The Gilded AgeThe Gilded Age

1877-18961877-1896

The Gilded Age• The term Gilded Age comes from the title of a

novel written by Mark Twain and Charles Dudley Warner

• The novel was about political corruption and greed – traits that were very common during the post-war years

• It was a period remembered for the growth of big business and the inability and/or unwillingness of political parties to address major issues

Blacks• The end of slavery did not mean complete

freedom for the blacks• Advances came slow and unevenly across the

South• Many set out to relocate their families and to

look for jobs• The greatest achievement of the Freedman’s

Bureau was in education• Southerners passed legislation (Black Codes)

limiting the freedom of blacks to ensure a stable and subservient workforce

National Labor Union• As early as the 1830s there had been attempts to

organize labor, but most of the ideas were too idealistic

• By the 1850s there were some unions that protected skilled trades

• The Civil War created a need for manual labor and consequently increased the power of unions

• In 1866 the National Labor Union met in Baltimore to seek an eight-hour workday, worker’s cooperatives, and equal rights for women and blacks

Knights of Labor• In 1869 it organized a General Assembly which

petitioned for equal wages and emphasized the need for reform

• In 1872 the NLU disbanded but the Noble and Holy Order of the Knights of Labor was already being formed

• Founded by Uriah Stephens in 1869 it started slowly

• It was one union that accepted most people who had ever worked for a wage

• In 1879 Terence Powderly succeeded Stephens• During the 1880s membership exceeded 700,000• The problem that the unions faced was one of

perception – business and government portrayed unions as socialist organizations bent on anarchy and overthrowing the government

• This perception was not helped by the increase in anarchism in Europe and the rapid growth of organizations promoting revolution

• As people emigrated to the United States many brought more radical ideas about the role of unions and socialism

• Democrats tended to be southern whites, immigrants, Catholics and Jews

• Between Grant and Taft the Republican Party controlled the White House (except for Cleveland’s two terms) – but few presidents won a majority of the popular votes

• For most of the time Democrats controlled the House while Republicans controlled the Senate

• Most attempts to regulate big business were overturned in the courts

• Big business and politicians formed a close alliance they benefited both – accepting bribes and kick-backs was seen by many as acceptable

Rutherford B. Hayes• Hayes was the political antithesis of Grant, but

he was plagued by the Compromise of 1877• In office he was often referred to “His

Fraudulence” he had been nominated only because he offended no one

• The Republican Party split into two factions:Stalwarts – led by Senator Roscoe ConklingHalf-Breeds – led by Senator James Blaine

• The Stalwarts supported Radical southern policy and the spoils system

• The Half-Breeds supported civil service reform• Hayes allied himself to the reformers

James A. Garfield• In 1880 the Stalwarts suggested Grant for a third

term• A political dark-horse James A. Garfield ended

up with the nomination, Chester Arthur as his running mate

• The Democrats nominated Winfield Scott Hancock the winner at Gettysburg

• The election was marred by allegations of bribery before Garfield won with less than 50% of the votes

• In 1881, while walking through the train station at Washington D.C., Garfield was assassinated by Charles Guiteau a deranged office seeker

Chester A. Arthur• Arthur was a supporter of the Stalwarts, but

proved remarkably capable as president• Surprisingly, Arthur distanced himself from the

Stalwarts and worked to create civil service reform

Pendleton Act (1883)• The Pendleton Civil Service Act established an

independent three-member Civil Service Commission that would fill government jobs on the basis of an entrance exam and not favoritism

• Also during his tenure high protective tariffs created a surplus in the treasury

• Many wanted to reduce the tariffs to lower the cost of living

• The result was the “Mongrel Tariff” (1883) with lower rates on some commodities, but higher on others

Election of 1884• The Republican Party dropped Arthur, despite

his record, and nominated Senator Blaine of Maine – leader of the Half-Breeds

• His campaign was based on appealing to core Republican virtues, waving the bloody shirt, and trying to attract the Irish vote by criticizing British foreign policy

• During the campaign the Democrats revealed that Blaine had received kick-backs from the railroads – a disclosure which upset the reform minded Republicans

Mugwumps• Republican leaders withdrew their support and

earned the nickname “goo-goos” (the good government crowd)

• The New York Sun referred to them as Mugwumps (people who sit on the fence)

• The rise of the Mugwumps encouraged the democrats to nominate Grover Cleveland on the platform of reform (Grover the good)

• As governor of New York he had taken on Tammany Hall and vetoed special interest legislation

• Cleveland was a bachelor but it was revealed he had had a relationship with a widow and the women had given birth to a child

• “Ma ma where’s my pa?”

