Role of Government in the Economyfederal land grants and loans Interstate Commerce Act (1886) Sherman Anti-Trust Act (1890) Homestead Act “hard money” vs. “soft money” ; bimetallism tariff policy “Billion Dollar Congress” government regulation Republican

federal land grants and loans

The federal government provided land and loans to the railroad companies in order to encourage expansion of the railroads. (p. 320)

Interstate Commerce Act (1886)

Established the ICC (Interstate Commerce Commission) - monitors the business operation of carriers transporting goods and people between states - created to regulate railroad prices

Sherman Anti-Trust Act (1890)

A law that was intended to prevent the creation of monopolies by making it illegal to establish trusts that interfered with free trade.

-> also applied to unions b/c of vague language (applies to anything that stops trade)

Homestead Act

1862 - Provided free land in the West to anyone willing to settle there and develop it. Encouraged westward migration.

"hard money" vs. "soft money" ; bimetallism

"Hard money" refers to currency backed by physical commodities (gold/silver) or, in politics, tightly regulated donations directly to candidates. "Soft money" refers to unregulated, party-building political donations or, in finance, loans based on borrower credit rather than collateral. Bimetallism is a monetary standard using both gold and silver as legal tender (using two metals to increase money supply)

tariff policy

governments raise money by levying tariffs or taxes on imported goods. generally, northerners favored the tariff because it helped protect them from foreign competition, but southerners opposed the tariff because they were more dependent on foreign trade

"Billion Dollar Congress"

The "Billion Dollar Congress" refers to the 51st United States Congress (1889-1891), which, for the first time in American history, passed legislation resulting in a federal budget exceeding $1 billion, largely due to high spending on Civil War pensions and naval expansion, and was championed by Speaker Thomas Reed to support a rapidly expanding national economy.

government regulation

A law that controls the way that a business can operate, or all of these laws considered together: Voters want some government regulation to prevent these financial disasters from happening

Republican dominance

During the Gilded Age (roughly 1877-1900), the Republican Party dominated national politics, holding the presidency for most of the era by promoting industrial growth, high tariffs, and the gold standard. Supported by Northern Protestants, veterans, and African Americans, they utilized "waving the bloody shirt" tactics to retain power.

Silver Purchase Act

The Sherman Silver Purchase Act of 1890 was a federal law that required the U.S. government to purchase 4.5 million ounces of silver monthly, boosting prices for miners and increasing the money supply for farmers. It was repealed in 1893 after it caused a drain on gold reserves, triggering a severe economic panic and highlighting deep divisions over bimetallism.