IV Politics of the Gilded Age: Essential Question: Why was civil service reform needed? Vocabulary: populism greenbacks inflation graduated income tax deflation cooperatives

Civil Service Reforms Between “Stalwarts” (loyalty)(pro patronage) Rutherford B. Hayes became president in 1877 Tried to end patronage by firing officials who were given jobs as a reward for their party support Replaced them with reformers, which split the Republican Party Between “Stalwarts” (loyalty)(pro patronage) “Halfbreeds” (backed reform) No reforms were passed

Civil Service Reforms 1880 Republicans James Garfield, a “Halfbreed” and Chester A. Arthur “Stalwart” won election Garfield did not believe in the spoils system “spoils of office” the government jobs handed out after a victory. Anyone could petition for a job. After repeated rejections for a job Charles Guiteau shot Garfield less than 4 months into presidency. Thought he would have a better chance at a job under VP Chester A. Arthur _ _

Civil Service Reforms Garfield’s assassination highlighted the need for reforms Many Americans believed patronage made government corrupt and ineffective 1883 Congress passed the Pendleton Act Required competitive exams to fill jobs. Marked the beginning of professional Civil Service Governments jobs are given out by qualifications not political affiliation Only 10% of jobs were civil service in 1883

Why was civil service reform needed? How did they accomplish this?

The Election of 1884 Democrats nominated Grover Cleveland governor of New York Had a reputation for honesty Was a reformer Republicans nominated James G. Blaine Former Speaker of the House Rumored to have accepted bribes Some Republicans so unhappy with Blaine they supported Cleveland. Called Mugwumps

The Election of 1884 Cleveland narrowly won Some supporters expected to be rewarded Others wanted civil service increased Cleveland choose a middle road Economic problems replaced patronage reform debate

Interstate Commerce Act Power of large corporations concerned Americans Large corporations negotiated rebates and lower rates, while small business owners and farmers paid higher rates. States began passing laws regulating railroad rates 1886 Supreme Court ruled on the railroads in Wabash, St. Louis and Pacific Railway v Illinois Only the federal government could regulate interstate commerce pressure forced Congress to act 1887 Cleveland signed the Interstate commerce Act First federal law to regulate commerce

Election of 1884 Tariffs another economic issue Democrats thought Congress should cut tariffs Raised prices of imported goods High tariffs forced nations to respond in kind Difficult for farmers to export surpluses December 1887 Cleveland proposed lowering tariffs Democrat house passed/ Republican Senate rejected

Republicans Gain Power 1888 Benjamin Harrison received large contributions from businesses They benefitted from high tariffs Cleveland and Democrats campaigned against high tariffs Harrison lost the popular vote, but won the electoral vote Republicans gained control of the White House

Republicans Regain Power 1890 Representative William McKinley pushed a bill that Cut tariffs Cut some taxes Increased rates on some other goods McKinley Tariff was meant to protect American industry but caused a steep rise in cost of goods

Sherman Anti-Trust Act To curb power of large business combination known as trusts 1890 Congress passes the Sherman Anti-trust Act Prohibited any “combination… or conspiracy to restrain trade or commerce among several states”

Politics in Washington What actions did Congress take to reform the civil service? Why were these steps necessary?

Politics in Washington Many Americans thought that the patronage system of providing government jobs to political supporters encouraged inefficiency and dishonesty in government. After president Garfield’s assassination, Congress passed the Pendleton Act, which required a percentage of government jobs be awarded on the basis of scores on written exams. The percentage of government jobs filled through this system grew over time.

Unrest in Rural America Guiding Question: What kind of problems did farmers have?

