Political Paralysis in the Gilded Age, 1869–1896 PDF

Chapter 23 Political Paralysis in the Gilded Age, 1869–1896 p486 p487...

Chapter 23 Political Paralysis in the Gilded Age, 1869–1896 p486 p487 I. The “Bloody Shirt” Elects Grant I. The “Bloody Shirt” Elect Grant I. The “Bloody Shirt” Elects Grant (cont.) (cont.) – Wealthy eastern delegates demanded federal war bonds be A good general: Republicans: redeemed in gold Populace soured by wrangling of professional Freed from Union party coalition of war days – Poorer Midwestern delegates called for redemption in politicians in Reconstruction era Nominated Grant for presidency in 1868 greenbacks (Ohio Idea) Notion still prevailed that a good general would make – Debt-burdened agrarian Democrats hoped to keep more Platform called for continued Reconstruction of South money in circulation and keep interest rates low a good president Grant “Let us have peace” Disputes introduced bitter contest over monetary – Grant most popular northern hero: Democrats: policy that continued until century's end Hapless greenhorn in political arena In their nominating convention, denounced military Midwestern delegates got the platform but not the His one presidential vote had been cast for Reconstruction but could agree on little else candidate Democratic ticket in 1856 – Nominee Horatio Seymour repudiated Ohio Idea His cultural background breathtakingly narrow I. The “Bloody Shirt” Elect Grant I. The “Bloody Shirt” Elects Grant (cont.) (cont.) Grant nominated: Estimated 500,000 former slaves gave Grant his margin of victory – Republicans energetically nominated Grant by To remain in power, Republican party had to continue “waving the bloody shirt”— to control South—and keep ballot in hands of Revived glory memories of Civil War grateful freedman Became for first time a prominent feature of a – Republicans could not take future victories “for presidential campaign Granted” Grant won, with 214 electoral votes to 80 for Seymour Grant received 3,013,421 to 2,706,829 popular votes: – Most white voters supported Seymour – Ballots of three still-unreconstructed southern states (Mississippi, Texas, Virginia) not counted at all p489  II. The Era of Good Stealings II. The Era of Good Stealings II. The Era of Good Stealings (cont.) (cont.) – Postwar atmosphere stunk of corruption: Two notorious financial millionaire partners: Conspirators worked on President Grant directly: Some railroad promoters cheated gullible bond – And through his brother-in-law, who received $25,000 for – “Jubilee Jim” Fisk and Jay Gould: complicity buyers Corpulent and unscrupulous Fisk provided the “brass” For weeks Fisk and Gould bid price of gold skyward, so Some unethical financiers manipulated stock-market Undersized and cunning Gould provided the brains they could profit from its heightened value: Too many judges and legislators put their power up – On “Black Friday” (September 24, 1889) bubble broke when Concocted plot in 1869 to corner gold market: for hire Treasury compelled to release gold – Plan would work only if federal Treasury refrained from Cynics defined an honest politician as one who, when selling gold – Price of gold plunged bought, stayed bought – Scores of honest businesspeople driven to the wall – Congressional probe concluded Grant had done nothing crooked, but had acted stupidly II. The Era of Good Stealings II. The Era of Good Stealings III. A Carnival of Corruption (cont.) (cont.) Infamous Tweed Ring: Gifted cartoonist Thomas Nast pilloried Misdeeds of federal government leaders: – Displayed ethics of age: Tweed mercilessly. – Credit Mobilier scandal (1872): – “Boss” Tweed employed bribery, graft, and New York attorney Samuel J. Tilden headed Union Pacific Railroad insiders formed Credit Mobilier fraudulent elections to milk metropolis of $200 construction company: prosecution. – Then hired themselves at inflated prices to build railroad line million: Honest citizens cowed into silence Unbailed and unwept, Tweed died behind – Earned dividends as high as 348 percent – Company distributed shares of its valuable stock to key Protesters found tax assessments raised bars. congressmen Tweed's luck finally ran out: – Newspaper expose and congressional investigation led to: – New York Times published damning evidence in 1871 – Refused $5 million bribe not to publish it III. A Carnival of Corruption IV. The Liberal Republican Revolt IV. The Liberal Republican Revolt (cont.) of 1872 of 1872 (cont.) – Formal censure of two congressmen Liberal Republican party: Democrats: – Revelation that vice-president accepted payments from Credit Mobilier – Slogan “Turn the Rascals Out” urged purification – Endorsed Greeley's candidacy