Corruption in Corruption in the Gilded the Gilded

AgeAge

Social DarwinismSocial Darwinism Term coined by Herbert Term coined by Herbert

SpencerSpencer Based on Charles Darwin’s Based on Charles Darwin’s

“survival of the fittest”“survival of the fittest” Human society evolves and Human society evolves and

improves due to competitionimproves due to competition Emphasized individualism – Emphasized individualism –

no matter how humble your no matter how humble your origins, you can rise as high origins, you can rise as high as your talents and as your talents and commitment will take youcommitment will take you

Capitalists used this idea to Capitalists used this idea to support their belief in support their belief in laissez-faire economics laissez-faire economics (which allowed unrestricted (which allowed unrestricted competition)competition)

The Gospel of The Gospel of WealthWealth

Andrew Carnegie Andrew Carnegie bought into the idea of bought into the idea of Social Darwinism, but Social Darwinism, but also believed that also believed that those who profit from those who profit from society have a society have a responsibility to responsibility to improve society in improve society in returnreturn

Endorsed philanthropy, Endorsed philanthropy, gave millions of dollars gave millions of dollars to build schools, to build schools, libraries, hospitals, libraries, hospitals, orphanages, etc.orphanages, etc.

The Gilded AgeThe Gilded Age Period of 1877 – 1900Period of 1877 – 1900 Term coined by Mark Term coined by Mark

TwainTwain ““Gilding” is when a Gilding” is when a

thin layer of gold is thin layer of gold is put over a worthless put over a worthless metal to create the metal to create the illusion of valueillusion of value

Twain described this Twain described this period as a thin layer period as a thin layer of prosperity masking of prosperity masking the poverty and the poverty and corruption underneathcorruption underneath

Ulysses S. GrantUlysses S. Grant 1822 – 18851822 – 1885 RepublicanRepublican 1818thth President President

(1869 – 1877)(1869 – 1877) Administration was Administration was

marred by dozens marred by dozens of scandals of scandals involving several involving several members of his members of his cabinet, mainly cabinet, mainly involving briberyinvolving bribery

The Whiskey RingThe Whiskey Ring Scandal involving Scandal involving

several members of several members of Grant’s administration, Grant’s administration, including his personal including his personal secretary, where secretary, where federal employees federal employees accepted bribes from accepted bribes from whiskey distillers to whiskey distillers to help them avoid paying help them avoid paying federal taxes on alcohol federal taxes on alcohol productionproduction

110 people were 110 people were convicted of defrauding convicted of defrauding the government out of the government out of at least $3 million in at least $3 million in taxestaxes

The Credit Mobilier The Credit Mobilier ScandalScandal

Several investors in the Several investors in the Union Pacific Railroad, Union Pacific Railroad, including Congressman including Congressman Oakes Ames, formed a Oakes Ames, formed a construction company, construction company, then used their positions then used their positions on the railroad’s board to on the railroad’s board to hire their company to do hire their company to do construction work at construction work at exaggerated pricesexaggerated prices

The Union Pacific received The Union Pacific received their funding from federal their funding from federal grants; when grant money grants; when grant money ran out, Ames gave other ran out, Ames gave other members of Congress members of Congress shares in the Union Pacific shares in the Union Pacific to bribe them to approve to bribe them to approve more federal grant moneymore federal grant money

Political MachinesPolitical Machines Informal political group Informal political group

designed to gain and designed to gain and keep powerkeep power

Growth of cities had Growth of cities had outpaced the ability of outpaced the ability of city governments to city governments to meet the needs of meet the needs of citizenscitizens

Run by party “bosses”Run by party “bosses” Party bosses helped Party bosses helped

immigrants find jobs, immigrants find jobs, housing, food, heat and housing, food, heat and protection; in return protection; in return they told immigrants they told immigrants who to vote for in who to vote for in electionselections

GraftGraft Graft – acquiring Graft – acquiring

money through money through dishonest or dishonest or questionable meansquestionable means

Example: party bosses Example: party bosses would know when and would know when and where the city might where the city might want to build a park, so want to build a park, so they would buy up the they would buy up the property cheap before property cheap before it became public it became public knowledge and then knowledge and then sell the land to the city sell the land to the city for personal profitfor personal profit

William “Boss” William “Boss” TweedTweed

1823 – 18781823 – 1878 Ran Tammany Hall (The Ran Tammany Hall (The

Democratic Party’s Democratic Party’s political machine in political machine in NYC) from 1858 – 1871NYC) from 1858 – 1871

