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Gilded Age. Political Corruption and Abuse in the Post Civil War Era. Term “Gilded Age”. Novel published by Mark Twain in 1873. ( Gilded Age: A tale of today ) Fictional look at Political Corruption in America.
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Gilded Age Political Corruption and Abuse in the Post Civil War Era
Term “Gilded Age” • Novel published by Mark Twain in 1873. (Gilded Age: A tale of today) • Fictional look at Political Corruption in America. • Book’s two main characters are tied together in a government railroad bribery scandal. • It depicted an American Society that was riddled with corruption despite the outward appearance of prosperity. • For many, this was almost like a true-life novel!
Two General Themes • Laissez-faire = A doctrine of opposition to government interference in business affairs. • Because Govt. would not intervene in business affairs, corruption, worker abuse and scandal was the fabric of American business in the 19th Century. • Concentration of Power = Govt. agencies created at National, State and Local level to carry out the bureaucratic system. • Examples: Land Offices, Railroad Subsidies, tariff policies, immigration policies, Indian Policies.
Political Acts • Homestead Act (1862) – Public Land Grants from Congress to farmers. • Stipulations: • Any Adult person who headed a family qualified for: • 160 Acres of Land, small registration fee applied. • Had to live on land for five continuous years. • 15,000 Homestead Claims at end of Civil War • Problems: • Not enough people moved from slums of inner city to west. • Most land ended up in hands of speculators. • Pacific Railway Acts (1862 & 1864) • Direct Grant of public land to private corporations for development of Transcontinental RR. • Stipulations: • For every mile of track laid by RR, they received 12,800 acres to do with what they wanted. • US Govt. Paid $48,000 for every mile of track laid in mountains.
Railroad Scandals • Credit-Mobilier (1872-73) • Major stockholders of Union Pacific RR created a company to build Railroads. • Politicians were the major stockholders, therefore, each time they approved a contract with Govt., they were effectively paying themselves! • Scandal broke on eve of Election of 1872!
“The Bloody Shirt” • Grant was nominated by the Republicans in 1868. • Had voted only once in his life! • Republicans used Civil War as means to energize voters. • “Vote as you shot!” • Grant won 214 EC votes to 80 for Horatio Seymour. • 500,000 former slaves voted for Grant, giving him his margin of victory. Republicans would win all but one term between 1868 and 1912!
The Era of “Good Stealing” • Entire era is known for political corruption, bribery of elected officials and scandals. • Scandals involving Gold Speculation, Railroad finances, and payroll scandals dominated the headlines. • Grant was incompetent as a President. He did not understand how to surround himself with competent advisors. • Many were relatives, hangers-on and incompetent public servants who did not belong in Government.
Boss Tweed & Tammany Hall • Tweed – a 240 pound ward boss used bribery, graft and fraudulent elections to orchestrate the political scene of New York City. • He probably stole $200 million (estimated) from the city! • Tweed merged the Society of St. Tammany with the Democratic Party. • 1865-1871 – they controlled NYC politics. • 1871 New York Times article exposed his corruption. • When questioned, his response was “So what are you going to do about it?” HE NEVER DENIED IT! • He was convicted and sent to jail in 1873 with the help of Samuel J. Tilden. • He escaped and worked in Spain and Cuba as a sailor. • He was captured (because of a cartoon depiction) and returned to NYC where he died in debtor’s prison!
Election of 1872 • Grant was nominated to run again even though his administration was filled with corruption. • Horace Greely ends up as the Democratic nominee. • He is too LIBERAL! • Grant won the Popular vote as well as the EC vote. • People had to choose between two candidates that had other careers before their political careers began! IMPACT: General Amnesty Act 1872 Removed Political restrictions on all but 500 former confederate leaders.
