Populism and Progressivism Government and Politics at Home and Abroad

1. Populism and ProgressivismGovernment and Politics at Home and Abroad Chapter 12

2. Politics in the Gilded Age • Americans thought of themselves as living in a democracy- but the power of business seemed to call that into question. Who was in charge- the citizens or the corporations? Wasn’t it the government’s job to look out for the people? Then why were so many leaders siding with the industrialists?

3. Urban Politics • Industrial cities often ruled by Political Machines- men behind the scenes who held power- but not offices. Have been around for a century, but reached their zenith in the late 1800s. Used spoils system to make $$ for party leaders- generally through corruption or other illegal means

4. Boss Tweed • Ran the most infamous “machine” in NYC- Tammany Hall. Cities had grown, but city government had not- bosses like Tweed took advantage of the gap. • Controls city gov’t by controlling votes of immigrants, so he “helped” them in return for their votes, giving away more than $2 million in charity, and funding schools and hospitals. At the same time- Tweed gained as much as $200 million for himself/supporters through spoils, fraud and embezzlement.

6. Thomas Nast • Political Reporter for NY Times- exposed Tweed’s actions in a series of Political Cartoons (Nast is credited with their modern creation) • Tweed offered him $100,000 to stop, Nast refused. Samuel Tilden eventually prosecuted and Jailed Tweed in 1873. • Boston, Chicago, Philadelphia, St Louis, and Cleveland also known for their political machines- these were often a main target for reformers

8. Corruption at the National Level • One way Robber Barons got what they wanted was by “investing” in lawmakers- putting them on Board of Directors, or giving them stock within the company. • Credit Mobilier: Construction Co created by Union Pacific RR, then hired by RR at ridiculous prices to build transcontinental with gov’t $$. Ends up making $75 mil on a $50 mil contract. Story breaks during the 1872 presidential campaign, 13 members of congress, and the VP found to be shareholders in the Co. Congressmen censured, VP replaced on ticket, but no other action.

9. Whiskey ring • 1875. A group of mostly Republican politicians were able to siphon off millions of dollars in federal taxes on liquor. Diversion of tax revenues in a conspiracy among government agents, politicians, whiskey distillers, and distributors. Tainted Grant’s presidency- while there was never any direct evidence he was involved, some were his friends, and when scandal was exposed he kept attorney general from strong prosecutions.

10. Political Parties • Divides of war have not faded. • Republicans. Every Republican president elected from 1868-1900 had served in the union army, and they consistently hold 16 states in the North and West. • Democrats: have the south, and do well with Catholic voters, especially the Irish in the cities. Have 14 “solid” states. • That leaves 5 “swing” states- with NY and OH being the most important, the man who takes those takes the presidency, and that was typically a republican, they won all but 2 presidential elections. • String of one term presidents, we have another dry patch of leadership during from 1876-1900

11. Presidential Rankings: C-Span Survey, 2009 29. Zachary Taylor 30. Benjamin Harrison 31. Martin Van Buren 32. Chester Arthur 33. Rutherford Hayes 34. Herbert Hoover 35. John Tyler 36. George W. Bush 37. Millard Fillmore 38. Warren Harding 39. William Harrison 40. Franklin Pierce 41. Andrew Johnson 42. James Buchanan

12. Halfbreeds/Stalwarts/MUgwumps • Both Democrats and Republicans had internal issues, both depended on Patronage (Spoils) to keep supporters happy. • Stalwarts(Roscoe Conkling) and Halfbreeds (James Blaine): two factions within the Republican party arguing about who should be in control of handing out spoils • Mugwumps: Reformers within the party who wanted to limit patronage. • Democrats also divided between southern and urban factions

13. Civil Service Reform • Presidency of Rutherford B Hayes was dominated by patronage- after all, that’s how he had been elected president. Constant demands made it difficult for Hayes to govern effectively- he proposed civil service reform, got nowhere • By 1881 the number of federal jobs had tripled since 1865, from 53,000 to 166,000.

14. James A Garfield • Elected president in 1880, he was a halfbreed, and his VP Chester Arthur was a Stalwart. • 4 months after election, Garfield was assassinated by Charles Guiteau, a disappointed office seeker and Stalwart. • The assassination led to a call for civil service reform- the patronage system had been discredited.

15. Pendleton Act • 1883 Congress created civil service reform. Pendleton Act designated a variety of federal jobs (10%) that would be filled via a competitive exam process rather than patronage. • A 1st step to creating a professional bureaucracy. Today only about 30% of federal jobs are filled through appointment.

