Chapter 28: A New Decade
"The Great Panic was a death sentence to any sort of order in the halls of power. Mere hours after the New York Stock Exchange crashed, the blame came loudly and unfiltered towards the Republican controlled Congress. President Garfield was spared much of the initial blame, as he very quickly cleared house. Garfield fired hundreds in the Treasury Department within days and asked Secretary Windom to resign. Much to the dismay of the moderates in the party, Garfield mostly replaced them with populists like James Weaver and 'Federal Republicans' [1]. Secretary Hayes pretty violently opposed the President's early administrative reshuffle. The old man and his wing of the party began to clog up the system in the White House as a protest.
Hayes would frequently clash with Weaver. In May, Garfield requested that Hayes stay strictly in the State Department. Personally he obliged, privatley he began directing moderates in the Treasury to continue holding up any reform Weaver requested. The Republican Party by 1890 was a broad coalition. Made up of Midwesterners, frontiersmen, farmers, laborers and businessmen it was only kept together by a unified hate for the Redeemers. Since the 1880s, the moderates or 'Straight Republicans' started to realize that they were being outnumbered by the growing Populist movement. The Populists and laborers generally sided with the Republicans, especially after midwestern Republican Governors began taking assistance from the growing unions in the urban areas. The Republicans thus, gained a very loud and volatile electorate.
It is important to note that going into the Garfield term, both of these groups were attempting to banish the other into irrelevancy. Former Vice President Rutherford Hayes and Senator Benjamin Harrison led the Straight Republicans who generally had a lock among the politicians and Republican caucuses in congress. While James B. Weaver and Charles W. Macune led the Populists and Federal Republicans generally holding a majority of the Republican electorate. Over the last decade both factions distaste for one another only grew. The Populists saw the Straight Republicans as corrupt power broking dictators, holding a lock on the party. Straight Republicans saw Populists as uppity schoolboys too concerned with short term gratification to see the bigger picture.
President Garfield was neither a Straight or Federal, James Garfield had never been one for factionalism, he simply tried to do what he believed was the most correct course of action. In other words, Garfield meant to take both factions into heavy consideration when assembling his cabinet, passing laws and moving forward with plans.
The truth of the matter was clear however, no amount of reconciliation and compromise could stop the inevitable. If there was a major crisis the two factions of the Republicans would both try to exploit it to eliminate the other..."
-from Father Jimmy
by Thomas Alamo, published 1944
"The reaction to the Great Panic was painfully slow in Congress, the Democrats almost immediately preached about the foresight of Adlai Stevenson. Famously during the campaign in 88' the Democrats fear mongered about a violent economic collapse. It had come to pass, now they began pushing for their own reforms. The unfortunate thing for them though, was their small delegation in Congress. Realistically, the Democrats could do nothing but political theater for the coming elections.
The Liberals seeing the collapse, attacked the Republicans. They demanded bailouts, subsidies for businesses going under and interestingly, the establishment of a Third National Bank. (Something also apathetically supported by Federal Republicans.) The Republicans essentially held a majority in both houses though, again the Liberals would have little input in the actual policy to come, all they could do was watch and pick proposals apart from the sidelines.
That left only the Republicans themselves, plans and policy was radically different from one end of the caucus to another.
"MINT MORE SILVER!"
"TAKE THE DAMN SILVER FROM CIRCULATION!"
"SAVE THE FARMERS!"
"SAVE THE BANKS!"
"BAN TRUSTS!"
"ARE YOU MAD?!"
By early May, Secretary Weaver informed Congress that the Treasury was reaching a dangerously low gold reserve, in other words, the government was running out of money. A funding bill was drafted and rushed through the Senate. It then stalled in the House, after another week it seemed like the worst was upon them. Then, on the 22nd JP Morgan lended nearly 5 million dollars in gold to the Treasury. It wasn't amazing, but the reserve crisis was averted for now.
The Morgan bailout was very unpopular. Especially among the Populists, many, Weaver included believed that the funding bill was going to pass no matter what. Things were just so dire. Garfield however, saw the loan as the only option to buy himself some time. Many believe the President took the advice of Secretary Hayes in this decision. What was done was done, unfortunately the President now owed a massive favor to Morgan. He had been taken out of the ring.
A few weeks later, under the supervision of Weaver the Federal Republicans presented a bill to the House. 'The Silver Savior Bill' had support from Liberals, Democrats and Federal Republicans. A bill that would greatly advance the cause of the Free Silver Movement, Populists believed it would greatly alleviate the depression. The only problem was the Speaker... Thomas J. Henderson was a Straight Republican and an ally of Ben Harrison. Henderson ensured the bill would be halted in committee by flipping assignments last second. The bill was shot down and stagnated. The nation was shocked at the blatant power grab by the Straight Republicans. This was made worse days later when J. Donald Cameron the Senate Republican Chair was removed from his position by a majority vote of Straight Republicans for openly endorsing Free Silver. Cameron was himself generally a Straight Republican, but he was on the outs with Hayes... he was replaced by a loyalist in Cushman K. Davis of Minnesota.
