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Oil has been used since the Ancient Greeks learned to pour it into the sea and then set fire to it in order to defend against attacking fleets of ships.  Noah may have used thick oil (called "pitch") to waterproof Noah's ark.  Moses' basket may have been made waterproof using oil, just as American Indians used it to waterproof canoes.<ref name="Oil">http://www.seed.slb.com/qa2/FAQView.cfm?ID=906</ref>

Oil has been used since the Ancient Greeks learned to pour it into the sea and then set fire to it in order to defend against attacking fleets of ships.  Noah may have used thick oil (called "pitch") to waterproof Noah's ark.  Moses' basket may have been made waterproof using oil, just as American Indians used it to waterproof canoes.<ref name="Oil">http://www.seed.slb.com/qa2/FAQView.cfm?ID=906</ref>

But the first modern oil well was in Pennsylvania, when Colonel Edwin L. Drake drilled down 72 feet near Titusville (just east of Pittsburgh) and struck "Oil Creek."  Oil production there started in 1859.  That oil sold for $40 a barrel then, compared with about $100 now.  But because a dollar was worth far more in 1859 than today, oil was more expensive then.  Oil was first used for medicine, as there were no cars then.<ref name="Oil"/>

But the first modern oil well was in Pennsylvania, when Colonel Edwin L. Drake drilled down 72 feet near Titusville (just east of Pittsburgh) and struck "Oil Creek."  Oil production began there in 1859.  That oil sold for $40 a barrel then, compared with about $100 now.  But because a dollar was worth far more in 1859 than today, oil was more expensive then.  Oil was first used for medicine, as there were no cars then.<ref name="Oil"/>

A devout Christian who abandoned public high school before finishing,<ref>When John D. Rockefeller later had children of his own, he and his wife homeschooled them until age ten. http://www.associatedcontent.com/article/44035/john_d_rockefeller_jr.html</ref> John D. Rockefeller had just started his first job a few years earlier.  He developed a tremendous work ethic, and was immediately attracted to the discovery of oil in 1859.  He quickly entered the business and worked with an inventor who knew how to cheaply refine the oil into something usable.  By 1870 Rockefeller founded Standard Oil Company, and then began pursuing highly aggressive business tactics to drive out competitors and consolidate his control (monopolize the industry).<ref name="Rockefeller">http://www.u-s-history.com/pages/h957.html</ref>   

A devout Christian who abandoned public high school before finishing,<ref>When John D. Rockefeller later had children of his own, he and his wife homeschooled them until age ten. http://www.associatedcontent.com/article/44035/john_d_rockefeller_jr.html</ref> John D. Rockefeller had just started his first job a few years earlier.  He developed a tremendous work ethic, and was immediately attracted to the discovery of oil in 1859.  He quickly entered the business and worked with an inventor who knew how to cheaply refine the oil into something usable.  By 1870 Rockefeller founded Standard Oil Company, and then began pursuing highly aggressive business tactics to drive out competitors and consolidate his control (monopolize the industry).<ref name="Rockefeller">http://www.u-s-history.com/pages/h957.html</ref>   

In 1882, Rockefeller formed a new type of business entity called the "trust", and named it the Standard Oil Trust of Ohio.  But ten years later a decision by the Ohio Supreme Court forced him to break up his Trust into 20 smaller businesses.  In 1899 he formed a holding company for all his businesses in the name of Standard Oil Company of New Jersey.  By 1911 it controlled an astounding 95% of the entire oil industry, but then the U.S. Supreme Court forced Rockefeller to break up it up into smaller pieces and separately controlled companies, one of which became Exxon.  Rockefeller then retired and devoted the remainder of his long life to philanthropy (giving away his money to charitable causes).<ref name="Rockefeller"/>

In 1882, Rockefeller formed a new type of business entity called the "trust", and named it the Standard Oil Trust of Ohio.  But ten years later a decision by the Ohio Supreme Court forced him to break up his Trust into 20 smaller businesses.  In 1899 he formed a holding company for all his businesses in the name of Standard Oil Company of New Jersey.  By 1911 it controlled an astounding 95% of the entire oil industry, but then the U.S. Supreme Court forced Rockefeller to break up it up into smaller pieces and separately controlled companies, one of which became Exxon.  Rockefeller then retired and devoted the remainder of his long life to philanthropy (giving away his money to charitable causes).<ref name="Rockefeller"/>

Rockefeller became perhaps the wealthiest man in the history of the world.  Predictably, people became jealous and his competitors sometimes lost their businesses.  Many politicians became determined to break up his huge company, and many critics accused him or his employees of engaging in illegal activities, even bribes, to build his business empire.  But other industries began to follow his example, and large industrial companies formed "trusts" (a type of monopoly) to control sugar, lead, beef and even whiskey.   

