Forging an Industrial Society

1. Forging an Industrial Society UNIT 6 1869-1900

2. Forging an Industrial Society • America went from a rural society beginning of the Civil War to urbanizing, industrial one by the end of the century • Economic and technological change allowed a whole new civilization to emerge • The last part of the 1800’s saw the rise of industry and industrial giants • American movement to urban areas brought into question the spirit of individualism, but also expansion and closure onto the Western frontier • Reformers ushered in an age of more active governmental affairs on the social and business fronts • Economic change brought political and social turmoil and allowed for the expansion of labor unions • Disputes over monetary policies divided industrialists and farmers and gave rise to the Populist party • The South remained untouched by this prosperity and African Americans became victims of institutionalized racism • As the century ended Americans were again gripped by expansionism and people questioned American’s role on the world stage

3. Political Paralysis in the Gilded Age Chapter 23

4. I. The Bloody Shirt Elects Grant • Civil War brought government corruption and many Americans were disillusioned • Politics during the last 30 years of the century were corrupt at best • 1868 US Grant elected president • Grant’s victory could be attributed to former slaves voting him into office, also the memories of his war exploits (waving the bloody shirt) • First many money issues came up during this election; eastern wealth focused on gold standard vs. Midwestern farmers who wanted to stay with system of greenbacks (money backed by faith and credit of US) • Farmers wanted to keep more money in circulation and keep interest rates low

5. II. The Era of Good Stealings • Postwar political atmosphere was full of political corruption • Jay Gould and Jim Fisk and their plot to corner the gold market was an example of the time • Tweed Ring in NYC- Boss Tweed leader gained favor of immigrants by making promises, providing services to them in return for support • Once in office he stole, bribed and fleeced the city for over $200 million (cartoons of Thomas Nast brought public attention and put him behind bars (1871)

6. III. A Carnival of Corruption • Misdeeds of federal government • Grant’s cabinet was full of crooks • 1872Credit MobilierScandal Union Pacific RR formed Credit Mobilier Construction to build railroads and hired themselves at inflated prices • Gave stock to key Congressmen to cover up investigation, even paid off VP • 1874-1875Whiskey Ring robbed treasury of millions in excise tax revenue • 1876 Sec. of War had to resign after pocketing bribes from suppliers to Indian reservations

7. IV. The Liberal Republican Revolt of 1872 • Reformers tired of corruption formed Liberal Republican Party in 1872 • Nominated editor of New York Tribune, Horace Greely • Democrats endorse Greely and his views on national unity • Election 1872 between Grant and Greely a choice of the lesser of two evils and Grant won

8. V. Depression, Deflation and Inflation • 1873 Economic Panic • Over production, expansion caused loans to go unpaid • Riots in NYC, black Americans and business hardest hit (less stable footing) • Call for “greenbacks”, not money based on gold standard to pay back debt easier (greenbacks could be traded for gold) • Hard money people wanted to get rid of currency, removing it from circulation would make the value higher not lower (create scarcity) • Soft Money advocates wanted more money in circulation, it would cause higher prices, more profit and make debt easier to pay • Hard money won out, Grant refused to print more money

9. V. Depression, Deflation and Inflation Debtors looked to silver as a substitute for greenbacks and gold Silver undervalued by US government (16:1), higher prices on open market so miners did not sell to US government 1873 Congress formally drops making silver coins New discoveries in the same year, production up and mining interests and debtors called end of production “Crime of ’73” Demand for more silver scheme to promote inflation Grant has government buy more gold and reduce greenbacks, policy of contraction worsened panic 1874- Result of money policy led to Democrats regaining control of Congress 1878 limited production of silver coinage (Bland-Alison Act)

10. VI. Pallid Politics in the Gilded Age Political balance switched back and forth during this period, no president won popular vote during this period Voter turnout was high and few significant economic issues separated the parties Political affiliation came from ethnic and cultural differences Lifeblood of both parties was political patronage, federal jobs (civil service) in exchange for votes, kickbacks in exchange for votes 1870’s Republicans split into two camps Stalwarts (led by Roscoe Conkling) and Half Breeds (led by James Blaine) Stalwarts embraced system of exchanging votes for jobs, Half Breeds toyed with idea of civil service reform

