Political Paralysis in the Gilded
Age
1869-1896
A. Best and worst of American civilization---1870 to 1900
• Major events
• Industrial expansion, inventors and inventions
• Settlement of the West
• Railroad = symbol of growth = distribution system
• Rise of a labor unions (rise of the factory worker)
• Rise of immigration & class conflict
• Urbanization (from farms to cities)
• Political parties took no clear cut stand on issues
• Captains of industry influenced political leaders
• protect a laissez-faire system and capitalism..
B. Examples of Corruption & “the Forgettable Presidents”
1. Ulysses S. Grant (1868-1876)–Presidential scandals
2. Rutherford B. Hayes (1877-1881)- Ends
Reconstruction!
3. James A. Garfied--1881---Republican
•Assassinated by an upset spoils man--Charles Guiteau
4. Chester A. Arthur---1881 to 1885---Republicans
•Pendleton Civil Service Act--reformed the spoils system
5. Grover Cleveland--1885 to 1889 and 1893 to 1897
•Only Democrat---Serves two terms but not consecutive
•Conflicts between business and labor.
•Formation of Labor Unions
•Haymarket Riot
•Pullman Strike
•Interstate Commerce Act--1887
•Tariff of 1894
6. Benjamin Harrison--1889 to 1893---Republican
•Four major laws were signed during his presidency:
•Sherman Anti-Trust Act
•Sherman Silver Purchase Act
•McKinley Tariff Act
•Dependent Pension Act
“The Gilded Age”- book by Mark Twain; echoed the
disillusionment with the time.
1861 = 3 millionaires and by 1900 there are 3,800
By 1900, 90% of wealth, controlled by 10% of
population.
Gilded Age Politics
Every presidential election was close.
• the House majority party changed hands 6 times in
11 sessions 1869-1891.
• few differences between the Democrats &
Republicans (agreed on most economic issues).
• Evenly organized= Elections competitive & tight;
turnout = 80%
• Major differences= (ethnic & cultural) & religious
A)Republicans- stressed personal morality (Puritan
influence), tend to be Protestant, from the mid-west
& small-town NE, supported by Freemen & GAR
* Government should regulate moral & economic
affairs.
B) Democrats- mainly Catholic or Lutheran, less stern
view of human weakness, supported strongly in the
South & northern industrial cities (ruled by Political
Machines)
•
**The Spoils System
(Patronage)