Breath of scandal in Washington reeked of alcohol: of Washington and end to military – He had blasted them as traitors, slave shippers, – In 1874-1875, Whiskey Ring robbed Treasury of millions in Reconstruction saloon keepers, horse thieves, and idiots excise-tax revenue – Grant's own private secretary among culprits – Muffed chance when at Cincinnati convention – He pleased them when he pleaded for clasping – Grant volunteered a written statement to jury that helped they nominated: hands across “the bloody chasm” exonerate thief Erratic Horace Greeley, editor of New York Tribune Bribes: – Republicans dutifully renominated Grant He was dogmatic, emotional, petulant, and – Secretary of War William Belknap (1876) forced to resign notoriously unsound in his political judgments – Voters had to choose between two after pocketing bribes from suppliers to Indian reservations non-politicians, neither of whom truly qualified – Grant accepted his resignation “with great regret”  IV. The Liberal Republican Revolt V. Depression, Deflation, and of 1872 (cont.) Inflation Election of 1872: Panic of 1873: Republicans denounced Greeley as atheist, Grant's woes deepened in paralyzing economy: communist, free-lover, vegetarian, and cosigner of – Age of unbridled expansion Jefferson Davis's bail bond – Overreaching promoters laid more railroad track, sunk more mines, erected more factories, sowed more grain fields than Democrats derided Grant as ignoramus, drunkard, existing markets could bear swindler – Bankers made too many imprudent loans to finance these Republicans chanting “Grant us another term” pulled enterprises president through: – Profits failed to materialize; loans went unpaid; whole – Electoral count: 286 for Grant to 66 for Greeley credit-based economy fluttered downward – Popular vote: 3,596,745 for Grant; 2,843,446 for Greeley – Boom times became gloom times as more than 15,000 businesses went bankrupt p490 V. Depression, Deflation, and V. Depression, Deflation, and V. Depression, Deflation, and Inflation (cont.) Inflation (cont.) Inflation (cont.) – Black Americans hard hit “Hard-money” advocates carried day: In 1870s Treasury maintained an ounce of silver – Freedman's Saving and Trust Company had made unsecured worth only 1/16 compared to an ounce of gold loans to several companies that went under 1874 persuaded Grant to veto bill to print more paper money Silver miners stopped offering silver to federal mints – Black depositors who had entrusted over $7 million to banks lost their savings Scored another victory in Resumption Act 1875: Congress dropped coinage of silver dollars (1873) – Black economic development and black confidence in – Pledged government to further withdraw greenbacks from With new silver discoveries in late 1870s, production savings institutions went down with it circulation and shot up which forced silver prices to drop – Hard times inflicted worst punishment on debtors – To redemption of all paper currency in gold at face value, Demand for coinage of more silver was nothing more – Proponents of inflation breathed new life into issue of beginning in 1879 greenbacks nor less than another scheme to promote inflation Debtors looked for relief in precious metal silver – Agrarian and debtor groups—“cheap money” supporters—clamored for reissuance of greenbacks V. Depression, Deflation, and V. Depression, Deflation, and VI. Pallid Politics in the Gilded Age Inflation (cont.) Inflation (cont.) Hard-money Republicans resisted scheme New policy restored government's credit rating Gilded Age: Brought embattled greenbacks up to full face value and called on Grant to hold line. – Sarcastic name given to three-decade-long When Redemption Day came in 1879, few greenback He did not disappoint them: post-Civil era by Mark Twain in 1873 holders bothered to exchange lighter and more – Treasury accumulated gold stocks until day of convenient bills for gold – Every presidential election a squeaker resumption of metallic-money payments Republican hard-money policy had political backlash: – Majority party in House switched six times in – In 1874, helped elect Democratic House of Representatives seven sessions between 1869 and 1891 – Coupled with reduction of greenbacks, this policy – 1878: spawned Greenback Labor Party, polled over a million called “contraction:” votes, elected fourteen members of Congress – Few significant economic issues separated major Had noticeable deflationary effect, worsening impact – Contest over monetary policy far from over parties yet elections ferociously competitive of depression – Nearly 80% of those eligible, voted VI. Pallid Politics in the Gilded Age VI. Pallid Politics in the Gilded Age VI. Pallid