1. The Politics of The Gilded Age

2. Big Issues/Themes ■“Forgettable” Presidents ■Civil Service Reform & Patronage ■Tariffs ■Money Supply/Currency ■Power of Business ■Rise (& Fall) of New Parties

3. Politics of Stalemate ■The 5 presidential elections from 1876 to 1892 were the most closely contested elections ever ■Congress was split as well: –Democrats controlled the House –Republicans held the Senate ■This “stalemate” made it difficult for any of the 5 presidents or either party to pass significant legislation for 20 years No more than 1% of the popular vote separated the candidates in 4 of 5 elections Pendleton Civil Service Act of 1883 Interstate Commerce Act of 1887 Sherman Antitrust Act of 1890 McKinley Tariff Act of 1890

4. Intense Voter Loyalty to the 2 Parties

5. The Two-Party Stalemate

6. A Two- Party Stalemate Republicans & Democrats were closely divided in New York, Ohio, & Indiana—these 3 states swung the 5 presidential elections As a result, 16 of the 20 presidential & VP candidates were from NY, Ohio, or Indiana

7. Democratic BlocRepublican Bloc  Supported by white southerners, farmers, immigrants, & the working poor  Favored white supremacy & supported labor unions  Supported by Northern whites, blacks, & nativists  Supported big business & favored anti-immigration laws Well-Defined Voting Blocs “Waving the Bloody Shirt” continued: Every state that seceded from the United States was a Democratic State…every man that tried to destroy this nation was a Democrat. Every man that loved slavery more than liberty was a Democrat. The man that assassinated Lincoln was a Democrat…Soldiers, every scar you have got on you heroic bodies was given to you by a Democrat. Every state that seceded from the United States was a Democratic State…every man that tried to destroy this nation was a Democrat. Every man that loved slavery more than liberty was a Democrat. The man that assassinated Lincoln was a Democrat…Soldiers, every scar you have got on you heroic bodies was given to you by a Democrat. — —Col Robert Ingersoll to Union veterans during the 1876 presidential election

8. Civil Service Reform ■The most important political issue of 1880s was civil service reform: –Republicans were split among Stalwarts (opposed reform), Half-Breeds (supported reform) –Republican James Garfield was elected in 1880 but was soon killed by Charles Guiteau –If the spoils system could kill a president, it was time to end it “I am a Stalwart, and Arthur is president now!”

9. Civil Service Reform Pendleton Act ■President Arthur & Congress pushed for the Pendleton Act (1883) for competitive exams for civil service jobs & campaign finance reform (pros & cons) ■Republicans chose James Blaine over Arthur as its nominee in 1884 against Grover Cleveland ■Although Blaine was a HB, Mugwumps (R) switched parties to support Cleveland ■Cleveland won & became the 1st Democrat to be elected president in 28 years State & local governments mirrored these civil service reforms in the 1880s & 1890s

10. Pendleton Act

11. Ma, Ma…where’s my pa? He’s going to the White House, ha… ha… ha…! A Dirty Campaign

12. Tariffs ■Cleveland sought to reduce gov’t spending & lower the tariff ■Benjamin Harrison narrowly defeated Cleveland in 1888 & Repubs took control of Congress: McKinley Tariff of 1890 –Passed the McKinley Tariff of 1890; highest tariff since 1828 (48%) –This “Billion-Dollar” Congress expanded gov’t activities The Tariff of Abominations

13. “Coming Out” for Harrison

14. Govt & Big Business ■From 1870-1900, 28 state commissions were created to regulate industry, especially RRs: Munn v. Illinois –In 1870, Illinois declared RRs to be public highways; this was upheld by Munn v. Illinois (1876) Wabash v. Illinois –But was overturned in Wabash v. Illinois (1886): only Congress can regulate interstate trade Supreme Court ruled: “private property affecting public interest” can be “controlled by the public for the common good”

15. Govt & Big Business ■Congress responded by creating: Interstate Commerce Commission –The Interstate Commerce Commission in 1887 to regulate the railroad industry Sherman Antitrust Act –The Sherman Antitrust Act in 1890 which made it illegal to restrain trade (punishable by dissolution of the company) The ICC became the model for future regulatory agencies This was the 1st attempt by the federal gov’t to regulate big business US v. E. C. Knight Co (1895) was the 1st test of antitrust law The Supreme Court ruled that manufacturing monopoly do not restrain trade because making a good is not the same as selling it

16. The Depression of 1893-1897 ■Voters hated the Republican tariff: –Voted for a Democratic majority in Congress in 1890 & for Cleveland for president in 1892 –More laissez-faire this time ■In 1893, a collapse in the stock market spiraled the economy into a severe 4-year depression: –500 banks & 1,500 businesses failed; 20% unemployment President Cleveland & Congress responded with the Wilson-Gorman Tariff Act that reduce tariffs & created a slight income tax (did not help)

17. Causes and Effects of the Panic of ‘93 ■Causes? –RR failures: Had sold too much stock, Investors now in debt –Decreased confidence in gold standard –Bank failures in England: Brit investors sell US stocks, get back $ in gold, deplete US reserves –String of poor harvests ■Effects? –Cleveland becomes more laissez-faire, Repeal of Sherman Silver Act –Coxey’s Army ■What was the fix? –JP Morgan & other financiers bailed out the US gov’t Gov’t sells bonds to Morgan for cheap, Morgan pays $62 million Morgan re-sells bonds for a profit Gov’t uses $62 million to buy up gold, restore confidence in money supply –Long-term effects of the “bailout?” Marriage of government and big business

