Gilded Age and Populism Review

• How did railroad companies pricing policies help big shippers but hurt farmers and smaller business owners? 

• Railroad companies often used discriminatory pricing practices, such as:

• Rebates: Secret discounts given to large shippers (e.g., Rockefeller’s Standard Oil), which smaller businesses and farmers couldn’t access.

• Long-haul vs. short-haul rates: Charging higher rates for shorter distances, which disproportionately affected small farmers and businesses

• How did patents help stimulate individuals to develop new inventions? 

• ex) Henry Bessemer- patented Bessmer process which made steel better quality 

• Patents give inventors exclusive rights to their creations, encouraging innovation by ensuring they can profit from their ideas. 

• What are the advantages to businesses that use mass production and the assembly line?

• Mass production and assembly lines allow businesses to:

• Increase efficiency: Produce goods faster and at a lower cost

• Standardize products: Ensure consistency in quality.

• Lower prices: Pass savings on to consumers, increasing demand.

•  What exactly is a corporation?

•  A corporation is a legal entity separate from its owners (shareholders).

• How does a corporation function? 

• Ownership: Shareholders own the corporation and elect a board of directors.

• Management: The board hires executives (e.g., CEO) to run day-to-day operations.

• Profit: Profits are distributed to shareholders as dividends or reinvested in the company.

• Example: Standard Oil was a corporation owned by shareholders, with John D. Rockefeller as its leading figure.

• Why might investors buy or sell stock? 

• Buy: To earn dividends (a share of profits) or benefit from rising stock prices.

• Sell: To cut losses if the stock price falls or to cash in on gains.

• Example: During the Gilded Age, investors bought stock in railroads and steel companies, hoping to profit from industrial growth.

•  How might monopolies be dangerous to citizens and workers in society?

• Raise prices: With no competition, monopolies can charge whatever they want.

• Exploit workers: Monopolies often pay low wages and provide poor working conditions.

• Stifle innovation: Without competition, there’s less incentive to improve products or services.

•  How would you define laissez faire capitalism? 

• an economic system where the government has minimal involvement in business.

• Laissez-faire policies allowed businesses to:

• Operate with little government interference

• Exploit resources and labors

• Grow rapidly without restrictions

• Example: Industrialists like Carnegie and Rockefeller thrived in this environment, building massive empires.

•  How did laissez faire capitalism contribute to the Gilded Age?

• Laissez-faire policies enabled:

  • Rapid industrialization

  • The rise of monopolies

  • Wealth accumulation by a few (the “robber barons”)

• However, it also led to:

  • Poor working conditions

  • Economic inequality

  • Lack of consumer protections

• How did the wealthy view their responsibilities to society? “Gospel of Wealth”

• Andrew Carnegie’s Gospel of Wealth argued that the wealthy had a moral obligation to use their riches to benefit society. This idea supported philanthropy:

• Triangle Shirtwaist Factory Fire

•  fire that happened in a factory that increased support for labor reforms 

• labor union 

• workers form to protect worker rights 

• ex) Knights of Labor, AFL

• American Federation of Labor

• Founded by Samuel Gompers in 1886, the AFL focused on skilled workers and used collective bargaining to negotiate with employers.

• It avoided radical politics and sought practical improvements like higher wages and shorter hours.

socialism

• A political and economic system advocating for public or worker ownership of the means of production (e.g., factories, railroads).

• Socialists like Eugene Debs argued that capitalism exploited workers and that wealth should be distributed more equally.

anarchist

• someone who opposes all forms of government and advocates for a stateless society.

• Anarchists were often associated with violence, such as the Haymarket Affair (1886), which hurt the public image of labor unions.

• collective bargaining 

• The process by which unions negotiate with employers for better wages, hours, and working conditions.

Gompers

• Gompers focused on “bread and butter” issues like wages and hours, avoiding radical politics.

debs

• Debs advocated for workers’ rights and ran for president multiple times as a socialist candidate (really idealistic) 

• How is collective bargaining helpful to Unions? 

• Collective bargaining gives unions a formal process to negotiate with employers for better wages, hours, and working conditions.

• How did labor unions work for better rights in the workplace? 

• Unions organized strikes, boycotts, and protests to pressure employers.

• They lobbied for laws to improve working conditions, such as the 8-hour workday and child labor restrictions.

• Example: The Pullman Strike (1894) was an attempt to protest wage cuts and high rents.

• Why do you think unions were so important to laborers in the late 19th century?

• Unions gave workers a collective voice to demand better treatment and challenge powerful corporations.

• Why did labor unions experience so much difficulty in the late 1800s?

• Government bias: Courts and politicians often sided with businesses, issuing injunctions against strikes.

• Why did some Americans begin to fear labor unions in the late 1800s? 

• Association with radicalism: The rise of socialism and anarchism made some Americans view unions as threats to capitalism and social order.

