Chapter23PoliticalParalysisintheGildedAge,1869–1896

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I.The“BloodyShirt”ElectsGrant

• Agoodgeneral:• PopulacesouredbywranglingofprofessionalpoliticiansinReconstructionera• Notionstillprevailedthatagoodgeneralwouldmakeagoodpresident

– Grantmostpopularnorthernhero:• Haplessgreenhorninpoliticalarena• HisonepresidentialvotehadbeencastforDemocraticticketin1856• Hisculturalbackgroundbreathtakinglynarrow

I.The“BloodyShirt”ElectsGrant(cont.)

• Republicans:• FreedfromUnionpartycoalitionofwardays• NominatedGrantforpresidencyin1868• PlatformcalledforcontinuedReconstructionofSouth• Grant“Letushavepeace”

• Democrats:• Intheirnominatingconvention,denouncedmilitaryReconstructionbutcouldagreeonlittleelse

I.The“BloodyShirt”ElectGrant(cont.)

– Wealthyeasterndelegatesdemandedfederalwarbondsberedeemedingold

– PoorerMidwesterndelegatescalledforredemptioningreenbacks(OhioIdea)

– Debt-burdenedagrarianDemocratshopedtokeepmoremoneyincirculationandkeepinterestrateslow

• Disputesintroducedbittercontestovermonetarypolicythatcontinueduntilcentury'send• Midwesterndelegatesgottheplatformbutnotthecandidate– NomineeHoratioSeymourrepudiatedOhioIdea

I.The“BloodyShirt”ElectGrant(cont.)

• Grantnominated:– RepublicansenergeticallynominatedGrantby“wavingthebloodyshirt”—• RevivedglorymemoriesofCivilWar• Becameforfirsttimeaprominentfeatureofapresidentialcampaign• Grantwon,with214electoralvotesto80forSeymour• Grantreceived3,013,421to2,706,829popularvotes:

– MostwhitevoterssupportedSeymour– Ballotsofthreestill-unreconstructedsouthernstates(Mississippi,Texas,Virginia)notcountedatall

I.The“BloodyShirt”ElectsGrant(cont.)

• Estimated500,000formerslavesgaveGranthismarginofvictory• Toremaininpower,RepublicanpartyhadtocontinuetocontrolSouth—andkeepballotinhandsofgratefulfreedman

– Republicanscouldnottakefuturevictories“forGranted”

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II.TheEraofGoodStealings

– Postwaratmospherestunkofcorruption:• Somerailroadpromoterscheatedgulliblebondbuyers• Someunethicalfinanciersmanipulatedstock-market• Toomanyjudgesandlegislatorsputtheirpowerupforhire• Cynicsdefinedanhonestpoliticianasonewho,whenbought,stayedbought

II.TheEraofGoodStealings(cont.)

• Twonotoriousfinancialmillionairepartners:– “JubileeJim”FiskandJayGould:• CorpulentandunscrupulousFiskprovidedthe“brass”• UndersizedandcunningGouldprovidedthebrains• Concoctedplotin1869tocornergoldmarket:

– PlanwouldworkonlyiffederalTreasuryrefrainedfromsellinggold

II.TheEraofGoodStealings(cont.)

II.TheEraofGoodStealings(cont.)

• InfamousTweedRing:– Displayedethicsofage:– “Boss”Tweedemployedbribery,graft,andfraudulentelectionstomilkmetropolisof$200million:• Honestcitizenscowedintosilence• Protestersfoundtaxassessmentsraised• Tweed'sluckfinallyranout:

– NewYorkTimespublisheddamningevidencein1871– Refused$5millionbribenottopublishit

II.TheEraofGoodStealings(cont.)

• GiftedcartoonistThomasNastpilloriedTweedmercilessly.

• NewYorkattorneySamuelJ.Tildenheadedprosecution.

• Unbailedandunwept,Tweeddiedbehindbars.

III.ACarnivalofCorruption

• Misdeedsoffederalgovernmentleaders:– CreditMobilierscandal(1872):• UnionPacificRailroadinsidersformedCreditMobilierconstructioncompany:– Thenhiredthemselvesatinflatedpricestobuildrailroadline– Earneddividendsashighas348percent– Companydistributedsharesofitsvaluablestocktokeycongressmen

– Newspaperexposeandcongressionalinvestigationledto:

III.ACarnivalofCorruption (cont.)

