From Stalemate to From Stalemate to CrisisCrisis

Ch. 19Ch. 19

The Politics of The Politics of Equilibrium Equilibrium stability and even divisionstability and even division North = Republican / South = DemocratNorth = Republican / South = Democrat… five states … five states

in betweenin between voter turnout at 78% from 1860-1900voter turnout at 78% from 1860-1900 Campaigns = spectator sportsCampaigns = spectator sports fierce loyalty based on tradition and personal factors fierce loyalty based on tradition and personal factors

rather than issuesrather than issues Republicans: northern Protestants and citizens of old stock, Republicans: northern Protestants and citizens of old stock,

nativistsnativists Democrats:Democrats:

south, symbol of triumph over Reconstructionsouth, symbol of triumph over Reconstruction

west and north, Catholics and immigrantswest and north, Catholics and immigrants

The Party SystemThe Party System

The National GovernmentThe National Government federal government does very littlefederal government does very little

delivering the maildelivering the mail maintaining the national militarymaintaining the national military foreign policyforeign policy collecting tariffs and taxescollecting tariffs and taxes

Civil War pension vs. believers in “good Civil War pension vs. believers in “good government”government”

““state of courts and parties”state of courts and parties”

Presidents and PatronagePresidents and Patronage series of undistinguished series of undistinguished

presidents: analyze cause and presidents: analyze cause and effecteffect

feeding the machine with feeding the machine with appointmentsappointments

““His fraudulency” v. the His fraudulency” v. the Half-Half-breedsbreeds and the and the StalwartsStalwarts battle over patronagebattle over patronage Hayes tried to please all and Hayes tried to please all and

ended up pleasing noneended up pleasing none Opposition from both sides made Opposition from both sides made

his presidency a study in his presidency a study in frustrationfrustration

Stalwarts = Republicans who supported Stalwarts = Republicans who supported patronage (synonymous with strong or stout) patronage (synonymous with strong or stout) all in opposition to Hayes attempts to all in opposition to Hayes attempts to reconcile with the South! Opposed reformsreconcile with the South! Opposed reforms

Half-Breeds = Republicans who supported Half-Breeds = Republicans who supported reforming patronage (moderates) term reforming patronage (moderates) term coined by Stalwartscoined by Stalwarts

Presidents and Patronage Presidents and Patronage Cont. Cont.

James A. Garfield, a James A. Garfield, a Half-breed from Half-breed from Ohio, president for Ohio, president for four monthsfour months showed support for showed support for

civil service reform civil service reform and opposed and opposed StalwartsStalwarts

Pres. for one month, Pres. for one month, Shot and died three Shot and died three months later months later

discredited the spoils discredited the spoils systemsystem

Presidents and PatronagePresidents and PatronageCont.Cont.

Chester A. Arthur keeps Chester A. Arthur keeps Garfield’s nominees Garfield’s nominees and passes and passes Pendleton ActPendleton Act

The Return of the The Return of the DemocratsDemocrats Election of 1884: “frick v. frack” / Election of 1884: “frick v. frack” /

Blaine (Rep) v. Cleveland (Dem)Blaine (Rep) v. Cleveland (Dem) Mugwumps = Republicans who left Mugwumps = Republicans who left

Rep. party in this election by voting Rep. party in this election by voting for Clev. Because Blaine was for Clev. Because Blaine was “corrupt”, so they thought they were “corrupt”, so they thought they were the real leaders of reform. the real leaders of reform.

Changed election in New York and thus Changed election in New York and thus national electionnational election

Mugwumps = flip-floppers of today!Mugwumps = flip-floppers of today! President President Grover ClevelandGrover Cleveland

““veto governor” not afraid to say noveto governor” not afraid to say no unwavering commitment to economy unwavering commitment to economy

((Pullman StrikePullman Strike)) ““thought the people support the thought the people support the

Government, the Government should Government, the Government should not support the peoplenot support the people””

Election of 1888Election of 1888: economics on the : economics on the table… Cleveland v. table… Cleveland v. HarrisonHarrison

One of three elections in history where the winner of One of three elections in history where the winner of the popular vote lost the electionthe popular vote lost the election

““Benjamin Harrison’s record as president was little Benjamin Harrison’s record as president was little more substantial that that of his grandfather, who had more substantial that that of his grandfather, who had died a month after taking office.”died a month after taking office.”

