Industrial Development and the Late Nineteenth Century
1.3 POLITICAL CORRUPTION DURING THE GILDED AGE
THE GRANT ADMINISTRATION
In 1868, Ulysses S. Grant became the eighteenth president of
the United States. He served as president for eight years.
During his time in office, a number of scandals occurred.
BLACK FRIDAY
The first major scandal resulted in a financial crisis known as
Black Friday. It occurred in 1869. Officials in the Grant
administration participated in a plot to corner the US gold
market. Their plan involved the assistant treasurer of the
United States illegally leaking information regarding the
government’s plans to sell gold. The plan eventually resulted
in a massive drop in gold prices, causing many investors to go
broke. Some accused the president of participating in, or at
least knowing about, the illegal plot.
President Ulysses S. Grant
The Credit Mobilier Scandal involved government
officials illegally profiting from the railroad industry. In
exchange for government favors, the Credit Mobilier
company allowed government leaders to purchase cheap
stock in the company. Meanwhile, members of Congress
(many of whom were in on the deception) approved more
government funding for Credit Mobilier’s railroad
projects than was necessary. Credit Mobilier executives
and government officials pocketed almost $20 million.
The scandal came to light in 1872., Grant however, won
re-election despite the embarrassment.
THE WHISKEY RING
Copyright
In 1875, the Whiskey Ring involved government
officials stealing millions of dollars in government
liquor-tax revenue. Even the president’s own personal
Whiskey Ring Scandal
secretary was charged in the scandal. Scandals like the
Whiskey Ring, Credit Mobilier, and Black Friday led
many citizens to associate Grant and the Republicans with corruption. Such scandals
contributed to the end of Reconstruction and a call for reform.
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CREDIT MOBILIER SCANDAL
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