Politics of the Gilded Age Mr. Owens. Essential Questions How did big business influence government economic policies including tariffs, currency, corporate.

Politics of the Gilded Age

Mr. Owens

Essential Questions

• How did big business influence government economic policies including tariffs, currency, corporate expansion, and promotion of laissez-faire, and how did this eventually lead to calls for reform?

• What inspired the creation of the People’s (Populist) Party and what was their agenda?

Political StalemateCauses of “Politics of Equilibrium”1. Conservative government: “Laissez-Faire” Social

Darwinism for both parties, weak presidents2. Divided government Democrats controlled 8 of

10 elections for House, 5 out of 6 presidents Republican

3. Party loyalty w/ well-defined voting blocs4. Party patronage: controlled by Party Bosses like

Roscoe Conkling (Stalwarts) & James Blaine (Halfbreeds)

5. Popular campaigns: beer halls, parades & brass bands near 80% voter turnout

Republicans: North, “waving the bloody shirt” support from business, middle class, WASPs, Blacks, tariffs, temperance/prohibitionDemocrats: Southern whites, in North urban political

machines (Tammany Hall), immigrants, non-Protestants, working class

Presidential Politics 1877-1885

• Rutherford B. Hayes (1876-1881) – ended Reconstruction attempted to end corruption – fired Chester Arthur

• James Garfield (1881) “Halfbreed” frustrated w/patronage, assassinated by Charles Guiteau in 1881

• Chester A. Arthur (1881-1885) Stalwart, surprise: signed Pendleton Act of 1881 =civil service reform through merit examinations

• Weak leadership in Congress – most prominent John Sherman (brother of William), Thomas “Czar” Reed bully & Speaker from Maine, James Blaine Sen. of Maine party boss pushed Republicans away from civil rights and toward business

Presidential Politics 1885-1893

• 1884 Election: Republican choice of Boss Blaine caused reform-minded “Mugwumps” to support NY reform Gov. Grover Cleveland, dirt election “Ma where’s my Pa?” & “Rum, Romanism, & Rebellion”

• Grover Cleveland’s 1st Term 1885-1889: used veto 414 times!, signed Interstate Commerce Act, Dawes Act, & reclaimed 81 million acres from railroads & ranchers

• Tariff Issue: Cleveland wanted to lower tariff caused business leaders to support Harrison in 1888

• Benjamin Harrison 1889-1893 (grandson of Tippecanoe) supported high tariffs

• Billion Dollar Congress: Republicans controlled presidency & both Houses 1889-1891: McKinley Tariff of 1890 (highest ever), Civil War pensions, Sherman Antitrust Act, Sherman Silver Purchase Act

• Cleveland again? Defeats Harrison in rematch in 1892 due to high prices & debt fears due to McKinley Tariff

Rise of the Populists• The Grange 1870s Oliver Hudson Kelley Granger

Laws regulated railroad rates & grain storage – weakened by Supreme Court in “The Wabash Case” in 1886

• Farmer’s Alliance 1880s ran candidates & controlled Western states by 1890s, speakers like Mary Elizabeth Lease “Raise less corn & more hell!”

• People’s Party “Populists” in 1892 Omaha Platform: – Political: Direct election of Senators, secret

ballot– Economic: “Bimetalism” - free silver, graduated

income tax, Gov. ownership of RRs, telephone & telegraph companies, 8-hour work day for government employees, “sub-treasuries”

• 1892 Election Populist James Weaver of Iowa won more than 1 million votes for president & 22 electoral votes but scared away white in South & industrial workers in NE

Panic of 1893 & “Money Question”• Panic of 1893: Stock market crashed & many railroad co.’s

went bankrupt &16,000 businesses collapsed unemployment 20%, 500 banks closed panic!

• Money Question: battle over money supply– Debtors, Farmers, & small-businesses wanted “easy” of “soft”

money campaigned for paper currency “greenbacks” and “free” silver

– Bankers, creditors, investors, large businesses wanted “sound” or “hard” currency – Gold Standard

• Greenback Party: opposed to Specie Resumption Act of 1875 elected 14 members of Congress in 1878

• Silver: “Crime of 1873” Congress stopped minting silver, Bland-Alison Act of 1878 resumed silver but limited to $2-4 million per month – Sherman Silver Purchase Act of 1890

• Due to Panic of 1893, Cleveland led repeal of Sherman Act gold reserves depleted (borrow $65 million from J.P. Morgan) call for “Free Silver!”

• Cleveland lost support: laissez-faire, gold standard & crush Pullman Strike

• “Coxey’s Army” 1894 Populist Jacob Coxey led thousands on march to Washington – arrested for trespassing

Election of 1896• Populists victories in 1894 midterms• Democrats divided between “gold” Democrats loyal

to Cleveland and pro-silver Dems – William Jennings Bryan of Nebraska

• “Cross of Gold” Speech at convention dark horse Democratic candidate at 36

• Populists’ dilemma? Endorse Bryan• Bryan campaigned on “free silver” at ratio of 16:1

“bimetalism”• Republicans: William McKinley business interests &

Gold Standard tried to blame Democrats for Depression

• Mark Hanna political operative raised millions to support McKinley

• Bryan gave 600 speeches and traveled 18,000 miles by train

• McKinley victory due to 1. $$$ 2. “Gold Bug” Democrats defection 3. Fears of industrial workers

• Klondike Gold Rush • Gold Standard Act of 1900

Significance of 18961. End of the stalemate and

stagnation of Gilded Age2. Era of Republican dominance

(7 of next 9 presidential elections and both Houses for 17 of next 20 sessions) as the party of business, industry and strong national government

3. Demise of Populists - but many goals lived on were adopted by Progressives & FDR

4. Urban dominance of America5. Beginning of modern politics -

media & $$$$