Populism Populism was a movement to increase farmer’s political power Populism – a political movement founded in the 1890s representing mainly farmers that favored free coinage of silver, government control of railroads and other large industries,graduated income tax https://www.youtube.com/watch?v =bdKjmNeVgKI

Populism New technology helped produce more crops Increased supply caused prices to fall High tariffs made it harder to sell goods overseas Mortgages and shipping costs were difficulties for farmers

The Money Supply Some farmers thought adjusting the money supply would help During Civil War the government increased the money supply Printed greenbacks (paper currency) Could not be exchanged for silver or gold Increased money supply without increase of goods caused inflation

The Money Supply Greenbacks – a unit of paper currency first issued by the federal government during the civil war Currency – paper money used as a medium of exchange Inflation – an ongoing increase in prices and decreases in the value of money

The Money Supply After Civil War three types of currency Greenbacks Gold and silver coins National bank notes backed by the federal government bonds Bonds – a note issued by the government that promises to pay off a loan with interest

The Money Supply To get inflation under control government stopped greenbacks Paying off its bonds 1873 Congress decided to stop making silver coins Money supply became insufficient for growing economy and caused deflation Deflation – an ongoing decrease in prices and an increase in the value of money

The Money Supply Deflation hit farmers really hard Sold crops for less Had to borrow money for new seed Money supply low, interest rates were up Rising interest made mortgages more expensive Farmers had to make mortgage payments

The Grange Take Actions Oliver H Kelly founded the Grange in 1867 1873 severe recession Farming income fell sharply Grangers forced states to regulate railroad and warehouse rates

Grange Takes Action Granger created organizations called cooperatives Cooperatives – a store where farmers buy products from each other, an enterprise owned and operated by those who use its services None of these strategies worked for farmers Strategy – a plan or method for achieving a goal

The Farmer’s Alliance Began in 1890 Had 1.5 to 3 million members Charles W Macune was the leader Organized large cooperatives called exchanges Exchanges failed because they over extended themselves Wholesalers, bankers and railroad owners made it difficult to stay in business Too small to affect world prices

Unrest in Rural America What measures did the nation take after the Civil War to improve its economic situation? What was the result?

Unrest in Rural America It stopped printing greenbacks, began repaying bonds, and stopped making coins out of silver. These measures resulted in deflation.

The Rise of Populism What were the goals of the People’s Party?

The Rise of Populism 1890 many people in the alliance were dissatisfied Became distrustful of both Republicans and Democrats Believed both parties favored industry and banks over farmers Midwest Alliance members wanted a new party Southern leaders did not want to weaken Democratic Party

The Rise of Populism Wanted Alliance member to make a list of demands Promise to vote for candidates who supported those demands 1892 1,000 delegates met in Omaha, Nebraska Formed the People’s Party Nominated James B. Weaver for president

The Rise of Populism Party’s platform Return to unlimited coinage Federal ownership of railroads Graduated income tax Graduated income tax – a tax based on net income of an individual or business and which taxes different income levels at different rates

The Rise of Populism Adopted proposals to appeal to labor 8 hour work day Immigration restrictions Populism had little appeal to urban voters They continued traditional party alliances Many workers continued to vote for Democrats Grover Cleveland becomes president (Democrat)

The Rise of Populism Why did Southern Alliance groups resist the idea of a national People’s Party?

The Rise of Populism They did not want a new national party to weaken the Democratic party’s influence in the South.

The Election of 1896 Why did the Populist’s support the Democratic candidates- William Jennings Bryan- in 1896?

The Election of 1896 People’s Party made free coinage of silver their focus Held their convention after the Republicans and the Democrats Believed the Republicans would endorse the gold standard Expected Democrats to nominate Cleveland who favored the gold standard Hoped pro-silver Democrats would choose Populists

The Election of 1896 Strategy failed Williams Jennings Bryan made a pro-silver speech Won democratic party nomination Faced a difficult choice Endorse Bryan and undermine their party Nominate own candidate and split the silver vote They chose Bryan

The Election of 1896 Republicans appealed to workers McKinley promised a “full dinner pail” Most business leaders supported the Republicans Thought unlimited silver coinage would ruin the country Employers warned workers if Bryan elected the business would fail and unemployment would rise further

The Election of 1896 McKinley’s had a reputation of Moderate on labor issues Tolerant toward ethnic groups Helped improve the Republican image with urban and immigrant workers McKinley won with a decisive victory

The Election of 1896 Populist party declined after the election Efforts to end hardships for farmers failed Efforts to regulated big business failed Long after party’s demise Graduated income tax Further government regulation of the economy were achieved

The Election of 1896 Why did the Republicans win the election of 1896?

The Election of 1896 They appealed to urban workers and business leaders, and promised economic improvements at a time of recession.