Presidential Politics, Tariffs, and Gold

Learning Objectives

  • Describe the political conflicts associated with the presidential campaigns and policies during the 1880s and 90s
  • Explain why Americans were split on the issue of a national gold standard versus free coinage of silver

An Assassin’s Bullet Sets the Stage for Civil Service Reform

An illustration shows Garfield leaning backward in pain with a crowd assisting him, while Guiteau struggles with several men in the background.

Figure 1. Garfield’s shooting and the subsequent capture of the assassin, Charles Guiteau, are depicted in this illustration for a newspaper of the day. The president clung to life for another two months after the assassination.

In the wake of President Hayes’ failure, Republicans began to battle over a successor for the 1880 presidential election. Initially, Stalwarts favored Grant’s return to the White House, while Half-Breeds promoted their leader, James Blaine. Following an expected convention deadlock, both factions agreed to a compromise presidential candidate, Senator James A. Garfield of Ohio, with Chester Arthur as his vice-presidential running mate. The Democratic Party turned to Winfield Scott Hancock, a former Union commander, and hero of the Battle of Gettysburg, as their candidate.

Garfield won a narrow victory over Hancock by forty thousand votes, although he still did not win a majority of the popular vote. But less than four months into his presidency, events pushed civil service reform on the fast track. On July 2, 1881, Charles Guiteau shot and killed Garfield, allegedly uttering at the time, “I am a Stalwart of Stalwarts!” Guiteau himself had wanted to be rewarded for his political support—he had written a minor publication for the Garfield campaign—with an ambassadorship to France. Although Guiteau was almost certainly mentally unwell, even hardened politicians could see that the spoils system bore part of the blame and required reform.

The Assassination of a President

I executed
the Divine command.
And Garfield did remove,
To save my party,
and my country
From the bitter fate of War.—Charles Guiteau

Charles Guiteau was a drifter and supporter of the Republican Party who had spent some time living with the Oneida community, attempting to start his own newspaper, and working as a lawyer and in bill collecting. But he gave a few speeches, to modest crowds, in support of the Republican nominee James Garfield, and ultimately deluded himself that his speeches influenced the country enough to result in Garfield’s victory. After the election, Guiteau immediately began pressuring the new administration, requesting a post as ambassador. When his queries went unanswered, Guiteau, out of money and angry that his supposed help had been ignored, planned to kill the president.

He spent significant time planning his attack and considered weapons as diverse as dynamite and a stiletto before deciding on a gun, stating, “I wanted it done in an American manner.” He followed the president around the Capitol and let several opportunities pass, unwilling to kill Garfield in front of his wife or son. Frustrated with himself, Guiteau recommitted to the plan and wrote a letter to the White House, explaining how this act would “unite the Republican Party and save the Republic.”

Guiteau shot the president from behind and continued to shoot until police grabbed him and hauled him away. He went to jail, and, the following November after Garfield died, he stood trial for murder. His poor mental health, which had been evident for some time, led to eccentric courtroom behavior that the newspapers eagerly reported and the public loved. He defended his case with a poem that used religious imagery and suggested that God had ordered him to commit the murder. He defended himself in court by saying, “The doctors killed Garfield, I just shot him.” While this in fact was true, it did not save him. Guiteau was convicted and hanged in the summer of 1882.

Take a look at America’s Story from the Library of Congress, which highlights the fact that Guiteau in fact did not kill the president, but rather an infection from his medical treatment did. You can also watch this story from CBS Sunday Morning to learn more about President Garfield’s death. If you’re still interested in learning more, the book, The Destiny of the Republic by Candice Millard, is an excellent read about the topic.

Arthur’s Civil Service Reform

Given his sordid history in machine politics, expectations for the new president, Chester Arthur, were low. Yet, to the surprise of Washington society, Chester Arthur immediately distanced himself from the Stalwarts. Although previously a loyal party man, Arthur understood that he owed his current position to no particular faction or favor. He was in the unique position to usher in a wave of civil service reform unlike any other political candidate, and he chose to do just that.

The circumstances of Garfield’s death made the urgency of civil service reform plain for all to see. In 1883, Arthur signed into law the Pendleton Civil Service Act, the first significant piece of antipatronage legislation. This law created the Civil Service Commission, which listed all government patronage jobs and then set aside 15 percent of the list as appointments to be determined through a competitive civil service examination process. Furthermore, to prevent future presidents from undoing this reform, the law declared that future presidents could enlarge the list but could never shrink it by moving a civil service job back into the patronage column.

