1. POLITICAL REALIGNMENTS IN THE 1890s America: Past and Present Chapter 20

2. Before we begin #1  Presidential elections – every 4 years (1876, 1880, 1884, 1888, 1892, 1896, 1900)  Senatorial elections: A term is 6 years. In election years, about 1/3 of the seats are up for election.  House elections: A term is 2 years. In election years, every seat is up. SO, in every even year, there is an election of some kind happening.

3. Before we begin #2  Under a gold standard, a nation agrees that its currency can be “backed up” by gold. The banking system should be reserving enough gold to cover every deposit. The “price” of gold was set; it didn’t change with the market.  Using silver and gold is called bimetallism.  The coins are NOT made of gold or silver.  We are no longer on a gold standard, as of 1971.

4. Pre-1971  In circulation: gold certificates  Not in circulation: gold coins from the U.S. Mint

5. Politics of Stalemate  Who were the voters?  Democrats and Republicans were close to equal in strength. Usually the president was Republican, but it was rare for the Republicans to control Congress and the executive branch.  Because of close margins and a polarized legislative/executive (frequently), most politicians weren’t willing to risk any big moves or extreme positions that would alienate voters.

6. The Party Differences  Republicans stood for more government involvement and control of the economy; Democrats stood for less control (the opposite of today’s parties).  The Republicans passed the first-ever “billion-dollar budget”

7. The only Democrat President of the late 1800s: Grover Cleveland  Elected to first term in 1884, the first Democratic president since before the Civil War.  Voted out in 1888 after taking a stand against tariffs (Republicans accused him of not supporting business). In this election, the Republicans won control of the White House and Capitol Hill and began to pass a billion-dollar budget, the first ever.

8. Grover Cleveland continued  The Republicans elected in 1888 passed the Sherman Anti-Trust Act and the Sherman Silver Purchase Act;  The billion-dollar budget was unpopular with voters; in 1890 the House came back under Democratic control and in 1892 Cleveland was re-elected to the presidency.

9. The Panic of 1893  Due to overextension, railroads and subsidiary businesses couldn’t sustain their growth (not enough customers).  Investors began selling their stocks, leading to several business bankruptcies.  The gold that investors wanted in exchange for their stock began to be depleted.  Confidence in businesses shattered, and a run on the stock market led stocks to plummet.  A severe depression followed.

10. The Depression  Bankruptcies  25% unemployment rate  A drought led to food shortages  Anger and unrest – Coxey’s Army and the Pullman Strike  Cleveland, in order to rein in the gold drain, repealed the Silver Act. This did nothing to help the economy’s most urgent problems, and didn’t stop the reserve from shrinking at an alarming rate.

11. “Everybody Works but Father”  Women and children paid lower wages, displace men during depression  Employers retain women and children after depression to hold down costs

12. Cleveland continued  Cleveland’s repeal of the Silver Act made him and the Democrats unpopular. In 1894 Republicans gained control of Congress again. Cleveland became a scapegoat for the country’s economic problems.

13. The Mystique of Silver  “Free and independent coinage of silver” –set ratio of silver to gold at 16:1 –U.S. mints coin all silver offered to them –U.S. coins silver regardless of other nations’ policies  Silverites believe amount in circulation determines level of economic activity  A moral crusade for the common people

14. The Presidential Election of 1896  Free coinage of silver the main issue – boost the money supply – seen as solution to depression

15. The election  Republican Candidate: William McKinley  Promises gold standard to restore prosperity  Democratic Candidate: William Jennings Bryan  “You shall not crucify mankind on a cross of gold.”

17. Campaign and Election  Populist party endorses Bryan  Bryan offers return to rural, religious U.S.  McKinley defends urban, industrial society  Election is a clear victory for McKinley, utter rout of Populist party  Populist Party declines after this.

19. The McKinley Administration  McKinley takes office at depression’s end  An activist president  Dingley Tariff raises rates to record highs  1900--U.S. placed on gold standard  1900--McKinley wins landslide reelection against William Jennings Bryan

20. Post-Civil War Presidents Johnson and Grant Republican“Nadir of presidency” HayesRepublicanCompromise of 1877 ended Reconstruction GarfieldRepublicanAssassinated ArthurRepublicanReformed civil service, built up navy ClevelandDemocrat1 st of 2 split terms; lost because (?) Republicans accused him of undermining the economy HarrisonRepublicanLost because of divisions in Rep. Party ClevelandDemocratPanic of 1893 overshadowed presidency McKinleyRepublicanGlobal expansionist; assassinated in 2 nd term T. RooseveltRepublicanThe “trust-busting” president

21. Experiments in the States  State government commissions investigate, regulate railroads, factories  Munn v. Illinois (1877) upholds constitutionality of state investigations  Wabash case (1886) prompts establishment of Interstate Commerce Commission

22. The Rise of the Populist Movement  Discontented farmers of West and South provide base of support  Several organizations over time join/split/morph into the Populist Party.  In 1892, the Populist presidential candidate won over a million votes and 22 electoral votes (James Weaver).  In 1896, in a strange turn of events, the Populists nominated William Jennings Bryan for president. He had already been nominated by the Democrats, and the Populist nomination actually undermined his candidacy.

23. The Farm Problem  Worldwide agricultural economy causes great fluctuations in supply and demand  Farmers’ complaints – lower prices for crops (actual prosperity rising) – rising railroad rates (rates actually declining) – onerous mortgages (loans permit improvement)  Conditions of farmers vary by region  General feeling of depression, resentment

24. Selected Commodity Prices

25. Populist Party For:  Free coinage of silver  “sub-treasury system” – storage of grain, pre-sale loans  Regulation of railroad companies  Southern Populists recruit African- Americans, give them influential positions

27. A Decade’s Dramatic Changes  September, 1901--McKinley assassinated  Theodore Roosevelt becomes president