The Politics The Politics of the Gilded of the Gilded

AgeAge

Themes of Gilded Age (1869-Themes of Gilded Age (1869-1889)1889)

PoliticsPolitics: hard v. soft $, tariff, : hard v. soft $, tariff, corruption, patronage & trustscorruption, patronage & trusts

IndustrialismIndustrialism: railroads, steel, oil, : railroads, steel, oil, electricity, bankingelectricity, banking

TransformationTransformation: agrarian to urban: agrarian to urban UrbanizationUrbanization: “new” immigrants: “new” immigrants Unions & Unions & reformreform PopulismPopulism: farmers losing ground: farmers losing ground ““Last WestLast West”: farming, mining, cattle”: farming, mining, cattle By 1900, society gets more By 1900, society gets more stratifiedstratified

"What is the chief "What is the chief end of man?-- to get end of man?-- to get rich. In what way?-- rich. In what way?--

dishonestly if we can; dishonestly if we can; honestly if we must."honestly if we must."

-- -- Mark Twain Mark Twain 18711871

The Election of 1868The Election of 1868Republicans - nominate Republicans - nominate Ulysses S. GrantUlysses S. Grant–promises continued promises continued Military Reconstruction Military Reconstruction

–Campaigned by waving Campaigned by waving the "Bloody Shirt" - vote the "Bloody Shirt" - vote how you shothow you shot

Waving the Waving the bloody shirtbloody shirt

Ulysses S. GrantUlysses S. Grant

Democrats - nominate Democrats - nominate Horatio Seymour Horatio Seymour –"Ohio Idea“"Ohio Idea“

»Policy of Repudiation - Policy of Repudiation - redemption of Bonds at redemption of Bonds at highest possible levelhighest possible level

–Seymour backs Eastern Seymour backs Eastern banker’s gold plan banker’s gold plan insteadinstead

500,000 Freedmen vote 500,000 Freedmen vote for Grantfor Grant

Grant wins by 300,000 Grant wins by 300,000 votesvotes

Grant Administration Grant Administration Called the "Era of Good Called the "Era of Good

Stealings"Stealings" Democrats locked out of Democrats locked out of

political troughpolitical trough Business & political "machines" Business & political "machines"

gain spoilsgain spoils Period of graft, corruption, & Period of graft, corruption, &

scandalscandal

The ScandalsThe Scandals

Black Friday – Black Friday – September 24, 1869September 24, 1869

"Jubilee Jim" Fisk (the "Jubilee Jim" Fisk (the Brass) & Jay Gould Brass) & Jay Gould (the Brains) (the Brains) –Corner the gold market Corner the gold market after promise from after promise from Grant to keep Treasury Grant to keep Treasury from selling gold from selling gold reservesreserves

Panic buying drives up Panic buying drives up pricesprices

Treasury releases Treasury releases reserves reserves

Prices plummet Prices plummet Many are bankrupt Many are bankrupt Grant exonerated of Grant exonerated of any wrong-doingany wrong-doing

Tweed Ring Tweed Ring ScandalsScandals"Boss" "Boss" William William Marcy Marcy Tweed Tweed of of TammanTammany Hall in y Hall in NYCNYC

Used bribery, graft, & Used bribery, graft, & fraudulent elections fraudulent elections to extort profits from to extort profits from political positionpolitical position

NY TimesNY Times published published reports of reports of scandalsscandals

Cartoonist Cartoonist Thomas Nast Thomas Nast attacked attacked TweedTweed

Boss Tweed

Samuel J. Tilden Samuel J. Tilden prosecuted Tweed on prosecuted Tweed on corruption chargescorruption charges

Boss Tweed dies in Boss Tweed dies in jailjail

                                                                                                                                                

The Tammany Tiger Loose - What are you going to do about it?

