America: Pathways to the Present Chapter 8 Politics, Immigration, and Urban Life (1870–1915) Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River, New Jersey. All rights reserved.

The Business of Politics Chapter 15, Section 1 The Gilded Age suggests that there was a glittering layer of prosperity that covered the poverty and corruption that existed in much of society.

Scandal under Grant Black Friday –Jay Gould and James Fisk try to use the government to artificially raise the price of gold on the New York Stock Exchange, then sell the gold at a huge profit. –Causes a financial panic in 1869.

Scandal under Grant Whiskey Ring a group of mostly Republican politicians were able to siphon off millions of dollars in federal taxes on liquorRepublicanliquor the scheme involved an extensive network of bribes involving tax collectors, storekeepers, and others.bribes

Scandal under Grant Credit Mobilier Scandal –Company overcharged government for the building of railroads –Bribed government officials, offering stock at a lower price that the market price. –Stole millions from the American public. –Garfield was one of those who accepted bribes.

The Spoils System Under the Spoils System, candidates for political office would offer potential jobs in exchange for $upport/votes.

Arthur Reforms the Civil Service After Garfield’s assassination, President Arthur was able get congressional support for the Pendleton Civil Service Act. This act classified government jobs and tested applicants.

Arthur Reforms the Civil Service

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The Business of Politics In the late 1800’s businesses operated without much government regulation. This is known as laissez-faire If regulation benefited business—business supported regulation.

Regulating Railroads The Granger Movement: –Group of farmers that collectively tried to fight abuse from the railroads. –Railroads would charge different rates for different customers, the farmers often paying more.

Regulating Railroads –Was successful in regulating the railroads and grain warehousesregulating – Granger Laws : series of laws passed to regulate railroad freight rates and rebates and to address long- and short-haul discrimination and other railroad abuses against farmers.

Regulating Railroads In 1887, Congress passed the Interstate Commerce Act Did not have the power to set railroad rates, but to “regulate” Often overruled in the Supreme Court.

Populist Party 1892 Set up by farmers out West who had similar goals, The People’s Party Wanted the Government to take over the railroads. Had impact on elections of the time, but quickly faded.

Dawes Act of 1887 Each Indian family was granted 160 Acre Farm This was out west, the land was poor farming land, and 160 acres was not enough to support a family. The Governments attempt to assimilate Indians into American culture. –Set up schools, missions to convert Indians to Christianity.

Changed dress, customs of Indians to be like mainstream American Culture.

Gospel of Wealth Jacob Riis Settlement Houses