- Post Civil War period
o Characterized by large population growth.
o 26.6 % gain over preceding decade due to immigrants.
o Now 3rd largest nation in Western world after Russia and France.
- HV civic health did not go up.
The “Bloody Shirt” Elects Grant
- Johnson led many to believe of negative effects of using professional politicians.
- AR a general would make a good president, and Grant most popular Northern hero.
o Great gifts from Northern states for saving the Union.
- Republicans nominate Grant 1868
o Called for continued Reconstruction of South w/ action.
o “Let us have peace” was major slogan.
- MW Democrats all denounced military Reconstruction, but agreed on little else.
o Right eastern delegates demanded federal war bonds redeemed in gold.
o Poorer mid-western delegates called for redemption (of bonds) in greenbacks (depreciated paper money), aka “Ohio idea”
§ Hoped to keep more money in circulation to keep interest rates lower.
o Mid-western delegates won platform but not nominee – Horatio Seymour.
- MW Republicans were “waving the bloody shirt”
- Grant won, though 3 still-unreconstructed southern states not counted at all.
o 500,000 former slaves made Grant win.
The Era of Good Stealings
- Corruption everywhere.
- Notorious in financial world – 2 millionaire partners Fisk and Gould.
o Fisk provided the tools, Gould the plan.
o 1869 plot to “corner the gold market”
§ would only work if federal Treasurey did not sell gold.
o Conspirators worked directly from President Grant.
- On Black Friday (Sept. 24, 1869) Fisk and Gould madly bid the price of gold skyword
o As a result scores of “honest businesspeople” driven to wall.
o TF Treasury was compelled to release the gold.
- Congressional report says Grant done nothing crooked, though acted stupidly.
- Tweed Ring in NYC (was very fat) large scandal, bribed elections to “milk the metropolis of as much as $200 million”.
o Protesters found tax assessments raised.
- Finally NYC secured evidence 1871 and published it (paid $5 million to not do so)
o New York attorney Samuel J. Tilden headed prosecution and gained fame that later led to his presidential nomination.
o Tweed died behind bars.
- A Carnival of Corruption
o Favor seekers bribed Grant himself.
o “His election was a godsend to his in-laws of the Dent family, several dozen of whom attached themselves to the public payroll”
- First the Credit Mobilier scandal 1872.
o Union Pacific Railroad formed Credit Mobilier construction company and hired themselves at inflated prices to build railroad line.
§ Earned dividends as high as 348%.
o Distributed stock to key congressmen.
o Newspaper uncovered that key congressmen/ VP accepted payments from it.
- 1874-1875 Whiskey Ring robbed the Treasury of millions of excise-tax revenues.
o “Let no guilty man escape” – President Grant.
o However when own secretary convicted, he helped exonerate the thief.
- Incident with Secretary of War William Belknap after pocketing bribes from suppliers to the Indian reservations.
o Forced Belknap to resign, but president accepted resig with “great regret”.
The Liberal Republican Revolt of 1872
- 1872 powerful wave of disgust w/ Grantism building up.
- AR formed the Liberal Republican Party – “Turn the Rascals Out”
o Urged purification of Washington administration, and to end military Reconstruction.
- LRP nominated Horace Greeley for presidency, was editor of New York Tribune.
- MW office-hungry Democrats foolishly endorsed Greeley’s candidacy – they “ate crow”
o While Greeley had long described Democrats as traitors, slave shippers, horse thieves, etc.
o HV Greeley pleased North and South Democrats as he said to end “the bloody chasm”.
- Voters between choice of two candidates who made careers in fields other than politics.
- Regular Republicans denounced Greeley as supporter of Confederate cause.
- However regular Republicans chanting “Grant us another term” pulled president through.
o However Liberal Republican agitation frightened regular Republicans into “cleaning their own house before they were thrown out of it”.
