MR. LIPMAN’S APUS MR. LIPMAN’S APUS POWERPOINT POWERPOINT CHAPTER 23CHAPTER 23

Political Issues of the Gilded Age Political Issues of the Gilded Age 1860s to 1890s1860s to 1890s

KEYS TO THE CHAPTERKEYS TO THE CHAPTER Population Growth and UrbanizationPopulation Growth and Urbanization Political Corruption and Machine Party Political Corruption and Machine Party

PoliticsPolitics Economic Boom and Bust (Panic) PeriodsEconomic Boom and Bust (Panic) Periods Reconstruction Ends with 1876 election Reconstruction Ends with 1876 election

compromise and Democratic Party regains compromise and Democratic Party regains national prominence national prominence

The birth and growth of Jim Crow EraThe birth and growth of Jim Crow Era Labors growth and clash with businessLabors growth and clash with business

KEYS TO THE CHAPTERKEYS TO THE CHAPTER

Ethnic and Class clashes and Ethnic and Class clashes and distinctionsdistinctions

Political Patronage and Civil Service Political Patronage and Civil Service Tariffs as revenue and growing Tariffs as revenue and growing

federal budgetsfederal budgets The Populist MovementThe Populist Movement The Gold and Silver IssueThe Gold and Silver Issue

THE PRESIDENTSTHE PRESIDENTS Grant (1868 and 1872) - RepublicanGrant (1868 and 1872) - Republican Hayes (1876) – RepublicanHayes (1876) – Republican Garfield (1880) and Arthur (1881) – Rep.Garfield (1880) and Arthur (1881) – Rep. Cleveland (1884) – DemocratCleveland (1884) – Democrat Harrison (1888) – RepublicanHarrison (1888) – Republican Cleveland (1892) – DemocratCleveland (1892) – Democrat McKinley (1896) – Republican but 3McKinley (1896) – Republican but 3rdrd

party populist movement shows strengthparty populist movement shows strength

Postwar United StatesPostwar United States

The “Gilded Age”The “Gilded Age”

Used by Mark Twain to describe the 30 years Used by Mark Twain to describe the 30 years after the Civil Warafter the Civil War

““shiny and prosperous on the outside, but shiny and prosperous on the outside, but rotten on the inside” (Twain) rotten on the inside” (Twain)

POPULATION GROWTHPOPULATION GROWTH

Population increase makes US 3Population increase makes US 3rdrd largest largest nation in western world nation in western world

Massive immigration in 1880s and 1890s Massive immigration in 1880s and 1890s includes large Chinese immigration includes large Chinese immigration bringing laws to excludebringing laws to exclude

Immigrants flood cities leading to the Immigrants flood cities leading to the power of political machines and corruption power of political machines and corruption at all levels of governmentat all levels of government

The election of 1868: Ulysses S. GrantThe election of 1868: Ulysses S. Grant Popular war hero but limited knowledge Popular war hero but limited knowledge

with anything else with anything else

Republicans get support by “Republicans get support by “waving the waving the bloody shirt” bloody shirt” – reviving memories of – reviving memories of Civil War and Democratic rebellion Civil War and Democratic rebellion

Grant wins because of Freeman’s VoteGrant wins because of Freeman’s Vote

Millionaires Jim Fisk and Millionaires Jim Fisk and Jay Gould Jay Gould seek seek to corner the gold market (1869)to corner the gold market (1869)

Plan would only work if federal treasury did not Plan would only work if federal treasury did not sell any gold to the publicsell any gold to the public They bribe Grant’s brother-in-law, to stop They bribe Grant’s brother-in-law, to stop

Grant from releasing gold (paying Corbin 25K) Grant from releasing gold (paying Corbin 25K)

September 24, 1869 – “Black Friday” September 24, 1869 – “Black Friday” Gold finally released by US Treasury to end Gold finally released by US Treasury to end

the scheme (supposedly contrary to Grant’s the scheme (supposedly contrary to Grant’s personal assurances to the schemers) personal assurances to the schemers)