Credit Mobilier Credit Mobilier ScandalScandalUnion Pacific RR Union Pacific RR

insiders formed insiders formed construction company construction company

Made exorbitant Made exorbitant profits by hiring & profits by hiring & overcharging overcharging themselves (348% themselves (348% dividends in 1 year!)dividends in 1 year!)

Used bribery & Used bribery & kickbacks to Congresskickbacks to Congress

1872 Congressional 1872 Congressional investigation led to investigation led to censuring of 2 censuring of 2 members & the VPmembers & the VP

Whiskey Ring Whiskey Ring ScandalScandalWhiskey producers Whiskey producers

cheated gov't out of cheated gov't out of millions of dollars in millions of dollars in excise taxesexcise taxes

Paid kickbacks to Paid kickbacks to controllers & tax controllers & tax collectorscollectors

Grant: “Let no guilty Grant: “Let no guilty man escape.”man escape.”

Grant’s personal Grant’s personal secretary is involved secretary is involved

Persuaded jury not to Persuaded jury not to convictconvict

Military Ring Military Ring ScandalScandal

Secretary of War Secretary of War Belknap involved Belknap involved selling the privilege selling the privilege of disbursing shoddy of disbursing shoddy goods to Indiansgoods to Indians–Made $24,000 profitMade $24,000 profit

Grant accepts Grant accepts Belknap’s resignation Belknap’s resignation "with regret“ the same "with regret“ the same day that the House day that the House impeached himimpeached him

Scandals lead to calls Scandals lead to calls for civil service reformsfor civil service reforms

Election of 1872Election of 1872 Liberal Republican Liberal Republican "Revolt""Revolt"

Republican party splits Republican party splits over "Anti-Grantism“over "Anti-Grantism“

Liberal Republican Liberal Republican Party FormedParty Formed–““Turn the Rascals Out!”Turn the Rascals Out!”

–Led to nomination of Horace Led to nomination of Horace Greeley, liberal editor of NY Greeley, liberal editor of NY TribuneTribune

–Democrats endorsed Greeley Democrats endorsed Greeley as wellas well

Republican Party re-Republican Party re-nominated Grantnominated Grant

Grant wins 286 - 66 electoral Grant wins 286 - 66 electoral votes after much votes after much mudslingingmudslinging

Election leads to Election leads to minor civil service minor civil service reforms & a general reforms & a general amnesty for most amnesty for most southernerssoutherners

Grant’s 2Grant’s 2ndnd term term marred by economic marred by economic crisiscrisis

Panic of 1873Panic of 1873Causes:Causes:

–Overproduction of Overproduction of railroads, mines, railroads, mines, factories, & farm factories, & farm productsproducts

–Risky loans unpaidRisky loans unpaid–Depreciation of Depreciation of GreenbacksGreenbacks

Collapse leads to Collapse leads to 15,000 businesses 15,000 businesses failingfailing

Currency controversy Currency controversy heats up into major heats up into major issueissue

Currency ControversyCurrency Controversy““Contraction”Contraction”

–Process of removing Process of removing paper "Greenbacks" paper "Greenbacks" from circulation leads from circulation leads to controversyto controversy

Hard Hard MoneyMoney–CreditorsCreditors–Less Less currencycurrency

–DeflationDeflation–Gold Gold currencycurrency

–BankersBankers

Soft MoneySoft Money–DebtorsDebtors–More More currencycurrency

–InflationInflation–Silver Silver currencycurrency

–FarmersFarmers

1870: Supreme Court ruled the 1870: Supreme Court ruled the Civil War Tender Act Civil War Tender Act unconstitutional unconstitutional – Set stage to continue Set stage to continue withdrawing inflated Civil War withdrawing inflated Civil War paper moneypaper money

Grant adds two seats to Grant adds two seats to Supreme Court (to 9 Justices) Supreme Court (to 9 Justices) who vote to repeal earlier who vote to repeal earlier decision & keep Greenbacks in decision & keep Greenbacks in circulationcirculation

