Unit 6

Was President Ulysses S Grant really corrupt?

No, it was his appointees in his cabinet

Credit-Mobilier Scandal

a scandal that formed when a group of union pacific railroad insiders formed the credit mobilier construction company and then hired themselves to build the railroad with inflated wages. they bribed several congressmen and the vice president to keep the scandal from going public.

1872 election

Grant won, Horace lost

Crash of ‘73

4 year economic depression that was caused by over speculation on railroads and western lands. Was the first time there was an income tax. Gov. went back to the gold standard due to it being expensive to make silver and paper money.

election of 1876

Hayes(185) v. Tiden(184)

reconstruction ends. Recount is done and both sides claim victory in all 3 states leading to the compromise of 1877

Compromise of 1877

Southern leaders (democrats) offer to give all 3 states votes to republicans. Hayes agrees w/ the deal and becomes president.

African Americans are in danger due to their not being any troops to protect them from the KKK.

Post-reconstruction in the south

Not many African Americans would vote due to the literacy test being very hard to pass. Grandfather clause, poll taxes and Jim-Crows social laws arised

Grandfather clause

If your grandfather couldn’t vote, neither could you

poll taxes

small tax to vote, African American couldn’t afford to vote

Jim Crow’s social laws

Segregation between white and black. Separate facilities, funding was unequal. “codes of behavior” were implemented on African Americans, not able to make eye contact with a White person and not be allowed to look at any woman. Lead to rumors of rape. Whites and Black had separate train cars and areas in stores.

Depression of 1873

Economic depression. the poor class lose their homes and jobs, protesting like in the Great Railroad Strike

Great Railroad Strike

labor wages kept getting cut, so a labor uprising began, protesting for better wages. Railroad companies asked gov. to send out the national guard, which put a stop to the protesting.

Chinese Exclusion Act 1882

As immigration increased, factory owners liked the new Chinese immigrants because they could make the wages super cheap because they were desperate for money.

Garfield Presidency

From ohio,had great potential, but got shot by Charles Guiteau because he was rejected from being on his campaign. Half-breeds end up winning the next election.

Arthur’s presidency

focused on civil service reform, signing the Pendleton Act to end the spoils system, Chinese Exclusion Act

Election of 1884

Cleveland v. Blaine

Blaine exposed Cleveland for having a baby with a woman he wasn’t married to in hopes of receiving more votes. ( didn’t work)

Mugwumps, republicans, thought Blaine was too conservative and corrupt so the switched to voting for democrat Cleveland

Mugwumps

Reform minded republicans who thought Blaine was too conservative and corrupt

When Cleveland takes over, what issue he takes on finally divides the parties?

Protective tariff reform. Lowered tariffs on imported goods to make it fair to consumers

“Billion Dollar Congress”

peaks in 1890

Congress brought 1 billion dollars in revenue from the McKinley Tariff with a rate of 50%

Civil war veteran pension

“Wave the bloody shirt”

It was money for previous civil war soldiers, but it also was a way to sway Northern democrats to vote republican because voting against them meant opposing popular veterans and losing the veteran vote in their districts.

Why how did the Populist Party form

The poor believed the republican and democrat parties did not represent them, especially the farmers.

the raise of tariffs that favored banks and businesses also formed groups like Grenges and other Farmers Alliances that were in the Populist Party

Populist Party 1892

Ran a platform that takes up issues farmers struggle with.

ex. railroads, treasury plans

Deflationary cycle

1865-1890

Crops prices decreased and farmers borrowed money during the Civil War to expand their farms or buy machinery. When deflation hit, they had to repay these loans with dollars that were worth significantly more than when they borrowed them.

Free coinage of Silver

Forced fed. government to accept all silver bullion brought to its mints and convert it into legal tender coins to cause inflation so that it was easier for farmers and debts to pay off loans.

It ended with the passage of the Gold Standard Act of 1900 which solidified the gold standard

Homestead Steel Strike 1892

labor unrest due to the cut of laborer’s wages. The increase of new immigrants lead to the cut of these wages because company owners knew that they would have workers even if the wages were low. (desperate immigrants)

Depression of 1893

• Was predictable, same cause (over speculation)

• Over-Industrialized → more production than demand (couldn’t see all of their stock)

• Banks run, panicking in fear of the shortages of gold.

• Unemployment rate 20%

• Government loses money → way less revenue from tariffs since the market crashed

1895 Bailout

JP Morgan gave the government gold to in exchange for United States government bonds to then sell later for big profits.

This bailout prevented the nation from bankruptcy and stabilization.

How did railroads become the 1st big business?

1st corporation, different lines of work to operate the company(ex. engineers, maintenance, sales people, investing in infrastructure like bridges & tracks)

What lead to the over speculation of railroads?

Gov. likes the idea of railroads, and opens up gov owned land out west to give to the public interest for free. By 1900, nearly 200,000 miles of track.

Transcontinental Railroad 1869

railroad is finished and opened to the public

Cornelius Vanderbilt

invents the steel rails

• less likely to corrode

• cheaper

• makes the most money from railroads

Time zones

the public use of railroads made it difficult to know departure and arrival times so the government created 4 time zones.

How did the railroads impact towns and cities?

It either make or breaked the town/city based on the location of the railroads. Due to the trains going thru small farms, they didn’t get much business an those small town disappeared.

How did Jay Gould contribute to the wrongdoing in the railroad industry?

Bribed people and stock watering by lying about the companies profits in order for more people would believe they were reliable and get more sales.

interstate commerce

controlled by the federal government

Interstate Commerce Act 1887

compelled railroads to publish their standard rates to avoid discrimination and private rebates.

ex. higher rates for smaller farmers

Laissez-faire

role of federal government on businesses. They shouldn't;t be involved in business, the the railroad companies have to public ally show their rates and any new rules.

Andrew Carnegie

contributor to the rise of capitalism, especially in steel. Also used the innovation of vertical integration to maximize efficiency and destroy competition. Fabricated the “Gospel of Wealth” philosophical idea to justify his monopoly.

ex. buys mines in MN for iron, gaining more and more capital so he can sell cheaper that his competitions.

liquid capital

easily transferable money after civil war.

the rich were investing in the railroad company to get a chunk of the business, builds industrial america