Glossary
"Crime of 1873"
The term used by silver advocates to describe the Coinage Act of 1873, which demonetized silver and officially placed the U.S. on the gold standard.
Example:
Western miners and indebted farmers denounced the "Crime of 1873", arguing that stopping silver coinage unfairly restricted the money supply and benefited wealthy creditors.
"Easy" Money
A monetary policy advocating for an increased money supply, typically through the coinage of silver or printing of paper money, to lower interest rates and make credit more accessible.
Example:
Farmers, burdened by debt, often supported an "easy" money policy, believing it would inflate crop prices and make it easier to repay their loans.
"Hard" Money
A monetary policy advocating for a restricted money supply, typically backed by gold, to maintain currency value and prevent inflation.
Example:
Bankers and creditors preferred a "hard" money policy, as it ensured that the money they were repaid had the same or greater purchasing power as the money they lent.
Bland-Allison Act of 1878
A federal law that required the U.S. Treasury to purchase and coin a limited amount of silver each month, in an attempt to increase the money supply.
Example:
As a compromise to the demands for unlimited silver coinage, the Bland-Allison Act of 1878 offered a partial solution, but it did not fully satisfy 'easy money' proponents.
Government Subsidies
Financial assistance or support extended by a government to an economic sector, business, or individual, often to promote specific activities or industries.
Example:
The vast government subsidies in the form of land grants given to railroad companies significantly accelerated the construction of the transcontinental railroad.
Greenback Party
A political party active in the late 19th century that advocated for the increased circulation of paper money (greenbacks) not backed by gold or silver.
Example:
The Greenback Party gained support from farmers and laborers who believed that more paper money would stimulate the economy and alleviate debt.
Interstate Commerce Act
The first federal law to regulate private industry, passed in 1887 to regulate railroad rates and practices across state lines.
Example:
Farmers, frustrated by unfair railroad pricing, pushed for the Interstate Commerce Act to ensure that shipping rates were 'reasonable and just' for all.
Interstate Commerce Commission (ICC)
The first independent federal regulatory agency, established by the Interstate Commerce Act to oversee railroad activities and ensure fair rates.
Example:
Though initially weak, the Interstate Commerce Commission represented a significant shift, marking the federal government's first attempt to regulate big business.
Laissez-faire
An economic philosophy advocating for minimal government intervention in the economy, believing that free markets will regulate themselves efficiently.
Example:
Many industrialists of the Gilded Age championed a laissez-faire approach, arguing that government interference would stifle innovation and economic growth.
Panic of 1873
A severe economic depression in the United States and Europe, triggered by over-speculation in railroads and industry, and a contraction of the money supply.
Example:
The Panic of 1873 led to widespread unemployment and business failures, intensifying debates over monetary policy and the gold standard.
Pendleton Act of 1881
A federal law that established the Civil Service Commission and introduced a merit-based system for federal employment, replacing the spoils system.
Example:
Following President Garfield's assassination by a disgruntled office seeker, the Pendleton Act of 1881 aimed to reduce political corruption by requiring competitive exams for government jobs.
Sherman Antitrust Act
A landmark 1890 federal law that outlawed monopolistic business practices and combinations that restrained trade or commerce.
Example:
Although initially weak, the Sherman Antitrust Act eventually became a tool to break up powerful industrial giants like Standard Oil, aiming to restore competition.
Social Darwinism
A controversial theory applying Darwin's concept of 'survival of the fittest' to human society and business, justifying wealth inequality and limited government aid to the poor.
Example:
Andrew Carnegie, despite his philanthropy, often invoked Social Darwinism to explain why some individuals amassed great wealth while others struggled, viewing it as a natural outcome of competition.
Specie Resumption Act of 1875
A federal law that officially returned the United States to the gold standard, requiring the government to redeem paper money for gold on demand.
Example:
The Specie Resumption Act of 1875 was a victory for 'hard money' advocates, but it angered debtors and farmers who feared it would lead to deflation and economic hardship.
Tariffs
Taxes imposed by a government on imported goods, primarily used to protect domestic industries from foreign competition.
Example:
During the Gilded Age, American manufacturers lobbied for high tariffs to make imported goods more expensive, ensuring consumers would buy their domestically produced items.
Trusts (Monopolies)
Large business combinations that gained control over entire industries, often by acquiring competing companies and forming a single, dominant entity.
Example:
John D. Rockefeller's Standard Oil created a powerful trust that controlled over 90% of the oil refining industry, eliminating competition and dictating prices.
United States v. E.C. Knight Co.
A 1895 Supreme Court case that severely limited the Sherman Antitrust Act's effectiveness by ruling that manufacturing was not subject to federal regulation of interstate commerce.
Example:
The United States v. E.C. Knight Co. decision was a major setback for antitrust efforts, as it allowed manufacturing monopolies to continue largely unchecked.
Wabash v. Illinois
A 1886 Supreme Court case that ruled states could not regulate interstate railroad rates, leading directly to the passage of the Interstate Commerce Act.
Example:
The Supreme Court's decision in Wabash v. Illinois highlighted the need for federal oversight, as individual states were powerless to control railroad monopolies operating across state lines.