The Gilded Age 1877 to 1900
Review Presidents:
Election of
1836
1840
1844
1848
1852
1856
1860
Democrat
Whig
Democrat
Whig
Democrat
Democrat
Republican
Martin Van Buren
William Henry Harrison/John Tyler
James K. Polk
Zachary Taylor/Fillmore
Franklin Pierce
James Buchanan
Abraham Lincoln
Election of 1864 – Lincoln was re-elected. Sherman’s burning of Atlanta assured that the
war would soon be over and Lincoln was assured a second term.
Election of 1868 – Grant “waved the bloody shirt” and was elected on the issue of “vote
as you shot.”
Election of 1872 – Grant won again even though a series of scandals began to impact his
administration. The scandals will scar his place in history.
In 1876, Grant wanted to run for a third term but was denied by the Republican party.
The Republicans nominated Rutherford B. Hayes who ran against the Democrat
Samuel Tilden.
Tilden became famous for prosecuting the infamous Boss Marcy Tweed of New York
City.
Boss Tweed led a Democratic political machine. As head of Tammany Hall, the name
of NYC Democratic Political, he controlled patronage – the practice of rewarding
political supporters to appointments for government jobs and favors.
Tweed also assisted ethnic immigrants as a new wave of immigrants began to arrive into
the U.S. In exchange for subsistence jobs, low rent, housing and “police protection,”
bosses such as Tweed were supported at the polls. Immigrants willingly gave their vote
to their benefactors.
Page | 1
The Tweed ring was prosecuted for corruption (practicing recording fictitious city
expenditures). Famous cartoonist, Thomas Nast, made him a target and Samuel Tilden
led the political charge against the later convicted Tweed.
The Election of 1876
Republicans – Rutherford B. Hayes
Democrats – Samuel Tilden
The election took place in the midst of the withdrawal of military troops from the South
as the Southern states slowly re-entered the Union.
During the election, 3 states – Florida, South Carolina, and Louisiana sent in two sets of
electoral votes causing a dispute in which would be actually counted – the set from the
reconstruction government or the “Democratic redeemed” governments?
To settle the issue and to avoid a Constitutional crisis, a political Compromise of 1877
was reached by an electoral Commission.
Conditions of the Compromise of 1877:
 Republican Hayes would become president
 The remaining Union troops would be withdrawn, thus ending
reconstruction.
Politically, the compromise was accepted because the northern states and voters were
tired of the whole reconstruction mess and lost interest in the South.
With the election of Hayes, the country entered into a new era- the Gilded Age.
American writer Mark Twain named the age to emphasize the extremes of wealth and
poverty during the time.
Several historical themes evolved around the Gilded Age that enhanced its definition.
Most important was the Industrialization of America, brought on by the nation’s vast
resources, inventive people, and a supportive government toward the expansion of the
Free Market.
Define Free Market
Page | 2
Reconstruction
Railroads
And Frontier
Urbanization
Immigration
The Gilded Age
The New South
Industrialization
and
Robber Barons
Populism
Progressive
Movement
Imperialism
The Hayes administration ran its course and he was not chosen by the Republicans to run
again. He also tainted his chances to be re-elected because he vetoed the Chinese
Exclusion Act, an attempt to stop Chinese from coming to the U.S.
The Chinese were welcomed on the West Coast during the height of the mining years
after gold was discovered in California. They supplied a major labor source for the
digging of the mines and later, a labor source for the nation’s transcontinental railroad
system that connected the nation as a result of the passage of the Railroad Act of 1862.
Hayes vetoed the act on moral issues which led to the election of Republican James
Garfield in 1880. James Garfield was a dark horse, meaning he did not have much
name recognition. The Republicans won the election based on the money that they put
into the campaign.
Page | 3
The election of Garfield was typical of the Gilded Age presidential elections. Weary of
war, people were not reform minded; they wanted government to be inactive and
uninvolved as possible. The concept of laissez-faire leadership was popular. Define
Laissez-Faire.
Presidents became “caretakers” of government. Political parties were evenly matched so
neither political party could push for major legislation. High-lighted by scandal and
incompetence, the name Gilded Age, as named by Mark Twain, was a sarcastic view of
the political and economic environment of the post-Civil War period.