Politics in the Gilded Age (cont.) (cont.) (cont.) – How can paradox of political consensus and – Democrats: Democrats: » Immigrant Lutherans and Roman Catholics figured partisan fervor be explained? heavily – Solid electoral base in South Sharp ethnic and cultural differences in membership » More likely to adhere to faiths that took a less stern of two parties: view of human weakness – In northern industrial cities—with immigrants and – Distinctions of style and tone, especially religious sentiment » Religion professed toleration in an imperfect world well-oiled political machines – Republicans adhered to creeds that traced lineage to » Spurned government efforts to impose single moral standard on entire society Republicans: Puritanism: » Strict codes of personal morality – Differences in temperament and religious values produced – Strength largely in Midwest and rural, small-town » Believed government should play role in regulating both raucous political contests at local level, esp. on issues like Northeast economic and moral affairs of society prohibition and education – Freedmen in South continued to vote Republican in significant numbers VI. Pallid Politics in the Gilded Age VI. Pallid Politics in the Gilded Age (cont.) (cont.) – Members of Grand Army of the Republic – Half-Breeds wanted some civil-service reform: (GAR)—politically potent fraternal organization Champion was James G. Blaine of Maine of several hundred thousand Union veterans of Two personalities succeeded only in stalemating each Civil War other and deadlocking party – Patronage—lifeblood of both parties: Jobs for votes, kickbacks, party service Boisterous infighting over patronage beset Republican party in 1870s and 1880s Roscoe (“Lord Roscoe”) Conkling—embraced time-honored system of civil-service jobs for votes p493 VII. The Hayes-Tilden Standoff, VII. The Hayes-Tilden Standoff, 1876 1876 (cont.) Grant thought about a third-term: Democrats: – House derailed this by 233 to 18: – Nominee was Samuel J. Tilden: Passed resolution on anti-dictator implications of Risen to fame by jailing Boss Tweed in New York two-term tradition 185 electoral votes needed Republicans Tilden got 184 with twenty disputed votes in four states—three of them in South (see Map 23.1) – Turned to compromise candidate, Rutherford B. Tilden polled 247,448 more popular votes than Hayes, Hayes, “The Great Unknown:” 4,284,020 to 4,036,572 Foremost qualification: hailed from “swing” state Ohio Both parties sent “visiting statesmen” to contested Served three terms as governor Louisiana, South Carolina, Florida Map 23-1 p494  VII. The Hayes-Tilden Standoff, VII. The Hayes-Tilden Standoff, VIII. The Compromise of 1877 and 1876 (cont.) 1876 (cont.) the End of Reconstruction Disputed states: Who should count them? Compromise of 1877: – All sent two sets of returns: one Democratic and – On this point, Constitution silent: Deadlock broken by Election Count Act: one Republican: If counted by president of Senate (a Republican), – Passed by Congress in early 1877 – Dramatic constitutional crisis: Republican returns would be selected If counted by Speaker of House (a Democrat), – Set up electoral commission of fifteen men Constitution merely specified that electoral returns selected from Senate, House and Supreme Court from states be sent to Congress Democratic returns would be chosen How could impasse be resolved? (see Table 23.1) Then in presence of House and Senate, they be opened by president of Senate (see Twelfth – February 1877, a month before Inauguration Day, Amendment in Appendix) Senate and House met to settle dispute VIII. The Compromise of 1877 and VIII. The Compromise of 1877 and the End of Reconstruction(cont.) the End of Reconstruction (cont.) – Roll of states tolled off alphabetically Other parts of Compromise of 1877: – Florida, first of three southern states with two Democrats agreed Hayes might take office in return for sets of returns— removing U.S. troops from two states in which they Disputed documents referred to electoral remained, Louisiana and South Carolina commission, which sat in nearby chamber Republicans assured Democrats a place at presidential After prolonged discussion, members: patronage trough – By partisan vote of 8 Republicans to 7 Democrats, voted to And supported bill subsidizing Texas and Pacific accept Republican returns Railroad's construction of southern transcontinental – Outraged Democrats in Congress, smelling defeat, line under-took to launch filibuster Table 23-1 p494 VIII. The Compromise of 1877 and VIII. The Compromise of 1877 and VIII. The Compromise of 1877 and the End of Reconstruction (cont.) the End of Reconstruction (cont.) the End of