1. The Gilded Age (1870-1900)

2. The Gilded Age (1870 to 1900)
 What is the “Gilded Age”?
 Era of rapid economic and political growth
 Most famous for the creation of a modern
industrial economy.
 Created a national transportation and
communication network
 The corporation became the dominant form of
business organization
 A managerial revolution transformed business
operations

3. The Gilded Age (1870 to 1900)
 What is the Gilded Age?
 The Second Industrial Revolution
 Businessmen created industrial towns and
cities in the Northeast with new factories
 Hired an ethnically diverse industrial working
class, many of them new immigrants from
Europe.
 Super-rich industrialists and financiers were
attacked as "robber barons" by critics, who
believed they cheated to get their money and
lorded it over the common people.
 Growth of the labor union movement

4. The Gilded Age (1870 to 1900)
 What is the Gilded Age?
 Gilded Age politics, called the
Third Party System, featured
very close contests between the
Republicans and Democrats,
and, occasionally, third parties.
 Nearly all the eligible men
were political partisans and
voter turnout often exceeded
90% in some states.

5. The Gilded Age (1870 to 1900)
 What is the Gilded Age?
 Period of opulent, upper class
wealth and public endowments
 Wealthy philanthropists used
private money to endow
thousands of colleges, hospitals,
museums, academies, schools,
opera houses, public libraries,
symphony orchestras, and
charities.

6. The Gilded Age (1870 to 1900)
 What is the Gilded Age?
 The end of the Gilded Age
coincided with the Panic of
1893, a deep depression.
 The depression lasted until
1897 and marked a major
political realignment in the
election of 1896.
 After that came the Progressive
Era.

7. OSTENTATIOUS WEALTH
AND… CONSPICUOUS CONSUMPTION

9. Two Different Worlds
 The wealthy lived extravagant
lifestyles and considered
themselves elitists.
 The common people resented
their snobbish attitudes and
wealth. There was a caste
system in the U.S.
 1861 => 3 millionaires
 1900 => 3,800 millionaires
 By 1900, 90% of wealth was
controlled by 10% of population.

10. Political Machines
• Organized group that
controls a city’s political
party
• Give services to voters,
businesses for political,
financial support
• After Civil War, machines
gain control of major cities
• Machine organization:
precinct captains, ward
bosses, city boss

11. Political Machines
 The Role of the Political Boss
 May serve as mayor, where he:
 controls city jobs, business licenses
 influences courts, municipal agencies
 arranges building projects, and
community services
 Bosses paid by businesses, get voters’
loyalty, extend influence William Boss Tweed

12. Political Machines
 Immigrants and the Machine
 Many captains, bosses 1st or 2nd
generation Americans
 Machines help immigrants with
naturalization, jobs, housing
 Election Fraud and Graft
 Machines use electoral fraud to win
elections
 Graft—illegal use of political influence
for personal gain William Boss Tweed
 Machines take kickbacks, bribes to allow
legal, illegal activities

13. William Boss Tweed
 Corrupt political leader put New
York City in debt
 Political boss
 1851 elected to city council
 1852 served in Congress
 Kept Democratic Party in power in
NYC called Tammany Hall
 Formed the Tweed Ring
 Bought votes, encouraged
corruption, controlled NYC politics

14. William Boss Tweed
 Received large fees for
interests (kickbacks*) from the
Erie Railroad
 *Kickbacks = Return of a portion
of the money received in a sale or
contract often illegal and corrupt
in return for special favors.
 Tweed Ring milked the city
with false leases, padded
bills, false vouchers,
unnecessary repairs and over-
priced goods

15. William Boss Tweed
 Exposed for his corruption
by cartoonist and editor,
Thomas Nast
 Tweed Ring fell and 1873
Tweed convicted of
embezzlement
 Later Tweed was arrested
on a civil charge and
jailed in NYC, later died
there

16. President Grant’s Scandals
 “Credit Mobilier”
 Phony construction company owned by
stockholders of Union Pacific Railroad.
 Hired Credit Mobilier to build the
transcontinental railroad
 Charged the U.S. government nearly twice
the actual cost of the project.
 Bribed Congress to stop the investigation.
 Largest scandal in U.S. history, and led to greater
public awareness of government corruption.

17. President Grant’s Scandals
 Whiskey Ring
A group of President
Grant’s officials
imported whiskey
 Used their offices to
avoid paying taxes
 Cheated US treasury
of millions.

18. President Grant’s Scandals
 Salary Grab
 Congress gave itself a
raise, $5,000 to
$7,500 annually.
 Congressmen received
a retroactive check for
$5,000, plus their
raise……
 Became a political
issue….Later
repealed.

