Grantism and Postwar Politics
Ulysses S. Grant was elected president of the United States in 1868 because he was a war hero, but his cabinet was riddled with corruption. Grant did manage to make some important accomplishments in the area of foreign policy, but his ability to cope with domestic controversy, especially the economic issues which began to arise, created chaos in national politics.

Ulysses S. Grant: Grant was an American general and the 18th president of the United States. A war hero, Grant was admired throughout the North and was endorsed by Union veterans. Although he was a strong military leader, Grant proved to be a passive president with little skill at politics.

purchase of Alaska: Alaska was ceded to the United States by the Russian Czar Alexander II in a treaty signed on March 30, 1867. Secretary of State William Henry Seward arranged the $7.2 million purchase at 1.9¢ per acre. Critics ridiculed this purchase as "Seward’s icebox," but it expanded American territory at a reasonable price.

Secretary of State William Seward: Seward was the American Secretary of State who handled diplomatic issues during and after the Civil War. He was involved in the Trent Affair and his most notable act was the purchase of Alaska. This purchase was denounced at the time as "Seward’s folly, but it added a significant amount of territory to the United States.

Napoleon III: After his election in 1848, Napoleon III proclaimed himself the Emperor of France, instituted reforms, and rebuilt Paris. His successful imperialist ventures were overshadowed by a failed campaign in Mexico to create a French-Mexican Empire and the Franco-Prussian War, which resulted in his deposition.

Maximilian in Mexico: Maximilian was instructed by Napoleon III in 1864 to establish a French empire in Mexico, but the Mexicans were hostile to Maximilian and loyal to President Juárez. The United States invoked the Monroe Doctrine as justification for their demand for French nonintervention. Although the French drove Juárez’s army from the capital, Maximilian’s empire disintegrated when French troops withdrew.

Treaty of Washington, 1871: The Treaty of Washington was a treaty arranged by Hamilton Fish. In it, the U.S. and Great Britain settled many minor disputes such as the Alabama claims, which had arisen during the U.S. Civil War. The treaty also provided for arbitration of disagreements over the Canadian-American boundary and fishing rights.

Secretary of State Hamilton Fish: Fish served as Grant’s secretary of state. He arranged the Treaty of Washington, which settled disputes with Britain over the Alabama claims the and Canadian-American boundary. Also, he prevented American filibustering expeditions against Cuba from escalating into war with Spain.

"Whiskey Ring": Grant’s private secretary, Orville Babcock, was unmasked in 1875 after taking money from the "whiskey ring," a group of distillers who bribed federal agents to avoid paying millions in whiskey taxes. On May 10, 1875, 16 distillers in areas of Saint Louis, Milwaukee, and Chicago were captured.

Black Friday: Scandal caused a short-lived financial crisis in the United States that occurred on Friday, September 24, 1869. The panic was precipitated when two financial speculators, James Fisk and Jay Gould, attempted to corner the U.S. gold market. Fisk and Gould probably made a profit of about $11 million through their manipulations.

"Salary Grab Act": In the Salary Grab Act of 1873, Congress voted a 100% pay raise and a 50% increase for itself. Both raises were made retroactive two years back. The public was shocked, leading to a Democratic victory in the next congressional election. The act was later repealed, but it was another example of the corruption of the postwar government.

Credit Mobilier: Officials of the Union Pacific Railroad created a fake construction company, called the Credit Mobilier, in order to cheat the government out of money allotted to the construction of the Union Pacific Railroads. Grant’s vice-president, Colfax, was linked to this scandal.

Sanborn Grab Fraud: In the Sanborn Grab Fraud, a politician named Sanborn was given a contract collect $427,000 in unpaid taxes, receiving a 50% commission for all money collected. He then used this commission as Republican campaign funds, allowing the candidate to focus on his campaign rather than fundraising.

Bribing of Belknap: William E. Belknap was Grant’s secretary of war. He took a bribe to sell lucrative Indian trading posts in Oklahoma. Belknap resigned in 1876 when voters learned of his corruption. Although Grant was not personally involved, he loyally defended his subordinates.

Liberal Republicans: The Liberals Republicans’ revolt marked a turning point in Reconstruction history. They split the Republican party, supporting the Republican southern policy while attacking regular republicans on several key issues and denouncing Grantism and the spoils system.

election of 1872: In 1872, Republicans unhappy with the reelection of President Ulysses S. Grant formed the Liberal Republican party and nominated as their candidate the journalist Horace Greeley. Although he was also endorsed by the Democrats, Greeley was defeated, and the new party collapsed.

Panic of 1873, depression: Transforming the northern economy, the Panic of 1873 triggered a five-year depression. Banks closed, farm prices plummeted, steel furnaces stood idle, and one out of four railroads failed. However, once the depression began, demand rose. This issue divided both major parties and was compounded by the repayment of federal debt.

"Waving the bloody shirt": During the election of 1876, the Republicans backed Rutherford Hayes against the Democratic candidate, Samuel Tilden. They resorted to a tactic known as "waving the bloody shirt," which was used in the last two elections. The tactic emphasized wartime animosities by urging northern voters to vote the way they shot.

Greenbacks, Ohio Ideas: During the Civil War the Union had borrowed money through the sale of war bonds, known as Greenbacks, to private citizens. Senator John Sherman of Ohio and other Republican leaders obtained passage of the Public Credit Act of 1869, which promised to pay the war debt in "coin." Debtors favored the Greenbacks because they could repay debts easier with this inflated currency.

Specie Resumption Act: The Sherman Specie Resumption Act promised to put the nation effectively on the gold standard in 1879. With some convincing, it changed the minds of the Republican voters who also wanted to continue Greenbacks for the sake of "easy money." Grant signed this act. Unfortunately, robber barrons schemed to corner the gold market.

Greenback-Labor Party: The Greenback party was formed in 1876 with James Weaver as its presidential candidate. The party adopted the debtors’ cause, fought to keep greenbacks in circulation, and promoted the inflation of farm prices. The party elected 14 members to Congress . As prosperity returned, the Greenbacks faded.

election of 1876: The presidential election of 1876 resulted in neither Democrat Samuel Tilden nor Republican Rutherford Hayes receiving the 185 electoral votes necessary to become president. There were 20 disputed votes, and a Congressional committee gave all of these to Hays, making him president. In exchange, he ended military rule of the South.