– Formalcensureoftwocongressmen– Revelationthatvice-presidentacceptedpaymentsfromCreditMobilier

• BreathofscandalinWashingtonreekedofalcohol:– In1874-1875,WhiskeyRingrobbedTreasuryofmillionsinexcise-taxrevenue

– Grant'sownprivatesecretaryamongculprits– Grantvolunteeredawrittenstatementtojurythathelpedexoneratethief

• Bribes:– SecretaryofWarWilliamBelknap(1876)forcedtoresignafterpocketingbribesfromsupplierstoIndianreservations

– Grantacceptedhisresignation“withgreatregret”

IV.TheLiberalRepublicanRevoltof1872

• LiberalRepublicanparty:– Slogan“TurntheRascalsOut”urgedpurificationofWashingtonandendtomilitaryReconstruction

– MuffedchancewhenatCincinnaticonventiontheynominated:• ErraticHoraceGreeley,editorofNewYorkTribune• Hewasdogmatic,emotional,petulant,andnotoriouslyunsoundinhispoliticaljudgments

IV.TheLiberalRepublicanRevoltof1872(cont.)

• Democrats:– EndorsedGreeley'scandidacy– Hehadblastedthemastraitors,slaveshippers,saloonkeepers,horsethieves,andidiots

– Hepleasedthemwhenhepleadedforclaspinghandsacross“thebloodychasm”

– RepublicansdutifullyrenominatedGrant– Votershadtochoosebetweentwonon-politicians,neitherofwhomtrulyqualified

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IV.TheLiberalRepublicanRevoltof1872(cont.)

• Electionof1872:• RepublicansdenouncedGreeleyasatheist,communist,free-lover,vegetarian,andcosignerofJeffersonDavis'sbailbond• DemocratsderidedGrantasignoramus,drunkard,swindler• Republicanschanting“Grantusanotherterm”pulledpresidentthrough:– Electoralcount:286forGrantto66forGreeley– Popularvote:3,596,745forGrant;2,843,446forGreeley

V.Depression,Deflation,andInflation

• Panicof1873:• Grant'swoesdeepenedinparalyzingeconomy:

– Ageofunbridledexpansion– Overreachingpromoterslaidmorerailroadtrack,sunkmoremines,erectedmorefactories,sowedmoregrainfieldsthanexistingmarketscouldbear

– Bankersmadetoomanyimprudentloanstofinancetheseenterprises

– Profitsfailedtomaterialize;loanswentunpaid;wholecredit-basedeconomyfluttereddownward

– Boomtimesbecamegloomtimesasmorethan15,000businesseswentbankrupt

V.Depression,Deflation,and Inflation(cont.)

– BlackAmericanshardhit– Freedman'sSavingandTrustCompanyhadmadeunsecuredloanstoseveralcompaniesthatwentunder

– Blackdepositorswhohadentrustedover$7milliontobankslosttheirsavings

– Blackeconomicdevelopmentandblackconfidenceinsavingsinstitutionswentdownwithit

– Hardtimesinflictedworstpunishmentondebtors– Proponentsofinflationbreathednewlifeintoissueofgreenbacks

– Agrariananddebtorgroups—“cheapmoney”supporters—clamoredforreissuanceofgreenbacks

V.Depression,Deflation,andInflation(cont.)

• “Hard-money”advocatescarriedday:• 1874persuadedGranttovetobilltoprintmorepapermoney• ScoredanothervictoryinResumptionAct1875:

– Pledgedgovernmenttofurtherwithdrawgreenbacksfromcirculationand

– Toredemptionofallpapercurrencyingoldatfacevalue,beginningin1879

• Debtorslookedforreliefinpreciousmetalsilver

V.Depression,Deflation,and Inflation(cont.)

• In1870sTreasurymaintainedanounceofsilverworthonly1/16comparedtoanounceofgold• Silverminersstoppedofferingsilvertofederalmints• Congressdroppedcoinageofsilverdollars(1873)• Withnewsilverdiscoveriesinlate1870s,productionshotupwhichforcedsilverpricestodrop• Demandforcoinageofmoresilverwasnothingmorenorlessthananotherschemetopromoteinflation

V.Depression,Deflation,andInflation(cont.)

• Hard-moneyRepublicansresistedschemeandcalledonGranttoholdline.

• Hedidnotdisappointthem:– Treasuryaccumulatedgoldstocksuntildayofresumptionofmetallic-moneypayments

– Coupledwithreductionofgreenbacks,thispolicycalled“contraction:”• Hadnoticeabledeflationaryeffect,worseningimpactofdepression

V.Depression,Deflation,andInflation(cont.)