Rockefeller became perhaps the wealthiest man in the history of the world.  Predictably, people grew jealous of him, and his competitors sometimes lost their businesses.  Many politicians were determined to break up his huge company, and many critics accused him or his employees of engaging in illegal activities, even bribes, to build his business empire.  But other industries began to follow his example, and large industrial companies formed "trusts" (a type of monopoly) to control sugar, lead, beef and even whiskey.   

Congress ultimately passed the Sherman Antitrust Act to prohibit monopolization and "restraint of trade," or interference with competition, in 1890.  This law was sponsored by Senator John Sherman of Ohio (a candidate for the Republican presidential nomination in 1880 and the brother of General William Sherman).  The Sherman Antitrust Act was not what broke up Rockefeller's oil empire, because in 1895 the Supreme Court weakened the law by upholding a powerful Sugar Trust, in ''U.S. v. Knight Co.''  The Sugar Trust controlled 98% of the sugar market, and the Supreme Court allowed it to continue.  Despite being weakened, the Sherman Antitrust Act remains a very important law that is used frequently today.

Congress ultimately passed the Sherman Antitrust Act to prohibit monopolization and "restraint of trade," or interference with competition, in 1890.  This law was sponsored by Senator John Sherman of Ohio (a candidate for the Republican presidential nomination in 1880 and the brother of General William Sherman).  The Sherman Antitrust Act was not what broke up Rockefeller's oil empire, because in 1895 the Supreme Court weakened the law by upholding a powerful Sugar Trust, in ''U.S. v. Knight Co.''  The Sugar Trust controlled 98% of the sugar market, and the Supreme Court allowed it to continue.  Despite being weakened, the Sherman Antitrust Act remains a very important law that is used frequently today.

The controversy about Rockefeller and monopolies divides free enterprise thinkers.  Some insist that the free market itself will correct break up monopolies if appropriate.  Others say that monopolies are an impediment to free market competition and should be broken up by the government.

The controversy about Rockefeller and monopolies divides free enterprise thinkers.  Some insist that the free market itself will cause the breakup of monopolies as appropriate.  Others say that monopolies are an impediment to free market competition and should be broken up by the government.

'''Debate:  Should government break up monopolies?'''

'''Debate:  Should government break up monopolies?'''

Good or bad, Rockefeller was part of a huge economic boom that began before the end of Reconstruction in 1877 and continued through 1900.  There was a massive increase in America's "gross domestic product," which is the total output (in dollars) of all the goods and services produced by labor and property located our country.  It is basically how much our entire country is producing, valued in dollars.  When we are prosperous it increases, and when we are in a depression it goes down or does not increase as much.

Rockefeller was part of a huge economic boom that began before the end of Reconstruction in 1877 and continued through 1900.  There was a massive increase in America's "gross domestic product," which is the total output (in dollars) of all the goods and services produced by labor and property located our country.  It is basically how much our entire country is producing, valued in dollars.  When we are prosperous it increases, and when we are in a depression it goes down or does not increase as much.

By the late 1800s the wealthiest city in the United States was Williamsport, Pennsylvania, which was the center of the profitable lumber industry.  Now it is best known for hosting the Little League World Series!

By the late 1800s the wealthiest city in the United States was Williamsport, Pennsylvania, which was the center of the profitable lumber industry.  Now it is best known for hosting the Little League World Series!

He described the era towards the end of the 1880s as "gilded" because it appeared golden, but beneath the shiny surface was greed, corruption and hardship.  Mark Twain wrote a novel by that name in which Washington, D.C. was run by greedy businessmen and corrupt government officials.  (Mark Twain wrote several other influential novels, including "The Adventures of Huckleberry Finn," describing a fictional journey on a raft on the Mississippi).   

He described the era towards the end of the 1880s as "gilded" because it appeared golden, but beneath the shiny surface was greed, corruption and hardship.  Mark Twain wrote a novel by that name in which Washington, D.C. was run by greedy businessmen and corrupt government officials.  (Mark Twain wrote several other influential novels, including "The Adventures of Huckleberry Finn," describing a fictional journey on a raft on the Mississippi).   