11. Republicans vs. Democrats Northern Protestant African Americans Supported nativitist causes Supported prohibition Pro-business Southern whites Immigrants Catholics Jews Freethinkers Farmers

12. Role of Government During Gilded Age From 1870-1900 Govt. did very little domestically. Main duties of the federal govt.: Deliver the mail. Maintain a national military. Collect taxes & tariffs. Conduct a foreign policy. Administer the annual Civil War veterans’ pension. Americans expected little support from federal government most was local and state support Party bosses ruled. Congress most powerful branch of government during this period Presidents should avoid offending any factions within their own party. The President just doled out federal jobs. Roscoe Conkling US Senator aka Lord Conkling

13. VII. Hayes-Tilden Standoff and Compromise (1876-1877) 1876 Grant does not run, Republicans pick Rutherford Hayes as compromise (from electoral rich Ohio) Democrats pick Samuel J. Tilden (NY), man who bagged Boss Tweed Tilden wins popular vote, disputed electoral votes in SC, LA, FL- no official winner as inauguration approached Compromise of 1877 settled dispute Hayes would take office in exchange for federal troops leaving the south Republicans promised political patronage to Dems. and to subsidize construction of southern RR

14. VII. Hayes-Tilden Standoff and Compromise (1876-1877) Compromise brought end to Reconstruction, also sacrificed A-A’S in South Civil Rights Act of 1875 last major legislation by radicals in Congress (guaranteed equal accommodations in public places) Declared unconstitutional 1883, ruling stated only government, not individuals, were subject to 14th Amendment When troops left Republican regimes across South fell apart

15. VIII. The Birth of Jim Crow in the Post-Reconstruction South White Redeemers using fraud, intimidation and playing on racial fears retook power Blacks who tried to assert their rights faced discrimination at every turn Many blacks and poor whites were forced into tenant farming (crop-lien system) and remained perpetually in debt What began as informal separation of the races in 1870’s became systematic across the south within 20 years Legal codes that became known as Jim Crow laws

16. VIII. The Birth of Jim Crow in the Post-Reconstruction South Jim Crow laws: Literacy requirements and poll taxes ensure disenfranchisement of South’s black population 1896 Supreme Court validates South’s social order with Plessey vs. Ferguson ruled “separate but equal” was constitutional under 14th Amendment Created inferior schools, separated most public facilities, made blacks second class citizens Blacks that tried to stand up for themselves were dealt with harshly, indicated by record number of lynching's Would be nearly a century before these problems were addressed

17. IX. Class Conflicts and Ethnic Clashes • 1877 Ended age of regional warfare and opened age of racial and class warfare • Byproduct of economic depression following Panic in 1873 • RR workers wages cut and workers struck back • Work stoppages across nation and Hayes sent in troops to quell unrest (hundreds killed) • Failure of strike showed weakness and first stirrings of labor movement • Racial and ethnic tension fractured unity

18. IX. Class Conflicts and Ethnic Clashes • Tension high in California between Chinese and Irish • Many Chinese came to work in goldfields and RR’s • Irish (Kearneyites) resented competition of cheap Chinese labor , terrorized Chinese • 1882 Congress cuts off further immigration from China until 1943 • 1896 and 1898 victory for Chinese in YikWo vs. Hopkins, US vs. Wong Kim protected them in employment and citizenship (guaranteed by 14th Amendment) • Wong Kim case protected other immigrant groups as well

19. X. Garfield and Arthur • 1880 presidential campaign Republicans nominate James Garfield and Stalwart running mate Chester A. Arthur, they win election • Garfield was assassinated by disgruntled office seeker Charles Guiteau • Outcome of death was that it led to call for reforming spoils system • Arthur was thought to be a man in favor of the spoils system but he shut out many of his Stalwart pals and advocated for reform

