver – There should be no set amount

as there is under the Bland Allison Act (1878) and the Sherman Silver Purchase Act (1890).

2. Progressive income tax – The more you make the higher your taxes will be.

3. Government ownership of the railroads – Regulation of railroad companies and the shipping rate they offer.

4. Shortened work day – 8 hour workday.

What type of people are helped by each one?

The Greenback Party (1875 – 1884)

Political Platform – Did not want to see money backed by any metal, because it allows the government to control the value of paper money and price (deflation and inflation) by controlling the amount of metal that can be coined into money.

Solution – The government should just print more money (greenbacks) and let the economy itself set the value of the paper money and not the government.

Greenback Presidential Candidates:

1. Peter Cooper (1876)2. James Weaver (1880)3. Benjamin Butler (1884)

The Greenback Party dissolved in 1884 after losing the election of 1884. Members of this party joined and helped form the Populist Party.

Other Populist Groups:

Farmer’s Alliance, Black Farmer’s Alliance, & The Grange

Election of 1892

President – Grover Cleveland (D)

Vice President – Adlai Stevenson

Populism’s Popularity 1892 Election Results

1. Populist Candidate James Weaver’s Vote Count – 1,000,000

2. Weaver’s electoral votes – 22 (5 %)

3. States won by Weaver – Idaho (3), Nevada (3), Colorado (4), Kansas (10), Oregon & N. Dakota split their electoral votes proportionally rather than winner take and Weaver got one electoral vote from each state.

4. Populist Senators Elected – 3

5. Populist House Representatives Elected – 11

Grover Cleveland’s Popularity

He was not liked by the Populists because he repealed (overturned) the Sherman Silver Purchase Act (1890). This was blamed for being a cause of the Panic of 1893 or the Depression of 1893.

The Washington Monument

Where: Washington D.C.

William Jennings Bryan

Home: Nebraska

Personal Background:

1. Farmer2. Presbyterian Minister

Political Party – Democrats Political Background:

1. House Rep. (1890 – 1894) 2. Ran for Senate in 1894 and lost

New Political Party – Populist

Bryan’s Nicknames

1. “Great Commoner”

2. “Boy Orator of the Platte”

3. “Prairie Avenger”

4. “Silver Tongue”

William Jennings Bryan

Campaign Effort: Traveling Campaign:

1. States Visited – 27

2. Miles Traveled – 18,000

3. Speeches – 600 (36 in one day)

4. Audience – 3,000,000 people

July 9, 1896 After giving his famous GoldCross speech at the Democratic National Convention in Chicago.

Leader: William Jennings Bryan

“You shall not press down upon the brow of labor a crown of thorns, you shall not crucify mankind upon a cross of gold.”

Political cartoon from Harper’s Weekly Magazine (1896)

Democratic Party Platform1. Bimetallism over monometallism

2. Gold to silver ratio where 16 ounces (oz) of silver is equal to 1 ounces (oz) of gold.

3. Unlimited coinage of silver or tuning mined silver into to coins for the purpose of buying something.

4. Opposition to international tariffs.

5. No income taxes or a progressive income tax.

6. Reduction of the number of people working for the government in “useless” positions, because their salaries are paid by American’s tax dollars.

7. No more federal government interference in state government affairs.

8. Government control of railroads.

Democratic Party Platform 9. No more denial of U.S. soldiers pension’s (retirement funding).

10.The territories of New Mexico, Okalahoma, and Arizona now become states.

11.The Alaska territory gets one delegate to represent them in Congress.

12.The U.S. upholding the Monroe Doctrine (1823), which stated that European countries should stay out of the Americas and that the U.S. will stay out of European affairs and their colonies.

13.Sympathy for the Cuban people in their struggle for independence against Spain.

14.End the spoils system which creates “life” service for government officials.

15.Limiting the U.S. President to two terms of office.

16. Improvement of major U.S. waterways to provide an alternate way to ship goods and travel.

William McKinley

1896 Campaign Effort: “Front Porch Campaign”

Leader: William McKinley

Wizard of Oz Book Illustration (1900) Wizard of Oz Book Illustration (1900)

Republican Party Platform 1. High tariff on imported goods in order to protect American industry.

2. Fight to lift foreign tariffs placed on American goods shipped to other countries and trade restrictions with other countries.

3. Restoring the Merchant Marine to help protect American ships of commerce (trade).

4. Monometallism (using the gold standard only).

5. Fair and honorable treatment of U.S. military veterans.

6. Help Cuba in their fight for independence against Spain.

7. Enlarging the U.S. Navy to provide adequate defense of seacoast.

8. The thorough enforcement of immigration laws which exclude immigrants who cannot read or write from entrance into the U.S. They are uneducated and used as cheap labor for employers which undermines the hard working American.

9. Civil Service laws will be enforced when people are hired for government jobs.

Republican Party Platform10.All U.S. citizens of legal age should be able to vote for free (no poll tax).

11.Condemning “lynchings” which are a common practice in most southern states.

12.Formation of a National Arbitration Board to help settle disputes between employers and workers.

13.Repealing the Homestead Act.

14.The admission of the remaining territories as states at the earliest practical date and that these territories can elect their own government as they choose.

15.Alaska should have representation in Congress.

16.Equal rights for women.

Election of 1896

President – William McKinley (R) Vice President – Garret Hobart

Vice President Garret Hobart died in 1899 and he was replaced Teddy Roosevelt

Election of 1900

President – William McKinley Vice President – Teddy Roosevelt

Gold Standard Act (1900)Gold Standard Act (1900) Terms: Paper money is backed by gold only, and silver cannot be exchanged forgold.

Why: Gold discoveries increased the amount of gold in the U.S. by $100,000,000

Where gold was discovered:

1. Alaska (U.S.) 2. South Africa (U.K.) 3. Canada (U.K.) 4. Australia (U.K.)

Importance: The End

1. Populist Movement 2. Bi-metallism 3. William Jennings Bryan

Repealed in 1934 during the Great Depression.Repealed in 1934 during the Great Depression.

William Jennings Bryan Political Career After the Populist movement “died out”.

Future Attempts: He ran for President in 1908 for the Democratic party and lost again.

Scopes Monkey Trial: Bryan was the prosecuting attorney during the Scopes Monkey Trial, in which a substitute teacher (John Scopes) was on trial for teaching the theory of evolution to his students.

Trial Verdict: John Scopes was found guilty And ordered to pay a fine of $100.

His Death: Bryan died 5 days before the trial was over.

Floating Currency

Established – 1971 (Nixon Administration)

Principle Idea – The value of a nation’s money is based on how good or bad a nation’s economy is in the worldwide economy (GNP).

Good Economy = high value of money

Bad Economy = low value of money

Puck Magazine Illustration (1896) Puck Magazine Illustration (1896)

Puck Magazine Illustration (1896) Puck Magazine Illustration (1896)

“E Pluribus Unum”“Out of many one”

U.S. Currency’s Hidden Racism?

What did Lincoln do?

“Applying an old economic crisis to the present economic crisis.”