State Reforms

As the presidency became less active the states tried to reform.The states created commissions to watch the railroadsThe supreme court eventually ruled in 1886 in the case of Wabash v.s. the pacific Railway that the state could not regulate commerce beyond it’s bordersCongress stepped up and created the ICC

ICC

Interstate Commerce CommissionExisted to investigate railroad activities.

Outlawed rebates and pools in the railroad industry.

R u th erfo rd B . H ayes

Due to Hayes close election win he was viewed as a fraud.

Hayes pushed for the reform of the civil service, as well as the gold standard.

Vetoed the bill that pushed for the partial coinage of silver the Bland Silver Purchase act.Congress overturned the veto.

James A. Garfield

Was overwhelmed by the mob the swarmed him for civil service appointments once he was elected.Was eventually killed J. Guiteau.

Chester A. Arthur took over who was associated with Senator Conklin who was known for political machines in New York.

Pendleton Act

After the death of Garfield the Pendleton Act was passed.

It significantly reformed the civil service.

Required candidates to take written exams to be qualified for their position.

Benjamin Harrison

Defeated sittng President Grover Cleveland in 1888Cleveland pushed for smaller government vetoing 2/3 of the bills that came his way. Also fought for veterans rights.

Harrison did pass one major, trust, and silver purchase law.

Sherman Anti Trust

The act was passed with help from both parites.

It was the first law to deal with trusts. It outlawed any trusts that may restrain business,

Would be significant in later court cases

Sherman Silver purchase

Silver was once used in currency but as time went on it went into disuse.As silver was discovered out west the idea of purchasing silver for coins became popular.The law pushed the treasury to buy 45 million ounces of silver.

Cause for economic downfall

During the war the government increased the money supply by issuing greenbacks. These could not be exchanged for gold or silver.

Due to a lack of products this would cause inflation.Eventually the government gave the farmers options to help deal with this.

By 1895 the farmers would be hit by a period of deflation.

The government takes action again

The department of agriculture sent Oliver Kelley to investigate the farming area.

Started the grange program to help with farming and education.

This idea worked until the country fell into a recession.

To try and deal with the recession the grangers developed cooperatives.

Cooperatives: A marketing organization that tried to increase prices and lower the costs of their members for crops.These tactics continued to fail.

Farmers alliance

The alliance forms as Granges collapseConsists of around 3 million members.

The plan was to build large groups of farms to try and force down the price of goods, and obtain loans.

Panic of 1893

Both the Philadelphia and reading railroad went bankrupt on the stock market.Investments dropped significantly in railroads and construction.People hurriedly sold stock to buy Gold.Banks cut back on loansIt was believed that 15 percent of the population was unemployed.

Pullman Strike

Chicago 1894Wages are cut to the workers of the Pullman Palace car company. All the employees lived in a company produced city.The employees went on strike Eugene V. Debs and the American Rail Way Union joined them crippling the country.Grover Cleveland who was reelected in 1892 decided to break the strike for interrupting U.S. Mail.

Rise of the people

As farming plans begin to fail a number of farmers formed the People’s party.(populist party)

The party existed to elect members of congress that would support farmers.Many were concerned that this group would hurt the democrat party.

The presidency

The people’s party would come together and nominate James B. Weaver for President.

Weaver called for the coinage of silver as well as federal ownership of the railroad.He also supported a graduated income tax which called for higher earners be taxed heavily.