(1865 – 1900)
Gilded – covered in a thin layer of gold
Trends of this time period:
• Political Corruption
• Political Scandals
• Economic Depressions (Panic of 1873 & Panic of 1893)
• Labor Strikes (Haymarket Affair, Homestead Strike, & Pullman Strike)
• Big profits for business owners, while factory workers and farmers struggle
The Lollypop “Guild”
The Wizard of OZ
Book – 1900
Movie – 1905 & 1939
“Disputed” Election of 1876
President – Rutherford Hayes (R)
Vice President – William Wheeler
The U.S. Government’s Design
“Separation of Powers”
Electoral Commission of 1876
Why Formed: There were 20 “disputed” electoral votes from 4 states (Oregon,
South Carolina, Florida, and Louisiana).
Original Electoral Vote Count: Rep. – Hayes (165) Dem. – Tilden (184)
* Difference in votes – 19
Purpose: Determine which candidate gets the 20 disputed electoral votes.
Electoral Commission Members: 15
• Job Breakdown – 5 Senators, 5 House Reps., & 5 Supreme Courts Justices
• Pol. Party Allegiance Breakdown – 7 Republicans, 7 Democrats, & 1 Independent
1 “Independent” – Supreme Court Justice David Davis:
• Ran for the Senate and got elected
• He was removed from the electoral commission and another member of the Supreme
Court was put on the commission in his place.
• Only members left on the Supreme Court to fill his position were republicans.
• New Pol. Party Allegiance Breakdown – 8 Republicans & 7 Democrats
Electoral Commission’s Decision – Hayes gets the 20 disputed votes
Final Electoral Vote Count: Rep. – Hayes (185) Dem. – Tilden (184)
* Difference in votes – 1
Rutherford B. Hayes
Nickname: “Rutherfraud” B. Hayes
What compromise did he have to agree with in order for him to
get the disputed votes from the Electoral Commission?
Compromise of 1877
Purpose: End the “Reconstruction” system in the south that took place after the
Civil War and called for a Union / Federal military occupation of the former states
that were in rebellion during the Civil War.
Terms:
1. The removal of all Federal Union troops from the former Confederate states that
were in rebellion during the Civil War.
* Troops only remained in LA, SC, and FL., but the compromise finalized the
process.
2. Hayes would appoint one Southern Democrat to his cabinet.
* David Key of TN. was appointed Postmaster General
3. The construction of another transcontinental railroad would be constructed
through the south.
4. More laws to help “industrialize” the South.
Special Note: Terms 1 & 2 were done, but 3 & 4 were not.
The “Great” Migration
(1865 – 1900)
Red – states leaving from
Blue – states going to
The “Great” Migration
(1865 – 1900)
“People on the move”
Why were they leaving the south?
#1 – Better Job Opportunities
# 2 – Mistreatment
The Great Migration
(1865 – 1970)
Southern Lynchings (1865 – 1970)
The “Spoils” System
Developed By: President Andrew Jackson
What: Appointing people to a government job not for their qualifications, but for their
loyalty and monetary contributions to you and your campaign.
Problem: Unqualified people with no political background are holding government
jobs and are helping run the country.
Result: Corruption and scandal, which is one characteristic of the Gilded Age.
Hayes’ Stance: He wanted to end the spoils system.
Hayes’ Success: He had no success ending the spoils system.
Republican Party Division
Half-Breeds v. Stalwarts
Stalwarts – Republican group that wanted to see the spoils system remain in place.
Half-Breeds – Republican group that wanted to see the spoils system ended.
Chester Arthur
(Stalwart)
Roscoe Conkling
(Stalwart)
James Blaine
(Half-Breed)
Importance: Because these 2 groups within his political party could not agree on this
issue, nothing was done with the spoils system by President Hayes during his presidency.
James Garfield
Republican parties choice for the election of 1880.
Stalwart or Half-Breed Republican?
Election of 1880
President – James Garfield (R)
Vice President – Chester Arthur
James Garfield Assassination
July 2, 1881
Where: Washington railroad station.
Wound: Two gunshots in the lower back.
Medical Care: Doctors checked the wounds
without washing their hands or sterilizing
their equipment which caused his wounds to
get infected. These infections and not the
bullets themselves are what killed him.
Agony: He suffered in pain for 11 weeks
before he died.
Died: September 19, 1881
Charles Guiteau
Garfield’s Assassin
Why: He was angry that he was not given
a job by Garfield under the spoils system.
