Chapter 20Chapter 20POLITICAL POLITICAL

REALIGNMENTSREALIGNMENTSIN THE 1890sIN THE 1890s

Horatio AlgerHoratio Alger

Author who wrote “rags to riches” stories Author who wrote “rags to riches” stories in the Gilded Agein the Gilded Age

State RegulationState Regulation

Munn v. IllinoisMunn v. Illinois (1877) upheld (1877) upheld constitutionality of state regulations of RRsconstitutionality of state regulations of RRs

Interstate Commerce Act designed to Interstate Commerce Act designed to regulate the RR industryregulate the RR industry– RRs rates regulatedRRs rates regulated– created Interstate Commerce Commission created Interstate Commerce Commission

(ICC)(ICC)– first federal law to regulate private industry in first federal law to regulate private industry in

the USthe US

The Election of 1880The Election of 1880

President GarfieldPresident Garfield

Assassination of GarfieldAssassination of Garfield

The Election of 1884The Election of 1884

President ClevelandPresident Cleveland

President Benjamin HarrisonPresident Benjamin Harrison

““Crime of 73”Crime of 73”

The The Fourth Coinage ActFourth Coinage Act (1873) (1873) embraced the gold standard, demonetized embraced the gold standard, demonetized silversilver

Western mining interests and others who Western mining interests and others who wanted silver in circulation labeled this the wanted silver in circulation labeled this the ""Crime of '73Crime of '73””

Gold became only metallic standard in the Gold became only metallic standard in the United StatesUnited States

Bland-Allison Act (1878)Bland-Allison Act (1878)

Required U.S. Treasury to buy a certain Required U.S. Treasury to buy a certain amount of silver and put it into circulation amount of silver and put it into circulation as silver dollars as silver dollars

Tariffs, Trusts and SilverTariffs, Trusts and Silver 1890: Sherman Anti-Trust Act regulated big 1890: Sherman Anti-Trust Act regulated big

businessbusiness 1890: Sherman Silver Purchase Act moved 1890: Sherman Silver Purchase Act moved

country toward bi-metallic monetary systemcountry toward bi-metallic monetary system– Gold + silverGold + silver

Rise of the Populist Movement Rise of the Populist Movement (People’s Party)(People’s Party)

Discontented farmers of West and South Discontented farmers of West and South provided base of support provided base of support

The National Farmers' Alliance resultedThe National Farmers' Alliance resulted

Selected Commodity PricesSelected Commodity Prices

The Farmers' Alliance: Ocala The Farmers' Alliance: Ocala DemandsDemands

System of government warehouses to System of government warehouses to hold crops for higher priceshold crops for higher prices

Free coinage of silverFree coinage of silver Low tariffsLow tariffs Federal income taxFederal income tax Direct election of Senators Direct election of Senators Regulation of RRsRegulation of RRs

The Panic of 1893The Panic of 1893

February, 1893: Failure of major railroad February, 1893: Failure of major railroad sparked panic on New York Stock sparked panic on New York Stock ExchangeExchange

Investors sold stock to purchase goldInvestors sold stock to purchase gold Depleted Treasury shook confidence Depleted Treasury shook confidence May, 1893: Market hit record low, May, 1893: Market hit record low,

business failures displaced 2 million business failures displaced 2 million workersworkers

1894: Corn crop failed1894: Corn crop failed

Coxey's ArmyCoxey's Army

1894: Jacob Coxey led “Coxey’s Army” to 1894: Jacob Coxey led “Coxey’s Army” to Washington to demand relief for Washington to demand relief for unemployed workersunemployed workers

A Beleaguered PresidentA Beleaguered President

Cleveland repealed Sherman Silver Cleveland repealed Sherman Silver Purchase Act to remedy Panic of 1893Purchase Act to remedy Panic of 1893– failed to stop depressionfailed to stop depression– made silver a political issuemade silver a political issue

The Presidential Election of The Presidential Election of 18961896

Free coinage of silver the main issueFree coinage of silver the main issue– Boost money supplyBoost money supply– Seen as solution to depressionSeen as solution to depression

New voting patterns emerged and national New voting patterns emerged and national policy shiftedpolicy shifted

William Jennings Bryan William Jennings Bryan (Democratic/Populist)(Democratic/Populist)– Free silver promised in "Cross of Gold" Free silver promised in "Cross of Gold"

speechspeech

The McKinley AdministrationThe McKinley Administration

McKinley took office at depression’s endMcKinley took office at depression’s end An activist presidentAn activist president 1900: U.S. placed on gold standard1900: U.S. placed on gold standard 1900: McKinley won landslide reelection 1900: McKinley won landslide reelection

against William Jennings Bryanagainst William Jennings Bryan

The Election of 1900The Election of 1900

A Decade’s Dramatic ChangesA Decade’s Dramatic Changes

September, 1901: McKinley assassinatedSeptember, 1901: McKinley assassinated Theodore Roosevelt became presidentTheodore Roosevelt became president