Political Corruption during the Gilded Age (College Board AP® US History)

Summary

During the Gilded Age, the federal government took a laissez-faire, hands-off approach to the economy. This also resulted in political corruption becoming widespread. Key elements of this corruption included the rise of political machines, patronage systems, and monopolies. Farmers and working-class Americans faced growing inequality, sparking movements like the Populist Party. Meanwhile, debates over tariffs revealed deep divisions between industrial and agricultural interests.

Patronage, Tariffs, & the Populist Party

Patronage

• Patronage is the practice of giving government jobs or other benefits to loyal party members and campaign contributors, regardless of their qualifications

• This system of rewarding political loyalty over merit created a corrupt political environment where patronage appointments often led to inefficiency and fraud

• President James Garfield was assassinated in 1881 by Charles Guiteau, a disappointed office-seeker who had been denied a federal position through patronage

  • This event highlighted the dangerous effects of the patronage system

• The Pendleton Act of 1883 dissolved the patronage system in response to Garfield’s assassination

  • It said that federal employees now had to be qualified and pass competitive exams to achieve government positions

Tariffs

• Tariffs are taxes on imported goods to protect domestic industries and generate revenue for the government

• The economic impacts of US tariffs are that they:

  • protect American industries by making imported goods more expensive, encouraging consumers to buy American-made products

  • expand foreign markets for US products

• Tariffs were seen as a heavy burden on Americans who relied on imported goods, especially farmers 

  • Farmers suffered because tariffs on imported goods raised the price of essential goods and lowered the profits from their crops

    • This led to increased calls for tariff reform, especially from farmers who wanted lower tariffs to reduce their expenses

Populist Party

• The Populist Party, also known as the People’s Party, was a political movement supported mainly by farmers who sought political fairness and economic equality

  • It aimed to address the financial struggles of the agricultural sector, which was severely impacted by the economic policies of the Gilded Age

  • This included:

    • high tariffs

    • the Gold Standard

    • the monopolistic practices of big businesses

• Their key goals formed the Omaha Platform (1892) proposal. This included:

  • the direct election of senators

    • This was a response to concerns about corruption and political influence, especially from wealthy elites

    • Senators were chosen by state legislation at the time, which often led to bribery and political favors

  • graduated income tax

    • A tax system where wealthier Americans would pay a higher percentage of their income in taxes

    • This aimed to reduce income inequality

  • unlimited coinage of silver

    • This would increase the money supply and inflation helping farmers in debt by reducing the real value of their debts

    • Many farmers were struggling under policies tied to the Gold Standard

• The Populist Party stressed the needs and concerns of farmers, advocating for economic reform to improve the financial situation of rural America

• Although the Populist Party did not win the presidency or have sustained political power, many of their proposals influenced future policies

  • Some of the Populist Party’s concerns about monopolies, banking practices, and worker rights were addressed in later Progressive Era reforms

Political Machines

• Political Machines were organized groups in urban areas that controlled local governments, often through corrupt means

  • These were led by political “bosses” who organized political power in a city or town through patronage, bribery, and manipulation

• Political Machines had a variety of tactics

  • Recruitment of voters

    • Machines particularly targeted immigrants, offering them jobs, money, or other favors in exchange for voting for the Machine’s candidates 

  • Political patronage

    • In exchange for votes, Political Machines would give jobs, housing, and legal assistance

    • This created a system of dependence and loyalty

  • Corruption

    • Machines often used fraudulent practices such as election rigging, bribery, embezzlement of public monies, and other crimes

Example of a Political Machine

Tammany Hall

• One of the most significant Political Machines Tammany Hall was located in New York City

• It was a powerful democratic political organization that controlled city politics through patronage and corruption

• Boss Tweed (William M. Tweed) was the head of Tammany Hall, he:

  • participated in corruption, bribery, election tampering, and other illegal activities

  • embezzled millions of dollars from the city treasury

  • was arrested and convicted after his crimes were exposed by journalists

• Even after his conviction, Tweed was able to regain some influence due to the strength of Tammany Hall’s political machine

• Political machines undermined democratic processes and increased political corruption

• They maintained their influence for decades, especially in urban areas