1874: Grant persuaded by 1874: Grant persuaded by Hard Money people to veto a Hard Money people to veto a bill to expand the money bill to expand the money supplysupply

1875: Specie Resumption Act 1875: Specie Resumption Act – Pledges government to Pledges government to withdraw more Greenbacks & withdraw more Greenbacks & to buy all Greenbacks back for to buy all Greenbacks back for gold by "Redemption Day" in gold by "Redemption Day" in 18791879

Silver IssueSilver Issue Controversy over gold coins Controversy over gold coins

vs. silver coinsvs. silver coins Early 1870's: Treasury sets Early 1870's: Treasury sets

rate of exchange for silver rate of exchange for silver at 1/16 the price of goldat 1/16 the price of gold

This is below "market" valueThis is below "market" value Miners slow down Miners slow down

extraction & sale of silverextraction & sale of silver

"Crime of ‘73" "Crime of ‘73" Treasury stops coinage Treasury stops coinage of silver dollarsof silver dollars

New silver deposits New silver deposits found & price of silver found & price of silver dropsdrops

Call for new silver Call for new silver minting & return to minting & return to “Dollar of Our Daddies"“Dollar of Our Daddies"

Grant’s Monetary Grant’s Monetary Policy:Policy:Contraction & a Contraction & a

“Hard-money” policy“Hard-money” policyDecreases the money Decreases the money supplysupply

Brings inflation under Brings inflation under controlcontrol

Increases the Increases the government’s credit government’s credit rating levelrating level

Worsens the Worsens the depression begun depression begun with the Panic of 1873with the Panic of 1873

Brings Greenbacks Brings Greenbacks back to face valueback to face value

Results: Results: Democratic House is Democratic House is elected in 1874elected in 1874

Greenback Labor Greenback Labor Party formed in 1878Party formed in 1878–14 members of 14 members of CongressCongress

Bland-Allison Act Bland-Allison Act (1878) (1878) –Instructed Treasury to Instructed Treasury to buy & mint $2-4 buy & mint $2-4 million a month of million a month of silver as compromisesilver as compromise

End of depression = End of depression = end of controversyend of controversy

Politics in the Politics in the Gilded AgeGilded Age

Paradox of PoliticsParadox of PoliticsEra of “Forgettable Era of “Forgettable Presidents”Presidents”

Congress & business Congress & business more influentialmore influential

Major parties agreed Major parties agreed on most major issues, on most major issues, yet highly competitive yet highly competitive political erapolitical era

Two-Two-Party Party

StalematStalematee

80% voter turnout & 80% voter turnout & straight party ticket straight party ticket votingvoting

Patronage & bribery Patronage & bribery dominated politicsdominated politics

2 major parties:2 major parties:

RepublicansRepublicansProtestant / Protestant / PuritanismPuritanism

Personal MoralityPersonal MoralityBusiness supportBusiness supportNortheast / MidwestNortheast / MidwestFreedmen / GARFreedmen / GAR

DemocratsDemocratsCatholic / Lutheran Catholic / Lutheran Tolerance of differencesTolerance of differencesResisted gov't control of Resisted gov't control of morals morals

Old SouthOld South Industrial cities / LaborIndustrial cities / Labor

Intense Intense Voter Voter

LoyaltyLoyalty

Republican Party Republican Party FactionsFactions

StalwartsStalwarts "Lord Roscoe" "Lord Roscoe" Conkling Conkling

Senator from Senator from New York New York

Embraced Embraced spoils systemspoils system–Jobs for votes Jobs for votes

Half-Breeds Half-Breeds James G. James G. Blaine Blaine

Congressman Congressman from Maine from Maine

Lip-service to Lip-service to reformreform

MugwumpsMugwumpsThomas Nast Thomas Nast

–Cartoonist who Cartoonist who embodiedembodied idealsideals

Young liberal Young liberal reformersreformers

Anti-corruptionAnti-corruptionHelp freedmenHelp freedmen

Conflicts within Conflicts within Republican Party Republican Party led to deadlockled to deadlock

