THE GILDED AGE

*Corruption grew expectantly in the years following the Civil War.

Overview

• The period from 1870-1901 was known as the Gilded Age or the Victorian Era in America.

• The term "Gilded Age" was coined by Mark Twain, a humorist (similar to a modern comedian).

• Twain published a book in 1873 called The Gilded Age, in which he criticized the ostentatious lifestyles of young men in their twenties and thirties.

  • These men wore extravagant clothing and carried gold-plated walking sticks to impress others, though the gold was merely a thin coating over cheaper metal—a practice known as gilding.

  • Twain used this metaphor to mock the superficial wealth and corruption of the era.

Key Characteristics of the Gilded Age

• Distrust of the federal government

• Widespread conservatism (even among lower-income citizens)

• Corrupt politicians and close presidential elections

• Huge economic disparity between the wealthy and the poor

• Frequent recessions and depressions, leading to widespread unemployment

• Many historians, even at the time, openly criticized the era for its excess and corruption.

President Grover Cleveland

• Served as the 22nd and 24th President of the United States (the only president to serve two non-consecutive terms).

• Believed the president’s role was to block legislation rather than actively govern.

  • This approach was popular during his first term, but during his second term, it led to public dissatisfaction, especially when he refused to take action during a severe economic collapse.

Lord James Bright (British Historian's Perspective)

• Described the two major political parties as "two bottles with labels but both bottles were empty"—suggesting that neither party had real solutions and that the Gilded Age Era was a “empty” era.

Political Corruption and "Boss" Tweed

• "Boss" Tweed (William Marcy Tweed) controlled New York City without holding any public office.

  • Controlled city council and public office appointments.

  • Ran a corrupt political machine known as the "Tweed Ring".

  • Encouraged people submitting city bills to inflate costs, skimming profits for himself and his allies.

    • EX: The Bill for Maintaining Armors, The Bill for Maintain the Court House, The Bill for Carpeting in the Court House

      • Corruption escalated, with fraudulent markups increasing from 10% to as high as 85%.

• John T. Hoffman (Governor of New York) was a Tweed ally and was considered for a presidential run.

• Thomas Nash, a famous political cartoonist, helped expose Tweed’s corruption.

  • Tweed was enraged by Nast’s cartoons and attempted to bribe him with $1 million to stop and o go to Europe and study art

  • The New York Times was also offered $1 million to silence Nash and the newspaper—but both refused.

• Tweed was one of the few corrupt urban bosses who was actually jailed, unlike many who lived out their lives in comfort.

• Samuel Jones Tilden & Charles O’Conner were politicians that stood up against Tweed and the corruption

Republicans vs. Democrats

• Republicans:

  • Used the slogan "Waving the Bloody Shirt" to remind voters that Democrats had led the Confederacy.

• Democrats:

  • Blamed African Americans for corruption in former Confederate states.

  • Southern states rejoined the Union with enormous debt, partly due to establishing public school systems.

Planter Class (1% of the White Population)

• Maintained power by dividing poor blacks and poor whites.

• Opposed education and assistance for the poor to prevent them from challenging their authority.

Industrialization and Economic Policy

• Neither major political party had solutions for the economic challenges of industrialization.

• Instead, parties manipulated voter emotions to secure votes while avoiding real issues.

Laissez-Faire Economics & Social Darwinism

• Laissez-Faire: Minimal government intervention in business and the economy.

• Social Darwinism:

  • Applied Charles Darwin’s natural selection theory to human society.

  • Justified social inequality, imperialism, and eugenics.

  • Advocated that helping the poor (through charity or social programs) was harmful.

  • Taught as fact in major universities.

The Decline of Farming in the Gilded Age

• Before the Civil War, most Americans were farmers.

• After the war, farmers faced major financial struggles due to economic changes.

• Revolution in transportation (railways and steamships) led to global competition, reducing prices for staple crops.

• No protection from tariffs

• Farmers used to just pay a typical land which was a farm family paying a small down payment then making payments in which every year 1/5 of the outstanding balance was forgiven from the State Government or National Government

Impact on Staple Crop Farmers

• Farmers of cotton, wheat, rice, and corn were hit hardest.

• Lived primary in the South and Great Plains

• Relied on export sales, but increased competition from Australia and Russia drove prices down.

• 1870s-1890s: The value of the dollar increased, causing staple crop prices to crash:

  • Cotton: Dropped from 15.1 cents/lb. → 5.8 cents/lb.

  • Wheat: Dropped from 106.7 cents/bushel → 63.3 cents/bushel

  • Corn: Dropped from 43 cents/bushel → 29.7 cents/bushel

The Rise of Business Farming

• Farming became more corporatized, with large business-run farms replacing small family farms.

The Rise of the Farmers’ Movement

• The economic crisis led to the largest and most successful third-party movement in U.S. history.

• Increased mortgages and debt were signs of extreme distress among farmers.

The Crop-Lien System

• Farmers relied on credit from merchants, pledging future crops as collateral.

• Merchants controlled what farmers grew by only offering credit for certain crops (usually cotton).

• This system trapped farmers in debt and forced them into a cycle of poverty.

One-Crop Economy

• Farmers were forced to grow only one crop for commercial sale, rather than diverse farming for sustenance.

• This left them vulnerable to market fluctuations.

Other Economic Hardships

• Rising mortgages: Many farmers were forced to mortgage their land to survive.

• Unfair tax systems: Taxes disproportionately burdened farmers.

Peonage (Debt Slavery)

• Peonage: A system where workers were trapped in debt, making it impossible to leave their land.

• Debt increased every year, ensuring that families remained economically enslaved.

• Peonage was officially banned in 1911, but economic exploitation continued.

Conclusion

The Gilded Age was marked by economic inequality, political corruption, and industrial expansion.

• While businesses thrived, farmers and laborers struggled under unfair economic policies.

• Corruption in politics and laissez-faire policies led to exploitation of workers and severe financial distress in rural communities.

• The economic struggles of the period laid the foundation for future political and social movements, including the Progressive Era.