The Gilded Age featured "robber barons," who were people who became extremely wealthy through ruthless business practices.  The worst"“robber baron" was Jay Gould, a financier on Wall Street who committed rampant fraud by printing false stock certificates to defraud investors.  He even tried to corner the gold market in 1869.  That led to a financial panic known as Black Friday.  After Gould drove up the price of gold by hoarding it, President Grant learned of the scheme and started selling the government gold reserves on the market to cause the price to fall.  The price of gold then fell sharply, and many lost everything they had.  Gould, however, had sold out at the highest price to make the biggest profit!

The Gilded Age featured "robber barons," who were people who became extremely wealthy through ruthless business practices.  The worst "robber baron" was Jay Gould, a financier on Wall Street who committed rampant fraud by printing false stock certificates to defraud investors.  He even tried to corner the gold market in 1869.  That led to a financial panic known as Black Friday.  After Gould drove up the price of gold by hoarding it, President Grant learned of the scheme and started selling the government gold reserves on the market to cause the price to fall.  The price of gold then fell sharply, and many lost everything they had.  Gould, however, had sold out at the highest price to make the biggest profit!

There were also phenomenal successes during this era.  Andrew Carnegie, immigrated from Scotland without any money and ended up with massive wealth from founding the Carnegie Steel Co. (later became U.S. Steel Co.).  He amassed a fortune that he then donated to build structures like Carnegie Hall, Carnegie-Mellon University, and the enormous New York Public Library (plus 2800 other public libraries).  He wrote the "Gospel of Wealth" in 1900 to describe his vision of capitalism.

There were also phenomenal successes during this era.  Andrew Carnegie immigrated from Scotland without any money and ended up with massive wealth from founding the Carnegie Steel Co. (later became U.S. Steel Co.).  He amassed a fortune that he then donated to build structures like Carnegie Hall, Carnegie-Mellon University, and the enormous New York Public Library (plus 2800 other public libraries).  He wrote the "Gospel of Wealth" in 1900 to describe his vision of capitalism.

'''Debate:  it wasn't the "Gilded Age," it was the "Golden Age!"  Agree?'''

'''Debate:  it wasn't the "Gilded Age," it was the "Golden Age!"  Agree?'''

<br>

<br>

'''Debate:  do you support "caveat emptor," or government regulation of monopolies and robber barons?'''

'''Debate:  do you support "caveat emptor," or do you prefer government regulation of monopolies and robber barons?'''

== Bimetallism ==

== Bimetallism ==

Under the Grant Administration, gold was the only standard for money:  debts were payable in gold, and paper money could be exchanged at any time for a fixed amount of gold.  This prevented inflation because the amount of gold in the world was small and nearly constant.

Under the Grant Administration, gold was the basis for money:  debts were payable in gold, and paper money could be traded in at any time for a fixed amount of gold.  This prevented inflation because the amount of gold in the world was small and nearly constant.

But from about 1878 to the end of the century there was strong pressure to return the nation's standard for money to Alexander Hamilton's "bimetallism", under which money and debts were based on two metals rather than one (gold and silver).  With gold as the standard, advocating "bimetallism" meant adding a silver standard to the gold standard.   

But from about 1878 to the end of the century there was strong pressure to return the nation's standard for money to Alexander Hamilton's "bimetallism", under which money and debts were based on two metals rather than one (gold and silver).  With gold as the standard, advocating "bimetallism" meant adding a silver standard to the gold standard.   

Westerns and Southerners arranged for passage of the Bland-Allison Act in 1878, which required the government to purchase $2-4 million worth of silver each month.  In addition, a bill passed (over President Rutherford Hayes' veto) allowing for the free and unlimited coinage by the government of silver, such as silver dollars, at a ratio of 16 to 1 relative to gold.  The government began minting silver dollars that are collectors' items today (and worth much more than one dollar now).

Westerns and Southerners arranged for passage of the Bland-Allison Act in 1878, which required the government to purchase $2-4 million worth of silver each month.  In addition, a bill passed (over President Rutherford Hayes' veto) allowing for the free and unlimited coinage by the government of silver, such as silver dollars, at a ratio of 16 to 1 relative to gold.  The government began minting silver dollars that are collectors' items today (and worth much more than one dollar now).

