Overview
This lecture covers the main political debates of the Gilded Age: government patronage, tariffs, and the monetary standard of gold versus silver.
Patronage and Civil Service Reform
- Patronage (spoils system) involved appointing government jobs based on loyalty or friendship, often leading to corruption.
- Civil service reform aimed for government positions to be awarded by merit, often via exams.
- The Republican Party split over this issue: "Stalwarts" supported patronage, "Half-Breeds" supported civil service reform.
- James Garfield (Half-Breed) became president in 1880; his vice president Chester Arthur was a Stalwart.
- Garfield was assassinated by a patronage supporter; Arthur became president and surprisingly supported reform.
- The Pendleton Civil Service Act required at least 10% of government positions be filled by merit-based exams.
Tariffs Debate
- Tariffs are taxes on imported goods.
- High tariffs benefitted U.S. businesses by reducing foreign competition and raising profits.
- Consumers preferred low tariffs to keep prices down on goods, including imports.
- A Republican faction called "Mugwumps" broke away and supported Democrat Grover Cleveland, aiding his election.
Business Regulation and Trusts
- Cleveland supported reform and regulatory laws, including the Interstate Commerce Act of 1887, targeting railroad price gouging and creating the first federal regulatory board.
- Benjamin Harrison’s presidency saw the McKinley Tariff (then-record high tariff) and the Sherman Antitrust Act (early anti-monopoly law, though largely ineffective).
Gold vs. Silver Monetary Standard
- The gold standard meant only gold backed U.S. currency; businesses and banks favored this.
- "Free silver" supporters (farmers and many consumers) wanted both gold and silver as monetary backing, to increase money supply and ease debt.
- The Sherman Silver Purchase Act allowed a set amount of silver to back currency, partially satisfying silver supporters.
Key Terms & Definitions
- Patronage/Spoils System — Giving government jobs to political supporters.
- Civil Service Reform — Filling government jobs based on merit and exams, not loyalty.
- Tariff — Tax on imported goods, protecting domestic businesses.
- Stalwarts — Republicans who supported the patronage system.
- Half-Breeds — Republicans favoring civil service reform.
- Mugwumps — Reform-minded Republicans who supported Democrat Cleveland.
- Trust — Legal arrangement consolidating control of many companies, often forming monopolies.
- Sherman Antitrust Act — Early federal law aimed at breaking up monopolies.
- Gold Standard — Currency backed only by gold.
- Free Silver — Movement to include silver in monetary backing.
- Sherman Silver Purchase Act — Law allowing some silver to back U.S. currency.
Action Items / Next Steps
- Review details of the Pendleton Civil Service Act, the Interstate Commerce Act, and the Sherman Antitrust Act.
- Study the major arguments for and against high tariffs and the gold versus silver standards.