Reconstruction (cont.) Deal held together long enough to break Compromise bought peace at a price: Court declared Fourteenth Amendment prohibited only government violation of civil rights, not denial of dangerous electoral standoff: – Partisan violence averted by sacrificing civil rights of civil rights by individuals – Democrats permitted Hayes to receive remainder southern blacks When President Hayes withdrew federal troops that of disputed returns—all by partisan vote of 8 to 7: – With Hayes-Tilden deal, Republican party were propping up Reconstruction governments, So explosive, it was settled only three days before new abandoned commitment to racial equality Republican regimes collapsed president sworn into office Civil Rights Act of 1875: – Last gasp of feeble radical Republicans – Supreme Court pronounced much of act unconstitutional in Civil Rights Cases (1883)  IX. The Birth of Jim Crow in the IX. The Birth of Jim Crow in the Post-Reconstruction South Post-Reconstruction South (cont.) Democratic South solidified: – Farmers remained perpetually in debt Swiftly suppressed now-friendless blacks – Southern blacks condemned to threadbare living White Democrats (“Redeemers”), relying on fraud and under conditions scarcely better than slavery intimidation, reassumed political power (see May 23.2) Black who tried to assert rights faced unemployment, eviction, and physical harm – Blacks forced into systematic state-level legal Many blacks forced into sharecropping and tenant codes of segregation known as Jim Crow laws farming – Southern states enacted literary requirements, “Crop-lien” system where storekeepers extended voter-registration laws, and poll taxes credit to small farmers for food and supplies, in return for lien on harvest p495 IX. The Birth of Jim Crow in the IX. The Birth of Jim Crow in the Post-Reconstruction South (cont.) Post-Reconstruction South (cont.) – Tolerated violent intimidation of black voters Southern whites dealt harshly with any black who dared to violate South's racial code of conduct Supreme Court: Record number of blacks lynched in 1890s: – Validated South's segregationist social order in – Most often for “crime” of asserting themselves as equals Plessy v. Ferguson (1896): (see Table 23.2) Ruled “separate but equal” facilities constitutional Would take a second Reconstruction, nearly a century under “equal protection” clause of Fourteenth later, to redress racist imbalance of southern society Amendment Segregated in inferior schools and separated from whites in virtually all public facilities including railroad cars, theaters, and restrooms Map 23-2 p496 X. Class Conflicts and Ethnic Clashes Scenes of class struggle: – Railroad workers faced particularly hard times: Even though railroads continue to make huge profits Workers struck when wages were going to cut by 10% President Hayes sent in federal troops to quell unrest by striking laborers Failure of railroad strike exposed weakness of labor movement p496 Table 23-2 p497  X. Class Conflicts and Ethnic X. Class Conflicts and Ethnic Clashes (cont.) Clashes (cont.) Federal courts, U.S. Army, state militias, local – Those who remained faced extraordinary hardships: police helped keep business operating at full Menial jobs: cooks, laundrymen, domestic servants Without women or families, deprived of means to speed. assimilate – Racal and ethnic issues fractured labor unity: In San Francisco, Denis Kearney incited followers to Divisions esp. marked between Irish & Chinese in violent abuse of hapless Chinese California: Chinese Exclusion Act (1882): – Chinese came originally to dig in goldfields and to – Prohibiting nearly all further immigration from China sledgehammer tracks of transcontinental railroads – Door stayed shut until 1943 – When gold petered out and tracks laid, many returned home to China with meager savings p497 X. Class Conflicts and Ethnic XI. Garfield and Arthur Clashes (cont.) – Native-born Chinese: Presidential campaign of 1880: Supreme Court in U.S. v. Wong Kim Ark (1898) stated – Hayes a man without a party Fourteenth Amendment guaranteed citizenship to all persons born in United States – James Garfield from electorally powerful state of Doctrine of “birthright citizenship” as contrasted with Ohio “right of blood-tie” (citizenship based on – Vice-presidential running mate a notorious parents'nationality) provided protection to Chinese Stalwart henchman, Chester Arthur of New York Americans as well as other immigrants – Democratic candidate Civil War hero Winfield Scott Hancock p498 XI. Garfield and Arthur XI. Chester and Arthur (cont.) (cont.) Statistics: – Garfield lingered in agony for 11 weeks – Garfield polled only 39,213 more votes