But the price of silver fell as more was mined, because more of something usually means it is less valuable.  The monthly government purchases declined also.  Deflation continued for the next ten years.  $100 in 1878 was equivalent to only $84.43 in 1890.  Imagine that!  Deflation is devastating to farmers, as their income from goods decreases and their debts grow higher in real value.

But the price of silver fell as more was mined, because more of something usually means it is less valuable.  The monthly government purchases declined also.  Deflation continued for the next ten years.  $100 in 1878 was equivalent to only $84.43 in 1890.  Imagine that!  Deflation is devastating to farmers, as their income from milk and beef and other farm products decreases, while their debts grow higher in real value.

Westerners wanted more silver purchased, and the debtors and farmers wanted inflation.  They forced passage of the Sherman Silver Purchase Act in 1890, which required even greater purchases by the government of silver.  The Silver Purchase Act required the government to issue notes (like large-denomination dollar bills) to purchase 4.4 million ounces of silver each month, regardless of its value in dollars.  The bill passed in a compromise with the Northerners, who obtained a high tariff at the same time through passage of the McKinley Tariff Bill.

Westerners wanted more silver purchased, and the debtors and farmers wanted inflation.  They forced passage of the Sherman Silver Purchase Act in 1890, which required even greater purchases by the government of silver.  The Silver Purchase Act required the government to issue notes (like large-denomination dollar bills) to purchase 4.4 million ounces of silver each month, regardless of its value in dollars.  The bill passed in a compromise with the Northerners, who obtained a high tariff at the same time through passage of the McKinley Tariff Bill.

But the notes used to buy the silver each month were redeemable in gold, which was more valuable than the increasingly plentiful silver.  So pretty soon the public was demanding gold from the government in return for these new notes.  This created a "run" on the government's gold reserves of our nation, with its total supply falling below $100 million and headed quickly towards zero.

The paper notes used to buy the silver each month were redeemable in gold, which was more valuable than the increasingly plentiful silver.  So pretty soon the public was demanding gold from the government in return for these new notes.  This created a "run" on the government's gold reserves of our nation, with its total supply falling below $100 million and headed quickly towards zero.

This became the Panic of 1893, and the Silver Purchase Act was repealed in order to stop the run on gold.  An immensely wealthy Wall Street banker, J.P. Morgan, arranged for more gold to be imported from Europe to protect the government reserves.  The "run" on the government's gold reserves then stopped.

This became the Panic of 1893, and the Silver Purchase Act was repealed in order to stop the run on gold.  An immensely wealthy Wall Street banker, J.P. Morgan, arranged for more gold to be imported from Europe to protect the government reserves.  The "run" on the government's gold reserves then stopped.

:If they dare to come out in the open field and defend the gold standard as a good thing, we shall fight them to the uttermost, having behind us the producing masses of the nation and the world. Having behind us the commercial interests and the laboring interests and all the toiling masses, we shall answer their demands for a gold standard by saying to them, you shall not press down upon the brow of labor this crown of thorns. You shall not crucify mankind upon a cross of gold.

:If they dare to come out in the open field and defend the gold standard as a good thing, we shall fight them to the uttermost, having behind us the producing masses of the nation and the world. Having behind us the commercial interests and the laboring interests and all the toiling masses, we shall answer their demands for a gold standard by saying to them, you shall not press down upon the brow of labor this crown of thorns. You shall not crucify mankind upon a cross of gold.

Reporters wrote that Bryan's remarkable speaking style for this speech "came like one great burst of artillery" and that "some, like demented things, divested themselves of their coats and flung them high in the air."  Bryan was then selected by the delegates who heard this speech as the Democratic nominee for president on the next day.<ref name="Cross of Gold"/>

Reporters wrote that Bryan's remarkable speaking style for this speech "came like one great burst of artillery" and that "some, like demented things, divested themselves of their coats and flung them high in the air."  Bryan was then selected on the next day, by the delegates who heard his speech, as the Democratic nominee for president.<ref name="Cross of Gold"/>

== Unions and Immigrant Workers ==

== Unions and Immigrant Workers ==

As the American economy grew, and businesses became more profitable, workers began to band together and "unionize" (create "unions").  A union is a group of workers at a factory or business who join together in order to negotiate better wages and working conditions.  They acquire power in joining together, and they threaten to strike if the owner does not give in to their demands.  In the early 1800s there were no unions and no strikes, but by the late 1800s workers began to see that they could increase their wages and improve their conditions by forming unions and threatening to strike.  Today, Wal-Mart does everything it can to keep its workers from unionizing, and union organizations despise it for that reason.

