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Politics, Immigration, and Urban Life. Chapter 8 (modern) America: Pathways to the Present. Politics in the Gilded Age. Gilded Age - ‘covered with a thin layer of gold’ Wealth and prosperity and progress VS. Urban, labor, and farming problems and big business corruption.
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Politics, Immigration, and Urban Life Chapter 8 (modern) America: Pathways to the Present
Politics in the Gilded Age • Gilded Age - ‘covered with a thin layer of gold’ • Wealth and prosperity and progress VS. • Urban, labor, and farming problems and big business corruption
The “Business of Politics” • Laissez-faire • Government should play a very limited role in business • Favored high tariffs on imports (to protect American businesses) • Government subsidies • payment by government to encourage development of certain businesses and/or industries (I.e. RR)
Credit Mobilier Scandal “Every Public Question With an Eye Only to the Public Good” • Gov’t awarded Union Pacific (UP) RR loans and land to build Transcontinental RR • Credit Mobilier company - hired to build RR • Credit Mobilier charged UP way too much $$$. • In order for Congress to keep funding, Credit Mobilier offered cheap shares of stock to Congressmen who agreed to support continued funding • Investigated in 1872 - both parties, lots of indivuduals - guilty Harper's Weekly March 15, 1873
Spoils System - Patronage system • Started in American politics with Andrew Jackson (1828) • ‘To the victor, go the spoils of war…’ • Giving of jobs as a reward for loyalty - even to unqualified people
Republicans Appealed to industrialists, bankers, and eastern farmers Strongest in N and upper Midwest Favored tight money supply backed by GOLD High tariffs High pensions for Union soldiers Gov’t aid to RR Strict limit on immigration Enforcement of blue laws - prohibited private activities many considered immoral Democrats Attracted those less privileged Northern immigrant workers, laborers, southern planters, western farmers Claimed to represent ordinary people Favored increased money supply backed by SILVER Lower tariffs Higher farm prices Less gov’t aid to big business Fewer blue laws Political Parties in the Gilded Age
Spoils System Reform • 1877 - President Rutherford B. Hayes refused to use patronage system • Began attempt at CIVIL SERVICE reform • Split his party (Republicans) in 1878
Republican split • Stalwarts - Sen. Conkling - defended spoils system • Half-Breeds - Sen. Blaine - reform spoils system but maintain party loyalty • Independents - opposed spoils system entirely (Mugwumps)
James Garfield 1880-1881 • Elected 1880 • Half-Breed faction - to reform spoils system but maintain party loyalty • Assassinated by Stalwart supporter - Guiteau - (who expected a job from Garfield and didn’t get it)
Chester Arthur • VP w/ Garfield • Became president after assassination • Beneficiary of patronage in NY • Pendleton Civil Service Act of 1883
Pendleton Civil Service Act • Civil Service Commission set up • Tested applicants • Fed employees not required to contribute campaign $$$ • Could not be fired for political reasons
Election of 1884 - Grover Cleveland • Grover Cleveland - Democrat • Cleveland heavily criticized • Issues: • Favored tight money policies • Opposed high tariffs • Took back 80 million acres from RR • Supported more gov’t regulation of RR
RR Regulation • Many complaints of questionable RR practices • Rebates - partial refunds to favored customers • 1877 - Munn v. Illinois - Supreme Court decision allowed states to regulate certain businesses (including RR) • 1886 - decision limited state control in Wabash v. (interstate commerce still unregulated) • 1887 - Interstate Commerce Act set up Interstate Commerce Commission (ICC) • Usually had to file suit against RRs and until 1905, lost 15 of 16 cases before the Supreme Court
President Benjamin Harrison - 1888 • Republican - supported business interests • Favored on an increase in tariffs • Awarded huge pensions to dependents of Civil War soldiers • Hurt the economy in the long run • Major Achievement: • Sherman Antitrust Act of 1890
Sherman Antitrust Act of 1890 • Outlawed any combination of companies that restrained interstate trade or commerce • Proved ineffective for over 15 years • Vague wording - enforced rarely • Courts = pro-business
Cleveland’s second term - 1893-1897 (unpopular) • Panic of 1893 • Millions of workers lost jobs or had wages slashed • 1894 - Coxey’s army demanded gov’t create jobs for unemployed • Repealed Sherman Silver Purchase Act • Sent federal troops to Chicago during the Pullman strike of 1894
Populists - Democrats: William Jennings Bryan Working class and farmers Free silver Labor reform “Cross of Gold” speech Republicans: William McKinley New tariff bill (raised) Stronger gold standard “A Full Dinner Pail” Election of 1896