1. Politics of the Gilded Age

2. Scenarios
You Decide: Ethics, Business, and Gold

3. Limited Government
Politics: superficial glitter of the new wealth; more show than substance
Laissez-faire economics and Social Darwinism Reading
Federal Courts narrowly interpreted the government’s power to regulate business
Elections entailed brass bands, flags, campaign buttons, picnics, free beer, and crowd-pleasing oratory; lacked real political issues

4. Politics of the Gilded Age
Republicans: Memories of Civil War by waving the “bloody shirt.” Pro-business economic program of high protective tariffs
Democrats: Argued for states’ rights and limiting powers of the federal government
Party Patronage: lacking a serious legislative agenda, winning elections became a game of providing government jobs to the party faithful
Ultimately, not a whole lot happened…

5. Presidents
1876 Rutherford B. Hayes: ended Reconstruction by withdrawing final federal troops from the South
1880 James Garfield: Interested in spoils and patronage more than reform; assassinated
Chester Arthur: Civil Service reform; based on qualifications not political connections
1884 Grover Cleveland: First Democrat elected since Buchanan in 1856; frugal and limited government and civil service system.
Interstate Commerce Act of 1887: regulate business
Dawes Act: Indian reform

6. Civil Service Reform
Pendleton Act of 1881: Created Civil Service Commission; applicants for classified federal jobs would be selected on merit not patronage
Politicians now depended less upon their party loyalties and more upon the rich to fund their campaigns
Which is worse?

7. Corruption in Government

8. Corruption Re-Cap
Why was corruption so widespread during the Gilded Age?
Rapid growth of population, economy, and cities prevent gov. from providing services
Gov. became too large to control
Clean government was not as important as ethnic and religious issues
Great inequality in wealth meant the rich could “buy” political power
What government jobs today require civil service tests?
Police, Fire Dept., Post Office
Some felt gov. had too much power
Secret Ballot
Cutting taxes and gov. jobs would decrease corruption
Some felt gov. had too little power
People could push around a weak gov. for special advantages

9. Money Issue Reading A need for more money in circulation
Debtors, farmers, and start-up businesses wanted more “easy” or “soft” money
Help them borrow money at lower interest rates and pay off their loans with inflated dollars
Panic of 1873: gold standard blamed for restricting money supply
More paper money and unlimited minting of silver coins

10. Money Issue
Bankers, creditors, investors, and established businesses stood for “sound” or “hard” money
Currency backed by gold stored in government vaults
Money would hold their value against inflation

11. Money Issue
Greenback Party: paper money not backed by specie (gold or silver)
“Crime of 1873:” Congress stopped the coining of silver
Bland-Allison Act: allowed limited coinage of silver (Perspective Reading)
Tariffs: High or Low
Farmers view industry as growing at the expense of agrarian society
Election of 1888: Harrison and a high tariff

12. Populist Party 1892: The People’s or Populist party emerges
Discontent with the economic power in the hands of the few (trusts and bankers)
Platform: direct election of Senators, use of initiatives and referendums, unlimited coinage of silver, graduated income tax, loans for farmers, 8 hour work day for industrial workers
Activity

13. Election of 1892
Cleveland won a solid victory and became the only former president to become president again
Panic of 1893: stock market crashed due to overspeculation and the railroad industry overbuilding (Reading)
Gold Standard and hands-off policy
Gold reserve plummets
Repealed the Sherman Silver Purchase Act
Government borrowed $65 million from J.P. Morgan
Activity

14. Election of 1896
Democrat Nominee: William Jennings Bryan; joined with Populist platform for unlimited coinage of silver
Republican Nominee and Winner: McKinley; high protective tariff and labor advocate
Improved Economy: Gold in Alaska, increased the tariff and by 1900 made gold the official standard for U.S. currency
Activity

15. Consequences Republican Dominance Populist party declined
Marked changing values in the U.S. including a modern industrial and urban America as opposed to a rural Jeffersonian America
McKinley became the first modern president and led America away from isolationism