Political Realignments in the 1890s

1. 20 Political Realignments in the 1890s

2. Politics of Stalemate • Politics was a major fascination of the late nineteenth century – seen as entertainment • Political ideology did not determine vote • White males made up bulk of electorate • Women allowed to vote in national elections only in Wyoming, Utah, Idaho, Colorado • Black men denied vote by poll tax, literacy tests – grandfather clause (could vote if grandfather eligible to vote)

3. The Party Deadlock • Post-Civil War Democratic party divides electorate almost evenly with Republicans • Each party has safe states • Federal influence declines, state control rises

4. Experiments in the States • Early state commissions established to investigate, regulate railroads • Weak and advisory in nature • Munn v. Illinois (1877) upholds constitutionality of state investigations

5. Experiments in the States • Wabash case (1886) prompts establishment of Interstate Commerce Commission (ICC) • ICC prototype for modern regulatory agencies • ICC first federal regulation – regulate railroads but came to regulate all areas of govenment

6. Reestablishing Presidential Power • Presidency hits nadir under Johnson • Later presidents reassert executive power • Hayes gained presidency after disputed election of 1876 and ended military Reconstruction • Garfield asserted leadership of his party – assassinated in office • Arthur strengthened navy, civil service reform – Pendleton Act • Cleveland used veto to curtail federal activities, called for low tariffs

7. Republicans in Power:The Billion-Dollar Congress • 1890: Congress enacts “billion dollar” program • Important because it shaped the future policy of nation and asserted federal authority

8. Tariffs, Trusts, and Silver • 1890: McKinley Tariff raises duties to historic high • Democrats want tariffs lowered and Republicans want to keep them high to help businesses • Dependents Pensions Act – l million receive pensions from union army • 1890: Sherman Anti-Trust Act regulates big business (trusts) but was vague and at mercy of court

9. Tariffs, Trusts, and Silver • 1890: Sherman Silver Purchase Act moves country toward bi-metallic monetary system (gold and silver) • Keeps limited silver coinage in circulation • Supporters convinced free silver would help agrarian sectors

10. The Rise of the Populist Movement • Discontented farmers of West and South provide base of support • Regional Alliances merge into The National Farmers' Alliance and results in populist movement • Purpose is to organize and politicize the farmer

11. The Farm Problem • Worldwide agricultural economy causes great fluctuations in supply and demand • Farmers’ complaints: • Lower prices for crops (although purchasing power rising) • Rising railroad rates (rates actually declining) • Onerous mortgages (loans permit production expansion) • Perception of loss of status in society

12. The Fast-Growing Farmers’ Alliance • Farmers had ability to organize and voice their discontent • 1889: Regional Alliances merge into National Farmer’s Alliance • 1890, Alliance run candidates

13. The Fast-Growing Farmers’ Alliance: Ocala Demands • System of government warehouses to hold crops for higher prices (subtreasury system) • Free coinage of silver • End protective tariffs • Federal income tax • Direct election of Senators • Regulation of railroads

14. The People’s Party • 1892: Populist presidential candidate James Weaver draws over one million votes • Loses South to violence and intimidation by Southern Democrats • Loses urban areas • Alliance wanes after 1892 elections

15. The Crisis of the Depression • Economic changes of the period cause crisis and panic of the 1890s • Railroads overbuilt, companies grew beyond their markets, farms and businesses went deeply in debt • Panic of 1893 changed ideas about the role of the government

16. The Panic of 1893 • Failure of major railroads spark panic on New York Stock Exchange • Investors sell stock to purchase gold • Depleted treasury shakes confidence and Cleveland faces Panic • Cleveland sells bonds to purchase gold for treasury (J. P. Morgan)

17. The Panic of 1893 • May, 1893: Market hits record low, business failures displace 2 million workers • 1894: Corn crop fails – drought in farm belt • Price of cotton below break-even point • Eventually, 20 percent unemployment

18. Coxey’s Army and the Pullman Strike • 1894: Jacob Coxey led “Coxey’s Army” to Washington to demand relief/jobs • Pullman strike, joined by Eugene Debs, American Railroad Union - closed Western railroads and gained national fame • President Cleveland suppressed strikes with federal troops and injunction - Debs arrested • Worker’s demands not met

19. The Miners of the Midwest • United Mine Workers strike of 1894 • “Old miners”: English and Irish workers, owners of small family mines • “New miners”: 1880s immigrants • Strike pits new miners against old

20. A Beleaguered President • Cleveland repeals Sherman Silver Purchase Act to remedy Panic of 1893 • Repeal fails to stop depression • Repeal makes silver a political issue • Democrats (Cleveland) failed to deliver on promise of lower tariff

21. Breaking the Party Deadlock • Election of 1894 reduced Democrats to a sectional southern organization • Republicans swept congressional elections • Republican doctrines of activism and national authority became popular

22. Changing Attitudes • Depression of 1893 forced recognition of structural causes of unemployment • Americans accepted the need for government intervention to help the poor and jobless

23. “Everybody Works but Father” • Women and children paid lower wages, displaced men during depression • Employers retained women and children after depression to hold down costs

24. The Presidential Election of 1896 • Main issue is currency – silver vs gold • Democratic idea is free coinage of silver • Boost the money supply • Seen as solution to depression • Republican party becames majority party as new voting patterns emerge and national policy shifts

25. The Mystique of Silver • “Free and independent coinage of silver” • Set ratio of silver to gold at 16:1 • U.S. mints coined all silver offered to them • U.S. coined silver regardless of other nations’ policies • Silverites believed amount in circulation determined level of economic activity – seen as simple answer to economic crisis • A moral crusade for the common people

26. Republicans and Gold • 1896 election • Candidate: William McKinley (Republican) • Silverite Republicans defeated on convention floor • Promised gold standard to restore prosperity • McKinley backed by money and press

27. The Democrats and Silver • 1896 election • Candidate: William Jennings Bryan (Democrat) • Free silver promised in “Cross of Gold” speech • Democrats were enthusiastic

28. Campaign and Election • Populist party endorsed Bryan • Bryan offered return to rural, religious U.S. • McKinley defended urban, industrial society • Election was a clear victory for McKinley, and Republicans became majority party

29. The McKinley Administration • McKinley took office at depression’s end • An activist president – regulation and control of industry • 1900: U.S. placed on gold standard • Friend of farmers and workers • 1900: McKinley won landslide reelection against William Jennings Bryan

30. A Decade’s Dramatic Changes • Consequence of Depression: • Changed American ideas about government • Created bitter fight over currency • Brought about interest in activism • Produced widespread business failures • September, 1901: McKinley assassinated • Theodore Roosevelt became president