GRANT ADMINISTRATION GRANT ADMINISTRATION KNOWN FOR CORRUPTION KNOWN FOR CORRUPTION

Crédit Mobilier scandal Crédit Mobilier scandal

Union Pacific R.R. insiders from the company, Union Pacific R.R. insiders from the company, hired themselves to build the line (at inflated hired themselves to build the line (at inflated prices) at Gov’t expense prices) at Gov’t expense

Distributed shares of stock to important Distributed shares of stock to important congressmen to prevent investigation congressmen to prevent investigation

Investigation reveals V.P. & some Investigation reveals V.P. & some Congressman were in on the deal to stop Congressman were in on the deal to stop investigationinvestigation

Whiskey RingWhiskey Ring

1874 – 1875 – group of distillers bribed 1874 – 1875 – group of distillers bribed federal agents to avoid paying millions in federal agents to avoid paying millions in whiskey taxes whiskey taxes

Grant’s private secretary, Orville Babcock Grant’s private secretary, Orville Babcock took money from the group took money from the group • Grant refuses to fire himGrant refuses to fire him• Grant’s testimony helps assure his acquittal Grant’s testimony helps assure his acquittal

Indian land bribesIndian land bribes

1876 – secretary of war William E. Belknap 1876 – secretary of war William E. Belknap took bribes from suppliers to Indian took bribes from suppliers to Indian reservations reservations

Belknap impeached and resigned Belknap impeached and resigned

Grant stayed loyal to his friend until the end Grant stayed loyal to his friend until the end

Grant Wins Re-Election ButGrant Wins Re-Election But Republicans fixed problems that Liberal Republicans fixed problems that Liberal

Republicans and Democrats brought out, Republicans and Democrats brought out, to stop voter rebellion in future electionsto stop voter rebellion in future elections 1872 – general amnesty act passed; 1872 – general amnesty act passed;

removed political disabilities from all but removed political disabilities from all but 500 Confederate leaders 500 Confederate leaders

High tariffs (from the war) reducedHigh tariffs (from the war) reduced Mild civil-service reform enacted to get Mild civil-service reform enacted to get

rid of worst people from Grant’s rid of worst people from Grant’s administrationadministration

Panic of 1873 Panic of 1873

Caused by over-expansion of railroads, Caused by over-expansion of railroads, mines, factories, farms & fueled by bad loans mines, factories, farms & fueled by bad loans made by banks made by banks

When profits didn’t come in, bank loans not When profits didn’t come in, bank loans not paid, and economy collapsed leading to bank paid, and economy collapsed leading to bank runsruns

Led to depression that lasted for 4 years Led to depression that lasted for 4 years

GreenbacksGreenbacks

$450 million in greenbacks issued during C. W.$450 million in greenbacks issued during C. W.

They They depreciateddepreciated since not backed by gold since not backed by gold

Debtors called for more greenbacks to be Debtors called for more greenbacks to be issued to inflate (increase) money supply issued to inflate (increase) money supply More money meant cheaper money (and More money meant cheaper money (and

rising prices), making debts easier to pay off rising prices), making debts easier to pay off

Creditors and banks did not want to be Creditors and banks did not want to be paid back in money worth less than the paid back in money worth less than the money they had originally loaned money they had originally loaned (depreciated money) (depreciated money)

1874 – convinced Grant to veto a bill to 1874 – convinced Grant to veto a bill to print more paper money print more paper money

1875 – Resumption Act of 1875 passed1875 – Resumption Act of 1875 passed• Government would withdraw Government would withdraw

greenbacks from circulation greenbacks from circulation • Repayment of all paper money in gold Repayment of all paper money in gold

at face value by 1879 at face value by 1879

Silver Silver

Early 1870s – treasury kept silver pegged at Early 1870s – treasury kept silver pegged at 16 ounces to 1 ounce of gold 16 ounces to 1 ounce of gold

Silver on open market worth more than what Silver on open market worth more than what treasury paying, so mines stopped selling to treasury paying, so mines stopped selling to treasury treasury

1873 – federal treasury stopped coining silver 1873 – federal treasury stopped coining silver dollars dollars