- Republican Congress 1872 passed a general amnesty act and removed political disabilities from all but 500 former Confederate leaders.
o Congress reduced high Civil War tariffs and advocated mild civil-service reform.
Depression, Deflation and Inflation.
- Economic panic 1873
o One of the periodic plummets in a roller coaster of the economy as this age was on of unbridled capitalist expansion.
- Overreaching promoters built more railroad, more mines, more factories than existing markets could bear.
o AR bankers made too many loans to finance those enterprises.
- When profits failed to materialize, loans went unpaid, and credit-based “house of cards” fell.
- 15,000 businesses went bankrupt.
o NYC riots against police.
o Black Americans hard hit as Freedman’s Savings and Trust Company had made unsecured loans to several companies that went under.
- Black depositors who had entrusted over $7 million to bank lost their savings.
o Black economic development and black confidence in savings institutions went down with it.
- Issue of greenbacks v. hard silver money restarted.
o During war $450 million of “folding money” had been issued but depreciated under cloud of popular mistrust and dubious legality
- Supreme court 1870 declared Civil War Legal Tender Act unconstitutional.
- HV Senate added two justices to the bench to reverse that decision, which happened in 1871. This is how today Supreme Court has 9 justices.
o By 1868 Treasury had withdrawn $100 million of “battle-born currency” from circulation.
- “hard money” advocates wanted to see complete disappearance.
- HV now debtor groups, afflicted agrarian groups or “cheap money” supporters wanted more greenbacks who reasoned that more money = cheaper money = rising prises and easier to pay debts.
o MW creditors advocated opposite policy, wanted deflation not inflation.
- Hard money-ers advocates get their way
o Persuaded Grant to veto a bill to print more paper money.
o Resumption Act of 1875 which pledged gov to further withdraw greenbacks from circulation and redemption of all paper currency in gold at face value, beginning in 1879.
- TF debtors looked towards silver to solve their problem.
o HV Treasury said silver only worth 1/16 of gold, though open markets prices for silver higher.
o AR silver miners stopped offering silver for federal mints.
- With no more silver, Congress dropped coinage of silver dollars 1873.
- Then when new silver discoveries in 1870, production up and silver prices went down.
- TF Westerners from silver-mining states and debtors joined in “Crime of ‘73” demanding return of “dollar of Our Daddies”.
o Like demand for more greenbacks, demand for more silver more or less another scheme to promote inflation.
- Hard-money Republicans relied on Grant to resist scheme.
o Trasurey began to accumulate gold stocks for resumption of metallic-money payments.
- Policy called for “contraction”.
o AR deflation – as it counted on reduction of greenbacks.
o Amount of money per capita in circulation decreased b/w 1870 and 1880.
- Where contraction probably worsened impact of depression.
- HV restored government’s credit rating, and made greenbacks back to full face value.
o When Redemption Day came in 1879, few exchanged greenbacks for gold.
- However Republican hard-money policy had political backlash.
o Helped elect a Democratic House of Representatives 1874 and 1878 and started the Greenback Labor Party, which had 14 members of Congress.
- Therefore contest over monetary policy not over.
Pallid Politics in the Gilded Age
- Fragile political balance in Gilded Age
o Note Gilded Age was sarcastic name given to 3 decade long post-Civil War era by Mark Twain 1873.
o AR politicians often tiptoed timidly and produced a political record that was often trivial and petty.
- Few significant econ issues separated major parties.
o Democrats and Republicans saw almost same views on questions like tariff and civil-service reform.
o Major party members substantially agreed even on much-debated currency questions.
- HV very competitive, tightly organized, demands loyalty
o MW voter turnouts nearly 80% of eligible voters, new heights.
- Paradox due to sharp cultural differences between parties.
o Republican voters often supporting those who traced lineage to Puritanism.
o Stressed strict codes of personal morality and believed that gov should play role in regulating econ and moral affairs of society.