• Chinese Exclusion Act 

• The Chinese Exclusion Act was the first major law restricting immigration to the U.S., specifically targeting Chinese laborers.

• It was fueled by nativism and economic competition, as many Americans blamed Chinese workers for low wages and unemployment.

• Compare a tale of two cities – Chicago and New  York. 

• Financial Capital: New York was the center of finance, commerce, and culture, home to Wall Street and major corporations.

• Industrial Hub: Chicago became a center for meatpacking, railroads, and manufacturing, earning it the nickname “Hog Butcher for the World.”

• How were exodusters an example of internal migration?

• The large-scale black migration from the South to Kansas due to the discrimination 

• What is the Turner Frontier Thesis and how does this apply to the west?

• Basically with the westward expansion was a whole era so Turner felt that it showed a lot of American character like individualism and self reliance . This showed democratic ideals because everyone who moved let go of their wealth and background. Essentially it gave people a way to start fresh and he said once this stopped in 1890 it has a long lasting effect

• settlement house

•  Community centers that provided services to the urban poor, such as education, childcare, and healthcare.

• Jane Addams 

• A leading social reformer and founder of Hull House in Chicago.

• Hull House 

• One of the first settlement houses in the U.S., founded by Jane Addams in 1889.

• Explain the significance of How the Other Half Lives. 

• Written by Jacob Riis in 1890, this book exposed the harsh living conditions of the urban poor through photographs and detailed descriptions.

• It shocked middle- and upper-class Americans, many of whom were unaware of the poverty and suffering in their cities.

• spoils system 

• A practice where political leaders rewarded supporters with government jobs, regardless of their qualifications.

• Interstate Commerce Commission Sherman Antitrust Act 

• Created in 1887 to regulate railroads and ensure fair rates for farmers and businesses.

• 1st gov intervention 

• city bosses 

• They provided services to the poor and immigrants in exchange for votes, maintaining their power through patronage and the spoils system.

• graduated income tax 

• More you make more you pay tax 

patronage

• The practice of granting favors, jobs, or resources in exchange for political support

• City bosses used patronage to maintain their power and reward loyal supporters.

merit

• The idea that government jobs should be awarded based on qualifications and performance, rather than political connections.

• civil service commission 

• Established by the Pendleton Act to oversee the hiring of federal employees based on merit.

• It aimed to reduce corruption and the influence of the spoils system

• Why were city bosses so popular with the poor and immigrants? 

• provided essential services, such as jobs, housing, and food, to the poor and immigrants in exchange for their votes

• Why was Boss Tweed so notorious? 

•  provided jobs and assistance to Irish immigrants, securing their loyalty

American Federation of labor-

Signed "skilled" workers, moved away from the socialist goals that were set up before.

13th/14th/15th Amendments*

13- 1864 officially ended slavery not just in confederate states
14- 1868 all people in the united states are citizens
15- 1850 cannot deny a citizen a right to vote based on color

Angel Island

Placed to house immigrants coming to America via the west coast. In San Francisco

Battle of Little BigHorn

Sioux leader sitting bull led the fight against general George Custer and the 7th cavalry. 1876, last major battle.

Black Codes

laws passed in the south just after the civil war aimed at controlling freedmen and enabling plantation owners to exploit african american workers. Passed before radical reconstruction in 1876

Boss Tweed

William Tweed, head of Tammany Hall, NYC's powerful democratic political machine in 1868. Between 1868 and 1869 he led the Tweed Reign, a group of corrupt politicians in defrauding the city. Example: Responsible for the construction of the NY court house; actual construction cost $3 million. Project cost taxpayers $13 million.

Corporation/Trust (as compared to Single/Joint Proprietorship)

A legal entity separate from individuals that control it; limited liability; pooled resources finance large-scale enterprises. A business owned by stockholders who share in its profits but are not personally responsible for its debts (able to raise the large amounts of capital needed to invest in industrial equipment).

Dawes Act*

An act that removed Indian land from tribal possession, redivided it, and distributed it among individual Indian families. Designed to break tribal mentalities and promote individualism.

Gospel of Wealth

This was a book written by Carnegie that described the responsibility of the rich to be philanthropists. They would give money to people in the form of libraries or promoting the arts.

Homestead Act*

Passed in 1862, it gave 160 acres of public land to any settler who would farm the land for five years. The settler would only have to pay a registration fee of $25.

Homestead Strike*

1892 steelworker strike near Pittsburgh against the Carnegie Steel Company. Ten workers were killed in a riot when Pinkerton detectives were brought in to force an end to the strike.

How the Other Half Lives*

a book by John Riis that told the public about the lives of the immigrants and those who live in the tenements 1890

Jim Crow Laws

Laws designed to enforce segregation of blacks from whites. This is after radical reconstruction.

