Ummi Ciptasari - Chapter 19 precis

Party system of late 19th century was very stable with little fluctuation in state loyalties.
Republicans held most presidencies and Senate while Democrats lead House. Public intensely
loyal to parties, voter turnout was tremendous- loyalty result of region, religion and ethnicity.
Party identification was more cultural than of economic interest. The Federal government held
little power and responsibility aside from supporting economic development and delivering
pensions to Civil War veterans. Most of the party leaders cared more about holding office than
policy. The President also just had little power save to make government appointments
(patronage used). President Rutherford B. Hayes had to deal with factional Republicans party
split between Stalwarts (favored machine politics) and the Half-Breeds (favored reform).
Patronage system overshadowed presidency, civil service system effort was failed. Republicans
won presidency in 1880 election, President James Garfield and Vice President Chester Arthur
took the office. Garfield attempted to defy Stalwarts and create civil service reform, but he was
assassinated in 1881. New President Chester attempted supported civil service reform over
Stalwarts. In 1883 Congress passed Pendleton Act requiring exams for some government jobs.
In 1884 election Republican nominee Senator James Blaine, “liberal” Republicans
flocked to Democratic reform candidate Grover Cleveland. Cleveland opposed to graft and
special interest, wished to see limited government- asked Congress to reduce protective tariff
rate 1887 to reduce government surpluses and size. Democrats passed the bill while
Republicans opposed it. It became an issue of 1888 elections. Democrats renominated
Cleveland, but Republicans named Benjamin Harrison whose got the chair at the end.
President Harrison made little effort to influence Congress, but public opinion forced
government to begin to confront social and economic issues, especially trusts. By mid 1880s
some states limiting combinations preventing competition, but reformers wanted national
movement- 1890 Sherman Antitrust Act passed, but little enforced, weakened by courts, and
had just a little impact. The Republicans main issue was dealing with tariff. They passed
McKinley Tariff in 1890 which was the highest protective tariff ever. Public opposed the bill, by
1892 President election Republicans lost both House and Senate, Democrats nominee
Cleveland won this Presidential election. The policies of Cleveland’s in his 2nd term was still like
the 1st, devoted to minimal government. Supported tariff reduction, Wilson-Gorman Tariff was
passed. Movement coming up at 1880s in many states to regulate Rail Roads. After 1886
Supreme Court case Wabash, St. Louis and Pacific Railroad vs Illinois ruled only fed
government able to regulate interstate commerce. To appease public Congress passed 1887
Interstate Commerce Act which banned rate discrimination and injustice and formed the
Interstate Commerce Commission.
American farmers were revolting against the government at the time. First major effort to
organize farmers was the Grange movement of 1860s (at first goal to teach new scientific
techniques), not until 1873 recession and fall of farm prices did it become highly political and
large. Grange urged cooperative political action to fight monopolistic Rail Road and warehouse
practices, setup up co-operation stores, insurance companies, and Montgomery Ward mail-
order business. The Elected Grange politicians went to state legislatures to focus on Rail Road
reform, but the regulations destroyed by courts, temporary boom in late 1870s destroyed the
Grange. Farmers’ Alliances formed in South, Northwest- like Grange focused on local problems
(co-op banks, processing plants) but also larger goal to create society of cooperation. Like
Grange, their cooperatives were not very successful, harnessed frustrations into creating
national political organization in 1880s. By 1889, Southern and Northwestern Alliances merged,
issued Ocala Demands (party platform). They won seats in 1890 elections. Sentiments forming
toward national third party in1892, created People’s Party (Populists). In 1892 elections
Populists did surprisingly well, they won seats in states and Congress. Populism appealed
mainly to small farmers, those whose farming becoming less viable in face of mechanized,
consolidated commercial agriculture. However, populists failed to attract much labor support, but
attracted miners in Rocky Mountain states with “free silver” policy that allowed for silver to be
currency, expand money supply. African Americans were also allowed to have limited
involvement in the South. Ocala platform in 1892 outlined Populist reform programs-
“subtreasuries” to strengthen cooperatives; government warehouse system; abolish national
banks; direct election of US Senators, other ways for people to influence political system;
regulation and ownership of Rail Roads, telephones; graduated income tax; currency inflation;
and silver remonetization. Populism was associated with anti-Semitism.
In the 1890s, there was a massive depression, comparable to that of the 1930s, which
led to political turmoil. It was caused by bankruptcy of few corporations that led to bank failure,
led to credit contraction. Also depressed farm prices of late 1880s, European depression and
Rail Road expansion beyond market demand. Businesses, banks, Rail Roads were all failed.
Unemployment soared, led to social unrest. In 1894, Populist Jacob Coxey called for massive
public works program for unemployed and currency inflation, protested in D.C. with “Coxey’s
Army”. In Financial panic weakened monetary system, President Cleveland believed currency
instability was the cause of depression. Many people believed specie (precious metal) must
back money to give it value.
“Bimetal” standard discontinued 1873 by Congress because market value of silver high
back than was 16:1 standard. In late 1870s, silver became less valuable than standard but
people unable to convert silver because of “Crime of ‘73”, which was an opposition by silver-
miners and farmers who wanted greater $ circulation (inflation) to ease debts.
iii)At same time decreasing government gold reserves led PresidentCleveland 1893 to
seek repeal of Sherman Silver Purchase Act of 1890- divided Dem party
iv)Presidential of 1986 incredibly fierce b/c supporters of gold standard saw it as
essential to national stability, supporters of “free silver” (guided by William Harvey’s 1894 Coin’s
Financial School) saw gold standard as tyrannous and advantageous to wealthy, silver would
decrease debt
Republicans in 1896 election were pretty confident of victory because of Cleveland and
Democrats failure to deal with depression. The Democrats nominated William McKinley with
platform opposed to free coinage of silver. The Democrats of West sought to weaken People’s
Party by adopting Populist demands, debated platform of free silver, tariff reduction, income tax,
Rail Roads and trust regulation. William Jennings Bryan delivered “Cross of Gold” speech
opposed to gold standard at convention, he was voted as nominee. Populists split as to whether
or not to fuse with Democrats party because felt some of their unique needs addressed;
concluded no other alternative, supported Bryan. Business and finance communities donated
heavily to Republicans, Bryan’s national stump and camp-meeting style alienated Cath + ethnic
voters who feared he embodied Protestants who so firmly opposed them. McKinley carried
election because Democrats platform had proved to be too narrow (sectional) to win nationally.
Because of “fusion” gamble with Democrats, the People’s Party began to dissolve in wake of
defeat. McKinley administration saw return to calm because of labor unrest and agrarian protest
had subsided by 1897, economic crisis gradually easing. McKinley focused on implementing
high tariff rate, Congress soon passed Dingley Tariff. Republicans passed Currency (Gold
Standard) Act of 1900 that confirmed nation’s gold standard, pegged dollar to specific gold value
Foreign crop failures resulted in economic uptick, nation entered period of expansion
once again—clear trend between prosperity and gold standard support. Free-silver movement
had failed- during late 19th century money supply had expanded much more slowly than
increase in production and population, but by late 1890s increase in gold supply inflated money,
satisfied free-silver people.