Chapter 23 Outline
1.
“Bloody Shirt” Elects Grant
a.
Republicans: Ulysses S. Grant
i. A
great soldier during the civil war, but was inept at politicking
b.
The Democrats were disorganized.
c.
The Republicans used Grants previous war time
efforts to earn him the presidency
d.
However, due to the close nature of the
election, Republicans could not take future victories for granted.
2.
The Era of Good Stealing’s
a.
Population rose (mainly due to immigration)
b.
Politicians were very corrupt
i. judges
and legislators widely accepted bribes
ii. Railroad
promoters cheated gullible customers.
c.
Two notorious millionaires were Jim Fisk and Jay
Gould.
i. In
1869, they planned to corner the gold market, but their plan failed because the
treasury started selling gold.
d.
“Boss” Tweed, employed bribery, graft, and fake elections
to cheat the city of as much as $200 million.
i. Tweed
was finally caught when The New York Times secured evidence of his misdeeds,
and later died in jail.
ii. Samuel
J. Tilden gained fame by leading the prosecution of Tweed
3.
A Carnival of Corruption
a.
Grant was oblivious to the corruption
surrounding him.
b.
The Credit Mobilier, a railroad construction
company that paid
itself huge sums of money for small railroad construction, tarred
Grant.
itself huge sums of money for small railroad construction, tarred
Grant.
c.
A New York newspaper finally busted it, and two
members of Congress were formally censured (the company had given some of its
stock to the congressmen) and the Vice President himself was shown to have
accepted 20 shares of stock.
d.
In 1875, the public learned that the Whiskey
Ring had robbed the
Treasury of millions of dollars, and when Grant’s own private
secretary was shown to be one of the criminals, Grant retracted his
earlier statement of “Let no guilty man escape.”
Treasury of millions of dollars, and when Grant’s own private
secretary was shown to be one of the criminals, Grant retracted his
earlier statement of “Let no guilty man escape.”
4.
The Liberal Republican Revolt of 1872
a.
By 1872, a power wave of disgust at Grant’s
administration
was building, despite the worst of the scandals not having been
revealed yet, and reformers organized the Liberal Republican Party and
nominated the dogmatic Horace Greeley.
was building, despite the worst of the scandals not having been
revealed yet, and reformers organized the Liberal Republican Party and
nominated the dogmatic Horace Greeley.
b.
The Democratic Party also supported Greeley,
even though he had
blasted them repeatedly in his newspaper (the New York Tribune), but he
pleased them because he called for a clasping of hands between the
North and South and an end to Reconstruction.
blasted them repeatedly in his newspaper (the New York Tribune), but he
pleased them because he called for a clasping of hands between the
North and South and an end to Reconstruction.
c.
The campaign was filled with more mudslinging
(as usual), as
Greeley was called an atheist, a communist, a vegetarian, and a signer
of Jefferson Davis’s bail bond (that part was true) while Grant
was called an ignoramus, a drunkard, and a swindler.
Greeley was called an atheist, a communist, a vegetarian, and a signer
of Jefferson Davis’s bail bond (that part was true) while Grant
was called an ignoramus, a drunkard, and a swindler.
d.
Still, Grant crushed Greeley in the electoral
vote and in the popular vote was well.
e.
In 1872, the Republican Congress passed a
general amnesty act that
removed political disabilities from all but some 500 former Confederate
leaders.
removed political disabilities from all but some 500 former Confederate
leaders.
5.
Depression, Deflation, and Inflation
a.
In 1873, a paralyzing panic broke out, the Panic
of 1873, caused by
too many railroads and factories being formed than existing markets
could bear and the over-loaning by banks to those projects.
Essentially, the causes of the panic were the same old ones
that’d caused recessions every 20 years that century: (1)
over-speculation and (2) too-easy credit.
too many railroads and factories being formed than existing markets
could bear and the over-loaning by banks to those projects.
Essentially, the causes of the panic were the same old ones
that’d caused recessions every 20 years that century: (1)
over-speculation and (2) too-easy credit.
b.
It first started with the failure of the New
York banking firm Jay
Cooke & Company, which was headed by the rich Jay Cooke, a
financier of the Civil War.
Cooke & Company, which was headed by the rich Jay Cooke, a
financier of the Civil War.
c.
Before, the greenbacks that had been issued in
the Civil War were
being recalled, but now, during the panic, the
“cheap-money” supporters wanted greenbacks to be printed en
mass again, to create inflation.
being recalled, but now, during the panic, the
“cheap-money” supporters wanted greenbacks to be printed en
mass again, to create inflation.
d.