than – Died on September 19, 1881: Hancock—4,453,295 to 4,414,082 Guiteau found guilty of murder and hanged – Margin in electoral votes a comfortable 214 to 155 Garfield's murder had one positive outcome: – Shocked politicians into reforming shameful spoils system – Disappointed and deranged office seeker, Charles – Unlikely instrument of reform was Chester Arthur Guiteau, shot President Garfield at Washington – Pendleton Act (1883): railroad station Magna Carta of civil-service reform Made compulsory campaign contributions from federal employees illegal Figure 23-1 p499  XI. Chester and Arthur XI. Chester and Arthur XII. The Blaine-Cleveland (cont.) (cont.) Mudslingers of 1884 Established Civil Service Commission to make – Pendleton Act: James G. Blaine: appointments to federal jobs on basis of competitive Partially divorced politics from patronage Persistence in seeking Republican nomination paid off examinations rather than “pull” Helped drive politicians into “marriages of in 1884 At first covering only 10% of federal jobs, civil-service convenience” with big-business (see Figures 23.1) Clear choice of convention in Chicago did rein in most blatant abuses – President Arthur's display of integrity offended Some reformers, unable to swallow Blaine, bolted to “Plum” federal posts now beyond reach, politicians: too many powerful Republicans Democrats—called Mugwumps – Forced to look elsewhere for money, “mother's milk of politics” – His party turned him out to pasture Democrats: – Increasingly turned to big corporations – New breed of “boss” emerged – In 1886, he died of cerebral hemorrhage – Turned to reformer, Grover Cleveland From mayor of Buffalo to governorship of New York and presidential nomination in three years XII. The Blaine-Cleveland Mudslingers of 1884 (cont.) Cleveland's admirers soon got shock: – Learned he had an illegitimate son – Made financial provision for son Campaign of 1884 sank to perhaps lowest level in American experience: – Personalities, not principles, claimed headlines p500 p501 XII. The Blaine-Cleveland Mudslingers of 1884 (cont.) – Contest hinged on state of New York, where Blaine blundered badly in closing days of campaign – Republican clergy called Democrats party of “Rum, Romanism, and Rebellion” insulting culture, faith, and patriotism of New York's Irish American voters – Blaine refused to repudiate phrase – New York Irish vote gave presidency to Cleveland – Cleveland swept solid South and squeaked into office with 219 to 182 electoral votes – 4,879,507 to 4,850,293 popular votes Table 23-3 p501 p502  XIII. “Old Grover” Takes Over XIII. “Old Grover” Takes Over XIII. “Old Grover” Takes Over (cont.) (cont.) – Cleveland in 1885 was first Democrat to take Outspoken, unbending, and hot-tempered Military pensions gave Cleveland political headaches: oath of presidency since Buchanan, 28 years Narrowed North-South chasm by naming two former – Powerful Grand Army of the Republic lobbied for hundreds of Confederates to cabinet pension bills that granted benefits to earlier » Deserters Cleveland whipsawed between demands of: – Cleveland a man of principles: » Bounty jumpers – Democratic faithful want jobs Staunch apostle of hands-off creed of laissez-faire » Men who never served – Mugwumps, who had helped elect him, want reform » Former soldiers who incurred disabilities not connected to Summed up philosophy in 1887 when he vetoed bill – At first he favored reform, but eventually caved to carpings war to provide seed for drought-ravaged Texas farmers: of Democratic bosses – Conscience-driven president read each bill carefully: – “Though the people support the government,” “the – Fired almost two-thirds of 120,000 federal employees, » Vetoed several hundred government should not support the people”--Cleveland including 40,000 incumbent (Republican) postmasters, to make room for “deserving Democrats” » Laboriously penned individual veto messages to Congress XIV. Cleveland Battles for a Lower XIV. Cleveland Battles for a Lower XIV. Cleveland Battles for a Lower Tariff Tariff (cont.) Tariff (cont.) Tariff: Surplus could be reduced: – Would mean lower prices for consumers and less Increased to raise revenues for Civil War military – Squander it on pensions and “porkbarrel” protection for monopolies Republicans profited from high protection bills—curry favor with veterans and self-seekers – Would mean end to Treasury surplus Piled up revenue at customhouses – Lower tariff—big industrialists vehemently – Cleveland saw his duty and overdid it: By 1881 Treasury had annual surplus of $145 million opposed Made appeal to Congress late 1887 Most government income, pre-income tax, came from Democrats frustrated