• Newpolicyrestoredgovernment'screditrating• Broughtembattledgreenbacksuptofullfacevalue• WhenRedemptionDaycamein1879,fewgreenbackholdersbotheredtoexchangelighterandmoreconvenientbillsforgold• Republicanhard-moneypolicyhadpoliticalbacklash:

– In1874,helpedelectDemocraticHouseofRepresentatives– 1878:spawnedGreenbackLaborParty,polledoveramillionvotes,electedfourteenmembersofCongress

– Contestovermonetarypolicyfarfromover

VI.PallidPoliticsintheGildedAge

• GildedAge:– Sarcasticnamegiventothree-decade-longpost-CivilerabyMarkTwainin1873

– Everypresidentialelectionasqueaker– MajoritypartyinHouseswitchedsixtimesinsevensessionsbetween1869and1891

– Fewsignificanteconomicissuesseparatedmajorpartiesyetelectionsferociouslycompetitive

– Nearly80%ofthoseeligible,voted

VI.PallidPoliticsintheGildedAge(cont.)

– Howcanparadoxofpoliticalconsensusandpartisanfervorbeexplained?• Sharpethnicandculturaldifferencesinmembershipoftwoparties:– Distinctionsofstyleandtone,especiallyreligioussentiment– RepublicansadheredtocreedsthattracedlineagetoPuritanism:» Strictcodesofpersonalmorality» Believedgovernmentshouldplayroleinregulatingbotheconomicandmoralaffairsofsociety

VI.PallidPoliticsintheGildedAge(cont.)

– Democrats:» ImmigrantLutheransandRomanCatholicsfiguredheavily» Morelikelytoadheretofaithsthattookalesssternviewofhumanweakness

» Religionprofessedtolerationinanimperfectworld» Spurnedgovernmenteffortstoimposesinglemoralstandardonentiresociety

– Differencesintemperamentandreligiousvaluesproducedraucouspoliticalcontestsatlocallevel,esp.onissueslikeprohibitionandeducation

VI.PallidPoliticsintheGildedAge(cont.)

• Democrats:– SolidelectoralbaseinSouth– Innorthernindustrialcities—withimmigrantsandwell-oiledpoliticalmachines

• Republicans:– StrengthlargelyinMidwestandrural,small-townNortheast

– FreedmeninSouthcontinuedtovoteRepublicaninsignificantnumbers

VI.PallidPoliticsintheGildedAge(cont.)

– MembersofGrandArmyoftheRepublic(GAR)—politicallypotentfraternalorganizationofseveralhundredthousandUnionveteransofCivilWar

– Patronage—lifebloodofbothparties:• Jobsforvotes,kickbacks,partyservice• BoisterousinfightingoverpatronagebesetRepublicanpartyin1870sand1880s• Roscoe(“LordRoscoe”)Conkling—embracedtime-honoredsystemofcivil-servicejobsforvotes

VI.PallidPoliticsintheGildedAge(cont.)

– Half-Breedswantedsomecivil-servicereform:• ChampionwasJamesG.BlaineofMaine• Twopersonalitiessucceededonlyinstalematingeachotheranddeadlockingparty

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VII.TheHayes-TildenStandoff,1876

• Grantthoughtaboutathird-term:– Housederailedthisby233to18:• Passedresolutiononanti-dictatorimplicationsoftwo-termtradition

• Republicans– Turnedtocompromisecandidate,RutherfordB.Hayes,“TheGreatUnknown:”• Foremostqualification:hailedfrom“swing”stateOhio• Servedthreetermsasgovernor

VII.TheHayes-TildenStandoff,1876(cont.)

• Democrats:– NomineewasSamuelJ.Tilden:• RisentofamebyjailingBossTweedinNewYork• 185electoralvotesneeded• Tildengot184withtwentydisputedvotesinfourstates—threeoftheminSouth(seeMap23.1)• Tildenpolled247,448morepopularvotesthanHayes,4,284,020to4,036,572• Bothpartiessent“visitingstatesmen”tocontestedLouisiana,SouthCarolina,Florida

Map 23-1 p494

VII.TheHayes-TildenStandoff,1876(cont.)

• Disputedstates:– Allsenttwosetsofreturns:oneDemocraticandoneRepublican:

– Dramaticconstitutionalcrisis:• ConstitutionmerelyspecifiedthatelectoralreturnsfromstatesbesenttoCongress• TheninpresenceofHouseandSenate,theybeopenedbypresidentofSenate(seeTwelfthAmendmentinAppendix)

VII.TheHayes-TildenStandoff,1876(cont.)

• Whoshouldcountthem?– Onthispoint,Constitutionsilent:• IfcountedbypresidentofSenate(aRepublican),Republicanreturnswouldbeselected• IfcountedbySpeakerofHouse(aDemocrat),Democraticreturnswouldbechosen• Howcouldimpasseberesolved?

