Gilded Age and West

In the Gilded Age, Presidents tended to side with

"Big Business" and not the consumer or worker.

Patronage

"to the victor goes the spoils" -The practice or custom observed by a political official of filling government positions with qualified employees of his or her own choosing.

"Looking Backward"

*Edward Bellamy* wrote a Utopian novel called Looking Backward 2000-1887, in which he gave a *socialist look at the future.*He showed how government reform movements would one day save the world from the evils of the trusts by adopting socialist principles.

Bessemer Process

*Henry Bessemer's Process* found a way to eliminate the impurities in pig iron so it could be mass-produced quicker

Pull factors

-American's ideals (political freedom, religious freedom) -Stories from previous generations -Economic opportunity (jobs created by Industrial Revolution)

Panic of 1873 effect on Blacks

-Blacks were hit especially hard. Always last-to-be-hired, and now the Freedman's Savings and Trust Co. went bankrupt, black Americans lost some $7 million in savings. *Farmers and debtors hit hard by this*.

National Labor Union (1866)

-First attempt to organize workers in all states -Demand for higher wages and an eight hour work day.

Depression, Deflation, and Inflation Panic of 1873 further distracts the nation for enforcing Reconstruction

-It was started by over-spending with borrowed money, this time in railroads and factories. Growth was too fast and over-extended what the market could sustain. The causes of the panic were the same old ones that'd caused recessions every 20 years that century: (1) over-speculation by bankers-they gave too much money that could not be paid back (or over-spending) and (2) too-easy credit given by the banks. -Initially, the panic was sparked when banks and businesses began to go bankrupt. The situation quickly snowballed from there.

The Bosses of the Senate

-industries control the government - warn about the corruption of government -fat=wealth - it reflected the phenomenal growth of American industry in the 1880s but also the disturbing trend toward concentration of industry to the point of monopoly and its undue influence on politics

Sherman Ani-Trust Act 1890

1) Named for legislator John Sherman, this act attempted to *break up monopolies and trusts* that exploited consumers 2) The following is a very common quote: "Any contract or combination in restraint of trade is illegal." If you hear "restraint of trade" Sherman is your man. 3) The act did not define "restraint of trade" well, and the law was mostly used at first to break up unions. Government is monitoring business. Ironically it is used against labor unions to break them up during this time.

Why was the Haymarket Affair a landmark event?

1) Unions were blamed and ultimately associated with *socialism and anarchy*( anti-establishment) 2) Since many union members were immigrants, there was an increase in nativism, or animosity towards foreigners (nativism explained in-dept later) 3) There was a sharp decrease in unionization

What Gilded Age inventions do I need to know about?

1) lightbulb 2) Bessemer Process 3)Transcontinental Railroad 4) Brooklyn Bridge

What were the scandals during President Ulysses S. Grant's Administration?

1. Credit Mobilier 2. The Salary Grab 3. The Whiskey Ring

What were the two great waves of immmigration

1840-1860 and 1890-1920

Railroad Strike of 1877

1877 was the end of Reconstruction, and the beginning of the "Labor Question." the Railroad Strike, or "Great Upheaval" occurred because of a *cut to wages* after the Panic of 1873. The 4 largest railroads got together and decides to cut employee wages by 10%. The workers fought back by going on strike. Sympathy strikes (strikes in nearby areas sympathetic to the cause) spread throughout the country from West Virginia to Illinois. This strike crippled the nation. *President Hayes* broke up this strike with *federal troops* because it was disrupting interstate commerce and the violence was getting out of hand. The trouble went on for several weeks but eventually ended with the workers losing on the losing side. This failed strike showed the weaknesses of the movement at the time.

McKinley Tariff

1890 bill calling for the highest peacetime tariff yet: 48.4 percent. It gave a bounty of two cents a pound to American sugar producers, and raised tariffs on agricultural products. The duties on manufactured goods hurt farmers financially.

radio

1895 Guglielmo Marconi invents the first radio. Revolutionizes communications

Scandal is exposed

A newspaper finally exposed the scandal, two Congressmen went down, & the Vice Pres. of the U.S. had even taken payments. Though uninvolved, Grant's name was scarred.

Half-Breeds

Advocated *civil service reform* (John Blaine). They vote fir Cleveland

Pendelton Act 1883: height of political reform.

