The Grangers and State Regulation.—The same uncertainty about the railways and trusts pervaded the ranks of the Republicans and Democrats. As to the railways, the first firm and consistent demand for their regulation came from the West. There the farmers, in the early seventies, having got control in state legislatures, particularly in Iowa, Wisconsin, and Illinois, enacted drastic laws prescribing the maximum charges which companies could make for carrying freight and passengers. The application of these measures, however, was limited because the state could not fix the rates for transporting goods and passengers beyond its own borders. The power of regulating interstate commerce, under the Constitution, belonged to Congress.
The Interstate Commerce Act of 1887.—Within a few years, the movement which had been so effective in western legislatures appeared at Washington in the form of demands for the federal regulation of interstate rates. In 1887, the pressure became so strong that Congress created the interstate commerce commission and forbade many abuses on the part of railways; such as discriminating in charges between one shipper and another and granting secret rebates to favored persons. This law was a significant beginning; but it left the main question of rate-fixing untouched, much to the discontent of farmers and shippers.
The Sherman Anti-Trust Law of 1890.—As in the case of the railways, attacks upon the trusts were first made in state legislatures, where it became the fashion to provide severe penalties for those who formed monopolies and "conspired to enhance prices." Republicans and Democrats united in the promotion of measures of this kind. As in the case of the railways also, the movement to curb the trusts soon had spokesmen at Washington. Though Blaine had declared that "trusts were largely a private affair with which neither the President nor any private citizen had any particular right to interfere," it was a Republican Congress that enacted in 1890 the first measure—the Sherman Anti-Trust Law—directed against great combinations in business. This act declared illegal "every contract, combination in the form of trust or otherwise, or conspiracy in restraint of trade and commerce among the several states or with foreign nations."
The Futility of the Anti-Trust Law.—Whether the Sherman law was directed against all combinations or merely those which placed an "unreasonable restraint" on trade and competition was not apparent. Senator Platt of Connecticut, a careful statesman of the old school, averred: "The questions of whether the bill would be operative, of how it would operate, or whether it was within the power of Congress to enact it, have been whistled down the wind in this Senate as idle talk and the whole effort has been to get some bill headed: 'A bill to punish trusts,' with which to go to the country." Whatever its purpose, its effect upon existing trusts and upon the formation of new combinations was negligible. It was practically unenforced by President Harrison and President Cleveland, in spite of the constant demand for harsh action against "monopolies." It was patent that neither the Republicans nor the Democrats were prepared for a war on the trusts to the bitter end.
The Minor Parties and Unrest
The Demands of Dissenting Parties.—From the election of 1872, when Horace Greeley made his ill-fated excursion into politics, onward, there appeared in each presidential campaign one, and sometimes two or more parties, stressing issues that appealed mainly to wage-earners and farmers. Whether they chose to call themselves Labor Reformers, Greenbackers, or Anti-monopolists, their slogans and their platforms all pointed in one direction. Even the Prohibitionists, who in 1872 started on their career with a single issue, the abolition of the liquor traffic, found themselves making declarations of faith on other matters and hopelessly split over the money question in 1896.
A composite view of the platforms put forth by the dissenting parties from the administration of Grant to the close of Cleveland's second term reveals certain notions common to them all. These included among many others: the earliest possible payment of the national debt; regulation of the rates of railways and telegraph companies; repeal of the specie resumption act of 1875; the issue of legal tender notes by the government convertible into interest-bearing obligations on demand; unlimited coinage of silver as well as gold; a graduated inheritance tax; legislation to take from "land, railroad, money, and other gigantic corporate monopolies ... the powers they have so corruptly and unjustly usurped"; popular or direct election of United States Senators; woman suffrage; and a graduated income tax, "placing the burden of government on those who can best afford to pay instead of laying it on the farmers and producers."
Criticism of the Old Parties.—To this long program of measures the reformers added harsh and acrid criticism of the old parties and sometimes, it must be said, of established institutions of government. "We denounce," exclaimed the Labor party in 1888, "the Democratic and Republican parties as hopelessly and shamelessly corrupt and by reason of their affiliation with monopolies equally unworthy of the suffrages of those who do not live upon public plunder." "The United States Senate," insisted the Greenbackers, "is a body composed largely of aristocratic millionaires who according to their own party papers generally purchased their elections in order to protect the great monopolies which they represent." Indeed, if their platforms are to be accepted at face value, the Greenbackers believed that the entire government had passed out of the hands of the people.
The Grangers.—This unsparing, not to say revolutionary, criticism of American political life, appealed, it seems, mainly to farmers in the Middle West. Always active in politics, they had, before the Civil War, cast their lot as a rule with one or the other of the leading parties. In 1867, however, there grew up among them an association known as the "Patrons of Husbandry," which was destined to play a large rôle in the partisan contests of the succeeding decades. This society, which organized local lodges or "granges" on principles of secrecy and fraternity, was originally designed to promote in a general way the interests of the farmers. Its political bearings were apparently not grasped at first by its promoters. Yet, appealing as it did to the most active and independent spirits among the farmers and gathering to itself the strength that always comes from organization, it soon found itself in the hands of leaders more or less involved in politics. Where a few votes are marshaled together in a democracy, there is power.
The Greenback Party.—The first extensive activity of the Grangers was connected with the attack on the railways in the Middle West which forced several state legislatures to reduce freight and passenger rates by law. At the same time, some leaders in the movement, no doubt emboldened by this success, launched in 1876 a new political party, popularly known as the Greenbackers, favoring a continued re-issue of the legal tenders. The beginnings were disappointing; but two years later, in the congressional elections, the Greenbackers swept whole sections of the country. Their candidates polled more than a million votes and fourteen of them were returned to the House of Representatives. To all outward signs a new and formidable party had entered the lists.