tariff – Cleveland knew little and cared less about tariff before entering White House Republicans rejoiced at his apparent recklessness: – Claimed lower tariffs would mean higher taxes, lower wages, – As he studied tariff, he favored downward and increased unemployment revision of tariff schedules First time in years, a real issue divided two parties XIV. Cleveland Battles for a Lower Tariff (cont.) Upcoming 1888 presidential election: – Democrats dejectedly renominated Cleveland in St. Louis convention: – Republicans turned to Benjamin Harrison: Grandson of former president William Henry (“Tippecanoe”) Harrison Two parties flooded country with 10 million pamphlets on tariff Republicans raised $3 million—heftiest yet—largely by “frying the fat” of nervous industrialists p503 p504 XIV. Cleveland Battles for a Lower XV. The Billion-Dollar Congress Tariff (cont.) Money used to line up corrupt “voting cattle” known as Republican in office: “repeaters” and “floaters” – Had only three more votes than necessary in In Indiana, crucial “swing” state, votes purchased for as much as $20 each House for quorum – Election day: – Democrats obstructed House business by Harrison nosed out Cleveland 233 to 168 electoral votes refusing to answer roll calls: Change of 7,000 N.Y. ballots would have reversed outcome Demanded roll calls to determine presence of quorum Cleveland polled more popular votes: Employed other delaying tactics – 5,537,857 to 5,447,129 – New Republican Speaker of House: Thomas B. Became first sitting president defeated since Martin Van Reed of Maine Buren in 1840 p504 XV. The Billion-Dollar Congress XV. The Billion-Dollar Congress (cont.) (cont.) Reed bent House to his imperious will Results of McKinley Tariff Act of 1890: Counted as present Democrats who had not – Debt-burdened farmers had no choice but to buy answered roll and who, rule book in hand, denied manufactured goods from high-priced protected industrialists they were legally there – Compelled to sell their agricultural products in highly competitive, unprotected world markets By such tactics “Czar” Reed dominated “Billion-Dollar – Mounting discontent against Tariff caused many rural voters to Congress”—first to appropriate that sum rise in anger – Showered pensions on Civil War veterans – In congressional election (1890) Republicans lost – Increased government purchases of silver majority—seats reduced to 88 as opposed to 235 Democrats – Passed McKinley Tariff Act of 1890: – Even McKinley defeated » Boosted rates to highest peacetime level – New Congress included 9 from Farmers'Alliance—militant » Average of 48.4 percent on dutiable goods organization of southern and western farmers p505 XVI. The Drumbeat of Discontent XVI. The Drumbeat of Discontent (cont.) People's party or “Populists”: Shorter workday and immigration restrictions – Rooted in Farmers'Alliance; met in Omaha (1892) – Populists uproariously nominated Greenbacker, Platform denounced “prolific womb of governmental General James Weaver injustice” – Homestead Strike (1892): Demanded inflation through free and unlimited coinage of silver—16 ounces of silver to 1 ounce of gold At Andrew Carnegie's Homestead steel plant, near Pittsburgh, officials called in 300 armed Pinkerton Called for graduated income tax detectives to crush strike by steelworkers over pay cuts Government ownership of railroads and telegraph Strikers forced Pinkerton assailants to surrender after Direct election of U.S. Senators; one-term limit on vicious battle that left 10 dead and 60 wounded presidency; adoption of initiative and referendum to After troops entered, union broken allow citizens to shape legislation directly p505 XVI. The Drumbeat of Discontent (cont.) Populists'remarkable showing: – In presidential election (see Map 23.3) – Achieved 1,029,846 popular votes and 22 electoral votes for Weaver – One of few third parties to win electoral votes – Fell far short of electoral majority – Populists votes came from only six Midwestern and western states; only four (Kan. Colo. Idaho, Nev.) fell completely into Populist basket Map 23-3 p506 p507 XVI. The Drumbeat of Discontent XVI. The Drumbeat of Discontent (cont.) (cont.) South unwilling to support new party: Alarmed, white elite in South played upon racial antagonisms to counter Populists'appeal and to woo – one million black farmers organized Colored poor whites back to Democratic party Farmers'National Alliance: Southern blacks were heavy losers Shared many complaints with poor white farmers White southerners used literacy tests and poll taxes to Populist leaders reached out to black community deny blacks the vote Stressed common economic problems Grandfather clause: Black