As the American economy grew, and businesses became more profitable, workers began to band together and "unionize" (create "unions").  A union is a group of workers at a factory or business who join together in order to negotiate better wages and working conditions.  They acquire power by banding together, and they threaten to strike if the owner does not give in to their demands.  In the early 1800s there were no unions and no strikes, but by the late 1800s workers began to see that they could increase their wages and improve their conditions by forming unions and threatening to strike.  Today, Wal-Mart does everything it can to keep its workers from unionizing, and union organizations despise it for that reason.

Factory owners began hiring Chinese workers at lower wages, and unions objected to that.  Factory owners would also import Chinese workers to "break a strike," and keep the factory operating despite the refusal of the regular employees to work.  So quickly the unions became opposed to immigration from China.

Factory owners responded by hiring Chinese workers at lower wages, and unions objected to that.  Factory owners would also import Chinese workers to "break a strike," and keep the factory operating despite the refusal of the regular employees to work.  So quickly the unions became opposed to immigration from China.

From 1877 to 1880, the Workingmen's Party existed with support by ordinary workers.  It was socialistic (against capitalism) and opposed to immigration from China.  Its leader was Dennis Kearney, who was actually imprisoned for provocative speeches.  (Today the broad interpretation of the First Amendment prohibits such imprisonments.)

From 1877 to 1880, the Workingmen's Party developed for ordinary workers.  It was socialistic (against capitalism) and opposed to immigration from China.  Its leader was Dennis Kearney, who was actually imprisoned for his provocative speeches.  (Today the broad interpretation of the First Amendment prohibits such imprisonments.)

In 1882, the Chinese Exclusion Act was enacted as a culmination of growing opposition to Chinese immigrants, who were thought to lower wages for workers.  This Act banned the Chinese from immigrating to the United States, and was not repealed until 1943 when America sought Chinese cooperation in the war against Japan.

In 1882, the Chinese Exclusion Act was enacted as a culmination of growing opposition to Chinese immigrants, who were thought to lower wages for workers.  This Act banned the Chinese from immigrating to the United States, and was not repealed until 1943 when America sought Chinese cooperation in the war against Japan.

Some cities passed laws to frustrate efforts by Chinese to operate businesses in competition with Americans.  San Francisco, for example, passed a law requiring laundries to be in only stone or brick buildings, which made it more difficult for the Chinese to open laundry businesses.  But the Chinese challenged that law and took it to the U.S. Supreme Court, which invalidated the law and gave the victory to the Chinese in ''Yick Wo v. Hopkins'' (1886).

Some cities passed laws to frustrate efforts by Chinese to operate businesses in competition with Americans.  San Francisco, for example, passed a law requiring laundries to be in only expensive stone or brick buildings, which made it more difficult for the Chinese to open laundry businesses.  But Chinese Americans challenged that law and took it to the U.S. Supreme Court, which invalidated the law and gave the victory to the Chinese immigrants in ''Yick Wo v. Hopkins'' (1886).

In 1886, Samuel Gompers formed the American Federation of Labor (AFL) in order to demand limiting the workday to 8 hours and stop employers who required longer workdays.  Initially this was a non-political organization, not aligned with either political party.  By 1901 it had 1 million members.  The Knights of Labor, another labor group in the 1880s, had 700,000 members at that time.  So these labor groups were quite large.

In 1886, Samuel Gompers formed the American Federation of Labor (AFL) in order to demand limiting the workday to 8 hours and stop employers who required longer workdays.  Initially this was a non-political organization, not aligned with either political party.  By 1901 it had 1 million members.  The Knights of Labor, another labor group in the 1880s, had 700,000 members at that time.  So these labor groups were quite large.

In 1886, workers at the McCormick Harvesting Machine Co. in Chicago began a strike in the hopes of shortening the workday to 8 hours.  The company tried to break the strike by using new workers, and police were called in to protect the new workers.  A fight broke out and one person was killed.

In 1886, workers at the McCormick Harvesting Machine Co. in Chicago began a strike in the hopes of shortening the workday to 8 hours.  The company tried to break the strike by using new workers, and police were called in to protect the new workers.  A fight broke out and one person was killed.