The life blood of both parties.
Became a contentious issue in the
Republican Party in the 1870’s &
1880’s.
Stalwarts- Republicans who favored
the Spoils System (led by Roscoe
Conkling of NY).
Half-Breeds- Republicans who
favored reforming the Spoils System.
(James G. Blaine of Maine).
America After the Civil War
1870- census- 39 million people; US is 3rd largest nation behind
Russia & France.
•The Civil War & aftermath led to waste, extravagance, speculation (stocks, land, RR) &
Graft (corruption).
•Election of 1868– “Waving the Bloody Shirt”
Republicans: nominated Ulysses S. Grant
Platform- continue Congressional (Military) Reconstruction
• “Let us have peace”- Grant
•Hometown- Galena, Ohio
Democrats: met at convention & denounced Military
Reconstruction; party was split over monetary policy.
•Wealthy eastern delegates= demanded federal war bonds to be
redeemed for gold (most bonds had been purchased in greenbacks
which had been depreciated).
• Poor Mid-western delegates= The Ohio Idea (redemption of war
bonds for greenbacks)= more money in circulation= low interest
rates .
•Nominated former NY Governor Horatio Seymour who rejected the
Ohio Idea (killed Dems. chance to win).
The 1868 Campaign
• Republicans- “waved the bloody shirt”; “Vote as You
shot”
•Grant won (214 to 80 electoral)- 300,000 more
popular votes
• most whites supported Seymour
• ballots in 3 unreconstructed states (Miss., Texas,
Virginia) not counted.
•Grant received 500,000 votes from former slaves=
gave Grant the advantage & victory!
Electoral Map 1868
“The Era of Good Stealing” –Corruption in the Gilded
Age
Most Business people & government officials conducted
themselves with decency but…
1. Jim Fiske & Jay Gould- scheme to corner the gold market
(1869)
• Conspirators worked on Grant (get Treasury to stop issuing
gold) through his brother-in-law (who got $25,000)
• “Black Friday” (Sept. 1869) Fiske & Gould bid the price of gold
up= US Treasury had to release gold
• Congressional investigation= Grant did nothing wrong—just
acted stupidly & indiscreetly.
2. *Tammany Hall (**William “Boss” Tweed)
• Headed a Political Machine in NY
• Engaged in bribery, graft, fraud elections- swindled $200
million from the tax payers of NY.
• NY Times- 1871; published evidence against Tweed
• Thomas Nast- NY Times political cartoonist; attacked Tweed.
• District Attorney- Samuel Tilden prosecuted Tweed; Tweed
died in prison (1873).
The Emergence of
Political Machines
*Political Machine
• Organized group that
controls a city’s political
party
• Give services to voters,
businesses for political,
financial support
• After Civil War, machines
gain control of major cities
• Machine organization:
precinct captains, ward
bosses, city boss
The Role of the Political Boss
•May serve as mayor he:
•controls city jobs, business licenses
•influences courts, municipal agencies
•arranges building projects, community
services
•Bosses paid by businesses, get voters’
loyalty, extend influence
Immigrants and the Machine
•Many captains, bosses 1st or 2nd generation Americans
•Machines help immigrants with naturalization, jobs, housing
Election Fraud and Graft
•Machines use electoral fraud to win elections
•Graft—illegal use of political influence for personal gain
•Machines take kickbacks, bribes to allow legal, illegal activities
Election of 1872
Republicans Re-nominated U.S. Grant (Henry Wilson
VP)
Liberal Republicans & Democrats nominate Horace
Greeley (Greeley Finally ran as a Dem.)
• “Throw the rascals out”—Sick of corruption & scandal!!
•Liberal Republicans –oppose Grant/ corruption
•Greeley had long criticized Democrats= hurt his chance
of election.
Equal Rights Party – nominated Victoria Woodhull pres.
And Frederick Douglas for VP
•Grant Wins
1872- General Amnesty Act- 500 former confederate
leaders pardoned.
•Congress-reduced high Civil War tariffs, passed mild
civil service reforms (impact of the Liberal Republicans)
Election of 1872
*Credit Mobilier
Scandal (1872)
•1860’s Congress authorized the Union Pacific &
Central Pacific to oversee the building of
Transcontinental RR.
•Began in 1864- Union Pacific (UP) investors
bought a construction company (Credit Mobilier)
•Instead of hiring others to construct the RR, UP
investors would pay themselves.
•Credit Mobilier charged the UP double the cost of the build- going into the
pockets of the UP stockholders. (348% dividend)
•News paper & Congressional Investigations= 2
Congressmen censured & stories that the VP had taken
payments
*The Panic of 1873
Causes: over speculation (too many risky loans) &
overproduction (too many miles of track, mines,
factories, grain fields).
• 15,000 bankruptcies
• Banks collapse
• 2 groups Hardest hitA. African-Americans (Freedmen’s Savings & Trust went
bankrupt= $7 million lost from black depositors.
B. Debtors= increase calls for inflationary policies (Loose
Money Policy).
• Debtors wanted more Greenbacks to be issued (1868US Treasury had withdrawn $100 million in
Greenbacks).
• Creditors (money lenders-bankers) wanted tight
money policy (more Greenbacks withdrawn; or gold
based money)= convinced Grant to veto a bill to print
more paper money.
**The Currency Issue
Creditors-people who loan
or have money to loan.
 Favor “hard money”
 Deflation
 Gold standard
Why?
 Less $ in circulation=makes
money worth more
 Credit tighter/fewer
loans/less competition
 More opportunities to
consolidate/monopolize/
acquire goods
Debtors- people who owe
or borrow; support
inflationary monetary
policy.
 Favor “soft money” or
folding money
 Silver or “greenbacks”
Why?
 More money in circulation
 Easier to pay loans/bills
 Easier to get credit
 Expanded jobs
 More small businesses
 Less monopolies
The Monetary debate (Deflation v. Inflation)
Debtors- began to demand coinage of silver (soft or loose money
policy!)
US Treasury claimed that one ounce of silver was worth= 1/16 of an
ounce of gold (silver actually sold for more in open market).
• Silver miners stopped offering silver to federal mints as
punishment.
•1873- Congress dropped coinage of silver=“Crime of
73”- Congress formally stopped coinage of silver dollars.
• Westerners (miners) joined debtors= attacked Crime of 73’.
“Contraction Policy” -Republicans
•1874- Grant vetoed a bill to print more paper money.
•1875 Resumption Act- US gov’t pledged to withdraw more paper
money from circulation & redeem paper money for gold at face
value.
•Debtors began to demand coinage of silver & paper money
Value DECREASED! ($19.42 TO $19.37)
Political Backlash over Hard Money Policy
• Democrats take the House 1874 & 1878 due to backlash against
gov’t monetary policy.
The Greenback Labor Party
(1874-75)