Garfield was shot by a deranged Republican supporter Charles Guiteau. Guiteau
believed that he played an important part in the close election of Garfield over the
Democratic candidate, Winfield Hancock. (He printed a speech that he circulated and he
believed his Garfield vs. Hancock speech was the difference in the election.)
For his efforts he believed that he was entitled to a “patronage job.” Define Patronage.
Guiteau was snubbed by the Republicans, bought a gun, shot the president at the given
opportunity and 11 weeks later Chester Arthur became president.
The country was stunned! A party battle over spoils and patronage jobs led to the death of
president.
Immediately, Senator George Pendleton, Ohio, introduced a bill that became the Civil
Service Reform Act of 1883. It separated government job holders from political
obligations by creating the Civil Service Commission.
The commission set up a system of competitive exams to determine the qualifications
for those seeking government jobs to replace the patronage/spoils practice of “if you help
me, and if we win, you will be awarded a government job.”
The spoils system was finally resolved to some degree under President Arthur.
Another issue that was resolved under Arthur was the public’s concern of the Chinese
and their infringement on taking “American jobs” by willing to work for less wages. The
nature of the Asian culture was not acceptable to Native born Americans, so under Arthur
the nation passed the Chinese Exclusion Act (1882) – the nation’s first immigration
restriction policy.
Page | 4
We will return to the presidential time line of the Gilded Age later. Now we are going to
address the historical themes of the Gilded Age and introduce each. Each theme will be
more detailed over the next 4 week period.
Populism
The New South
Urbanization
Industrialization of America
Railroads and Frontier
1900
Post Civil War
Page | 5
Railroads and the Frontier
As we know the west coast was populated before the Great Plains. Two congressional
acts passed during the Civil War contributed directly to the increased population of the
frontier area:
1) The Homestead Act of 1862 – that gave free land to those willing to move to
the frontier and claim it
2) The Railroad Act of 1862 – that gave land grants and low government loans to
companies to construct the nation’s first transcontinental railroads
These two acts encouraged settlers to move to the Great Plains.
 cities sprang up along the railroad lines
 farmers flocked to the frontier to claim their homesteads
The railroads transformed the United States. The business of the railroads approached
the power of government itself. Even though new markets were created and goods were
now transported nationwide from coast to coast, the railroads demonstrated no
compassion towards the plains farmer who depended on the railroads for his livelihood.
It was realized by Congress that the railroads must be controlled because the belief was
that railroads should sub serve the American people.
In 1887, Congress passed the (I.C.C.) Interstate Commerce Act of 1887. The act
established two goals
1) Railroad prices and hauling polices could be controlled by the government
2) The ICC became the nation’s first regulatory agency – others would follow
As populations and railroads moved west, the Great Plains buffalo was destroyed by the
millions – the process also destroyed the livelihood of the Plains Indians.
The Indians were forced on reservations after a series of conflicts with the army.
In 1887 congress passed the Dawes Act (Severalty). The act divided reservation land
into privately owned parcels. The purpose of the Act was to assimilate the Native
Americans into White society by forcing the deterioration of their communal life-styles,
and forcing them to become farmers.
Page | 6
Industrialization of America
The industrial revolution was embraced by the United States during the Gilded Age.
Capitalism, the economic system that ‘Best Fit” the industrial growth of the times, was
able to operate in a laissez faire environment. The natural laws of capitalism were
determined by the demands of the market place.
As industries grew, they developed into giant industrial complexes called trusts.
The wealthy American industrialists would use a theory called Social Darwinism to
justify their actions to obtain such large amounts of wealth at the expense of the working
poor.
Gospel of Wealth
Even though Social Darwinism was natural, others found God to be the best justification
for the wealth accumulated by the rich. Their protestant work ethic and material success
were signs of God’s favor.
Social Darwinism was the belief that wealth that was placed in the hands of the “fit”
would benefit humanity and “helping the poor” interfered with the natural laws of nature.
The undisciplined greed of those that practiced monopolistic endeavors earned them the
name Robber Barons because of the blatant use of cheap labor and resources.
