Chapter 19: From Stalemate to Crisis

Party Loyalties

– Both parties less about party policies, more about:• Religion• Tradition• Region• Culture

– Democrats• White Southerners• Catholics• Recent immigrants• Poor workers

– Republicans• Northern Protestants• “Old Stock” citizens• Middle Class• Favored Issues like:

– Immigration Restrictions

– Temperence

The National Government

• Few Responsibilites– Mail– National Defense– Foreign Affairs– Tax Collection/Tariffs– Some economic infrastructure– Civil War Pension System• Some wanted to pass old-age pension system for all• Corruption and patronage

Presidents and Patronage

• Political patronage: the use of state resources to reward individuals for their electoral support. Similar to Spoils System

• Patronage hindered ability of some Presidents to govern– Rutherford B. Hayes– Stalwarts and Half-breeds• Competing for Republican power and share of

patronage• Overshadowed Hayes Presidency

Garfield Assassinated

• Shot by Stalwarts opposed to his civil service reform

• Lived for 2 months– Alexander Graham Bell and Garfield• How the new metal spring coil mattress helped kill the

President.

Sherman Anti-Trust Act of 1890

• Popular demand for curbing power of trusts• Used more against unions

Grangers

• Origins: – The Grange: Social and self-help association• Later focus on political change: Depression of 1873• Formed after Civil War:

– Learn new scientific methods– Create community support

– Depression of 1873• Caused decline in farm prices• Rise in membership to 800,000 (20,000 lodges)

New Demands/Goals

• Marketing cooperatives– Eliminate the middleman– Cooperative political action• Stop monopoly power of the Railroads• Farmer’s Declaration of Independence

– “Free themselves from the tyranny of monopoly”• Results

– Cooperative stores– Creameries– Warehouses– Businesses– Montgomery Ward: Mail-order business

• PAC: Political Action Committee– Worked to elect legislators– Gained control of some legislatures• Sought to regulate railroads

• Results– Courts undid many laws– Recovery of late 1870’s • Diminished interest• Membership shrinks to 100,000 by 1880

Farmer’s Alliances

• Southern Alliance 1880- 4 million members• Northwestern Alliance• Accomplishments– Formed cooperatives: Eliminate middleman• Stores• Banks• Processing plants

– Replace destructive competition with cooperation

Women and the Alliances

• Full voting members• Lecturers• Office holders• Mary Lease: “raise less corn and more hell”• Many urged temperance: – anti-alcohol movement

Populism

• Formed from different farm groups and alliances.

• Appeal– Small family farmers • with limited access to credit• Sharecroppers and tenant farmers• Marginalized because of geography• Sense of new found community

– Pushed for:• Black members– Reluctantly allowed into movement– Whites dominated the leadership• Pressure from Southern states : to maintain white

supremacy.

Populist Platform

• Free Silver• Anti-National Bank• Direct of election of Senators• Govt. store houses to establish – Bumper Crops– Allows price of crops to be manipulated.

• Nationalization of – Utilities and Railroads

• Graduated Income Tax

• Evidence of bigotry/anti-Semitism• Challenge to Laisseiz-faire Economics– Growth should focus on the needs of the people

The Panic of 1893

• Most severe depression in history• Caused by:– Business failures– Stock collapse– Bank failures (leveraged in stocks)– Tight Credit– More business failures– Low crop prices– Overexpansion– Weak Demand

• 20% Unemployment• Demonstrated inter-dependent national

markets – Some global effects: Weak European Demand for

goods• Weakness till 1901

Reaction

• Social Unrest from unemployed• Fear of radical labor unrest• Jacob Coxey: called for Govt. works projects– Coxey’s Army: March on Washington• 500 protestors• Ignored by Congress

The Silver Question

• What is backing our currency today?• People demanded that currency be backed by

gold and silver.• Crime of ‘73: Protest of “demonetization” of

silver. – People wanted coining of silver to be reinstated– “Free Silver”– Cause inflation:• Raise farm pricess• Reduce debt burden

• Populist reasons:– Gold symbol of oppression and tyranny– Silver: The “People’s “ Money– Ease farmer debt burden: inflation

Election of 1896

• Dominated by currency question• Democrats adopt “Free Silver” plank• Nominate:– William Jennings Bryan– Cross of Gold Speech– Modern Campaigner

• Populist platform too narrow for national victory

• Demise of People’s Party

McKinley and Recovery

• Brought reassurance and stability• Farm prices on the rise (European Crop

failures)• Currency Act of 1900: Reaffirmed gold

standard• End of the depression hurt Populist

enthusiasm