Economic Chaos • 1873 – Economy collapsed. Too many RR lines, too many new business loans, no profits = loans went unpaid and banks that made loans failed. • 15,000 businesses went bankrupt! • Unemployed riots broke out in NYC. • Hard & Soft Money Problems • $450 million worth of greenbacks issued during Civil War. • $100 million already had been withdrawn from circulation. • HARD MONEY supporters want only gold & silver used as currency. • SOFT MONEY supporters want to continue distribution of Greenbacks. • Grant had to deal with the crisis!
Failures of Grant • 1874 – tricked into a veto of bill to print more money. • 1875 – Resumption Act • Withdrew all greenbacks and exchanged them for gold beginning in 1879. • Coinage of Silver • Westerners from Silver Mining states wanted to see silver as the basis for nations money supply. • Supply increased, prices dropped, plan was scrapped!
Election of 1876 • Rutherford B. Hayes ran against Samuel Tilden • Tilden won the popular vote by 248,000 votes. • However, he only polled 184 EC votes. (185 to win!) • Southern states submitted two sets of votes in LA, FL and SC…one favoring Democrats and one favoring Republicans. • Electoral Commission created to settle dispute. • EC Votes of Florida were given to Hayes and ended the standoff.
Election of 1876 • Example of how politicians will trade political gain for people’s lives. • Hayes lost popular vote. • Full Congressional rights were not granted to all former Confederate States, so decision would be fair if decided in Congress
Social Issues were abandoned • Women-Many in North and South had helped to care for soldiers. • Once war was over, they were largely ignored by politicians. • Labor Unions -were pressing for the rights of factory workers. • Immigrants -wanted protection under the law! • Anti-Slavery Crusaders-accomplished their goal but still had work to do! Elizabeth Cady Stanton Susan B. Anthony
James A. Garfield • Elected President from Ohio in Election of 1880. • Had actually gone to Convention to support another candidate but ended up being Republican candidate because of speech he gave at Convention. • Became President with Chester A. Arthur as VP. • Garfield as known as a “Half breed” – a person who supported Civil Service reform in the Govt. • Arthur was known as a “Stalwart” or a person who believed in the Spoils system. Garfield was shot on July 2, 1881 By Charles Guiteau, a man who was upset he had been passed over for a Govt. job. Garfield survived for 11 weeks before he finally died in Sept, 1881 Probably would have survived if doctors had sterilized their hands before probing his wounds
Garfield’s Death • Brought about real Civil Service Reform in Govt. • Pendleton Act (1883) • Created US Civil Service Commission and a merit system for employees of the Federal Govt. • Nearly all Political Jobs today are classified as Civil Service Jobs. • WANTED -- A GOVERNMENT CLERKSHIP at a salary of not less than $1,000 per annum. Will give $100 to any one securing me such a position." • GAR –Grand Army of the Republic • Created by Union Army Civil War Veterans. • Every Republican Presidential Candidate sought their endorsement. • Founded in 1866, eventually had 490,000 members. • Brand-Allison Act (1878) • Stated that US Treasury had to buy and coin between $2 and $4 million worth of silver bullion each month!
Chester A. Arthur • 1881 – 1885 • Became President with death of Garfield. • Tried to reform the Spoils system as President even though he had supported it in previous political careers. • Chinese Exclusion Act (1882) • Passed during his tenure. • Excluded Chinese from US immigration for 6 decades. • Suffered from kidney disease for years and died in 1886.
Baine – Cleveland Election 1884 • Grover Cleveland (only 47) became the only Democrat elected as President between 1865 and 1914 by collecting 1,100 more votes than James G. Blaine in Cleveland’s home state of NY. • Campaign was filled with mudslinging and name calling.. • Neither candidate had served in the Civil War. • Blaine failed to stop an ethnically insulting speech in closing days of campaign and lost election! • “Ma, Ma, where’s my Pa?” – slogan used by Republicans to make fun of Cleveland’s illegitimate son. • “Rum, Romanism and Rebellion” – speech that insulted Irish Catholics in NY. • Cleveland would leave an indelible mark on the Presidency.
