1. IV Politics of the Gilded Age: Essential Question: Why was civil service reform needed?
Vocabulary: populism greenbacks inflation graduated income tax deflation cooperatives

2. Civil Service Reforms Between “Stalwarts” (loyalty)(pro patronage)
Rutherford B. Hayes became president in 1877
Tried to end patronage by firing officials who were given jobs as a reward for their party support
Replaced them with reformers, which split the Republican Party
Between “Stalwarts” (loyalty)(pro patronage)
“Halfbreeds” (backed reform)
No reforms were passed

3. Civil Service Reforms
1880 Republicans James Garfield, a “Halfbreed” and Chester A. Arthur “Stalwart” won election
Garfield did not believe in the spoils system
“spoils of office” the government jobs handed out after a victory. Anyone could petition for a job.
After repeated rejections for a job Charles Guiteau shot Garfield less than 4 months into presidency. Thought he would have a better chance at a job under VP Chester A. Arthur _ _

4. Civil Service Reforms
Garfield’s assassination highlighted the need for reforms
Many Americans believed patronage made government corrupt and ineffective
1883 Congress passed the Pendleton Act
Required competitive exams to fill jobs. Marked the beginning of professional Civil Service
Governments jobs are given out by qualifications not political affiliation
Only 10% of jobs were civil service in 1883

5. Why was civil service reform needed? How did they accomplish this?

6. The Election of 1884
Democrats nominated Grover Cleveland governor of New York
Had a reputation for honesty
Was a reformer
Republicans nominated James G. Blaine
Former Speaker of the House
Rumored to have accepted bribes
Some Republicans so unhappy with Blaine they supported Cleveland. Called Mugwumps

7. The Election of 1884 Cleveland narrowly won
Some supporters expected to be rewarded
Others wanted civil service increased
Cleveland choose a middle road
Economic problems replaced patronage reform debate

8. Interstate Commerce Act
Power of large corporations concerned Americans
Large corporations negotiated rebates and lower rates, while small business owners and farmers paid higher rates. States began passing laws regulating railroad rates
1886 Supreme Court ruled on the railroads in Wabash, St. Louis and Pacific Railway v Illinois
Only the federal government could regulate interstate commerce
pressure forced Congress to act
1887 Cleveland signed the Interstate commerce Act
First federal law to regulate commerce

9. Election of 1884 Tariffs another economic issue
Democrats thought Congress should cut tariffs
Raised prices of imported goods
High tariffs forced nations to respond in kind
Difficult for farmers to export surpluses
December 1887 Cleveland proposed lowering tariffs
Democrat house passed/ Republican Senate rejected

10. Republicans Gain Power
1888 Benjamin Harrison received large contributions from businesses
They benefitted from high tariffs
Cleveland and Democrats campaigned against high tariffs
Harrison lost the popular vote, but won the electoral vote
Republicans gained control of the White House

11. Republicans Regain Power
1890 Representative William McKinley pushed a bill that
Cut tariffs
Cut some taxes
Increased rates on some other goods
McKinley Tariff was meant to protect American industry but caused a steep rise in cost of goods

12. Sherman Anti-Trust Act
To curb power of large business combination known as trusts 1890 Congress passes the Sherman Anti-trust Act
Prohibited any “combination… or conspiracy to restrain trade or commerce among several states”

13. Politics in Washington
What actions did Congress take to reform the civil service?
Why were these steps necessary?

14. Politics in Washington
Many Americans thought that the patronage system of providing government jobs to political supporters encouraged inefficiency and dishonesty in government. After president Garfield’s assassination, Congress passed the Pendleton Act, which required a percentage of government jobs be awarded on the basis of scores on written exams. The percentage of government jobs filled through this system grew over time.

15. Unrest in Rural America
Guiding Question: What kind of problems did farmers have?

16. Populism Populism was a movement to increase farmer’s political power
Populism – a political movement founded in the 1890s representing mainly farmers that favored free coinage of silver, government control of railroads and other large industries,graduated income tax
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17. Populism New technology helped produce more crops
Increased supply caused prices to fall
High tariffs made it harder to sell goods overseas
Mortgages and shipping costs were difficulties for farmers

18. The Money Supply
Some farmers thought adjusting the money supply would help
During Civil War the government increased the money supply
Printed greenbacks (paper currency)
Could not be exchanged for silver or gold
Increased money supply without increase of goods caused inflation