VIII.TheCompromiseof1877andtheEndofReconstruction

• Compromiseof1877:• DeadlockbrokenbyElectionCountAct:– PassedbyCongressinearly1877– SetupelectoralcommissionoffifteenmenselectedfromSenate,HouseandSupremeCourt(seeTable23.1)

– February1877,amonthbeforeInaugurationDay,SenateandHousemettosettledispute

Table 23-1 p494

VIII.TheCompromiseof1877andtheEndofReconstruction(cont.)

– Rollofstatestolledoffalphabetically– Florida,firstofthreesouthernstateswithtwosetsofreturns—• Disputeddocumentsreferredtoelectoralcommission,whichsatinnearbychamber• Afterprolongeddiscussion,members:

– Bypartisanvoteof8Republicansto7Democrats,votedtoacceptRepublicanreturns

– OutragedDemocratsinCongress,smellingdefeat,under-tooktolaunchfilibuster

VIII.TheCompromiseof1877andtheEndofReconstruction(cont.)

• OtherpartsofCompromiseof1877:• DemocratsagreedHayesmighttakeofficeinreturnforremovingU.S.troopsfromtwostatesinwhichtheyremained,LouisianaandSouthCarolina• RepublicansassuredDemocratsaplaceatpresidentialpatronagetrough• AndsupportedbillsubsidizingTexasandPacificRailroad'sconstructionofsoutherntranscontinentalline

VIII.TheCompromiseof1877andtheEndofReconstruction(cont.)

• Dealheldtogetherlongenoughtobreakdangerouselectoralstandoff:– DemocratspermittedHayestoreceiveremainderofdisputedreturns—allbypartisanvoteof8to7:• Soexplosive,itwassettledonlythreedaysbeforenewpresidentswornintooffice

VIII.TheCompromiseof1877andtheEndofReconstruction(cont.)

• Compromiseboughtpeaceataprice:– Partisanviolenceavertedbysacrificingcivilrightsofsouthernblacks

–WithHayes-Tildendeal,Republicanpartyabandonedcommitmenttoracialequality

• CivilRightsActof1875:– LastgaspoffeebleradicalRepublicans– SupremeCourtpronouncedmuchofactunconstitutionalinCivilRightsCases(1883)

VIII.TheCompromiseof1877andtheEndofReconstruction(cont.)

• CourtdeclaredFourteenthAmendmentprohibitedonlygovernmentviolationofcivilrights,notdenialofcivilrightsbyindividuals• WhenPresidentHayeswithdrewfederaltroopsthatwereproppingupReconstructiongovernments,Republicanregimescollapsed

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IX.TheBirthofJimCrowinthePost-ReconstructionSouth

• DemocraticSouthsolidified:• Swiftlysuppressednow-friendlessblacks• WhiteDemocrats(“Redeemers”),relyingonfraudandintimidation,reassumedpoliticalpower• Blackwhotriedtoassertrightsfacedunemployment,eviction,andphysicalharm• Manyblacksforcedintosharecroppingandtenantfarming• “Crop-lien”systemwherestorekeepersextendedcredittosmallfarmersforfoodandsupplies,inreturnforlienonharvest

IX.TheBirthofJimCrowinthePost-ReconstructionSouth(cont.)

– Farmersremainedperpetuallyindebt– Southernblackscondemnedtothreadbarelivingunderconditionsscarcelybetterthanslavery(seeMay23.2)

– Blacksforcedintosystematicstate-levellegalcodesofsegregationknownasJimCrowlaws

– Southernstatesenactedliteraryrequirements,voter-registrationlaws,andpolltaxes

Map 23-2 p496

IX.TheBirthofJimCrowinthePost-ReconstructionSouth(cont.)

– Toleratedviolentintimidationofblackvoters

• SupremeCourt:– ValidatedSouth'ssegregationistsocialorderinPlessyv.Ferguson(1896):• Ruled“separatebutequal”facilitiesconstitutionalunder“equalprotection”clauseofFourteenthAmendment• Segregatedininferiorschoolsandseparatedfromwhitesinvirtuallyallpublicfacilitiesincludingrailroadcars,theaters,andrestrooms

IX.TheBirthofJimCrowinthePost-ReconstructionSouth(cont.)

• SouthernwhitesdealtharshlywithanyblackwhodaredtoviolateSouth'sracialcodeofconduct• Recordnumberofblackslynchedin1890s:

– Mostoftenfor“crime”ofassertingthemselvesasequals(seeTable23.2)

• WouldtakeasecondReconstruction,nearlyacenturylater,toredressracistimbalanceofsouthernsociety

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Table 23-2 p497

X.ClassConflictsandEthnicClashes

• Scenesofclassstruggle:– Railroadworkersfacedparticularlyhardtimes:• Eventhoughrailroadscontinuetomakehugeprofits• Workersstruckwhenwagesweregoingtocutby10%• PresidentHayessentinfederaltroopstoquellunrestbystrikinglaborers• Failureofrailroadstrikeexposedweaknessoflabormovement

X.ClassConflictsandEthnicClashes(cont.)