“I am Stalwart and Arthur is now
President.”
- Charles Guiteau after he shot Garfield
Insanity?: This case was the first case in
U.S. history in which an insanity plea was
considered. He randomly recited poetry
and asked for advice from members of the
courtroom crowd.
Fate: Put on trial and sentenced to death
by hanging.
Charles Guiteau
(Stalwart)
Execution Date: June 30, 1882
New President
Chester Arthur
(Stalwart)
* Garfield’s Vice President
Pendelton Civil Service Act
(1883)
Goal – Help end the spoils system
Terms:
• 15 % of all government jobs are classified
• Classified – You must pass a thorough examination before
being appointed to any government office
Special Note – Chester Arthur chose not to represent the Republican Party in the
presidential election of 1884. James Blaine was selected to represent the Republican
Party.
Election of 1884
President – Grover Cleveland (D)
Vice President – Thomas Hendricks
Interstate Commerce Act
(1887)
Gov. Agency Created By This Act: Interstate Commerce
Commission (ICC).
ICC’s Purpose: To regulate railroad shipping rates throughout
the country.
* Shipping rebates were outlawed
ICC’s Targets: Rockefeller and Carnegie
ICC’s Success: 16 cases were brought before the U.S. Supreme
Court by the ICC and they lost 15.
Who were the makers of this law trying to help?
Reasons:
1. Because farmers were not frequent customers. Railroad companies were less
willing to give them deals on shipping rates.
2. Shipping rates were not published by railroad companies, therefore farmers
had no way of knowing what shipping rate they were getting in comparison to
others.
Puck Magazine Illustration (1896)
Wizard of Oz Book Illustration (1900)
Election of 1888
President – Benjamin Harrison (R)
Vice President – Levi Morton
Sherman Anti-Trust Act
(1890)
Terms: Monopolies are outlawed!
John D. Rockefeller
Standard Oil
Andrew Carnegie
Carnegie Steel
Problem with the Sherman Anti-Trust Act: Too vague
Clayton Anti-Trust Act (1914)
Tariff?
Imports – products coming into the country.
Export – products leaving the country.
Tariff – a tax on an imported good.
Price – Tariff = Higher Price
Why does a tariff raise the price of a product?
McKinley Tariff Bill
(1890)
Terms: It placed a higher tariff (48%) on all imported goods that are also produced in
the U.S.
Imports that were not subject to this tariff: Not made in the U.S.
Tea
Coffee
Spices
Opium
Sugar
Goals:
1. Make U.S. made goods cheaper in comparison to foreign goods.
2. Stimulate the U.S. economy because money is being spent in the country.
What type of people were severely hurt by the passage of this law?
Why were farmers hurt by the
McKinley Tariff Bill (1890)?
What did other countries do with their tariff when the U.S.
raised their tariff?
How does this hurt American farmers?
U.S. farmers shipped their crops worldwide and now no one is
wanting to buy the U.S. crops because they are more expensive
due to a raised tariff.
Farmers lost a lot of customers.
Why was it passed by state representatives in Congress from
states with a high population of farmers (western and
southern states)?:
Northern states agreed to pass the Sherman Silver Purchase Act.
Paper Money
(“Greenbacks” or Dollars)
Why is one more valuable than the other?
What determines the value of
American paper money?
GDP
GNP
Gross Domestic Product (GDP)
Definition – The total (gross) value of all goods and services produced
within a country (domestic) in given time period (usually 1 year)
“Measuring Stick” – It measures how good a countries economy is doing
inside of its own country.
GDP
Gross National Product (GNP)
Definition – The total (gross) value of all goods and services produced by
a country, or businesses affiliated with that country, “world wide” in a given
time period (usually 1 year)
“Measuring Stick” – It measures how good a countries economy is doing
“world wide”. How much economic activity that country is responsible for
throughout the world.
GNP
Which one determines the value
of American money?
What used to determine the
value of American money?
The more gold a country had, the more valuable it’s paper money was.
Coinage Act of 1873
“Crime of 1873”
Terms: Gold is the only metal that can be turned into coins in U.S. federal
coining mints.
Why a crime?
Prior to law: Anyone could bring gold or silver into any federal mint to have
the gold or silver turned into coins for a fee. They could take the coins and
leave or they could choose to take a piece of paper (gold or silver certificate)
which is based on the value of the metal they brought in to be coined.