19. President Garfield’s Election

20. 1880 Presidential Election: Democrats

21. ELECTION OF 1880
James A. Garfield wins the election with a bare
margin of the popular vote.

22. The “Spoils System”
 Under the Spoils System (patronage), candidates for
political office would offer potential jobs in
exchange for votes.
 gave supporters access to money and political
favors.
 During the Gilded Age, the Republicans and
Democrats had roughly the same number of
supporters.
 To keep party members loyal, candidates rewarded
supporters and tried to avoid controversial issues.

23. The “Spoils System”
The Republicans The Democrats
 Appealed to the  Attracted the less
industrialists, bankers, privileged groups.
and eastern farmers.
 such as northern urban
 They favored the gold immigrants, laborers,
standard (sound money) southern planters, and
and high tariffs western farmers.
 Blue laws, regulations  Supported soft money
that prohibited certain and silver coinage.
activities people
considered immoral.

24. President Garfield’s Assassination
 Assassinated by an upset Spoilsman.
 Led to VP Chester Arthur becoming
president
 Supported a change to the
corrupt spoils system.
 Signed into the law the Pendleton Act,
also called the Civil Service Act.
 Required candidates applying for
government positions to a test to
determine their qualifications.

25. GARFIELD’S ASSASSINATION
Charles Guiteau: “I am a Stalwart, and Arthur is President now!”

26. The “Spoils System”
President James A. Garfield President Rutherford Hays
 1880 election, Republicans were  Elected in 1877
split into 3 factions.
 Stalwarts defended the spoils
 Reformed the civil service,
system—Senator Roscoe Conkling appointing qualified political
independents instead of
 Half-Breeds reform but still giving positions to supporters.
supported it– Senator James Blaine
 Independents opposed the spoils
 No Congressional support or
system. from the Republican Party.
 Garfield wanted reforms. His  Hayes did not seek a second
running-mate was Chester Arthur, a term.
Stalwart.
 July 2, 1881 Garfield was
assassinated by a Stalwart who
wanted Arthur as president.

27. The Pendleton Act (1883)
 a.k.a. “Civil Service Act”
 The “Magna Carta” of
civil service reform.
 1883: 14,000 out of
117,000 federal govt.
jobs became civil service
exam positions.
 1900: 100,000 out of
200,000 civil service
federal govt. jobs.

28. After the assassination, President Arthur was able to get
Arthur Reforms the Civil Service
congressional support for the Pendleton Civil Service Act. which
created a commission of classified government jobs

29. President McKinley’s Assassination
William McKinley Theodore Roosevelt
 President McKinley had just been re-elected in 1900 and
beginning his 2nd term when he was assassinated in 1901.
 VP Roosevelt became President.

30. 1876
*
Election
Tilden did not
receive enough
electoral votes.
Special
Commission
gives votes to
Hayes.
Hayes wins the
*Disputed election
Electoral votes
Democrats refuse
to recognize
164
Hayes as
President
369 total electoral votes, need 185 to win.

31. A Corrupt Bargain
 The election of 1876 and the
Compromise of 1877 are referred to as
the Corrupt Bargain.
 The Democrats and Republicans work out
a deal to recognize Hayes as President
Rutherford B. Hayes
 In return, President Hayes must end
Reconstruction and pull the Union troops
out of the South.
 Once this happens, there is no protection
for the Freedmen and the South will
regain their states and go back to the
way it was. Samuel Tilden

33. Laissez-Faire Economics
 An economic belief supported by the U.S. that
opposes the government regulating business.
 Inthe late 1800’s businesses operated without much
government regulation. This is known as laissez-faire
economics.
 Laissez-faire means ‘allow to be’ in French or the
government stays out of you business.
 Laissez faire supports our economic system of
capitalism

34. Laissez Faire Federal Govt.
 From 1870-1900 Govt. did
very little domestically. Main
duties:
 Deliver the mail.
 Maintain a national military.
 Collect taxes & tariffs.
 Conduct a foreign policy.
 Exception administer the annual
Civil War veterans’ pension.

35. Capitalism
 Economic system characterized
by private property ownership
 Individuals and companies compete
for their own economic gain (Profit)
 Capitalists determine the prices of
goods and services.
 Production and distribution are
privately or corporately owned.
 Reinvestment of profits
 Supports laissez faire

36. Socialism
 Economic system based on
cooperation rather than
competition
 Believes in government
ownership of business and
capital
 Government controls production
and distribution of goods.
 Opposite of laissez faire and
capitalism