Silver discoveries made in late 1870s Silver discoveries made in late 1870s increased production and lowered prices increased production and lowered prices

Western silver mining states joined with Western silver mining states joined with debtors who wanted inflation (through debtors who wanted inflation (through coinage of silver) to return to coining silver coinage of silver) to return to coining silver

DeflationDeflation Supporters of “hard money” got Treasury Supporters of “hard money” got Treasury

to buy up gold (to redeem greenbacks)to buy up gold (to redeem greenbacks)

1870 – 1880 – amount of money per 1870 – 1880 – amount of money per capita in circulation decreasedcapita in circulation decreased

Made depression worse, but improved Made depression worse, but improved government’s credit rating and got government’s credit rating and got greenbacks up to full value of gold greenbacks up to full value of gold

The Hayes-Tilden StandoffThe Hayes-Tilden Standoff

The election of 1876: the resultsThe election of 1876: the results Tilden won more popular votes than Hayes Tilden won more popular votes than Hayes

Tilden had 184 (of needed 185) electoral Tilden had 184 (of needed 185) electoral votes for victory votes for victory

4 states (Oregon, South Carolina, Louisiana, 4 states (Oregon, South Carolina, Louisiana, Florida) had disputed electoral returnsFlorida) had disputed electoral returns

Compromise of 1877Compromise of 1877 Democrats agree that Hayes can become president Democrats agree that Hayes can become president

Hayes promises that federal troops will be removed Hayes promises that federal troops will be removed from final southern states (Louisiana and South from final southern states (Louisiana and South Carolina) Carolina)

Republicans promised to use federal aid for Republicans promised to use federal aid for southern railroad through South to Pacific (not southern railroad through South to Pacific (not fulfilled) fulfilled)

Finally settled only 3 days before Hayes’ Finally settled only 3 days before Hayes’ inaugurationinauguration

Throughout 1870s Reconstruction ends and Throughout 1870s Reconstruction ends and Republicans abandoned blacks in SouthRepublicans abandoned blacks in South Civil Rights Act of 1875Civil Rights Act of 1875

• Guaranteed equal accommodations in public Guaranteed equal accommodations in public placesplaces

• Passed without enforcement measures Passed without enforcement measures Civil Rights Cases (1883) Civil Rights Cases (1883)

• Supreme Court declared Act unconstitutional Supreme Court declared Act unconstitutional • 1414thth Amendment prohibited governmental Amendment prohibited governmental

discrimination, private discrimination discrimination, private discrimination

With Compromise of 1877, Republicans abandoned With Compromise of 1877, Republicans abandoned blacks in South to fend for themselves blacks in South to fend for themselves

The Birth of Jim CrowThe Birth of Jim Crow

Blacks (& poor whites) forced into sharecropping Blacks (& poor whites) forced into sharecropping

Land owners (former masters) let ex-slaves and Land owners (former masters) let ex-slaves and whites farm on their land in exchange for part of the whites farm on their land in exchange for part of the harvest harvest

““crop-lien” system – storekeepers gave goods to crop-lien” system – storekeepers gave goods to sharecroppers on credit; in return had a lien (control sharecroppers on credit; in return had a lien (control over property in exchange for payment of debt) on over property in exchange for payment of debt) on their harvests their harvests

Separation between races evolved (by Separation between races evolved (by 1890s) to formal system of segregation 1890s) to formal system of segregation Law of segregation called Jim Crow laws Law of segregation called Jim Crow laws

Literacy tests, poll taxes, voter-registration Literacy tests, poll taxes, voter-registration laws used to prevent blacks from voting laws used to prevent blacks from voting

Upheld by Supreme Court in Plessy v. Upheld by Supreme Court in Plessy v. Ferguson case (1896) and known as Ferguson case (1896) and known as Separate but Equal doctrine.Separate but Equal doctrine.