• 1873 Federal Mint Silver Exchange Price: $1.29 per oz.
• Currency: These pieces of paper (certificates) could be used as money
to buy things.
• Exchange: You could also exchange these certificates for gold and silver.
Unofficial Law – This law unofficially put the U.S. on the “Gold Standard”.
Meaning that American paper money is backed by gold only. No more silver.
“Follow the yellow brick road.”
Who thought that this was a crime?
People of the west
(farmers and miners)
Why?
There is now no reason to mine anything other than gold which
had become very scarce. The metal that was most abundant
out west was silver.
Coinage Act of 1873
“Crime of 1873”
Terms: Gold is the only metal that can be turned into coins in U.S. federal
coining mints.
Why a crime?
Prior to law: Anyone could bring gold or silver into any federal mint to have
the gold or silver turned into coins for a fee. They could take the coins and
leave or they could choose to take a piece of paper (gold or silver certificate)
which is based on the value of the metal they brought in to be coined.
• 1873 Federal Mint Silver Exchange Price: $1.29 per oz.
• Currency: These pieces of paper (certificates) could be used as money
to buy things.
• Exchange: You could also exchange these certificates for gold and silver.
Unofficial Law – This law unofficially put the U.S. on the “Gold Standard”.
Meaning that American paper money is backed by gold only. No more silver.
U.S. Gold Shortage
(1873 – 1900)
Panic of 1873 – World Wide Economic Depression (1873 – 1877)
Domestic (U.S.) – People in the U.S. kept their gold and began
exchanging their gold certificates for gold seeing that the gold
certificates themselves had no value and the gold did. This lead
to less gold being circulated in the U.S. economy which caused
the value of American paper money to decrease.
Foreign (Other Countries) – Gold was only accepted by other
countries in the event of any sale because the value of American
paper money was declining. This lead to more gold leaving the
U.S. economy and causing the value of American paper money to
drop even further.
BAD! – This made the Panic of 1873 get much worse.
Little Big Horn
“Custer’s Last Stand”
Date: 1876
Where: Montana (Little Big Horn River)
&
Sitting Bull
Sioux Chief
V.
Krazy Horse
Sioux Chief
Why was General Custer here?
George Custer
U.S. General
7th Cavalry
Laws of Supply and Demand
low supply (shortage) = high price
high supply (surplus) = low price
low demand = low price
high demand = high price
low supply + low demand = low price
low supply + high demand = high price
high supply + low demand = low price
high supply + high demand = fair price
Deflation v. Inflation
Deflation – The value of the dollar increases (the dollar will buy you more).
* Prices = decrease
• On Gold Standard – The U.S. economy is in possession of less gold, making
the gold more valuable, but makes the paper money backed by gold less
valuable.
• Law of supply and demand?
Inflation – The value of the dollar decreases (the dollar will buy you less).
* Prices = increase
• On Gold Standard – The U.S. economy is in possession of more gold, making
the gold less valuable, but makes the paper money backed by gold more
valuable.
• Law of supply and demand?
Farmer Loan Problems
Year # 1:
• Loan – $1,000.00 to be paid back next year
• Corn Price – $0.25 per ear (4 for $1.00)
• Corn production needed to pay back loan – 4,000 ears of corn
• Harvest sales expectation – 4,000 x $0.25 = $1,000.00
Hmmmmm………..
Farmer Loan Problems
Next Year – Deflation Occurs (dollar will buy you more / price drop):
• Loan – $1,000.000
• Harvest corn price after deflation – $0.20 per ear (5 for $1.00)
• Your planned production to pay back loan taken – 4,000 ears of corn
• Price when loan taken – 4,000 x $0.25 = $1,000.00
• Harvest sales – 4,000 x $0.20 = $800.00
• Short on loan payback to bank – $200.00
• Result: Foreclosure or re-possession of farm
Free Silver Movement
Goals:
1. Unlimited “coinage” of silver.
2. Bimetallism – “Coining” gold and silver and using both
metals to back the value of paper money.
Desired Gold for Silver Exchange Ratio: 16 to 1
• 16 ounces of silver is equal in value to 1 ounce of gold.
Occupation of the supporters of this movement – farmers
Supporters of this movement – “Silverites”
Opponents of this movement – “Goldbugs”
What is the abbreviation for ounces?
