1. POLITICS AND REFORM
Chapter 11

2. Main Ideas of this chapter…….
During this period, political parties often focused on party competition rather than on important issues. Rural Americans (farmers) were suffering economically, and they began to organize politically in order to obtain relief.
* Many states passed laws segregating African Americans and limiting their voting rights.

3. Section 1 - Stalemate in Washington
Main Idea: From 1877 to 1896 the Republicans and Democrats were so evenly matched that only a few reforms were possible at the national level.
Campaign to Clean up Politics
A. Stalwarts - GOPs who supported political
machines & the spoils system (patronage-government jobs going to supporters of the winning party in an election).
B. Halfbreeds - GOPs who wanted to reform
the spoils system.

4. C. Pendleton Act
1. President Garfield’s assassination
a. He was killed by disgruntled
supporter who was
angry because he
couldn’t get a
government job.
b. Highlighted problems
with the spoils system
2. Pendleton Act created the Civil Service
Commission - jobs on merit, not patronage.
3. Jobs were obtained through civil service
examinations.

5. II. Two Parties, Neck & Neck - 1870s & 1880s.
A. Stalemate
1. House of Representatives - usually a
Democrat majority.
2. Senate - usually a Republican majority.
3. President - narrow margins in most elections
of the period.
a. In two elections, candidate winning the
popular vote lost in Electoral College.
b. Republican party won 4 of 6 pres. elections…BUT they
had to try to govern w/ a split Congress
nearly even division of power = political
deadlock = not much chance for reform.

6. III. Democrats Reclaim the White House A. 1884 election
1. Grover Cleveland vs.
James G. Blaine
2. Dirty campaign
a. Blaine tainted by Credit
Mobilier scandal
b. GOPs split over reforms; those
wanting reforms - mugwumps
c. Cleveland - bachelor; had
fathered a child out of wedlock
ten years earlier.
3. Cleveland won election by 1,000 votes in NY
“Ma, Ma…where’s my Pa? Gone to the White House….ha, ha, ha….”
Grover Cleveland
Democrat
GOP slogan used against Cleveland: “Ma, Ma, where's my Pa? Gone to the White House.
Ha, ha, ha.”
James G. Blaine
Republican

7. IV. President Cleveland with Problems
A. Labor unrest - strikes & violence
B. Powerful corporations (ex: RRs)
* Small businesses & farmers angry at RRs.
a. Large corporations could get rebates
(partial refunds) & lower shipping rates
because of their volume of business.
b. Farmers & small business owners felt they
paid unfair rates.

8. C. Interstate Commerce Commission 1887 -
designed to regulate interstate trade & to create “reasonable & just” rates.
* Problem: ICC couldn’t enforce rulings,
had to rely on courts to do so. Courts
often unwilling to interfere with
corporations (property rights).
D. Tariffs
1. Dems. in House passed tariff reduction bill
(to lower prices on manufactured goods)
2. GOP-controlled Senate would not pass the
tariff reduction bill.
3. Became the major issue in election of 1888.

9. 1. GOP- Benjamin Harrison - for high tariffs.
V. GOPs Regain Power
A. Election of 1888
1. GOP- Benjamin Harrison - for high tariffs.
2. Dems - Grover Cleveland - against tariffs.
3. Harrison lost popular vote, but won
electoral vote.
4. GOP won control of both houses
of Congress.
B. McKinley Tariff - compromise bill
1. Lowered tariff on some goods;
raised it on others (ex: textiles)
2. Hurt federal revenue because tariffs hurt
American trade.
Benjamin
Harrison

10. 3. Budget surplus became a deficit.
C. Sherman Antitrust Act (1890)
1. Meant to control huge trusts which created
monopolies & hurt consumers.
2. Wording vague - hard to enforce.
3. Not much impact on business.
* Although ICC & Sherman Antitrust Act were
weak & hard to enforce, they established an
important precedent: The federal
government could regulate private
corporations to protect American citizens/
consumers.

11. * By 1890 elections -- some Americans,
especially farmers, believed that the two-party
political system was incapable of solving the nation’s
problems.
What would those voters do?
Where do they go to see that
their interests are being
protected?