However, supporters of “hard-money” (actual gold
and
silver) persuaded Grant to veto a bill that would print more paper
money, and the Resumption Act of 1875 pledged the government to further
withdraw greenbacks and made all further redemption of paper money in
gold at face value, starting in 1879.
silver) persuaded Grant to veto a bill that would print more paper
money, and the Resumption Act of 1875 pledged the government to further
withdraw greenbacks and made all further redemption of paper money in
gold at face value, starting in 1879.
e.
Debtors now cried that silver was under-valued
(another call for
inflation), but Grant refused to coin more silver dollars, which had
been stopped in 1873, and besides, new silver discoveries in the later
1870s shot the price of silver way down.
inflation), but Grant refused to coin more silver dollars, which had
been stopped in 1873, and besides, new silver discoveries in the later
1870s shot the price of silver way down.
f.
Grant’s name remained fused to sound money,
though not sound government.
g.
As greenbacks regained their value, few
greenback holders bothered
to exchange their more convenient bills for gold when Redemption Day
came in 1879.
to exchange their more convenient bills for gold when Redemption Day
came in 1879.
h.
In 1878, the Bland-Allison Act instructed the
Treasury to buy and
coin between $2 million and $4 million worth of silver bullion each
month.
coin between $2 million and $4 million worth of silver bullion each
month.
i.
The minimum was actually coined and its effect
was minimal on creating “cheap money.”
j.
The Republican hard-money policy, unfortunately
for it, led to the
election of a Democratic House of Representatives in 1874 and spawned
the Greenback Labor Party in 1878.
election of a Democratic House of Representatives in 1874 and spawned
the Greenback Labor Party in 1878.
6.
Pallid Politics in the Gilded Age
a.
“The Gilded Age,” was a term coined by Mark
Twain
hinting that times looked good, yet if one scratched a bit below the
surface, there were problems. Times were filled with corruption and
presidential election squeakers, and even though Democrats and
Republicans had similar ideas on economic issues, there were
fundamental differences.
hinting that times looked good, yet if one scratched a bit below the
surface, there were problems. Times were filled with corruption and
presidential election squeakers, and even though Democrats and
Republicans had similar ideas on economic issues, there were
fundamental differences.
b.
Republicans traced their lineage to Puritanism.
c.
Democrats were more like Lutherans and Roman
Catholics.
d.
Democrats had strong support in the South.
e.
Republicans had strong votes in the North and
the West, and from
the Grand Army of the Republic (G.A.R.), an organization made up of
former Union veterans.
the Grand Army of the Republic (G.A.R.), an organization made up of
former Union veterans.
f.
In the 1870s and the 1880s, Republican
infighting was led by rivals
Roscoe Conkling (Stalwarts) and James G. Blaine (Half-Breeds), who
bickered and deadlocked their party.
Roscoe Conkling (Stalwarts) and James G. Blaine (Half-Breeds), who
bickered and deadlocked their party.
g.
VII. The Hayes-Tilden Standoff, 1876
h.
Grant almost ran for a third term before the
House derailed that
proposal, so the Republicans nominated Rutherford B. Hayes, dubbed the
“Great Unknown” because no one knew much about him, while
the Democrats ran Samuel Tilden.
proposal, so the Republicans nominated Rutherford B. Hayes, dubbed the
“Great Unknown” because no one knew much about him, while
the Democrats ran Samuel Tilden.
i.
The election was very close, with Tilden getting
184 votes out of a
needed 185 in the Electoral College, but votes in four states,
Louisiana, South Carolina, Florida, and part of Oregon, were unsure and
disputed.
needed 185 in the Electoral College, but votes in four states,
Louisiana, South Carolina, Florida, and part of Oregon, were unsure and
disputed.
j.
The disputed states had sent in two sets of
returns, one Democrat, one Republican.
7.
The Compromise of 1877 and the End of
Reconstruction
a.
The Electoral Count Act, passed in 1877, set up
an electoral
commission that consisted of 15 men selected from the Senate, the
House, and the Supreme Court, which would count the votes (the 15th man
was to be an independent, David Davis, but at the last moment, he
resigned).
commission that consisted of 15 men selected from the Senate, the
House, and the Supreme Court, which would count the votes (the 15th man
was to be an independent, David Davis, but at the last moment, he
resigned).
b.
