Corruption Plagues the Nation Topic 2.3

Political Corruption Ulysses S. Grant Popular war hero but a disappointing president Scandal!! Gave high level posts to untrustworthy friends

Spoils System Elected officials appointed friends and supporters, regardless of their qualifications Ensured a loyal group of supporters in future elections Led to corruption when jobs were used for personal profit

Rutherford B. Hayes After his election in 1877, Hayes refused to use the patronage system. Began to reform the civil service or government’s non elected workers Appointed qualified people, fired employees who were not needed Attack strengthened the government but helped weaken the Republicans

James A. Garfield In 1880 election, James A. Garfield won July 2, 1881, Charles Guiteau, a mentally unstable lawyer, shot Garfield Died 3 month later Caused a public outcry against the spoils system Chester Arthur became President

Pendleton Civil Service Act Passed in 1883-Chester Arthur Created a civil service commission Classified government jobs and tested applicants’ fitness Federal employees could not be required to contribute to campaign funds Could not be fired for political reason

Credit Mobilier Scandal Railroad consulting/construction company Formed/owned, by wealthy investors including a few members of Congress Used their congressional influence to help CM obtain federal railroad construction contracts Then CM would use sub-standard materials, immigrant labor, and any measure to cut costs, while all the while over-charging the government. Credit Mobilier Scandal $94 million for a job that actually costs $44 million

Credit Mobilier Scandal Discovered they gave stock to representatives of both parties Several cousins of President Grant, and as many as 30 other officials

GILDED Politics Ending the Spoils system Other reform Rutherford B. Hayes bucks the trend James A. Garfield gets shot July 2, 1881, a mentally unstable lawyer shot Garfield, public later learned this man was passed over for a job Garfield died three months later Murder causes a public outcry against the spoil system Pendleton Civil Service Act Other reform RR’s were overcharging farmers Interstate Commerce Commission Standardized shipping rates

Economic Depression, 1893 Millions of workers lost their jobs had wages cut Laissez-faire policies government offered no help Coxey’s Army 1894- Jacob S. Coxey called on unemployed workers to march on the nation’s capital Many small “armies” started out on the protest march, only Coxey’s army reached Washington

Birth of Populism Topic 2.4

American Farmers struggled against two forces Nature and the economy!

American Farmers Found themselves in increasingly dangerous and even hopeless positions Competition from abroad increased Crop prices went into a prolonged decline

Financial Panic Nationwide economic depression. As the economy worsens, people rush to banks to withdraw money. Banks then call in loans in order to remain afloat. Many of these loans are for family farms under the Homestead Act

Tariffs To protect farmers, Congress enacts tariffs on foreign crops. Many countries enact tariffs of their own, driving down demand (and the overall price) for American crops worldwide

The Money Issue – Inflation vs. Deflation Inflation is an increase in the money supply, and decreases the value of money. (value of every dollar drops) Inflation helps debtors and sellers (Farmers). Deflation is a decrease in the money supply, and increases the value of money. Deflation helps lenders (Bankers).

To help prevent inflation and stabilize the economy congress put the nation on the gold standard. Reduce the amount of money in circulation (decreasing money supply) Money supply was limited by the amount of gold held by the government

Gold Standard-1873 This pleases financially conservative (Republican) “Gold Bugs”, and angers the “Silverites” (farmers, miners, debtors)

Farmers Fight (back)! Droughts, Floods, Blizzards, Panics, Tariffs, Deflation and the Gold Standard all hurt Farmers In late 1800’s farmers used improvements in communication and transportation to form powerful protest groups

The Grange – 1867 Oliver H. Formed to help farmers set up cooperatives Farmers bought goods in large quantities at low prices Also pressured state legislators to regulate businesses on which farmers depended

Farmers Alliances Launched attacks on monopolies Such at those that controlled RR Farmers Alliance in the south formed in Texas Called for actions that many farmers could support Federal regulation of railroads More money in circulation Creation of state departments of agriculture Antitrust laws

“Raise less corn and more hell!” Farmers Alliances Farmers Alliances held special importance for women -Served as officers and won support for women's political rights “Raise less corn and more hell!” Mary Elizabeth Lease- Leading speaker and educator for farmers Alliance groups

The Populists 1. Increased circulation of money The farmer’s movement culminates in the formation of the Populist Party. Platform 1. Increased circulation of money 2. Unlimited mining of silver 3. Progressive income tax 4. Government ownership of communication and transportation systems 5. 8 hour work day

“Cross of Gold” William Jennings Bryan Incredibly popular speech Picture shows William Jennings Bryan holding crown of thorns and other biblical images that he used in his famous speech Belief in the free and unlimited coinage of silver to boost farm prices William Jennings Bryan

“Having behind us the producing masses of this nation and the world, supported by the commercial interests, the laboring interests and the toilers everywhere, we will answer their demand for a gold standard by saying to them: You shall not press down upon the brow of labor this crown of thorns, you shall not crucify mankind upon a cross of gold.”

Election of 1896 Democrats nominate William Jennings Bryan for President-former silverite Republicans ran William McKinley Bryan barnstorms the country campaigning for president and delivering speeches.

Election of 1896 Bryan carries Southern and Western states, but loses more heavily populated Eastern industrial centers. Bryan loses the election and the Populist movement declines in the coming years, but their effect continues as Populists join the Progressive Movement.