Download Politics in the Gilded Age

Politics in the Gilded Age
The Gilded Age was a time when corruption was common among
judges, politicians, and presidential advisors. Some corrupt
individuals were caught and punished, others went free. The Gilded
Age suggests that a thin glittering layer of prosperity covered the
poverty and corruption in society. The Gilded Age was a successful
time for America’s industrialists. Their wealth helped hide the
problems faced by immigrants, laborers, and farmers. It also helped
cover the abuse of power in business and government
During this time industrial expansion raised the output of the nation’s
factories and farms, but at the same time depressions, low wages,
and rising farm debt made the working class discontent.
In the late 1800s, businesses operated without much government
regulation. This hands-off approach is known as laissez-faire, the
belief that government should play a very limited role in business.
Many Americans accepted laissez-faire in theory. In practice,
however, many supported government involvement when it
benefited them. For example, American businesses favored high
tariffs (taxes) on imported goods to encourage people to buy
American goods; they also accepted government land grants and
subsidies. In order to ensure this government aid, businesses
supported politicians with gifts of money. Some contributions were
legal and some were illegal.
Washington’s financial support often invited corruption. One well
publicized example of corruption was the Credit Mobilier scandal. It
started when congress awarded the Union Pacific Railroad Company
loans and land in the west to complete the first transcontinental
railroad. Union Pacific hired an outside company –Credit Mobilier- to
build the tracks. Credit Mobilier charged Union Pacific too much on
purpose, and then the money flowed from the federal government
through the Union Pacific railroad to the shareholders of Credit
Mobilier. Credit Mobilier’s managers needed Congress to continue
funding the Union Pacific, so they could make money. So, they gave
cheap shares of valuable Credit Mobilier stock to those in congress
who agreed to support more funding.
Bribery also contributed to the spoils system in the United States.
Under this system elected officials appointed friends and supporters
to government jobs, regardless of their qualifications. Because of the
spoils system, by the Gilded Age, government was full of unqualified,
dishonest employees. Many politicians liked the spoils system
because it ensured them a loyal group of supporters in future
elections. Some politicians opposed it because it was ruining
government credibility. Neither party was immune, both Democrats
and Republicans handed out jobs to help get them elected.
During the Gilded Age Democrats and Republicans had about the
same number of supporters. Republicans appealed to industrialists,
bankers, and eastern farmers. The party was strongest in the North
and upper Midwest. Republicans favored a tight money supply, high
tariffs, generous pensions for veterans, government aid to railroads,
and strict limits on immigration. The Democrats appealed to the less
privileged, Northern urban immigrants, laborers, southern planters,
and western farmers. Democrats claimed to represent the interests
of ordinary people; they wanted increased money supply, lower
tariffs, higher farm prices, and less government aid to big business.
Since both political parties had roughly equal strength, presidential
candidates needed the votes of almost all members of their party to
win an election. To avoid offending party members, candidates
generally avoided taking stands on controversial issues. Enter the era
of the “forgotten presidents.”
Republican Rutherford B. Hayes was elected in 1877 and surprised
many of his supporters by refusing to use the spoils system. He
appointed qualified political independents to his Cabinet and fired
employees who were not needed. Thus, Hayes began to reform the
civil service (the government’s nonelected workers) which angered
many members of his party. Hayes announced he would not seek a
second term as president but after his attack on the spoils system he
probably could not have won his party’s nomination anyway. His
attack strengthened the government but it weakened the Republican
Party.
In 1880 Republican James A. Garfield won the presidential election.
Garfield did not support the spoils system, which proved to be fatal.
Garfield did not serve his whole term because he was shot by a man
who had expected a job from Garfield once he was elected president.
The murder of President Garfield caused a public outcry against the
spoils system.
After Garfield’s death Vice President Chester Arthur became
President. Before becoming Vice President Arthur had fought for the
spoils system. Once in office, however, he urged Congress to support
the reform of the spoils system. Arthur was able to pass the
Pendleton Civil Service Act in 1883, this act created a Civil Service
Commission, which classified government jobs and tested applicants’
fitness for them. It also stated that federal employees could not be
required to contribute to campaign funds and could not be fired for
political reasons. Reform was on a roll.
In 1884 Democrat Grover Cleveland won the Presidential election.
Cleveland favored tight money policies, so many businesses backed
him. But, not all of his policies were pro-business. He opposed high
tariffs and took federal land back from the railroads. Cleveland also
supported government regulation of railroad companies.
In 1888 Cleveland ran for president but lost to Republican Benjamin
Harrison. Their campaign had focused on tariffs (taxes on imported
goods). Cleveland wanted tariff reductions, Harrison wanted a tariff
increase. Harrison won the support of businesses, and won the
election. Once elected Harrison approved the tariff increase; he also
supported legislation on behalf of special business interests. These
actions would later damage the economy, and they did not help
Harrison in the election of 1892.
In the election of 1892 Cleveland won and entered his second term.
Shortly after his election a worldwide economic slowdown
contributed to a financial panic that hit the country in 1893. This
began a long depression during which many workers lost their jobs or
had their wages slashed. Despite the suffering, the government, and
Cleveland, offered no help. In his second term Cleveland managed to
anger not only the unemployed, but almost everyone else, farmers
and union members included. By 1896 Cleveland had turned many
fellow Democrats against him as well; he would not be nominated to
the office of President again.
In 1896 the Republican candidate, William McKinley won the election.
McKinley was supported by urban workers and the middle class.
President McKinley oversaw a new tariff bill and a stronger gold
standard. The economy began to climb out of depression and the
Republicans claimed the credit. The Gilded Age was coming to a
close.