leaders, disillusioned with Republican party, – Exempted from new requirements anyone whose forebear responded voted in 1860 – When black slaves had not voted at all – More than a century would pass before southern blacks could again vote in considerable numbers p507 XVI. The Drumbeat of Discontent XVII. Cleveland and Depression XVII. Cleveland and Depression (cont.) (cont.) Jim Crow laws: Cleveland in office again (1893): – Economic depression of 1893--causes: Imposed racial segregation in public places: – Only president ever reelected after defeat Splurge of overbuilding and speculation – Including hotels and restaurants Labor disorders; ongoing agricultural depression – Enforced by lynchings and other forms of intimidation – Same Cleveland, but not same country: Free-silver agitation damaged American credit abroad Debtors up in arms – Crusade to eliminate black vote had dire U.S. finances pinched when European banks began to Workers restless consequences for Populist party: call in loans Devastating depression of 1893 burst: – Tom Watson abandoned interracial appeal; became – Lasted for four years – Depression ran deep and far: vociferous racist – Most punishing economic downturn of 19th century 8,000 businesses collapsed in six months – Populist party lapsed into vile racism; advocated black disfranchisement Dozens of railroads lines went into receivers'hands  XVII. Cleveland and Depression XVII. Cleveland and Depression XVII. Cleveland and Depression (cont.) (cont.) (cont.) Soup kitchens fed unemployed Owners of paper currency would present it for gold If he had died, Vice President Adlai Stevenson, a Gangs of hoboes (“tramps”) wandered country By law, notes had to be reissued “soft-money” person, would be president— Local charities did their feeble best New holders would repeat process – would have deepened crisis U.S. government (bound by let-nature-take-its course Drained gold in “endless-chain” operation In Congress, debate over repeal of silver act ran its philosophy) saw no legitimate way to relieve suffering heated course: Gold reserve in Treasury dropped below $100 million – William Jennings Bryan championed free silver – Cleveland, who had earlier been bothered by a – Cleveland sought repeal of Sherman Silver Purchase Act of – Friends of silver announced “hell would freeze over” before 1890 surplus, now burdened with deepening deficit: – To do so, he summoned Congress into special session Congress would pass repeal Treasury required to issue legal tender notes for silver – Cleveland broke filibuster Cleveland developed malignant growth in his mouth: » Alienated Democratic silverites like Bryan bullion it bought – Removed with extreme secrecy » Disrupted his party at start of his term XVII. Cleveland and Depression XVII. Cleveland and Depression XVIII. Cleveland Breeds a Backlash (cont.) (cont.) Repeal of Sherman Silver Purchase Act: After tense negotiations at White House, the bankers Gold deal stirred up nation: agreed to lend government $65 million in gold – Only partially stopped drain of gold from Treasury – Symbolized all that was wicked in politics: Charged commission of $7 million February 1894, gold reserve sank to $41 million Cleveland's secretive dealings with Morgan savagely Did make significant concession when bankers agreed United States in danger of going off gold standard condemned as “sellout” of national government to obtain one-half of gold abroad Cleveland floated two Treasury bond issues in 1894 Cleveland certain he had done no wrong Loan, at least temporarily, helped restore confidence totaling over $100 million in nation's finances Cleveland suffered further embarrassment “Endless-chain” operations continued with Wilson-Gorman tariff in 1894. Early 1895 Cleveland turned in desperation to J.P. Morgan, “the bankers'banker,” and head of a Wall Street syndicate XIII. Cleveland Breeds a Backlash XIII. Cleveland Breeds a Backlash (cont.) (cont.) Wilson-Gorman tariff: Democrats'political fortunes: – Democrats pledged to lower tariff – Suffered several setbacks: – But bill that made it through Congress loaded House Democrats dislodged in 1984 with special-interest protection – Republicans won congressional election in landslide – 244 seats to 105 for Democrats – Outraged, Cleveland allowed bill to become law – Republicans looked forward to presidential race of 1896 without his signature: Cleveland failed to cope with economic crisis of 1893: Contained 2% tax on incomes over $4,000 – Became one of “forgettable presidents” along with Grant, When Supreme Court struck down income-tax Hayes, Garfield, Arthur, and Harrison provision in 1894, Populist and disaffected saw proof courts were tools of plutocrats p511