Anarchists were anti-civilization extremists who sided with the unions, and the anarchists planned a large rally the next day to protest the alleged police brutality.  They expected 20,000 to show up at the public Haymarket Square in Chicago, but actually only 1500 to 2000 were there, with the police there also.  At one point a protester threw a pipe bomb at the policemen, and its explosion killed seven policemen and injured more than 60 others.  The police then fired into the crowd, and killed four.

Anarchists were anti-civilization extremists who sided with the unions, and the anarchists planned a large rally the next day to protest the alleged police brutality.  They expected 20,000 to show up at the public Haymarket Square in Chicago, but actually only 1500 to 2000 attended, with the police there also.  At one point a protester threw a pipe bomb at the policemen, and its explosion killed seven policemen and injured more than 60 others.  The police then fired into the crowd, and killed four.

Eight anarchists were tried for conspiracy to commit murder; seven were convicted, and four were hanged in November 1887.  This was a huge embarrassment for the union movement, which did include many socialists and anarchists.  It caused a delay in acceptance of the eight-hour workday, and many workers left the Knights of Labor to join the more moderate American Federation of Labor.<ref>http://www.u-s-history.com/pages/h750.html</ref>

Eight anarchists were tried for conspiracy to commit murder; seven were convicted, and four were hanged in November 1887.  This was a huge embarrassment for the union movement, which did include many socialists and anarchists.  It caused a delay in acceptance of the eight-hour workday, and many workers left the Knights of Labor to join the more moderate American Federation of Labor.<ref>http://www.u-s-history.com/pages/h750.html</ref>

Despite the fact that radicals killed policemen in the Haymarket Square riots, radicals in 1969 (including Barack Obama's friend Bill Ayers) detonated a bomb to destroy a statute honoring the fallen policemen.  The mayor of Chicago correctly criticized it as an attack on law and order.<ref>Bill Ayers, "Fugitive Days" at p. 176 (Beacon Press: Boston, Massachusetts 2001)</ref>

Despite the fact that radicals killed policemen in the Haymarket Square riots, in 1969 radicals (including Barack Obama's friend Bill Ayers) detonated a bomb to destroy a statute honoring the fallen policemen.  The mayor of Chicago correctly criticized it as an attack on law and order.<ref>Bill Ayers, "Fugitive Days" at p. 176 (Beacon Press: Boston, Massachusetts 2001)</ref>

Another violent conflict involving striking workers occurred near Pittsburgh in 1892.  Called the Homestead Strike, guards hired by wealthy businessman Andrew Carnegie suppressed a strike by workers, and ten were killed in the conflict.

Another violent conflict involving striking workers occurred near Pittsburgh in 1892, called the Homestead Strike.  Guards hired by wealthy businessman Andrew Carnegie suppressed a strike by workers, and ten were killed in the conflict.

The most aggressive leader of the labor movement was Eugene V. Debs, who headed the American Railway Union (railroad workers).  Debs was jailed for leading strike against Pullman railroad cars in 1894 over wages.  In 1895, in a case entitled "In re Debs," the U.S. Supreme Court upheld judicial power to prohibit strikes against railroads, and upheld the power of courts to jail those who disobey court orders and engage in strikes anyway (as Debs had).

The most aggressive leader of the labor movement was Eugene V. Debs, who headed the American Railway Union (railroad workers).  Debs was jailed for leading strike against Pullman railroad cars in 1894 over wages.  In 1895, in a case entitled "In re Debs," the U.S. Supreme Court upheld judicial power to prohibit strikes against railroads, and upheld the power of courts to jail those who disobey court orders and engage in strikes anyway (as Debs had).

In 1890, the McKinley Tariff established the highest tariffs ever, but in a compromise it did make sugar "duty free" (no tariff on sugar).  Other than sugar, prices increased on goods and products due to the higher tariffs.  These higher tariffs reflected the continued dominance by the Republican Party, which controlled the White House in 1890 (Benjamin Harrison, the grandson of William Henry Harrison, was president).  Partly due to public outrage over the higher tariffs, the Democratic Party won many seats in Congress in the 1890 elections after the McKinley Tariff was enacted.

In 1890, the McKinley Tariff established the highest tariffs ever, but in a compromise it did make sugar "duty free" (no tariff on sugar).  Other than sugar, prices increased on goods and products due to the higher tariffs.  These higher tariffs reflected the continued dominance by the Republican Party, which controlled the White House in 1890 (Benjamin Harrison, the grandson of William Henry Harrison, was president).  Partly due to public outrage over the higher tariffs, the Democratic Party won many seats in Congress in the 1890 elections after the McKinley Tariff was enacted.