Pendleton Act*

1883 law that created a Civil Service Commission and stated that federal employees could not be required to contribute to campaign funds nor be fired for political reasons

Plessy v. Ferguson*

a 1896 Supreme Court decision which legalized state ordered segregation so long as the facilities for blacks and whites were equal

Pullman Strike*

1894 - nonviolent strike (brought down the railway system in most of the West) at the Pullman Palace Car Co. over wages - President Cleveland shut it down because it was interfering with mail delivery

Sand Creek Massacre*

an attack on a village of sleeping Cheyenne Indians by a regiment of Colorado militiamen on 29 November 1864 that resulted in the death of more than 200 tribal members

Transcontinental Railroad*

Completed in 1869 at Promontory, Utah, it linked the eastern railroad system with California's railroad system, revolutionizing transportation in the west

Ulysses S. Grant

Public Credit Act: promised U.S. debts would be paid in gold, boosting economic confidence Bondholders who purchased bonds to help aid in financing the Civil War would be paid back in gold Transcontinental Railroad: connected the east and the west, speeding up travel and trade across the U.S. Helped with westward expansion which made conflicts with Native American tribes and settlers worsen because of the tension over land Black Friday: Jay Gould and James Fisk tried to control the gold market, causing a financial panic/crisis Drop in gold prices which damaged Grant’s reputation and the US economy Civil Service Commission: created by Grant to reform government jobs and reduce corruption by limiting favoritism in hiring Improved the overall performance and the morality of the workforce which significantly improved the American economy and society Tariff Act of 1872: lowered taxes on certain goods to encourage trade and reduced prices, part of Grant’s economic policies It was a list of free items that were exempt from taxation when they were in entry to the US Credit Mobilier: a corruption scandal involving railroad construction and bribery of politicians, happened during Grant’s presidency and hurt his administration’s reputation Scandal were railroad companies were overcharging large sums of money for the contracts within the government Coinage Act 1873: stopped minting silver dollars, favoring gold and angering farmers and debtors, called it the “crime of ‘73” Purpose was to establish the US dollar as a national currency Panic of 1873: a major financial crash during his presidency that caused bank failures and high unemployment, leading to a severe economic depression Specie Resumption Act: planned to make paper money exchangeable for gold to stabilize currency Essentially helped stabilize currency by resuming payments in gold Whiskey Ring: government officials tried to hide from liquor taxes, Grant defended his secretary

Rutherford B. Hayes

“Compromise of 1877”: when Rutherford B. Hayes president, Reconstruction ended and left African Americans without protection from discrimination.  1876 US vs. Reese: a Supreme Court case that allowed states to use poll taxes and literacy tests to block African Americans from voting. This made it harder for Hayes to enforce civil rights during his presidency Great RR Strike (1877): a large workers’ strike over wage cuts in the railroad industry. Hayes sent federal troops to stop the strike, leading to violence and deaths but also restored order 1877 Munn v. IL: a Supreme Court decision allowing states to control businesses like railroads and grain storage that affected the public, this helped balance government power and business interests during Hayes’ presidency 1878 Bland-Allison Act: required the government to buy silver and make silver coins to help farmers and people in debt, Hayes vetoed it because he supported the gold standard, but Congress passed it anyway

James A. Garfield

Compromise Candidate: Successfully unified the Republican Party factions (Stalwarts and Half-Breeds), helping to maintain party cohesion.

• Garfield’s name was a compromise candidate

Civil Service Reform Advocacy: Began pushing for reform to combat corruption in government hiring practices, laying the groundwork for the Pendleton Act under Arthur.

Assassination: His presidency was tragically cut short after only six months due to an assassination, limiting his ability to achieve significant policy goals.

Star Route Scandal: Although he inherited this issue, it reflected poorly on the Republican administration’s management of government contracts.

Chester A. Arthur

1882 Tariff Commission: was created to recommend changes to tariff reforms; Arthur supposed moderate tariff reductions to reduce the excessive government revenue while also protecting the domestic industries and his administration laid the groundwork for the future tariff reforms after his term

Chinese Exclusion Act: first federal law restricting immigration which prohibited Chinese laborers from immigrating for 10 years and denying Chinese immigrants US citizenship; Arthur was initially hesitant but ended up signing the act under the pressure from Americans who had anti-Chinese sentiment and labor unions who were fearing competition for their jobs

1883 Pendleton Act: this was legislation that created a merit-based federal civil service system (competitive exams for certain government jobs and reducing reliance on the spoils system); Arthur signed act into law (shift in reform after President Garfield assassination which showed the dangers of a spoils system)

Grover Cleveland

Ma, Ma, Where’s My Pa: this was a slogan used by opponents during Cleveland’s 1884 presidential campaign (referencing his fathering an illegitimate child); Cleveland publicly acknowledged the child and took financial responsibility but it still threatened his campaign