• Federalcourts,U.S.Army,statemilitias,localpolicehelpedkeepbusinessoperatingatfullspeed.– Racalandethnicissuesfracturedlaborunity:• Divisionsesp.markedbetweenIrish&ChineseinCalifornia:– Chinesecameoriginallytodigingoldfieldsandtosledgehammertracksoftranscontinentalrailroads

– Whengoldpeteredoutandtrackslaid,manyreturnedhometoChinawithmeagersavings

• X.ClassConflictsandEthnicClashes(cont.)

– Thosewhoremainedfacedextraordinaryhardships:• Menialjobs:cooks,laundrymen,domesticservants• Withoutwomenorfamilies,deprivedofmeanstoassimilate• InSanFrancisco,DenisKearneyincitedfollowerstoviolentabuseofhaplessChinese• ChineseExclusionAct(1882):

– ProhibitingnearlyallfurtherimmigrationfromChina– Doorstayedshutuntil1943

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X.ClassConflictsandEthnicClashes(cont.)

– Native-bornChinese:• SupremeCourtinU.S.v.WongKimArk(1898)statedFourteenthAmendmentguaranteedcitizenshiptoallpersonsborninUnitedStates• Doctrineof“birthrightcitizenship”ascontrastedwith“rightofblood-tie”(citizenshipbasedonparents'nationality)providedprotectiontoChineseAmericansaswellasotherimmigrants

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XI.GarfieldandArthur

• Presidentialcampaignof1880:– Hayesamanwithoutaparty– JamesGarfieldfromelectorallypowerfulstateofOhio

– Vice-presidentialrunningmateanotoriousStalwarthenchman,ChesterArthurofNewYork

– DemocraticcandidateCivilWarheroWinfieldScottHancock

Figure 23-1 p499

XI.GarfieldandArthur(cont.)

• Statistics:– Garfieldpolledonly39,213morevotesthanHancock—4,453,295to4,414,082

– Margininelectoralvotesacomfortable214to155– Disappointedandderangedofficeseeker,CharlesGuiteau,shotPresidentGarfieldatWashingtonrailroadstation

XI.ChesterandArthur(cont.)

– Garfieldlingeredinagonyfor11weeks– DiedonSeptember19,1881:• Guiteaufoundguiltyofmurderandhanged• Garfield'smurderhadonepositiveoutcome:

– Shockedpoliticiansintoreformingshamefulspoilssystem– UnlikelyinstrumentofreformwasChesterArthur

– PendletonAct(1883):• MagnaCartaofcivil-servicereform• Madecompulsorycampaigncontributionsfromfederalemployeesillegal

XI.ChesterandArthur(cont.)

• EstablishedCivilServiceCommissiontomakeappointmentstofederaljobsonbasisofcompetitiveexaminationsratherthan“pull”• Atfirstcoveringonly10%offederaljobs,civil-servicedidreininmostblatantabuses• “Plum”federalpostsnowbeyondreach,politicians:

– Forcedtolookelsewhereformoney,“mother'smilkofpolitics”

– Increasinglyturnedtobigcorporations– Newbreedof“boss”emerged

XI.ChesterandArthur(cont.)

– PendletonAct:• Partiallydivorcedpoliticsfrompatronage• Helpeddrivepoliticiansinto“marriagesofconvenience”withbig-business(seeFigures23.1)

– PresidentArthur'sdisplayofintegrityoffendedtoomanypowerfulRepublicans

– Hispartyturnedhimouttopasture– In1886,hediedofcerebralhemorrhage

XII.TheBlaine-ClevelandMudslingersof1884

• JamesG.Blaine:• PersistenceinseekingRepublicannominationpaidoffin1884• ClearchoiceofconventioninChicago• Somereformers,unabletoswallowBlaine,boltedtoDemocrats—calledMugwumps

• Democrats:– Turnedtoreformer,GroverCleveland• FrommayorofBuffalotogovernorshipofNewYorkandpresidentialnominationinthreeyears

XII.TheBlaine-Cleveland Mudslingersof1884(cont.)

• Cleveland'sadmirerssoongotshock:– Learnedhehadanillegitimateson– Madefinancialprovisionforson

• Campaignof1884sanktoperhapslowestlevelinAmericanexperience:– Personalities,notprinciples,claimedheadlines

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Table 23-3 p501

XII.TheBlaine-Cleveland Mudslingersof1884(cont.)