20. X. Garfield and Arthur • 1883 Pendleton Act passed – established a Civil Service Commission that made appointment to federal jobs based on examination rather than influence and political favor • Banned practice of compulsory campaign donations from federal employees • Politicians had to find money elsewhere and they turned to the big corporations; they supported big business with legislation, they were rewarded with money

21. XI. Blaine- Cleveland Mudslingers of 1884 • 1884- Blaine (leader of Half- breeds) nominated , Democrats nominate Grover Cleveland • Cleveland had been reformer mayor of Buffalo, NY and Governor of NY • Reformers called Mugwumps • Reform to them, create a disinterested, impartial govt. run by an educated elite like themselves. • Social Darwinists • Laissez faire government to them: • Favoritism & the spoils system seen as govt. intervention in society. • Their target was political corruption, not social or economic reform • Campaign 1884 one of the dirtiest in American history with accusations and partisan fervor (turned many off to voting)

22. XII. Old Grover Takes Over • The “Veto Governor” from New York. • First Democratic elected since 1856. • A public office is a public trust • His laissez-faire presidency: • Opposed bills to assist the poor aswell as the rich. • Vetoed over 200 special pension billsfor Civil War veterans • Biggest political issue was the tariff • America had profited from protection and the Treasury had a huge surplus ($145 million) • 1887 Cleveland brings up tariff issue and this becomes a major issue in the next presidential election • 1888 Cleveland voted out of office and Republican Benjamin Harrison takes over

23. XIII. The Billion Dollar Congress • Republicans couldn’t wait to take office, Democrats planned to thwart all House business • Republicans in Congress passed first billion dollar budget and depleted treasury • Gave out more pensions to Civil War veterans, increased government purchases of silver, passed higher tariff • Tariff caused farmers more problems selling goods on the unprotected world markets, protected goods were very profitable for American industry • Rural voters turned out in 1890 Congressional elections and Republicans fell out of power

24. XII. Cleveland, Depression and Backlash • Democrats and Cleveland retake presidency 1892 • 1893 financial panic and depression hit American economy • Over speculation, overbuilding, depressed agricultural prices, labor unrest all contributed • Free silver agitation hurt American credit abroad and European banks called in loans • Federal government laissez faire policies did not help American people • Cleveland had to deal with deficit left behind by Harrison • Gold reserve in the Treasury fell and the Sherman Silver Purchase Act was repealed • US was in danger of going off gold standard and having currency become unreliable

25. XII. Cleveland, Depression and Backlash • 1895 Cleveland turns to financier J.P. Morgan and Wall Street to lend government $65 million worth of gold • Created a backlash that seemed like government was in bed with big business • Democrats tried to lower tariffs to make economy more competitive abroad and they passed a small income tax (later struck down by Supreme Court) • Disallowing income tax seemed like more proof that government was a tool of big business

26. XIV. The Drumbeat of Discontent • 1892Populist Party first appeared • It was a coalition of frustrated farmers in the south and west that denounced government injustice • They met in Omaha to announce their support for the following • System of “sub-treasuries.” • Abolition of the National Bank. • Direct election of Senators. • Govt. ownership of RRs, telephone & telegraph companies. • Government-operated postal savings banks. • Restriction of undesirable immigration. • 8-hour work day for government employees. • Abolition of the Pinkerton detective agency. • Australian secret ballot. • Re-monitization of silver. • A single term for President & Vice President

27. XIV. The Drumbeat of Discontent • 1892 Nationwide strikes, Homestead Steel strike • Workers rights seen as trampled on • Populists see possibility of farmers and workers joining together • Populists run James Weaver for president and win over 1 million votes • The populists did not get the support from the industrial workers in the north and the farmers in the south • In the south the political elite played on racial fears to keep Populist support down • Caused Southern states to aggressively disenfranchise A-A voters (literacy tests and using the “grandfather clause”), 50 years before blacks would vote in heavy numbers again