• Cleveland accepted responsibility and made payments for the child

• When a group of Protestant ministers visited the Republican headquarters in New York they referred to the Democratic party as a party of “rum, Romanism, and rebellion”

• Blaine, who was present said nothing to defend the Catholics and as a result he lost the Irish vote

Grover Cleveland• Once in office Cleveland varied little from his

predecessors except to oppose government favors to business

• However he was surrounded by office seekers who wanted political appointments

• Before the election he supported the Pendleton Act, but as president he changed it to allow himself to remove party appointments

• During his tenure he almost doubled the number of federal positions available – and alienated both the Mugwumps and the office seekers

Railroads• During the Civil War railroads

grew enormously• In 1862 the Union Pacific

Railroad started westward from Omaha using Irish laborers

• In California the Central Pacific Railroad, backed by Leland Stanford, with Chinese laborers moved eastward

• In 1869 the transcontinental railroad was completed in Utah

• With the development of steel rails, Westinghouse brakes, and luxurious Pullman cars, rail travel became safer and far more comfortable – although accidents were still common

• Railroads:connected marketsgenerated jobsincreased industrializationhelped people settle the West

• In 1883 four time zones were established• But the railroad companies often broke the laws

such as the Crédit Mobilier, accepting bribes, and creating “pools”

Wabash Railroad v. Illinois (1886)• Since the end of the war the federal government

had examined the idea of regulating railroads• In the Wabash Railroad v. Illinois case the

Supreme Court prohibited the states from regulating rates on interstate traffic

• Cleveland determined to act and to control the railroads

• Congress gave away millions of acres of land to railroad companies to encourage development until it was stopped by Cleveland in 1887

• By 1900 there were four other transcontinental lines

Interstate Commerce Act (1887)• All freight charges on railroads had to be “reasonable

and just”• Railroads were prohibited from granting special rates or

favors, from manipulating the prices by forming pools, and from discriminating against individuals

• The ICC was created by Cleveland as an independent regulatory commission

• The ICC had five members who could investigate railroads and prosecute violators

• Ultimately the commission had little power when forced to prosecute the big companies in court

Big Business• By the end of the century the United States was

the largest manufacturer in the world:a) abundant resourcesb) favorable government policiesc) free capital to investd) entrepreneurial spirit and inventions

• 1876 Alexander Graham Bell invented the telephone

• Thomas Edison invented many inventions such as the electric light bulb and the phonograph

• The Bessemer process allowed steel to be produced that was stronger and cheaper. The “king of steel” was Andrew Carnegie

• Carnegie used vertical integration to control all aspects of his industry including the mining

• John D. Rockefeller used horizontal integration (allied with competitors to create a monopoly) to eliminate other competitors. His big achievement was with Standard Oil

• Men like Rockefeller and Carnegie created trusts to make themselves more powerful

• Rockefeller also used interlocking directorates – put his people on the board of other companies

• J. Pierpont Morgan made a fortune in banking. Morgan bought Carnegie’s empire for $400 million – Carnegie spent the rest of his life giving it away

Gospel of Wealth• Capitalists used Social Darwinism to justify their

success• Social Darwinism also coincided with the ideas of

Adam Smith, especially concerning the laws of supply and demand

• Carnegie wrote The Gospel of Wealth (1901) which claimed wealthy people have power but also an obligation to society

• Baptist preacher Russell H. Conwell preached about “Acres of Diamonds” – everyone who wanted to be rich had the opportunity

• Horatio Alger “luck and pluck”

• Horatio Alger “luck and pluck”

Election of 1888• As the election approached the Democrats

supported the president• The Republicans nominated Benjamin Harrison,

grandson of William Henry Harrison• Harrison was their choice because he had done

little to upset people and make enemies• The main issues were protective tariffs and

pensions for veterans• Big business supported the Republicans hoping

to maintain protective tariffs• Cleveland called the tariffs un-American and

called for free trade

Benjamin Harrison• Cleveland won the popular vote but lost in the electoral

college in an election noted for paid votes• Harrison had seemed to support some type of reform,

but many of his appointments were questionable• He did appoint Theodore Roosevelt to the Civil Service

Commission • In 1890 to repay the veterans for their support Congress

passed the Dependent Pension Act which almost doubled the pension rolls

• Republicans controlled Congress allowing Harrison even greater freedom

Billion Dollar Congress

Granger Movement• In 1866 the Dept. of Agriculture sent Oliver H.

