IV Politics of the Gilded Age:Essential Question: Why was civil service reform needed?

Vocabulary:populism

greenbacks

inflation

graduated income tax

deflation

cooperatives

Civil Service Reforms

Rutherford B. Hayes became president in 1877

Tried to end patronage by firing officials who were given jobs as a reward for their party support

Replaced them with reformers, which split the Republican Party

Between “Stalwarts” (loyalty)(pro patronage)

“Halfbreeds” (backed reform)No reforms were passed

Civil Service Reforms

1880 Republicans James Garfield, a “Halfbreed” and Chester A. Arthur “Stalwart” won election

Garfield did not believe in the spoils system “spoils of office” the government jobs handed out after a victory. Anyone could petition for a job.

After repeated rejections for a job Charles Guiteau shot Garfield less than 4 months into presidency. Thought he would have a better chance at a job under VP Chester A. Arthur

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Civil Service ReformsGarfield’s assassination

highlighted the need for reforms

Many Americans believed patronage made government corrupt and ineffective

1883 Congress passed the Pendleton Act Required competitive exams

to fill jobs. Marked the beginning of professional Civil Service

Governments jobs are given out by qualifications not political affiliation

Only 10% of jobs were civil service in 1883

Why was civil service reform needed? How did they accomplish this?

The Election of 1884Democrats nominated Grover

Cleveland governor of New YorkHad a reputation for honestyWas a reformer

Republicans nominated James G. BlaineFormer Speaker of the HouseRumored to have accepted bribes

Some Republicans so unhappy with Blaine they supported Cleveland. Called Mugwumps

The Election of 1884Cleveland narrowly wonSome supporters expected to

be rewardedOthers wanted civil service

increasedCleveland choose a middle roadEconomic problems replaced

patronage reform debate

Interstate Commerce ActPower of large corporations concerned

AmericansLarge corporations negotiated rebates and

lower rates, while small business owners and farmers paid higher rates. States began passing laws regulating railroad rates

1886 Supreme Court ruled on the railroads in Wabash, St. Louis and Pacific Railway v IllinoisOnly the federal government could regulate

interstate commercepressure forced Congress to act1887 Cleveland signed the Interstate

commerce ActFirst federal law to regulate commerce

Election of 1884Tariffs another economic issueDemocrats thought Congress

should cut tariffsRaised prices of imported goodsHigh tariffs forced nations to respond

in kindDifficult for farmers to export

surplusesDecember 1887 Cleveland

proposed lowering tariffsDemocrat house passed/

Republican Senate rejected

Republicans Gain Power1888 Benjamin Harrison received

large contributions from businessesThey benefitted from high tariffs

Cleveland and Democrats campaigned against high tariffs

Harrison lost the popular vote, but won the electoral vote

Republicans gained control of the White House

Republicans Regain Power1890 Representative William

McKinley pushed a bill thatCut tariffsCut some taxesIncreased rates on some other

goodsMcKinley Tariff was meant to

protect American industry but caused a steep rise in cost of goods

Sherman Anti-Trust ActTo curb power of large business

combination known as trusts 1890 Congress passes the Sherman Anti-trust Act

Prohibited any “combination… or conspiracy to restrain trade or commerce among several states”

Politics in Washington

What actions did Congress take to reform the civil service?

Why were these steps necessary?

Politics in WashingtonMany Americans thought that the patronage system of

providing government jobs to political supporters encouraged inefficiency and dishonesty in government. After president Garfield’s assassination, Congress passed the Pendleton Act, which required a percentage of government jobs be awarded on the basis of scores on written exams. The percentage of government jobs filled through this system grew over time.

Unrest in Rural America

Guiding Question: What kind of problems did farmers have?

PopulismPopulism was a movement to

increase farmer’s political power

Populism – a political movement founded in the 1890s representing mainly farmers that favored free coinage of silver, government control of railroads and other large industries,graduated income tax

https://www.youtube.com/watch?v=bdKjmNeVgKI

PopulismNew technology helped produce

more cropsIncreased supply caused prices

to fallHigh tariffs made it harder to sell

goods overseasMortgages and shipping costs

were difficulties for farmers

The Money SupplySome farmers thought adjusting

the money supply would helpDuring Civil War the government

increased the money supplyPrinted greenbacks (paper

currency)Could not be exchanged for silver

or goldIncreased money supply without

increase of goods caused inflation

The Money SupplyGreenbacks – a unit of

paper currency first issued by the federal government during the civil war

Currency – paper money used as a medium of exchange

Inflation – an ongoing increase in prices and decreases in the value of money

The Money SupplyAfter Civil War three types

of currencyGreenbacksGold and silver coinsNational bank notes

backed by the federal government bonds

Bonds – a note issued by the government that promises to pay off a loan with interest

