3.  After the Civil War, Congress raised tariffs to protect new US industries.  Big business wanted to continue this; consumers did not.  1885  tariffs earned the US $100 million in surplus!

4.  Government had made paper money during the Civil War  led to inflation  lack of confidence in paper currency  stopped printing paper currency - 1873  Coinage Act of 1873  began a continued debate over use of gold and/or silver as money

5.  Business opportunities, especially in RRs, had lead investors to excessive debt  banks & businesses closed  stock market collapsed  Panic triggered 4-year economic depression

6.  gold = basis of nation’s currency  limited supply of gold  scarce and becoming scarcer  Scarcity of gold:  caused deflation – prices went down  existing debts were harder to pay

7.  Greenbacks (paper money)  increased supply = inflation  prices will go up  “Free” Silver  Allow silver to be minted as well as gold  increased supply = inflation  prices will go up

9. Politics in this time period was characterized by corruption and inaction…

10.  the spoils system (patronage)  government jobs awarded to loyal party workers & campaign contributors regardless of their qualifications  government workers changed each time a new candidate won office  Why would this be a bad thing?

11.  held political parties together - loyalty  helped each party gain more supporters  boosted political participation  easy way to raise campaign funds  allowed political machines to flourish

12.  Civil Service = working for the government  Reform = change  Pendleton Civil Service Act – 1883  Govt. jobs awarded based on merit system - people earn jobs based on qualifications  created a Civil Service Commission  Benefit = keep the same workers no matter who is in office

13.  Campaign contributions went down  people weren’t guaranteed a govt. job anymore  Politicians had to find other sources of funds  Alliance between govt. and big business became even stronger

15. Americans wanted the federal government to deal with growing social, political, & economic problems & to curb the power of the trusts… NEXT UNIT: Populists and Progressives!

16. 1. Balance of power between White House and Congress (i.e. They couldn’t agree on anything!)

18.  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.

19.  “The Forgotten Presidents”  presidency a symbolic office

20.  Honest politician  Appointed cabinet based on talent not friendship  Began the downfall of spoils system

21.  Gave jobs to people who deserved them  Assassinated by a man who was turned down for a job

22.  Pushed for Civil Service reform

23.  Only democratic president of the era  The “Veto President”  Exposed corrupt RR practices  Created Department of labor  Tried to lower tariffs (unsuccessfully)

24.  Weak president  Followed the will of Congress