II. Tariffs, Trusts and II. Tariffs, Trusts and Railroads Railroads

Era of weak Era of weak government and government and

leadership, strong leadership, strong political parties and political parties and

big businessbig business

TrustsTrusts

by mid 1880s fifteen western and southern by mid 1880s fifteen western and southern states had adopted laws prohibiting states had adopted laws prohibiting combinations that restrained competition… combinations that restrained competition… but but corporations found it easy to escape corporations found it easy to escape limitations by incorporating in states such as limitations by incorporating in states such as New Jersey and DelawareNew Jersey and Delaware

If anti-trust legislation was going to be If anti-trust legislation was going to be effective it would have to come from national effective it would have to come from national governmentgovernment……

Sherman Antitrust ActSherman Antitrust Act Passed without opposition… but Passed without opposition… but toothlesstoothless Gave Justice Department authority to take legal Gave Justice Department authority to take legal

action against combinationsaction against combinations Weakness: Weakness: failure to specify what combinations failure to specify what combinations

would be forbiddenwould be forbidden Not a result of oversightNot a result of oversight ResultsResults

in ten years, 14 suits and few convictionsin ten years, 14 suits and few convictions law used more frequently against labor unionslaw used more frequently against labor unions United States v. E.C. Knight Co.United States v. E.C. Knight Co. weakened the act weakened the act The company controlled The company controlled manufacturingmanufacturing sugar (90+ sugar (90+

%) but Sherman Anti-trust Act only defined interstate %) but Sherman Anti-trust Act only defined interstate trade (aka distributing)trade (aka distributing)

TariffTariff

Republicans instead focus on passage of Republicans instead focus on passage of protective tariffprotective tariff, , McKinley TariffMcKinley Tariff Whoops! Weak action on trusts and focus on Whoops! Weak action on trusts and focus on

tariff = tariff = mistake by Republicans and leads to mistake by Republicans and leads to major backlashmajor backlash 1890 congress elections… Rep. go from a 1890 congress elections… Rep. go from a

majority in the Senate to 8 and only 88 of 323 majority in the Senate to 8 and only 88 of 323 seats in the Houseseats in the House

1892 Presidential Elections: Cleveland is back… 1892 Presidential Elections: Cleveland is back… but still the same…but still the same…

RailroadsRailroads

Grangers helped pass successful legislation to limit Grangers helped pass successful legislation to limit power of the railroads…but the Supreme Court power of the railroads…but the Supreme Court intervenes in intervenes in Wabash, St.Louis and Pacific Railway Co. Wabash, St.Louis and Pacific Railway Co. v. Illinoisv. Illinois (Wabash Case) rules Granger Laws as (Wabash Case) rules Granger Laws as unconstitutional stating that it limited the power of unconstitutional stating that it limited the power of CongressCongress

Courts would go on to limit the powers of states to Courts would go on to limit the powers of states to regulate commerce within their own boundariesregulate commerce within their own boundaries

Clear that regulation of RR would have to come from Clear that regulation of RR would have to come from Federal GovernmentFederal Government

Congress passes Interstate Commerce ActCongress passes Interstate Commerce Act

Interstate commerce actInterstate commerce act

““reasonable and just” rates… although reasonable and just” rates… although the bill did not define what it meantthe bill did not define what it meant

established ICC, but it had to rely on the established ICC, but it had to rely on the courts for rulingscourts for rulings

haphazardly enforced and narrowly haphazardly enforced and narrowly interpreted by the courtsinterpreted by the courts

without practical effect for nearly 20 without practical effect for nearly 20 yearsyears

Enough!Enough!

The Agrarian Revolt The Agrarian Revolt The GrangersThe Grangers

First started as a First started as a organization of social organization of social assistance and self assistance and self helphelp Oliver H. KelleyOliver H. Kelley Bring farmers together Bring farmers together

to keep up with to keep up with technology and technology and farming techniquesfarming techniques

Feeling of communityFeeling of community

Cont.Cont.

… … 1873 depression changed it into a political 1873 depression changed it into a political organizationorganization membership increased 800,000 members and 20,000 membership increased 800,000 members and 20,000

lodgeslodges strongest areas were in the South and Midweststrongest areas were in the South and Midwest marketing co-operatives to eliminate middlemenmarketing co-operatives to eliminate middlemen urged political action to curb monopolistic powers of urged political action to curb monopolistic powers of

railroadrailroad July 4, 1873 July 4, 1873 “Farmer’s Declaration of Independence”“Farmer’s Declaration of Independence”

Politics on a small level… “Anti-monopoly” and Politics on a small level… “Anti-monopoly” and “Reform” parties“Reform” parties

Agricultural prosperity and railroad power = Agricultural prosperity and railroad power = Federal/Judicial DefeatFederal/Judicial Defeat