Known as Known as DeJureDeJure Segregation Segregation

Educational Spending in the South 1890 - 1910Educational Spending in the South 1890 - 1910

Segregation Was the Law Until the 1960sSegregation Was the Law Until the 1960s

Lynching Lynching and and

violence violence used to used to

deny deny rightsrights

1877 – the Great Railroad Strike1877 – the Great Railroad Strike

4 largest RR’s cut wages by 10% so workers strike4 largest RR’s cut wages by 10% so workers strike

Hayes called out federal troops to put down the strike Hayes called out federal troops to put down the strike

Workers in other fields joined strikers, conducting Workers in other fields joined strikers, conducting work stoppages across industrial east work stoppages across industrial east

Strike lasted several weeks; over 100 people died Strike lasted several weeks; over 100 people died

Failure showed weaknesses of labor, divided over Failure showed weaknesses of labor, divided over race race

Workers Attack During the StrikeWorkers Attack During the Strike

Conflict with Chinese over jobs Conflict with Chinese over jobs

Chinese were mostly poor, uneducated, Chinese were mostly poor, uneducated, single males; about 75,000 in 1880 in USsingle males; about 75,000 in 1880 in US

Came to work in gold fields or on railroads Came to work in gold fields or on railroads

1882 Chinese exclusion act will stay if effect 1882 Chinese exclusion act will stay if effect until 1943until 1943

Election of 1880 {Election of 1880 {Hayes did not run for re-electionHayes did not run for re-election} }

Garfield waved the bloody shirt and won Garfield waved the bloody shirt and won Electoral vote was 214 to 1 Electoral vote was 214 to 1

Republicans immediately split over patronage Republicans immediately split over patronage

Secretary of State James G. Blaine (Half-Secretary of State James G. Blaine (Half-Breed) and Senator Roscoe Conkling Breed) and Senator Roscoe Conkling (Stalwart)(Stalwart)

Political Parties Used PatronagePolitical Parties Used Patronage Republican divisions over patronageRepublican divisions over patronage

““Stalwarts” Stalwarts” • Led by Roscoe Conkling, US senator from New York Led by Roscoe Conkling, US senator from New York

believed in using patronage for political advantagebelieved in using patronage for political advantage

““Half-Breeds”Half-Breeds”• Led by James G. Blaine, congressman from Maine Led by James G. Blaine, congressman from Maine

favored civil-service reform but really wanted to take favored civil-service reform but really wanted to take power from Stalwarts to control who gave out the jobs power from Stalwarts to control who gave out the jobs

Neither side was ever successful in gaining controlNeither side was ever successful in gaining control

Garfield’s assassinationGarfield’s assassination Charles J. Guiteau shot Garfield in back at a railroad Charles J. Guiteau shot Garfield in back at a railroad

station in Washington station in Washington • Disappointed office-seeker, and insane, who shouted “I am a Disappointed office-seeker, and insane, who shouted “I am a

Stalwart. Arthur is now President” Stalwart. Arthur is now President” Garfield lived for 11 weeks before dying (September Garfield lived for 11 weeks before dying (September

19, 1881) and Chester Arthur becomes President19, 1881) and Chester Arthur becomes President 1883 – Pendleton Act passed 1883 – Pendleton Act passed

• Banned compulsory political contributions from federal Banned compulsory political contributions from federal employees employees

• Set up Civil Service Commission to give jobs to people on Set up Civil Service Commission to give jobs to people on basis of competitive examinations basis of competitive examinations

• Only covered 10% of federal jobs at first, but was expanded Only covered 10% of federal jobs at first, but was expanded

Unintended consequence of civil service reformUnintended consequence of civil service reform

Politicians couldn’t use patronage to get Politicians couldn’t use patronage to get immigrant and lower class voters’ support immigrant and lower class voters’ support anymore so needing money they turn to anymore so needing money they turn to corporations for support, leading to huge corporations for support, leading to huge amounts of influence for business leaders amounts of influence for business leaders

Trusts will begin to develop lobbying effortsTrusts will begin to develop lobbying efforts

The election of 1884 The election of 1884 Probably the dirtiest campaign in US history Probably the dirtiest campaign in US history

Republicans publicized fact that Cleveland Republicans publicized fact that Cleveland had fathered an illegitimate child 8 years had fathered an illegitimate child 8 years before and was paying for the child’s carebefore and was paying for the child’s care

Cleveland wins election in a very tight raceCleveland wins election in a very tight race

First Democrat to win Presidency since 1856 First Democrat to win Presidency since 1856 and last until Woodrow Wilson in 1912.and last until Woodrow Wilson in 1912.