Kelley on a tour of postbellum southern farms• Kelley decided to do something to help the

isolated farmers• In 1867 he founded the Patrons of Husbandry

(The Grange) • By 1874 membership was almost at 1.5 million• Initially to help with the isolation of the farmers

the movement soon changed to become cooperatives for buying and selling crops

• The Grangers then became involved in politics

• Their main concern was the regulation of railroad rates and warehouse rates

• Five states passed Granger Laws which challenged the power of the railroad and warehouse owners

• In Munn v. Illinois (1877) the Supreme Court ruled that states had the right to regulate property in the interest of public good

• Eventually the Granger movement lost its momentum and was replaced in 1875 by the Independent National party (Greenback party) – which emphasized the use of paper money

• But in the 1880 the party declined and disappeared after 1884

Farmer’s Alliance• The first alliance was formed in 1873 • Like the Grange it was aimed at improving the

social and recreational conditions of the farmers• They too, soon became involved in politics• The movement was especially popular in the

South and Midwest as farmers sought help to fight increasing debt and declining prices

• In 1886 the Colored Alliance was formed to represent black farmers

• Also in 1886, Texas suffered a severe drought. President Cleveland vetoed a bill that would have helped the farmers

• In response the farmers challenged the Democrats in the polls

• In 1887 a blizzard swept through the West and devastated many farms. Without government aid many farmers became supportive of the idea of a third-party

• Although many parties appeared the most successful was the Populist party

Populist Party• Involved in the elections between 1892-1908 the

won control of many state legislatures and Kansas even elected a Populist candidate to the Senate

• In 1892 the Populist party met in Omaha to decide on a national platform and nominated James Weaver as their candidate

• The platform was finance, transportation, land, a one-term presidency, and limiting immigration

Haymarket Affair (1886)• The Knights of Labor set a deadline of May 1,

1886 for the implementation of an eight-hour day• On May 3 a strike at the International Harvester

plant in Chicago resulted in the death of one of the strikers

• A small group of anarchists called for a protest to be held at Haymarket Square the following night

• The crowd listened to speakers and then started to disperse – just as policemen arrived and ordered the crowd to go home

• A bomb was thrown at the police, killing one and injuring others

• The police opened fire on the crowd• The police arrested seven anarchists and put

them on trial• Despite a lack of hard evidence all seven were

convicted and sentenced to death• Two were reprieved, one committed suicide, and

four were hanged• Six were German-speaking and one was a

member of the Knights of Labor• Reaction was swift and decisive – the Knights

collapsed

American Federation of Labor• Craft workers often refused to join unions with

non-craft workers, fearing a loss of their prestige• In 1886 several craft unions formed the American

Federation of Labor (AFL) • It was not like the Knights because each union

retained some autonomy• Samuel Gompers was president from the start

until his death in 1924 (except for one year)• Gompers wanted concrete gains for his workers

not just promises of social reform• By 1914 it had over 2 million members

McKinley Tariff Act (1890)• Once in office Harrison started to spend the

money Cleveland had saved.• Congress authorized money for lighthouse,

coastal defenses, pensions, and other projects• Congress passed the McKinley Tariff Act (1890),

which made high protective duties even higher and increased prices for many household commodities.

• In 1890 Congress also passed the Sherman Silver Purchase Act, and agreed to buy 4,500,000 oz of silver every month and to issue paper money equaling the full amount purchased

Sherman Antitrust Act (1890)• The Sherman Antitrust Act was the first

legislation to limit trusts• It was based on the constitutional power to

regulate interstate trade• Stockholders transferred their shares to one

person or trustees who then controlled the company and eliminated competition

• The Sherman Act authorized the government to dismember trusts and to prevent monopolies

• In 1895 the Supreme Court abolished the Sherman Act in the United States v. E. C. Knight Company

