The Politics of the Gilded Age

"What is the chief end of man?--to get rich. In what way?-- honestly if we can; dishonestly if we must." -- Mark Twain-1871

The Election of 1868 n Republicans - nominate Ulysses S. Grant

n Grant promises continued Military Reconstruction. n Campaigned by waving the "Bloody Shirt" - vote how you shot

n Democrats - nominate Horatio Seymour

n Policy of Repudiation - redemption of Bonds at highest possible level. n So-called "Ohio Idea" n Seymour backs eastern banker’s gold plan.

Seymour joining hands with the Irish vote and the Confederate vote to prevent the Negro from reaching the ballot box.

n 500,000 Freedmen vote for Grant. n Grant wins by 300,000 votes

Grant Administration Grant Administration n called the "Era of Good Stealings" n Democrats locked out of political trough

n Business and political "machines" gain spoils n Period of graft, corruption, and scandal

The Scandals

Black Friday - Sept. 24, 1869 n "Jubilee Jim" Fisk (the Brass) and Jay Gould (the Brains) corner the gold market after promise from Grant to keep Treasury from selling gold reserves. Jay Gould

n Panic buying drives up prices. n Treasury releases reserves - prices plummet - many are bankrupt. n Grant exonerated of wrong-doing.

Tweed Ring Scandals n "Boss" William Marcy Tweed of Tammany Hall in NYC n Used graft and political power to extort profits from political position.

n NY Times published reports of scandals, n Cartoonist Thomas Nast attacked Tweed

Let Us Prey

The Tammany Tiger Loose - What are you going to do about it?

“Whispering Sammy” Tilden n Samuel J. Tilden prosecuted Tweed on corruption charges n Boss Tweed dies in jail

Credit Mobilier Scandal n Railroad construction company of made exorbitant profits by overcharging in the construction of the Union Pacific RR.

n Used bribery and kickbacks to Congress.

Whiskey Ring Scandal n Whiskey producers cheated the government out of excise taxes and paid kickbacks to controllers and tax collectors.

n Grants personal secretary is involved - gets pardon

" honest citizens" to rise up and "sweep from power the men who prostitute the name of an honored party to selfish interests."

Military Ring Scandal n Secretary of War Belknap involved in profit making from selling the privilege of disbursing shoddy goods to Indians.

n Grant accepts Belknaps resignation "with regret" n Scandals lead to calls for civil service reforms

Election of 1872 n Liberal Republican "Revolt" n Republican party splits over "Anti-Grantism"

n Formation of Liberal Republican Party - leads to nomination of Horace Greeley liberal editor of NY Tribune. n Democrats - endorse Greeley after his call for reuniting north and south.

n Republican Party – re-nominates Grant. n After much mudslinging Grant wins electoral votes

n The election leads to minor civil service reforms and a general amnesty for most southerners. n Grants second term marred by economic crisis.

IV. The Panic of 1873 n Overheating and extension of economy causes down cycle beginning in 1873.

n Bank panic leads to failure of Jay Cooke and Co. banking n Collapse leads to 15,000 businesses failing.

n Currency controversy heats up into major issue

A. Greenback Controversy n Process of removing paper "Greenbacks" from circulation leads to controversy between

Currency Controversy

n Supreme Court ruled the Civil War Tender Act unconstitutional n Set stage to continue withdrawing inflated Civil War paper money.

n Grant adds two seats to Supreme Court (to 9 Justices) who vote to repeal earlier decision and keep Greenbacks in circulation.

n Grant persuaded by Hard Money people to veto a bill to expand the money supply.

n Resumption Act passed - pledges government to withdraw more Greenbacks and to buy all Greenbacks back for gold by "Redemption Day" in 1879.

B. Silver Issue n Controversy over gold coins vs. silver coins n Early 1870's - US Treasury sets rate of exchange for silver at 1/16 the price of gold.

n This is below "market" value. Miners slow down extraction and sale of silver.

"Crime of 1873" n Treasury stops offering silver dollars. n New silver deposits found - price of silver drops

n Call for new silver minting - return to "dollar of our Daddies"

Grants monetary policy: n Decreases the money supply n Brings inflation under control

n Increases the governments rating level n Bring Greenbacks back to face value

n Worsens the depression begun with the Panic of 1873

Election of 1874 n Democratic House is elected.

n Leads to the Bland-Allison Act of instructing the Treasury to buy and mint $2- 4 million a month of silver. n Greenback - Labor Party formed in 1878.

Paradox of Politics n Major parties agreed on most major issues Yet n Each contest is hard fought and close.

n 80% voter turnout, straight party ticket voting.

