Other matters occupied the attention of northern voters. The expansion of industry and the rapid development of the West, stimulated by a new wave of railroad building, loomed more important to many than the fortunes of the former slaves. Beginning in 1873, when a stock market panic struck at public confidence, economic difficulties plagued the country and provoked another debate over the tariff.
More damaging to the Republicans was the failure of Ulysses S. Grant to live up to expectations as president. Qualities that had made Grant a fine military leader for a democracy—his dislike of political maneuvering and his simple belief that the popular will could best be observed in the actions of Congress—made him a poor chief executive. When
Congress failed to act on his suggestion that the quality of the civil service needed improvement, he announced meekly that if Congress did nothing, he would assume the country did not want anything done. Grant was honest, but his honesty was of the naive type that made him the dupe of unscrupulous friends and schemers.
His most serious weakness as president was his failure to deal effectively with economic and social problems, but the one that injured him and the Republicans most was his inability to cope with government corruption. The worst of the scandals— such as the Whiskey Ring affair, which implicated Grant’s private secretary (Orville E. Babcock) and cost the government millions in tax revenue, and the corruption of Secretary of War William W. Belknap in the management of Indian affairs—did not become public knowledge during Grant’s first term. However, in 1872 Republican reformers, alarmed by rumors of corruption and disappointed by Grant’s failure to press for civil service reform, organized the Liberal Republican party and nominated Horace Greeley, the able but eccentric editor of the New York Tribune, for president.
The Liberal Republicans were mostly well-educated, socially prominent types—editors, college presidents, economists, along with a sprinkling of businessmen and politicians. Their liberalism was of the laissez-faire variety; they were for low tariffs and sound money, and against what they called “class legislation,”
A major Reconstruction project was the development of Birmingham, Alabama as a center of the iron industry. Here iron moulders cast molten iron into rectangular blocks ("pigs”).
Meaning measures benefiting particular groups, whether labor unions or railroad companies or farm organizations. Nearly all had supported Reconstruction at the start, but by the early 1870s most were including southern blacks among the special interests that ought to be left to their own devices. Their observation of urban corruption and of unrestricted immigration led them to disparage universal suffrage, which, one of them said, “can only mean in plain English the government of ignorance and vice.”
The Democrats also nominated Greeley in 1872, although he had devoted his political life to flailing the Democratic party in the Tribune. That surrender to expediency, together with Greeley’s temperamental unsuitability for the presidency, made the campaign a fiasco for the reformers. Grant triumphed easily, with a popular majority of nearly 800,000.
Nevertheless, the defection of the Liberal Republicans hurt the Republican party in Congress. In the 1874 elections, no longer hampered as in the presidential contest by Greeley’s notoriety and
Grant’s fame, the Democrats carried the House of Representatives. It was clear that the days of military rule in the South were ending. By the end of 1875 only three southern states—South Carolina, Florida, and Louisiana—were still under Republican control.
The Republican party in the South was “dead as a doornail,” a reporter noted. He reflected the opinion of thousands when he added, “We ought to have a sound sensible republican. . . for the next President as a measure of safety; but only on the condition of absolute noninterference in Southern local affairs, for which there is no further need or excuse.”