19. The Money Supply
Greenbacks – a unit of paper currency first issued by the federal government during the civil war
Currency – paper money used as a medium of exchange
Inflation – an ongoing increase in prices and decreases in the value of money

20. The Money Supply After Civil War three types of currency
Greenbacks
Gold and silver coins
National bank notes backed by the federal government bonds
Bonds – a note issued by the government that promises to pay off a loan with interest

21. The Money Supply
To get inflation under control government stopped greenbacks
Paying off its bonds
1873 Congress decided to stop making silver coins
Money supply became insufficient for growing economy and caused deflation
Deflation – an ongoing decrease in prices and an increase in the value of money

22. The Money Supply Deflation hit farmers really hard Sold crops for less
Had to borrow money for new seed
Money supply low, interest rates were up
Rising interest made mortgages more expensive
Farmers had to make mortgage payments

23. The Grange Take Actions
Oliver H Kelly founded the Grange in 1867
1873 severe recession
Farming income fell sharply
Grangers forced states to regulate railroad and warehouse rates

24. Grange Takes Action Granger created organizations called cooperatives
Cooperatives – a store where farmers buy products from each other, an enterprise owned and operated by those who use its services
None of these strategies worked for farmers
Strategy – a plan or method for achieving a goal

25. The Farmer’s Alliance Began in 1890 Had 1.5 to 3 million members
Charles W Macune was the leader
Organized large cooperatives called exchanges
Exchanges failed because they over extended themselves
Wholesalers, bankers and railroad owners made it difficult to stay in business
Too small to affect world prices

26. Unrest in Rural America
What measures did the nation take after the Civil War to improve its economic situation?
What was the result?

27. Unrest in Rural America
It stopped printing greenbacks, began repaying bonds, and stopped making coins out of silver.
These measures resulted in deflation.

28. The Rise of Populism
What were the goals of the People’s Party?

29. The Rise of Populism
1890 many people in the alliance were dissatisfied
Became distrustful of both Republicans and Democrats
Believed both parties favored industry and banks over farmers
Midwest Alliance members wanted a new party
Southern leaders did not want to weaken Democratic Party

30. The Rise of Populism Wanted Alliance member to make a list of demands
Promise to vote for candidates who supported those demands
1892 1,000 delegates met in Omaha, Nebraska
Formed the People’s Party
Nominated James B. Weaver for president

31. The Rise of Populism Party’s platform
Return to unlimited coinage
Federal ownership of railroads
Graduated income tax
Graduated income tax – a tax based on net income of an individual or business and which taxes different income levels at different rates

32. The Rise of Populism Adopted proposals to appeal to labor
8 hour work day
Immigration restrictions
Populism had little appeal to urban voters
They continued traditional party alliances
Many workers continued to vote for Democrats
Grover Cleveland becomes president (Democrat)

33. The Rise of Populism
Why did Southern Alliance groups resist the idea of a national People’s Party?

34. The Rise of Populism
They did not want a new national party to weaken the Democratic party’s influence in the South.

35. The Election of 1896
Why did the Populist’s support the Democratic candidates- William Jennings Bryan- in 1896?

36. The Election of 1896
People’s Party made free coinage of silver their focus
Held their convention after the Republicans and the Democrats
Believed the Republicans would endorse the gold standard
Expected Democrats to nominate Cleveland who favored the gold standard
Hoped pro-silver Democrats would choose Populists

37. The Election of 1896 Strategy failed
Williams Jennings Bryan made a pro-silver speech
Won democratic party nomination
Faced a difficult choice
Endorse Bryan and undermine their party
Nominate own candidate and split the silver vote
They chose Bryan

38. The Election of 1896 Republicans appealed to workers
McKinley promised a “full dinner pail”
Most business leaders supported the Republicans
Thought unlimited silver coinage would ruin the country
Employers warned workers if Bryan elected the business would fail and unemployment would rise further

39. The Election of 1896 McKinley’s had a reputation of
Moderate on labor issues
Tolerant toward ethnic groups
Helped improve the Republican image with urban and immigrant workers
McKinley won with a decisive victory

40. The Election of 1896 Populist party declined after the election
Efforts to end hardships for farmers failed
Efforts to regulated big business failed
Long after party’s demise
Graduated income tax
Further government regulation of the economy were achieved

41. The Election of 1896
Why did the Republicans win the election of 1896?

42. The Election of 1896
They appealed to urban workers and business leaders, and promised economic improvements at a time of recession.