After President James Garfield was assassinated by an unhappy office-seeker-did not get office (*Charles J Guiteau*), vise president *Chester Arthur-republican (a Stalwart) became president*. Despite being considered a partisan politician, Arthur was reform-minded. He largely stood form against his Stalwart buddies in their quest for the riches that come with power. This act attempted to rid the country of the spoils system(patronage system where a candidate appoints supporters to offices.) The act provided for a *civil service test* to be taken by all government office-seekers It required merit to get jobs, not simply knowing someone in a high position.

Telephone

Alexander Graham Bell's *telephone* would revolutionize communications in the coming centuries.

Robber Barons

Although many considered them "*captains of industry*" who were leaders that were beneficial to the country, the term robber baron was often used to describe industrialists who *controlled monopolies, or trusts*, during the Gilded Age. They included Andrew Carnegie (steel), Cornelius Vanderbilt (railroads), John D. Rockefeller (oil), and J.P Morgan(finance/bank)

Yellow dog contracts

Another obstacles for labor at this time was yellow dog contracts, which prevented workers from joining a union if they were to work at a certain job.

Munn v. Illinois

Before the ICC, farmers pressured Illinois to create legislation to prevent inflated prices for hauling crops on railroads. In the 1877 case Munn v. Illinois, the Supreme Court *protected the state government's ability to regulate the prices of private industries*. The state could regulate business. However in the Munn V Illinois, those Granger laws, are overturned in Wabash Case.

The Liberal Republican Revolt of 1872

By the 1872 election, many people had had enough. Reformers started the *Liberal Republican Party to clean things up.* The Liberal Republicans nominated *Horace Greeley*, editor of the New York Tribune, as their candidate. Strangely, the Democrats also endorsed Greeley since they were so eager to gain office. Greeley had lambasted the Democrats through his paper, but he was *soft on allowing the South to return to the nation, which the Democrats liked*. The campaigning was nasty, but colorful. Greeley was called an *atheist*, communist, free-lover, vegetarian, brown-bread eater, and co-signor of Jefferson Davis' bail bond. Grant was called a drunk ignoramus and swindler. Grant won the election handily, 286 to 66.

Horizontal integration

Carnegie also looked to *buy out similar companies, or merge with them*. This is called horizontal integration Controlling all competition in a particular industry. Merging competing companies into *one giant corporation*. Rockefeller did this . You want to consolidate all competitors so you have *no competition so you can monopolize the market*.

Hangman of Buffalo

Cleveland was known as teh hangman of Buffalo since he was elected twice in two terms.

Gilded Age

Coined by Mark Twain, it refers to the time period between about 1876-1900. Gilded means gold on the outside, junk on the inside. Things looked good on the outside in terms of *industry and invention*, but in truth, the *common people were suffering.*

Government intervention

Demands that the government should interfere. Farmers call for reforms seen in Grange Movement- organization of farmers demanding change. They get some regulation ..

Chart of Election of 1884

Democrats---Half Breeds---Stalwarts(Old Guard)

Chinese Exclusion Act in 1882

Finally, Congress passed the *Chinese Exclusion Act* in 1882. It forbade the immigration of Chinese to America. This was the first immigration restriction America passed; until this point in history, immigrants simply came to America without hindrance. 1st time immigration restrictions are on the basis of race and nationality.

1840-1860 "Old Immigrants"

First Great Wave. They were mostly from Northern and Western European countries---Ireland, England, and the German States. Tended to be Protestant. Literate and Skilled. Quick to assimilate. Came from democracy . Middle class-rich. Castle Garden

Garfield's Assassination

Garfield was assassinated by Charles J. Guiteau in September of 1881. Infection from wound-trying to get out bullet. Guiteau said he was a Stalwart, like V.P. Chester Arthur, and his lawyers essentially used the insanity defense saying he didn't know right from wrong. Regardless, he was found guilty and hanged.

Election of 1876

Grant is gone, Republicans turn to Rutherford B Hayes and he is running against Democrat Samuel B Tilden. Important because there is a political controversy. Results in three Southern States were contested. Compromise of 1877. Hayes President he is going to pull out the last federal troops from south and end Reconstruction. Federal aid for the Transcontinental railroad for the South.

