Politics of the Gilded Age 1877-1900

Scenarios You Decide: Ethics, Business, and Gold

Limited Government Politics: superficial glitter of the new wealth; more show than substance Laissez-faire economics and Social Darwinism Reading Federal Courts narrowly interpreted the government’s power to regulate business Elections entailed brass bands, flags, campaign buttons, picnics, free beer, and crowd-pleasing oratory; lacked real political issues

Politics of the Gilded Age Republicans: Memories of Civil War by waving the “bloody shirt.” Pro-business economic program of high protective tariffs Democrats: Argued for states’ rights and limiting powers of the federal government Party Patronage: lacking a serious legislative agenda, winning elections became a game of providing government jobs to the party faithful Ultimately, not a whole lot happened…

Presidents 1876 Rutherford B. Hayes: ended Reconstruction by withdrawing final federal troops from the South 1880 James Garfield: Interested in spoils and patronage more than reform; assassinated Chester Arthur: Civil Service reform; based on qualifications not political connections 1884 Grover Cleveland: First Democrat elected since Buchanan in 1856; frugal and limited government and civil service system. Interstate Commerce Act of 1887: regulate business Dawes Act: Indian reform

Civil Service Reform Pendleton Act of 1881: Created Civil Service Commission; applicants for classified federal jobs would be selected on merit not patronage Politicians now depended less upon their party loyalties and more upon the rich to fund their campaigns Which is worse?

Corruption in Government

Corruption Re-Cap Why was corruption so widespread during the Gilded Age? Rapid growth of population, economy, and cities prevent gov. from providing services Gov. became too large to control Clean government was not as important as ethnic and religious issues Great inequality in wealth meant the rich could “buy” political power What government jobs today require civil service tests? Police, Fire Dept., Post Office Some felt gov. had too much power Secret Ballot Cutting taxes and gov. jobs would decrease corruption Some felt gov. had too little power People could push around a weak gov. for special advantages

Money Issue Reading A need for more money in circulation Debtors, farmers, and start-up businesses wanted more “easy” or “soft” money Help them borrow money at lower interest rates and pay off their loans with inflated dollars Panic of 1873: gold standard blamed for restricting money supply More paper money and unlimited minting of silver coins

Money Issue Bankers, creditors, investors, and established businesses stood for “sound” or “hard” money Currency backed by gold stored in government vaults Money would hold their value against inflation

Money Issue Greenback Party: paper money not backed by specie (gold or silver) “Crime of 1873:” Congress stopped the coining of silver Bland-Allison Act: allowed limited coinage of silver (Perspective Reading) Tariffs: High or Low Farmers view industry as growing at the expense of agrarian society Election of 1888: Harrison and a high tariff

Populist Party 1892: The People’s or Populist party emerges Discontent with the economic power in the hands of the few (trusts and bankers) Platform: direct election of Senators, use of initiatives and referendums, unlimited coinage of silver, graduated income tax, loans for farmers, 8 hour work day for industrial workers Activity

Election of 1892 Cleveland won a solid victory and became the only former president to become president again Panic of 1893: stock market crashed due to overspeculation and the railroad industry overbuilding (Reading) Gold Standard and hands-off policy Gold reserve plummets Repealed the Sherman Silver Purchase Act Government borrowed $65 million from J.P. Morgan Activity

Election of 1896 Democrat Nominee: William Jennings Bryan; joined with Populist platform for unlimited coinage of silver Republican Nominee and Winner: McKinley; high protective tariff and labor advocate Improved Economy: Gold in Alaska, increased the tariff and by 1900 made gold the official standard for U.S. currency Activity

Consequences Republican Dominance Populist party declined Marked changing values in the U.S. including a modern industrial and urban America as opposed to a rural Jeffersonian America McKinley became the first modern president and led America away from isolationism