Politics in the Gilded Age  Rise of Political Machines and how immigrants were important for success of political machines.  Corruption within the political machines.  What led to the collapse of one of these machines?  Corruption in the national government.

Political Machines Challenges to City Government Rise in population Need for public services Needed expansion and construction city government wasn’t very effective

Political Machines Political Machines- well organized political organizations that dominate city government Political Bosses- managed the machines -Controlled activities of political party -Offered services to business leaders in exchange for financial and political support -Control over who gets municipal jobs and business licenses -Controlled precincts: Precinct captains offered jobs to people in exchange for their votes.

Political Machines Tammany Hall- Democratic machine in New York used immigrants for support assisted in finding them housing, jobs and to get naturalization. persuaded them who to vote for failed to offer long-term help to immigrants

Corruption in Politics Election Fraud- – For machines to work they had to win elections – Voters would change identity and vote many times Graft- (skimming) – Receive money or political power through illegal or dishonest methods Kickbacks- (bribes) -Business leaders bribed politicians to get contracted a public service job

Political Machines The Tweed Ring- – William Marcy Tweed controlled Tammany Hall – Control over contracts for public projects and government jobs – Used power to gain kick backs and bribes – Tweed ring collected over $200 million in graft Thomas Nast- -Political cartoonist -Revealed corruption of Tweed ring and Tammany Hall -Aroused public outrage against Tammany Hall - Tweed indicted for fraud and extortion

Political Machines James Pendergast - KC boss; found jobs for immigrants and African Americans in order to get their vote Alexander Shepherd -Spent $20 million for public works. -Gave jobs to loyal voters -Machines provide services for city -However corruption was becoming a national issue

Scandal in the White House Desire for money and power affected national politics -Spoils system- government jobs were given based on political loyalty (Policy throughout 1800s) Ulysses S. Grant -Black Friday -Brother-in-law tried to corner market on gold -Many investors lost money -Grant was asked to be in on scheme but he declined -Credit Mobilier- scandal VP Colfax involved in -overcharged Union Pacific RR - excess profits went to Credit Mobilier stockholders- members of Congress and Schuyler Colfax

Scandal in the White House Republican party splits (1872) - Liberal Republicans- criticized Grant’s spoils system - Horace Greely- ran against Grant - Grant war hero image wins him the election - corruption continues during Grant’ second term - Whiskey Ring- treasury dep’t accepted bribes from whiskey distillers and distributors to lower their taxes

The Gilded Age Gilded Age- phrase coined by Mark Twain Glittering exterior of the age but hidden underneath was a corrupt political core and a growing gap between the few rich and the many poor Criticized “Victorian Culture” of upper and middle class as “money lustful” Many push for reform

Review How did political machines emerge in American cities? What corrupt activities were involved? What led to collapse of the Tweed Ring? What system caused problems in Grant’s administration?

Struggle for Reform 1876 Election- spoils system was major issue – Democratic candidate- Samuel J. Tilden- he had helped break up Tweed Ring – Republican candidate- Rutherford B Hayes- a supporter of civil service reform – Hayes won but his reform efforts upset some Republicans. – Republicans split: Stalwarts- opposed reform Half-Breeds- believe jobs should be gained on merit.

Struggle for Reform 1880 Election – Hayes did not run for re-election – James A Garfield (Half-Breed) wins and Chester A. Arthur (Stalwart) is his Vice-President. – Garfield assassinated by Charles Guiteau – Arthur turns into a reformer once he became president

Struggle for Reform Pendleton Civil Service Act (1883) – Established the Civil Service Commission (CSC) - administered competitive exams for government jobs. - idea that federal jobs below policy making level should be filled based on merit.

Struggle for Reform 1884 Election – Employees no longer source of campaign contributions – Politicians turned to wealthy businessmen, strengthen alliance between government and big business – Stalwarts didn’t support Arthur Instead, nominated James Blaine (half-breed) – Republican reformers opposed him, not a real reformer – Republican reformers, called mugwumps (“big Chiefs”) supported the Democratic candidate: Grover Cleveland Grover Cleveland had fought Tammany Hall -Cleveland doubled the number of jobs requiring merit exams.

Struggle for Reform Election of 1888 – Stalwarts angered by Cleveland’s reforms – Benjamin Harrison ran against Cleveland and won. Campaign financed by big business Harrison signed an Act to raise tariffs that protected domestic industry President Harrison and a Republican Congress filled government jobs based on rewards not merit.  Reform efforts still struggling but the spirit of reform is not dead.

