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===Lowering the tariff===
 
===Lowering the tariff===
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In 1887 Cleveland began to crusade against the high protective tariff, as an evil combination of corruption, inefficiency, and unnecessary taxation.  "Unnecassary taxation," he explained, "is unjust taxation."  harking back to the basic American hatred of taxation as a threat to individual liberty. He wanted a lower tariff "for revenue only" (it funded most of the federal government).  Republicans, in alliance with industry, argued that a high tariff made for high wages, high profits, and faster economic expansion. Cleveland failed to lower the tariff in 1888 when the Mills Bill was defeated. In 1890 the Republicans raised rates again in the [[McKinley Tariff]], which proved politically disastrous for the GOP.<ref> Tariff bills were usually named after the chief author, the chairman of the House Ways and Means Committee, and sometimes also the chairman of the Senate Finance Committee.</ref>  Historians conclude that the tariff made a difference in the woolen industry (where Britain was a lower-cost provider), and possibly in steel,  In other areas the U.S. was the world-wide low-cost produced and tariffs made little economic difference.  American wages were higher, but efficiency was greater and so prices were lower.<ref> See [http://www.econlib.org/library/Taussig/tsgSTQtoc.html Taussig, F. W. ''Some Aspects of the Tariff Question: An Examination of the Development of American Industries Under Protection'' (1931)], and Taussig, ''The Tariff History of the United States''. [http://www.mises.org/etexts/taussig.pdf  5th edition 1910  online] </ref> The tariff was an important political issue because it symbolized the Republican dedication to rapid industrialization and GOP support from factory owners and factory workers.<ref> Irish Catholic textile mill workers were Democrats and opposed the tariff, but other factory workers voted republican and supported high tariffs.</ref>
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In 1887 Cleveland began to crusade against the high protective tariff, as an evil combination of corruption, inefficiency, and unnecessary taxation.  "Unnecessary taxation," he explained, "is unjust taxation."  harking back to the basic American hatred of taxation as a threat to individual liberty. He wanted a lower tariff "for revenue only" (it funded most of the federal government).  Republicans, in alliance with industry, argued that a high tariff made for high wages, high profits, and faster economic expansion. Cleveland failed to lower the tariff in 1888 when the Mills Bill was defeated. In 1890 the Republicans raised rates again in the [[McKinley Tariff]], which proved politically disastrous for the GOP.<ref> Tariff bills were usually named after the chief author, the chairman of the House Ways and Means Committee, and sometimes also the chairman of the Senate Finance Committee.</ref>  Historians conclude that the tariff made a difference in the woolen industry (where Britain was a lower-cost provider), and possibly in steel,  In other areas the U.S. was the world-wide low-cost produced and tariffs made little economic difference.  American wages were higher, but efficiency was greater and so prices were lower.<ref> See [http://www.econlib.org/library/Taussig/tsgSTQtoc.html Taussig, F. W. ''Some Aspects of the Tariff Question: An Examination of the Development of American Industries Under Protection'' (1931)], and Taussig, ''The Tariff History of the United States''. [http://www.mises.org/etexts/taussig.pdf  5th edition 1910  online] </ref> The tariff was an important political issue because it symbolized the Republican dedication to rapid industrialization and GOP support from factory owners and factory workers.<ref> Irish Catholic textile mill workers were Democrats and opposed the tariff, but other factory workers voted republican and supported high tariffs.</ref>
 
===Navy Buildup===
 
===Navy Buildup===
 
The U.S. Navy was in deplorable condition by 1884, and Cleveland supported a systematic rebuilding of modern steel ships.  The new warships proved highly effective against Spain in the war of 1898.  
 
The U.S. Navy was in deplorable condition by 1884, and Cleveland supported a systematic rebuilding of modern steel ships.  The new warships proved highly effective against Spain in the war of 1898.  
 
===Expanding the federal government role in the economy===
 
===Expanding the federal government role in the economy===
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The Supreme Court's rejection (1886) of a state law regulating railroad rates convinced Cleveland that national controls for railroads engaged in interstate commerce were necessary. Congress agreed and in 1887 created the [[Interstate Commerce Commission]]; it was the federal government's first significant regulation of a major business sector. Cleveland approved the Hatch Act (1887), provoding federal subsidies to state agricultural experiment stations. Congress upgraded the Department of Agriculture to departmental status (1889) and Cleveland supported its emerging role as a major research center for agricultural science.  
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The Supreme Court's rejection (1886) of a state law regulating railroad rates convinced Cleveland that national controls for railroads engaged in interstate commerce were necessary. Congress agreed and in 1887 created the [[Interstate Commerce Commission]]; it was the federal government's first significant regulation of a major business sector. Cleveland approved the Hatch Act (1887), providing federal subsidies to state agricultural experiment stations. Congress upgraded the Department of Agriculture to departmental status (1889) and Cleveland supported its emerging role as a major research center for agricultural science.  
 
