Politics – 1868 to 1896
Election of 1868
Radical Republicans chose U.S. Grant as their candidate.
They were champions of a vigorous Southern reconstruction
policy, defenders of Northern financial and business interests
against Western agrarians and payment of public debt in
gold. The Democrats chose Horatio Seymour who drafted a
platform that Reconstruction was unconstitutional and
favored the “Ohio Idea”that proposed government bonds
should be paid in greenbacks rather than gold. Grant won
214 to 80 electoral votes but the white voters did not endorse
the Radical Republicans.
Grant’s Presidency 1868 -1872
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Low standard of public morality
Business leaders sought and received favors
from the government for a price
Government officials betrayed the interests of
their constituents
Politicians used public office as a source of
private profit
Problems under Grant
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Advisors – personal friends and relatives
Gold conspiracy – Gould and Fisk attempted to corner the gold supply. Even though
Grant at the last moment prevented the plot, it brought financial ruin to many on
Black Friday, September 24, 1869.
Tweed Ring – William “Boss” Tweed of Tammany Hall and his friends committed
against New York City, Thomsa Nast’s political cartoons will help bring Tweed and
his gang down in 1871.
Credit Mobilier Scandal – graft and political connection with the building of the
Union Pacific RR surfaced in 1872. Shares of stock were purchased by
government officials in order to influence legislation. VP resigns thoroughly
discredited. Dividends ranged up to 350%.
Election of 1872
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Democrats and Liberal Republicans nominated Horace Greely. LR opposed radical
reconstruction, wanted civil service, lower tariffs, and against Grant’s corruption
Greely carried only six states but liberals began to have an influence in policy
Grant’s Presidency 1872 -1876
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Salary Grab – Congress in 1873 voted a 50% salary increase for
themselves - repealed next Congress
Sanborn Contracts – In 1874, Sec. Of Treasury had to resign.
He had permitted J.D. Sanborn to retain exorbitant commissions
for collecting unpaid taxes.
District Ring – Grant appoints the Governor of D.C. despite his
known graft and corruption to head a commission . Senate
refuses to ratify appointment.
Whiskey Ring – Sec. Of Treasury Bristow uncovered a
conspiracy to defraud the government of taxes on whiskey.
Grant’s private secretary , O.E. Babcock, was involved.
Belknap Scandal – Sec. Of War Belknap resigned before being
impeached as he had accepted bribes for several years for
trading on Indian reservations.
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Slaughter house cases – 1873
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Panic of 1873 – set off a five year depression
The Greenback Question
1. Crime of ’73 –to contract the volume of paper money
greenbacks – to be redeemed only in gold.
2. Congress passes a bill in 1874 to add more Greenbacks into
economy. Grant vetoes.
3. Specie Resumtion Act of 1874 – Greenbacks remain in
circulation but after January 1, 1879 , redeemable at face
value in gold.
4. Greenback Party created in 1875. It will decline due to the
increase favoring of free and unlimited coinage of silver.
Election of 1876
Hayes wins disputed elected. Reconstruction ends with
Compromise of 1877
Events under Hayes
Bland – Allison Act 1878 - $ 2 – 4 M worth
of silver to be coined each month into silver
dollars. Hayes vetoed but passed over his
veto.
 January 1, 1879, greenbacks would be
redeemed at face value in gold.
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Election of 1880
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James Blaine –Rep. Ohio – wins election as a dark horse – a halfbreed
Republican Party split His vice president Chester Arthur was a Stalwart
A. Stalwarts – led by Roscoe Conkling – favored civil service reform
B. Halfbreeds – led by James Blaine – partially favored civil service reform
Solid South – after 1876 the Democrats could count on the South to vote
Democratic. This will hold true for the next 100 years
Waving the bloody shirt – Congressional members will place a bloody shirt from
the Civil War and wave it on the floor to remind members of Congress about the
Civil War.
GOP – the Republican Party becomes known as the Grand Old Party
Garfield is assassinated September 1881
Arthur’s Presidency
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Pendleton Act – 1883 – Civil service Reform
Chinese Exclusion Act – 1882 – Burlingame Treaty 1868 granted Chinese
subjects unrestricted rights of immigration and equality of treatment with other
immigrants. Due to threat of Chinese competing with American labor, Chinese
labor was excluded for 10 years.
Pork Barrel Appropriations- Surplus in government treasury from 1870 –1880
allowed pork barrel projects to double. Congress approved improvements and
public works in their respective districts.
Election of 1884
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Grover Cleveland (NY) wins over James Blaine (Maine)
Reasons for Cleveland winning:
A. Mulligan Letters
B. Mugwumps
C. Prohibitionists in upstate NY normally Republican voted Democrat
D.” Rum, Romanism, Rebellion “ speech
Cleveland’s Presidency
Repeal of Tenure of Office Act
 Presidential Succession Act
 Dawes Act
 Interstate Commerce Act
 Pension controversy
 Tariff Controversy
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Election of 1888
Cleveland opposed the tariff
Harrison favored the higher tariff to protect
American industry
Cleveland won the popular vote by 100,000
but lost the electoral vote 233 -168
Harrison’s Presidency
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Thomas “Czar” Reed is Speaker of the House . His power is enforced by defeating the
Democrats at their attempt to take over Congressional power.
Billion Dollar Congress – the surplus of money was dissipated through increased
expenditures.
Sherman Silver Purchase Act – 1890 – government to purchase $4.5 M of silver each
month ; treasury notes redeemable in gold or silver
McKinley Tariff – woolen and cotton goods, and steel products were increased
Sugar subsidy – raw sugar on free duty list and granted a bounty of 2¢ a pound to
domestic producers of raw sugar. Benefited American Sugar Refining Co.
Sherman Anti – Trust Act – 1890
Election of 1892
James B. Weaver – Populist – 22 electoral votes
Benjamin Harrison – Republican
Grover Cleveland - Democrat
Cleveland’s Presidency
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Panic of 1893
a. speculation
b. government expenditures caused deficit
c. hoarding of gold
d. decline in confidence of government to meet its gold obligations
e. gold reserve fell to below $100M
Coxey’s Army 1893
Repeal of Sherman Silver Purchase Act 1893
Wilson Gorman Tariff 1893
Pollack v. Farmers Loan and Trust 1894
U.S. E.C. Knight Co. 1895
Morgan contract 1895
Pullman Strike 1894
Election of 1896
William McKinley – Republican – gold
William Jennings Bryan – Democrat – silver
Republican victory meant:
1. Dominace of Eastern business interests in government
2. Triumph of conservative financiersin fiscal ploicy
3. Defeat of farmers and laborers against industrialists