The Gilded Age & Corruption Essential Question: How did economic growth impact NC and the US during the Gilded Age?

First some background/review to US Politics and Business: The “Politics of Equilibrium” US Politics dominated by a Two-Party system: Democrats & Republicans Intense voter loyalty to each of these parties Well-Defined Voting Blocs Democratic Bloc: White southerners (preservation of white supremacy), Catholics, Recent immigrants (esp. Jews), Urban working poor (pro-labor), Most farmers Republican Bloc: Northern whites (pro-business), African Americans, Northern Protestants, Old WASPs (support for anti-immigrant laws), Most of the middle class Laissez Faire Federal Govt: From 1870-1900 Govt. did very little domestically Main duties of the federal govt.: Deliver the mail, Maintain a national military, Collect taxes & tariffs, Conduct a foreign policy The Presidency a Symbolic Office: Party Bosses Ruled, Presidents should avoid offending any groups in their party, and President gave out Federal Jobs (think Jackson and Spoils System)

3 Main Factors of Corruption Federal: think of the President Local: think of cities and what were called Political Machines Corporate: think of the Robber Barons – Rockefeller, Carnegie, J.P. Morgan, and Biltmore

Federal Government & The Presidency Credit Mobilier & Federal government: paying more for something than what it really costs Union Pacific employee Thomas Durant get into railroad building business gains government contract to build transcontinental railroad giving an inflated estimate his is only bid because of unscrupulous actions Pays construction company lot less and profits the rest 1872 - President Grant's Vice-President and several Congressmen received bribes from Credit Mobilier, the construction company building the Union Pacific Railroad, to fraudulently bill the government.

Federal Government & The Presidency The Presidency & Patronage (Spoils System): Patronage: give government jobs to people that helped you get elected People usually not qualified to do the work 7 these individuals used jobs for personal gain Pendleton Civil Service Reform Act changed this by making people pass a Civil Service Exam

Local-City Corruption – Political Machines Organized group that controlled activities of a political party in a city by taking advantage of the needs of the immigrants and urban poor. Ensured voter loyalty by providing jobs and social services to immigrants’ most pressing problems Jobs, housing, healthcare, licenses Structure of Political Machines: City Boss: typically but not always, a mayor Controlled jobs, business licenses, and influenced the court systems Ward Boss and then Precinct Captains: 1st or 2nd generation immigrants, helped new immigrants with jobs, housing, and naturalization in exchange for votes

Political Machine Corruption – Graft & Scandal Voter Fraud: use of fake names, multiple votes, using pets’ names to ensure a political victory at the ballot Graft: (Bribes & Kick Backs) the illegal use of political influence for personal gain Bribe: official takes money from a citizen and then ensures citizen will get what they want Kick Back: typical example is in construction Elected official guarantees company gets the job at an inflated price, the difference goes into official’s pocket

Political Machine Example Boss Tweed – William M. Tweed: head of famous Tammany Hall, New York City’s powerful Democratic political machine He was a bookkeeper & volunteer firemen Worked his way up in political machine Plundered over $30 million 19 century money from NYC

Corporate Corruption – Robber Barons Companies develop from small businesses into corporations and then into Trusts Trusts: a group of independent organizations formed to limit competition by controlling the production and distribution of a product or service. Also: Corporate Trust acts as a financial manger for the task of handling the corporation’s financial assets. Robber Baron practice: build up multiple companies doing same thing, move all money into one of the companies and then file bankruptcy in the others