Politics and Economics Politics and Economics of the Gilded Ageof the Gilded Age

Unit VIBUnit VIB

AP United States HistoryAP United States History

Third Party System (1860-1896)

► Democrats Platform

► Pro-slavery► States’ rights; laissez-faire

Factions► Bourbon Democrats

Pro-business Democrats Supported civil service reforms

► Redeemer Democrats

Coalition► White Southerners, Catholics,

Lutherans, Jews, Immigrants, working class

► Solid South

► Republicans Platform

► Radical Reconstruction► Pro-business; tariffs; protectionism

Factions► Stalwarts

Preserve spoils system and machine politics

► Half-Breeds Pursued civil service reform

► Mugwumps Independents discouraged with corrupt GOP

Coalition► Business, upper-class, middle-class,

Northern WASPs, reformers, blacks, scalawags, carpetbaggers

► Northeast and West

► Antebellum and Post War Issues(1854-1877)► Slavery and Emancipation► Reconstruction policies

► Post Reconstruction Issues (1877-1896)► Civil Service Reform► Tariffs and Protectionism► Gold Standard and Silver

► Populist Party

Election of 1868► Ulysses S. Grant (R)► Horatio Seymour (D)

Ulysses S. Grant (R) (1869-1877)► Civil War hero, but no political

experience; linked with moderates and Radicals

► Grantism Credit Mobilier

► Union Pacific Railroad creates dummy construction company to hire execs at inflated salaries and earn high dividends

► Sold stock to Republican congressmen and bribed press to keep quiet

Whiskey Ring► Republicans embezzled liquor tax

revenues using bribes and networks

► Amnesty Act of 1872► Panic of 1873

Election of 1872

Panic of 1873: The Long Depression► Causes

Expansion of railroads, enterprises in industries and mines outpaces market demand

Coinage Act of 1873► Demonetizes silver contracting the

money supply► “Crime of 73”

Jay Cooke & Company bankrupt► Major financing investment firm

leads to chain reaction of banks

► Effects Over 100 railroads fail; 16,000

businesses fail► Unemployment at 14%

“Election” of 1876

► Republicans struggle to nominate “boring” Rutherford B. Hayes

► Democrats nominate solid and popular Samuel J. Tilden

► Tilden won the popular vote solidly and needed only 1 more electoral vote for majority

► Contested electoral votes in 3 Reconstruction states (Louisiana, South Carolina, Florida)

► Electoral Commission rewarded 3 sets of electoral votes to Hayes Split ideologically 8-7 in favor of

Republicans

Samuel Tilden (D)

Rutherford B.

Hayes (R)

81.8% voter turnout

Compromise of 1877► Hayes will become president,

if… Remove federal troops from the

South Help develop infrastructure in

South, ex. Railroads Appoint Southerner to Cabinet Limited enforcement of racial

equality► Redemption

Redeemer Democrats Plessy v. Ferguson (1896) Jim Crow Laws

► Segregation► Disenfranchisement

Literacy tests Poll taxes Grandfather clauses

Rutherford B. Hayes (R) (1877-1881)► Compromise of 1877► Great Railroad Strike of 1877► Civil service reform

Election of 1880► James A. Garfield (R)

Protective tariffs

► Winfield S. Hancock (D) Lower tariffs

79.4% voter turnout

James A. Garfield (R) (1881)► Challenged political

machines, spoils system, and senatorial courtesy

► Assassination July 2, 1881 Charles J. Guiteau

► “a disgruntled office-seeker”

► Death September 19, 1881

► Chester A. Arthur assumes presidency

Civil Service Reform► Patronage/Spoils System dominated

political appointments since Jackson► Corruption during Grant

administration called for reform Stalwarts

► Supported machine politics and spoils system

► Roscoe Conkling Half-breeds

► Pursued civil service reform► James G. Blaine

► Garfield’s assassination► Pendleton Civil Service Reform

Act (1883) United States Civil Service

Commission Federal employees based on

expertise, civil service exams Prohibited federal employees and

campaign contributions

Chester A. Arthur (R) (1881-1885)

