Re: Politics in the Gilded Age

Panic of 1873Financial crisis that triggered a depression, resulting

in deflation under Pres. Grant

Farmers + miners: wanted inflation → introduce silver to achieve that

- Conservatives, afraid of inflation, instituted deflationary policies (Bland-Allison Act of 1873) actually making the situation worse

Money Issue → Biggest Political Issue Moving Forward

- Greenback Labor Party + Populist Party = to increase money supply

- Election of 1896 would prove boiling point

One of the longest protracted economic downturns in US history; will affect laborers and their unionization moving forward

Causes:- Overproduction of RR’s, mines, factories, etc.- Bankers made too many risky loans

Effects:Debate over hard currency vs. greenbacks

- Debtors wanted greenbacks. Why? → Paper $, inflation decreased value

- Lenders wanted hard currency. Why? → Hard $, not affected by inflation, increased value

Panic of 1873

VS

Politics of the Gilded AgeGovernment

Tended to do very little while the House

was dominated by the Democrats and the

Senate dominated by the Republicans.

PartiesParty differences blur and loyalties are determined by region, religion, and ethnicity; voter turnout high.

• Pro-business• Opposed to economic

reform/radicalism• “Sound currency” for

status quo of financial system

Republican Splinters• Stalwarts: believed in patronage• Halfbreeds: wanted civil service reform• Mugwumps: voted Democrat in 1884...

Populist PartyOmaha Platform (1892) written by Ignatius Donnelly (Congress 3x)

- Free and unlimited coinage of silver (at ratio of 16/1 - to stimulate inflation)Context: Gold Standard (1873): amount of money in circulation is limited by the amount of gold held in the treasury → deflation → crop $ decrease

- Graduated income tax (to redistribute wealth)- Nationalize (of the telephone/telegraph, RR)- Initiative, reform, recall - Postal savings banks (safe repository run by gov’t)- Direct election of senators- Subtreasury plan not included; had been defeated

Legacy = FailurePopulism failed as a 3rd party cause but had a political influence for 25 years

beyond the 1896 election.

Kansas should raise less corn, more hell

Populist IdeasA memory aid…

Fried Free unlimited coinage of silver

Green Graduated income tax

Gummy Government ownership of RRs

bears

Invade Initiative

Really Referendum

Really Recall

Dorky Direct election of Senators

Silly Subtreasury plan

People Postal savings banks

Panic of 1893An economic depression (worst in century)

under President ClevelandCauses:

- Stock-market crash + over-speculation + overproduction + no money supply

- ‘Free Silver’ agitation damaged US credit abroad → called in loans, withdrew their capital

Results:- 20% unemployment in 93’-’94 winter; 8,000 businesses collapsed- Federal budget deficit- Gold reserves fell below $100m, regarded as safe minimum of $350 in curr.- Pres. Cleveland repeals the Sherman Silver Act (1890)

- Increase tariffs (what East wanted) + doubled silver (what West wanted)

Populism and The Wizard of Oz

The Election of 1896 & The Wonderful Wizard of Oz

L. Frank Baum- Moved to SD in 1887- Witnessed the end of the frontier and

the growth of the Populist party- Saw Western farmers’ hardship- Took part in the election of 1896 on

the side of Bryan and free silver- Was a populist activist

...Wrote the Wonderful Wizard of Oz in 1900.

Dorothy (and Toto)

Everyman of the West; seen as pure and likeable

Wicked Witch of the East

Eastern industrialists and bankers who controlled the people (the Munchkins).

Tin Manthe dehumanized industrial worker.

Scarecrow

the wise but naive western farmer.

The Cowardly LionWilliam Jennings Bryan, Populist presidential candidate in 1896, with a big roar and no bite

Yellow Brick Road(with all its dangers) represented the gold

standard

Dorothy’s Silver (Red) Slippers

the Populists' solution to the nation's economic woes ("the free and unlimited coinage of silver"); or soft money - no one knows how to use their power

Emerald City

Washington DC, where leaders reside and people look for significant change in their life.

The Wizard

William McKinley who tried to be all things to everyone, but turned out to be a fake

Munchkins

represented child workers

Wicked Witch of the Westharsh frontier environment (tornadoes,

drought), which water killed

Flying Monkeys

the Native Americans who are controlled by the Western powers (Wicked Witch)

Good Witch of the North/South (Glinda)

the Populists in the Midwest-North and South

Election of 1896

Battle over gold and silver

Republican - William McKinley (Gold)- Ohio Civil War vet; Longtime member of Congress- McKinley gains votes from industrial workers

Democrat - William Jennings Bryan (Silver)- ‘Boy orator of the Platte’; Nominated 3x for Pres.- Populists split over support for Bryan

“You shall not press down upon the brow of labor this crown of thorns; you shall not crucify mankind upon a

cross of gold!”

Populism’s Legacy

If the populists lost, was it still considered a success?

Failure: Gold Standard Act (1900): Confirmed the nation’s commitment to the gold standard

Success:16th Amendment (1913): graduated income tax17th Amendment (1913): direct election of senatorsInitiative & Referendum (Progressive Era, state by state)Australian Ballot (1892, state by state)