Page | 7
Urbanization and Immigration
The post-war industrial climate of the U.S. thrived in the laissez-faire environment of
uncontrolled capitalism.
The urban centers of the industrial cities demand more cheap labor – jobs were abundant
– for the most part, they were low-level subsistence jobs – but jobs that attracted groups
from two sources.
1) Rural to Urban – millions of young Americans left the farm life in the rural areas
of the U.S. to seek opportunities for employment in the cities
2) New Immigrants – fleeing the “pushes of southern, central and eastern Europe
crowded into the poor ethnic neighborhoods of the major northeast/Midwestern
cities, bringing very diverse cultures, religions and views of government.
A new social consciousness toward the urban poor was awakened in the middle class.
The Settlement House Movement – Young idealistic well-educated women of the
middle class led the movement to aid the urban poor by working in settlement houses.
Settlement houses were located in poverty stricken neighborhoods. At the settlement
houses, the urban poor could acquire job skills, reading/writing, child care, etc.
Social Gospel Movement was started by Protestant preachers who took the call to
establish social justice for the urban poor. They preached the message of the Social
Gospel – the importance of applying Christian principles to social problems created by
the industrial revolution.
The rapid industrial growth of America led to:
 The growth of tenements and slums
 A major shift from rural to urban lifestyle
 Wide-spread use of child labor
Other problems developed for the immigrants. Since immigrants would work for less
wages and their culture was different, they became a target for nativist.
To offset subsistence living, people began to organize against business in order to:
 Receive better pay
 Work shorter hours
Page | 8
 Have better working conditions
The organization of labor unions set up a series of labor conflicts between business and
the unions – industrial warfare developed between the two groups – one group wanted
more profit – the other wanted bread and butter benefits.
In conflicts between labor unions and business, government usually sided with business
in the form of presidential actions, court injunctions or state militias.
Page | 9
The New South and African-Americans
After the Civil War the south had to recover from the devastations caused by the Union
Army. Some of the Southern cities prospered during the Gilded Age, but for the most
part, the South remained largely agricultural, and also the poorest region of the country.
The 13th, 14th, and 15th amendments of the constitution were passed to free, give
citizenship, and the right to vote to the former southern slaves.
These rights were quickly smothered by the Supreme Court in the 1896 case of Plessey v
Ferguson. After the courts decision a wave of segregation laws called Jim Crow Laws
were passed by Southern states. These laws required segregated facilities in virtually all
public places.
The social injustices caused by the Jim Crow Laws were equally devastating to the
economics of African-Americans caused by sharecropping. Since blacks had no money
to purchase land, they could work land owned by others in return for ½ the harvest. The
landlord usually provided seed and other supplies.
The post-reconstruction situation of African Americans left them in a nearly powerless
condition – but not completely powerless. Black leaders appeared to respond to the
period of historical discrimination.
Booker T. Washington, a former slave established a vocational training college at
Tuskegee Alabama. His “mission” was to gradually assimilate African-Americans into
the white world by teaching them a skill to supply their economic needs.
Contrary to Washington, W.E.B. DuBois challenged gradualism by arguing that
political and social rights were required for economic independence.
Thought W.E.B. DuBois leadership, the NAACP was founded in 1908. The goal of the
movement was to challenge discrimination through the court system or to test the
constitutionality of Jim Crow Laws.
African Americans were attracted to migration movements to seek relief for their
economic conditions. The roots of these migration movements begin in the Gilded Age
but also greatly influenced the early 19th century.
Page | 10
 The Exodusters were African-Americans who fled the South for Kansas in 1879
and 1880 seeding freedom and land.
 African Americans also began to leave the South seeking northern industrial jobs.
The movement will gain momentum as more jobs became available due to the
outbreak of World War I – Great Migration.
 The Back to Africa movement led by Marcus Garvey bloomed out of the Great
Migration. Garvey called for the return of African Americans to Africa. His
goal – a Republic of African – controlled by black people. The movement failed
but it awakened black nationalism nation-wide.
Page | 11
Populism
Another theme of the Gilded Age was a farmer’s initiated movement called populism.
The Populist movement evolved out of major economic problems dealing with the
economic “dilemmas” of the farmers.