18. The Depression of 1893-1897 ■In 1894, there were 1,400 strikes led by hordes of unemployed people demanding gov’t relief: –Jacob Coxey led an “army” from Ohio to D.C. to convince Congress to create jobs by spending $500 million on new roads

19. The Depression of 1893-1897 Eugene V. Debs ■When the Pullman Car Co cut wages & laid off workers, the American RR Union, led by Eugene V. Debs, joined the strike: –The Pullman Strike crippled rail traffic & western farmers –Cleveland issued an injunction & sent US troops; led to violence –In re Debs –In re Debs in 1895, the Supreme Court upheld the injunction since the strike restrained US trade This was a clever application of the Sherman Antitrust Act In re Debs made the Sherman Act a great anti-labor tool

20. The Farmers’ Movements & the Rise of the Populists

21. The Farm Problem ■By the 1870s, discontent among farmers was growing due to: –Harsh farming conditions –Declining grain & cotton prices –Rising RR rates & mortgages –Government deflation policies ■Farmers lashed out at banks, merchants, railroads, & the US monetary system

22. New Parties ■The Grangers – support group for farmers on Great Plains –Social gatherings, agricultural info, etc. –Hated RR which drove up costs & bribed politicians –Granger laws – set maximum RR rates in some states RR take laws to Supreme Court Declared constitutional in Munn v. Illinois Wabash v. Illinois – states can’t regulate interstate commerce, but fed gov’t can Interstate Commerce Commission

23. Price Index for Consumer & Farm Goods (1865-1915)

24. Credit & Money ■Grant’s decision to reduce the # of greenbacks after the Civil War deflated the money supply: –By 1879, the US was restored to the international gold standard & stabilized the US economy –But this policy made money more scarce & limited credit which hurt western farmers

25. Greenback & Silver Movements ■Many farmers supported the “free silver” movement: –The US minted silver & gold coins at a 16:1 ratio, but stopped in 1873 due to an oversupply of gold –But western miners found huge lodes of silver & wanted “free silver”—the gov’t should buy all silver from miners & coin it This would lead to inflation & someone would consistently buy silver from miners Bland-Allison Act In 1878, Congress passed the Bland-Allison Act to coin between $2-4 million in silver coins  Sherman Silver Purchase Act In 1890, Congress passed the Sherman Silver Purchase Act to increase silver coinage but not to 16:1 (the act was repealed in 1893)

26. The Farmers’ Alliance Nat’l Farmers’ Alliance ■In 1890, the Nat’l Farmers’ Alliance was formed to establish farm cooperatives & provide social gatherings Ocala Demands ■In 1890, made Ocala Demands: –Allow farmers to store crops in gov’t silos when prices are bad –Free-coinage of silver, a federal income tax, & no national bank –Direct election of US senators –Tighter regulation of RRs

27. The Populist Party ■In 1890, the Peoples’ Party (Populists) was formed & elected several state & national legislators ■By 1892, the Populists ran James Weaver for president; his platform was the Ocala Demands ■Populists were not happy with the results

28. The Election of 1892 Black farmers voted Republican & did not support the Populists Southern Democrats used racism & intimidation to remind whites of the “bloody flag” Even Midwestern farmers did not vote Populist Upon his election, Cleveland called for and received the repeal of the Sherman Silver Purchase Act which alienated Southern & Western Democrats from the party

29. Populist Allegory—The Wizard of Oz What does each character represent? What about the “Yellowbrick Road” and the “Ruby Slippers”?

30. Good Witch of North? Bad Witch of the East?

31. “Emerald City”? “Oz”? The Wizard?

32. Platform of Lunacy

33. The Election of 1896 William Jennings Bryan ■A Populist-Democrat merger looked possible in 1896 when William Jennings Bryan received the Democratic nomination against Repub William McKinley: –Called for free silver & income tax; attacked trusts & injunctions –Bryan visited 26 states on his whistle-stop campaign to education Americans on silver “Having behind us the producing masses…we will answer their demand for the gold standard ‘You shall not press down upon the brow of labor this crown of thorns, you shall not crucify mankind upon a cross of gold.’”

34. The Election of 1896 ■Advised by RNC chairman, Mark Hanna, McKinley waged a “front porch” campaign from Ohio ■Aided by the press, McKinley’s message reached as many voters: –Advocated economic, urban, & industrial growth –Aroused fear that a “free silver” victory would result in 57¢ dollar

35. 18,000 miles of campaign “whistle stops” Bryan: The Farmers’ Friend

36. The Election of 1896 The election of 1896 killed the Populist Party, although key platform ideas (income tax, secret ballot, direct election of Senators) would be enacted by other parties

37. The McKinley Administration

38. ■Republicans benefited from an improving economy, better crop production, & new discoveries of gold: –Election of 1896 cemented Republican rule for 30 years & became party of prosperity promoted regulate –From 1860-1890, Republicans had promoted industry; by 1900, it was time to regulate it

39. The McKinley Administration ■McKinley was an activist president and perhaps was the first “modern” president: –He communicated well with the press –The Spanish-American War brought the USA respect as a world power –The Gold Standard Act –The Gold Standard Act (1900) ended the silver controversy

40. Conclusions: A Decade of Dramatic Changes

41. Conclusions: A Decade of Changes ■The economic hardships of the Depression of 1893 forced people to rethink industry, urbanization, & the quality of American life ■Many embraced the need for reform; Led to the beginning of the Progressive Era