In February of 1877, the Senate and the House
met to settle the
dispute, and eventually, Hayes became president as a part of the rest
of the Compromise of 1877. True to a compromise, both sides won a bit:
dispute, and eventually, Hayes became president as a part of the rest
of the Compromise of 1877. True to a compromise, both sides won a bit:
c.
For the North—Hayes would become president if he
agreed to
remove troops from the remaining two Southern states where Union troops
remained (Louisiana and South Carolina), and also, a bill would
subsidize the Texas and Pacific rail line.
remove troops from the remaining two Southern states where Union troops
remained (Louisiana and South Carolina), and also, a bill would
subsidize the Texas and Pacific rail line.
d.
For the South—military rule and Reconstruction
ended when the military pulled out of the South.
e.
The Compromise of 1877 abandoned the Blacks in
the South by
withdrawing troops, and their last attempt at protection of Black
rights was the Civil Rights Act of 1875, which was mostly declared
unconstitutional by the Supreme Court in the 1883 Civil Rights cases.
withdrawing troops, and their last attempt at protection of Black
rights was the Civil Rights Act of 1875, which was mostly declared
unconstitutional by the Supreme Court in the 1883 Civil Rights cases.
8.
The Birth of Jim Crow in the
Post-Reconstruction South
a.
As Reconstruction ended and the military
returned northward, whites once again asserted their power.
b.
Literacy requirements for voting began, voter
registration laws
emerged, and poll taxes began. These were all targeted at black voters.
emerged, and poll taxes began. These were all targeted at black voters.
c.
Most blacks became sharecroppers (providing
nothing but labor) or tenant farmers (if they could provide their own tools).
d.
In 1896, the Supreme Court ruled in the case of
Plessy v. Ferguson
that “separate but equal” facilities were constitutional.
that “separate but equal” facilities were constitutional.
e.
Thus “Jim Crow” segregation was legalized.
9.
Class Conflicts and Ethnic Clashes
a.
In 1877, the presidents of the nation’s four
largest
railroads decided to cut wages by 10%. Workers struck back, stopping
work, and when President Hayes sent troops to stop this, violence
erupted, and more than 100 people died in the several weeks of chaos.
railroads decided to cut wages by 10%. Workers struck back, stopping
work, and when President Hayes sent troops to stop this, violence
erupted, and more than 100 people died in the several weeks of chaos.
b.
The failure of the railroad strike showed the
weakness of the labor
movement, but this was partly caused by friction between races,
especially between the Irish and the Chinese.
movement, but this was partly caused by friction between races,
especially between the Irish and the Chinese.
c.
In San Francisco, Irish-born Denis Kearney
incited his followers to terrorize the Chinese.
d.
In 1879, Congress passed a bill severely
restricting the influx of
Chinese immigrants (most of whom were males who had come to California
to work on the railroads), but Hayes vetoed the bill on grounds that it
violated an existing treaty with China.
Chinese immigrants (most of whom were males who had come to California
to work on the railroads), but Hayes vetoed the bill on grounds that it
violated an existing treaty with China.
e.
After Hayes left office, the Chinese Exclusion
Act, passed in 1882,
was passed, barring any Chinese from entering the United
States—the first law limiting immigration.
was passed, barring any Chinese from entering the United
States—the first law limiting immigration.
10. Garfield
and Arthur
a.
James A. Garfield
b.
In 1880, the Republicans nominated James A.
Garfield, a man from
Ohio who had risen to the rank of major general in the Civil War, and
as his running mate, a notorious Stalwart (supporter of Roscoe
Conkling) was chosen: Chester A. Arthur of New York.
Ohio who had risen to the rank of major general in the Civil War, and
as his running mate, a notorious Stalwart (supporter of Roscoe
Conkling) was chosen: Chester A. Arthur of New York.
c.
The Democrats chose Winfield S. Hancock, a Civil
War general who
appealed to the South due to his fair treatment of it during
Reconstruction and a veteran who had been wounded at Gettysburg, and
thus appealed to veterans.
appealed to the South due to his fair treatment of it during
Reconstruction and a veteran who had been wounded at Gettysburg, and
thus appealed to veterans.
d.
The campaign once again avoided touchy issues,
and Garfield
squeaked by in the popular vote (the electoral count was wider: 214 to
155).
squeaked by in the popular vote (the electoral count was wider: 214 to
155).
e.
