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Chapter 23. Post Reconstruction and the Birth of the Populist Party. Class Conflicts and Ethnic Clashes. 4 largest railroad companies got together to slashed worker’s wages by 10% Strike ensues: Great Railroad Strike of 1877 Rutherford B. Hayes sends in troops to regulate
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Chapter 23 Post Reconstruction and the Birth of the Populist Party
Class Conflicts and Ethnic Clashes • 4 largest railroad companies got together to slashed worker’s wages by 10% • Strike ensues: Great Railroad Strike of 1877 Rutherford B. Hayes sends in troops to regulate Issue: strikers are threatening interstate commerce Strike outcome: failure and showed the weakness of the early labor movement
Munn V. Illinois (1877) • Supreme Court ruling that upheld the Granger Laws! (farmers win!) • Ruling: Federal Regulation of RR • Federal government gave more power to “STATE GOVERNMENT” to REGULATE a private industry (railroads) if it affects “PUBLIC INTEREST” OVERALL: (If the railroad system takes advantage of the public, the federal government can step in!) Farmers think they are gaining power against the Railroad industry!!!!! (SHORT-LIVED)
Wabash Case (1886) • Ruling: “narrowed” Munn V Illinois / *******Granger Laws are “UNCONSTITUTIONAL”******** • Reason: Grangers “CAN’T” regulate interstate commerce throughout the states (federal government controls that!) • What court case???? • Limited the rights for states to control interstate commerce…leads to the creation of the I.C.C.
Interstate Commerce Act (1887) • Reestablished the fact that the “federal government” controls interstate commerce & not the state MAIN PURPOSE: Federal government is losing MONEY!! (Taxes) Established the Interstate Commerce Commission - FIRST TRUE REGULATORY COMMISSION (federal government – Gibbons V. Ogden)
Class Conflicts and Ethnic Clashes Clash: Irish and Chinese over low-paying jobs Chinese Exclusion Act (1882) - limited immigration to America -first “immigration restriction” legislation in American history
Garfield and Arthur • 1880 Presidential election James Garfield (Republican) v. Chester Arthur (Democrat) - Garfield is assassinated by Charles Guiteau Arthur takes over - Reform-minded
Gilded Age of Politics • Gilded = Corrupt • Coined by Mark Twain • Examples: Political Machines like Tammany Hall led by Boss Tweed (Tammany Ring Scandal) PENDLETON CIVIL SERVICE ACT “Magna Carta of civil service reform” Dissolved the Spoils System *giving a federal job based on MERIT, not based on who you know - established the Civil Service Commission - awarded jobs to qualified people
1884 & 1888 Presidential Election James Blaine (Republican) V. Grover Cleveland (Democrats) WINNER • “Mugwumps” = reform-minded Republicans that switched to the Democratic Party • “Old Grover” as president: (1) Supported laissez-faire Who is happy: ______________________ (2) Name 2 Ex-Confederate leaders to his Cabinet GOAL: _____________________________ (3) Supported the “merit” System and fired 80,000 of 120,000 federal officials (problem) 40,000 of them were Republicans so Democrats could come in! (4) Budget Surplus *(unusual problem) - Cleveland couldn’t justify taking taxes in from people when there was a surplus GETTING RID OF THE SURPLUS: • Invent things to spend the money on • Cut taxes (this option was chosen) Problem: Republican WANT high tariffs Issue: Benjamin Harrison *(REPUBLICAN) won the 1888 Presidential election
Thomas “Czar” Reed – Speaker of the House • Republican are BACK IN THE WHITE HOUSE (1888 President Harrison) • Changes: Republicans voted in Thomas “Czar” Reed – Speaker of the House - ran the House like a Dictator Democratic Response: - didn’t answer roll call on purpose (didn’t reach “quorum”) Def: _____________________________________
Thomas “Czar” Reed • Billion Dollar Congress (first time) • Pensions were given to veterans • McKinley Tariff (1890) *Later to become president in 1896 - highest peace-time tariff in American History • Businesses loved it! • Poor people (FARMERS) hated it! RESULT: NEW POLITICAL AGENDA AND PARTY EMERGES IN 1892
Populist Party • Populist Party (People’s Party) emerges at the Omaha Platform in 1892 • Group Involved: Farmers / Farmer’s Alliance / The Grange • Led by: Oliver Hudson Kelley • Focus: Lift the burden of the farmers • Populist’s Platform / Agenda: • More money in circulation (thus, helping them pay off debts) • Unlimited free coinage of silver (to the expense of the Federal Government) • GRADUATED INCOME TAX (_____ Amendment) • Direct election of Senators (_____ Amendment) • Federal Regulation of Railroads - railroads are taking advantage of farmers through (a) high freight rates (6) Initiatives:_______________________________________________ (7) Referendums:____________________________________________ (8) Recalls: _________________________________________________ (9) Immigration Restrictions (10) 8 – Hour workdays
1892 Presidential Election • Grover Cleveland (4 years off) *Only President Money Issues: 1st Presidency (Budget Surplus) 2nd (1892-1896) – deficient (GOLD SUPPLY WAS GETTING VERY LOW!) *WILLIAM JENNINGS BRYAN - young Congressman that argues FOR Silver instead of Gold to back up paper money Gold-for-paper-money *(Gold Standard) is argued but not solidified as the answer FIXING THE GOLD PROBLEM: Cleveland asks J.P. Morgan (Industrial Mogul) for money *$65 Million was given to the government for the gold (J.P. Morgan and associates made $7 million off of the exchange)
Politics in Populism“Silver or Gold?????” • Late 1800s – mild “sectionalism” • Republicans (Northern Industrialists / Bankers) • Democrats / Populists (Southern Farmers) Main Focus: WHICH METAL WILL BECOME THE BASIS OF THE NATION’S MONETARY SYSTEM????? • “Silverites” who favored “Bimetallism” – either gold OR silver in exchange for paper $ (abundance) FARMERS Benefit: more money in circulation would help raise crop prices • “Gold bugs” who favored “Gold Standard” – JUST gold in exchange for paper $ (more stable) BANKERS
1896 Presidential election • Republican – William McKinley (Winner) • (Gold bug/ gold standard) –includes bankers and businessmen • Democrat / Populist – William Jennings Bryan • (Silverite/ bimetallism) – includes farmers and laborers • - Criticized for his radical beliefs • MAIN ISSUE: WHICH METAL WILL BECOME THE • BASIS OF THE NATION’S MONETARY SYSTEM?????
William Jennings Bryan’sCROSS OF GOLD Speech 1896 Democratic / Populist Nomination speech Remember: Bryan SUPPORTS Bimetallism and the “farmer / common man” • “You shall not press down upon the brow of labor the crown of thorns, you shall not crucify mankind upon a cross of gold” • William Jennings Bryan (Cross of Gold Speech) • HATES the Gold Standard • SUPPORTS BIMETALLISM
What ends the Populist “wave” in the late 1890s (1) Democrats “ADOPTED” (Gold Triumphs OVER Silver) many of the Populist ideas…. and they later became law (Ex. 16th & 17th Amendment) (2) William McKinley’s victory in the 1896 Presidential Election