Election of 1876Election of 1876 Grant Grant considers 3considers 3rdrd TermTerm–““Reminded" Reminded" by by Congressional Congressional Resolution of Resolution of the tradition the tradition of 2 termsof 2 terms

Puck Wants Puck Wants a Strong a Strong

Man at the Man at the Head of Head of

Government-Government-- But Not - But Not ThisThis Kind Kind

The The Political Political ‘Army of ‘Army of SalvationSalvation

’ ’

Republican Stalwarts Republican Stalwarts & Half-breeds reach & Half-breeds reach compromise, nominate compromise, nominate Rutherford B. Hayes Rutherford B. Hayes –"The Great Unknown“"The Great Unknown“–Former Governor of Former Governor of OhioOhio

Democrats nominate Democrats nominate Samuel J. TildenSamuel J. Tilden–"Whispering Sammy“"Whispering Sammy“–NY attorney who NY attorney who bagged Tweedbagged Tweed

–Campaigns against Campaigns against Republican Scandals Republican Scandals & for Civil Service & for Civil Service ReformReform

Hayes vs. TildenHayes vs. Tilden

Tilden wins 184 out of Tilden wins 184 out of 185 needed electoral 185 needed electoral votesvotes

20 electoral votes in 20 electoral votes in contest, four southern contest, four southern states send dual sets states send dual sets of elector votesof elector votes

1876 Presidential Election

1876 Presidential Election

Constitution states Constitution states that the President of that the President of the Senate should the Senate should open the votes in the open the votes in the presence of the House presence of the House and Senate - no and Senate - no mention of who countsmention of who counts

The Political Crisis of 1877

The Political Crisis of 1877

“Corrupt Bargain” Part II?

President of the President of the Senate (Vice Senate (Vice President) = President) = RepublicanRepublican

Speaker of the Speaker of the House = DemocratHouse = Democrat

A Political Crisis: The “Compromise” of 1877A Political Crisis: The “Compromise” of 1877

Compromise of Compromise of 1877 1877 Passage of Electoral Act Passage of Electoral Act

of 1877 of 1877 –Set up electoral Set up electoral commission 15 men - 5 commission 15 men - 5 each from House, each from House, Senate, & Supreme CourtSenate, & Supreme Court

–Republicans outnumber Republicans outnumber Democrats 8-7Democrats 8-7

The Compromise:The Compromise:–Republican Hayes is Republican Hayes is PresidentPresident

–South to lose the last South to lose the last remaining Federal Troopsremaining Federal Troops»Reconstruction ends at Reconstruction ends at expense of southern blacksexpense of southern blacks

–Southern RR routeSouthern RR route

Hayes PrevailsHayes Prevails

Alas, the Woes of Childhood…

Alas, the Woes of Childhood…

Sammy Tilden—Boo-Hoo! Ruthy Hayes’s got my Presidency, and he won’t give it to me!

Hayes PresidencyHayes Presidency(1877 - 1881)(1877 - 1881)

““His Fraudulency” & His Fraudulency” & “Lemonade Lucy”“Lemonade Lucy”

Economic & Labor Economic & Labor problemsproblems–Railroad strikes put Railroad strikes put downdown

66 Immigrant problemsImmigrant problems–Anti-Chinese Kearneyites Anti-Chinese Kearneyites in Californiain California

–Hayes vetoed Anti-Hayes vetoed Anti-Chinese immigration lawChinese immigration law

–Bill passes in 1882 during Bill passes in 1882 during Arthur AdministrationArthur Administration

Election of 1880Election of 1880 RepublicansRepublicans

–Standoff between Stalwarts Standoff between Stalwarts & Half-Breeds leads to & Half-Breeds leads to "Dark Horse" candidate "Dark Horse" candidate

James A. Garfield gets James A. Garfield gets nominationnomination–Chester A. Arthur Chester A. Arthur (Stalwart) as VP(Stalwart) as VP