– ContesthingedonstateofNewYork,whereBlaineblunderedbadlyinclosingdaysofcampaign

– RepublicanclergycalledDemocratspartyof“Rum,Romanism,andRebellion”insultingculture,faith,andpatriotismofNewYork'sIrishAmericanvoters

– Blainerefusedtorepudiatephrase– NewYorkIrishvotegavepresidencytoCleveland

– ClevelandsweptsolidSouthandsqueakedintoofficewith219to182electoralvotes

– 4,879,507to4,850,293popularvotes

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XIII.“OldGrover”TakesOver

– Clevelandin1885wasfirstDemocrattotakeoathofpresidencysinceBuchanan,28yearsearlier

– Clevelandamanofprinciples:• Staunchapostleofhands-offcreedoflaissez-faire• Summedupphilosophyin1887whenhevetoedbilltoprovideseedfordrought-ravagedTexasfarmers:– “Thoughthepeoplesupportthegovernment,”“thegovernmentshouldnotsupportthepeople”--Cleveland

XIII.“OldGrover”TakesOver(cont.)

• Outspoken,unbending,andhot-tempered• NarrowedNorth-SouthchasmbynamingtwoformerConfederatestocabinet• Clevelandwhipsawedbetweendemandsof:

– Democraticfaithfulwantjobs– Mugwumps,whohadhelpedelecthim,wantreform– Atfirsthefavoredreform,buteventuallycavedtocarpingsofDemocraticbosses

– Firedalmosttwo-thirdsof120,000federalemployees,including40,000incumbent(Republican)postmasters,tomakeroomfor“deservingDemocrats”

XIII.“OldGrover”TakesOver(cont.)

• MilitarypensionsgaveClevelandpoliticalheadaches:– PowerfulGrandArmyoftheRepubliclobbiedforhundredsofpensionbillsthatgrantedbenefitsto» Deserters» Bountyjumpers» Menwhoneverserved» Formersoldierswhoincurreddisabilitiesnotconnectedtowar

– Conscience-drivenpresidentreadeachbillcarefully:» Vetoedseveralhundred» LaboriouslypennedindividualvetomessagestoCongress

XIV.ClevelandBattlesforaLowerTariff

• Tariff:• IncreasedtoraiserevenuesforCivilWarmilitary• Republicansprofitedfromhighprotection• Pileduprevenueatcustomhouses• By1881Treasuryhadannualsurplusof$145million• Mostgovernmentincome,pre-incometax,camefromtariff

XIV.ClevelandBattlesforaLowerTariff(cont.)

• Surpluscouldbereduced:– Squanderitonpensionsand“porkbarrel”bills—curryfavorwithveteransandself-seekers

– Lowertariff—bigindustrialistsvehementlyopposed

– ClevelandknewlittleandcaredlessabouttariffbeforeenteringWhiteHouse

– Ashestudiedtariff,hefavoreddownwardrevisionoftariffschedules

XIV.ClevelandBattlesforaLowerTariff(cont.)

–Wouldmeanlowerpricesforconsumersandlessprotectionformonopolies

–WouldmeanendtoTreasurysurplus– Clevelandsawhisdutyandoverdidit:• MadeappealtoCongresslate1887• Democratsfrustrated• Republicansrejoicedathisapparentrecklessness:

– Claimedlowertariffswouldmeanhighertaxes,lowerwages,andincreasedunemployment

• Firsttimeinyears,arealissuedividedtwoparties

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XIV.ClevelandBattlesforaLowerTariff(cont.)

• Upcoming1888presidentialelection:– DemocratsdejectedlyrenominatedClevelandinSt.Louisconvention:

– RepublicansturnedtoBenjaminHarrison:• GrandsonofformerpresidentWilliamHenry(“Tippecanoe”)Harrison• Twopartiesfloodedcountrywith10millionpamphletsontariff• Republicansraised$3million—heftiestyet—largelyby“fryingthefat”ofnervousindustrialists

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XIV.ClevelandBattlesforaLowerTariff(cont.)

• Moneyusedtolineupcorrupt“votingcattle”knownas“repeaters”and“floaters”• InIndiana,crucial“swing”state,votespurchasedforasmuchas$20each

– Electionday:• HarrisonnosedoutCleveland233to168electoralvotes• Changeof7,000N.Y.ballotswouldhavereversedoutcome• Clevelandpolledmorepopularvotes:

– 5,537,857to5,447,129• BecamefirstsittingpresidentdefeatedsinceMartinVanBurenin1840

XV.TheBillion-DollarCongress

• Republicaninoffice:– HadonlythreemorevotesthannecessaryinHouseforquorum

– DemocratsobstructedHousebusinessbyrefusingtoanswerrollcalls:• Demandedrollcallstodeterminepresenceofquorum• Employedotherdelayingtactics

– NewRepublicanSpeakerofHouse:ThomasB.ReedofMaine

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XV.TheBillion-DollarCongress (cont.)