Political Differences n Two Major Parties

REPUBLICANS n Protestant / Puritanism n Personal Morality n Northeast / Midwest n Freedmen / GAR

DEMOCRATS n Catholic / Lutheran n Tolerance of Difference n Resisted Government control of morals n Old South n Industrial cities / Labor

Within the Republican Party

Stalwarts n "Lord Roscoe" Conkling n Senator from New York n embraced jobs for votes

Half - Breeds n James G. Blaine n Congressman from Maine n lip-service to reform

Conflicts led to deadlock in Republican Party

Election of 1876 n Grant considers Third Term - is "reminded" by Congressional Resolution of the tradition of 2 terms.

Puck Wants a Strong Man at the Head of Government-- But Not This Kind

The Political ‘Army of Salvation’

Republicans n Stalwarts and Half- breeds reach compromise, nominate Rutherford B. Hayes - n "The Great Unknown" former Governor of Ohio

Democrats n nominate "Whispering Sammy" n Samuel J. Tilden - NY attorney who bagged Boss Tweed.

n Campaigns against Republican Scandals and for Civil Service Reform.

n Tilden wins 184 out of 185 needed electoral votes 4,034,311 4,288,546 Hayes Tilden

n 20 electoral votes are contested, four southern states send dual sets of elector votes.

n Constitution states that the President of the Senate should open the votes - no mention of who counts.

n President of the Senate (Vice President) = Republican n Speaker of the House = Democrat

Compromise of n Passage of Electoral Act of 1877 = sets up electoral commission 15 men - 5 each from House, Senate and Supreme Court.

n Republicans outnumber Democrats 8-7

n Republican Hayes is President n South to lose the last remaining Federal Troops - Reconstruction Ends

IV. Hayes Presidency ( ) n Economic and Labor problems n Immigrant problems - Kearneyites in California - Anti- Chinese.

n Hayes vetoes Anti- Chinese immigration law, bill passes in 1882 during Arthur Administration

V. Election of 1880 n Republican Party = standoff between Stalwarts and Half-Breeds leads to "Dark Horse" candidate

n James A. Garfield gets the nomination n Chester A. Arthur (Stalwart) as Vice President

n Democrats nominate Winfield S. Hancock - Civil War General wounded at Gettysburg.

n Campaign is about character not issues - n Garfield wins by 39,000 votes to 155 electoral votes

President Garfield

n Stalwarts and Half-Breeds fight over spoils n Half-breed Blaine becomes Secretary of State - seeks to shut out the Stalwarts.

n Stalwart office seeker Charles Guiteau assassinates President Garfield who dies Sept. 19, “An office or your life!”

"I am a Stalwart of the Stalwarts! I did it and I want to be arrested! Arthur is President now!"

n Chester A. Arthur becomes president - nation shocked by "an office - or your life!"

VI. Arthur Presidency ( ) n President Arthur takes up cause of civil service reform.

n Conklingites seek offices and favors - get cold shoulder from Arthur.

n Pendleton Act of prohibited financial assessments on office holders, established merit system based on aptitude. n Set up Civil Service Commission, created classified positions.

n Pendleton Act sent politicians to Big Business for funds.

VII. Election of 1884 n Repulicans nominate James G. Blaine - n the Half-Breed, tainted by scandal - including the "Mulligan Letters" proving corruption - "Burn this letter"

n Scandal caused some Republicans to jump ship - called Mugwumps = "holier than thou"

n Democrats nominate Grover Cleveland - said to be clean - called "Grover the Good" n Republicans discovered he had fathered an illegitimate son.

n Election is all about character, not about issues n D="Burn, burn, burn this letter!" n R="Ma, Ma, wheres my Pa? n R="Rum, Romanism, Rebellion!"

n Cleveland wins First Democrat in White House since Buchanan.

VIII. Cleveland Presidency ( ) n Cleveland is unbending supporter of Laissez-Faire - government out of business. n weak reformer

n fired republicans hired democrats - 2/3 of Federal employees. n fought against pensions for dubious veterans

n fought to reduce tariffs, reduce government surplus n sought to reduce monopolies

IX. Election of n Democrats re-nominate Cleveland despite insistence of making Tariff an issue.

n Republicans nominate Benjamin Harrison - grandson of "Tippecanoe" William Henry Harrison.

n British Minister Sir Lionel Sackville-West writes that a vote for Cleveland is a vote for England and free trade.

n Republicans put fear of low tariffs on Big Business - raise major war chest n Cleveland won popular vote - lost election