1. Stalemate in Washington

2. Cleaning Up Politics
Patronage- when gov’t jobs go to supporters of the winner.
Rutherford B. Hayes tried to end this practice when he was elected.
The “Stalwarts,” local bosses of Republican political machines, were angry.
They labeled Republican reformers, like Hayes, as “Halfbreeds.”
Halfbreeds were accused of backing reform to create openings for their own supporters.

3. Cleaning Up Politics
In the 1880 election, the Republicans went with a mixed ticket: a Halfbreed, James Garfield, and a Stalwart, Chester A. Arthur.
A few months in, Garfield was assassinated by Charles Guiteau, a Stalwart who wanted Arthur as President.
Although he was a Stalwart, Arthur supported the Pendleton Act.
It allowed the president to decide which jobs should be filled according to the rules set by the bipartisan Civil Service Commission.

4. Democrats Reclaim the White House
The Republicans were divided over reform in the 1884 election, so Democrats nominated Grover Cleveland, who was against the corrupt Democratic Political Machine, Tammany Hall, in New York.
By doing this, they thought they could steal some pro-reform votes from the Republicans.
His opponent, James Blaine, former Speaker of the House, was accused of profiting financially from a political favor given to the Union Pacific RR.
Cleveland, a bachelor, had an illegitimate child
Because people were so tired of corruption in gov’t, many voted for Cleveland because he admitted that he had this child.

5. The Interstate Commerce Commission
As the first Democrat to win since 1856, Cleveland faced a horde of supporters seeking jobs, but economic issues soon overshadowed political reform.
Many strikes occurred during Cleveland’s administration. Police and paid guards sometimes attacked the strikers. A bomb exploded at a labor demonstration in Haymarket Square in Chicago.
Many small business owners and farmers were upset with RRs because they were paying high rates, while large corps. Were getting rebates, partial refunds.
Both Dems and Reps believed that the gov’t should stay out of the economy.

6. The Interstate Commerce Commission
In 1886 the Supreme Court ruled in the case of Wabash v. Illinois that the state of Illinois could not restrict the rates that the Wabash Railroad charged for traffic between states because only the federal government could regulate interstate commerce.
In 1887 Cleveland signed the Interstate Commerce Act, which created the Interstate Commerce Commission. This was the first law to regulate interstate commerce.

7. Election of 1888
Because many believed in laissez-faire, low tariffs were a major issue in the election of 1888
Benjamin Harrison (R) ran against Cleveland (D).
Harrison was given large contributions from industrialists who wanted tariff protection.
He won the electoral vote, but not the popular vote.
Because of this victory, Reps had control of both houses and the Presidency, so they passed legislation on issues of national concern.

8. Republican Power
The McKinley Tariff cut tariff rates on some goods, but increased the rates of others. It lowered federal revenue and left the nation with a budget deficit
A new pension law passed in 1890 for veterans furthered worsened the federal deficit.
The Sherman Antitrust Act of 1890 made trusts illegal, although the courts did little to enforce the law.

9. Processor:
16-1 Assessment
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