Democrats nominate Democrats nominate Winfield S. HancockWinfield S. Hancock–Civil War General Civil War General wounded at Gettysburgwounded at Gettysburg

Campaign about Campaign about character not issues character not issues

Garfield wins 214 to Garfield wins 214 to 155 in electoral vote155 in electoral vote–By 39,000 votesBy 39,000 votes

Election of 1880Election of 1880

Stalwarts & Half-Stalwarts & Half-Breeds fight over Breeds fight over spoilsspoils

Half-Breed Blaine Half-Breed Blaine becomes Secretary of becomes Secretary of State & sought to State & sought to shut out the shut out the StalwartsStalwarts

June 1881: Stalwart June 1881: Stalwart office seeker Charles office seeker Charles Guiteau assassinates Guiteau assassinates President Garfield President Garfield who dies that who dies that SeptemberSeptember

Garfield Garfield AssassinatedAssassinated

““I am a Stalwart. I am a Stalwart. Arthur is now President Arthur is now President

of the US”of the US”

Chester A. Arthur Chester A. Arthur becomes Presidentbecomes President

Nation shocked by Nation shocked by "an office - or your "an office - or your life!"life!"

President President Chester Chester

A. A. ArthurArthur

Arthur Presidency Arthur Presidency (1881-1885)(1881-1885)

President Arthur takes President Arthur takes up cause of civil service up cause of civil service reformreform

Conklingites seek Conklingites seek offices & favors - get offices & favors - get cold shoulder from cold shoulder from ArthurArthur

Pendleton Act of 1883Pendleton Act of 1883–Prohibited financial Prohibited financial assessments on office assessments on office holdersholders

–Established merit Established merit system based on system based on aptitudeaptitude

–Set up Civil Service Set up Civil Service Commission & created Commission & created classified positionsclassified positions

Problem: Problem: –Politicians Politicians turn to Big turn to Big Business to Business to make up for make up for campaign campaign fundsfunds

Election of 1884Election of 1884 Republicans nominate Republicans nominate James G. Blaine James G. Blaine –Half-BreedHalf-Breed–Tainted by scandal Tainted by scandal

»"Mulligan Letters" "Mulligan Letters" proving his corruption proving his corruption ("Burn this letter.“)("Burn this letter.“)

Scandal caused some Republicans Scandal caused some Republicans to jump shipto jump ship– Called Mugwumps = "holier than Called Mugwumps = "holier than thou“thou“

Democrats nominate Grover Democrats nominate Grover ClevelandCleveland–"Grover the Good“"Grover the Good“–Said to be cleanSaid to be clean–Republicans discovered he had Republicans discovered he had fathered an illegitimate sonfathered an illegitimate son

Election is all about Election is all about character, not about character, not about issuesissues–D= "Burn, burn, burn D= "Burn, burn, burn this letter"this letter"

–R= "Ma, Ma, where’s R= "Ma, Ma, where’s my Pa?”my Pa?”

–R= "Rum, Romanism, R= "Rum, Romanism, Rebellion"Rebellion"

Ma, Ma…where’s my pa?He’s going to the White House, ha… ha… ha…!

A Dirty CampaignA Dirty Campaign

Blaine vs. Blaine vs. ClevelandCleveland

Cleveland wins 219-Cleveland wins 219-182 182 –First Democrat in First Democrat in White House since White House since BuchananBuchanan

Cleveland Cleveland Presidency (1885 - Presidency (1885 - 1889)1889)Cleveland is Cleveland is

unbending supporter unbending supporter of of laissez-faire laissez-faire –Gov't out of free Gov't out of free marketmarket

Weak reformerWeak reformer

Fired Republicans & hired Fired Republicans & hired Democrats - 2/3 of Federal Democrats - 2/3 of Federal employeesemployees

Fought against pensions for Fought against pensions for dubious veteransdubious veterans

Fought to reduce tariffs & Fought to reduce tariffs & reduce gov't surplusreduce gov't surplus

Sought to reduce Sought to reduce monopoliesmonopolies

Bravo, Señor Bravo, Señor Clevelando!Clevelando!