- Democrats, usually among immigrant Lutherans and Roman Catholics more likely to adhere to faiths who took a less stern view of human weakness.
o Toleration of differences in imperfect world.
- AR differences in religious values often produced political clashes in things like prohibition and education.
o Democrats had solid electoral base in South and northern industrial cities (w/ immigrants and well-oiled political machines).
o Republican strength in Midwest and rural Northeast.
§ MW grateful freedmen still helped Republican cause.
o Members of Grand Army of the Republic (GAR) a politically potent fraternal (brotherly) organization of 100,000s Union veterans of Civil War.
- Both parties survive by patronage (paid out j
o In Republican party was a “Stalwart faction” led by Roscoe “Lord Roscoe” v. the Half-Breeds
§ Both factions quarreled over swapping civil-service jobs for votes.
o HV Conkling (and the Conklingites) and Blaine (the Half-Breeeds) only succeeded in stalemating each other and deadlocking party.
The Hayes-Tilden Standoff 1876
- Corrupted officials wanted Grant to try for 3rd term 1876.
o HV House with bipartisan vote of 233 to 18 passed resolution that sternly reminded country of anti-dictator implications of two-term tradition.
- AR Republicans w/ Grant out and Conklingites and Blaineites against each other, turned to compromise candidate – Rutherford B. Hayes, the “Great Unknown”.
o Came from Ohio, where there were “swing votes”.
- Samuel Tilden against Hayes and had 184 electoral votes of needed 185.
o MW 20 votes in four states, 3 of 4 in South.
o Immediately both parties sent “visiting statesmen” and returned w/ two sets of results.
- Congress specifies that electoral returns to be opened by president of Senate (12th Amendment) in the presence of House and Senate.
o But who should count them? (Constitution did not specify)
- Between president of Senate (a Republican) and Speaker of the House (a Democrat).
The Compromise of 1877 and the End of Reconstruction
- Democratic hotheads “Tilden or Blood” and some began to train “Minute Men”.
- HV in Henry Clay tradition, had Compromise of 1877.
o To be broken by Electoral Count Act which passed Congress 1877.
o Set up an electoral commission of 15 men selected from Senate, House and Supreme Court.
§ After prolonged discussion the members agreed, by partisan vote of 8 Repubs to 7 Democrats, to accept Republican returns.
o Democrats in Congress enraged.
o HV Compromise of 1877 concluded behind closed doors, agreed Hayes might take office for withdrawing federal troops from the two states that remained, LA and SC.
- Republicans also assured Democrats support for bill subsidizing the Texas and Pacific Railroad construction of southern transcontinental line.
o Not all promises kept later on, but deal held long enough to prevent conflict.
- HV price of peace came by sacrificing black freedmen.
o Civil Rights Act 1875 last bill of congressional radical Republicans.
§ Supposedly guaranteed equal accommodation in public places and prohibited racial discrimination in jury selection.
o HV with withdrawal of federal governments and Supreme Court declaring much of act unconstitutional in the Civil Rights Cases (1883), pro-freedmen governments fell.
§ Court had declared 14th Amendment prohibited only government violations of civil rights, not by individuals.
The Birth of Jim Crow in the Post-Reconstruction South
- White Democrats relying on fraud and intimidation, the “Redeemers” resumed political power in the South.
- Blacks and poor whites forced into sharecropping and tenant farming.
o Former slaves now at mercy of former masters, now landlords and creditors.
- Through the crop-lien system, storekeepers extended credit to small farmers for food and supplies and in return took a lien on their harvests.
o Twisted the system so that farmers perpetually in debt.
- MW informal separation of blacks and whites in immediate postwar years developed by 1890s into systematic state-level legal codes of segregation known as Jim Crow Laws.
- Enacting literacy requirements, voter-registration laws, poll taxes.
o Supreme Court validated Souther’s segregationalist order in Plessy v. Ferguson (1896).
