POLITICS AND REFORM 1877-1896

Chapter 11

•During this period, political parties often focused on party competition rather than on important issues. Rural Americans (farmers) were suffering economically, and they began to organize politically in order to obtain relief.

* Many states passed laws segregating African Americans and limiting their voting rights.

Main Ideas of this chapter…….

Section 1 - Stalemate in Washington

Main Idea: From 1877 to 1896 the Republicans and Democrats were so evenly matched that only a few reforms were possible at the national level.

I. Campaign to Clean up Politics A. Stalwarts - GOPs who supported political

machines & the spoils system (patronage-government jobs going to supporters of the winning party in an election).

B. Halfbreeds - GOPs who wanted to reform the spoils system.

C. Pendleton Act1. President Garfield’s assassination a. He was killed by disgruntled

supporter who was angry because he couldn’t get a government job.

b. Highlighted problems with the spoils system

2. Pendleton Act created the Civil Service Commission - jobs on merit, not patronage.3. Jobs were obtained through civil service examinations.

II. Two Parties, Neck & Neck - 1870s & 1880s. A. Stalemate 1. House of Representatives - usually a

Democrat majority. 2. Senate - usually a Republican majority. 3. President - narrow margins in most elections

of the period. a. In two elections, candidate winning the

popular vote lost in Electoral College. b. Republican party won 4 of 6 pres. elections…BUT they had to try to govern w/ a split Congress nearly even division of power = political deadlock = not much chance for reform.

III. Democrats Reclaim the White House A. 1884 election 1. Grover Cleveland vs.

James G. Blaine 2. Dirty campaign

a. Blaine tainted by Credit Mobilier scandal

b. GOPs split over reforms; those wanting reforms - mugwumps c. Cleveland - bachelor; had

fathered a child out of wedlockten years earlier.

3. Cleveland won election by 1,000 votes in NY

Grover Cleveland Democrat

James G. Blaine Republican

“Ma, Ma…where’s my

Pa? Gone to the White

House….ha, ha, ha….”

IV. President Cleveland with Problems A. Labor unrest - strikes & violence B. Powerful corporations (ex: RRs)

* Small businesses & farmers angry at RRs. a. Large corporations could get rebates

(partial refunds) & lower shipping ratesbecause of their volume of business.

b. Farmers & small business owners felt theypaid unfair rates.

C. Interstate Commerce Commission 1887 -designed to regulate interstate trade & to create “reasonable & just” rates. * Problem: ICC couldn’t enforce rulings, had to rely on courts to do so. Courts often unwilling to interfere with

corporations (property rights). D. Tariffs

1. Dems. in House passed tariff reduction bill (to lower prices on manufactured goods)2. GOP-controlled Senate would not pass the tariff reduction bill.3. Became the major issue in election of 1888.

V. GOPs Regain Power A. Election of 1888

1. GOP- Benjamin Harrison - for high tariffs.2. Dems - Grover Cleveland - against tariffs.3. Harrison lost popular vote, but won electoral vote.4. GOP won control of both houses of Congress.

B. McKinley Tariff - compromise bill1. Lowered tariff on some goods;

raised it on others (ex: textiles)2. Hurt federal revenue because tariffs hurt American trade.

BenjaminHarrison

3. Budget surplus became a deficit. C. Sherman Antitrust Act (1890)

1. Meant to control huge trusts which created monopolies & hurt consumers.2. Wording vague - hard to enforce.3. Not much impact on business.

* Although ICC & Sherman Antitrust Act were weak & hard to enforce, they established an important precedent: The federal government could regulate private corporations to protect American citizens/ consumers.

* By 1890 elections -- some Americans, especially farmers, believed that the two-partypolitical system was incapable of solving the nation’sproblems.

What would those voters do? Where do they go to see that their interests are being protected?

Section 2 - Populism

Main idea: In the 1890s, an independent politicalmovement called populism emerged to challenge thetwo major political parties.

