1. POLITICS IN THE GILDED AGE

2. Five Presidents between 1877-1893
Status Quo Politics in the Gilded Age “the government that governs best governs least”
Five Presidents between
“The Forgotten Presidents”
Rutherford B. Hayes ( ) - Republican
James Garfield (1881) – Republican -assassinated
Chester A. Arthur ( ) -Republican
Grover Cleveland ( ) -Democrat
Benjamin Harrison ( ) –Republican
Government lacked direction & an agenda
Lines between parties blurred
Leadership of the country essentially lied in the hands of Congress
“Ship without a captain” syndrome

3. Biggest Issues of the Time
Patronage & Spoils System Reform
1883 Pendleton Act: established the non-partisan Civil Service Commission.
Established a list of jobs that were to be filled on the basis of exams administered by the commission in an attempt to find the best person possible for the job but it only applied to 10% of gov’t jobs.
Currency – who prints currency, and how much?
Regulation of Railroads & Strikes – see previous unit!
Tariffs – rates varied as parties fought over this issue
increasingly, the “common man” felt isolated/abused by government & big business

4. The Crisis
in American
Politics:
The
Birth of the
Populist
Movement

5. Complaints of the Rural “Common Man”
Economics of the 1890’s
Farm foreclosures
Railroad bankruptcies
Stock market drop
Unemployment up
Farmers suffering in profits
Country and government seemed to be looking out for the “big business” in the East
Farmers especially felt the need for organization & representation

6. Roots of the Populist Movement
Originally Farmers needed to organize for a variety of reasons:
a) isolationism b) provide economic services
The Grange Movement & Farmer’s Alliances:
Farmer’s Alliance of the Northwest
National Farmers’ Alliance
Alliances were designed to:
Unite farmers who had common problems
Remind farmers they are in this together
Stand against the abuses of the big business (RR) & the corruption of the wealth and power
Eventually grew stronger and more impatient.
The agrarian protest ultimately challenged the traditional 2 party system

7. United We Stand, Divided We Fall
In 1889 both the Northern and Southern Alliances merged into one—the Farmers’ Alliance.

8. Emerging Populist Ideology “Us vs.Them”
“There are but two sides, on the one side are the allied hosts of monopolies, the money power, great trusts, and railroad corporations…On the other are the farmers laborers, merchants, and all the people who produce wealth… Between these two there is no middle ground.”
“[there is an] irrepressible conflict between capital & labor”
“We believe that the power of government - in other words, of the people – should be expanded as rapidly and as far as the good sense of an intelligent people and the teachings of experience shall justify, to end oppression, injustice and poverty in the land”

9. Populism:
An Agrarian
Revolt

10. Price Indexes for Consumer & Farm Products: 1865-1913

11. The Populist (Peoples’) Party James B. Weaver, Presidential Candidate
Founded by James B. Weaver and Tom Watson.
Omaha, NE Convention in July, 1892.
Got almost 1 million popular votes in 1892 elections.
Several Congressional seats won.
James B. Weaver, Presidential Candidate
& James G. Field, VP

12. 1892 Election

13. ELECTION OF
1892

14. Omaha Platform of 1892 Re-monitization of silver . . .
Direct election of Senators.
Govt. ownership of RRs, telephone & telegraph companies.
Restriction of undesirable immigration.
8-hour work day for government employees.
Abolition of the Pinkerton detective agency.
Australian secret ballot.
A single term for President & Vice President.
Re-monitization of silver . . .

15. The Populist Platform in 1892 Omaha, Nebraska
FINANCES
“We demand a national currency that is safe, sound, and flexible issued by the general government “
Proposals:
A graduated income tax- more you make the more you pay
More money in circulation & that the money should be kept more in the hands of the people.
“That the needs of the many outweigh the needs of the few”
Free & unlimited coinage of silver– bimetallism

16. The
Panic
of 1893

17. Bi-Metallism Issue

18. Money & Politics: Brief History
US had traditionally used a bimetal system.
Pre-Civil War nations money supply came from free-wheeling state banksvalue of money issued was unstable – amount in circulation/supply & demand
1863 US Banking Act attempted to create more economic stability by only allowing and accepting money that was backed by the US Gov.
Meanwhile Civil War broke out, Lincoln issued and paid with greenbacks – federal money backed by nothing more than good faith With the war over, what should we do about the money supply?
1873 – Silver supply tightened and thus it became more valuable as a metal than as money and so silver was dropped as specie (backing for currency)—switched to gold standard.
Populist believe THIS is the problem, and must be fixed . . .

19. Causes of the 1893 Panic Several major corps. went bankrupt.
Over 16,000 businesses disappeared.
Triggered a stock market crash.
Over-extended investments.
Bank failures followed causing a contraction of credit [nearly 500 banks closed].
By 1895, unemployment reached 3 million.
Americans cried out for relief, but the Govt. continued its laissez faire policies!!

20. Panic of 1893 & the “Silver Solution”
Result of panic was “deflation” – a reduction in available money and credit.
A) Prices fall
B) less money in circulation
At the same time, westward expansion and mining brought a flood of silver and thus the price of silver fell hard and fast.
Soon Silverites wanted to put more money in circulation—use silver to back our currency again!
Country now became divided on the monetary issue of specie.

21. Here Lies Prosperity

22. Pick a Side GOLDBUGS SILVERITES bankers and businessmen
Supported “tight money” -gold only standard thus less $$$ in circulation
Effects: deflation
a) falling prices
b) value of money increases
c) fewer people have money
SILVERITES
Farmers and laborers
Supported “cheap money” – bimetallism – more money in circulation
Effects: Inflation
a) prices rise
b) value of money decreases
c) more people have more money

23. Result of 1894 Mid-term Elections
Populist vote increased by 40% in the bi-election year, 1894.
Democratic party losses in the West were catastrophic—all W votes went to populists!

25. Turning Point:
The
1896
Election

26. Gold / Silver Bug Campaign Pins

27. Election of 1896 William Jennings Bryan (D) William McKinley (R)
supported bimetallism
Was supported by Populists
Delivered “cross of gold speech”
Rep. called him radical, revolutionary, and anarchistic
William McKinley (R)

28. Bryant’s “Cross of Gold” Speech

29. Bryan: The Farmers Friend (The Mint Ratio)
18,000 miles of campaign “whistle stops.”

30. Election of 1896 William Jennings Bryan (D) William McKinley (R)
supported bimetallism
Was supported by Populists
Delivered “cross of gold speech”
Rep. called him radical, revolutionary, and anarchistic
William McKinley (R)
“Gold bug”
Front-porch campaign & Mark Hanna
Called upon big business and raised a lot of money
Won election, but the door was open for reform . . .

31. Why Did Bryan Lose?
His focus on silver undermined efforts to build bridges to urban voters.
McKinley’s campaign was well- organized and highly funded.

32. Gold Triumphs Over Silver
1900  Gold Standard Act:
confirmed the nation’s commitment to the gold standard.
A victory for the forces of conservatism.
Republican Party becomes the party of prosperity.

33. Significance of the Populist Movement
McKinley’s win = victory of urban/eastern interests over agrarian concerns.
The Democrats embraced the populist vote in the future.
Republicans would dominate politics for the next 30 years.
The reform spirit of the Populists would be embraced by the more urban, middle-class Progressives in the early 20th century.