The Role of Government in Economic and Political Affairs

Spoils & Pendleton

After the death of Lincoln, corruption grew in politicsGrants Presidency – the Credit Mobilier Scandal – involving government officials and stockholders in the Union Pacific Railroad

Many blamed the spoils system for the corruption

In 1881 a man assassinated James Garfield because he was not given a political position

Led to the passage of the Pendleton Act – established a Civil Service Commission that required applicants to pass a civil service exam before being considered for government positions

James Garfield Picture

The Rise of Political Machines

Corruption took place in state and local governments as well as the federal governmentThe rise of cities gave cause for increased performance of police & fire departments, transportation systems, public services, & sewage systems

This caused for public money to be more important in government

Political Machine – Led by a boss, these entities were meant to keep certain parties/groups in power

Boss Tweed Picture

Who’s the Boss?

The most notorious of all political bosses was Boss William Tweed

Tweed ran Tammany Hall – a political club that controlled the city’s Democratic party. Over time, Tweed stole over 100 million dollars from the city treasury

Eventually Tweed was exposed by the political cartoons of Thomas Nast

Tweed Cartoon

Government RegulationDuring 1884 Election – lack of trust in candidates, both seemed corrupt

Grover Cleveland admitted however to fathering a son out of wedlock – despite a social no-no, people respected his honesty in admitting

Many Radical Republicans switched sides to vote for Cleveland, they became known as mugwumpsCleveland passed the Interstate Commerce Act – regulated railroad ratesUnder Harrison, Congress passed the Sherman Anti-Trust Act – hoped to ensure competition by making monopolies illegal *Video 64*

Sherman Act Marker

United States v. EC Knight

What? – During Cleveland’s second term he used the Sherman Antitrust Act in attempt to prevent the EC Knight Company from maintaining a monopoly

Ruling? – Court ruled 8 – 1 that the government did have the authority to break up monopolies when it came to distribution of a product, however it could not break up the manufacturing of products

Populist ReformsCorruption helped to fuel the Populist Movement

1. Secret Ballot – also called an Australian ballot – simply meant that individual’s votes would be cast in secret

2. Referendum – political issues/debates decided by the will of the people

3. Recall – meant that people would have power to remove corrupt officials from office before their term expired *Video 205*

4. Initiative – people could force a vote on an issue if they provided enough signatures from registered voters

Recall in California Picture