Post Panic of 1873 President Hayes cut the wages of railroad workers. They responded to this by initiating a strike.  Initially a good idea, the strike faltered and failed, bringing the faults of the labor movement to light. A multitude of immigrants flocked to the United States expecting a life of prosperity, but many were dismayed when they found none.  They either returned home or remained in America and faced extraordinary hardships. On the West Coast, the general public blamed the Chinese workers for the degeneration of wages and decline of the economy.  To control this, Congress passed the Chinese Exclusion Act in 1882, negating any further immigration of Chinese into America.

Fall of Garfield and Rise of Arthur Due to the fact that President Hayes was loathed by his own Republican Party, James A. Garfield was chosen to represent the Republican Party in the election of 1880.  His vice-president was Chester A. Arthur, a former Stalwart.  To run against Garfield, The Democrats selected Civil War hero, Winfield Scott.  Although Garfield emerged victorious in the election of 1880, he was assassinated soon after by Charles J. Guiteau at a Washington railroad station.  Guiteau, claiming to be a Stalwart, shot the president claiming that now that Chester Arthur was President, he would give the Conklingites all the good jobs. This incident forced the government into reforming the spoils system. President Arthur supported this change, shocking his critics.  The Pendleton Act of 1883 made it illegal for federal employees to aid in campaigns, and it established the Civil Service Commission to appointment federal jobs to people based on competitive examination.  It was intended to stop political corruption.  The civil-service reform forced politicians to look towards big-business leaders during campaigns for economic aid.

The Blaine-Cleveland Mudslingers of 1884 In the election of 1884, Republican candidate James G. Blaine to run against the Democratic candidate Grover Cleveland.  Being that Grover Cleveland was a very honest and respectable individual, he was a favorite in the election.  Cleveland won the election of 1884.

The Reign of "Old Grover" Cleveland and the Democratic Party, known as "the party of disunion,“ were constantly questioned on if they could be trusted to govern the Union. Cleveland replaced thousands of federal employees with Democrats. Cleveland summed up his political philosophy when he vetoed a bill in 1887 to provide seeds for drought-stricken Texas farmers, stating that the government should not support the people. The Grand Army of the Republic lobbied hundreds of unreasonable military pension bills through Congress, but most of them were vetoed by Cleveland.

Cleveland Clamors for Tariff Control The growing excess of revenue in the Treasury by way of the high tariff( made to raise revenues for the military during the Civil War) caused Cleveland to recommend lowering the tariff in order to provide lower prices to consumers.  The lesser tariff, introduced to Congress in 1887 and endorsed by Cleveland, tremendously hurt the nation's factories and the overall economy.  Cleveland lost support because of the tariff. Republicans selected Benjamin Harrison to represent them in the 1888 election.  During the election, the first major issue between the two parties had arisen:  tariffs.  Cleveland claimed the popular vote, but Harrison still won the election.

The Billion-Dollar Congress When the Democrats were prepared to halt all House business, the Speaker of the House, Thomas B. Reed, took command and intimidated the House to succumb to his imperious will.  The Billion-Dollar Congress, named for its lavish spending, gave pensions to Civil War veterans, augmented government purchases on silver, and passed the McKinley Tariff Act of 1890.  The McKinley Tariff Act raised tariffs yet again and brought more plights to farmers.  Farmers were forced to buy costly products from American manufacturers while selling their own products into the highly competitive world markets. The Tariff Act caused the Republican Party to lose public support and become discredited.  In the congressional elections of 1890, the Republicans lost their majority in Congress.

Moving to the Beat of Discontent The People's Party, referred to as the "Populists," were formed from frustrated farmers in the agricultural zones of the West and South.  The Populists demanded inflation through free and unlimited coinage of silver a graduated income tax government ownership of the railroads, telegraph, and telephone the direct election of U.S. senators a one-term limit on the presidency the adoption of the initiative and referendum to allow citizens to shape legislation more directly a shorter workday immigration restriction

Moving to the Beat of Discontent The Populists nominated General James B. Weaver for the presidential election of 1892. A succession of brutal worker strikes swept through the nation in 1892, . The party fell far short of winning the election.  One of the main reasons was that the party reached out to the black community.  Leaders, like Thomas Edward Watson, felt that a black man had every right to vote.  The Populist Party counted on many blacks votes from the South. Sadly, many Southern blacks were denied the right to vote due to literacy tests.  The Southern whites voted against the party due the party's equal rights views toward blacks.

Cleveland and Depression Grover Cleveland once again ran for the presidency in the election of 1892 and won, defeating the divided Populist Party and the discredited Republican Party. The panic of 1893 was the worst economic instance in the United States of the 19th Century.  Caused by overbuilding and over-speculation, labor disorders, and the enduring agricultural depression. The Treasury was required to issue legal tender notes for the silver that it purchased.  Owners of the paper currency would present it for gold, and by law the notes had to be reissued.  This process depleted the gold reserve in the Treasury to less than $100 million.  The Sherman Silver Purchase Act of 1890, created by the Benjamin Harrison administration, was set in place in order to increase the amount of silver in circulation. The considerably large amount of silver being put out caused Americans to believe that it would soon replace gold as the basis of currency.  Because of this, American people began to withdraw their assets in gold, depleting the Treasury's gold supply. This dramatic occurrence forced Cleveland to repeal the Sherman Silver Act Purchase in 1893. Cleveland turned to J.P. Morgan to lend $65 million in gold in order to increase the Treasury's reserve.  

Cleveland Breeds a Backlash The Wilson-Gorman Tariff of 1894 lowered tariffs and placed a 2% tax on incomes over $4,000.  The Supreme Court promptly ruled income taxes unconstitutional in 1895. The Wilson-Gorman Tariff resulted in the Democrats losing vital positions in Congress, giving the Republicans an advantage. Grant, Hayes, Garfield, Arthur, Harrison, and Cleveland were known as the "forgettable presidents."