Chapter 16 Chapter 16

The Gilded Age layer of prosperity that covered the poverty and corruption that existed

in society.

Laissez Faire Federal Govt.. From 1870-1900 Govt. did

verylittle domestically.

Main duties of the federal govt.:

Deliver the mail.

Maintain a national military.

Collect taxes & tariffs.

Conduct a foreign policy.

• 1. Black Friday (1869): Speculators cornered the gold market and ruined the economy.2. New York custom house ring (1872): Three investigations, two congressional and one Treasury, looked into an alleged corruption ring set up at the New York Custom House under two of Grant's appointments, collectors Moses H. Grinnell and Thomas Murphy. 3. Star Route Postal Ring (1872): A corrupt system of postal contractors, clerks, and brokers was set up to obtain lucrative Star Route postal contracts. 4. Salary Grab (1872): Congressmen voted themselves a retroactive $5,000 bonus for previous term served. 4. Sanborn Contract (1874): John Sanborn collected taxes at exorbitant fees and split the profits among associates. 5. Delano Affair (1875): Secretary of Interior, Columbus Delano, allegedly took bribes in order to secure fraudulent land grants. 6. Pratt & Boyd (1875): Attorney General George H. Williams allegedly received a bribe not to prosecute the Pratt & Boyd company. 7. Whiskey Ring (1876): Corrupt government officials and whiskey makers stole millions of dollars in a national tax evasion scam.8. Trading Post Ring (1876): Secretary of War William Belknap allegedly took extortion money from trading contractor at Fort Sill. 9. Cattelism (1876): Secretary of Navy George Robeson allegedly received bribes from Cattell & Company for lucrative Naval contracts. 10. Safe Burglary Conspiracy (1876): Private Secretary Orville Babcock was indicted over framing a private citizen for uncovering corrupt Washington contractors. 

Credit MobilierCredit Mobilier• Phony construction company owned by stockholders of Union Pacific Railroad.

• Hired to build the transcontinental railroad• Charged the U.S. government nearly twice the actual cost of the project.

• Bribed Congress to stop the investigation. • Largest scandal in U.S. history, and led to greater public awareness of government corruption.

Grant’s Scandal

Whiskey Whiskey RingRing• A group of President Grant’s officials imported whiskey

• Cheated US treasury of millions.

• Congress gave itself a raise, $5,000 to $7,500 annually.• Congressmen received a retroactive check for $5,000, plus their raise……

•  "Failures have been errors of judgment, not of intent".

Political MachinePolitical Machine•

•• •Organized group that controls activities of a political party

•Give services to voters, businesses in exchange for political or financial support

Political Boss•May serve as mayor; :

• controls city jobs, business licenses• influences courts, • arranges building projects, community services

•

•Corrupt political leader

•Kept Democratic Party in power in NYC called Tammany Hall

Boss William Marcy Tweed

Bosses paid by businesses, get voters’ loyalty, extend influence•Machines help immigrants with naturalization, jobs, housing•Election fraud • Graft—illegal use of political influence for personal gain• Machines take kickbacks (a portion of the earning), and bribes

milked the city with false leases, padded bills, false vouchers, unnecessary repairs and over-priced goods

Tweed Ring

Exposed for his corruption by cartoonist and editor, Thomas Nast

Tweed Ring fell and 1873 Tweed convicted of embezzlement

120 counts of fraud and extortion (12 years in jail)

Later Tweed was arrested on a civil charge and jailed in NYC, later died there

Patronage• Giving

government jobs to people who helped candidate get elected

Reform under Hayes• Tried to outlaw

spoils system• Advocated Civil

Service Reform (all applicants must take an exam)

• Investigated custom houses– Notorious for

patronage– Fired top officials

1880 1880 Presidential Election: RepublicansElection: Republicans

James Garfield20th President• Tried to establish

peace between two parties

• Emphasized Civil Rights

• Advocated Civil Service Reform

1881: Garfield 1881: Garfield Assassinated!Assassinated!

Charles Guiteau: lawyer who did not get a job in the government killed Garfield

Chester A. Arthur 21Chester A. Arthur 21stst PresidentPresidentPendleton

Civil Service Act

•Appointments to federal jobs base on merit system- examination

1884 1884 Presidential Election:Election:Grover

Cleveland22nd President

•First Democratic elected since 1856.•Tried to lower tariff (taxes) but Congress refuse support

A Dirty A Dirty CampaignCampaign

Ma, Ma…where’s my pa?He’s going to the White House, ha… ha… ha…!

1888 1888 Presidential Election:Election:

Benjamin Harrison 23rd President

•Raised taxes to the highest (McKinley Tariff)

1892 1892 Presidential Election:Election:

Grover Cleveland24th President

•The only president who served two non- consecutively

Men may come and men may go, but the work of reform shall go on forever. Will support

Cleveland in the1884 election.

Changing Public Changing Public OpinionOpinion Americans wanted the federal govt. to

dealwith growing soc. & eco. problems & to curbthe power of the trusts:

Interstate Commerce Act – 1887

Sherman Antitrust Act – 1890

McKinley Tariff – 1890

Based on the theory that prosperityflowed directly from protectionism.

Increased already high rates another 4%!

Rep. Party suffered big losses in 1890 (evenMcKinley lost his House seat!).