Used his position to Used his position to make himself wealthymake himself wealthy

Arrested in 1871 and Arrested in 1871 and convicted of defrauding convicted of defrauding the city government of the city government of about $200 millionabout $200 million

Thomas NastThomas Nast 1840 – 19021840 – 1902 German immigrantGerman immigrant Worked for Harper’s Weekly Worked for Harper’s Weekly

as political cartoonist from as political cartoonist from 1859 to 18861859 to 1886

Targeted Boss Tweed and Targeted Boss Tweed and political machines; was so political machines; was so effective that Tweed offered effective that Tweed offered him a $500,000 bribe to go him a $500,000 bribe to go study art in Europe – Nast study art in Europe – Nast turned it down.turned it down.

Creator of modern image of Creator of modern image of “Santa Claus,” Uncle Sam, “Santa Claus,” Uncle Sam, the Donkey and Elephant the Donkey and Elephant symbols for Democratic and symbols for Democratic and Republican PartiesRepublican Parties

Died of Yellow Fever in Died of Yellow Fever in EcuadorEcuador

Rutherford B. Rutherford B. HayesHayes

1822 – 18931822 – 1893 RepublicanRepublican 1919thth President (1877 President (1877

– 1881)– 1881) ReformerReformer Replaced officials Replaced officials

who had been who had been appointed by party appointed by party bossesbosses

No spoils system in No spoils system in his administrationhis administration

Stalwarts & Stalwarts & HalfbreedsHalfbreeds

““Stalwarts”: Stalwarts”: Republicans who Republicans who supported the supported the political machines political machines and spoils systemand spoils system

““Half-breeds”: Half-breeds”: Republicans who Republicans who supported civil supported civil service reform and service reform and an end to the an end to the political machines political machines and spoils systemand spoils system

James GarfieldJames Garfield 1831 – 18811831 – 1881 RepublicanRepublican 2020thth President (1881) President (1881) Elected despite being Elected despite being

implicated in the implicated in the Credit Mobilier ScandalCredit Mobilier Scandal

A “Half-breed,” he was A “Half-breed,” he was assassinated after only assassinated after only 200 days in office by a 200 days in office by a disgruntled office disgruntled office seeker who felt he had seeker who felt he had been cheated out of a been cheated out of a good government jobgood government job

Chester A. ArthurChester A. Arthur 1829 – 18861829 – 1886 RepublicanRepublican 2121stst President (1881- President (1881-

1885)1885) A “Stalwart,” he was so A “Stalwart,” he was so

affected by Garfield’s affected by Garfield’s assassination that he assassination that he switched to being a switched to being a “Half-breed” and “Half-breed” and championed civil championed civil service reformservice reform

Did not receive Did not receive nomination in election nomination in election of 1884 due to terminal of 1884 due to terminal kidney conditionkidney condition

Pendleton Act of Pendleton Act of 18831883

Ended the spoils Ended the spoils system by creating system by creating the US Civil Service the US Civil Service CommissionCommission

Federal employees Federal employees would get jobs would get jobs based on skills and based on skills and merit, not political merit, not political favoritismfavoritism

Election of 1884Election of 1884 Republicans nominated Republicans nominated

former Speaker of the former Speaker of the House and Sec. of State House and Sec. of State James Blaine, but many James Blaine, but many voters believed he was voters believed he was corrupt due to his corrupt due to his implication in several implication in several railroad scandalsrailroad scandals

Democrats ran Governor Democrats ran Governor of New York Grover of New York Grover Cleveland, who was seen Cleveland, who was seen as honest due to his open as honest due to his open admission of fathering a admission of fathering a child out of wedlock with child out of wedlock with a mistressa mistress

Grover ClevelandGrover Cleveland 1837 – 19081837 – 1908 DemocratDemocrat 2222ndnd & 24 & 24thth President President

(1885-89, 1893-97)(1885-89, 1893-97) Fought for political Fought for political

reforms, but at the reforms, but at the same time was same time was willing to use willing to use military force to military force to limit labor unions limit labor unions (Pullman Strike)(Pullman Strike)

MugwumpsMugwumps Democrat Cleveland Democrat Cleveland

even won support from even won support from reform-minded reform-minded RepublicansRepublicans

These Republicans were These Republicans were called “mugwumps,” an called “mugwumps,” an Algonquin Indian word Algonquin Indian word meaning “important meaning “important person”person”