Garfield was a good person, but he hated to hurt
people’s feelings and say “no.”
f.
Garfield named James G. Blaine to the position
of Secretary of the
State, and he made other anti-Stalwart acts, but on September 19, 1881,
Garfield died after having been shot in the head by a crazy but
disappointed office seeker, Charles J. Guiteau, who, after being
captured, used an early version of the “insanity defense”
to avoid conviction (he was hanged anyway).
State, and he made other anti-Stalwart acts, but on September 19, 1881,
Garfield died after having been shot in the head by a crazy but
disappointed office seeker, Charles J. Guiteau, who, after being
captured, used an early version of the “insanity defense”
to avoid conviction (he was hanged anyway).
g.
Chester Arthur
h.
Chester Arthur didn’t seem to be a good fit for
the
presidency, but he surprised many by giving the cold shoulder to
Stalwarts, his chief supporters, and by calling for reform, a call
heeded by the Republican party as it began to show newly found
enthusiasm for reform.
presidency, but he surprised many by giving the cold shoulder to
Stalwarts, his chief supporters, and by calling for reform, a call
heeded by the Republican party as it began to show newly found
enthusiasm for reform.
i.
The Pendleton Act of 1883, the so-called Magna
Charta of
civil-service reform (awarding of government jobs based on ability, not
just because a buddy awarded the job), prohibited financial assessments
on jobholders, including lowly scrubwomen, and established a merit
system of making appointments to office on the basis of aptitude rather
than “pull.”
civil-service reform (awarding of government jobs based on ability, not
just because a buddy awarded the job), prohibited financial assessments
on jobholders, including lowly scrubwomen, and established a merit
system of making appointments to office on the basis of aptitude rather
than “pull.”
j.
It also set up a Civil Service Commission,
charged with
administering open competitive service, and offices not
“classified” by the president remained the fought-over
footballs of politics.
administering open competitive service, and offices not
“classified” by the president remained the fought-over
footballs of politics.
k.
Luckily, Arthur cooperated, and by 1884, he had
classified nearly 10% of all federal offices, or nearly 14,000 of them.
l.
The Pendleton Act partially divided politics
from patronage, but it
drove politicians into “marriages of convenience” with
business leaders.
drove politicians into “marriages of convenience” with
business leaders.
11. The
Blaine-Cleveland Mudslingers of 1884
a.
James G. Blaine became the Republican candidate,
but some
Republican reformers, unable to stomach this, switched to the
Democratic Party and were called Mugwumps.
Republican reformers, unable to stomach this, switched to the
Democratic Party and were called Mugwumps.
b.
The Democrats chose Grover Cleveland as their
candidate but
received a shock when it was revealed that he might have been the
father of an illegitimate child.
received a shock when it was revealed that he might have been the
father of an illegitimate child.
c.
The campaign of 1884 was filled with perhaps the
lowest mudslinging in history.
d.
The contest depended on how New York chose, but
unfortunately, one
foolish Republican insulted the race, faith, and patriotism of New
York’s heavy Irish population, and as a result, New York voted
for Cleveland; that was the difference.
foolish Republican insulted the race, faith, and patriotism of New
York’s heavy Irish population, and as a result, New York voted
for Cleveland; that was the difference.
12. “Old
Grover” Takes Over
a.
Portly Grover Cleveland was the first Democratic
president since
James Buchanan, and as a supporter of laissez-faire capitalism, he
delighted business owners and bankers.
James Buchanan, and as a supporter of laissez-faire capitalism, he
delighted business owners and bankers.
b.
Cleveland named two former Confederates to his
cabinet, and at
first tried to adhere to the merit system (but eventually gave in to
his party and fired almost 2/3 of the 120,000 federal employees), but
he had his problems.
first tried to adhere to the merit system (but eventually gave in to
his party and fired almost 2/3 of the 120,000 federal employees), but
he had his problems.
c.
Military pensions plagued Cleveland; these bills
were given to
Civil War veterans to help them, but they were used fraudulently to
give money to all sorts of people.
Civil War veterans to help them, but they were used fraudulently to
give money to all sorts of people.
d.
However, Cleveland showed that he was ready to
take on the corrupt
distributors of military pensions when he vetoed a bill that would add
several hundred thousand new people on the pension list.
distributors of military pensions when he vetoed a bill that would add
several hundred thousand new people on the pension list.
13. Cleveland
Battles for a Lower Tariff
a.
