after the civil war, congress raised tariffs to protect new us industries. big business wanted to...
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ECONOMIC AND POLITICAL
CHALLENGES
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ECONOMIC ISSUES PLAGUED THE NATION…
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TO TARIFF OR NOT TO TARIFF? After the Civil War, Congress raised
tariffs to protect new US industries.
Big business wanted to continue this;consumers did not.
1885 tariffs earned the US $100 million in surplus!
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THE CURRENCY QUESTION Government had made paper money during
the Civil War led to inflation lack of confidence in paper currency stopped printing paper currency - 1873
Coinage Act of 1873 began a continued debate over use
of gold and/or silver as money
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PANIC OF 1893 Business opportunities, especially in RRs, had lead investors to excessive debt
banks & businesses closed
stock market collapsed
Panic triggered 4-year economic depression
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Problem: Gold Standard gold = basis of nation’s currency
limited supply of gold scarce and becoming scarcer
Scarcity of gold: caused deflation – prices went down
existing debts were harder to pay
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SOLUTIONS: Greenbacks (paper money)
increased supply = inflation prices will go up
“Free” Silver Allow silver to be minted as well as
gold increased supply = inflation prices will go up
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POLITICAL CORRUPTION CONITNUES
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THE GILDED AGE: 1877-1900
Politics in this time period was
characterized by corruption and
inaction…
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POLITICAL CORRUPTION WAS CAUSED BY…
the spoils system (patronage) government jobs awarded to loyal party workers & campaign contributors regardless of their qualifications
government workers changed each time a new candidate won office Why would this be a bad thing?
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SPOILS SYSTEM… POSITIVES & NEGATIVES
held political parties together - loyalty
helped each party gain more supporters
boosted political participation
easy way to raise campaign funds
allowed political machines to flourish
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CIVIL SERVICE REFORM: Civil Service = working for the
government Reform = change
Pendleton Civil Service Act – 1883 Govt. jobs awarded based on merit system - people earn jobs based on qualifications
created a Civil Service Commission
Benefit = keep the same workers no matter who is in office
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WITH THE GOOD COMES THE BAD…
Campaign contributions went down people weren’t guaranteed a govt. job anymore
Politicians had to find other sources of funds Alliance between govt. and big business became even stronger
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CORRUPTION CONTINUES…
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WE WANT CHANGE!!
Americans wanted the federal government to deal with growing social, political, &
economic problems & to curbthe power of the trusts…
NEXT UNIT:
Populists and Progressives!
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POLITICAL INACTION WAS CAUSED BY…
1. Balance of power between White
House and Congress (i.e. They couldn’t agree on
anything!)
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2. TWO-PARTY STALEMATE
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3. VERY LAISSEZ FAIRE GOVERNMENT
From 1870-1900 Govt. did very little domestically
Main duties of the federal govt.:
Deliver the mail.
Maintain a national military.
Collect taxes & tariffs.
Conduct a foreign policy.
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4. SERIES OF WEAK PRESIDENTS
“The Forgotten Presidents”presidency a symbolic office
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RUTHERFORD B. HAYES (1876-1880)
Honest politician
Appointed cabinet based on talent not friendship
Began the downfall of spoils system
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JAMES GARFIELD (1881)
Gave jobs to people who deserved them
Assassinated by a man who was turned down for a job
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CHESTER ARTHUR (1881-1884)
Pushed for Civil Service reform
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GROVER CLEVELAND (1884-1888, 1892-1896)
Only democratic president of the era
The “Veto President”
Exposed corrupt RR practices
Created Department of labor
Tried to lower tariffs (unsuccessfully)
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BENJAMIN HARRISON (1888-1892)
Weak president
Followed the will of Congress