The term Mugwump The term Mugwump would mean someone would mean someone who switches political who switches political party for generations party for generations followingfollowing

Wabash v. IllinoisWabash v. Illinois 1886 Supreme Court 1886 Supreme Court

decisiondecision Court ruled that Court ruled that

states can not states can not regulate railroad regulate railroad companies because companies because railroads are engaged railroads are engaged in interstate in interstate commerce which can commerce which can only be regulated by only be regulated by the federal the federal governmentgovernment

Interstate Commerce Act of Interstate Commerce Act of 18871887

Reaction to Reaction to Wabash v. Wabash v. IllinoisIllinois decision decision

Created the Interstate Created the Interstate Commerce Commerce Commission to Commission to regulate railroads by regulate railroads by restricting rates and restricting rates and ensuring that no ensuring that no discriminatory discriminatory practices were usedpractices were used

ICC was disbanded in ICC was disbanded in 19951995

Benjamin HarrisonBenjamin Harrison 1833 – 19011833 – 1901 RepublicanRepublican 2323rdrd President (1889 President (1889

– 1893)– 1893) Grandson of William Grandson of William

Henry HarrisonHenry Harrison Had the first “billion Had the first “billion

dollar government”dollar government” Ran on campaign of Ran on campaign of

supporting high supporting high tariffstariffs

The McKinley Tariff of The McKinley Tariff of 18901890

Raised the tariff on Raised the tariff on imported goods to imported goods to nearly 50%nearly 50%

Passed Congress as Passed Congress as part of a political deal: part of a political deal: Republicans got the Republicans got the tariff, Democrats & tariff, Democrats & Populists got the Populists got the Sherman Silver Sherman Silver Purchase ActPurchase Act

Tariff would severely Tariff would severely hurt farmers, but hurt farmers, but greatly help greatly help industrialistsindustrialists

Sherman Antitrust Act of Sherman Antitrust Act of 18901890

First federal law First federal law limiting trusts, limiting trusts, monopolies, and monopolies, and cartels, but not really cartels, but not really enforced until Theodore enforced until Theodore Roosevelt’s presidencyRoosevelt’s presidency

Designed to protect Designed to protect competition among competition among businesses and to businesses and to protect consumers from protect consumers from the dangers of the dangers of monopoliesmonopolies

United States v. EC Knight United States v. EC Knight Co.Co.

18951895 First test of the Sherman First test of the Sherman

Antitrust ActAntitrust Act EC Knight Co. was a EC Knight Co. was a

sugar refinery that had a sugar refinery that had a monopoly on sugar in USmonopoly on sugar in US

Court ruled that Court ruled that Sherman Antitrust Act Sherman Antitrust Act could limit monopolies could limit monopolies only in distribution only in distribution (interstate commerce), (interstate commerce), not in manufacture of not in manufacture of goodsgoods

Grover Cleveland Grover Cleveland Returns!Returns!

1892: Cleveland was 1892: Cleveland was nominated by Democrats nominated by Democrats again and defeated both again and defeated both the Republican candidate the Republican candidate Harrison and the new Harrison and the new Populist Party’s candidate Populist Party’s candidate James B. WeaverJames B. Weaver

Shortly after taking office, Shortly after taking office, US experienced the Panic US experienced the Panic of 1893 (financial crisis)of 1893 (financial crisis)

It was also during this It was also during this term that Cleveland used term that Cleveland used US Army to end the US Army to end the Pullman StrikePullman Strike

William McKinleyWilliam McKinley 1843 – 19011843 – 1901 RepublicanRepublican 2525thth President (1897 President (1897

– 1901)– 1901) Defeated William Defeated William

Jennings Bryan in Jennings Bryan in 1896 election, and 1896 election, and won re-election in won re-election in 1900, but was 1900, but was assassinated in 1901 assassinated in 1901 by an anarchistby an anarchist

Political reformsPolitical reforms Secret ballot: individual’s Secret ballot: individual’s

votes would be kept votes would be kept secret, not publishedsecret, not published

Referendum: allows Referendum: allows citizens to vote directly on citizens to vote directly on important issues rather important issues rather than leave the issues in than leave the issues in the hands of elected the hands of elected officialsofficials

Recall: allows voters to Recall: allows voters to remove an elected official remove an elected official from office before their from office before their term is upterm is up

Initiative: allows voters to Initiative: allows voters to force elected officials to force elected officials to vote on a certain issuevote on a certain issue