Election of 1888Election of 1888 Democrats renominate Democrats renominate

Cleveland despite his Cleveland despite his insistence of making insistence of making Tariff an issueTariff an issue

Republicans nominate Republicans nominate Benjamin HarrisonBenjamin Harrison– Grandson of Grandson of "Tippacanoe" William "Tippacanoe" William Henry Harrison Henry Harrison

British Minister Sir Lionel British Minister Sir Lionel Sackville-West writes that a Sackville-West writes that a vote for Cleveland is a vote vote for Cleveland is a vote for England & free tradefor England & free trade

Republicans put fear of low Republicans put fear of low tariffs on Big Business - tariffs on Big Business - raise major war chestraise major war chest

Cleveland won popular vote Cleveland won popular vote but lost election 233-168but lost election 233-168

PresidenPresident t

BenjamiBenjamin n

Harrison Harrison

March 1889: Harrison, the March 1889: Harrison, the “White House Ice Chest,” “White House Ice Chest,” assumes the presidencyassumes the presidency

Republicans eagerly snapped Republicans eagerly snapped up Federal offices & prepared up Federal offices & prepared to pass legislation to maintain to pass legislation to maintain the high protective tariffsthe high protective tariffs

Makes “Half-breed” James Makes “Half-breed” James G. Blaine (the Plumed G. Blaine (the Plumed Knight) Secretary of State Knight) Secretary of State againagain

Young New Yorker Young New Yorker Theodore Roosevelt placed Theodore Roosevelt placed on the Civil Service on the Civil Service CommissionCommission

““Billion Dollar” Billion Dollar” CongressCongress

Republicans have only 3 Republicans have only 3 more votes than the 163 more votes than the 163 needed for a quorumneeded for a quorum

Democrats were able to Democrats were able to block a quorum by block a quorum by failing to answer roll callfailing to answer roll call

Tsar ReedTsar Reed New Republican Speaker of New Republican Speaker of

the House Thomas B. Reed the House Thomas B. Reed changed the House rules & changed the House rules & counted heads to establish a counted heads to establish a quorumquorum

11stst “Billion Dollar” Congress “Billion Dollar” Congress then began to pass legislationthen began to pass legislation– 11stst to pass over a billion dollars to pass over a billion dollars in peacetimein peacetime

““Billion Dollar” Billion Dollar” LegislationLegislation

Pension Act of 1890Pension Act of 1890Substantially Substantially increases the number increases the number eligible for Civil War eligible for Civil War pensionspensions

Continued the need Continued the need for tariffs by reducing for tariffs by reducing the federal surplusthe federal surplus

Sherman Anti-Trust Sherman Anti-Trust Act (1890)Act (1890) Forbade combinations in Forbade combinations in

restraint of traderestraint of trade Loopholes used by corporations Loopholes used by corporations

since could not be enforcedsince could not be enforced More new trusts created in first More new trusts created in first

yearyear Used by courts to curb labor Used by courts to curb labor

organizationsorganizations

Sherman Silver Sherman Silver Purchase Act (1890)Purchase Act (1890) Eastern "gold bugs" Eastern "gold bugs" agreed to double the agreed to double the amount of silver purchased amount of silver purchased in exchange for western in exchange for western support of increased tariffssupport of increased tariffs

Silver Silver certificates could be certificates could be redeemed for redeemed for silversilver or or goldgold

McKinley Tariff Bill McKinley Tariff Bill (1890)(1890) Raised tariff rates to highest Raised tariff rates to highest

peacetime level everpeacetime level ever– Averaged 48.4% on dutiable goodsAveraged 48.4% on dutiable goods

Raised tariffs on agriculture Raised tariffs on agriculture goods that did not need goods that did not need protectionprotection