§ Allowed for “separate but equal” under the “equal protection” of 14th Amendment.
o Record number of blacks lynched during 1890s for the “crime” of asserting themselves as equals.
Class Conflicts and Ethnic Clashes
- 1877 also end of regional warfare and opened class warfare.
o Was byproduct of long years of depression and deflation.
- Esp. railroad workers.
o When presidents of nation’s four largest railroads collectively 1877 decided to cut employees’ wages by 10%, workers struck back.
o President Hayes decision to call in fed troops to quell unrest brought working-class support.
- AR work-stoppages everywhere.
o Over 100 people dead after.
- HV failure of railroad strike demonstrated weakness of labor movement.
o Racial and ethnic differences between workers made it lack unity.
o Esp. between Irish and Chinese in California.
- By 1880 the Golden State counted 75 thousand Asian newcomers, approx. 9% of population.
o Were mostly uneducated, single males and from Taishan district of Guangdong.
§ Originally for digging gold and to build tracks of transcontinental railroads across west.
o After gold mined, tracks laid, about half returned home to China w/ meager savings.
- Those who remained in land w/ extreme lonely hard lives.
o “not a Chinaman’s chance” – 2nd generation helped assimilation.
- Denis Kearney Irish-born demagoguge (political leader) incited followers to violent abuse of Chinese.
o Kearneyites hotly resented competition of cheap labor from Chinese.
o Beef-eater had no chance against the life-eater in life and death struggle in jobs and wages.
- Sheared pigtails or murdered outright.
- Finally Congress Chinese Exclusion Act 1882 prohibiting all further immigration (would reopen in 1943).
o Some attempted to strip Chinese of citizenship but Supreme Court ruled in U.S. v. Wong Kim Ark 1898 that 14th Amendment guaranteed citizenship to all persons born in US by doctrine of “birthright citizenship” as contrasted w/ “right of blood-tie” which based on parents’ nationality.
§ Was an important protection to immigrant communities.
Garfield and Arthur
- By 1880 Hayes was man without a party, repudiated (rejected) by Republican Old Guard.
o AR Republican party settled on “dark horse” James A. Garfield from Ohio and VP was Chester A. Arthur.
- Waving the bloody shirt, Garfield won over Democratic (and Civil War hero) Winfield Scott Hancock.
o HV immediately conflict between secretary of state James G. Blaine and his nemesis, Senator Conkling.
o As Republican factions dueled, disappointed and mentally deranged office-seeker Charles J. Guiteau shot President Garfield in the back.
- Garfield lingered for 11 weeks while Guiteau remarked “I am a Stalwart. Arthur is now the President of the United States”
o Implication was that Conklingites would get all good jobs.
- Geuiteau found guilty despite defense his “insanity defense”.
- MW Garfield’s death made politicians reform spoils system.
o Arthur prosecuted several fraud cases and ignored former Stalwart pals.
- Disgust w/ Garfield’s murder made Republicans pass Pendleton Act 1883, the “Magna Carta of civil-service reform”.
o Illegal to make compulsory campaign contributions from federal employees illegal, and est. Civil Service Commission to make appointments to federal jobs on basis of competitive examinations than “pull”.
o Only applied to 10% of fed jobs, but somewhat effective.
o HV now caused underdog politicians to search elsewhere for money.
§ Turned to big corporations, and new gen of “boss” emerged w/ getting money from manufacturers and lobbyists.
- TF Pendleton Act partially divorced politics from patronage, but helped drive politicians into “marriages of convenience” w/ big-business leaders.
- MW Arthur’s show of integrity offended powerful Republicans which ignored him for re-election.
The Blaine-Cleveland Mudslingers of 1884
- Blaine receives nomination from Republican convention.
o Lacked honesty and had the Mulligan letters which were very incriminating evidence, some with “burn this letter”.
§ Some reformers wanted to take down Blaine and went to Democrats, called Mugwumps.