Grover Cleveland • 1885 -1889 & 1893-1897 • “though the people support the Government, the Government should not support the people” • Tried to unify the country • Named 2 former Confederates to cabinet. • Vetoed 100’s of pension bills sponsored by GAR supporters. • Democrats did not believe he was doing a good job but nominated him anyway in 1888 election 22nd President of the USA 24th President of the USA
Cleveland as President • Supported a Lower Tariff because the high tariffs of the Civil War produced an annual budget surplus of $145 million. • Industrialists of the time opposed lowering the tariff. • Reason: They had been protected from foreign competition! • Cleveland believed that a lower tariff would lower prices for consumers and would end the treasury surplus. • The tariff would actually divided the two parties in the election of 1888. • Benjamin Harrison would become President from 1889-1893 because of Cleveland’s fiscal policies. • Only the 2nd President to get married in the White House. • He was 59, she was 21 (youngest first lady ever!)
Benjamin Harrison • 23rd President of the United States • Grandson of William Henry Harrison • Election of 1888 was one of the most corrupt in History. • “Floaters”, “repeaters” and “voting cattle” were people who were paid $20 each to vote multiple times in different places. • $3 million dollar war chest used by the Republicans to ensure his election! • Loses the Popular vote by less than 100,000 votes but wins the EC votes 233 to 168! Republican President 1889-1893
Accomplishments of Harrison • Pan American Congress met in 1889 to unify Western Hemisphere nations. • Sherman Anti-Trust Act signed in 1890. • Proposed annexation of Hawaii. Did not happen. • Had to deal with the “Billion Dollar Congress” • Congress showered Civil War vets with pensions and benefits that would be paid out until the 1930’s. • Had to deal with the newly formed Populist Party.
Populist Party • They were originally a part of the Farmers Alliance. • They supported: • Unlimited coinage of Silver. • A Graduated Income Tax to replace the tariff. (becomes the 16th Amendment) • Government ownership of Railroads, telegraphs and telephone systems. • The direct election of US Senators (they were chosen by State legislatures until 1913) 17th Amendment! • Shorter Workdays & Immigration restrictions! • Tried to appeal to farmers and blacks by using racial divisions that eventually destroy the party. • Populists polled 1 million popular votes in 1892 election and 22 electoral college votes: • IMPACT: Demonstrated the importance of third party in American Electoral process
Cleveland as President (Part 2)1893-1897 • Only President in history to be reelected after having been defeated. • Inherited a country on the verge of collapse: • Labor strife: Strikes and unrest plagued all parts of the country. • Depression: Businesses failed and the economy tumbled into a tailspin. • Chaos: 8,000 American business went under in 6 months time! • Deficit: Country was now in debt! $145 million dollar surplus in 1888 turned into a billion dollar debt! • Gold Issue: Treasury only had $100 million in Gold deposits which could support $350 million in cash money. If it dropped below $100 million, many feared our money system would collapse
Additional Issues • Health (1893)– Cleveland had a tumor on the roof of his mouth removed. The surgery was kept a secret. • If Cleveland had died, new President, Stevenson (VP) was too soft to be effective! • Surgeon removed his upper palate and 1/3 of his jaw! • Silver Purchase Act Repeal (1894)– Repealed the 1890 Act of Congress which forced the Fed. Govt. to purchase silver every month! • Bond Floating (1895)– Cleveland secured two $100 million dollar bonds from JP Morgan to restore confidence in the nations finances. • Cleveland was criticized and called “Morgan’s errand boy” • Wilson –Gorman Tariff (1894) – Supposed to lower the tariff but actually was so loaded with special interest pork legislation that Cleveland refused to sign it. • Cleveland was forced to deal with a slumping economy, political divisions among not only parties but also among classes of people.