16. Cleveland, Harrison, and Economic issues • Industrialists kept ties to both parties- after all, you never know who will win…. Republicans favored high tariffs, Democrats had close ties to banking. • US withdrew Greenbacks issued in the war in 1879, and returned to the Gold Standard. • Grover Cleveland won the presidency in 1882: 1st president to openly oppose special treatment of business, and to advocate reform

17. Interstate Commerce Commission • Wabash v Illinois has said states could not regulate RR, b/c RR operate as interstate commerce. So Congress acted to begin regulation. • Created ICC to regulate RR, saying that all rates must be “reasonable and just”. Had power to investigate, but not power to enforce. Still, a step in the Right direction…

18. Sherman anti-Trust Act • In election of 1888 the main topic was the tariff. (1st time since civil war econ has been the main issue between parties) Cleveland won popular, but Benjamin Harrison (Grandson of William Henry Harrison) won electoral. Harrison a very passive president, but public is developing a strong outcry for trust-busting, and federal gov’t was taking notice. • 1890 passed Sherman Anti-trust: outlawed agreements in “restraint of trade”. Still too vague, and with no provisions for enforcement.

19. McKinley Tariff • Proposed in 1890 by Republican representative William McKinley- the highest protective tariff in history of US, 48% on a variety of goods • Reaction against tariff led people to vote for Democrats, and Grover Cleveland Re-elected in 1892, our only non-consecutive president. Cleveland was laissez faire, and lowered tariff to allow greater trade/invisible hand etc…(though it didn’t go down that much) Tariffs and Silver the main econ issues of 1890s

20. Panic of 1893 • Worst financial crisis of 1800s, and the 1st depression of the new industrial age. • 20% unemployment, 8000 businesses go bankrupt. • Sparked by a collapse in the stock market, long term causes were overbuilding of RR and speculation in stocks. • Gold reserves dip to dangerous levels, the federal deficit soars. • Persuades many to give up laissez faire, people are looking for gov’t intervention

22. Populism and Free Silver • Farmers didn’t need the panic to persuade them, they had been asking for gov’t help for some time. • While farmers had influence in many agricultural states, those states had smaller populations, and farmers were losing national influence. • In both the south and the west, the cycle of debt created huge burdens, and more and more farmers became motivated to seek political influence by attempting to break the hold of industry on the government.

23. Farmer’s Organizations: the Grange • The common name for members of the Patrons of Husbandry, formed in 1867. Actually created for educational and social purposes, had meeting with lectures, picnics etc… to reduce the isolation common to farm families. Most successful in Illinois, Wisconsin, Iowa, and Minnesota • 1st issue was against RRs- they protested unfair rates and grain storage charges. • Had 1.5 million members by 1873. Asked for laws which regulated RRs and warehouses. Formed co-ops to store their own grain, and negotiate for better RR rates.

24. Greenback Labor • Emerged in the 1870s- protesting the return to the gold standard, which meant there was less $$ available in the economy. Would eventually merge in to the populist party, which would take up “Hard” vs “Soft” money as a major political issue

25. Farmer’s Alliances • A lot like the Grange, with educational and social goals, but in the South. • Main complaint was that farmers struggle with cashflow during much of the year. • Wanted Federal gov’t to create a subtreasury which would loan farmers up to 80% of the value of their crops until harvest, and for the gov’t to run grain storage, not RR

26. Formation of the Populist party • Grange and Farmer’s Alliance decided they needed a national party to fight for their rights. Created Populist party in 1891, and nominated James B Weaver for President in 1892. • Wanted to expand beyond farmers to all “producers” saying “Eastern Establishment” of RR, Banking and Industry were exploitive • Carried 4 states (very rare for a 3rd party) – had 9% of popular vote.

28. Omaha Platform • Populist Platform 1892 asked for: • Unlimited coinage of silver at a ratio of 16:1 to create inflation • A graduated income tax to redistribute wealth. • Government ownership of RR, telephone and telegraph • Initiative, Referendum, and Recall on federal as well as local ballots • Postal savings banks run by the gov’t. • Direct election of senators • An 8 hours workday.

30. Populism and Free silver • During panic of 1893 populists (and many others) were vocal in proposing silver as a solution to econ issues. • If we base $$ on silver, not gold, we can have more, which will create inflation, (which is good for farmers),and those in debt would be able to get clear b/c $$ would be “cheaper”. • For populists, silver represented the idea of a return to power of ordinary people, not the super-rich.

31. Election of 1896 • Democratic party had a substantial silver faction “Silver Democrats”. Absorbed a number of populist ideas, so many threw their support behind Democratic nominee- William Jennings Bryan.

33. Cross of Gold Speech • Given at Democratic national convention • It is the issue of 1776 over again. Our ancestors, had the courage to declare their political independence of every other nation; shall we, their descendants, declare that we are less independent than our forefathers? No, my friends, that will never be the verdict of our people. Therefore, we care not upon what lines the battle is fought. Having behind us the producing masses of this nation and the world, supported by the commercial interests, the laboring interests, and the toilers everywhere, we will answer their demand for a gold standard by saying to them: You shall not press down upon the brow of labor this crown of thorns; you shall not crucify mankind upon a cross of gold

34. William McKinley • Business leaders responded to populism and free silver by pouring $$ into the Republican Candidate- William McKinley, who won in a landslide. Bryan SO obsessed with Silver it turned people off, also populists were staunchly protestant, and fearful of immigrants/catholics etc… which created dissention in the party.