Watch It

This video demonstrates how Pendleton’s law made strides in reforming civil service, but paradoxically made both parties more reliant on contributions from major industries.

You can view the transcript for “Pendleton’s Civil Service Reform Act” here (opens in new window).

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Tariffs in the Gilded Age

In addition to civil service, President Arthur also carried the reformist spirit into the realm of tariffs, or taxes on international imports to the United States. Tariffs had long been a controversial topic in the United States, especially as the nineteenth century came to a close. Legislators appeared to be bending to the will of big businessmen who desired higher tariffs in order to force Americans to buy their domestically produced goods rather than higher-priced imports. Lower tariffs, on the other hand, would reduce prices and lower the average American’s cost of living, and were therefore favored by many working-class families and farmers, to the extent that any of them fully understood such economic forces beyond the prices they paid at stores. Out of growing concern for the latter group, Arthur created the U.S. Tariff Commission in 1882 to investigate the propriety of increasingly high tariffs. Despite his concern, along with the commission’s recommendation for a 25 percent rollback in most tariffs, the most Arthur could accomplish was the “Mongrel Tariff” of 1883, which lowered tariff rates by barely 5 percent.

Such bold attempts at reform further convinced Republican Party leaders, as the 1884 election approached, that Arthur was not their best option to continue in the White House. Arthur quickly found himself a man without a party. As the 1884 election neared, the Republican Party again searched their ranks for a candidate who could restore some semblance of the spoils system while maintaining a reformist image. Unable to find such a man, the predominant Half-Breeds again turned to their own leader, Senator Blaine. However, when news of his many personal corrupt bargains began to surface, a significant portion of the party chose to break from the traditional Stalwarts-versus-Half-Breeds debate and form their own faction, the Mugwumps, a name taken from the Algonquin phrase for “great chief.”

The 1884 Election

Anxious to capitalize on the disarray within the Republican Party, as well as to return to the White House for the first time in nearly thirty years, the Democratic Party chose to court the Mugwump vote by nominating Grover Cleveland, the reform governor from New York who had built a reputation by attacking machine politics in New York City. Cleveland experienced a meteoric rise through the political ranks, having been elected as Mayor of Buffalo, then Governor of New York, and finally President of the United States within the space of only three years. Although Cleveland was well known for his dislike of graft and corruption, his personal life had hints of scandal. By his own admission, Cleveland had fathered a child out of wedlock, leading to Republican jeers of “Ma, Ma, where’s my Pa?”

As mentioned, the Republicans nominated James G. Blaine, the leader of the party’s Half-Breed faction. Blaine’s public image was the opposite of Cleveland’s: a personal life beyond reproach, but a reputation for tolerating graft and machine politics. Blaine’s campaign was ultimately sunk by one of his supporters, the nativist pastor Samuel Burchard. In the final days of the campaign, Burchard excoriated Democrats as the party of “Rum, Romanism, and Rebellion,”—that is, intemperance, Catholicism, and the Civil War. Angry New York Catholics turned out in force to vote for Cleveland, tipping the state, and thus the election to him by a thin margin of 1,100 votes.

President Cleveland

Cleveland’s record on civil service reform added little to the initial blows struck by President Arthur. After all, having been shut out of the White House since James Buchanan left office in 1861, Democrats were eager to assume their share of the spoils system for the first time in a generation. Cleveland was, however, a notable reform president in terms of business regulation and tariffs. When the U.S. Supreme Court ruled in 1886 that individual states could not regulate interstate transportation, Cleveland urged Congress to pass the Interstate Commerce Act of 1887. Among several other powers, this law created the Interstate Commerce Commission (ICC) to oversee railroad prices and ensure that they remained reasonable to all customers. This was an important shift.

In the past, railroads had granted special rebates to big businesses, such as John D. Rockefeller’s Standard Oil, while charging small farmers with little economic muscle exorbitant rates. Although the act eventually provided for real regulation of the railroad industry, initial progress was slow due to the lack of enforcement power held by the ICC. Despite its early efforts to regulate railroad rates, the U.S. Supreme Court undermined the commission in Interstate Commerce Commission v. Cincinnati, New Orleans, and Texas Pacific Railway Cos. in 1897. Rate regulations were limits on profits that, in the opinion of a majority of the justices, violated the Fourteenth Amendment protection against depriving persons of their property without due process of the law.

