ECONOMIC AND POLITICAL
CHALLENGES
THE GILDED AGE: 1877-1900
Politics in this time period was
characterized by corruption and
inaction…
POLITICAL CORRUPTION WAS CAUSED BY…
the spoils system (patronage) government jobs awarded to loyal party workers & campaign contributors regardless of their qualifications
government workers changed each time a new candidate won office
SPOILS SYSTEM… held political parties together - loyalty
helped each party gain more supporters
boosted political participation
easy way to raise campaign funds
allowed political machines to flourish
CIVIL SERVICE REFORM: Civil Service = working for the
government Reform = change
Pendleton Civil Service Act – 1883 Govt. jobs awarded based on merit system - people earn jobs based on qualifications
created a Civil Service Commission
keep the same workers no matter who is in office
WITH THE GOOD COMES THE BAD… Campaign contributions went down
people weren’t guaranteed a govt. job anymore
Politicians had to find other sources of funds Alliance between govt. and big business became even stronger
CORRUPTION CONTINUES…
POLITICAL INACTION WAS CAUSED BY…1. Balance of power between
White House and Congress (i.e. They couldn’t agree on
anything!)
2. TWO-PARTY STALEMATE
3. VERY LAISSEZ FAIRE GOVERNMENT 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.
4. SERIES OF WEAK PRESIDENTS
“The Forgotten Presidents”presidency a symbolic office
RUTHERFORD B. HAYES (1876-1880) Honest politician
Appointed cabinet based on talent not friendship
Began the downfall of spoils system
JAMES GARFIELD (1881) Gave jobs to people
who deserved them
Assassinated by a man who was turned down for a job
CHESTER ARTHUR (1881-1884)
Pushed for Civil Service reform
GROVER CLEVELAND (1884-1888, 1892-1896)
Only democratic president of the era
The “Veto President”
Exposed corrupt RR practices
Created Department of labor
Tried to lower tariffs (unsuccessfully)
BENJAMIN HARRISON (1888-1892) Weak president
Followed the will of Congress
ECONOMIC ISSUES PLAGUED THE NATION…
TO TARIFF OR NOT TO TARIFF? After the Civil War, Congress raised
tariffs to protect new US industries.
Big business wanted to continue this;consumers did not.
1885 tariffs earned the US $100 million in surplus!
THE CURRENCY QUESTION Government had made paper money during
the Civil War led to inflation stopped printing paper currency after the war
lack of confidence in paper currency
banks stopped payments in gold and silver coins
PANIC OF 1873 Business opportunities, especially in RRs,
had lead investors to excessive debt
Largest government securities dealer went bankrupt started Panic of 1873
banks & businesses closed stock market collapsed
Panic triggered 6-year economic depression
Problem: Gold Standard gold = basis of nation’s currency
limited supply of gold scarce and becoming scarcer
Scarcity of gold: caused deflation – prices went down
existing debts were harder to pay
SOLUTIONS: Greenbacks (paper money)
increased supply = inflation prices will go up
“Free” Silver Allow silver to be minted as well as
gold increased supply = inflation prices will go up
WE WANT CHANGE!!
Americans wanted the federal government to deal with growing social, political, &
economic problems & to curbthe power of the trusts…
NEXT UNIT:
Populists and Progressives!