Grange EnterprisesGrange Enterprises

Grange EnterprisesGrange Enterprises cooperative stores, creameries, warehouses, insurance cooperative stores, creameries, warehouses, insurance

companies and factoriescompanies and factories mail-order catalogs: Montgomery Ward and Sears Roebuckmail-order catalogs: Montgomery Ward and Sears Roebuck

failure: failure: opposition from middlemenopposition from middlemen

The Farmers AllianceThe Farmers Alliance by by 1880 more than 4 million members1880 more than 4 million members similar enterprises to grange movement to similar enterprises to grange movement to

free farmers from “furnishing merchants”free farmers from “furnishing merchants” Alliance speakers traveled criticizing Alliance speakers traveled criticizing

corporationscorporations Women played a large role (Mary Lease Women played a large role (Mary Lease

“raise less corn and more hell”)“raise less corn and more hell”) economic frustrations force the creation of a economic frustrations force the creation of a

national political organizationnational political organization

The Farmers Alliance The Farmers Alliance Cont.Cont.

Candidates supported by Alliances were part of the reason Candidates supported by Alliances were part of the reason for the 1890 shift in Congressfor the 1890 shift in Congress

Little open endorsement for Alliances by these candidates… Little open endorsement for Alliances by these candidates… talk of third partytalk of third party

Ocala Demands (Florida) 1890Ocala Demands (Florida) 1890 July 1892 July 1892 Omaha PlatformOmaha Platform, Nebraska formation of the , Nebraska formation of the

People’s Party, known as PopulistsPeople’s Party, known as Populists Presidential Nominee, James Weaver, pulls 8.5% of popular Presidential Nominee, James Weaver, pulls 8.5% of popular

votevote 1,500 Populist candidates elected to state legislatures1,500 Populist candidates elected to state legislatures 3 governors, 5 US Senators, and 10 Congressmen3 governors, 5 US Senators, and 10 Congressmen also could claim support from many Democrats and also could claim support from many Democrats and

Republicans who were elected by appealing to Populist Republicans who were elected by appealing to Populist demandsdemands

The Populist The Populist ConstituencyConstituency Appealed principally to farmers… small farmersAppealed principally to farmers… small farmers

Midwest: farmers who were struggling to hold onto land or who had Midwest: farmers who were struggling to hold onto land or who had lost itlost it

South: sharecroppers, tenant farmers or small landownersSouth: sharecroppers, tenant farmers or small landowners Sense of belonging to a community for the geographically Sense of belonging to a community for the geographically

isolatedisolated Failure to gain support of labor: economic interests often at Failure to gain support of labor: economic interests often at

oddsodds Miners and “Free Silver”Miners and “Free Silver”

make gold, with silver, the basis of currencymake gold, with silver, the basis of currency expand supply of currency causes inflation, meaning money loses expand supply of currency causes inflation, meaning money loses

value but prices (like for farm goods) GO UP!!!!value but prices (like for farm goods) GO UP!!!! Rise and fall of “Colored Alliances” Black Populists in the Rise and fall of “Colored Alliances” Black Populists in the

SouthSouth ““Southern Demagogues” strong speakers v. “Bourbons”Southern Demagogues” strong speakers v. “Bourbons” ChautauquasChautauquas provided large audiences for ideas to be provided large audiences for ideas to be

spread, as well as entertainment to the massesspread, as well as entertainment to the masses

Populist IdealsPopulist IdealsIssuesIssues

system of “subtreasuries” to replace and strengthen and system of “subtreasuries” to replace and strengthen and replace cooperativesreplace cooperatives government would establish a network of warehouses government would establish a network of warehouses

where farmers could deposit their cropswhere farmers could deposit their crops crops as collateral… farmers could barrow money from the crops as collateral… farmers could barrow money from the

government with low interest rates and wait for the price of government with low interest rates and wait for the price of their goods to increase before selling themtheir goods to increase before selling them

getting rid of the national banks systemgetting rid of the national banks system end absentee ownership of landend absentee ownership of land direct election of US Senatorsdirect election of US Senators regulation of government ownership of railroads, regulation of government ownership of railroads,

telephones and telegraphstelephones and telegraphs graduated income taxgraduated income tax inflation of currency (“Free Silver”)inflation of currency (“Free Silver”)

Populist IdealsPopulist IdealsIdeologyIdeology

Overwhelmingly Protestant… but many openly Overwhelmingly Protestant… but many openly anti-Semiticanti-Semitic

Strange evolution of leaders: Ignatius Donnelly Strange evolution of leaders: Ignatius Donnelly and Tom Watsonand Tom Watson

Rejection of laissez-faire orthodoxiesRejection of laissez-faire orthodoxies Offered the strongest challenge to the direction Offered the strongest challenge to the direction

the American capitalist system was goingthe American capitalist system was going Progress should be defined by the needs of Progress should be defined by the needs of

individuals in communitiesindividuals in communities

Wizard of Oz (political allegory?)Wizard of Oz (political allegory?)