Bingo Review Political machineTammany Hall GraftUlysses S. Grant William Marcy TweedHorace Greely Thomas NastCharles Guiteau James Pendergast Spoils system Gilded Age Stalwarts Chester A. Arthur Pendleton Civil Service Act Grover Cleveland Benjamin Harrison

The Populist Movement The Farmer’s Plight Prices of crops lowering Produced more but other nations did the same Supply exceeded demand and prices dropped Farm costs rising- -price of machinery -had to borrow money Railroad problems- RR’s took advantage and charged excessive prices Suppliers charge high interest Banks foreclose Farmers caught in a cycle of credit and debt

The Populist Movement Farmers Organize- – The Grange- original purpose was a social outlet for isolated farmers founded by Oliver Hudson Kelley (1867) taught members how to form cooperatives - (farmers combine resources to buy and sell goods). – Main objective- regulate railroad freight and storage rates “Granger Laws”- some states created commissions to standardize RR rates

The Populist Movement Grange Movement (continued) Railroads fight back Munn vs. Illinois (1877) - RR challenges Granger laws, court upholds state’s rights to regulate RR for the benefit of the people Grangers help establish idea that federal government has the right to regulate private industry to serve the public interest Interstate Commerce Act (1887) Gave the federal government the right to supervise railroad activities. Interstate Commerce Commission (ICC)- monitored railroad – Railroads resistant

The Populist Movement The Alliance Movement Like the Grange, organized cooperatives Offered low-cost insurance to farmers Lobbied for stricter bank regulation, government ownership of railroads and a graduated income tax. Mary Elizabeth Lease was one of their most effective speakers. - Consisted of 3 organizations: National Farmer’s Alliance All-white Southern Alliance Colored Farmer’s Alliance – Alliance failed to form one single organization – common goals but Alliance remained segregated - Many African Americans discouraged from joining

The Populist Movement The Money problem Farmers favored printing more greenbacks Believed increasing amount of money circulation would allow them to charge more for goods and help them pay off debts Before civil war- greenbacks backed by silver and gold Congress- stopped coining silver and converted to a gold standard Gold standard- money in circulation limited by amount of gold in treasury

The Money Issue Congress pass the Sherman Silver Purchase Act (1890) Required government to buy silver and mint into coins. Gold StandardSilver and gold WhoBankers and businessmenFarmers What they wantedLess money in circulationMore money in circulation WhyLoans paid back with stable money Products sold at high prices EffectsDeflation: Prices fall Value of money increases Fewer people have money Inflation: Prices rise Value of money decreases More people have money

The Populist Movement The Populist Party (1892) – Alliance leaders met with labor leaders and other reformers – Formed the People’s party (Populist Party) Called for : A graduated income tax Bank regulation Government ownership of railroads unlimited coinage of silver Restrictions on immigration Shorter workdays Voting reforms

The Populist Movement Election of 1892 – Populists nominate James B. Weaver Won 10% of vote – Republicans nominate Benjamin Harrison – Democrats nominate Grover Cleveland Cleveland won several populist party members elected to Congress, populist ideas become ideas of Democratic party Panic of 1893 – A leading railroad company failed – RR expanded faster than markets – Stock market prices plunged – unemployment

The Populist Movement Panic of 1893 – Cleveland blamed the Sherman Silver Purchase Act for depression New discoveries of silver decreased its value People rushed to exchange notes for gold putting strain on the Treasury Congress repealed Sherman Silver Purchase Act (1893)

The Populist Movement Election of 1896 – Money supply still under debate – Silver became main issue of election – Republican candidate- William McKinley (gold standard) – Democratic party split and reject Cleveland – Democrats nominate William Jennings Bryan (silver) Populists support Bryan -“Cross of Gold”- Bryan’s famous speech

The Populist Movement Election of 1896 and End of Populism – Business leaders terrified of Populism, contribute millions of dollars to McKinley’s campaign – McKinley won election Silver issue too weak, didn’t attract support from urban workers and immigrants Election defeat and improvements in farmer’s economic conditions ended the Populist movement Populism did lay groundwork for future reform Mary Elizabeth Lease- “the seeds we sowed in Kansas did not fall on barren ground”