- Democrats nominated Cleveland, bachelor but also has an illegitimate son.
- 1884 mudslinging reached a new low.
o Bloody shirt also faded to pale pink as neither candidate had served in the Civil War
o Personalities, not principles claim headlines.
- Contest over state of New York.
o MW Republican clergymen damned Democrats in speech as party of “Rum, Romanism, and Rebellion”.
§ Insulted the race, faith and patriotism of NY’s numerous Irish-American voters.
o Blaine did not denounce fast enough.
- AR Irishmen gave Cleveland the presidency
“Old Grover” Takes Over
- Cleveland first Democrat to become president since Buchanan, 28 years earlier.
o Supporter of laissez-faire (having government not interfere w/ economy) which helped the businessmen and bankers.
§ 1887 vetoed bill to provide seeds for drought-ravaged Texas farmers.
o “Though the people support the government, the government should not support the people”
- In civil service, had demands of Democratics faithful for jobs, and demands of Mugwumps who helped elect him.
o AR first favored cause of reformers but eventually made room for “deserving Democrats”.
- MW Grand Army of the Republic routinely lobbied hundreds of private pension bills through compliant Congress.
o Democrat and non-veteran Cleveland would read through each bill carefully and veto several hundred.
Cleveland Battles for a Lower Tariff
- During Civil War tariff schedules up to high levels due to raised revenues for military machine.
o American industry, primarily in Republican hands, profited from the protection.
- HV high duties continue to pile up revenue at customshouses TF 1881 Treasury running an annual surplus of $145 mil.
o Most of gov income in pre-income tax days came from tariff.
- Congress could reduce surplus in two ways
o One to give it to the veterans and other self-seeking groups
o Other to lower tariff (something big industrialistics opposed)
- Cleveland thought lower barriers = lower prices for consumers, less protection for monopolies, and end to Treasury surplus (a standing mockery of “Cleveland’s professed belief in fiscal orthodoxy and small-government frugality”)
- AR Democrats depressed about stubbornness of their leader, while Republicans rejoiced at his “recklessness”.
o TF for the first time, a real issue divided two parties as 1888 presidential party loomed.
- Democrats have no alternative but to nominate Cleveland while Republicans nominaed Benjamin Harrison (grandfather was “Tippecanoe”)
o Tariff prime issue.
- Republicans used Pendleton Act of alliances w/ big business to raise a “war chest” of $3 mil by taking money from nervous industrialistics.
o Widely used to buy votes.
- AR Harrison won where change of 7000 ballots in New York would have reversed the outcome.
o First sitting president to be voted out of chair since Marin Van Buren 1840.
The Billion-Dollar Congress
- Republicans wished to prosper from surpluses by high tariffs in Congress.
o HV in House, had only 3 more votes than necessary 163 members and Democrats preparing to obstruct all House business by delaying tactics.
o Then steps in Thomas B. Reed, intimidating physically and great debater.
- By tactics of intimidation “Czar” Reed dominated the “Billion-Dollar Congress” (first in history to be in that sum).
o Congress increased pensions on veterans, increased gov purchas of silver.
o To protect Repub. Industrialists passed McKinley Tariff Act of 1890 boosting tariff to higher than ever.
- Farmers no choice but to buy from high-priced industrial goods and had to sell products into highly competitive unprotected world markets.
o AR of mounting discontent against the McKinley Tariff, congressional elections 1890 Repubs lost majority and reduced to 88 seats comp. 235 Democrats and 9 members of the Farmers’ Alliance, militant organization of southern, western farmers.
The Drumbeat of Discontent
- 1892 newly formed People’s Party or the Populists.
o From the Farmers’ Alliance of frustrated farmers in West and South.
o Demanded inflation through free and unlimited coinage of silver at rate of 16 ounces of silver to one ounce of gold.
o Called for graduated income tax, government ownership of railroads, telegraph, telephone, direct election of U.S. senators, one-term limit on presidency, shorter workday and immigration restriction.
o Nominaed James B. Weaver, greenbacker.