Farmers were hurt by higher Farmers were hurt by higher prices for goodsprices for goods

Congressional Congressional Election of 1890Election of 1890 Discontent with “Bill” Discontent with “Bill”

McKinley & his tariff leads McKinley & his tariff leads to the election of a to the election of a Democratic Congress in Democratic Congress in 18901890

9 members of the militant 9 members of the militant Farmers Alliance were Farmers Alliance were elected to Congresselected to Congress

Election of 1892Election of 1892 Democrats run ex-Democrats run ex-president Grover president Grover Cleveland against Cleveland against Republican Republican incumbent incumbent Harrison & Harrison & Populist James B. Populist James B. WeaverWeaver

James B. Weaver James B. Weaver

Republicans call for Republicans call for continued high continued high tariffs which are tariffs which are again the major again the major issueissue

The People’s PartyThe People’s Party Populists Populists rooted in rooted in the the Granges, Granges, Farmers Farmers Alliances, Alliances, & Labor & Labor movementmovement

Price Indexes for Price Indexes for Consumer & Farm Consumer & Farm

Products: 1865-1913Products: 1865-1913

Price Indexes for Price Indexes for Consumer & Farm Consumer & Farm

Products: 1865-1913Products: 1865-1913

Campaigned on a Campaigned on a platform of "free silver," platform of "free silver," graduated income tax, graduated income tax, gov’t ownership of gov’t ownership of telephone, telegraph, & telephone, telegraph, & railroadsrailroads

Also called for direct Also called for direct election of Senators, a election of Senators, a single 4-year term of office single 4-year term of office for the President, & use of for the President, & use of the referendum & initiativethe referendum & initiative

Also backed labor’s Also backed labor’s demands for shorter hours demands for shorter hours & immigration restrictions& immigration restrictions

Homestead StrikeHomestead Strike Summer of 1892: wave of Summer of 1892: wave of labor strikes swept the labor strikes swept the countrycountry

At Carnegie’s Homestead At Carnegie’s Homestead Steel plant, 300 armed Steel plant, 300 armed Pinkerton detectives used Pinkerton detectives used to try & crush a striketo try & crush a strike

Homestead StrikeHomestead Strike

Steelworkers fought back & Steelworkers fought back & federal troops were eventually federal troops were eventually used to end the strikeused to end the strike

Homestead Strike showed Homestead Strike showed seriousness of labor unrest & seriousness of labor unrest & disproved that tariff protection disproved that tariff protection led to higher wagesled to higher wages

Lost Republican votesLost Republican votes

Jim Crow SouthJim Crow South Populists, led by Tom Watson of Populists, led by Tom Watson of

Georgia, appealed to southern Georgia, appealed to southern Blacks to abandon the Blacks to abandon the Republicans & vote for the Republicans & vote for the PopulistsPopulists

Southern “Bourbon” leaders Southern “Bourbon” leaders played on racial fears to woo played on racial fears to woo poor whites back to the poor whites back to the Democratic PartyDemocratic Party

Fear of Black political power led Fear of Black political power led to the final passage of Jim Crow to the final passage of Jim Crow voting restrictionsvoting restrictions

Southern Populists soon Southern Populists soon became increasingly racist in became increasingly racist in their rhetorictheir rhetoric

Populists one of the few third Populists one of the few third parties to win electoral votesparties to win electoral votes– Weaver got over 1 million popular Weaver got over 1 million popular & 22 electoral votes in 1892& 22 electoral votes in 1892

Election of 1892Election of 1892

Cleveland Cleveland Wins Wins AgainAgain

Grover Cleveland took office in Grover Cleveland took office in 1893 as the only president to 1893 as the only president to ever be reelected after being ever be reelected after being defeateddefeated

Cleveland comes back more Cleveland comes back more conservative & a little heavierconservative & a little heavier

The Panic of 1893The Panic of 1893Depression begins in Depression begins in 1893 that will last for 1893 that will last for about 4 yearsabout 4 years