Created because of the tight monetary
policies of the Republicans (contraction)
(deflation)
Polled over a million votes
Elected 14 members of Congress
“Opportunities naturally exist for the
energies of all, but man's selfishness
towards man has discouraged industry,
by sanctioning for ages, through law and
usage, the excessive value of money and
interest, thereby causing deprivation
and suffering to the many for the benefit
of the few.”-Work for the Worker:
Wealth to the Nation (Dupuy)
*Whiskey Ring (1874-75)
•A group of President Grant’s officials
imported whiskey
•Used their offices to avoid paying taxes
•Cheated US treasury of millions.
•Grant’s private secretary involved (Grant
wrote a letter to exonerate)
Salary Grab
•Congress gave itself a raise, $5,000 to $7,500 annually.
•Congressmen received a retroactive check for $5,000, plus their
raise……Became a political issue….Later repealed.
Election 1876
HOR-PASSED RESOLUTION THAT PREVENTED GRANT
FROM RUNNING FOR A THIRD TERM.
•Republicans nominated Ohioan Rutherford B. Hayes
(185 electoral votes– 4.0 million pop. Vote)
•Democrats nominated Samuel Tilden (184 electoral
votes—4.3 million pop. Votes).
**Ohio was a swing state –important to elections of
the late 19th century.
Rutherford B. Hayes
Samuel Tilden
1876 Election
•Tilden did not
receive enough
electoral votes.
*
•Special
Commission
gives votes to
Hayes.
•Hayes wins the
election
*Disputed
Electoral votes
164
369 total electoral votes, need 185 to win.
•Democrats
refuse to
recognize Hayes
as President
The Election of 1876 & *The Compromise of
1877
185 electoral votes needed to clinch the presidency
(Tilden 184)
4 states (3 in the South still under reconstruction) worth
20 electoral votes remained.
• Both parties sent “visiting statesmen” to the disputed
states of Louisiana, SC, & Florida. (all had submitted two
sets of returns)
• Feb. 1877- A commission of House, Senate, & Supreme
Court members met= Democrats agreed to allow Hayes
the victory IF: he removed US troops from the two states
where they remained (SC & Louisiana).
• Republicans promised Democrats patronage & support a
bill for southern transcontinental RR.
** RECONSTRUCTION ENDS--THE POLITICAL
COMPROMISE SACRIFICED THE COMMITMENT TO BLACK
EQUALITY IN THE South .
The Era of Jim Crow
As the last of the federal troops left the South,
Democratic “Redeemer” governments began to take
away the advancements that African-Americans had
made since the end of the war.
• POLL TAXES
• LITERACY TESTS
• Grandfather Clause
1. Sharecropping system emerges- blacks & poor whites
trapped in debt peonage through crop liens.
2. 1890’s Segregation laws **(Jim Crow)3. Lynching –record numbers of blacks lynched in the
1890’s mostly for asserting that they were equals to
whites.
Important Civil Rights Action