==1888 campaign==
 
==1888 campaign==
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Cleveland lost the [[United States presidential election, 1888|1888 Presidential Election]] to Republican [[Benjamin Harrison|Benjamin Harrison]]. Apart from endless discussions of the tariff, there were no major issues, as both parties rallied their armies of voters and the GOP did a slightly better job.  Cleveland had chilly relations with intensely partisan Governor [[David B. Hill]], leader of tghe Democratic Party in New York, and he narrowly lost the state and the election as Harrison won the Electoral College by a 204-197 margin. Cleveland nevertheless won the nationwide popular vote. Out of office, he moved to New York City, joining the prestigious Bangs, Stetson, Tracy and McVeigh law firm. Cleveland enjoyed a busy, lucrative practice, chiefly as a referee appointed by the courts.  
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Cleveland lost the [[United States presidential election, 1888|1888 Presidential Election]] to Republican [[Benjamin Harrison|Benjamin Harrison]]. Apart from endless discussions of the tariff, there were no major issues, as both parties rallied their armies of voters and the GOP did a slightly better job.  Cleveland had chilly relations with intensely partisan Governor [[David B. Hill]], leader of the Democratic Party in New York, and he narrowly lost the state and the election as Harrison won the Electoral College by a 204-197 margin. Cleveland nevertheless won the nationwide popular vote. Out of office, he moved to New York City, joining the prestigious Bangs, Stetson, Tracy and McVeigh law firm. Cleveland enjoyed a busy, lucrative practice, chiefly as a referee appointed by the courts.  
    
==1892 campaign==
 
==1892 campaign==
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===Second term ===
 
===Second term ===
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Cleveland's most important appointees were [[John Carlisle]] as Secretary of the Treasury, and [[Richard Olney]] as Attorney General. Carlisle, of Kentucky, had been Speaker of the House, and was a tariff expert. Olney was a leading railroad lawyer in Boston; in 1895 the aggressive, undiplomatic Olney became Secretary of State.
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====Depression====
 
====Depression====
 
Within weeks after Cleveland took office on March 4, 1893, the economy went into a tailspin.  Every sector was hurt—farming, manufacturing, railroads, retail trade, and banking.  
 
Within weeks after Cleveland took office on March 4, 1893, the economy went into a tailspin.  Every sector was hurt—farming, manufacturing, railroads, retail trade, and banking.  
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* Blodgett, Geoffrey. "Ethno-cultural Realities in Presidential Patronage: Grover Cleveland's Choices" ''New York History'' 2000 81(2): 189-210. ISSN 0146-437X; when a German American leader called for fewer appointments of Irish Americans, Cleveland instead appointed more Germans
 
* Blodgett, Geoffrey. "Ethno-cultural Realities in Presidential Patronage: Grover Cleveland's Choices" ''New York History'' 2000 81(2): 189-210. ISSN 0146-437X; when a German American leader called for fewer appointments of Irish Americans, Cleveland instead appointed more Germans
 
* Campbell, Ballard C. ''The Growth of American Government: Governance From The Cleveland Era to the Present.'' (1995). 289 pp., argues that Cleveland began the steady expansion of federal role
 
* Campbell, Ballard C. ''The Growth of American Government: Governance From The Cleveland Era to the Present.'' (1995). 289 pp., argues that Cleveland began the steady expansion of federal role
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* Dewey, Davis Rich. ''Financial History of the United States'' (1902) 530 pages [http://books.google.com/books?id=6DQ5AAAAMAAJ&dq=Dewey,+Davis+Rich.+ online etxt]
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* Dewey, Davis Rich. ''Financial History of the United States'' (1902) 530 pages [http://books.google.com/books?id=6DQ5AAAAMAAJ&dq=Dewey,+Davis+Rich.+ online text]
 
* Dewey, Davis R. '' National Problems: 1880-1897'' (1907), survey of era [http://books.google.com/books?id=sgQOAAAAIAAJ&pg=PA3&dq=intitle:National+intitle:Problems+inauthor:dewey&num=30&as_brr=1 online edition]  
 
* Dewey, Davis R. '' National Problems: 1880-1897'' (1907), survey of era [http://books.google.com/books?id=sgQOAAAAIAAJ&pg=PA3&dq=intitle:National+intitle:Problems+inauthor:dewey&num=30&as_brr=1 online edition]  
 
* Doenecke, Justus. "Grover Cleveland and the Enforcement of the Civil Service Act," ''Hayes Historical Journal'' 1984 4(3): 44-58. ISSN 0364-5924, by conservative historian  
 
* Doenecke, Justus. "Grover Cleveland and the Enforcement of the Civil Service Act," ''Hayes Historical Journal'' 1984 4(3): 44-58. ISSN 0364-5924, by conservative historian  
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