Grant vetoed a bill to print more money

Grant vetoed a bill to print more money. Also, the *Resumption Act* was passed to actually start to (1) lower the number of greenbacks in circulation and (2) to redeem paper money at face value starting in 1879.

Homestead Strike 1892

Henry Clay Frick uses a lockout, private guards(Pinkertons) and scabs to defeat steelworkers at Carnegie's factory. This was yet another defeat for unions. Andrew Carnegie's steel plant in Homestead, Pennsylvania began to unionize. Carnegie *fought unionization*, and violence occurred between strikers and Pinkerton(private) detectives. Strikers were later arrested and tried for treason.

Dime Novels

Horatio Alger was known for writing *dime novels* about some of these men, like Carnegie, who went from"Rags to Riches" during the Gilded Age. They were cheaply bound and widely circulated novels that became popular after the Civil War depicting such scenarios from the "Wild West" and other American tales.

Promontory Summit

In 1869, the *Golden Spike was hammered* at Promontory Summit, Utah. This completed the Transcontinental Railroad. Railroads were given a lot of land from the federal government, as the United States had a vested interest linking the country together.A railroad line across the nation would encourage transportation, settlement, and trade.

Brooklyn Bridge

In 1883, the Brooklyn Bridge opened in New York City. The *largest steel suspension* bridge of its time connected Brooklyn Manhattan

Haymarket Affair 1886

In Chicago, a bomb went off in Haymarket Square during a rally near the McCormick Harvesting Machine Company. Police fired weapons in response. Both cops and civilians were killed. Although it was the work of radical anarchist a bunch of people are arrested.

The "Bloody Shirt" Elects Grant 1868

In the 1868 presidential election, the *Republicans offered General Ulysses S. Grant*. Although he had no political experience, the idea was that his war-hero status would carry him to victory. -The Democratic party was hopelessly disorganized. They agreed on their criticism of military Reconstruction, but little else. The *Democrats* nominated *Horatio Seymour*. Seymour's popularity took a hit when he said he did not support redeeming greenback money at full value. Consequently, *Grant won* the presidency for the Republican party, narrowly. His main technique was to "wave the bloody shirt," meaning to constantly remind voters of his *military record* and that he'd led the North to victory.

What was the Pendleton Act called?

It was called the "Magna Carta of civil service reform" It prevents you from giving office to someone who is not qualified--it goes against the spoils systme.

KUPS

Knights/ unskilled/ powderly/ strike more...(unskilled spellers can't sleep cups"

Difference between AFL and Knights of Labor

One of the main differences between the Knights of Labor and the American Federation of Labor is that the former one was more radical. 2. The AFL was a formal federation of labor unions whereas Knights of Labor was much more a secretive type. 3. The formation of Knights of Labor can be traced to the Noble Order of the Knights of Labor, a secret union formed in 1869 by Uriah Smith Stephens and James L. Wright. 4. The AFL was launched in Columbus, Ohio in 1886. Socialists like Peter J. McGuire and Gompers were behind the formation of the AFL.

What did bankers and the wealthy favor?

Opponents, usually bankers and the *wealthy, favored hard money policies*. That is, they favored keeping the amount of money stable (and backed by gold). To hike inflation just to pay debt was unfair, they said, since the money paid back wouldn't be as valuable as when it was lent.

Social Darwinism

Playing off Charles Darwin's Theory of Evolution, this was a belief in "survival of the fittest" in the business world. This notion was a *defense of monopolies*. Note: These same Darwinian principles would be applied decades later during the Age of Imperialism when the United states took over foreign territories. *Herbert Spencer* took Darwin's idea and applied it to business. Wealthy were fit, hardworking. The poor were the weak in society and should not be helped and we should advocate for laissez fair

What do political machines control?

Political machines *control politics* in major cities. Political bosses controlled the rank and file of the party and rewarded supporters with jobs. If you vote for the political boss, for the political machine, if you are loyal politically hey are going to hook you up with position in the government. It is so effective because they provide basic welfare type services which were not offered by the government at the type to the poor and immigrant communities. Large amount of Fraud.

A carnival of Corruption: Grant

President Grant was an honest man but there was much corruption underneath his administration. He either wasn't aware of it or failed to properly deal with it. Many in the Dent family, his in-laws, obtained government "jobs" for themselves.