Bi-Metallism
Bimetallism – “Coining” gold and silver and
using both metals to back the value of paper
money.
+
=
Basis of the Free Silver
Movement
1. Adding more metal to the money supply in order to
back the paper currency (greenbacks) will stabilize
the value of the dollar and help control deflation and
inflation.
2. If there is more metal being “coined”, there will be
more money in circulation for people to use to buy
goods and services. This will stimulate the economy
which was very stagnant at the time.
Dorothy’s Ruby Red Slippers
What color were they in book?
Wizard of Oz Book Illustration (1900)
Start – Munchkin Land
End – Emerald City
Silver States
“Silverites”
What – States where the population is in favor of the free silver
movement and bi-metallism.
Where: The west and the south.
Why these state? These states had a high population of farmers.
Gold States
“Gold Bugs”
What – States where the population is not in favor of the free
silver movement and bi-metallism.
Where: The northeast and mid-west.
Why these state? These states were highly industrialized and
did not have a a high population of farmers.
Between the “gold state” region
and the “silver state” region,
which one had the higher
population?
Bland-Allison Act
(1878)
Terms: The U.S. government will coin $2,000,000 in silver
each month.
Sherman Silver Purchase Act
(1890)
Terms: The U.S. government will coin $4,500,000 in silver each
month.
Reminder –The congress members of the northern states agreed
to passing this law if the congress members of the southern states
agreed to pass the McKinley Tariff Bill (1890).
The Populist Party
Birth – 1892
Other Name – The People’s Party
“Populus” = “the people” (Latin)
Members – Farmers (black and white)
Goal – “Bridge” the gap between the industrial east and the
underdeveloped western “frontier”.
“Group Hug”
Populist Party Platform
1. Unlimited coinage of silver – There should be no set amount
as there is under the Bland Allison Act (1878) and the
Sherman Silver Purchase Act (1890).
2. Progressive income tax – The more you make the
higher your taxes will be.
3. Government ownership of the railroads – Regulation
of railroad companies and the shipping rate they offer.
4. Shortened work day – 8 hour workday.
What type of people are helped by each one?
The Greenback Party
(1875 – 1884)
Political Platform – Did not want to see
money backed by any metal, because it
allows the government to control the value
of paper money and price (deflation and
inflation) by controlling the amount of metal
that can be coined into money.
Solution – The government should just print
more money (greenbacks) and let the economy
itself set the value of the paper money and not
the government.
Greenback Presidential Candidates:
1. Peter Cooper (1876)
2. James Weaver (1880)
3. Benjamin Butler (1884)
The Greenback Party dissolved in 1884 after losing the election of 1884.
Members of this party joined and helped form the Populist Party.
Other Populist Groups:
Farmer’s Alliance, Black Farmer’s Alliance, & The Grange
Election of 1892
President – Grover Cleveland (D)
Vice President – Adlai Stevenson
Populism’s Popularity
1892 Election Results
1. Populist Candidate James Weaver’s Vote Count – 1,000,000
2. Weaver’s electoral votes – 22 (5 %)
3. States won by Weaver – Idaho (3), Nevada (3), Colorado (4),
Kansas (10), Oregon & N. Dakota split their electoral votes
proportionally rather than winner take and Weaver got one
electoral vote from each state.
4. Populist Senators Elected – 3
5. Populist House Representatives Elected – 11
Grover Cleveland’s Popularity
He was not liked by the Populists because he repealed (overturned) the
Sherman Silver Purchase Act (1890). This was blamed for being a cause
of the Panic of 1893 or the Depression of 1893.
The Washington Monument
Where: Washington D.C.
William Jennings Bryan
Home: Nebraska
Personal Background:
1. Farmer
2. Presbyterian Minister
Political Party – Democrats
Political Background:
1. House Rep. (1890 – 1894)
2. Ran for Senate in 1894 and lost
New Political Party – Populist
Bryan’s Nicknames
1. “Great Commoner”
2. “Boy Orator of the Platte”
3. “Prairie Avenger”
4. “Silver Tongue”
William Jennings Bryan
Campaign Effort:
Traveling Campaign:
1. States Visited – 27
2. Miles Traveled – 18,000
3. Speeches – 600 (36 in one day)
4. Audience – 3,000,000 people
July 9, 1896 After giving his famous Gold
Cross speech at the Democratic National
Convention in Chicago.