The Money SupplyTo get inflation under control

government stopped greenbacks

Paying off its bonds1873 Congress decided to stop

making silver coinsMoney supply became

insufficient for growing economy and caused deflation

Deflation – an ongoing decrease in prices and an increase in the value of money

The Money SupplyDeflation hit farmers really

hardSold crops for less Had to borrow money for

new seedMoney supply low, interest

rates were upRising interest made

mortgages more expensiveFarmers had to make

mortgage payments

The Grange Take ActionsOliver H Kelly founded

the Grange in 18671873 severe recessionFarming income fell

sharplyGrangers forced states to

regulate railroad and warehouse rates

Grange Takes ActionGranger created

organizations called cooperatives

Cooperatives – a store where farmers buy products from each other, an enterprise owned and operated by those who use its services

None of these strategies worked for farmers

Strategy – a plan or method for achieving a goal

The Farmer’s AllianceBegan in 1890Had 1.5 to 3 million membersCharles W Macune was the

leaderOrganized large cooperatives

called exchangesExchanges failed because they

over extended themselvesWholesalers, bankers and

railroad owners made it difficult to stay in business

Too small to affect world prices

Unrest in Rural AmericaWhat measures did the nation take after the Civil War to improve its economic situation?

What was the result?

Unrest in Rural AmericaIt stopped printing greenbacks, began repaying bonds, and stopped making coins out of silver.

These measures resulted in deflation.

The Rise of PopulismWhat were the goals of the People’s Party?

The Rise of Populism1890 many people in the

alliance were dissatisfiedBecame distrustful of both

Republicans and DemocratsBelieved both parties

favored industry and banks over farmers

Midwest Alliance members wanted a new party

Southern leaders did not want to weaken Democratic Party

The Rise of PopulismWanted Alliance member

to make a list of demandsPromise to vote for

candidates who supported those demands

1892 1,000 delegates met in Omaha, Nebraska

Formed the People’s Party Nominated James B.

Weaver for president

The Rise of PopulismParty’s platform

Return to unlimited coinageFederal ownership of railroadsGraduated income tax

Graduated income tax – a tax based on net income of an individual or business and which taxes different income levels at different rates

The Rise of PopulismAdopted proposals to appeal to labor

8 hour work dayImmigration restrictions

Populism had little appeal to urban voters

They continued traditional party alliances

Many workers continued to vote for Democrats

Grover Cleveland becomes president (Democrat)

The Rise of PopulismWhy did Southern Alliance groups resist the idea of a national People’s Party?

The Rise of PopulismThey did not want a new national party to weaken the Democratic party’s influence in the South.

The Election of 1896Why did the Populist’s support the Democratic candidates- William Jennings Bryan- in 1896?

The Election of 1896People’s Party made free coinage

of silver their focusHeld their convention after the

Republicans and the DemocratsBelieved the Republicans would

endorse the gold standardExpected Democrats to nominate

Cleveland who favored the gold standard

Hoped pro-silver Democrats would choose Populists

The Election of 1896Strategy failed Williams Jennings Bryan made a

pro-silver speechWon democratic party

nominationFaced a difficult choice

Endorse Bryan and undermine their party

Nominate own candidate and split the silver vote

They chose Bryan

The Election of 1896Republicans appealed to workersMcKinley promised a “full dinner

pail”Most business leaders supported

the RepublicansThought unlimited silver coinage

would ruin the countryEmployers warned workers if

Bryan elected the business would fail and unemployment would rise further

The Election of 1896McKinley’s had a reputation of

Moderate on labor issuesTolerant toward ethnic groupsHelped improve the Republican

image with urban and immigrant workers

McKinley won with a decisive victory

The Election of 1896Populist party declined after the

electionEfforts to end hardships for

farmers failedEfforts to regulated big business

failedLong after party’s demise

Graduated income taxFurther government regulation of

the economy were achieved

The Election of 1896Why did the Republicans win the election of 1896?

The Election of 1896They appealed to urban workers and business leaders, and promised economic improvements at a time of recession.