Gilded Age Politics

Part 2
Populism and the Watershed
Election of 1896
The Tariff Issue

- Following the Civil War Congress raised new tariffs to protect new US
industries.
- This benefitted big business NOT the consumer.

- The tariffs lead to a $100 million dollar surplus (an embarrassment to conservative Cleveland!)

- Cleveland moves to lower the tariff, which would lower prices and prevent monopolies.
The Election of 1888

- Grover Cleveland (D) v. Benjamin Harrison

- The real issue of the election are the tariffs.

- Millions of pamphlets are circulated regarding the tariffs.

- Big business outright purchases people's votes and companies force their workers to vote en
masse against Cleveland.
Changing Public Opinion

- Increasingly Americans wanted the federal government to deal with growing

social and economic problems and to curb the power of the trusts.
- Interstate Commerce Act - 1887

- Sherman Anti-Trust Act - 1890

- McKinley Tariff - 1890

- Built on the idea that prosperity flowed from protectionism (Hint- It doesnt)
The Election of 1892

- Cleveland (Again) v. Benjamin Harrison

Cont.

- Cleveland rapidly loses support.

- He is blamed for the 1893 Panic - worst in the 19th Century.

- 8,000 businesses collapse in 6 months, including 12 major railroads.

- He also allows the tariff to remain high and repeals the Sherman Silver Purchase Act - hurting
debtors.
Five Major Issues of Clevelands Second Term
(The Lead to the Watershed Election of 1896)
1. The Panic of 1893

2. Coxeys Army

3. Pullman Strike

4. Conservative Supreme Court Decisions

5. THE SILVER ISSUE

The Panic of 1893

- Primarily caused by the decline in RR construction, but

Cleveland blamed the Sherman Silver Purchase Act.
- Bank failures caused a contraction of credit (nearly
500 banks closed)
- High unemployment and ongoing agricultural
depression.
- Citizens demand relief but the government continues its laissez faire policies.
Here Lies Prosperity
Coxeys Army and the
Pullman Strike
- Both Coxeys Army and the Pullman
strike are attempts to push the
federal government to protect
workers and farmers from the trusts.
- In both cases the government sides
with big business and does not seem
sympathetic to the plight of the
people.
The Silver Issue

- The Gold Standard continues to hurt farmers who need easy credit to stay in
business.

- Bland - Allison Act - Limited silver coinage to $2-4 million per month.
Ineffective.

- Sherman Silver Purchase Act

- Repealed by Cleveland in 1893.

- Southern and Western wings of the Democratic Party abandon Cleveland.

The Election of 1896
- William Jennings Bryan v. All Comers
- Bryan is a great orator and a fiery speaker.

- A great voice rather than a great

brain
Cont.
- His most famous speech is known
as the Cross of Gold.

- You shall not press down

upon the brow of labor
this crown of thorns, you
shall not crucify mankind
upon a cross of gold!
Cont.

- Bryan divides the Democratic party

- He is supported by farmers and workers in the West and South.

- However his debtor friendly policies would not help factory workers in the
North-East and they vote for McKinley.
Cont.

- The Republicans run William McKinley.

- Focuses his campaign on Clevelands failings rather than Bryan.

- Raises more than $16 million and spends almost all of it on disseminating
literature.

- Most of the literature is fear mongering on economic woes.

The Results

- Marks the failure of the Populist Party.

- This election is a TURNING POINT IN POLITICS.

- The future is in cities, not farmers,

- It is a victory for big business, big cities and and financial conservatism.

- The Republicans will hold the White House for all but 8 of the next 36 years.
Cont.
- Gold Triumphs over Silver - Gold
Standard Act of 1900.
- Confirms the Commitment to the gold
standard.

- New gold discoveries will halt deflation,

Why Did Populism Decline?

1.The economy experienced rapid change.

2.The era of small producers and farmers was fading away.

3.Race divided the Populist Party, especially in the South.

4.The Populists were not able to break existing party loyalties;

most of their agenda was co-opted by the Democrats.