► Assumed office after Garfield’s assassination

► Pendleton Act (1883) Despite being a Stalwart

► Chinese Exclusion Act of 1882

Election of 1884► Grover Cleveland (D)► James G. Blaine (R)► Campaign

“Blaine, Blaine, James G. Blaine. Continental liar, from the state of Maine”

“Rum, Romanism, and Rebellion”

“Mama, mama! Where’s my pa?”► “On to the White House, HA

HA HA”

77.5% voter turnout

Grover Cleveland (D) (1885-1889)► Haymarket Riot (1886)► Interstate Commerce Act (1887)

Interstate Commerce Commission (ICC)

► Opposed Civil War veteran pensions Grand Army of the Republic (GAR)

advocacy

► Pursued tariff reform

Election of 1888► Benjamin Harrison (R)

Protective tariffs

► Grover Cleveland (D) Lower tariffs Against inflationary currency

and war pensions Won the popular vote

79.3% voter turnout

Benjamin Harrison (R) (1889-1893)► Sherman Antitrust Act

(1890)► Billion Dollar Congress► Sherman Silver

Purchase Act (1890) Free Silver/Silverites

► McKinley Tariff (1890)► Homestead Strike (1892)

The Populist Movement► Origin and Evolution of Populist

Party Granger Movement -> Farmers Alliance -> Populist Movement -> People’s Party/Populist Party

► West and South► Omaha Platform (July 4, 1892)

Coinage of silver Direct election of Senators Graduated income tax State laws through

referendums/initiatives Government regulation/ownership of

infrastructure 8-hour workday Abolition of national banks Civil service reform

Bimetallism► Coinage Act of 1873► For Silver and Gold

Inflationary effect► ““If a farmer owes $3,000 and can earn $1 for If a farmer owes $3,000 and can earn $1 for

every bushel of wheat sold at harvest, he every bushel of wheat sold at harvest, he needs to sell 3,000 bushels to pay off the needs to sell 3,000 bushels to pay off the debt. If inflation could push the price of a debt. If inflation could push the price of a bushel of wheat up to $3, he needs to sell bushel of wheat up to $3, he needs to sell only 1,000 bushels.”only 1,000 bushels.”

Free Silver/Silverites► For Gold Standard

“Sound money” Banks and businesses preferred gold

standard Stable economy and prevents inflation

► Sherman Silver Purchase Act (1890) U.S. Treasury ordered to buy 4.5 million oz

of silver monthly Treasury notes could be turned in for silver

or gold► Most took gold depleting U.S. gold reserves

Election of 1892► Grover Cleveland (D)

Lower tariffs Gold standard

► Benjamin Harrison (R) Protective tariffs Bimetallism

► James B. Weaver (Pop) Coalition of farmers and labor

unions

74.7% voter turnout

Grover Cleveland (D) (1893-1897)► Panic of 1893► Bimetallism► Pullman Strike (1894)

Panic of 1893► Causes

Overexpansion Railroad speculation

► Pennsylvania and Reading Railroad bankruptcy

Silver Purchase Act repealed► Impact

Unemployment to 18.4% 16,000 businesses and 500 banks

bankrupt/failed Pullman Strike (July 1894) Coxey’s Army (1894)

► March on Washington by unemployed workers and farmers $500 million for jobs

► Dispersed by federal troops J.P. Morgan and the Treasury

► Cleveland and U.S. borrowed $65 million in gold

William Jennings Bryan (D)► “The Great Commoner”

Appealed to farmers, working class, middle class

► “Cross of Gold” Speech “If they dare to come out in the open

field and defend the gold standard as a good thing, we shall fight them to the uttermost, having behind us the producing masses of the nation and the world. Having behind us the commercial interests and the laboring interests and all the toiling masses, we shall answer their demands for a gold standard by saying to them, you shall not press down upon the brow of labor this crown of thorns. You shall not crucify mankind upon a cross of gold.”

Election of 1896► William McKinley (R)

Mark Hanna Outspent Bryan 5 to 1 Benefited from recovering

economy► William Jennings Bryan (D)

Populist rhetoric► Campaign

Bryan’s stump speeches McKinley’s “front-porch”

► Realignment election Ends Third Party System Begins Fourth Party System

► Republican domination