As for tariff reform, Cleveland agreed with Arthur’s position that tariffs remained far too high and were clearly designed to protect big domestic industries at the expense of average consumers who could benefit from international competition. While the general public applauded Cleveland’s efforts at both civil service and tariff reform, influential businessmen and industrialists remained adamant that the next president must restore the protective tariffs at all costs.

The 1888 Election: Benjamin Harrison

To counter the Democrats’ re-nomination of Cleveland in 1888, the Republican Party turned to Benjamin Harrison, grandson of former president William Henry Harrison. Although Cleveland narrowly won the overall popular vote, Harrison rode the influential coattails of several businessmen and party bosses to win the key electoral states of New York and New Jersey, where party officials stressed Harrison’s support for a higher tariff, and thus secure the White House. Not surprisingly, after Harrison’s victory, the United States witnessed a brief return to higher tariffs and a strengthening of the spoils system. In fact, the McKinley Tariff raised some rates as much as 50 percent, which was the highest tariff in American history to date.

Some of Harrison’s policies were intended to offer relief to average Americans struggling with high costs and low wages but remained largely ineffective. First, the Sherman Anti-Trust Act of 1890 sought to prohibit business monopolies as “conspiracies in restraint of trade,” but it was seldom enforced during the first decade of its existence. Second, the Sherman Silver Purchase Act of the same year required the U.S. Treasury to mint over four million ounces of silver into coins each month to circulate more cash into the economy, raise prices for farm goods, and help farmers pay their way out of debt. But the measure could not undo the previous “hard money” policies that had deflated prices and pulled small-scale farmers into well-entrenched cycles of debt. Other measures proposed by Harrison intended to support Black Americans, including a Force Bill to protect voters in the South as well as an Education Bill designed to support public education and improve literacy rates, also met with defeat.

Monetary Policies and the Issue of Gold vs. Silver

Although political corruption, the spoils system, and the question of tariff rates were popular discussions of the day, Americans who toiled in factories and farms were more concerned about the value of a dollar. This often took the form of an ongoing debate of gold versus silver coinage. There had been frequent attempts to establish a bimetallic standard, which in turn would have created inflationary pressures and placed more money into circulation that could have subsequently benefitted farmers. But the government remained committed to the gold standard, including the official demonetizing of silver altogether in 1873. Such a stance greatly benefitted prominent businessmen engaged in foreign trade while forcing more farmers and working-class Americans into greater debt as the money supply grew ever more constricted.

A poster shows a happy worker and child on the left, with a factory in the background and the label “Bimetalism, 1872.” On the right, a poor worker is shown with his wife and child; all appear emaciated and wear tattered clothes. Behind them is a fenced-off factory with a sign reading “This Factory is Closed on Account for a Lack of Funds.” A label reads “Monometalism, 1894.” Between the images, a young boy in a suit stands upon a block labeled “Silver,” with the words “Take Your Choice.”

Figure 2. This cartoon illustrates the potential benefits of a bimetal system, but the benefits did not actually extend to big business, which preferred the gold standard and worked to keep it.

As farmers and working-class Americans sought the means by which to pay their bills and other living expenses, especially in the wake of increased tariffs as the century came to a close, many saw adherence to a strict gold standard as their most pressing problem. With limited gold reserves, the money supply remained constrained. At a minimum, returning to a bimetallic policy that would coin both gold and silver would provide some relief. However, the aforementioned Sherman Silver Purchase Act was largely ineffective to combat the growing debts that many Americans faced. Under the law, the federal government purchased 4.5 million ounces of silver on a monthly basis in order to mint silver dollars. However, many investors exchanged the bank notes with which the government purchased the silver for gold, thus severely depleting the nation’s gold reserve. Fearing the latter, President Grover Cleveland signed the act’s repeal in 1893. This lack of meaningful monetary measures from the federal government would lead one group in particular who required such assistance—American farmers—to attempt to take control over the political process itself.

Watch IT

To better understand what is meant by the “gold standard”, watch this video and see how that compares with the current monetary system in the U.S.

You can view the transcript for “What is the Gold Standard?” here (opens in new window).

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Glossary

mugwumps: a portion of the Republican Party that broke away from the Stalwart-versus-Half-Breed debate due to disgust with their candidate’s corruption

bimetallism: the policy whereby the government coins two metals rather than one. This will usually increase the money supply and trigger inflation.