1. Corruption Plagues the Nation
Topic 2.3

2. Political Corruption Ulysses S. Grant
Popular war hero but a disappointing president
Scandal!!
Gave high level posts to untrustworthy friends

3. Spoils System
Elected officials appointed friends and supporters, regardless of their qualifications
Ensured a loyal group of supporters in future elections
Led to corruption when jobs were used for personal profit

4. Rutherford B. Hayes
After his election in 1877, Hayes refused to use the patronage system. Began to reform the civil service or government’s non elected workers
Appointed qualified people, fired employees who were not needed
Attack strengthened the government but helped weaken the Republicans

5. James A. Garfield In 1880 election, James A. Garfield won
July 2, 1881, Charles Guiteau, a mentally unstable lawyer, shot Garfield
Died 3 month later
Caused a public outcry against the spoils system
Chester Arthur became President

6. Pendleton Civil Service Act
Passed in 1883-Chester Arthur
Created a civil service commission
Classified government jobs and tested applicants’ fitness
Federal employees could not be required to contribute to campaign funds
Could not be fired for political reason

7. Credit Mobilier Scandal
Railroad consulting/construction company
Formed/owned, by wealthy investors including a few members of Congress
Used their congressional influence to help CM obtain federal railroad construction contracts
Then CM would use sub-standard materials, immigrant labor, and any measure to cut costs, while all the while over-charging the government.
Credit Mobilier Scandal
$94 million for a job that actually costs $44 million

8. Credit Mobilier Scandal
Discovered they gave stock to representatives of both parties
Several cousins of President Grant, and as many as 30 other officials

9. GILDED Politics Ending the Spoils system Other reform
Rutherford B. Hayes bucks the trend
James A. Garfield gets shot
July 2, 1881, a mentally unstable lawyer shot Garfield, public later learned this man was passed over for a job
Garfield died three months later
Murder causes a public outcry against the spoil system
Pendleton Civil Service Act
Other reform
RR’s were overcharging farmers
Interstate Commerce Commission
Standardized shipping rates

10. Economic Depression, 1893
Millions of workers lost their jobs had wages cut
Laissez-faire policies
government offered no help
Coxey’s Army
1894- Jacob S. Coxey called on unemployed workers to march on the nation’s capital
Many small “armies” started out on the protest march, only Coxey’s army reached Washington

11. Birth of Populism Topic 2.4

12. American Farmers
struggled against two forces Nature and the economy!

13. American Farmers
Found themselves in increasingly dangerous and even hopeless positions
Competition from abroad increased
Crop prices went into a prolonged decline

14. Financial Panic Nationwide economic depression.
As the economy worsens, people rush to banks to withdraw money. Banks then call in loans in order to remain afloat.
Many of these loans are for family farms under the Homestead Act

15. Tariffs
To protect farmers, Congress enacts tariffs on foreign crops. Many countries enact tariffs of their own, driving down demand (and the overall price) for American crops worldwide

16. The Money Issue – Inflation vs. Deflation
Inflation is an increase in the money supply, and decreases the value of money. (value of every dollar drops) Inflation helps debtors and sellers (Farmers).
Deflation is a decrease in the money supply, and increases the value of money. Deflation helps lenders (Bankers).

17. To help prevent inflation
and stabilize the economy congress put the nation on the gold standard.
Reduce the amount of money in circulation (decreasing money supply)
Money supply was limited by the amount of gold held by the government

18. Gold Standard-1873
This pleases financially conservative (Republican) “Gold Bugs”, and angers the “Silverites” (farmers, miners, debtors)

19. Farmers Fight (back)!
Droughts, Floods, Blizzards, Panics, Tariffs, Deflation and the Gold Standard all hurt Farmers
In late 1800’s farmers used improvements in communication and transportation to form powerful protest groups

20. The Grange – 1867 Oliver H. Formed to help farmers set up cooperatives
Farmers bought goods in large quantities at low prices
Also pressured state legislators to regulate businesses on which farmers depended

21. Farmers Alliances Launched attacks on monopolies
Such at those that controlled RR
Farmers Alliance in the south formed in Texas
Called for actions that many farmers could support
Federal regulation of railroads
More money in circulation
Creation of state departments of agriculture
Antitrust laws

22. “Raise less corn and more hell!”
Farmers Alliances
Farmers Alliances held special importance for women
-Served as officers and won support for women's political rights
“Raise less corn and more hell!”
Mary Elizabeth Lease- Leading speaker and educator for farmers Alliance groups

23. The Populists 1. Increased circulation of money
The farmer’s movement culminates in the formation of the Populist Party.
Platform
1. Increased circulation of money
2. Unlimited mining of silver
3. Progressive income tax
4. Government ownership of communication and transportation systems
5. 8 hour work day

24. “Cross of Gold” William Jennings Bryan Incredibly popular speech
Picture shows William Jennings Bryan holding crown of thorns and other biblical images that he used in his famous speech
Belief in the free and unlimited coinage of silver to boost farm prices
William Jennings Bryan

25. “Having behind us the producing masses of this nation and the world, supported by the commercial interests, the laboring interests and the toilers everywhere, we will answer their demand for a gold standard by saying to them: You shall not press down upon the brow of labor this crown of thorns, you shall not crucify mankind upon a cross of gold.”

26. Election of 1896
Democrats nominate William Jennings Bryan for President-former silverite
Republicans ran William McKinley
Bryan barnstorms the country campaigning for president and delivering speeches.

27. Election of 1896
Bryan carries Southern and Western states, but loses more heavily populated Eastern industrial centers.
Bryan loses the election and the Populist movement declines in the coming years, but their effect continues as Populists join the Progressive Movement.