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Reading 6.12
Controversies Over the Role of Government in the Gilded Age
| Term | Definition |
|---|---|
| Federal Land Grants | Large parcels of land gifted by the national government to states or businesses either as payment or in order to promote certain activities such as funding higher education. |
| Corruption | Dishonest or fraudulent conduct by those in power (often related to finances) that can greatly hurt the trust people have in their government. |
| Crédit Mobilier | Congressional controversy that involved a railroad company giving stocks to influential members of Congress to avoid investigation into illegal profits from government subsidies. |
| Interstate Commerce Act (1887) | Law that forbade price discrimination, prohibited other monopolistic practices and established the Interstate Commerce Commission to continually regulate railroad companies. |
| Railroad Rates | Fees charged by freight companies to move products by rail, which became regulated by the Interstate Commerce Commission after the monopolistic practices of the freight companies. |
| Sherman Antitrust Act (1890) | Law that outlawed monopolies, which was not actively enforced until the Progressive Era. |
| Antitrust Movement | Middle-class citizens feared the unchecked power and wealth of monopolies and campaigned for reform and government regulation. |
| United States v. E. C. Knight Co. | Landmark SCOTUS case that reduced the ability of the national government to regulate monopolies by ruling the Sherman Antitrust Act did not apply to manufacturing. |
| Assassination of President Garfield | Murder of President Garfield by a deranged office seeker, which pushed Congress to remove certain government jobs from the control of party patronage. |
| Pendleton Act of 1881 | Law that set up the Civil Service Commission and created a system by which applicants for classified federal jobs would be selected based on their performance on competitive exams. |
| Civil Service Commission | Government organization created by the Pendleton Act of 1881 and charged with administering competitive exams for classified government jobs. |
| Debtors | People who needed to borrow money and supported soft money because it would allow them to take out loans with lower interest rates and pay off their loans more easily with inflated dollars. |
| Soft Money | Currency that was not backed by gold, such as paper money (greenbacks) and was typically supported by debtors. |
| Panic of 1873 | Economic downturn caused by the overexpansion of railroads and overspeculation from financial institutions, which resulted in controversy over hard money versus soft money. |
| Creditors | People who lended money and supported hard money because dollars backed by gold would hold their value against inflation (make the money they already had worth more). |
| Hard Money | Currency backed by gold and typically supported by creditors. |
| Greenback Party | Political organization formed to support soft money, specifically greenbacks, and it achieved some success at the state and national level, but it fell apart by 1884. |
| Crime of 1873 | Congress siding with creditors during the Panic of 1873 by passing laws to remove greenbacks from circulation and stopping the coining of silver. |
| Bland-Allison Act (1878) | Compromise law over the money supply that allowed a limited amount of silver to be coined, but failed to appease debtors who continued to campaign for the unlimited coinage of silver. |
| Protective Tariffs | Taxes on imported goods levied in order to shield domestic manufacturers from foreign competition and promote domestic consumption of goods. |
| Consumers | Individuals who purchase goods and services and who are typically hurt economically by protective tariffs because of resulting higher prices of goods. |