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A.P. US
Mods 6/7/8
Artem Kholodenko
0109
Notes for pgs. 539 – 546
The Panic of 1873
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Jay Cooke
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Collapse of the Economy
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The Economic Results
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Currency Dispute –
“Sound Money”
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Hugh McCulloch
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The Federal Debt
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Public Credit Act of 1869
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Bland-Allison Act of 1878
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Greenback Party
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Speculation, industrialization and economic expansion
came in the postwar year
The country seemed to be full of opportunities with high
tariffs and rising prices; railroads were the biggest lure
In May 1869 the Union Pacific and Central Pacific lines
were joined by a golden spike producing a
transcontinental railroad and a new era
By 1873 almost 400 new railroad companies covered the
country
A Philly banker, he helped finance the Union effort with
his bonds during the Civil war and took over the new
transcontinental line, Northern Pacific in 1869
He needed financing, but by 1873 no one would by his
bonds; he didn’t meet expectations and his bank, the
largest in the nation, collapsed, along with the stock
market
A 5-year depression came next and caused devastation:
banks closed, farm price dropped, steel factories stopped
working, and 1 of 4 railroads failed; In 2 years 18,000
businesses went bankrupt
A dispute over currency also came from the depression
During the war yellow national bank notes and
greenbacks were used, the 1st was backed by gold, the
2nd wasn’t and would need to be removed from
circulation
Investors favored this policy and it was used by
Treasury Secretary McCulloch with Congress’s backing
Farmers and manufacturers depended on “easy-credit” –
greenbacks and were against the new policy, especially
when the demand for easy money rose during the
depression
Parties were divided by how to repay the federal debt
The Union borrowed a lot of $ during the war mostly by
selling bonds and by 1869 the issue of repaying them
was a problem
Suggested by John Sherman and other (R) leaders, it
promised to pay the war debt in “coin”
Old bonds were traded in for new ones that would be
paid within the next generation
A bill defined “coin” as a gold not silver coin, form which
the dollar was made and then discontinued
Many democrats demanded along with some (R) to
restore the silver dollar, after 1875 to restore the
economy and relieve the depression
The law required the treasury to buy and turn into coins
each month $2mil. - $4mil. of silver
Started in 1876, it adopted the debtors’ cause and fought
to keep greenbacks, but didn’t get anywhere
The depression ended in 1889 and the need for easy
Reconstruction and the
Constitution
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Texas vs. White (1869)
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Slaughterhouse Cases of
1873
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Duel Citizenship
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Backing from the
Enforcement Act
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Republicans in Retreat
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Reconstruction
Abandoned
Redeeming the South
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New Democrats
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money began to vanish and a new issue was created
Questions about the support of the court of freedmen’s
rights was brought up and the Ex parte Milligan decision
of 1866 proved to not, where the judge said that a
military court won’t try civilians were war was not
present and civil courts were
Another question was if the court would sabotage the
reconstruction plans
The court ruled that while the Union was not breakable
and secession illegal, Reconstruction was constitutional
That supported the (R) but in the 1870s cases with the
14th and 15th amendment arose and the court backed
away
During these trials the court began to chip away at the
14th amendment
The cases involved business monopoly more than
freedmen’s right, but still applied
In 1869 LA granted a monopoly to one slaughterhouse
and closed all other
The national court brought up duel citizenship and said
the 14th protected on the national basis, but not on the
state one
Two more cases had the courts back off: US v. Reese
(1876), where KT officials wouldn’t let blacks vote, but
were indicted by the state court; the Supreme court said
that the act didn’t protect suffrage, just said that not
allowing to vote couldn’t be based on race or color
In US vs. Cruikshank, the issued involved the Colfax
massacre where 70 blacks surrendered but ½ killed; the
court said the 14th protected individuals from states, not
other individuals
In 1883 the Civil Rights Act of 1875 and KKK Act of 1871
was invalidated, dismantling Reconstruction
The (R) left their plans gradually, beginning with Grant’s
election in 1868
Grant tried to enforce Reconstruction but wasn’t a fan of
it, supporting less federal control in local and state affairs
In 1870s military presence shrank in the south
By 1875 radical (R) vanished from the scene, with Chase,
Stevens, and Sumner dead, while others abandoned
ideas and office positions
Now (R) agreed with (D) that although in need of
freedom, blacks were inferior to whites
Democrats began to gain massive power and control
By 1872 their power was regained in TN, VI, GA, & NC
The (R) survived in SC, FL, & LA
After 1872 almost all ex-Confed. officials regained office
Some carpetbaggers returned north while others joined
the (D)
Scalawags deserted the (R) in even larger #s
Blacks gained control in the (R)’s as white southerners
left the party
They were divided into businessmen who wanted to
“White League”
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Redemption
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The Election of 1876
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Common Ground for
Candidates
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Corruption Begins
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Compromise of 1877
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industrialize the south and Bourbons who were the old
planter elite who wanted to keep agriculture important
In AL (D) won by cutting taxes and getting out the white
vote
An organization formed in 1874, it undermined the (R)
hold by intimidating black voters, like the KKK
Blacks still continued to vote despite the patrols of white
gangs
This word described the (D) return to power
Some policies cut back taxes, cutting social programs,
lowered taxes, and revised tax systems to relieve
landowners
Blacks were restricted from fishing, hunting, carrying
guns, owning dogs
Some blacks went to Kansas, away from the whites
The (R) nominated Rutherford R. Hayes (3x Ohio Gov.)
who presented himself as a moderate on the southern
policy, favored home rule and guaranteed civil and
political right for all – contradictory
The (D) nominated gov. Samuel J. Tilden of NY who was
a millionaire corporate lawyer and political reformer
He assaulted the Tweed Crime Ring that controlled NYC
and campaigned against fraud and waste
Both were fiscal conservatives and favored sound money;
endorsed civil-service reform, and decried corruption
Tilden won the popular vote by a small margin and
seemed like the likely winner
During this period, the (R) discarded legitimate (D)
ballots and (D) illegally prevented freedmen from voting
In Jan. 1877 the congress created a committee to decide
what to do with the votes; Hayes won 8 to 7
The congress had to certify the vote, but (D) controlled
the House and stalled
Delegates met to make promises about the lection, for
example, if Hayes won he would have to remove troops
from SC and LA and (D) would gain control of those
states
Hayes’s election was ratified by Congress, who once in
office fulfilled some of the promises
He appointed a former confed as postmaster and ordered
fed. troops out of SC and LA as (D) took control of those
state gov.
Promises to treat southern blacks fairly were forgotten by
the (D) and Hayes’s pledges to ensure black’s rights
They party didn’t mean to make good on their promises