Issues of the Gilded Age (Chapter 7 in the Textbook) Time Period: Late 1800s Presidents To Be Discussed In This Lesson: 20.James Garfield 1881-1881 21.Chester Arthur 1881-1884 22.Grover Cleveland 1884-1889 23.Benjamin Harrison1889-1893 24.Grover Cleveland 1893-1897 25.William Mckinley 1897-1901 Gilded Age-term that described greed, corruption, and poverty that lie underneath surface of prosperity During the Gilded Age, the income disparity between the rich and poor increased. -The rich dominated industry. They used their power to influence and control the government. -The poor laborers remained poor with hard lives. Government inaction and political corruption characterized the politics during the Gilded Age Problem of the Gilded Age: Parties Divide Americans Party loyalties were so evenly divided that no faction or group gained control for any period of time. -Republicans and Democrats did not work together to fix the nation's problems. Problem of the Gilded Age: No Quality Leadership The Presidents of the Gilded Age won by slim margins and seemed to lack integrity...weak. The most noteworthy President of the era was Grover Cleveland, known for his integrity. -In 1884, he became the first Democrat to win the White House in 24 years. -In 1888, Cleveland lost to Benjamin Harrison but came back to re-win the presidency in 1892. He is the only President to serve nonconsecutive terms. Problem of the Gilded Age: Political Corruption The PEOPLE did not have a strong voice in the government. Businessmen, industrialists, and corrupt politicians influenced the government's actions. Government officials accepted bribes from industrialists/bankers/businessmen...corruption. Many major cities were dominated by corrupt political machines. -The machine was run by a boss. -The boss and his captains helped the poor and immigrants in the city in return for votes. -The boss and his captains used bribes, intimidation, and contracts to maintain control. Political machines were organizations that provided social services and jobs in exchange for votes. Political cartoonists expressed their concern about the damaging effects of corruption. -Thomas Nast drew a series of cartoons which exposed the illegal activities of William Marcy Boss - Tweed was a powerful New York City politician that ran the Tammany Hall political machine. -Political machines ran the city and state governments with corruption.
Problem of the Gilded Age: Patronage/Spoils System The spoils system was a central component of politics during the Gilded Age. -Politicians awarded government jobs to loyal party workers, with little regard for their qualifications. -The spoils system corrupted government and made it inefficient. It took the assassination of President James Garfield in 1881to make civil service reform a reality. -Garfield was shot because Charles Guiteau he had been promised a government job. -Chester A. Arthur became President after the assassination of Garfield. -President Arthur supported the movement for civil service reform because of the assassination. -Arthur signed the Pendleton Civil Service Act in 1883. civil service system-federal jobs in the executive branch filled by the President The Pendleton act established a Civil Service Commission. -Individuals who wanted to work for the government had to take the exam. Getting a job depended on doing well on the exam, not on manipulating one s political connections or who you knew. -Over time, the act began reducing the power of the spoils system and reducing government corruption. Reform in Civil Service came about because of Garfield s assassination. The tariff and monetary policy were critical economic issues during the Gilded Age. -These issues sharply divided Democrats and Republicans. Tariff-a tax on imports The tariff question became a major issue between the parties. -The Republicans favored a high protective tariff, arguing that it would allow American industries to grow and promote jobs in manufacturing. -A protective tariff was designed to protect...american businesses. -Democrats argued that high tariffs increased the costs of goods to consumers and made it harder for American farmers to sell their goods abroad.
The Money Question: -The U.S. was on the gold standard in the late 1800 s. Some members of society wanted a change. The Amount Of Money In Circulation = Money Supply It can be increased or decreased by the printing or destroying of paper money. Inflation Money supply is increased Prices increase. The Gold Standard Monetary system in which money is worth a specific amount of gold What it does? -decreases the amount of money in circulation, lowers prices, and stops inflation Supporters(Republicans, bankers, industrialists) say -it stabilizes the economy by eliminating inflation and deficits while helping consumers have lower prices Bimetallism(Free Silver) Monetary system in which gold AND silver are used to back the money supply The U.S. Congress had authorized bimettalism through the Sherman Silver Purchase Act of 1890. -Silver is less valuable and disrupted the balance of the monetary system. -Bimetallism drove down the price of gold. -The Panic of 1893 blamed on the act. -Republicans and Mckinley used this as proof of the negative effects of bimetallism. Opponents(Mainly Populists) say -it allows the rich to control the economy and increase their wealth by using low paid workers and farmers to get richer What it does? -increases the amount of money in circulation, uses silver and gold to back paper money, and encourages inflation Supporters(mainly Populists) say -The rise in prices would increase their income/profits and help farmers pay off debts. Opponents(Republicans, bankers, industrialists) say -Considering silver as money would cause widespread inflation, hurt the domestic economy, and hurt foreign trade. The Populist Movement Industrialization+Monopolies+Social Darwinism+Influx of Immigrant Labor =Income Disparity A major problem of the Gilded Age was big business had too much influence over government. The most affected groups of this corruption were laborers and farmers. -Laborers joined labor unions to fight corruption. -Farmers joined the Populist Movement. Farmers recruited laborers to join, too. The Populist Movement of the late 1800s displayed the dissatisfaction of ordinary Americans and produced one of the largest third-party movements in American history. Farmers of West/South received low prices for crops, yet had to pay high rail rates and bank interest. -Debts mounted and they could not pay the banks. -Farmers felt their voice was not being heard. They felt betrayed...why?
