The Gilded Age

1. The Gilded Age AP US History

2. Organizing Principle • The Gilded Age fostered the consolidation and centralization of business, the government, and the disadvantaged economic and social changes

3. Grant – Politics and Scandals • Election of 1868 Republicans nominate the hero of the Union – Grant • He had limited qualifications – expected that it was rightful reward • Grant clubs organized to show appreciation • He was given a house and 105,000 • Accepted them without hesitation believing they were his just rewards • Grant was probably never a threat to become a military dictator – doesn’t seem to have that type of aspiration – also seems to lack energy • Campaign slogan was “Let us have peace.” – grafters saw it was “let us have a piece”

4. Grant – Platform • Support for the gold standard – sound money – Republican party is the party of the big business • Continued Radical Reconstruction – though Grant seems to be unwilling to oversee the operation • Waving the bloody shirt – primary strategy

5. Democrats • Nominate Horatio Seymour • Favor the “Ohio Idea” – retiring war bonds by the reissuing of greenbacks rather than paying them off only in gold as the Republicans favored – Seymour copies this plan • Also favor the end of Reconstruction – meant placing Democrats back in control of state governments

6. Outcome • Grant wins the election • The election is close despite the fact that a Republican military hero is the candidate • Grant won by 300,000 popular vote • 500,000 blacks had voted – thus it appeared essential that Reconstruction by continued

7. “Era of good Stealings” • Grant administration (indeed government generally) was characterized by the loose morality that follows a great war • Grant was apparently not directly involved in the scandals but insists on staunchly defending his appointees and friends • The basis for being selected to Grant’s cabinet was largely whether or not one had helped through one of the clubs which brought him material benefits • One notable exception is the Sec of State Hamilton Fish

8. Tweed Ring in NYC – classic boss rule and corruption • Estimated that between $50-200million was stolen from the city government • Recorded bill of $130 million to a plasterer for 2 days work • Taxes sued as a weapon to cower opponents into submission • Samuel Tilden makes a name for himself prosecuting the Tweed Ring • Thomas Nast (political cartoonist) – helps break the ring – Boss Tweed is said to have remarked – “Those darn pictures” – more effective with illiterate population

9. Credit Moblier Scandal • Designed to set up a dummy company to siphon off profits of transcontinental railroad construction • Fears of discovery led to the bribing of Congressmen, Senators, and Cabinet officiers • One of those who made millions was Leland Stanford who later established Stanford University

10. Whiskey Ring • Treasury department officials took bribes to avoid collecting excise taxes

11. War Department • Belknap Scandal – selling supplies earmarked for Indians for favors • Sanborn contracts – right to trade with Indians awarded by the War department • The Salary Grab – doubled the salary of the President and increased congressional salaries by 50% retroactive • Indirectly these scandals led to the drive for civil service reform – do a degree they may also reflect the typical self-destruction of dominant

12. Foreign Affairs • A scheme to annex Santa Domingo for the assumption of its debts fell through • American people were lukewarm to the idea • Concern seems to be shifting from expansion to development • Beginnings of consistent problems with Spain over Cuba • 1873 several American gun runners executed - Virginius Affair • Cuba seems in a state of almost continual rebellion

13. Maximillian’s plot in Mexico • French plot to establish Maximilian as a puppet government in Mexico • A way of circumventing the Monroe Doctrine • The French eventually abandon Maximilian after the Civil War • US military mobilization and French financial losses probably combine to end it

14. Fenian Uprising • Feeble attempt of ex Union-Irish military men to invade Canada and hold it hostage for Ireland’s freedom • The British North American Act establishes commonwealth status for Canada

15. Alabama Claims • Confederate blockade breakers had been constructed in British ports • Their building constituted an un-neutral act – they preyed on Union commercial traffic • The US present claims for damages and the British agree to arbitration because they don’t want the same tactic used on them • Senator Sumner demands 15million in direct damages and 2 billion in indirect damages for prolonging the war • The Treaty of Washington 1871 agrees to arbitrated settlement • Geneva Agreement settles claims for 15.5 million • It could be contended that the British foreign office hung the canceled check on their wall as a reminder of a serious policy lapse

16. 1870s and the currency controversy • Liberal Republican look to replace Grant • They hold a separate convention and nominate Horace Greeley • Democrats decide to support Greeley as well • Republican insiders like Grant because he is easily manageable • The campaign is very nasty and personal • Grant wins – Greeley loses election then wife, job, mind, and life • The effect of this liberal revolt caused some house cleaning if only to avoid wholesale civil service reform – politicians know you can only get away with being so crooked • It also demonstrates the typical third party role in American politics – to win enough votes to influence one of the major parties

17. Panic of 1873 • Most severe to that date • More than 500 businesses fail • Typical causes of over speculation - typical of post war depression • It is broadly tied to the currency controversy

18. Currency issues – 2 major concerns • Tight or loose money policy • Whether to pay off war bonds in gold or greenbacks • Eventually these two merge in to the single issue of bi-metalism or the gold standard

