Politics of the Gilded Age vast fortunes urbanization rise of big business.

Politics of the Gilded Age

vast fortunes

urbanization

rise of big business

“Gilded Age”

Term coined by Mark Twain for the time period between 1877-1900

Referred to the superficial glitter of the new wealth

Era of “Forgettable”Presidents

Era of mostly show with little substance

None of the presidents served two consecutive terms

Politicians ignored problems arising from the growth of industry and cities

Two political parties avoided to taking a stand on controversial issues

Stalemate

Political ideology of the time

Campaign tactics

Party patronage

Limited Government

“do little” governmentLaissez faire capitalism

Social Darwinism

Federal courts narrowly interpreted the government’s power to regulate business

Limited impact of the few regulatory laws passed by Congress

Campaign Strategy

Closeness of electionsDemocrats won only 2 presidencies by electoral vote (4 by popular vote)

1889-1891 Republicans were in control of both houses and the presidency

The objective was to get out the vote not alienate voters

Campaigns

Characterized by big brass bands, flags, buttons, picnics, free beer, and speeches

80% of the eligible voters voted – higher than elections in the 20th or 21st century

Ideologies

RepublicansSupported an economic program of high protective tariffs for business

Democrats States’ rights and limited powers for the federal government

Party Patronage

Neither party had an agendaThis era was chiefly a game of gaining office, holding office, and providing government jobs to the party faithful

Republicans like Senator Roscoe Conkling and his supporters became known as the “Stalwarts”

This era is considered a low point in American politics

Presidential Politics

Administrations of Hayes, Garfield, and Arthur reflected political

stalemate and patronage problems of time period

Rutherford B. Hayes

“Your Fraudulency”

Most significant act – ending reconstruction

Attempted to reestablish a honest government

Temperance reformers – wife “Lemonade Lucy” cutoff liquor in the White House

James Garfield

First few weeks in office he was besieged by 100,000 republicans wanting government jobs

Assassinated by a deranged office seeker

Chester A. Arthur

Distanced himself from “Stalwarts”

Reformed civil serviceFederal employees could not be required to donate to political campaigns or be fired for political reasons

Approved the development of the modern navy

Money Issue

Expand money supply?Growing tension between the “haves” and the “have-nots”Bankers, creditors, investors, and established businesses stood firm – gold standardDebtors, Farmers, and start up businesses wanted more $$ in circulation

Borrow money at lower interest ratesPay off their loans easier with inflated dollars

Greenback Party

Supporters of paper money not backed by specie (gold or silver)

Goal – increase the money supplyPaper money was issued by the federal government in 1860 as an emergency measure for financing the Civil War – Northern farmers associated high prices rec’d during the war with prosperity

Tariff Issue

Farmers and Capitalists disagreed over tariff rates on foreign importsRepublican Congress enacted high tariff to protect American businessDemocrats argued the tariff raised the price of consumer goodsResult – Nations retaliated by placing taxes of their own on U.S. farm products

Grover Cleveland (1st Term)

Believed in limited government – JeffersonInterstate Commerce Act of 1887-

First attempt to regulate business

Dawes ActBenefit Native Americans

Retrieved 81 million acres of land from ranchers and railroads

Election of 1888

Big Issue – Tariff QuestionRepublicans- Benjamin Harrison- high tariff- played on the fears of people that a low tariff would wreck business prosperity- rallied workers and big business

Democrats- Grover Cleveland – low tariff

Close election – Cleveland won popular vote, but Harrison swept the North

Billion Dollar Congress

McKinley Tariff of 1890- raised the tax on foreign products – 48%

Increased monthly pension to Civil War vets

Sherman Antitrust Act – outlawing combinations in restraint of trade

Sherman Silver Purchase Act of 1890-increased the coinage of silver in small amounts – pacify farmers

Rise of the PopulistsAlliance movement provided the foundation of a new political party – Populists or People’s PartyPlatform

Direct election of SenatorsEnacting state laws by voters – through referendums placed on ballotsUnlimited coinage of silver to increase money supplyGraduated income taxPublic ownership of RR’s by governmentTelephone and telegraph owned and operated by governmentLoans and federal warehouses for farmersEight hour work day for industrial workers

Election of 1892

Rematch between Harrison and Cleveland

Cleveland won mainly because of the high tax rate of McKinley Tariff – only president to serve non-consecutive terms

Harrison

Panic of 1893

Stock Market crashed as a result of over speculation

Dozens of RR’s went bankrupt

Farm foreclosures reached new highs

Unemployment reached 20%

Gold Reserve and Tariff

Decline in silver prices encouraged investors to trade silver dollars for gold dollars

Cleveland repealed Silver Act of 1890

President turned to J.P. Morgan to borrow $65 million in gold to support the gold standard

Jobless on the March

As the depression worsened – conservatives feared class war between capital and labor

Coxey’s Army – a march to Washington in 1894 by thousands of unemployed

The “army” demanded federal government spend $500 million on public works to create jobs

Coxey and other protest leaders were

arrested for trespassing and the dejected

“army” left for home