It is the first major It is the first major depression of the depression of the modern industrial modern industrial ageage

Caused by overbuilding, Caused by overbuilding, over speculation, labor over speculation, labor disorders, & agricultural disorders, & agricultural depressiondepression

Silver issue led to poor Silver issue led to poor credit for UScredit for US

Banks failed, businesses Banks failed, businesses failed, thousands out of failed, thousands out of work work

Charities set up soup Charities set up soup kitchens for the kitchens for the thousands of hoboes thousands of hoboes living in the streetsliving in the streets

Federal government Federal government followed laissez-faire followed laissez-faire policy & did nothingpolicy & did nothing

Gold PanicGold PanicGold reserves fall Gold reserves fall below the $100 below the $100 million million

““Endless chain” had Endless chain” had gov’t paying more for gov’t paying more for silver purchases than silver purchases than it received in goldit received in gold

Cleveland calls a special Cleveland calls a special session of Congress seeking to session of Congress seeking to repeal the Silver Purchase Actrepeal the Silver Purchase Act

In the middle of the crisis, In the middle of the crisis, Cleveland has to secretly have Cleveland has to secretly have a tumor removed from his a tumor removed from his mouthmouth

Congressional Congressional OppositionOpposition William Jennings Bryan William Jennings Bryan

– Nebraska Democrat who led Nebraska Democrat who led opposition opposition

– Great oratory made him famous Great oratory made him famous throughout countrythroughout country

Cleveland able to use the power of Cleveland able to use the power of his office to get the law repealed, his office to get the law repealed, but alienated the silverites in the but alienated the silverites in the Democratic PartyDemocratic Party

1894: gold reserves 1894: gold reserves dropped to $41 million dropped to $41 million dollars & the country is in dollars & the country is in danger of going off the gold danger of going off the gold standardstandard

Cleveland is forced to sell Cleveland is forced to sell bonds to raise gold reservesbonds to raise gold reserves

The “endless chain” The “endless chain” redemption continued redemption continued to cause the treasury to cause the treasury reserves to dropreserves to drop

Depression deepenedDepression deepened

Wilson Gorman Tariff Wilson Gorman Tariff Act (1894) Act (1894)

Democrats passed a Democrats passed a new tariff that created new tariff that created a modest reduction in a modest reduction in tariffs & a 2% income tariffs & a 2% income tax on incomes over tax on incomes over $4,000$4,000

Bill ultimately watered down Bill ultimately watered down by amendment & passed by amendment & passed without the signature of an without the signature of an outraged Clevelandoutraged Cleveland

Supreme Court will declare the Supreme Court will declare the income tax unconstitutional in income tax unconstitutional in 1895 1895 – 1616thth Amendment will allow for an Amendment will allow for an income tax in 1913income tax in 1913

1894 Congressional 1894 Congressional ElectionElection

Republicans win the Republicans win the congressional congressional election of 1894 in a election of 1894 in a landslide & begin to landslide & begin to boast that they will boast that they will win the White House win the White House in ‘96in ‘96

Morgan Steps InMorgan Steps In 1895: deepening gold crisis 1895: deepening gold crisis led Cleveland to seek loans led Cleveland to seek loans from Wall Street bankersfrom Wall Street bankers

J.P. Morgan loans $65 J.P. Morgan loans $65 million to federal gov’t & million to federal gov’t & confidence is restoredconfidence is restored–Banks will earn $7 million in Banks will earn $7 million in interestinterest

Populists are enraged by the Populists are enraged by the defeat of income tax & defeat of income tax & Cleveland’s sellout to “Jupiter” Cleveland’s sellout to “Jupiter” MorganMorgan

Coin’s Financial SchoolCoin’s Financial School becomes the bible of free-becomes the bible of free-silveritessilverites

Silver becomes the issue of the Silver becomes the issue of the Populists in 1896Populists in 1896