The *Civil Rights Act of 1875- guaranteed equal
accommodations in public places; prohibited
discrimination in jury selection- weak & not
enforced.
*Civil Rights Cases (1883)- Supreme Court ruled
much of Civil Rights Act of 1875 unconstitutional;
declared that 14th Amendment prohibited only
government violations of civil rights, not violations
by individuals.
*Plessy v. Ferguson (1896)- Supreme Court
ruled that states could have “separate but equal”
facilities for blacks & whites… (does not violate 14th
Amendment- not discriminatory).
Class Conflict in the Gilded Age
*The Great Railroad Strike (1877) 1st major labor strike in US History.

1000’s of railroad workers involved
 Pres. Hayes sent federal troops to stop the strike (100 people dead)
 Inspired other workers to strike from Baltimore to St. Louis
 Failure showed weakness of labor movement
Factors that contributed to labor disunity







Racial & ethnic divisions among workers
Asian Immigrants vs. California Irish
1850’s-1880’s Asians came to work in gold mines & Railroad
Asians took menial jobs, faced discrimination
“Kearneyites”- resented cheap Asian labor.
1882- *The Chinese Exclusion Act- prohibited immigration from
China until 1943; 1st law to limit immigration!
1898- US v. Wong Kim Ark- Supreme Court ruled that 14th Amendment
granted citizenship to all born in US- “birthright citizenship”
President
Rutherford Hayes
Elected in 1877
 Reformed the civil service,
appointing qualified political
independents instead of
giving positions to
supporters.
 No Congressional support or
from the Republican Party.
 Hayes did not seek a second
term.

President James A.
Garfield

1880 election, Republicans
were split into 3 factions.
 Stalwarts defended the spoils
system—Senator Roscoe
Conkling
 Half-Breeds reform but still
supported it– Senator James
Blaine
 Independents opposed the
spoils system.
Garfield wanted reforms.
His running-mate was
Chester Arthur, a Stalwart.

The Election of 1880
Republican Convention: Roscoe Conkling
(Stalwart) tried to get Grant nominated to a third term
unsuccessfully due to James G. Blaine (Half-Breed
Leader)
Republicans: nominated “dark horse” James A.
Garfield (Half-Breed) (from Ohio) & Chester Arthur
(“Stalwart”) .
“waved the bloody shirt”
Democrats: nominated Civil War hero Winfield Scott
Hancock.
Garfield won the close election!
Problems:
EAGER office seekers swamped the White House.
1880 Presidential Election
1881: Garfield Assassinated!
July 2, 1881 James G. Blaine & President
Garfield were walking through a train statio
In Washington, DC.
•Garfield was shot by deranged Charles
Guiteau .
•Guiteau was captured immediately &
hanged 9 months later.
•Garfield lingered for 2 ½ months.
Charles Guiteau, a
“stalwart”:
I Am a Stalwart, and Arthur is
President now!
First Metal Detectorinvented
By Alexander Graham Bell
to locate the bullet in
Garfield.
Several attempts were
unsuccessful in locating the
bullet.
•Assassinated by an
upset Spoils man.
•Led to VP Chester
Arthur (Stalwart)
becoming president
•Unlike stalwarts;
Arthur supported a
change to the
corrupt spoils
system.
•Arthur signed into the law the *Pendleton Act also called
the Civil Service Act.
*Pendleton Act (1883)
 Civil Service Act.
** required potential government
workers take an exam to
determine qualifications.
 1883  14,000 out of
117,000 federal govt.
jobs became civil
service exam positions.
1900  100,000 out
200,000 civil service
federal govt. jobs.
of
* Significance- End of the
Spoils System in US & led
politicians to Look elsewhere for
money- big corporations!!
Arthur Reforms: the Civil Service
The 1884 Election
Republican- James G. Blaine's nomination split the
Republican Party (“Mulligan Letters”- series of
letters that indicated that Blaine had used his
position as Speaker of House to help a southern
RR co. earn profits--“burn this letter”.)
 Republicans who could not support Blaine bolted
to Democrats (“Mugwumps”- Algonquin term)
 Democrats- nominated Grover Cleveland
(reformer); mayor (Buff.) governor (NY); “Grover
the Good”
 Mudslinging – Cleveland was accused of fathering
illegitimate child
 * “waving the bloody shirt” did not materializeneither candidate served in the war
Ma…Ma… Where’s my Pa? Gone to Washington ha.. Ha.. Ha.
•Pivotal election came
down to NY
•Blaine’s Blunder- failed
to Repudiate a
Republican clergymen
who referred to the
Democrats as the party
of “Rum, Romanism, and
Rebellion” (RRR)- cost
Blaine Irish votes in NY
•Cleveland won NY by
@1000 votes
•Cleveland -1st
Democratic President
since Buchanan (1856)
•Could the Democrats
(party of Disunion) be
trusted???
Cleveland’s Presidency
Supporter of “Laissez-Faire” government like most politicians of the
day…