19. Bimetalism (Gold standard) • Farmers and debtors favor currency inflation – the printing of greenbacks (later the coining of silver) so that money is easier to get, even if the value is not as great • Businesses and creditors tended to favor a stable currency so that the relative value of currency remains constant over time

20. 1870-1871 Legal Tender Cases • Supreme court first rules that the Legal Tender Acts requiring the acceptance of greenbacks in payment of debt are unconstitutional • Later – enlarged court (9 rather than 7) upholds their constitutionality

21. Government Actions • Through the buying and selling of gold and silver the govt attempted to maintain the consistent ratio of 16-1 (ounces of silver to ounces of gold) • Shortages of silver meant that silver was worth more on the open market than the 16-1 • Thus in 1873 the government stopped coining silver dollars • Shortly after the decision, new strikes of silver lowered the price • Mining interests are going to favor the recoining of the dollar • Debtor and farm interests favor the same as a means of currency inflation • Business favors maintaining the gold standard because the value of currency will remain more stable Government decision is known as the “Crime of 73” by debtor classes

22. 1875 Resumption Act • Stated that in 1879 the government would begin redeeming Greenbacks for gold (had been suspended during the Panic of 1873 and more Greenbacks had been printed) • Government prepared for the rush by amassing 100 million in gold reserves • The anticipated run never developed – why? • Economic recovery • Confidence restored • Greenbacks were more convenient

23. 1878 Bland-Allison Act • Called for the government to purchase and coin 2-4 million worth of sivler per month • Government always bought the minimum amount – thus little relief for debtors • Continued strikes led to further price decreases and the value of silver in a dollar fell to 93 cents • Some expansion of currency in circulation was necessary in the period • 1870-1880 per capita money in circulation fell from $19.42 to $19.37- this despite population increases – what does that mean?

24. Tariff Policy • During the war, tariffs had been kept high – would Republicans tend to favor high tariffs – why? • 1872 tariffs revised downward from high wartime levels (-10%) • Panic of 1873 is blamed – Western interests demand lower tariffs • Increased again in 1875

25. Election of 1876 • Republican Grant is interested in a third term but the House passes a resolution warning him of dictator ambitions – two term precedent is strong • Major Republican candidate is James G Blaine • Republicans settle on the dark horse candidate Rutherford B Hayes • Platform provisions • Permanent pacification • Sound money • Civil service reform • Democrats settle on Samuel Tilden – lawyer who helped smash the Tweed Ring • He has some machine and robber baron ties

26. Election of 1876 continued • The impact of the bloody shirt – “Every man that shot a Union soldier was a Democrat. The man that assassinated Lincoln was a Democrat. Soldiers , every scar you have on your heroic body was given you by a Democrat” • Results – Hayes 165 electoral; Tilden 184 -- 4 states in doubt – Oregon, Louisiana, South Carolina, Florida • Tilden needed only one of the 20 electoral votes in question to be elected • Each state submits two sets of electoral ballots

27. Election of 1876 • Electoral commission is established to be made up of 15 members – 5 each from the House, Senate, and Supreme Court • 7 Democrats, 7 Republicans, and Justice Davis (considered neutral) • Davis resigns and the only remaining members of the Supreme Court are Republicans • Initial vote – Hayes in each state • Democrats threaten a filibuster –

28. Compromise of 1877 • Hayes took office • Republicans agree to withdraw federal troops from the South • End military Reconstruction • Allow Democratic governments to take over from Republican ones • Federally funded internal improvements for the South – especially designed to overcome war damage • Republicans promise at least one Southern cabinet member with patronage at his disposal • Unofficial acceptance of non-enforcement of the 14th and 15th Amendments

29. Results of Compromise • Known as the “cold water” administration because “Lemonade Lucy” refused to serve alcohol at state functions • Hayes actually makes a pretty decent President

30. Hayes Presidency • Reconstruction is ended (largely because the North was tired of it) • Ironically, Tilden probably could not have ended Reconstruction • Mild civil service reform occurs – “He serves his party best who serves his country best” • There is a house cleaning at the NY customs house • Chester Arthur is released from his position • Leads to Hayes-Conkling feud • Hayes is forced to deal with serious labor strife – Railway Strikes of 1877 – Hayes calls out federal troops to help put them down – how would Republicans feel about this? – why? • The Chinese Exclusion Act passed over Hayes veto – a symbol of reemerging nativist sentiment • Hayes is not re nominated in 1880 because party insiders couldn’t control him

31. Politics of 1880s

32. Election of 1880 • Grant returns from a world tour too early to maintain enthusiasm • Claims that the 2 term precedent applies only to two consecutive terms • James G Blaine is the leading Republican – but the party is hurt by factionalism • Developing split between the Stalwarts and Half breeds • Roscoe of NY heads the Stalwarts • Blaine is the leader of the Half Breeds • Little different in policy positions – primarily a dispute over which faction controls patronage

33. Election of 1880 • James Garfield (OH) emerges as the dark horse compromise candidate • Chester Arthur (Stalwart) is nominated for VP • Platform largely avoids new issues • Continued support for protective tariffs • Pays lip service to civil service reform

