AMSCO AP US History Textbook

Role of Government in the Gilded Age

Government Support for Railroads

  • Completed railroads increased government land values and provided mail and troop transportation rates.

  • Land grants and cash loans led to corruption, hasty construction, and formation of companies like Crédit Mobilier that bribed officials.

  • Protests in the 1880s arose as railroads controlled significant land in western states.

Interstate Commerce Act (1887)

  • Previous state laws to regulate railroad rates faced legal issues.

  • Supreme Court ruled in Wabash v. Illinois (1886) against state regulation of interstate commerce.

  • Congress passed the Interstate Commerce Act to require reasonable railroad rates and established the Interstate Commerce Commission (ICC).

  • Initially, ICC actions favored railroads over farmers.

Antitrust Movement

  • Corporate trusts, like the Standard Oil Trust, faced public scrutiny in the 1880s.

  • Sherman Antitrust Act (1890) aimed to prohibit monopolistic practices; vague language limited effectiveness.

  • Supreme Court ruled Sherman Antitrust Act only applied to commerce, not manufacturing.

Foreign Policy and Economy

  • Government policy promoted economic changes, including the acquisition of Alaska and Hawaii for trade expansion with Asia.

  • Involvement in Latin America increased.

Political Issues

  • During the 1870s and 1880s, Congress focused on civil service, currency, and tariffs, leaving states to manage urban problems.

Civil Service Reform

  • Garfield's assassination led to Congress removing some government jobs from political patronage.

  • Pendleton Act (1881) established the Civil Service Commission and competitive job examinations, initially impacting 10% of federal roles.

The Money Question

  • Debate on expanding the money supply polarized creditors and debtors.

  • Debtors favored "soft" money; creditors supported the gold standard to ensure currency value.

  • Greenback Party emerged supporting unbacked paper money.

Tariff Issues

  • High tariffs established during the Civil War faced opposition as they raised consumer prices and led to retaliatory tariffs hurting farmers.

  • Farmers argued that industry profited at their expense.

Gilded Age Politics

Political Complacency

  • Period characterized by weak leadership and avoidance of controversial issues by both major parties due to electoral closeness.

Party Structure

  • Republicans capitalized on Civil War memories; Democrats held power in the South.

  • Main focus for both parties was on patronage rather than policy.

Rise of the Populists

  • Populism arose due to agrarian discontent; Farmers' Alliances laid the foundation for the Populist Party.

  • Omaha Platform called for reforms like direct election of senators and economic reforms.

1896 Election and Aftermath

  • Election pitted McKinley against Bryan, showcasing divided sentiments over currency and economic policies.

  • McKinley's victory initiated a period of Republican dominance and marked shifts in political power dynamics.

Economy and Society (1893-1900)

Impact of the Panic of 1893

  • A severe economic depression began that significantly impacted employment and agriculture.

  • Strikes, like the Pullman strike, were met with federal intervention, symbolizing rising tensions between labor and government.

Key Developments

  • Wilson-Gorman Tariff (1894) included an income tax that was later deemed unconstitutional.

  • Rising labor discontent and economic inequality paved the way for future reforms in the Progressive Era.