1887- vetoed a bill to provide seeds to Texas farmers in drought stricken
areas– “Though the people support the government, the government
should not support the people”

Named Two former Confederates to his cabinet (helped ease pain of the
war)

“Mugwumps” who helped elect him wanted Spoils system reform &
Democrats wanted strong use of the Spoils System..
2. Patronage- fired 2/3 of 120,000 (40,000 postal employees) federal
government workers to make room for Democrats.

The former veterans of the Union Army (Grand Army of the Republic or
GAR) formed a HUGE voting Block= great influence= routinely got
Congress to give them money or pensions!

Sometimes pensions went to deserters, people who never served etc.
3. Vetoed many Veteran (GAR) pension bills
4. Lowered the Tariff– to lower prices for consumers and give less protection
to monopolies LEADS TO A REAL ISSUE THAT WOULD SEPARATE
REPUBLICANS & DEMOCRATS THROUGH THE REST OF 1800’S.
1.
Grover Cleveland, Tariffs & the Economy



1860- 1881- tariffs had been kept to high levels= annual
surplus of $145 million
1887- Cleveland appealed to Congress to lower tariffs==
provided a real issue that divided the parties for the 1st time in
years!
The Congress could spend the money on “pork barrel” projects
or lower the tariff (big business opposed).
Election of 1888
Democrats- re-nominated Cleveland
Republicans- nominated Benjamin Harrison (grandson of William
Henry Harrison)
 Primary issue- the Tariff (Republicans raised $3 million in
political campaign funds from corporations- unintended
consequence of Pendleton Act)- Mark Hannah (Republican)
raised $3 million to help the Republicans.
 Rep. Harrison edged out Dem. Cleveland
The Billion Dollar Congress
Republicans held only 3 more votes than Dem. in the
House for a quorum = Democrats could threaten to delay
& hold up votes.
 Speaker of the House (Republican- Thomas Reed)- “Czar
Reed” used his power to thwart the Democrats
 1st Congress in history to appropriate $1 Billion
 Spent money on: pensions for war vets, increased
purchases of silver, RAISED Tariffs too
**McKinley Tariff (1890)- raised tariffs to highest
peacetime level ever (48.4% on dutiable goods)
• Tariff Hurt US farmers- buy expensive US industries & sold
products overseas (competitive & unprotected)
• Congressional elections 1890- Rural voters gave
Democrats a majority in the House- ANGRY VOTERS
• Farmer’s Alliance –elects 9 members to Congress.

