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 Stanley K. Schultz, Professor of History William P. Tishler, Producer Lecture 04
The Gilded Age and the Politics of Corruption
The term "The Gilded Age" comes from a novel of the same name published in 1873 by Mark Twain and Charles Dudley Warner, which, though fictional, is a critical examination of politics and corruption in the United States
during the nineteenth century. This lecture explores how rampant economic
and political corruption colored American society and culture during the Gilded
Age. 
Some questions to keep in mind:
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How did the federal government transform the American
economy during the Gilded Age?
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Why was corruption so rampant in American politics during
this period? Was it worse than today? If so, why?
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Was there really any difference between the Republican and
Democratic parties at this time? If so, what?

The Gilded Age: A Tale of Today (1873)
A novel by Mark Twain and Charles Dudley Warner, which explores political
and economic corruption in the United States. The central characters,
Colonel Beriah Sellers and Senator Abner Dilworthy, are tied together in
a government railroad bribery scheme. Twain and Warner depict an American society that,
despite its appearance of promise and prosperity, is riddled with corruption and scandal.


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Samuel Langhorne Clemens (1835-1910) |
Copyright 1997 State Historical Society of Wisconsin
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Mark Twain
Samuel Langhorne Clemens (1835-1910), better known as Mark Twain, was one of America's
greatest nineteenth-century writers. Born in Hannibal, Missouri, he observed life
along the Mississippi River and later incorporated these insights into his fiction.
Clemens invested in several businesses but none prospered, and later in life he became
more cynical about American society as he spoke throughout the country. |

Two general themes caused tension during the Gilded Age:
- Laissez-faire "1: a doctrine opposing government interference in economic affairs
beyond the minimum necessary for the maintenance of peace and property rights." Source: Webster's Ninth New Collegiate Dictionary (1990).
- Concentration of power in the hands of the government at all levels - local, state, and
federal. Government during this period assumed more authority and power, especially
expanding its bureaucratic control and authority. Major areas of expansion of government
power included land policy, railroad subsidies, tax/tariff policy, immigration policy, and
Indian policy.
The Homestead Act
The Homestead Act (May 20, 1862) set in motion a program of public land grants to small
farmers. Before the Civil War, southern states had regularly voted against homestead
legislation because they predicted correctly that the law would hasten the settlement of
western territory, ultimately adding to the number and political influence of the free
states.
This opposition to the homestead bill, as well as to other
internal improvements that could hasten western settlement, exacerbated
sectional conflicts. Indeed, during the 1850s, many northern
politicians championed a vision of independent yeomen establishing homesteads on the prairies as a vivid contrast to the degradation of
slave labor on southern plantations. A homestead bill passed the House in 1858 but was
defeated by one vote in the Senate; the next year, a similar bill passed both houses but
was vetoed by President James Buchanan. In 1860, the Republican platform included a plank
advocating homestead legislation. After the southern states had seceded, homestead
legislation was high on the Republican agenda. The Homestead Act of 1862 provided that any
adult citizen (or person intending to become a citizen) who headed a family could qualify
for a grant of 160 acres of public land by paying a small registration fee and living on
the land continuously for five years. If the settler was willing to pay $1.25 an acre, he
could obtain the land after only six months' residence.
By the end of the Civil War, fifteen thousand homestead claims had been
established, and more followed in the postwar years. But the law did not provide the new
beginning for urban slum dwellers that some had hoped; few such families had the resources
to start farming, even on free land. The grants did give new opportunities to many
impoverished farmers from the East and Midwest, but much of the land granted under the
Homestead Act fell quickly into the hands of speculators. Also, over time, the growing
mechanization of American agriculture led to the replacement of individual homesteads with
a smaller number of much larger farms.
Source: Houghton Mifflin Co, The Reader's Companion to American History
(1991).
Transportation Revolution
"...Railroads could reach interior areas, including places where an inadequate water
supply or rough terrain made canals impossible. Unlike canals, which froze in winter or
became impassable when water was low, railroads ran year round, and they could easily
ascend and descend hills and mountains. Initially financed by municipal governments and
enterprising businessmen in river, lake, and ocean towns and cities, the first railroads
extended short distances into the interior to tap potential markets in the surrounding
countryside. Extension and connection of short lines soon provided uninterrupted
transportation over long distances. By 1840, the United States had almost three thousand
miles of track; by 1860, a network of thirty thousand miles linked most of the nation's
major cities and towns..."
Source: George Rogers Taylor, The
Transportation Revolution, 1815-1860 (1962). |


| Early view of the Illinois Central Railroad | Copyright 1997 State Historical Society of Wisconsin
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| Green Bay-Western locomotive #15, circa 1879 | Copyright 1997 State Historical Society of Wisconsin
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Pacific Railway Acts, 1862, 1864
The federal government passed the Pacific Railway Acts of 1862 and 1864 after the South seceded from the Union.
The acts enabled the United States government to make a direct grant of public land to private
corporations for the construction of a trans-continental railroad system. For every mile
of track laid, the government would grant to private railroad
corporations 20 sections of public land (12,800 acres)
which the corporation could do with as it saw fit. The federal government also guaranteed
payment of $48,000 for every mile of track constructed in mountainous terrain
and promised a 30 year subsidized loan at below-market interest rates.
The Union Pacific Railroad, built West from the Missouri
River, met the Central Pacific Railroad, which extended East from Sacramento, California.
The two railroad giants met at Promontory Point, Utah, in the spring of 1869. By 1890,
investors developed five
more trans-continental lines. |
Credit Mobilier
"The Credit Mobilier scandal of 1872-1873 damaged the careers of several Gilded Age
politicians. Major stockholders in the Union Pacific Railroad formed a company, the Credit
Mobilier of America, and gave it contracts to build the railroad. They sold or gave shares
in this construction to influential congressmen. It was a lucrative deal for the
congressmen, because they helped themselves by approving federal subsidies for the cost of
railroad construction without paying much attention to expenses, enabling railroad
builders to make huge profits. When the New York Sun broke the story on the eve of the 1872
election, Speaker of the House James G. Blaine, a Maine Republican implicated in the
scandal, set up a congressional committee to investigate."
Source: The Reader's Companion to American History (1991)