Between 1870 and 1895, farm prices plummeted. (Supply and Demand) -Planting more crops did not help. The more crops farmers produced, the more prices declined. -To pay for new machinery, seed, livestock, and other needs, farmers went into debt. Farmers blamed big business, especially the railroads and the banks, for their difficulties. -They protested that railroads, as monopolies, charged whatever rates they wanted. -They complained that banks set interest rates at ridiculously high levels. -Sharecroppers faced the added problem of having to deal with dishonest merchants and landlords. Farmers grew angry because they felt the nation had turned its back on them. -Farmers felt that they produced necessities honestly, while bankers/businessmen got rich. Farmers created a network of organizations, first in the Midwest and then in the South and West. -The Grange movement, also known as the Patrons of Husbandry, was the first. The farmers groups joined together to form the Populist Party, or People s Party, in 1892. -The Populist Party pressured the major political parties to consider their ideas.(purpose of 3 rd Parties) The Populist Party stood up for the rights of farmers and working people(laborers) in the city.. -Populist Party was mainly made up of farmers. It was a Grass Roots movement...what is that? Populist Party Platform: -graduated income tax -bank regulation -regulation of railroads -free(unlimited) coinage of silver -immigration restrictions -shorter workday -voting reforms A Victory for Populists: Interstate Commerce Act(1887) -Prohibited railroads from giving secret rebates, or refunds to some shippers but not to others -Stated that railroad rates had to be reasonable and just -Created the Interstate Commerce Commission-first regulatory agency in the U.S. to oversee RR rates Populists forced the major political parties to consider endorsing its ideas. (Purpose of 3 rd Parties) -In 1892, The Populist Party nominated James B. Weaver of Iowa as their presidential candidate. -Weaver gets over a million votes. Populists elected three governors, five senators, ten congressmen. -In 1894, the Populist Party gained seats in the state legislatures Major Populist Supporter:William Jennings Bryan - Cross of Gold Speech -Argued that farmers/populists should be helped because they fed the rest of the country -Argued for bimetallism -Argued against the Gold Standard Election of 1896 -Republicans nominated William Mckinley...Promoted the Gold Standard. -Democrats and Populists nominated William Jennings Bryan...Promoted bimetallism(free Silver) -Mckinley won the election. The U.S. continued to be on the gold standard. After the election of 1896, the Populist Party disappeared...but -Many Populist reforms became reality in the early twentieth century with the Progressive movement. -Populism had a lasting effect on the style of politics in the United States... Grass Roots. Groups would now use grass roots organizing to initiate reform. What is grass roots? -Populists -Progressives -Temperance and Prohibition -CIVIL RIGHTS
Bryan's Cross of Gold Speech -Democratic National Covention -July 9, 1896 A. But we stand here representing people who are the equals before the law of the largest cities in the state of Massachusetts. When you come before us and tell us that we shall disturb your business interests, we reply that you have disturbed our business interests by your action. We say to you that you have made too limited in its application the definition of a businessman. The man who is employed for wages is as much a businessman as his employer. The attorney in a country town is as much a businessman as the corporation counsel in a great metropolis. The merchant at the crossroads store is as much a businessman as the merchant of New York. The farmer who goes forth in the morning and toils all day, begins in the spring and toils all summer, and by the application of brain and muscle to the natural resources of this country creates wealth, is as much a businessman as the man who goes upon the Board of Trade and bets upon the price of grain. The miners who go 1,000 feet into the earth or climb 2,000 feet upon the cliffs and bring forth from their hiding places the precious metals to be poured in the channels of trade are as much businessmen as the few financial magnates who in a backroom corner the money of the world. B....the issue of money is a function of the government and that the banks should go out of the governing business. C. You come to us and tell us that the great cities are in favor of the gold standard. I tell you that the great cities rest upon these broad and fertile prairies. Burn down your cities and leave our farms, and your cities will spring up again as if by magic. But destroy our farms and the grass will grow in the streets of every city in the country. D. If they dare to come out in the open field and defend the gold standard as a good thing, we shall fight them to the uttermost, having behind us the producing masses of the nation and the world. Having behind us the commercial interests and the laboring interests and all the toiling masses, we shall answer their demands for a gold standard by saying to them, you shall not press down upon the brow of labor this crown of thorns. You shall not crucify mankind upon a cross of gold.