34. Election of 1880 • Democrats • Nominate Winfield Hancock • Promise civil service reform • Importantly – favor a tariff for revenue only

35. Results of 1880 election • Results – Garfield wins • Third party (Greenback/Labor Party) – Weaver may have cost Hancock the election • July 2, 1881 Garfield is assassinated by Charles Guiteau – disappointed office seeker • It could have been the greatest contribution to US history because dying when and how he did ultimately led to civil service reform • Arthur proves to be a better President than anyone had a right to expect

36. Chester Arthur • Avoids any major bloodletting between Stalwarts and Half-breeds • Blaine does lose the position of Sec of State after an encouraging beginning • Major areas of concentration • Civil Service Reform • 1883 – Civil Service Act (Pendleton Act) provides for the creation of the Civil Service System • Designed to encourage appointment based on merit • Initially only 10-12% of the federal jobs fell under its coverage • Expanded over the years – by 1962 – 45% • Naval Construction • When Arthur took office the US Navy ranked just below that of Chili • First steps taken to upgrade it • Four steel ships are commissioned – each with full sail and steam power • By 1898 the US Navy ranks 5th in the world

37. Election of 1884 • Blaine finally wins the Republican nomination – “He had every political asset except a reputation for honesty” • Democrats stand their best chance of winning in 1884 – why • The bloody shirt is fading – Blaine is not a veteran • Republican corruption – including Blaine • Democrats can count on the “Solid South” • Mugwumps defect from the Republican party – concerned with corruption – though primarily with civil service reform • Stalwart opposition to Blaine -

38. Election of 1884 • Democrats nominate Cleveland – reform mayor of Buffalo – though basically a conservative – • Slight philosophical differences – campaign becomes one of personal attacks • Election hinges on NY where the Irish vote is critical • Results – Cleveland wins (carried NY by about 1000 votes)

39. Cleveland administration • Philosophy is very conservative, honest, and frugal • Laissez faire outlook – (government stays out of business interests) • Some commitment to civil service reform • Mugwumps had helped elect him • Spoils system prevails as Democrats are hungry for patronage • Removed about 2/3 of the Republican office holders • 27,000 added to the civil service list • Cleveland laments typical problems with office seekers

40. Cleveland admin – Pension problems • Government surpluses from the tariff encouraged wasteful spending • “pork barrel” legislation and increased pension rolls were used to buy political support from GAR (Grand Army of Republic) • Cleveland vetoed Dependent Pension Bill 1887 • Personally reviews all private pension bills – approved many – disapproved some • Purpose of many of these bills was to spend money so that a high tariff could continue to be justified

41. Cleveland admin – tariff • The tariff provides the major emerging philosophical difference between the parties • Cleveland favored reduction • Elevates it to primary issue in the 1888 campaign against the wishes of the top Democrats • “What’s the use of being elected or reelected unless you stand for something” • 1881 – government surplus 145 million

42. Cleveland admin – tariff issues • Why was the tariff issue difficult to deal with? • Entrenchment political clout of big business – particularly when Senators were selected by state legislature • Significant local interest – while many may favor tariff reduction generally, few favor reduction on goods produced in their areas

43. Cleveland admin • Cleveland believed that the president should confine himself to execution rather than formulation of law • 81m acres of western land reclaimed by Cleveland • Dawes Act passed in 1887 • Attempted to break up tribes by dividing up reservation land among individuals • This was an attempt to break down tribal loyalites • Also established Indian schools away from the reservation to acculturate children • Interstate Commerce Act 1887 1st significant attempt to regulate big business • Overall the Cleveland administration stands out in an era of forgettable presidents and proves that Democrats can function at a high level

44. Election of 1888 • Cleveland the Democratic nominee though the tariff issue is downplayed • Benjamin Harrison the Republican nominee • Campaign generally conducted at a high level – • Results • Harrison wins NY and election

45. Overview of party politics in the Gilded Age • Era of forgettable presidents • Republican domination of the Presidency – but not the government • Democratic philosophy • Similar on economic issues • Politics dominated by political bosses in various states • Role of doubtful states • IL, IN, OH, NY

46. Era of forgettable presidents • Why did good men not seek the Presidency? • Theory – talent gravitates toward dominate power – in this period big business is clearly the dominant force in the country

47. Republican domination of the Presidency • Lost only twice between 1860 – and 1908 • However, 4 times they lacked majority of the popular vote • Seldom controlled both houses of Congress • Election strategy • Wave the bloody shirt • Win GAR support (Army Republic) • Support high tariffs • Otherwise avoid issues • Party’s strength • The party of big business – manufacturing, railroads, bankers • Party of the established, prosperous farmers of the North • Almost totally Protestant

48. Democratic philosophy • Reliance on the basis of the solid South • Support from the small merchants who felt the squeeze of big business • Support from labor, when not coerced by big business into Republican support • Support from Great Plains and Southern (less prosperous) farmers • Support from immigrant groups • Support from Southern protestants and Northern Catholics

49. Similar on economic issues • Both favor laissez faire approach • Tariff issue will eventually divide them

50. Politics dominated by political bosses • The Tweed Ring in NY • The doubtful states • Party administration