By 1881, the Treasury had a surplus of $145
million, most of it
having come from the high tariff, and there was a lot of clamoring for
lowering the tariff, though big industrialists opposed it.
having come from the high tariff, and there was a lot of clamoring for
lowering the tariff, though big industrialists opposed it.
b.
Cleveland wasn’t really interested in the
subject at first,
but as he researched it, he became inclined towards lowering the
tariff, so in late 1887, Cleveland openly tossed the appeal for lower
tariffs into the lap of Congress.
but as he researched it, he became inclined towards lowering the
tariff, so in late 1887, Cleveland openly tossed the appeal for lower
tariffs into the lap of Congress.
c.
Democrats were upset at the obstinacy of their
chief while Republicans gloated at his apparently reckless act.
14. The
Billion Dollar Congress
a.
The new Speaker of the House, Thomas B. Reed,
was a large, tall man, a tremendous debater, and very critical and quick man.
b.
To solve the problem of reaching a quorum in
Congress, Reed counted
the Democrats who were present yet didn’t answer to the roll
call, and after three days of such chaos, he finally prevailed, opening
the 51st, or “Billion Dollar” Congress—one that
legislated many expensive projects.
the Democrats who were present yet didn’t answer to the roll
call, and after three days of such chaos, he finally prevailed, opening
the 51st, or “Billion Dollar” Congress—one that
legislated many expensive projects.
15. The
Drumbeat of Discontent
a.
The Populist Party emerged in 1892 from
disgruntled farmers.
b.
Their main call was for inflation via free
coinage of silver.
c.
They called for a litany of items including: a
graduated income
tax, government regulation of railroads and telegraphs/telephones,
direct elections of U.S. senators, a one term limit, initiative and
referendum, a shorter workday, and immigration restriction.
tax, government regulation of railroads and telegraphs/telephones,
direct elections of U.S. senators, a one term limit, initiative and
referendum, a shorter workday, and immigration restriction.
16. Cleveland
and Depression
a.
Grover Cleveland won, but no sooner than he had
stepped into the
presidency did the Depression of 1893 break out. It was the first such
panic in the new urban and industrial age, and it caused much outrage
and hardships. This completed the almost predictable, every-20-year
cycle of panics during the 1800s (panics occurred during 1819, 1837,
1857, 1873, and 1893).
presidency did the Depression of 1893 break out. It was the first such
panic in the new urban and industrial age, and it caused much outrage
and hardships. This completed the almost predictable, every-20-year
cycle of panics during the 1800s (panics occurred during 1819, 1837,
1857, 1873, and 1893).
b.
About 8,000 American business houses collapsed
in six months, and dozens of railroad lines went into the hands of receivers.
c.
This time, Cleveland had a deficit and a
problem, for the Treasury
had to issue gold for the notes that it had paid in the Sherman Silver
Purchase Act, and according to law, those notes had to be reissued,
thus causing a steady drain on gold in the Treasury—the level
alarmingly dropped below $100 million at one point.
had to issue gold for the notes that it had paid in the Sherman Silver
Purchase Act, and according to law, those notes had to be reissued,
thus causing a steady drain on gold in the Treasury—the level
alarmingly dropped below $100 million at one point.
d.
Meanwhile, Grover Cleveland had developed a
malignant growth under
the roof of his mouth, and it had to be secretly removed in a surgery
that took place aboard his private yacht; had he died, Adlai E.
Stevenson, a “soft money” (paper money) man, would have
caused massive chaos with inflation.
the roof of his mouth, and it had to be secretly removed in a surgery
that took place aboard his private yacht; had he died, Adlai E.
Stevenson, a “soft money” (paper money) man, would have
caused massive chaos with inflation.
e.
Also, 33 year-old William Jennings Bryan was
advocating “free
silver,” and gaining support for his beliefs, but an angry
Cleveland used his executive power to break the filibuster in the
Senate—thus alienating the silver-supporting Democrats.
silver,” and gaining support for his beliefs, but an angry
Cleveland used his executive power to break the filibuster in the
Senate—thus alienating the silver-supporting Democrats.
17. Cleveland
Breeds a Backlash
a.
Cleveland was embarrassed at having to resort to
J.P. Morgan to bale out the depression.
b.
He was also embarrassed by the Wilson-Gorman
Tariff. He’d promised to lower the tariff, but so many tack-ons had been added, the result
was nill.
c.
Further, the Supreme Court struck down an income
tax. It looked like all politicians were tools of the wealthy.