The Crisis of the 1890sThe Crisis of the 1890sOverview of ProblemsOverview of Problems

1. 1. agrarian protest agrarian protest oppression from monopolistic railroadsoppression from monopolistic railroads Populist movementPopulist movement

2. labor unrest 2. labor unrest low wageslow wages violent strikesviolent strikes

3. severe depression 3. severe depression Panic of 1893Panic of 1893

Conservative leadership does nothing… failure Conservative leadership does nothing… failure of either major party to respond to growing of either major party to respond to growing distressdistress

The Panic of 1893The Panic of 1893

The Collapse of the Stock MarketThe Collapse of the Stock Market Reading and Philadelphia Railroads declare bankruptcyReading and Philadelphia Railroads declare bankruptcy Two months later, the National Cordage Company Two months later, the National Cordage Company

declares bankruptcydeclares bankruptcy Stock market collapses in responseStock market collapses in response Many banks collapse in responseMany banks collapse in response Calling in of credit… small businesses begin to collapseCalling in of credit… small businesses begin to collapse 1 million workers lose their jobs1 million workers lose their jobs

Showed the dependency of the American Showed the dependency of the American economy on the health of the railroadseconomy on the health of the railroads

The Panic of 1893 Cont.The Panic of 1893 Cont. Populist Jacob S. Coxey and Populist Jacob S. Coxey and

“Coxey’s Army”“Coxey’s Army” advocating a massive public advocating a massive public

works program… creation of works program… creation of jobsjobs

inflation of currencyinflation of currency March on foot from Ohio to March on foot from Ohio to

WashingtonWashington 500 make it500 make it

Leadership resists pressures Leadership resists pressures for a more active government for a more active government in the face of this crisisin the face of this crisis

CongressCongress President ClevelandPresident Cleveland Coxey and his followers Coxey and his followers

arrested or herded into campsarrested or herded into camps

The Silver QuestionThe Silver Question

Confusing issue: Confusing issue: Center of the debate was the basis of the dollar, what would lie Center of the debate was the basis of the dollar, what would lie

behind it and give it value. People today have trouble behind it and give it value. People today have trouble understanding the passion it aroused, because today the value of understanding the passion it aroused, because today the value of the dollar is based on public confidence in the government. the dollar is based on public confidence in the government. However in the late 19th century it was widely believed that However in the late 19th century it was widely believed that currency was worthless unless there was something concrete currency was worthless unless there was something concrete behind it.behind it.

In the 1870s the mint stopped coining silver because the value In the 1870s the mint stopped coining silver because the value ratio compared to gold was 16:1 (16 ounces of silver = one ounce ratio compared to gold was 16:1 (16 ounces of silver = one ounce of gold)of gold)

Congress 1873 passes law recognizing discontinuation of sliverCongress 1873 passes law recognizing discontinuation of sliver a. conspiracy of big bankersa. conspiracy of big bankers b. “Crime of ‘73”b. “Crime of ‘73”

The Silver Question Cont.The Silver Question Cont. Two opposition groups urged the return Two opposition groups urged the return

of the coinage of silverof the coinage of silver silver miners (aka SILVERITES)silver miners (aka SILVERITES) farmers – inflationistfarmers – inflationist

raise the prices on farm produceraise the prices on farm produce ease payments of farmers debtsease payments of farmers debts

Business, industrialists, bankers, etc. (GOLD Business, industrialists, bankers, etc. (GOLD BUGS)BUGS)

President Cleveland calls a special President Cleveland calls a special session of Congress to repeal the session of Congress to repeal the Sherman Silver Purchase Act…causes a Sherman Silver Purchase Act…causes a major rift in Democratic partymajor rift in Democratic party

Northeast Democrats: gold standard essential Northeast Democrats: gold standard essential to the honor and stability of USto the honor and stability of US

South and Western Democrats: “Free Silver” South and Western Democrats: “Free Silver” became a symbol of liberationbecame a symbol of liberation

““A Cross of Gold” A Cross of Gold”

The Emergence of BryanThe Emergence of Bryan Populists: In the middle of a Populists: In the middle of a

depression, they realized depression, they realized they could gain support by they could gain support by raising the “money question”raising the “money question”