The Homestead Strike (1892)• Increasing violence continued to hinder union

progress• At the Homestead Works in Pittsburgh the union

and management (controlled by Andrew Carnegie) enjoyed a working relationship

• In 1889 H. C. Frick became president and he was determined to suppress the union

• By 1891 the Amalgamated Association of Iron and Steel Workers was probably the largest craft union

• In 1892 union contracts were to be renewed

• Carnegie had conveniently gone to Scotland and left the matter to Frick

• Frick wanted to reduce the number of workers and to limit the power of the union – a fact Carnegie knew

• On June 29 the works closed as unionist were locked-out

• Frick built a 12 ft fence around the works and hired 300 Pinkerton detectives

• As the detectives approached the works on barges the meet unionists

• Someone fired and six unionists and three Pinkerton s were killed

• After several days the state militia arrived to protect the detectives

• The strike continued but when a deranged Lithuanian immigrant shot and stabbed Frick, sympathy for the union ended

Election of 1892• The Republicans nominated Benjamin Harrison.

The Democrats nominated Grover Cleveland. The Populists nominated James Weaver

• Cleveland won both the popular vote and the electoral college – Weaver collected over 1 million votes, won several states, and collected 22 electoral votes

The Panic of 1893• One of the most severe economic crises • Caused by:

a) agricultural depressionb) a decline in gold reservesc) unsound railroad financing

• The Philadelphia and Reading Railroad declared for bankruptcy and started a panic on Wall Street

• Over 600 banks closed and millions lost their jobs

Coxey’s Army (1894)• Led by the Populist Jacob Coxey a large number

of unemployed protestors marched on Washington D.C.

• They demanded federal help• Coxey and his family rode in a carriage but in

the capital he was arrested for walking on the grass

• The marchers dispersed without trouble. But the march did scare people who saw it as the start of anarchy

• The Populists were quickly labeled socialists

Pullman Strike (1894)• The Pullman Strike was one of the most

significant work-stoppages in American history• The town of Pullman Illinois housed workers

from the Pullman Palace Car Company• Workers had to pay high rent, utilities, and

purchase goods from the company store• During the Depression of 1893 the company laid

off 3,000 workers and cut wages while maintaining rent and other charges

• When 3 members of the negotiating committee were fired the union called a strike

• Pullman workers were members of the American Railway Union, founded by Eugene V. Debs

• In June the company refused to arbitrate so union workers stopped handling Pullman cars

• In a few weeks the country was almost brought to a halt

• Railroad executives brought strikebreakers from Canada and ordered them to connect the mail cars to the Pullman cars so that the strikers were now affecting the mail

• The U.S. attorney-general deputized over 3,000 men to keep the mail running

• In July President Cleveland sent federal troops to Chicago – despite the fact the Illinois governor did not want them

• Cleveland claimed he had a responsibility to protect the mail

• The attorney-general won an injunction claiming the strike violated the Sherman Anti-Trust Act

• The union called off the strike and on the same day a court sentenced Debs to six months in jail

• In the case of In re Debs (1895) the Supreme Court upheld the decision on the grounds of national sovereignty

Silver v. Gold• In the early 1890s a major British bank failed

and many investors sold off their stocks in American companies for gold

• The gold reserve fell below $100 million and the president had to repeal the Sherman Silver Purchase Act

• With new interest in silver the western states gained significant political power

• The issue of gold v. silver would be a main point of contention in the upcoming election

Election of 1896• The Republicans nominated William McKinley

from Ohio (good war record, congressional track record, well-liked)

• At the democratic convention in Chicago the party was in disarray and could not find a good candidate

• William Jennings Bryan took the stage and delivered his “Cross of Gold” speech and immediately gained the nomination

• He was a silverite from Nebraska• The democrats demanded unlimited coinage of

silver at a ratio of 16-1

• The “Gold Bugs” spread rumors about Bryan and how much money people would lose if the Democrats won the election - “In God we Trust, with Bryan we Bust”

• Mark Hanna, Chairman of the Republican National Committee collected millions from big business

• Republican businessmen placed contingency contract with factories which would be voided if the Democrats won

• In the end McKinley won easily

Plessy vs Ferguson• In 1896 segregation was validated by the

Supreme Court• The Court ruled that “separate but equal” was in

accordance to the equal protection clause of the Fourteenth Amendment

• In reality what it created were two world - one white and one black