1886 Wabash: Supreme Court ruled that states couldn’t regulate interstate commerce (motivated by the unfair railroad rates); case created federal action under Cleveland administration which eventually led  to the Interstate Commerce Act

St Louis & Pacific RR Co VS IL: Supreme Court decision stating that states couldn’t put regulations on interstate railroads; showed the need for federal oversight and eventually influenced Cleveland’s support for the Interstate Commerce Act

1886 Haymarket Riot: violent conflict in Chicago between police and labor protestors advocating for 8-hour workday and resulted in multiple deaths after a bomb; Cleveland emphasized law and order and a cautious stance toward labor movements to prevent further chaos

1887 Interstate Commerce Act: first federal law regulating railroads, establishing Interstate Commerce Commission (ICC) to regulate fair rates and practices in interstate commerce; Cleveland signed act into law and proved to be promoting fairness in trade

Benjamin Harrison

Sherman Antitrust Act (1890): This was the first attempt to stop monopolies. This restricted interstate commerce effectively putting a stop to competition in the marketplace. But this was not reinforced and so, it failed ultimately. 

McKinley Tariff Act (1890): This was the increase of cost on certain hoods specifically lowering those that supported American manufacturing interests. This hurt the farmers due to the high cost of supplies to make foods yet benefited Northern manufacturers.

Billion Dollar Congress: this marked the first time congress was able to access 1 billion dollar funds. This increased federal spending and improved America internally at the expenditure of financial irresponsibility. 

Sherman Silver Purchase (1890): Requires the government to purchase silver in order to back up the paper production. Though this had good means it partially led to the Panic of 1893.

Homestead Strike (1892): This was at Carnegie Steel Company in which a confrontation occurred between workers and the hired Pinkerton security guards. This was due to abuse against the workers.

Grover Cleveland

Panic of 1893 Response: The government repealed the Sherman Silver Purchase Act which eventually accused the closing of silver mines due to the little financial gains of their production. This was then saved by J.P. Morgan 

Pullman Strike (1894): this was a widespread strike done by railroad workers in response to layoffs. Though this was diminished by the federal government due to the maintenance of national transportation and commerce it. 

E.C. Knight Co. vs. U.S. (1895): This limited the federal government's ability to regulate interstate commerce. This put the monopolies out of reach from the Sherman Antitrust Act. This preserved the power the federal government had over big businesses. 

Panic of 1893: This was a huge panic caused by businesses and banks being unable to open due to the lack of cash. This caused massive unemployment and many compare this to the Great Depression. Wilson-Gorman Tariff (1894):  This cut tariffs on imports and exports.

William McKinley

Gold standard act: 

• Gold is the sole standard for getting money which gets rid of other mediums like silver 

• It stabilized the economy by reducing inflation and creating a common currency amongst the global community 

The Dingley Tariff: 

• Raised tariffs to extremely high levels to protect America from foreign competition but in return this hurt the South due to the high tariffs yet helped the north. This created a deeper divide between the North and the South since it benefited the north and hurt the south. 

Elected twice: 

• He got reelected since he was very popular due to the economic growth 

Erdman Act: 

• Provides legal basis for labor disputes between employers and employees 

• This helped labor conflicts end peacefully rather than the riots that breaking outs 

Plessy v. Ferguson 

• Court upholds separate but equal 

• Occurred during his presidency and systemic racism was revamped during this time 

Anti-Lynching reform: 

• Nothing was done for anti-lynching legislation 

• Showed lack of progression in civil rights 

Weakened Civil Service Reform: 

• Trying to promote merit-based hiring in gov jobs 

• Reduced the skill levels of workers and created more jobs 

Sherman Anti- Trust Act: 

• It did not do what it was set out to do, it did not curb monopolies 

• It tried to prohibit unfair monopolies and promote competition among business

William Jennings Bryan 

Election of 1896 Campaign

• Democratic populist advocating for farmers and those who work in hard labor 

• Opposed mckinley 

• Promoted free silver as a solution to economic struggles 

• Lost the election 

Bimetallism

• Thought gold and silver could be used as currency 

• It would expand inflation helping farmers

• Opposed industrialists with which gold standard helped

Cross of Gold 

• At the democratic national convention 

• “You shall not crucify mankind upon a cross of gold”

  • Opposed the gold standard 

  • Leaned into the benefits of common man < was his whole campaign idea

  • Got his nomination as the democratic presidential candidate

populists

✅ Free coinage of silver (16:1 ratio) → Inflation to help debtors
✅ Graduated income tax (wealthy pay more)
✅ Government control of railroads & telegraphs to limit corporate power
✅ Direct election of U.S. senators (instead of state legislatures)
✅ Secret ballot and initiative/referendum (more direct democracy)
✅ 8-hour workday and better conditions for industrial laborers