• ReedbentHousetohisimperiouswill• CountedaspresentDemocratswhohadnotansweredrollandwho,rulebookinhand,deniedtheywerelegallythere• Bysuchtactics“Czar”Reeddominated“Billion-DollarCongress”—firsttoappropriatethatsum– ShoweredpensionsonCivilWarveterans– Increasedgovernmentpurchasesofsilver– PassedMcKinleyTariffActof1890:

» Boostedratestohighestpeacetimelevel» Averageof48.4percentondutiablegoods

XV.TheBillion-DollarCongress(cont.)

• ResultsofMcKinleyTariffActof1890:– Debt-burdenedfarmershadnochoicebuttobuymanufacturedgoodsfromhigh-pricedprotectedindustrialists

– Compelledtoselltheiragriculturalproductsinhighlycompetitive,unprotectedworldmarkets

– MountingdiscontentagainstTariffcausedmanyruralvoterstoriseinanger

– Incongressionalelection(1890)Republicanslostmajority—seatsreducedto88asopposedto235Democrats

– EvenMcKinleydefeated– NewCongressincluded9fromFarmers'Alliance—militantorganizationofsouthernandwesternfarmers

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XVI.TheDrumbeatofDiscontent• People'spartyor“Populists”:– RootedinFarmers'Alliance;metinOmaha(1892)• Platformdenounced“prolificwombofgovernmentalinjustice”• Demandedinflationthroughfreeandunlimitedcoinageofsilver—16ouncesofsilverto1ounceofgold• Calledforgraduatedincometax• Governmentownershipofrailroadsandtelegraph• DirectelectionofU.S.Senators;one-termlimitonpresidency;adoptionofinitiativeandreferendumtoallowcitizenstoshapelegislationdirectly

XVI.TheDrumbeatofDiscontent(cont.)

Shorterworkdayandimmigrationrestrictions– PopulistsuproariouslynominatedGreenbacker,GeneralJamesWeaver

– HomesteadStrike(1892):• AtAndrewCarnegie'sHomesteadsteelplant,nearPittsburgh,officialscalledin300armedPinkertondetectivestocrushstrikebysteelworkersoverpaycuts• StrikersforcedPinkertonassailantstosurrenderafterviciousbattlethatleft10deadand60wounded• Aftertroopsentered,unionbroken

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XVI.TheDrumbeatofDiscontent(cont.)

• Populists'remarkableshowing:– Inpresidentialelection(seeMap23.3)– Achieved1,029,846popularvotesand22electoralvotesforWeaver

– Oneoffewthirdpartiestowinelectoralvotes– Fellfarshortofelectoralmajority– PopulistsvotescamefromonlysixMidwesternandwesternstates;onlyfour(Kan.Colo.Idaho,Nev.)fellcompletelyintoPopulistbasket

Map 23-3 p506

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XVI.TheDrumbeatofDiscontent(cont.)

• Southunwillingtosupportnewparty:– onemillionblackfarmersorganizedColoredFarmers'NationalAlliance:• Sharedmanycomplaintswithpoorwhitefarmers• Populistleadersreachedouttoblackcommunity• Stressedcommoneconomicproblems• Blackleaders,disillusionedwithRepublicanparty,responded

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XVI.TheDrumbeatofDiscontent(cont.)

• Alarmed,whiteeliteinSouthplayeduponracialantagonismstocounterPopulists'appealandtowoopoorwhitesbacktoDemocraticparty• Southernblackswereheavylosers• Whitesouthernersusedliteracytestsandpolltaxestodenyblacksthevote• Grandfatherclause:

– Exemptedfromnewrequirementsanyonewhoseforebearvotedin1860

– Whenblackslaveshadnotvotedatall– Morethanacenturywouldpassbeforesouthernblackscouldagainvoteinconsiderablenumbers

XVI.TheDrumbeatofDiscontent(cont.)