Pullman Strike

Pullman cars were luxury railroad cars. When wages went down at the factory, the workers went on strike. Eugene V. Debs, a *socialist*, instructed railroad workers to halt trains with Pullman cars on them. Much violence and property damage accompanied the strike. President Grover Cleveland said thta the strike actions disputed federal mail.He got a court order (injunction) to end the strike, and Debs went to prison This was another example of the President sliding with employers

Benjamin Harrison

Republicans regain the White House with grandson of former president . Advocates for keeping the Tariff high. "billion dollar congress" Mckinley tariff.

Sherman Silver Act

Required that the US buy nearly twice as much silver as before the act was passed. Added substantially to the amount of money already in circulation. Threatened to undermine the Treasury's Gold reserves.

Do-Nothing Presidents

Rutherford B Hayes, James A Garfield, Chester A Arthur, Grover Cleveland, Benjamin Harrison, William McKinley

Scabs

Scabs replacement workers were brought in when workers went on strike.

1890-1920 "New Immigrants"

Second Great Wave. They were mostly from Southern and Eastern Europe. Italy,Russia, Poland and Greece. The majority are not Protestant. A huge amount of Catholics, Greek Orthodox and Jews coming over. largely illiterate and unskilled. Reluctant to assimilate. Came from area with history of radical idea..communism anarchism and socialism . Arrived largely poor. Seen as "foreign"

Push factors

Southern and Eastern immigration -farm jobs were lost to mechanization-loss of land -poverty and extremely difficult lives -political instability Russia-lack of political freedom and religious persecutions. Pogroms: violence against Jews in Russia and other parts of Eastern Europe.

Molly Maguires

The "Mollies" were Irish American coal miners in Pennsylvania who belonged to a secret society and were labeled as *anarchists* who opposed the established government, and sought labor rights in the mines. In the 1870s, Mollies were charged with a number of crimes.with some questionable evidence several were executed.

Garfield and Arthur

The 1880 election pitted Garfield against Scott. Republicans nominated James Garfield &, his running mate, Stalwart Chester Arthur. Garfield was a "dark horse" candidate (a previously unknown person) but he came from the critical state of Ohio. The Democrats nominated Gen. Winfield Scott, the Civil War hero. Garfield won the election, but found himself trapped in the middle of the Republican feud between the Stalwarts and Half-Breeds. Garfield's Secretary of State James Blaine (Half-Breed leader) battled his arch-enemy, Stalwart Roscoe Conkling (Stalwart leader) at every chance.

Election of 1884

The Election of 1884 was between Republican nominee, Grover Cleveland and Democratic nominee James G Blaine. Grover Cleveland won, however, was accused of fathering an illegitimate son. this lead to the ditty made by the Republicans ," ma ma, where is my papa?" to which the Democrats replied "off to teh white house, ha ha ha" End of Greenback party. General Butler-confiscation act.

Green Back party

The Greenback party (also called the National Greenback party) was organized in 1876 to campaign for expansion of the supply of paper money—"greenbacks"—first issued by the federal government in 1862 to help pay for the Civil War. The idea that maintaining a flexible supply of paper money served the interests of working people, whereas paper money backed by specie (hard money, like gold or silver) benefited only the rich, had been advanced by Edward Kellogg as early as 1841.

IWW

The Industrial Workers of the World (*Wobblies*) were founded a bit after the Gilded Age in 1905. At times, they were led by a vocal socialist, *Eugeen V. Debs*. They were the most radical of all unions, and largely comprised of new immigrants.

Knights of Labor

The Knights of Labor was founded in 1869 as an industrial union led by *Terence Powderly*. With over 700,000 members by 1886, the union fought for an end to child labor, an 8-hour work day, and equal pay for equal work. They also allowed *African Americans and women* to join. The Knights were quite often involved in *strikes*. (though Powderly was against excess striking). A strike is a refusal to work. Open to skilled and unskilled. They are going to decline after the Haymarket Riot in 1886.

Passing reforms

The Liberal Republicans did spook the Republican Congress into passing some reforms. (1) An *amnesty act* was passed which removed restrictions that'd been placed on many Southerners. Also, (2) there was effort to *reduce the tariff rates* and (3) to *clean up/out the Grant administration*.

