Most of the previous books about the hotly disputed 1876 election focus on partisan matters. Both Democrats and Republicans think that their side back in 1876 was either robbed of the election by nefarious means or ended up winning in spite of the other side using nefarious means. The nuts and bolts of the election are laid out in Michael Holt’s book, who looks at the election in terms of the actual important political issues of the day, the most important one being one that would make little sense to us today.
Today, we think of the Reconstruction Era as one marked by: 1) Southern Republican governments propped up by Federal military force, 2) widespread corruption in government, and 3) the uneasy return of Southern Democrats into Congress. But, there was even more going on, especially with the economy, which was trying to regain its footing after the trauma of the Civil War. The national debt had soared and the method for the repayment of the debt to those holding securities was the hot button issue of the day.
During the Civil War, currency was issued without any gold to back it up, but after a massive recession in 1873, Congress passed the Specie Resumption Act, which would require the Treasury to accumulate gold reserves and pay back bonds with gold instead of more paper money. This issue turned out to be divisive. A gold-backed currency would greatly reduce the money supply, making it harder to lower class and middle class people to get access to capital. The issue of specie resumption turned out to be even more divisive than civil rights. Although it is far harder to explain. (See the paragraph above for proof!) Continue reading