Chapter 20 Notes

I. Politics in the Gilded Age


A. Presidents

1. Generally upheld the status quo and sided with big business. Major political issues included civil service reform and size/backing of money supply
2. 1876- Rutherford Hayes, Republican, known for his sense of decorum and support of temperance. Attempted to impose civil service standards to counter the spoils system. Ended reconstruction by pulling troops out of the south. (Election was a tie due to some vote pulling in the south, so he agreed to pull troops from the south in return for presidency)
3. 1880- James Garfield, Republican, last of the log cabin presidents. Also wanted to impose civil service standards, assinated by a jilted political ally (Charles Guiteau).
4. 1881- Chester Arthur, Republican, Garfield’s VP. Though known as a symbol of patronage and corruption. Arthur helped to push through civil service legislation- the Pendelton Civil Service Act that established standards, set up civil service exams, and forbade candidates from soliciting contributions from government employees
5. 1884- Grover Cleveland, Democrat. Known for fighting political bosses and spoilsmen as Governer of NY, consequently did not have support of NYC’s Tammany Hall. Still, he won with the support of NY’s immigrant population. Became contovercial for attempting to lower tariffs (to cut federal surplus) and cracking down on fraudulent Civil War veteran benefits. Opposed by entrenched business interests and the GAR (Civil War Veterans).
6. 1888- Benjamin Harrison, Republican. Backed by big business campaign contributions, enacted the McKinley Tariff, protected the federal surplus and greatly increased Civil War veteran pension ststem.
7. 1892- Grover Cleveland, (conservative) Democrat. Presided over a major depression in the 1890’s, held to a laissez-faire economics approach, used the help of JP Morgan and Belmont to save the gold standard, opposed the silver standard as proposed by William Jennings Bryan.(who would later be involved in the Scopes trial) Yeilded to high tariff proponents and attempted to push through an income tax proposal (Wilson-Gorman Tariff) which was deemed unconstitutional.
8. 1896- William McKinley, Republican. Managed to beat Democrat/Populist candidate William Jennings Bryan who espoused the silver standard, lower tariffs, and appealed to Western farmers. Morgan and other industrialists funded McKinley’s campaign.


II. Political movements, issues, and policies


A. Grangers and Alliance Movements

1. Grangers were mostly Great Plains farmers who organized to combat big business interests, particularly railroads and banks.
2. Grangers tried to organized cooperatives to keep farmersf from having to borrow money. Farming without borrowing was impossible so the movement failed
3. The Alliance Movement began in the South to protect cotton farmers trapped in the crop-lien system.
4. The National Colored Farmer’s Alliance came up at the same time to accommodate black cotton farmers.
5. The Northwestern was set up as a response to a major drought in Kansas.
6. The Northwestern and Southern Alliances created a political platform: tariff reduction, graduated income tax, public ownership of railroads, federal funding for irrigation projects, ban on “alien” landownership and free and unlimited silver coinage.
7. Alliance movements grew up quickly and boasted over 4 million members by 1890. By 1892, the alliance set up a third party: the Populists.

B. Currency and other Acts

1. Sherman Silver Purchase Act (1890)- to provide for silver coinage, repealed under Cleveland administration 1894 (when he had to ask Morgan for a loan)
2. Currency Act (1900)- passed under McKinley, commitied US to gold standard
3. Interstate Commerce Act (1887)- reaffirmed federal government’s power to regulate interstate commerce
4. Pendleton Civil Service Act (1883)- set up civil service requirements and standards
5. Willson-Gorman Tariff (1894)- imposed 2% income tax, unconstitutional
6. Dingley Tariff (1897)- Increased tariffs to an all-time highs

C. Court Decisions
1. Munn Vs Illinois (1877)- Upheld an Illinois law setting a maximum rate for railroad transportation of grain
2. Plessy vs. Ferguson (1896)- established separate but equal doctrine,
III. Depression 1893-97
A. Panic of 1893
1. Caused by overspecutation in railroad stocks
2. Railroad growth rates slowed due to agricultural stagnation
3. A London investment bank collapsed prompting it to sell American stocks and then convert dollars into gold
4. Gold reserbe dropped sharply causing confidence crisis
5. Sherman Silver Act produced in the US. Silver producers often demanded payment in gold
6. Veterans benefits and Pork Barrel projects during Harrison’s presidency lowered government reserves
7. Crisis of confidence led to collapsing stock prices and a run on gold
8. By late 1893, 74 railroad companies and 15,000 businesses had failed

B. Depression

1. Industrial unemployment of 20-25%
2. 1/3 of railroad mileage in bankruptcy
3. Farm prices dropped by 20% between 1890-96
4. Commodity prices plummeted
5. High unemployment and decreasing wages led to protests such as the Pullman strike and Coxey’s Army March
6. Morgan and Belmont bailed out the American government by perchasing $62 million in bonds (at reduced prices)
7. Debate about increasing the money supply reached a crescendo-silver advocates took over the Democratic and Populist parties
8. Setting the stage fpr the Progressive Movement, widespread poverty led reformers to look into the causes of poverty rather than simply blaming the poor for their condition.
9. The depression also set the stage for war and imperialist expansion... dun dun dun.