35. Wizard of OZ • Written by L Frank Baum in 1896 as a metaphor for the election. • Dorothy (who represents the ordinary citizen) wore “silver shoes” (soft $, no one is sure of their power) to walk on the “yellow brick road” (gold standard- the path we all know) • Scarecrow represents the mid-western farmers, Tin man urban labor. Cowardly Lion is William Jennings Bryan, the Wizard is McKinley. • City of Oz is an industrial capital. Wicked Witch actually from East (they flipped it later for the movie) represents industrial owners.

37. McKinley Prosperity and the end of populism • Economy began to improve, and populism began to die out. • New gold sources in Australia, South Africa and Alaska increase the amount of $$ in circulation. • Record harvests eased things for farmers • American Imperialism changed the focus of the nation…..

38. Legacy of Populism • Populism failed as a 3rd party movement, but many of it’s ideas will be adopted by the rising progressive movement. • Eventually the majority of their ideas will be enacted • RR legislation/Trust busting • Graduated income tax (gee thanks) • Direct election of senators • Initiative, referendum and recall on local ballots • Federal savings banks.

39. Imperialism • George Washington had warned the US to avoid “entangling alliances”. And with a few hiccups (War of 1812, Monroe Doctrine) Mex- American War) we listened. • Tended towards isolationism- we were building our own country, and our location kept us out of the action. But Industrialization has brought us into the world economy, and that will bring us into world politics as well- we want to show we are one of the “big boys”

40. Manifest Destiny • Manifest Destiny had in fact been fairly imperialist- we just conquered the land next door, and our own natives rather than “tropical dependencies”. • Once our territory spread “sea to sea” we began looking in other areas: Alaska purchased in 1867 to keep Russia out of N America. We also occupied the Midway Islands, Hawaiian Islands and Samoa in the Pacific to facilitate trade and support our navy (12th in the world- after Chile).

41. Causes of Expansionism • No more frontier- and many Americans felt a continued need for growth (safety valve) • Panic of 1893 convinced industry they needed more than domestic markets • Labor unrest growing- and gov’t thinks we could use expansion • Subjugating Indians had made us experts on exerting control over the “less civilized”

43. Industrialization and Imperialism • Instead of looking for land to settle, or for treasure, European (and Asian- Japan is involved) nations are looking for industrial resources and markets. European countries are small, and their economies are big- colonies represent an ideal monopoly • 3 types • Political Imperialism • Economic Imperialism • Social-cultural Imperialism

44. New Manifest destiny • As Frederick Jackson Turner said- Americans have always been defined by the idea of a Frontier- exploring new lands and creating new opportunities. We’ve run out at home…. • Became worried that Europeans would out play us for foreign trade markets….Senator Henry Cabot Lodge said “We must not fall out of the line of March”.

45. More Social Darwinism • Big part of imperialism is that white are not only the “fittest” (and therefore destined to rule) but have a “duty” to “civilize” other races….The “White Man’s Burden”. And we have experience- after all, look what we have done for African Americans and Native Americans….

46. Sea Power • Has been rising in importance in Europe since the Napoleonic Wars • Alfred Thayer Mahan published The Influence of Sea Power on History in which he argued that Great Britain had become the most powerful nation in Europe by developing a strong Navy. Encouraged US government to start spending $$ on ships (which we do beginning in 1896 with 11 battleships) and to build a Canal across Central America (completed 1911)

47. Venezuela Boundary Dispute • 1895-96. Border between British Guiana and Venezuela had been in dispute for decades- and became heated when gold discovered in disputed territory. • Pres. Cleveland- citing Monroe Doctrine- warned Britain not to “overstep” bounds. Britain seriously offended – but didn’t have time to deal, they were in the middle of the Boer War, so accepted arbitration. • Enhanced the prestige of US

48. Spanish American War • Our 1st foray into international politics as a powerful nation. • 1895 Cuba (a remnant of the once mighty Spanish Empire) was attempting to gain independence. US has significant investments in Cuba (sugar plantations and mining interests) and we like the idea of them as independent- we’ll get better deals. • Spain is NOT enthusiastic- enact harsh policies – Reconcentrado – to stamp out revolution, essentially imprisoning vast sections of the Cuban population.

49. Yellow Journalism • Newspaper owners (Hearst and Pulitzer) used the Cuban revolution to sell papers- publishing stories of atrocities. (called “yellow” from a popular cartoon at time of “yellow kid”.) • Influenced how Americans felt about Spain’s policy- and our desire for war- “Jingoists” (warhawks) called for US to save Cuba