• JimCrowlaws:• Imposedracialsegregationinpublicplaces:

– Includinghotelsandrestaurants– Enforcedbylynchingsandotherformsofintimidation

– CrusadetoeliminateblackvotehaddireconsequencesforPopulistparty:

– TomWatsonabandonedinterracialappeal;becamevociferousracist

– Populistpartylapsedintovileracism;advocatedblackdisfranchisement

XVII.ClevelandandDepression

• Clevelandinofficeagain(1893):– Onlypresidenteverreelectedafterdefeat– SameCleveland,butnotsamecountry:• Debtorsupinarms• Workersrestless• Devastatingdepressionof1893burst:

– Lastedforfouryears– Mostpunishingeconomicdownturnof19thcentury

XVII.ClevelandandDepression (cont.)

– Economicdepressionof1893--causes:• Splurgeofoverbuildingandspeculation• Labordisorders;ongoingagriculturaldepression• Free-silveragitationdamagedAmericancreditabroad• U.S.financespinchedwhenEuropeanbanksbegantocallinloans

– Depressionrandeepandfar:• 8,000businessescollapsedinsixmonths• Dozensofrailroadslineswentintoreceivers'hands

XVII.ClevelandandDepression (cont.)

• Soupkitchensfedunemployed• Gangsofhoboes(“tramps”)wanderedcountry• Localcharitiesdidtheirfeeblebest• U.S.government(boundbylet-nature-take-itscoursephilosophy)sawnolegitimatewaytorelievesuffering

– Cleveland,whohadearlierbeenbotheredbyasurplus,nowburdenedwithdeepeningdeficit:• Treasuryrequiredtoissuelegaltendernotesforsilverbullionitbought

XVII.ClevelandandDepression (cont.)

• Ownersofpapercurrencywouldpresentitforgold• Bylaw,noteshadtobereissued• Newholderswouldrepeatprocess• Drainedgoldin“endless-chain”operation• GoldreserveinTreasurydroppedbelow$100million

– ClevelandsoughtrepealofShermanSilverPurchaseActof1890

– Todoso,hesummonedCongressintospecialsession• Clevelanddevelopedmalignantgrowthinhismouth:

– Removedwithextremesecrecy

XVII.ClevelandandDepression (cont.)

• Ifhehaddied,VicePresidentAdlaiStevenson,a“soft-money”person,wouldbepresident—– wouldhavedeepenedcrisis

• InCongress,debateoverrepealofsilveractranitsheatedcourse:– WilliamJenningsBryanchampionedfreesilver– Friendsofsilverannounced“hellwouldfreezeover”beforeCongresswouldpassrepeal

– Clevelandbrokefilibuster» AlienatedDemocraticsilveriteslikeBryan» Disruptedhispartyatstartofhisterm

XVII.ClevelandandDepression (cont.)

• RepealofShermanSilverPurchaseAct:– OnlypartiallystoppeddrainofgoldfromTreasury• February1894,goldreservesankto$41million• UnitedStatesindangerofgoingoffgoldstandard• ClevelandfloatedtwoTreasurybondissuesin1894totalingover$100million• “Endless-chain”operationscontinued• Early1895ClevelandturnedindesperationtoJ.P.Morgan,“thebankers'banker,”andheadofaWallStreetsyndicate

XVII.ClevelandandDepression (cont.)

• AftertensenegotiationsatWhiteHouse,thebankersagreedtolendgovernment$65millioningold• Chargedcommissionof$7million• Didmakesignificantconcessionwhenbankersagreedtoobtainone-halfofgoldabroad• Loan,atleasttemporarily,helpedrestoreconfidenceinnation'sfinances

XVIII.ClevelandBreedsaBacklash

• Golddealstirredupnation:– Symbolizedallthatwaswickedinpolitics:• Cleveland'ssecretivedealingswithMorgansavagelycondemnedas“sellout”ofnationalgovernment• Clevelandcertainhehaddonenowrong

• ClevelandsufferedfurtherembarrassmentwithWilson-Gormantariffin1894.

XIII.ClevelandBreedsaBacklash (cont.)

• Wilson-Gormantariff:– Democratspledgedtolowertariff– ButbillthatmadeitthroughCongressloadedwithspecial-interestprotection

– Outraged,Clevelandallowedbilltobecomelawwithouthissignature:• Contained2%taxonincomesover$4,000• WhenSupremeCourtstruckdownincome-taxprovisionin1894,Populistanddisaffectedsawproofcourtsweretoolsofplutocrats

XIII.ClevelandBreedsaBacklash (cont.)

• Democrats'politicalfortunes:– Sufferedseveralsetbacks:• HouseDemocratsdislodgedin1984

– Republicanswoncongressionalelectioninlandslide– 244seatsto105forDemocrats– Republicanslookedforwardtopresidentialraceof1896

• Clevelandfailedtocopewitheconomiccrisisof1893:– Becameoneof“forgettablepresidents”alongwithGrant,Hayes,Garfield,Arthur,andHarrison

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