This document summarizes politics in the Gilded Age following the Civil War. It discusses the laissez-faire economic policies of the time and corruption scandals like the Credit Mobilier scandal. The two main political parties, the Republicans who appealed to industrialists and the Democrats who attracted laborers, are also described. The spoils system of political appointments is examined along with reforms under Presidents Hayes and Arthur. It concludes with the 1884 election of Grover Cleveland and scandals surrounding the candidates.

1. POLITICS, IMMIGRATION, AND
URBAN LIFE
Chapter 15: Politics in the Gilded Age

2. THE GILDED AGE
 This was a term coined by Mark Twain to describe
the post-Reconstruction era. Gilded means
“covered with a thin layer of gold,” and “Gilded Age”
suggests that a thin but glittering layer of prosperity
covered the poverty and corruption of much of
society

3. LAISSEZ-FAIRE POLICIES
 In the late 1800s, businesses operated largely with
out government regulation. This hands-off approach
to economic matters, known by the French phrase
laissez-faire, holds that government should play a
very limited role in business.

4.  The theory of laissez-faire
economics was primarily
developed by Adam Smith in
his 1776 book, The Wealth of
Nations.
 A university professor in
Scotland, Smith argued that
government should promote
free trade and allow a free
marketplace for labor and
goods.

5.  In the late 1800s, most Americans accepted laissez-faire
economics in theory. In practice, however, many
supported government involvement when it benefited
them.
 For example, American businesses favored high
tariffs on imported goods to encourage people to
buy American goods instead.
 American businesses also accepted government land
grants and subsidies (a payment made by the
government to encourage the development of certain
key industries, such as railroads)

6. CREDIT MOBILIER SCANDAL
 Credit Mobilier charged Union Pacific far
beyond the value of the work done, and money
flowed from the federal government through the
Union Pacific railroad to the shareholders of Credit
Mobilier

7.  The scandal was not investigated until three years
after the Union Pacific had completed the
transcontinental railroad
 Credit Mobilier gave stock President Grant and
several cousins, along with 30 other officials

8. THE SPOILS SYSTEM
 Under this system, elected officials appointed
friends and supporters to government jobs,
regardless of qualification
 This caused the government to be swarmed with
unqualified, dishonest employees
 Both Democrats and Republicans handed out jobs
to pay off the people who had helped them get
elected

9. OPPOSING POLITICAL PARTIES
 Republicans appealed to:
Industrialists
Bankers
And eastern farmers
 The Republican party was strongest in the North
and the upper Midwest and was weak to
nonexistent in the South

10.  The Democratic Party attracted those in
American society who were less privileged
 This group included:
Northern urban immigrants
Laborers
Southern planters
And western farmers
 They claimed to represent the interests of ordinary
people
 They favored an increased money supply, lower
tariffs on imported goods, and higher farm prices

11. REFORMING THE SPOILS SYSTEM
 Most states had very strong ties
to one party or the other, so not
many states would sway from
one party to the other
 Republicans gained support by
“waving the bloody shirt.”
This meant recalling the
bloodshed of the Civil War, a
conflict they blamed on the
Democrats

12. HAYES FIGHTS THE SPOILS SYSTEM
 Rutherford B. Hayes surprised many
supporters by refusing to use the
patronage system.
Instead he appointed those who were
qualified for the government jobs
 Hayes also began to reform the civil
service, or the government’s nonelected
workers

13. GARFIELD’S TERM CUT SHORT
 As the 1880 presidential election
approach, the Republican party was
split into three factions
The Stalwarts (followers of Senator
Conkling, defended the spoils system)
The Half-Breeds (followers of Senator
James G. Blaine, hoped to reform the
spoils system)
Independents (opposed the spoils system
altogether)

14.  Garfield, an Ohio congressman and ally of
the Half-Breeds, won the party’s
presidential nomination
 To balance the ticket,
the Republicans
chose as their vice-presidential
candidate, Chester
A. Arthur, a New
York Stalwart
 On July 2, 1881, president Garfield’s term
was cut short

15.  A mentally unstable lawyer names Charles
Guiteau shot Garfield as the president walked
through a Washington, D.C., railroad station
 When he fired his shot, Guiteau cried out, “I am a
Stalwart and Arthur is President now!”

16.  Garfield died three months later
 The public later learned that Guiteau had
expected a job from Garfield. When
Garfield passed him over, Guiteau
became so enraged that he decided to
murder the President
 The murder caused a public outcry
against the spoils system

17. ARTHUR REFORMS THE CIVIL SERVICE
 President Arthur was able to obtain
congressional support for his civil
service reform
 As a result, the Pendleton Civil
Service Act became law in 1883
 This act created Civil Service
Commission
Which classified government jobs
and tested applicants’ fitness for
them

18. DEMOCRATS TAKE POWER
 In 1884, the Republicans nominated James G.
Blaine, former Secretary of State and senator from
Maine
 The Democrats chose Grover Cleveland, former
mayor of Buffalo and governor of New York

19.  Many scandals surrounded the 1884 election
 Serious issues confronted the nation that year, such
as high tariffs, unfair business practices, and
unregulated railroads
 Yet the campaign focused mostly on the scandals
surrounding the two candidates

20.  Many believed Blaine received railroad stock
options in return from favorable votes while he was
in Congress
But no one could prove it
 Garfield gathered a child out of wedlock while a
bachelor in Buffalo
Which he admitted