Leader: William Jennings Bryan
“You shall not press down upon the brow of labor a crown of
thorns, you shall not crucify mankind upon a cross of gold.”
Political cartoon from Harper’s Weekly Magazine (1896)
Democratic Party Platform
1. Bimetallism over monometallism
2. Gold to silver ratio where 16 ounces (oz) of silver is equal to 1 ounces (oz) of gold.
3. Unlimited coinage of silver or tuning mined silver into to coins for the purpose of
buying something.
4. Opposition to international tariffs.
5. No income taxes or a progressive income tax.
6. Reduction of the number of people working for the government in “useless”
positions, because their salaries are paid by American’s tax dollars.
7. No more federal government interference in state government affairs.
8. Government control of railroads.
Democratic Party Platform
9. No more denial of U.S. soldiers pension’s (retirement funding).
10. The territories of New Mexico, Okalahoma, and Arizona now become states.
11. The Alaska territory gets one delegate to represent them in Congress.
12. The U.S. upholding the Monroe Doctrine (1823), which stated that European
countries should stay out of the Americas and that the U.S. will stay out of European
affairs and their colonies.
13. Sympathy for the Cuban people in their struggle for independence against Spain.
14. End the spoils system which creates “life” service for government officials.
15. Limiting the U.S. President to two terms of office.
16. Improvement of major U.S. waterways to provide an alternate way to ship goods and
travel.
William McKinley
1896 Campaign Effort: “Front Porch Campaign”
Leader: William McKinley
Wizard of Oz Book Illustration (1900)
Republican Party Platform
1. High tariff on imported goods in order to protect American industry.
2. Fight to lift foreign tariffs placed on American goods shipped to other countries and
trade restrictions with other countries.
3. Restoring the Merchant Marine to help protect American ships of commerce (trade).
4. Monometallism (using the gold standard only).
5. Fair and honorable treatment of U.S. military veterans.
6. Help Cuba in their fight for independence against Spain.
7. Enlarging the U.S. Navy to provide adequate defense of seacoast.
8. The thorough enforcement of immigration laws which exclude immigrants who
cannot read or write from entrance into the U.S. They are uneducated and used as
cheap labor for employers which undermines the hard working American.
9. Civil Service laws will be enforced when people are hired for government jobs.
Republican Party Platform
10. All U.S. citizens of legal age should be able to vote for free (no poll tax).
11. Condemning “lynchings” which are a common practice in most southern states.
12. Formation of a National Arbitration Board to help settle disputes between employers
and workers.
13. Repealing the Homestead Act.
14. The admission of the remaining territories as states at the earliest practical date and
that these territories can elect their own government as they choose.
15. Alaska should have representation in Congress.
16. Equal rights for women.
Election of 1896
President – William McKinley (R)
Vice President – Garret Hobart
Vice President Garret Hobart died in 1899 and he was replaced Teddy Roosevelt
Election of 1900
President – William McKinley
Vice President – Teddy Roosevelt
Gold Standard Act (1900)
Terms: Paper money is backed by gold only, and silver cannot be exchanged for
gold.
Why: Gold discoveries increased the amount of gold in the U.S. by $100,000,000
Where gold was discovered:
1.
2.
3.
4.
Alaska (U.S.)
South Africa (U.K.)
Canada (U.K.)
Australia (U.K.)
Importance: The End
1. Populist Movement
2. Bi-metallism
3. William Jennings Bryan
Repealed in 1934 during the Great Depression.
William Jennings Bryan
Political Career After the Populist movement “died out”.
Future Attempts: He ran for President in
1908 for the Democratic party and lost again.
Scopes Monkey Trial: Bryan was the
prosecuting attorney during the Scopes
Monkey Trial, in which a substitute teacher
(John Scopes) was on trial for teaching the
theory of evolution to his students.
Trial Verdict: John Scopes was found guilty
And ordered to pay a fine of $100.
His Death: Bryan died 5 days before the trial
was over.
Floating Currency
Established – 1971 (Nixon Administration)
Principle Idea – The value of a nation’s money is
based on how good or bad a nation’s economy is in
the worldwide economy (GNP).
Good Economy = high value of money
Bad Economy = low value of money
Puck Magazine Illustration (1896)
Puck Magazine Illustration (1896)
“E Pluribus Unum”
“Out of many one”
U.S. Currency’s Hidden Racism?
What did Lincoln do?
“Applying an old economic crisis
to the present economic crisis.”