Republicans: smelling blood Republicans: smelling blood in the water due to Democrat in the water due to Democrat division, nominate Governor division, nominate Governor William McKinley of OhioWilliam McKinley of Ohio opposed free coinage of silveropposed free coinage of silver 34 delegates from the mountain 34 delegates from the mountain

and plains states walked out of and plains states walked out of the convention in protest and the convention in protest and joined the Democrat Partyjoined the Democrat Party

DemocratsDemocrats DemocratsDemocrats

convention of 1896, Southern and Western convention of 1896, Southern and Western Democrats have two goals Democrats have two goals

1 = neutralize the Populists 1 = neutralize the Populists 2 = gain control of the party from North Eastern 2 = gain control of the party from North Eastern

DemocratsDemocrats But defenders of the gold standard (N.E But defenders of the gold standard (N.E

Democrat / Republican Platform) dominate the Democrat / Republican Platform) dominate the debate… until…debate… until…

William Jennings Bryan William Jennings Bryan

one of the best in the age of one of the best in the age of oratorsorators

1896 Convention1896 Convention ““Cross of Gold” speech brings Cross of Gold” speech brings

convention to a frenzyconvention to a frenzy age 36, youngest presidential age 36, youngest presidential

candidate to ever appear on the candidate to ever appear on the ballot of a major partyballot of a major party

1896 Election1896 Election Republicans and Conservative Republicans and Conservative

Democrats attack him as a Democrats attack him as a dangerous demagoguedangerous demagogue

Admirers hailed him as the “Great Admirers hailed him as the “Great Commoner”Commoner”

The Populists decide to support The Populists decide to support Bryant based on the platform of Bryant based on the platform of free silver… understanding that it free silver… understanding that it might destroy their partymight destroy their party

The Conservative VictoryThe Conservative Victory SpendingSpending

Republicans, dead afraid of a Bryant victory raise $7 million Republicans, dead afraid of a Bryant victory raise $7 million Democrats only able to spend $300,000Democrats only able to spend $300,000

CampaigningCampaigning McKinley never gets off his front porch in Canton, OhioMcKinley never gets off his front porch in Canton, Ohio Bryant becomes the first presidential candidate in US history to Bryant becomes the first presidential candidate in US history to

stump every section in the country systematicallystump every section in the country systematically traveled 18,000 miles and spoke to an estimated 5 million peopletraveled 18,000 miles and spoke to an estimated 5 million people Pleased Protestants, alienated CatholicsPleased Protestants, alienated Catholics Redefined the modern form of presidential politics, but at the time, Redefined the modern form of presidential politics, but at the time,

many considered the campaign undignifiedmany considered the campaign undignified ResultsResults

McKinley polled 271 electoral votes and garnered 51.1% of the McKinley polled 271 electoral votes and garnered 51.1% of the votevote

Bryan polled 176 electoral votes and garnered 47.7% of the Bryan polled 176 electoral votes and garnered 47.7% of the votevote

Disaster for Populists who had gambled on Democrats and lostDisaster for Populists who had gambled on Democrats and lost

McKinley and RecoveryMcKinley and Recovery

A return to calm A return to calm the exhaustion of dissentthe exhaustion of dissent

middle class Americans afraid of labor middle class Americans afraid of labor decline of agrarian protestdecline of agrarian protest

McKinley politically shrewd and gradual easing of the economic McKinley politically shrewd and gradual easing of the economic crisiscrisis

McKinley tact and issues McKinley tact and issues committed himself to the issue that all Republicans agreed: the committed himself to the issue that all Republicans agreed: the

need for higher tariff rates (again) and produced the Dingley need for higher tariff rates (again) and produced the Dingley TariffTariff

sent a commission to Europe to explore the option of a silver sent a commission to Europe to explore the option of a silver agreement with GB and France… as expected, no agreement agreement with GB and France… as expected, no agreement could be producedcould be produced

in response the Currency or “Gold Standard” Act of 1900 is in response the Currency or “Gold Standard” Act of 1900 is passedpassed

McKinley and Recovery McKinley and Recovery Cont.Cont.

Conservatives win “the battle of the standards”Conservatives win “the battle of the standards” passage of act timed with economic recoverypassage of act timed with economic recovery prosperity and gold standard seem closely alliedprosperity and gold standard seem closely allied lucky that so much more gold was found in Alaska, South lucky that so much more gold was found in Alaska, South

Africa and AustraliaAfrica and Australia

New Issue: United States presence in world affairs New Issue: United States presence in world affairs and the possibility of the United States becoming and the possibility of the United States becoming an imperialist nationan imperialist nation