Thomas Nast

The New York Times eventually exposed Tweed with the help of cartoonist Thomas Nast.(Nast relentlessly attacked Tweed's corruption). Tweed despised Nast because although many people in Tweed's district could not read about the corruption, they could understand those "*damn pictures*." Nast's cartoons brought down Tweed. Samuel J. Tilden gained game in prosecuting Tweed. Tweed eventually died in jail. Tilden would ride the fame to become the nominee for president in 1876 vs. Rutherford B Hayes.

William Belknap

The Secretary of war William Belknap was caught swindling $24,000 by selling trinkets to the Indians.

Interstate Commerce Act (ICC) 1887

The act created the Interstate Commerce Committee(Commission) that looked to ensure that railroad shipping fees were "*reasonable and just*." (they aimed to control Railroad Company abuses.) They also made sure that rates were *published* so price discrimination did not happen. Of course, in the Gilded Age, nothing was what it seemed. The Gilded Age Presidents appointed *pro-Radical ICC commissioners*, so little help to the consumer occurred. Federal government would oversee business. They would ban pooling, rebates, and rate fixing.

Ethnic Clashes were common

The clashes came when the *Chinese* competed for low-paying jobs, usually with the *Irish*. Most Chinese were young, poor men who'd emigrated to California. They frequently got jobs building the railroads. After the railroad boom, many returned to China, many stayed and looked for odd jobs. Irishman Denis Kearney fired up the Irish against the Chinese in San Francisco. The argument was that the "rice eater" (Chinese) could afford to work for a cheaper wage than the "beef eater" (Irish). The solution was for Irish gangs to take to the streets and deal their vengeance on the Chinese.

Wabash case

The impact of this decision was greatly reduced by the 1886 Wabash Case (Wabash, St.Louis and Pacific Railway Company v Illinois). Hence a Federal ICC was needed to address the controversial issue of railroad pricing. Court ruled that states could not regulate interstate commerce- trade between different states. The public begins to demand that the government does something to overhaul the capitalist system during the Guided Age.

incandescent light bulb

The incandescent light bulb by *Thomas Edison* stayed on longer than earlier light bulbs

Labor Unions

The labor movement is going to challenge this pro-business climate. They are going to confront corporate power. Challenges during this time: divisions between skilled and unskilled workers. Ethnic and racial divisions(often unions were anti-Chinese immigrants).. No protection by the government.

Panic of 1873 on debtors

The tough times hit debtors hard. They wanted inflationary policies to be pursued. Specifically, *debtors wanted paper money* ("greenbacks") printed to *create inflation* and thus make it easier to pay off debts. This strategy was called soft money or cheap money policies.

Impact of the inventions

These inventions and innovations will change daily lives, create new jobs, and have social consequences. Women enter into the workforce.

Mugwumps

These were Republicans who voted for *Democratic Grover Cleveland* instead of Republican James Blaine in the Election of 1884(Cleveland won). In the 1880s, the Republicans were divided, as the Stalwarts, or old Guard, were more conservative than the Half-Breeds, who favored civil service reform.

Union Pacific Company

They are going to build from Omaha,Nebraska to the West. Made largely of Irish workers, former civil war veterans

Central Pacific Company

They are going to build from Sacramento through the difficult terrain of the Sierra Nevada's. Huge reliance on Chinese laborers

Gospel of Wealth

This was Carnegie's decree that the super-rich should be *charitable* and give back to society for the common good. However, a fortune should not be squandered,and must be *donated to those wise* enough to spend it properly.

Vertical integration

To control most of the steel industry, Carnegie bought out the *raw materials and railroad lines* associated with production. This is called vertical integration. Vertical integration is when someone controls all *aspects of manufacturing* from extracting raw materials to selling finished items. Eliminate middle man-control all stages of production.

Trusts

Trusts formed when one company took over the stock of competing companies in "trust" agreements. This often led to monopolies, where one huge corporation controlled almost the entire market.. *Competition fizzled and prices were often manipulated.*

The building of the railroad was done by two groups...

Union Pacific

Lock-outs

Unions sometimes had to deal with lockouts where employers did not allow workers to enter their job until agreements were made.

