Political Corruption of the Gilded Age

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Political Corruption of the Gilded Age
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The Gold Thing

• Jim Fiske and Jay Gould attempted to corner gold
  market in 1869
• Persuaded Grant to order federal Treasury to stop
  selling gold.
• Fiske and Gould then bid price of gold upward.
• Treasury finally released gold and the bubble
  burst in 1869 (b/c of over-speculated/inflated
  value of gold similar to 1929 Stock Market
  Crash) --caused a financial panic, stock market
  depression, bankruptcies of Wall Street firms
• Congressional probe found Grant did nothing
  illegal but acted recklessly.

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The most infamous Boss Tweed Tammany Hall

• Led by Wm. Marcy Tweed, the Tweed Ring ran the
  Tammany Hall political machine
• Political machine definition an unofficial
  system of a political organization based on
  patronage, the spoils system, "behind-the-scenes"
  control, and longstanding political ties within
  the structure of a representative democracy
  typically led by a boss have a long-term group
  of dedicated workers who depend on the patronage
  generated by government contracts and jobs.
• Tweed used bribery, graft, fraudulent elections
  to gain about 200 mil at the expense of NYC
• NY Times exposed him in 1871. Cartoons by Nast
  most damaging to Tweed (esp. with illiterate
  masses)
• Nast was even offered a 100K bribe to "study art
  in Paris" so not to portray Tweed badly Nast
  refused despite even higher offers.
• Samuel Tilden prosecuted Tweed he was sent to
  jail where he died (Paved the way for Tildens
  presidential nomination in 1876)

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George Plunkitt Honest Graft

• Everybody is talkin these days about Tammany men
  growin rich on graft, but nobody thinks of
  drawin the distinction between honest graft and
  dishonest graft. Theres all the difference in
  the world between the two. Yes, many of our men
  have grown rich in politics. I have myself. Ive
  made a big fortune out of the game, and Im
  gettin richer every day, but Ive not gone in
  for dishonest graftblackmailin' gamblers,
  saloonkeepers, disorderly people, etc.and
  neither has any of the men who have made big
  fortunes in politics.
• Theres an honest graft, and Im an example of
  how it works. I might sum up the whole thing by
  sayin I seen my opportunities and I took em.
• Just let me explain by examples. My partys in
  power in the city, and its goin' to undertake a
  lot of public improvements. Well, Im tipped off,
  say, that theyre going to lay out a new park at
  a certain place.
• I see my opportunity and I take it. I go to that
  place and I buy up all the land I can in the
  neighborhood. Then the board of this or that
  makes its plan public, and there is a rush to get
  my land, which nobody cared particular for
  before.
• Aint it perfectly honest to charge a good price
  and make a profit on my investment and foresight?
  Of course, it is. Well, thats honest graft. Or
  supposin its a new bridge theyre goin to
  build. I get tipped off and I buy as much
  property as I can that has to be taken for
  approaches. I sell at my own price later on and
  drop some more money in the bank.
• Wouldnt you? Its just like lookin ahead in
  Wall Street or in the coffee or cotton market.
  Its honest graft, and Im lookin for it every
  day in the year. I will tell you frankly that
  Ive got a good lot of it, too.

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Credit Mobilier Scandal

• Insiders of the Union Pacific Railway formed
  Credit Mobilier --a railroad construction
  company.
• Hired themselves to build the railroad and paid
  themselves huge fees (like dividends of 348 to
  stockholders
• Distributed shares of stock to congressmen to
  avoid interference.
• In 1872 the charges confirmed by a Congressional
  investigation that censured two members the
  vice president
• Grants reputation tarnished although most
  corruption occurred before his presidency.

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Whiskey Ring Scandal

• In 1875, the press revealed a Whisky Ring had
  robbed millions in excise-tax revenues.
• Pres. Grant, said "Let no man escape
• Yet, one of Grants own cabinet members part of
  the scam. Grant persuaded the jury not to convict
  him.

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Indian Supply Scandal

• Secretary of War Belknap pocketed 24,000 for
  selling the privilege of disbursing supplies to
  Indians and then the supplies were often
  worthless.  
• The House of Representatives voted to impeach him
  and he resigned the same day.

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The Prompt

• How did politicians live under the shadow of
  Ulysses Grants presidency from 1876 to 1896?

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• Thesis Sample The scandals of the Grant
  administration made honesty in government a
  dominant political issue for an entire
  generation.
• What do you think??

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A Good Sample Paragraph

• After the scandals of the 1870s, the voters
  demanded honesty from their political leaders.
  When James Blain ran in 1884, he was portrayed as
  an imposter who tried to fool the people into
  believing he was a crusader or Plumed Knight.
  In fact, he had used his office for private gain
  (Doc A.)

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Contd

• Moreover, some political bosses tried to justify
  their misdeeds by saying there was difference
  between honest graft, which involved using
  insider information and did not hurt anyone
  specifically, and dishonest graft, which was
  practiced by those officials who took pay offer
  from saloon keepers and gamblers however, the
  voters rejected this distinction and demanded
  politicians protect the public interest rather
  than enrich themselves, as seen in the tremendous
  public sentiment against Boss Tweed (Doc B).

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Another prompt

• The industrialists of the last quarter of the
  19th c. were visionaries rather than robber
  barons. Assess the validity of this statement.

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Which thesis is BEST? Why?

• Industrialists like JD Rockefeller and A Carnegie
  did many good things and some bad things, but
  generally, they helped American become great.
• Men such as JD Rockefeller and A Carnegie should
  have shared their money with more people,
  including their workers.
• The trusts created by Rockefeller and Carnegie
  made America competitive internationally, but
  they exploited their workers and the American
  public.

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Write your own

• The industrialists of the last quarter of the
  19th c. were visionaries rather than robber
  barons. Assess the validity of this statement.