Domestic Problems for Cleveland • Coxey’s Army-Jacob Coxey (an Ohio quarry owner) vowed to march on Washington, DC with 500,000 men to demand rights for the unemployed. • The purpose of the march was to protest the unemployment caused by the Panic of 1893 and to lobby for the government to create jobs building roads and other public works improvements. • The march originated with 100 men in Massillon, Ohio on March 25, 1894. • Labor Strikes • Homestead Strike (1892) – Crippled Carnegie Steel in Carnegie, PA. • Pullman Rail Strike (1894) – Govt. intervened in RR strike and stopped union from crippling RR industry. • Democrats • Believe that Cleveland is no longer an effective leader. • Nickname: “The stuffed Prophet”
Election of 1896 Democrats did not select incumbent President to represent them. Convention votes 564 to 357 to not endorse Cleveland for the Presidency. Bryan electrified the crowd with the “Cross of Gold” Speech William McKinley Republican Candidate From Ohio William Jennings Bryan Democratic Candidate From Nebraska
Plow holders vs Bond holders(1896) • Country was gripped by fear that Bryan’s election would mean disaster for Industrialists. • “In God we trust, with Bryan we bust” = slogan popularized by the “Gold Bugs” • Republican Party officials scared Industrialists into believing that Bryan wanted to destroy them, as a result, Republican slush find was created =$16 million (Dems = $1 million). • Republican businessmen placed contracts with manufacturers contingent upon McKinley’s election. • Result: factory owners made sure employees voted for McKinley! • Many owners told workers not to come to work on Wednesday if Bryan won! • Rumors circulated that paychecks would be issued in 50 cent pieces if Bryan won! • Dirty Politics were the standard bearer in the election of 1896!
William McKinley • 25th President of the United States. • Under McKinley, business expanded, trusts increased and the depression went away. • Passed the Gold Standard Act of 1900. • Solidified Gold as the basis for American economic system. • Elected to a 2nd Term but assassinated by an anarchist in Buffalo, NY in 1901. • People said that his mind was an open book waiting to be filled! 1897-1901
Impact of Gilded Age • New Sociopolitical Trends: • Laissez Faire (Hands off economics) • Social Darwinism (Survival of the fittest) • Currency Issues (Gold Standard adopted 1890) • Civil Service Reform – gets rid of Spoils System • Western Frontier Opens • Population/Urbanization –boomed after Civil War • Economic Opportunities in Agriculture are in West. • Relocation/Resettlement of Indian Tribes again. • Divide & Conquer -Native Americans gradually lost territory • Bloody Indian Battles –Little Big Horn –death of Custer • Reservations created/expanded – many tribes destroyed. • Buffalo are nearly extinct!
Boom in the West • Mining Frontier opens –NV, AZ, NM – towns grew overnight. • Towns don’t survive: Ex: Pike’s Peak, Co & Comstock Lode, NV • Law enforcement – Problem in the West. • Gold mining – improved financial positions of US • Paid for post war expenses • Blazed new trails across USA • Land Boom • Govt. gave away huge amounts of landin the West. • Railroads connected East & West • Pacific Railway Act helped expand country. • Homestead Act (1862) –increased population. • Timber Culture Act (1873) – gave people 160 additional acres if they agreed to plant trees on ¼ of land within 10 years. • Timber & Stone Act (1878) – Sold forest lands considered unfit for civilization (cheap) –IMPACT: Massive De-forestation. • Bonanza Farms – set up by companies to produce massive amounts of food cheaply.
Railroad Boom • Govt gave RR’s land grants. • Massive Profits generated from sale of excess land. • Transcontinental RR – completed 1869. Joined East & West. • Cattle Boom • Demand for food fueled by increased population. • Cattle Towns emerged –Kansas City, Tulsa, slaughterhouse society created. • Competition for Space lead to • Cattle Wars – stealing of cattle by rustlers, ranchers, etc… • Open Range ranching – own water source, and cattle can graze there. • Barbed Wire warfare – many tried to fence off their land to keep others out! • Decline of Cattle Boom • Barbed wire warfare killed cattle • Falling prices –lowered by innovations like Refrigerated Rail Car (1877) • Weather – dust storms, climate change • Overgrazing – food supply disappears.