Boss Tweed- local political corruption

William M Tweed was the head of *Tammany Hall*, a political machine in New York City where people "*voted early and often*" to support the Democratic Party. Tweed's Ring basically ran New York City, as members of the *Democratic Party controlled all powerful offices there*. Tammany Hall also helped immigrants find jobs, in exchange for votes of course. New York was an oasis of municipal(*city*) corruption as bribery and kickbacks were common. He steals money from tax payers. Tweed used bribes, graft, and rigged elections to mooch money and ensure continual power for himself and his buddies.

BAGS

bread butter issues/AFL/Gompers/Skilled

Inflation issue

farmers want inflation -silver is worth less, so it inflates more -inflation helps teh poor--> it used to help the rich democrats--> agricultural--> want low tariff 1890 Republicans support Sherman Silver Act and Democrats support McKinley Tariff as a Compromise

Issue on inflation

farmers want inflation silver is worth less so it inflates more -inflation helps the poor, it used to help the rich. Democrats--> agricultural- want low tariffs 1890 Republicans support Sherman Silver Act and democrats support McKinley Tariff as a Compromise.

Age of railroad

first big business. Huge increase of railroad productions after the Civil War. It is the result of land and loan subsidies given by the federal government to the railroad companies. Government is pro-businees and pro railroad. The Government do this because they hope that this will increase the value of federal land in the west and they hope that they will get preferred rates for the caring of federal land or to transport troops out in teh west. The railroad companies establish consolidation. Fewer railroad companies are controlling the rail road company.

Blacklist

if someone's name was blacklisted, they would not be able to find work because no one would hire them.

Impact of railroad

it is going to unify the domestic market, create a national market for goods. It allows for the mass distribution of raw materials and manufactured goods from coast to coast. It is going to encourage mass production, mass consumption and economic specialization( different parts of the country are going to be specializing on certain products). It is going to help promote growth of other industries(coal, steal) and lead to the growth of new cities. it is going to facilitate immigration. Also is going to change the lives of Americans. American Railroad Association divided the country into 4 time zones in 1883 for greater efficiency.

Public Outcry

public outcry for growing corporate power.

Grover Cleveland

strong advocate for laissez faire: "though the people support the government...the government should not support the people." Signed into law Interstate Commerce Act

Stalwarts

supporters of *patronage* (Roscoe Cockling) far right. favored machine politics Old guard More conservative

AFL 1886

the American Federation of Labor was founded as a *craft union*. A craft union has people of a similar craft, or job, in the same union. Their early leader was *Samuel Gompers*. Unlike the Knights of Labor, Gompers would strike only when necessary. He favored "bread and butter" issues, like an 8 hour day, and higher wages. Rather than social issues like Knights of Labor. AFl promoted *collective bargaining* where employees met with employers to compromise and discuss differences of opinion and contracts. Skilled. By 1900 they will be the largest labor union but will have limited success in the beginning.

Impact of Interstate Commerce Act.

the first large scale attempt by the federal government to regulate business in the interest of society at large. The government is watching and monitoring business.

Why did Grant win the election 1868

there was a social movement-black voters vote for Republican candidates The close victory signaled a couple of things for the future: (a) tightly run and hard-fighting political parties and (b) narrow election margins of victory.

Transcontinental Railroad was established because of the Pacific Railroad Act

they allowed for the route to be established and the federal government is going to help in this process.

Court injunction

used to force workers back into the factory

The Whiskey Ring 1873

was a scandal in which federal whiskey taxes wound up in the pockets of *distillers and politicians*. Folks stole whiskey tax money from the government. Grant's own secretary was involved and, despite him saying, "Let no guilty man escape," Grant helped let the thief off the hook. Grant's Private Secretary was accused of wrongdoings

Credit Mobilier 1872: one of the worst scandals

was a scandal where the railroad companies and construction suppliers were *owned by the same people*. The supplier, Credit Mobilier, was charging inflated prices for construction materials. The company effectively sub-hired itself to get *paid double*.The government-backed Union Pacific happily paid these prices. Of course, with inflated prices came bribes and kickbacks to the Congressmen involved. They gave stick to Congressmen in order to avoid getting busted.

The Salary Grab 1873

when Congress voted itself a *50% pay increase*.Other salary increases were in the same bill. Grant signed this just before his second inauguration

All these strikes show how

workers respond to this changing economy and how business leaders justify their wealth.