With the leadership now secured and the Finance Committee in the House stacked, the Straight Republicans took their chance. They reshuffled every major committee in both houses on the 28th of June. The Populists were on the outs in leadership. A few days later there was a walkout at a Carnegie Steel plant on the 4th of July. After it ended in massacre and the Republican Ohio legislature made no comment tensions outside of Congress grew on the streets.
The fact that the Straight Republicans then refused to investigate the Slaughter on Independence Day only further inflamed tensions among workers. On July 6th, it is generally accepted by historians that many large Rail and Steel unions agreed to a future major strike.
The Federal Republicans tried one finally move for reconciliation with the Straight Republicans, the 'Thomas Antitrust Act' was drafted and submitted to the Senate. Meant to outlaw monopolies, it had almost no Liberal Support but did enjoy a base of support from the Democrats and Federals. Debate on the bill was filibustered, one of the first times a filibuster was used against a major bill. The Populists and Democrats almost had the votes to overcome the Filibuster. They were just two short. No one in the major three parties was willing to budge...
Lucky for them, there were two Senators from a third party...
The Freedmen Senators were courted by all sides in an attempt to make or break the bill. In the end they both voted against ending debate, killing the bill. Many speculate that monopolies like Standard Oil, Black Gold and Carnegie Steel made heavy use of lobbying against these two Senators.
A week after the death of the Thomas Act, Secretary Weaver and Postmaster LaFollete resigned, they both never mentioned Garfield in their open letters of resignation, they instead blamed Secretary Hayes, Speaker Henderson and the Senate Caucus Chair for preforming a coup de teat in the Republican Party and declared that they cannot work for the working man on the sidelines of the White House.
Once the resignations were made public tens of Congressmen and Senators left the Republican Party naming themselves independents and quickly forming a 'PEOPLE'S CAUCUS'. This new caucus left the door open for compromised but demanded basic respect before any negotiations could begin.
Garfield for his part, rushed to compromise. He desperately attempted to appeal to the Populists, taking on new Populist policies publicly and personally speaking to Weaver and other leaders. He was mostly ignored however. Garfield had made a serious mistake with the Morgan loan, Populist saw him as an empty suit, believing that his promises meant little, they would need to speak with Hayes, and Hayes was entirely uninterested in a meeting.
The President wrote in his diary, that he had never faced a more trying time and a more stressful affair. It is important to recognize that Mr. Garfield was truly doing all he could. Once again though FATE would test the resolve of these two factions. ON THE SECOND OF SEPTEMBER THE RAIL AND STEEL UNIONS LIT THE BEACONS... STRIKE, STRIKE, STRIKE!
-from THE HALLS OF POWER
by Kieren Hutchison, published 1999
[1]: A term for economically interventionist Republicans who aren't quite populists.
Hayes would frequently clash with Weaver. In May, Garfield requested that Hayes stay strictly in the State Department. Personally he obliged, privatley he began directing moderates in the Treasury to continue holding up any reform Weaver requested. The Republican Party by 1890 was a broad coalition. Made up of Midwesterners, frontiersmen, farmers, laborers and businessmen it was only kept together by a unified hate for the Redeemers. Since the 1880s, the moderates or 'Straight Republicans' started to realize that they were being outnumbered by the growing Populist movement. The Populists and laborers generally sided with the Republicans, especially after midwestern Republican Governors began taking assistance from the growing unions in the urban areas. The Republicans thus, gained a very loud and volatile electorate.
It is important to note that going into the Garfield term, both of these groups were attempting to banish the other into irrelevancy. Former Vice President Rutherford Hayes and Senator Benjamin Harrison led the Straight Republicans who generally had a lock among the politicians and Republican caucuses in congress. While James B. Weaver and Charles W. Macune led the Populists and Federal Republicans generally holding a majority of the Republican electorate. Over the last decade both factions distaste for one another only grew. The Populists saw the Straight Republicans as corrupt power broking dictators, holding a lock on the party. Straight Republicans saw Populists as uppity schoolboys too concerned with short term gratification to see the bigger picture.
President Garfield was neither a Straight or Federal, James Garfield had never been one for factionalism, he simply tried to do what he believed was the most correct course of action. In other words, Garfield meant to take both factions into heavy consideration when assembling his cabinet, passing laws and moving forward with plans.
The truth of the matter was clear however, no amount of reconciliation and compromise could stop the inevitable. If there was a major crisis the two factions of the Republicans would both try to exploit it to eliminate the other..."
-from Father Jimmy
by Thomas Alamo, published 1944
"The reaction to the Great Panic was painfully slow in Congress, the Democrats almost immediately preached about the foresight of Adlai Stevenson. Famously during the campaign in 88' the Democrats fear mongered about a violent economic collapse. It had come to pass, now they began pushing for their own reforms. The unfortunate thing for them though, was their small delegation in Congress. Realistically, the Democrats could do nothing but political theater for the coming elections.
The Liberals seeing the collapse, attacked the Republicans. They demanded bailouts, subsidies for businesses going under and interestingly, the establishment of a Third National Bank. (Something also apathetically supported by Federal Republicans.) The Republicans essentially held a majority in both houses though, again the Liberals would have little input in the actual policy to come, all they could do was watch and pick proposals apart from the sidelines.