Late in the 1800s farmers began to organize to address the problems that plagued their
economic existence. These problems included:
1) the need for government regulation of the railroads and other profit sapping
middlemen.
2) the need for expansion of the money-supply or inflation. To expand the money
supply, farmers wanted money based on silver as well as gold at a ratio of 16 to 1.
The unlimited coinage of silver” became the “issue” of the Populist movement.
3) the tariff issue was also a problem for the farmers. Republicans and business men
wanted high tariffs to protect northern industries from cheap European imports –
but tariffs made consumer goods that the farmers needed more expensive. Other
nations retaliated by placing tariffs on U.S. farm products.
The Populist movement and its issues became intertwined with U.S. presidential politics.
In 1884, following Arthur’s accidental administration, an extremely laissez-faire
president, Grover Cleveland was elected and the Democrat was also supported by some
Republicans who could not support the Republican candidate James Blaine – Blaine
moved through the national Republican party machine until he was positioned to run for
president. Former scandals and scars from the spoils system were too much to overcome
and Cleveland was elected.
The republican’s labled the Democrats the party of rum, Romanism and rebellion –
meaning they were:
1) anti-prohibition
2) pro immigration
3) wrong side of Civil War
Cleveland did not believe government should interfere in the social and economic lives of
its citizens. He became the NEW king veto. He vetoed:
Page | 12
 high tariffs – it favored big business
 unlimited coinage of silver – he believed that money should be based on gold
(Farmers/Miners)
 he vetoed union interest/veteran interest
 and a whole lot more
Election of 1888
Grover Cleveland – Democrats
Benjamin Harrison – Republicans
Who would vote against Laissez Faire Cleveland?
The sum of all the special interest against Cleveland voted for Harrison. James Blaine
became Secretary of State under Harrison.
Blaine redeemed his reputation by supplying the leadership in establishing the PanAmerican Union in 1889. The union was an organization to promote international
cooperation between the American Republics. It was the forerunner of the OAS.
Harrison’s administration – when Cleveland was in office, he vetoed all special interest
legislation – Harrison passed it!
Harrison and his Republican congress passed the first billion-dollar budge in U.S. history.
He also made an economic “deal with the devil” by trying to appease business interest
and farming interest.
We know two major issues of the Gilded Age were the silver issue and tariff issue.
What did the farming interest want?
Unlimited coinage of silver.
What did the big business interest want?
High protective tariffs on foreign products.
Harrison gave each what they wanted. In 1890 he passed:
1) The McKinley Tariff – raised rates on foreign products at 48%
2) The Sherman Silver Purchase Act which allowed the government to purchase
‘some’ silver and increase the money supply
Page | 13
By 1892, the economic mix of oil and water (McKinley Tariff and the Sherman Silver
Purchase Act) caused the nation’s economy to be unstable and highly inflated.
INFLATION
INSTABILITY
McKinley
Tariff
(Prices)
Sherman
Silver Purchase
(Money Supply)
THE ECONOMY
The country was staring straight into the eyes of a major depression and could do nothing
about it.
The election of 1892 – with the country on the verge of economic disaster, the
republicans renominated Harrison and the Democrats re-ran Cleveland.
A new third party also ran a candidate – the Populist or People’s Party ran James
Weaver.
Their base, the farmers, campaigned for the free and unlimited coinage of silver. they
claimed the Sherman Act did not put enough silver in circulation – even though the
country was looking squarely into the eyes of a severe panic.
The country returned Cleveland to the White House – making him the only president to
serve two terms, but non-consecutively.
Page | 14
The Populist won a surprisingly 22 electoral votes giving notice that they would be a
worthy opponent in the 1896 election.
Cleveland proved that he was right by use of the veto pen – but now he had to deal with
the upcoming Panic of 1893.
Hayes, Garfield, Arthur, and Harrison are often called the “forgettable presidents.”
Cleveland was a mild exception.
Actually, as we now know, the country’s best men were not politics – but they were lured
away by industry by the thousands.
What the national lost in political leadership during the Gilded Age it gained in an
astounding surge in economic growth in the tandomly attached Industrial Age.
Page | 15