**The Populist Movement
1892- People’s Party (Populists) formed; Movement by
farmers to have their needs/concerns addressed.
 Hoped to recruit Industrial workers to the party too!
**The Omaha Platform:
 free unlimited coinage of silver at rate of rate of 16:1 (1
oz. of gold) ratio
 Graduated income tax
 Government ownership of RR, telegraph, & phone
 Direct election of Senators
 One term limit for president
 Adoption of initiative & referendum
 Shorter workday
 Immigration restriction
 The “Australian Ballot” secret ballot
* NOMINATED Gen. James Weaver for Pres (Green backer)

**The Homestead Strike (1892)






Part of a series of nationwide strikes in 1892
Place: Andrew Carnegie’s Homestead Steel
Plant (NEAR Pittsburgh PA)
Company used 300 armed, hired detectives
(Pinkerton’s) to crush the strike (10 dead;60
wounded)
US troops eventually joined in- strike & union
were broken.
Couer d’ Alene Strike (1892)- Silver miners in
Idaho went on strike; Federal troops called out
against them= strikers attacked
** gave hope to the Populists that miners &
industrial workers would join them.
1892 Election




Grover Cleveland (Democrat)
Benjamin Harrison (Republican)
James B. Weaver (Populist Party-People’s
Party)—1st ever Presidential candidate for the
Populist or People’s Party!!
Election demonstrated the DISCONTENT in the
country.
Election of 1892
Populist Party- tallied over a
million Popular votes & 22
electoral votes
•Industrial workers (Eastern)
never rallied to Populist cause
• the South did not rally with
Populists (race)= white voters
Turned more to poll taxes &
literacy test
* Except in NC – Fusion Party
controlled many gov’ts &
cities; leads to Wilmington
Riots- supposedly only Coup
de tet in US history
• 1896- Populist lapsed into
racism. Watson quote p. 526
Failure of the Populist Party in 1892
Why did the Populist Party fail in 1892?
Industrial
workers in the Northeast did not join with the Populists
Votes came from only 6 Midwestern & western states.
Race was a divisive factor among white & black farmers in the South.
The Colored Farmers Alliance- organized by black farmers; shared similar
complaints as white farmers.
Populist leaders like Tom Watson understood that black farmers could give the
Populist Movement a boost.
“There is no reason why the black man should not understand that the law that
hurts me, as a farmer, hurts him, as a farmer”—Tom Watson
Conservative Southern Bourbon elites were alarmed at the prospect of
blacks & whites coming together= used racism to separate them.
The idea of potential black political strength led to the end of suffrage
that remained in the south. (literacy tests/ poll taxes)
The Grandfather Clause- exempted blacks from poll taxes & literacy tests
if anyone could prove their ancestor had voted in 1860 (Before the Civil
War began!!)
Tom Watson & Populist Party sink into RACISTS ATTITUDES= no coalition
Cleveland’s 2nd Term
Only President reelected after a defeat
Depression of 1893
 lasted 4 years; the most devastating in the 19th century
 Causes: overbuilding, over speculation, labor disputes,
agricultural depression- free silver
 8,000 US businesses closed in 6 months
 Soup kitchens fed unemployed, hobos wandered looking for
work
 Government had a deficit- Cleveland supported a bill to do
away with purchase of silver- alienated silverite Democrats
like (Dem. From Nebraska--William J. Bryan)
 US treasury dropped to $41 million ($100 was safe)
 Cleveland turned to J.P. Morgan & US bankers ($65 million in
gold loan)- commission of $7 million
 1894- Wilson-Gorman Tariff- did not lower tariffs;
included an income tax on income over $4,000 (1895supreme court struck income tax down)

1896 Congressional Elections



Republicans regain control of the House
Stage is set for class conflict in 1896
(debtors, farmers, industrial worker v. rich
for control of government.
Wizard of Oz allegory