12. Section 2 - Populism
Main idea: In the 1890s, an independent political
movement called populism emerged to challenge the
two major political parties.
Unrest in Rural America - Why were they angry?
A. Improved technology farmers produced
more greater supply = lower prices for
crops & cattle. At the same time….
B. High tariffs higher cost of manufacturing
goods that farmers had to buy. Also….

13. C. High tariffs on foreign imports to America
other countries retaliated by raising their tariffs
on American exports to them farmers
had trouble selling their goods overseas.
D. Farmers thought eastern bankers were unfair
to them (foreclosures, etc.)
E. Farmers thought RRs were unfair to them
(charged them higher rates than manufacturers)
Farmers
vs.
Railroad Companies

14. II. The Money Supply
A. Greenbacks (paper currency) issued
during Civil War caused inflation
(decline in value of $$)
B. After Civil War
1. Three types of currency in circulation:
a. Greenbacks
b. Gold & silver coin
c. Bank notes (government bonds)
2. Feds stopped printing greenbacks; stopped
minting silver coins; paid off bonds
not enough $$ in circulation deflation
decrease in price of goods.

15. C. Deflation hurt farmers
Had to borrow $$ for seed, supplies
Money supply scarce = higher interest rates
Farmers owe more $ for mortgages/other loans
Falling prices = less income on crops
Couldn’t pay mortgages
Wanted more greenbacks printed and/or silver
Blamed Congress & eastern bankers.

16. Farmers decided they needed to organize
politically!!
D. Grange Takes Action
1. Patrons of Husbandry, aka Grange -
first nat’l. farm organization
* At first, it was a social & educational org.
2. Grange’s response to farmers’
problems:
a. Pressured state legislatures
to regulate RRs.
b. Joined Greenback Party -
wanted govt to print more
$$.

17. c. Cooperatives - pooled their resources to
create businesses to benefit farmers.
Ex: Pooled their crops & held them off
the market to force up prices. Could also
negotiate better RR rates due to high
volume.
E. Grange fails
1. “Granger laws” setting RR rates were fought
in courts. RRs usually won.
2. Greenback Party failed; too many people
were afraid of paper $$.
3. Co-ops failed - not strong enough and
farmers had too little business experience.

18. III. Farmers’ Alliance
A. Replaced Grange as farmers’ “union.”
B. People’s Party, aka Populist Party, formed to
address farmers’ issues.

19. A. Populist party platform:
IV. Rise of Populism
A. Populist party platform:
1. Subtreasury plan (store crops to raise prices)
2. “Free silver” unlimited
coinage of silver
3. End protective tariffs &
national banks.
4. Tighter regulation of RRs
5. Direct election of senators
by voters instead of by state
legislatures.
17th Amendment

20. B. Populist for President 1892
1. James Weaver - Populist candidate
2. Platform:
a. Included all of populist platform….plus…
b. Federal government ownership of RRs
c. Graduated income tax - you make more,
you pay at a higher rate.
d. 8-hour workday To try appeal to
e. Immigration restriction the labor vote.
C. Grover Cleveland (Dem) defeated
Pres. Benjamin Harrison (GOP) & Weaver
(Populist)

21. D. Panic of 1893
1. Businesses went bankrupt.
2. Stock market crashed.
3. Banks closed.
% unemployment…..Depression!!
E. Panic caused Amer. & Eur. investors to cash
in bonds for gold gold reserves became
dangerously low!
1. Cleveland wanted gold as basis for currency
2. Congress would not allow silver to be
exchanged for gold.
3. Dems split: Goldbugs favored gold currency;
Silverites wanted unlimited coinage of silver.

23. For a time, there was fear among many Democrats that the Populist Party would consume them.

24. V. Election of 1896
A. Dems & Populists nominated
William Jennings Bryan for Pres. - electrifying
campaigner, but didn’t appeal to NE labor.
B. GOP - William McKinley
1. “Front-Porch” campaign.
2. Blamed Cleveland & Dems for depression.
3. Had support of business & urban workers
C. Populism declines
1. Depression over
2. New gold strikes led to increased $$ supply.
3. Congress adopted gold-based $$ standard.
4. Too radical (Ex: govt-owned RR)

25. Even though Populist Party failed, some of its
William
Jennings
Bryan
William
McKinley
Even though Populist Party failed, some of its
reforms will be adopted in the 20th century.
(Ex: Income tax)