In 1894, the Wilson-Gorman Tariff and Income Tax Act passed, which added an income tax to even more tariffs.  In the case of ''Pollack v. Farmers Loan and Trust Company'', the Supreme Court declared the Income Tax Act unconstitutional because that particular direct tax did not apportion the tax by population as required by the Constitution.<ref>The U.S. Constitution, Article I, Section 9, paragraph 4, states that "No Capitation [head], or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken."</ref><ref>The Supreme Court had allowed other types of taxes, such as an income tax during the Civil War and an inheritance tax. See http://www.reason.com/news/show/30860.html</ref>  The Supreme Court decision required a constitutional amendment (the 16th Amendment) to be passed before allowing a direct taxation based purely on income without regard for population.

In 1894, the Wilson-Gorman Tariff and Income Tax Act passed, which added an income tax to even more tariffs.  In the case of ''Pollack v. Farmers Loan and Trust Company'', the Supreme Court declared the Income Tax Act unconstitutional because it did not apportion the tax by population as required by the Constitution.<ref>The U.S. Constitution, Article I, Section 9, paragraph 4, states that "No Capitation [head], or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein before directed to be taken."</ref><ref>The Supreme Court had allowed other types of taxes, such as an income tax during the Civil War and an inheritance tax. See http://www.reason.com/news/show/30860.html</ref>  The Supreme Court decision required a constitutional amendment (the 16th Amendment) to be passed before allowing a direct taxation based purely on income without regard for population.

== The Conservative Democrat ==

== The Conservative Democrat ==

After Chester Arthur served out the presidential term for the late James Garfield, Republicans were so unhappy with Arthur that they did not renominate him.  Meanwhile, the Democratic Party -- which had not won a presidential election in nearly 30 years, turned to a conservative candidate from the Republican State of New York: Grover Cleveland.  The Democrats hoped that by nominating Grover Cleveland they could pick up some Republican support and finally win a presidential election.

After Chester Arthur served out the presidential term for the late James Garfield, Republicans were so unhappy with Arthur that they did not renominate him.  Meanwhile, the Democratic Party -- which had not won a presidential election in nearly 30 years, turned to a conservative candidate from the Republican State of New York: Grover Cleveland.  The Democrats hoped that by nominating the conservative Grover Cleveland they could pick up some Republican support and finally win a presidential election.

His opponent was the Republican Senator James Blaine from Maine, who was a moderate.  Blaine is best known today for his opposition to funding by States of religiously affiliated schools (and particularly Catholic schools).  In 1875, Blaine tried to amend the U.S. Constitution to prohibit States from providing any funding to religiously affiliated elementary and high schools.  When that failed, his "Blaine Amendment" was incorporated into 36 State Constitutions, where they remain today and frustrate school voucher programs.<ref>http://pewforum.org/events/rss.php?EventID=194</ref>  A recent effort in Florida to establish school vouchers and to repeal the Blaine Amendment there failed.

His opponent was the Republican Senator James Blaine from Maine, who was a liberal (or a "moderate").  Blaine is best known today for his opposition to funding by States of religiously affiliated schools (and particularly Catholic schools).  In 1875, Blaine tried to amend the U.S. Constitution to prohibit States from providing any funding to religiously affiliated elementary and high schools.  When that failed, his "Blaine Amendment" was incorporated into 36 State Constitutions, where they remain today and frustrate school voucher programs.<ref>http://pewforum.org/events/rss.php?EventID=194</ref>  A recent effort in Florida to establish school vouchers and to repeal the Blaine Amendment there failed.

Some key eastern Republicans opposed James Blaine in 1884 due to scandals, and supported Grover Cleveland for president instead.  These Republicans were known as the "Mugwumps"; they felt Blaine could not be trusted, and they were probably right!  The defection by the Mugwumps to support Cleveland enabled him to win his key home state of New York, despite its Republican tradition at the time.  (Today New York is very Democratic.)

Some key eastern Republicans opposed James Blaine in 1884 due to scandals, and supported Grover Cleveland for president instead.  These Republicans were known as the "Mugwumps"; they felt Blaine could not be trusted, and they were probably right!  The defection by the Mugwumps to support Cleveland enabled him to win his key home state of New York, despite its Republican tradition at the time.  (Today New York is very Democratic.)