I. Unrest in Rural America - Why were they angry? A. Improved technology farmers produced

more greater supply = lower prices for crops & cattle. At the same time….

B. High tariffs higher cost of manufacturing goods that farmers had to buy. Also….

C. High tariffs on foreign imports to Americaother countries retaliated by raising their tariffson American exports to them farmershad trouble selling their goods overseas.

D. Farmers thought eastern bankers were unfairto them (foreclosures, etc.)

E. Farmers thought RRs were unfair to them (charged them higher rates than manufacturers)

Farmers vs.Railroad Companies

II. The Money Supply A. Greenbacks (paper currency) issued

during Civil War caused inflation(decline in value of $$)

B. After Civil War1. Three types of currency in circulation: a. Greenbacks b. Gold & silver coin c. Bank notes (government bonds)2. Feds stopped printing greenbacks; stopped minting silver coins; paid off bonds not enough $$ in circulation deflation decrease in price of goods.

C. Deflation hurt farmersHad to borrow $$ for seed, supplies

Money supply scarce = higher interest rates

Farmers owe more $ for mortgages/other loans

Falling prices = less income on crops

Couldn’t pay mortgages

Wanted more greenbacks printed and/or silver

Blamed Congress & eastern bankers.

Farmers decided they needed to organizepolitically!!

D. Grange Takes Action1. Patrons of Husbandry, aka Grange - first nat’l. farm organization * At first, it was a social & educational org.2. Grange’s response to farmers’ problems: a. Pressured state legislatures

to regulate RRs. b. Joined Greenback Party -

wanted govt to print more$$.

c. Cooperatives - pooled their resources tocreate businesses to benefit farmers.Ex: Pooled their crops & held them offthe market to force up prices. Could alsonegotiate better RR rates due to high volume.

E. Grange fails1. “Granger laws” setting RR rates were fought in courts. RRs usually won.2. Greenback Party failed; too many people were afraid of paper $$.3. Co-ops failed - not strong enough and farmers had too little business experience.

III. Farmers’ Alliance A. Replaced Grange as farmers’ “union.” B. People’s Party, aka Populist Party, formed to address farmers’ issues.

IV. Rise of Populism A. Populist party platform:

1. Subtreasury plan (store crops to raise prices)2. “Free silver” unlimited coinage of silver3. End protective tariffs &

national banks.4. Tighter regulation of RRs5. Direct election of senators

by voters instead of by state legislatures.

17th Amendment

B. Populist for President 18921. James Weaver - Populist candidate2. Platform: a. Included all of populist platform….plus… b. Federal government ownership of RRs c. Graduated income tax - you make more,

you pay at a higher rate. d. 8-hour workday To try appeal to e. Immigration restriction the labor vote.

C. Grover Cleveland (Dem) defeated Pres. Benjamin Harrison (GOP) & Weaver(Populist)

D. Panic of 18931. Businesses went bankrupt.2. Stock market crashed.3. Banks closed.4. 15-20% unemployment…..Depression!!

E. Panic caused Amer. & Eur. investors to cashin bonds for gold gold reserves becamedangerously low!1. Cleveland wanted gold as basis for currency2. Congress would not allow silver to be exchanged for gold.3. Dems split: Goldbugs favored gold currency; Silverites wanted unlimited coinage of silver.

For a time, there was fear among many Democrats that the Populist Party would

consume them.

V. Election of 1896 A. Dems & Populists nominated

William Jennings Bryan for Pres. - electrifying

campaigner, but didn’t appeal to NE labor. B. GOP - William McKinley

1. “Front-Porch” campaign.2. Blamed Cleveland & Dems for depression.3. Had support of business & urban workers

C. Populism declines1. Depression over2. New gold strikes led to increased $$ supply.3. Congress adopted gold-based $$ standard.4. Too radical (Ex: govt-owned RR)

Even though Populist Party failed, some of itsreforms will be adopted in the 20th century.

(Ex: Income tax)

William JenningsBryan

WilliamMcKinley