Chapter 19: From Stalemate to Crisis

Party Loyalties – Both parties less about party policies, more about: Religion Tradition Region Culture – Democrats White Southerners Catholics Recent immigrants Poor workers – Republicans Northern Protestants “Old Stock” citizens Middle Class Favored Issues like: – Immigration Restrictions – Temperence

The National Government Few Responsibilites – Mail – National Defense – Foreign Affairs – Tax Collection/Tariffs – Some economic infrastructure – Civil War Pension System Some wanted to pass old-age pension system for all Corruption and patronage

Presidents and Patronage Political patronage: the use of state resources to reward individuals for their electoral support. Similar to Spoils System Patronage hindered ability of some Presidents to govern – Rutherford B. Hayes – Stalwarts and Half-breeds Competing for Republican power and share of patronage Overshadowed Hayes Presidency

Garfield Assassinated Shot by Stalwarts opposed to his civil service reform Lived for 2 months – Alexander Graham Bell and Garfield How the new metal spring coil mattress helped kill the President. How the new metal spring coil mattress helped kill the President.

Sherman Anti-Trust Act of 1890 Popular demand for curbing power of trusts Used more against unions

Grangers Origins: – The Grange: Social and self-help association Later focus on political change: Depression of 1873 Formed after Civil War: – Learn new scientific methods – Create community support – Depression of 1873 Caused decline in farm prices Rise in membership to 800,000 (20,000 lodges)

New Demands/Goals Marketing cooperatives – Eliminate the middleman – Cooperative political action Stop monopoly power of the Railroads Farmer’s Declaration of Independence – “Free themselves from the tyranny of monopoly” Results – Cooperative stores – Creameries – Warehouses – Businesses – Montgomery Ward: Mail-order business

PAC: Political Action Committee – Worked to elect legislators – Gained control of some legislatures Sought to regulate railroads Results – Courts undid many laws – Recovery of late 1870’s Diminished interest Membership shrinks to 100,000 by 1880

Farmer’s Alliances Southern Alliance million members Northwestern Alliance Accomplishments – Formed cooperatives: Eliminate middleman Stores Banks Processing plants – Replace destructive competition with cooperation

Women and the Alliances Full voting members Lecturers Office holders Mary Lease: “raise less corn and more hell” Many urged temperance: – anti-alcohol movement

Populism Formed from different farm groups and alliances. Appeal – Small family farmers with limited access to credit Sharecroppers and tenant farmers Marginalized because of geography Sense of new found community

– Pushed for: Black members – Reluctantly allowed into movement – Whites dominated the leadership Pressure from Southern states : to maintain white supremacy.

Populist Platform Free Silver Anti-National Bank Direct of election of Senators Govt. store houses to establish – Bumper Crops – Allows price of crops to be manipulated. Nationalization of – Utilities and Railroads Graduated Income Tax

Evidence of bigotry/anti-Semitism Challenge to Laisseiz-faire Economics – Growth should focus on the needs of the people

The Panic of 1893 Most severe depression in history Caused by: – Business failures – Stock collapse – Bank failures (leveraged in stocks) – Tight Credit – More business failures – Low crop prices – Overexpansion – Weak Demand

20% Unemployment Demonstrated inter-dependent national markets – Some global effects: Weak European Demand for goods Weakness till 1901

Reaction Social Unrest from unemployed Fear of radical labor unrest Jacob Coxey: called for Govt. works projects – Coxey’s Army: March on Washington 500 protestors Ignored by Congress

The Silver Question What is backing our currency today? People demanded that currency be backed by gold and silver. Crime of ‘73: Protest of “demonetization” of silver. – People wanted coining of silver to be reinstated – “Free Silver” – Cause inflation: Raise farm pricess Reduce debt burden

Populist reasons: – Gold symbol of oppression and tyranny – Silver: The “People’s “ Money – Ease farmer debt burden: inflation

Election of 1896 Dominated by currency question Democrats adopt “Free Silver” plank Nominate: – William Jennings Bryan – Cross of Gold Speech – Modern Campaigner Populist platform too narrow for national victory Demise of People’s Party

McKinley and Recovery Brought reassurance and stability Farm prices on the rise (European Crop failures) Currency Act of 1900: Reaffirmed gold standard End of the depression hurt Populist enthusiasm