- Nationwide strikes in 1892 showed that Populists could unite angry workers.
- Andrew Carnegie’s steel plant had violent strikes and troopers eventually summoned.
- 1892 presidential election singing “Good-by , Party Bosses” had 22 electoral votes.
o One of few 3rd parties in US history.
- HV unable to obtain electoral majority.
o Industrial laborers did not support Populist banner a lot and Populist electoral votes only from 6 states.
- South unwilling to support due to race.
o 1 million southern black farmers had Colored Farmers’ National Alliance shared similar complaints w/ poor white farmers and for a time had strove to overcome racial differences.
§ AR seeing their importance, Tom Watson declared “there is no reason why the black man should not understand that the law that hurts me, as a farmer, hurts him, as a farmer, attempted to win black community.
o HV conservative white elites in South countered Populists’ appeal for interracial solidarity and “woo back poor whites”.
- TF Populist reminder of potential black political strength led to almost no suffrage in black south.
o More literacy tests, poll taxes and grandfather clause, more severe Jim Crow Laws.
- Soon Tom Watson himself became racist due to conservative crusade.
o 1896 Populist movement had increasingly become racist – irony.
Cleveland and Depression
- With Republicans discredited and Populists divided, Cleveland took office again 1893 and only president to be ever re-elected after defeat.
o However he faced different country – debtors in arms, workers restless.
o Depression of 1893 hit contributed by overbuilding, speculation, labor disorders, agricultural depression.
§ Free-silver agitation also damaged Amer. Credit abroad.
o 8000 Amer. Business bankrupt.
- MW Treasurey required to issue legal tender notes for silver that it bought.
o Owners of paper currency would switch it for gold and by law notes would have to be reissued (why?)
o New holders would repeat process and result in an “endless-chain” operation.
o AR gold reserve in Treasury dropped below $100 million, regarded as safe minimum for supporting $350 mil in paper money.
- TF issued repeal of Sherman Silver Purchase Act 1890
o Stopped flow outwards of gold.
- MW Cleveland subject to necessary but dangerous surgery – if he died, “soft-money” VP Stevenson would deepen crisis.
o Congressman pro-silver William Jennings Bryan had filibuster for cause of free silver.
o HV angered Cleveland broke the filibuster and alienated Dem silverites like Bryan.
- Repeal of Sherman Silver Purchase Act only partially stopped loss of gold.
o 1894 Treasury gold reserve $41 mil, now in grave danger of going off gold standard which would have made nation’s currency volatile, unreliable as a measure of value and cripple int’l trade.
- Eventually negotiated w/ JP Morgan which lended $65 million in gold for the profit but made signif concession when agreeing to obtain ½ gold abroad and take necessary steps to stop leaky Treasury.
Cleveland Breeds a Backlash
- In eyes of silverites and debtors saw deal w/ Morgan as a “sellout” of national government.
- MW w/ the Wilson-Gorman Tariff 1894 embarrassment
o Democrats pledged lower tariffs, but by the time it made it through Congress had been so loaded with special-interest protection that it scarcely was different from McKinley Tariff rates.
o Cleveland allowed the bill which also contained 2% tax on incomes over $4000 to become law w/o his signature.
§ When Supreme Court struck down the income-tax provision in 1895, Populists and other disaffected groups found proof that courts were only tools of the plutocrats (plutocracy = government by the wealthy)
- These setbacks (the loan and Tariff) set back Democratic political fortunes.
o Republicans would win w/ landslide in congressional elections 1894
- TF Cleveland failed to cope w/ serious economic crisis in 1893
- As a result Grant, Hayes, Garfield, Arthur, Harrison and Cleveland often referred to as “unforgettable presidents”.
2 comments:
no offense, but your notes sorta suck. question evidence conclusion is the way to go!
nice site though
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