Historians cite this march on Washington as an example of how Americans increasingly looked to the national government to solve their problems.

Historians cite this march on Washington as an example of how Americans increasingly looked to the national government to solve their problems.

Cleveland also held his ground against problems instigated by unions.  He put down the (railroad) Pullman Strike in Chicago in 1894.

Cleveland also held his ground against problems instigated by unions.  He put down ("broke") the (railroad) Pullman Strike in Chicago in 1894.

== Preparing for the "Turn of the Century" ==

== Preparing for the "Turn of the Century" ==

After the fighting stopped in the Philippines, the issue was presented to President McKinley as to what to do with the territory.  Newspapers opposed an American return of the Philippines to Spain, fearing Spain would mistreat the Filipino people.  President McKinley agreed with the newspapers and kept the Philippines as an American territory.  It remained a U.S. territory until 1946, when the United States granted it independence shortly after World War II.

After the fighting stopped in the Philippines, the issue was presented to President McKinley as to what to do with the territory.  Newspapers opposed an American return of the Philippines to Spain, fearing Spain would mistreat the Filipino people.  President McKinley agreed with the newspapers and kept the Philippines as an American territory.  It remained a U.S. territory until 1946, when the United States granted it independence shortly after World War II.

After the Spanish-American War, the United States granted Cuba independence on the condition that it insert the "Platt Amendment" into its constitution.  This Amendment gave the U.S. the right to intercede in Cuba whenever necessary, and allowed the U.S. to keep a naval base (called Guantanamo Bay) on the island.  The Bush Administration has imprisoned terrorists there since the invasion of Afghanistan after 9/11, and liberals complain about continued use of that facility for this purpose.

After the Spanish-American War, the United States granted Cuba independence on the condition that it insert the "Platt Amendment" into its constitution.  This Amendment gave the U.S. the right to intercede in Cuba whenever necessary, and allowed the U.S. to keep a naval base (called Guantanamo Bay) on the island.  More than a century later, the Bush Administration imprisoned terrorists there after they were captured in Afghanistan following 9/11, and liberals have complained about continued use of that facility for this purpose.  President Obama promised to move these suspected terrorists to United States jails and try them in American courts, but public opposition to his plan prevented this from happening.

The Treaty of Paris in 1898 ended the Spanish-American War based on Spain leaving Cuba, the United States buying the Philippines for $20 million dollars, and the United States also acquiring Guam and Puerto Rico.   

The Treaty of Paris in 1898 ended the Spanish-American War based on Spain leaving Cuba, the United States buying the Philippines for $20 million dollars, and the United States also acquiring Guam and Puerto Rico.   

A fascinating and influential political movement began to develop around 1900:  the progressive movement.  It started with a Republican governor of Wisconsin named Robert LaFollette.  It was not so much a political party as a movement that can be summarized in two words:  "better government."  Not "less government" that a conservative like President James Monroe wanted, and not "more government" that a liberal like Franklin Delano Roosevelt wanted, but "better government."

A fascinating and influential political movement began to develop around 1900:  the progressive movement.  It started with a Republican governor of Wisconsin named Robert LaFollette.  It was not so much a political party as a movement that can be summarized in two words:  "better government."  Not "less government" that a conservative like President James Monroe wanted, and not "more government" that a liberal like Franklin Delano Roosevelt wanted, but "better government."

Then, as now, progressives tended to work within other political parties.  We have progressives today in both parties.  The former New Jersey Republican candidate for governor (and former mayor of Jersey City, who recently announced that he will run again to recapture his prior position) Bret Schundler is like a progressive.  His view is this: let's run government in a smarter manner.  We have had two progressive presidents:  Republican Teddy Roosevelt and Democrat Woodrow Wilson. Some might say that President-Elect Barack Obama has some hints of being slightly progressive, and we will soon find out! The high point of the movement, the "progressive era," was 1900-1920.

Then, as now, progressives tended to work within other political parties.  We have progressives today in both parties.  New Jersey Republicans like Bret Schundler (the former mayor of Jersey City) and Chris Christie tend to be more progressive than conservative.  They try to run government in a smarter manner, rather than simply reducing it.  We have had two progressive presidents:  Republican Teddy Roosevelt and Democrat Woodrow Wilson.  The high point of the movement, the "progressive era," was 1900-1920.

Here were the goals of the progressive movement:

Here were the goals of the progressive movement: