Post Civil War Industrialization Flashcards
Whiskey ring
Gang robs treasury of millions in excise tax revenues
Grants secretary was one of the thieves, but grant wrote a note that helped free him
Sig? Even though grant claims to “let no guilty man escape”, his personal preferences get in the way
Credit mobilier scandal
Railroad insiders formed credit mobilier and hired themselves to build a railroad, then sold shares of the stock to congressmen in hopes they wouldn’t be caught
Sig? Led to formal censure of the congressmen and even the vice president was in on it!
Liberal republicans in 1872
Urged a purification of administration and an end to military reconstruction
Nominated Horace Greeley (editor of NY tribune) who was also crazy
Sig? Voters have to choose between two totally unqualified candidates
+scared normal republicans into being more lenient to southerners and reducing tariffs
Panic of 1873
Too much industrialization and too many loans cause a huge depression
15,000 business go bankrupt, riots, many blacks lose all savings
Sig- sparked debate over hard money vs. Soft money
Tweed corruption and t. Nast cartoon
“Boss” tweed and his gang swindled $200 mil from NYC, Thomas Nast refused a $5 mil bribe and published cartoons that exposed Nast
Sig? Samuel j. Tilden led the prosecution against tweed, putting him on a path to presidential nomination
Hard money vs. Soft money
During the war a bunch of soft money was issued, but now grant is recalling it and turning towards hard money
Republicans want hard money, people in debt like farmers want soft money or money backed with silver (to encourage inflation)
Sig- ended with “contraction” in which the treasury accumulated more gold stocks (hard money), causing deflation and worsening the depression (but restoring governments credit rating)
Also people hated the hard money policy so they elected a democratic house and created the greenback labor party
Gilded age
1869-1896
Characterized by lots of fraud/greed, especially among politicians, unqualified leadership, really closely balanced political parties, and an economic panic
Sig- strengthening of party loyalties, disillusionment among american people
Democrats vs. Republicans
Republicans- based on Puritanism, govt should regulate economy and morality, supported reconstruction (at first) Controlled Midwest and rural north, freed men in the south, and union veterans
Democrats- lutheran and Catholics, no govt control on morality. Found in south and in northern industrial cities
Spoilsmen and patronage
Stalwarts vs. Half-breeds
Patronage= give people jobs in return for votes, money, and party service
Stalwarts and half breeds= factions of the Republican Party
Stalwarts- led by lord roscoe cockling, a U.S. Senator who supported trading votes for jobs
Half-breeds- supported james g. Blaine
Sig? Republicans had to compromise and support Rutherford b. Hayes
Compromise of 1877
Set up an electoral commission consisting of 15 men from senate, house, and SC to decide whether the republican or democratic returns of disputed votes from LA, SC, and FL would be accepted
Sig? They decide on republican-> Hayes becomes president even though Tilden just needed one more vote!!
+in return, democrats are promised that Hayes will remove troops from LA and SC and subsidize a S. Transcontinental railroad
Jim Crow south
Federal troops pulled out, democrats reestablish power Many blacks forced into sharecropping-> perpetually in debt Jim Crow laws, poll taxes, literacy requirements, voter intimidation Sig? Blacks become second class citizens
Railroad regulations
Wabash vs. Illinois & ICA
Wabash vs. IL- states can’t regulate interstate commerce
Interstate commerce act- prohibits pools, requires railroads to openly publish rates, forbade charging more for a short haul than a long, and set up ICC to enforce
Sig? First large scale attempt to regulate business for the good of the people
Trusts, vertical integration, and horizontal integration
Vertical (Carnegie)= control all phases of manufacturing
Horizontal (Rockefeller)= ally with competitors to monopolize a market
Trust- stockholders of smaller companies sell their stocks to board of directors in standard oil, consolidating and crushing small businesses
Sig? Allow few figures to completely monopolize markets and dominate industry, at the expense of the public
Gospel of wealth
Like divine right of kings, but with money
JDR said “the good lord gave me my money”
Sig? It’s a justification of wealth, probably so the poor people won’t revolt against them- they think it’s gods work!
Social Darwinism
Inspired by David Ricardo and Thomas Malthus, the super rich won money because they used their natural talents
Social classes are natural and don’t owe each other anything!
Sig? Causes a contempt for the poor bc rich think they’re lazy or untalented