Cleveland firmly pro-business; Cleveland firmly pro-business; believed government should keep its believed government should keep its hands off business affairs (laissez-faire)hands off business affairs (laissez-faire)

““Though the people support the government, Though the people support the government, the government should not support the the government should not support the people.” (Cleveland) people.” (Cleveland)

He would veto many Civil War pension billsHe would veto many Civil War pension bills

Tariff issueTariff issue During C. W., tariffs increased to pay for war During C. W., tariffs increased to pay for war After war businesses got Republicans to keep After war businesses got Republicans to keep

tariffs high, as protectiontariffs high, as protection Treasury ran a surplus because of tariffsTreasury ran a surplus because of tariffs Republicans spent money from surplus on Republicans spent money from surplus on

larger pensions or “pork-barrel” (wasteful) larger pensions or “pork-barrel” (wasteful) projects to gain electoral support projects to gain electoral support

Cleveland wants to lower tariffs and angers Cleveland wants to lower tariffs and angers businesses who oppose his re-election businesses who oppose his re-election

He will lose race for Presidency to Harrison in He will lose race for Presidency to Harrison in 18881888

McKinley Tariff Act of 1890McKinley Tariff Act of 1890 Passed to help pay for Republican spending Passed to help pay for Republican spending

on C. W. veteran pensionson C. W. veteran pensions

Increased tariff rates to highest peacetime Increased tariff rates to highest peacetime level ever (average of 48%) level ever (average of 48%)

Hurt farmers, who had to buy higher-priced Hurt farmers, who had to buy higher-priced American manufactured goods, but sold their American manufactured goods, but sold their agriculture at competitive world market ratesagriculture at competitive world market rates

Civil War Pensions and Pensioners, Civil War Pensions and Pensioners, 1866–19171866–1917

Bad $ Times bring DiscontentBad $ Times bring Discontent

1892 – People’s Party (Populists) emerged 1892 – People’s Party (Populists) emerged Grew out of Farmers’ Alliance and Grew out of Farmers’ Alliance and they wantthey want::

• unlimited coinage of silverunlimited coinage of silver (16 to 1 ratio) “inflation” (16 to 1 ratio) “inflation”• Graduated income tax (progressive tax) Graduated income tax (progressive tax) • Govt ownership of railroads, telegraph and telephone Govt ownership of railroads, telegraph and telephone • Direct election of US senators Direct election of US senators • 1-term limit for president 1-term limit for president • Adoption of initiative and referendum proceduresAdoption of initiative and referendum procedures• Shorter workday Shorter workday • Immigration restrictionImmigration restriction

July 1892 – Homestead Strike July 1892 – Homestead Strike 300 Pinkerton detectives try to put down 300 Pinkerton detectives try to put down

steelworkers strike at Andrew Carnegie’s steelworkers strike at Andrew Carnegie’s plant and strikers defeated them plant and strikers defeated them

US troops then called out and broke the strike US troops then called out and broke the strike and destroyed the union and destroyed the union

July 1892 – strike of silver miners crushed July 1892 – strike of silver miners crushed by federal troops in Coeur d’Alene, Idaho by federal troops in Coeur d’Alene, Idaho

Populist Support in the West Populist Support in the West Election of 1892Election of 1892

Why Populists failed to do better: Why Populists failed to do better: Industrial east did not vote for Populists Industrial east did not vote for Populists

because pro-business because pro-business The South did not vote for Populist party The South did not vote for Populist party

because Populist leaders reached out to because Populist leaders reached out to blacks for votes; who were unhappy with blacks for votes; who were unhappy with Republicans, responded to Populist Republicans, responded to Populist appealsappeals