| James A. Garfield (1831-1881) | Copyright 1997 State Historical Society of Wisconsin
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James A. Garfield
(1831 - 1881) A Republican party leader during the nineteenth century who served as president in
1881. His record was marred by his unorthodox acceptance of a fee in the DeGolyer paving
contract case and by suspicions of his complicity in the Credit Mobilier scandal. Garfield
was assassinated after only a few months in office by Charles J. Guiteau, a disappointed
office seeker, on July 2, 1881.
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"The Bloody Shirt"
In the years following the Civil War, both the Democratic and Republican
parties were equally beholden to special interests.
Furthermore, neither party could gain control of American government. On the one
hand, Republicans dominated the presidency,
winning every presidential election between 1868-1912, interrupted only by the Democratic
administration of Grover Cleveland. Democrats, on the other hand, controlled Congress and
most state
legislatures.
Each party thus struggled to find political issues to distinguish it from
the other and to try to seize government power. From 1868 to 1880, the most common Republican campaign tactic was to wave the "Bloody
Shirt" to remind voters of the South's dishonor of seceding and causing the Civil
War. This tactic painted all Democrats as traitors to the Union.
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Robert Green Ingersoll
(1833-1899) Born in New York, Ingersoll was a lecturer, lawyer, and
politician. He began as a Democrat, but later switched his allegiance to the
Republican Party of Illinois. His most famous address was his nominating speech for James G. Blaine in 1876,
in which he dubbed Blaine
the "Plumed Knight."
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| James G. Blaine, the "Plumed Knight", Harper's cover art by Thomas Nast | Copyright 1997 State Historical Society of Wisconsin
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| Ulysses S. Grant (1822-1885) | Copyright 1997 State Historical Society of Wisconsin
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Ulysses S. Grant
A general and a political leader during and after the Civil War. He
served as commanding general of the
Union army and as
president from 1869 to 1877. While Grant, a Republican, was
president, economic and political corruption ran rampant. Many
historians, in fact, judge Grant's presidency as perhaps the most
corrupt in American History.
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| James Gillespie Blaine, the "Plumed Knight" (1830-1893) | Copyright 1997 State Historical Society of Wisconsin
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James Gillespie Blaine
(1830-1893) One of the most powerful men in the Republican party during the 1870s and
1880s. A member of the United States House of Representatives from 1862-1876, he served as
speaker from 1868 until he resigned to seek the Republican nomination for president. He
failed to receive the nomination in both 1876 and 1880 but was the Republican candidate in
1886, only narrowly defeated by Grover Cleveland.
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Mugwumps
Mugwumps were those Republicans who, refusing to support Blaine in the presidential
campaign of 1884, bolted the party and voted for Cleveland. The word, from the Algonquian
"mugwomp," was used in John Eliot's translation of the Bible to render the
English term "caption." It was later applied in United States political slang to any
independent voter.
Source: The Oxford Companion to American History (1966)


| Grover Cleveland (1837-1908) | Copyright 1997 State Historical Society of Wisconsin
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Grover Cleveland
Cleveland was born in Caldwell, New Jersey, on March 18, 1837. He was admitted to the bar in
Buffalo, New York, in 1859, and lived there as a lawyer and became active
in
Democratic politics. He did not participate in the Civil War. As
mayor of Buffalo in 1881, he carried through a reform program so ably that the Democrats
ran him successfully for governor in 1882. In 1884 he won the Democratic nomination for
President. |
The campaign contrasted Cleveland's spotless public career
with the uncertain record of James G. Blaine, the Republican candidate, and Cleveland
received enough Mugwump (independent Republican) support to win. As president, Cleveland
pushed civil service reform, opposed the pension grab and attacked the high tariff rates.
While in the White House, he married Frances Folsom in 1886. Renominated in 1888,
Cleveland was defeated by Benjamin Harrison, polling more popular but fewer electoral
votes. In 1892, he was elected over Harrison. When the Panic of 1893 burst upon the
country, Cleveland's attempts to solve it by sound-money measures alienated the
free-silver wing of the party, while his tariff policy alienated the protectionists. In
1894, he sent troops to break the Pullman strike. In foreign affairs, his firmness caused
Great Britain to back down in the Venezuelan border dispute.
In his last years Cleveland was an active and much-respected public figure. He died in
Princeton, N.J., on June 24, 1908.
Source: Houghton Mifflin Co, The Reader's Companion to American History
(1991).

Money may or may not be the root of all evil, but it certainly played a
major role in the politics of the Gilded Age. Of course, this money did not
appear out of thin air. Instead, the rise of the corporation drove Gilded
Age prosperity. The rise of American corporations during the second half of
the nineteenth century is an incredibly fascinating subject. So fascinating, in fact, that
it is the focus of our next lecture: Lecture 05: Businessmen
and "That Creature" the Corporation.
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