That left only the Republicans themselves, plans and policy was radically different from one end of the caucus to another.
"MINT MORE SILVER!"
"TAKE THE DAMN SILVER FROM CIRCULATION!"
"SAVE THE FARMERS!"
"SAVE THE BANKS!"
"BAN TRUSTS!"
"ARE YOU MAD?!"
By early May, Secretary Weaver informed Congress that the Treasury was reaching a dangerously low gold reserve, in other words, the government was running out of money. A funding bill was drafted and rushed through the Senate. It then stalled in the House, after another week it seemed like the worst was upon them. Then, on the 22nd JP Morgan lended nearly 5 million dollars in gold to the Treasury. It wasn't amazing, but the reserve crisis was averted for now.
The Morgan bailout was very unpopular. Especially among the Populists, many, Weaver included believed that the funding bill was going to pass no matter what. Things were just so dire. Garfield however, saw the loan as the only option to buy himself some time. Many believe the President took the advice of Secretary Hayes in this decision. What was done was done, unfortunately the President now owed a massive favor to Morgan. He had been taken out of the ring.
A few weeks later, under the supervision of Weaver the Federal Republicans presented a bill to the House. 'The Silver Savior Bill' had support from Liberals, Democrats and Federal Republicans. A bill that would greatly advance the cause of the Free Silver Movement, Populists believed it would greatly alleviate the depression. The only problem was the Speaker... Thomas J. Henderson was a Straight Republican and an ally of Ben Harrison. Henderson ensured the bill would be halted in committee by flipping assignments last second. The bill was shot down and stagnated. The nation was shocked at the blatant power grab by the Straight Republicans. This was made worse days later when J. Donald Cameron the Senate Republican Chair was removed from his position by a majority vote of Straight Republicans for openly endorsing Free Silver. Cameron was himself generally a Straight Republican, but he was on the outs with Hayes... he was replaced by a loyalist in Cushman K. Davis of Minnesota.
With the leadership now secured and the Finance Committee in the House stacked, the Straight Republicans took their chance. They reshuffled every major committee in both houses on the 28th of June. The Populists were on the outs in leadership. A few days later there was a walkout at a Carnegie Steel plant on the 4th of July. After it ended in massacre and the Republican Ohio legislature made no comment tensions outside of Congress grew on the streets.
The fact that the Straight Republicans then refused to investigate the Slaughter on Independence Day only further inflamed tensions among workers. On July 6th, it is generally accepted by historians that many large Rail and Steel unions agreed to a future major strike.
The Federal Republicans tried one finally move for reconciliation with the Straight Republicans, the 'Thomas Antitrust Act' was drafted and submitted to the Senate. Meant to outlaw monopolies, it had almost no Liberal Support but did enjoy a base of support from the Democrats and Federals. Debate on the bill was filibustered, one of the first times a filibuster was used against a major bill. The Populists and Democrats almost had the votes to overcome the Filibuster. They were just two short. No one in the major three parties was willing to budge...
Lucky for them, there were two Senators from a third party...
The Freedmen Senators were courted by all sides in an attempt to make or break the bill. In the end they both voted against ending debate, killing the bill. Many speculate that monopolies like Standard Oil, Black Gold and Carnegie Steel made heavy use of lobbying against these two Senators.
A week after the death of the Thomas Act, Secretary Weaver and Postmaster LaFollete resigned, they both never mentioned Garfield in their open letters of resignation, they instead blamed Secretary Hayes, Speaker Henderson and the Senate Caucus Chair for preforming a coup de teat in the Republican Party and declared that they cannot work for the working man on the sidelines of the White House.
Once the resignations were made public tens of Congressmen and Senators left the Republican Party naming themselves independents and quickly forming a 'PEOPLE'S CAUCUS'. This new caucus left the door open for compromised but demanded basic respect before any negotiations could begin.
Garfield for his part, rushed to compromise. He desperately attempted to appeal to the Populists, taking on new Populist policies publicly and personally speaking to Weaver and other leaders. He was mostly ignored however. Garfield had made a serious mistake with the Morgan loan, Populist saw him as an empty suit, believing that his promises meant little, they would need to speak with Hayes, and Hayes was entirely uninterested in a meeting.
The President wrote in his diary, that he had never faced a more trying time and a more stressful affair. It is important to recognize that Mr. Garfield was truly doing all he could. Once again though FATE would test the resolve of these two factions. ON THE SECOND OF SEPTEMBER THE RAIL AND STEEL UNIONS LIT THE BEACONS... STRIKE, STRIKE, STRIKE!
-from THE HALLS OF POWER
by Kieren Hutchison, published 1999
-
Told you we have a lot to get to! I said I'd do the strike in this part, but it feels better to do it next time
Told you we have a lot to get to! I said I'd do the strike in this part, but it feels better to do it next time
[1]: A term for economically interventionist Republicans who aren't quite populists.
:max_bytes(150000):strip_icc()/pullman_strike_1894_ap469626824839-7d9b5d815d634a97820d274542b9955b.jpg "The 10 Biggest Strikes In U.S. History")