• Elite Southerners used racial hatred to get poor Elite Southerners used racial hatred to get poor whites to vote for Democratic Party instead of whites to vote for Democratic Party instead of Populists Populists

Southern blacks ended up worse after Southern blacks ended up worse after Populist campaign Populist campaign

Whites in South took away the few voting rights Whites in South took away the few voting rights that blacks still had that blacks still had

• More aggressive use of poll taxes and literacy tests More aggressive use of poll taxes and literacy tests • ““grandfather clause” that exempted anyone whose grandfather clause” that exempted anyone whose

ancestors (father / grandfather) had voted before 1860 ancestors (father / grandfather) had voted before 1860

More severe Jim Crow laws to enforce More severe Jim Crow laws to enforce segregation, backed up by lynching and violence segregation, backed up by lynching and violence

Populist party itself turned into party of racism Populist party itself turned into party of racism

Depression of 1893 (Panic)Depression of 1893 (Panic) Lasted for 4 years Lasted for 4 years Worst of 1800s : Causes included:Worst of 1800s : Causes included:

• Overbuilding and speculation Overbuilding and speculation • Problems with workers and strikes Problems with workers and strikes • Agricultural depression Agricultural depression

Effect of depression was collapse of businesses and Effect of depression was collapse of businesses and failure of banksfailure of banks

GOV’T BELIEVED IN LAZZIE FAIRE SO WOULD GOV’T BELIEVED IN LAZZIE FAIRE SO WOULD NOT INTERFERE OR HELP BUSINESSNOT INTERFERE OR HELP BUSINESS

The Gold IssueThe Gold Issue Gold reserve drained:Gold reserve drained:

Sherman Sliver Purchase Act (1890) required US Sherman Sliver Purchase Act (1890) required US to buy silver and issue paper $ for the silver it to buy silver and issue paper $ for the silver it bought (populist idea)bought (populist idea)

Owners of the paper $ then exchanged the paper Owners of the paper $ then exchanged the paper currency for gold (because silver prices had gone currency for gold (because silver prices had gone down, making gold more valuable) down, making gold more valuable)

• By law, government had to carry out this exchange By law, government had to carry out this exchange

Gold reserves reduced from $192 million to below Gold reserves reduced from $192 million to below $100 million (seen as minimum US had to have on $100 million (seen as minimum US had to have on reserve to support $350 million in currency) reserve to support $350 million in currency)

Cleveland asks Congress to repeal the Cleveland asks Congress to repeal the Sherman Silver Purchase Act Sherman Silver Purchase Act Some Democrats, led by William Jennings Some Democrats, led by William Jennings

Bryan (Nebraska) argued against repeal but Bryan (Nebraska) argued against repeal but Cleveland wins and act repealed.Cleveland wins and act repealed.

However, gold reserves are low and fear is However, gold reserves are low and fear is that America will go off the gold standard that America will go off the gold standard making paper money worthlessmaking paper money worthless

America turns to J.P.Morgan and his fellow America turns to J.P.Morgan and his fellow investors and borrows $65 Million in gold investors and borrows $65 Million in gold paying $7M comm.paying $7M comm.

J. P. J. P. MorganMorgan

World’s World’s Leading Leading BankerBanker

The income tax The income tax Passed to restore Gov’t financial strength but Passed to restore Gov’t financial strength but

it is Struck down by Supreme Court (1895)it is Struck down by Supreme Court (1895)• Violation of “direct tax” clause of Constitution Violation of “direct tax” clause of Constitution

(article 1, sec.9)(article 1, sec.9)• Populists and poor Americans saw this as proof Populists and poor Americans saw this as proof

big business and the rich controlled the courts big business and the rich controlled the courts

CONCLUSION: “FORGETTABLE CONCLUSION: “FORGETTABLE PRESIDENTS” OF HAYES TO PRESIDENTS” OF HAYES TO CLEVELAND UNABLE TO CLEVELAND UNABLE TO SHAKE AMERICA FREE FROM SHAKE AMERICA FREE FROM LAIZZE FAIRE POLICIESLAIZZE FAIRE POLICIES