WEBVTT

NOTE The Rise and Fall of Monopolies

1
00:00:00.000 --> 00:00:08.000
Now we start with Coco, Times of Conservatism, chapters 1 and 2, which covers the merger movement,

2
00:00:08.000 --> 00:00:15.000
which we'll get to probably next Tuesday, maybe Thursday, no, Tuesday I'm sure.

3
00:00:15.000 --> 00:00:22.000
This is pages 11 to 56.

4
00:00:22.000 --> 00:00:26.000
You might find Coco is not a great writer, unfortunately, but it's an excellent book,

5
00:00:26.000 --> 00:00:28.000
but you have to slog your way through a little bit.

6
00:00:28.000 --> 00:00:41.560
Anyway, we're getting out of oil, one of the great booms of the post-Civil War period,

7
00:00:41.560 --> 00:00:49.360
petroleum, it starts, energy in those days, mostly heat, light, was whale oil.

8
00:00:49.360 --> 00:00:52.560
In other words, whale oil was a major lamp for whale oil.

9
00:00:52.560 --> 00:00:55.560
Did I mention this last time about whales?

10
00:00:55.560 --> 00:00:56.560
Yeah, okay.

11
00:00:56.560 --> 00:01:09.000
1859 is the first oil well in much of Pennsylvania and we now have the next saga, the next great

12
00:01:09.000 --> 00:01:18.880
tycoon in this period, the fourth John D. Rockefeller who's the Mr. Petroleum and like

13
00:01:18.880 --> 00:01:26.200
most of the other tycoons he was born poor, he was born in western New York and therefore

14
00:01:26.200 --> 00:01:33.200
was a pietist, he was a baptist, his father was sort of, as I said before, was an itinerant

15
00:01:33.600 --> 00:01:40.600
patent medicine salesman, so sort of guy like a music man, selling elixir of curable health

16
00:01:40.960 --> 00:01:46.520
or whatever. He always had an interest in health, Archifar. His mother was therefore,

17
00:01:46.520 --> 00:01:50.960
in many Christian homes in general, the mother was a carrier of religious, transmitter of

18
00:01:50.960 --> 00:01:57.600
for Religious Values, brought John Dee up in the true pious tradition, hard work, not

19
00:01:57.600 --> 00:02:05.000
showing your emotions, he's sort of a very calm, collected person, small beady eyes,

20
00:02:05.000 --> 00:02:13.320
not too much expression on his face, and born to thrift and hard work, expressed as a so-called

21
00:02:13.320 --> 00:02:20.480
Protestant ethic, and saved his pennies and all that sort of stuff, in the traditional

22
00:02:20.480 --> 00:02:28.480
so-called stereotype, he was also short, once again, he was also thin, short, frail, of

23
00:02:28.480 --> 00:02:31.920
the super tycoons of his whole period, I think J.P. Morgan was the only really tall

24
00:02:31.920 --> 00:02:37.760
person, tall, he was six foot, which in those days was quite unusual, the whole idea of

25
00:02:37.760 --> 00:02:42.920
everybody being six foot and higher, it only comes in the 20th century with improved nutrition,

26
00:02:42.920 --> 00:02:48.840
so he was tall and he was also commanding presence, weighed about 200 pounds, you know,

27
00:02:48.840 --> 00:02:53.840
The sort of guy, it's like in the movies, the sort of guy, he looked like a tycoon, acted like a movie tycoon.

28
00:02:53.840 --> 00:02:59.840
Tough, commanding president. Most of these other guys, however, you wouldn't notice them if you didn't know they had a billion dollars.

29
00:02:59.840 --> 00:03:07.840
Anyway, he grows up poor, John D. Rockefeller. He was born in western New York, in the heart of a pious country.

30
00:03:07.840 --> 00:03:14.840
At the age of 14, his family moved to Cleveland, and again a poor Yankee pious.

31
00:03:14.840 --> 00:03:44.840
Grows up in Cleveland and starts off in life, didn't go to, none of these guys went to college, you have to realize college is only for wealthy sons, okay, and didn't waste time going to college, he starts off as a bookkeeper, and gets a job at the age of 18 or something, as a bookkeeper, and pretty soon becomes a commission grocer, and how does he become a commission grocer? He didn't get any bank loans, these guys have no credit, there's no bank loan, but he does,

32
00:03:44.840 --> 00:03:50.160
starts, he saves money from his small income as a bookkeeper, saves up his money and starts

33
00:03:50.160 --> 00:03:56.840
a commission grocer business with a partner, a couple of partners, the Clarks, and gets

34
00:03:56.840 --> 00:04:00.360
the money from, well, saves that money, borrows the money from his father, doesn't have much

35
00:04:00.360 --> 00:04:05.600
either obviously, gets the money from friends a little bit, starts a commission, a wholesale

36
00:04:05.600 --> 00:04:17.360
Commission Grocer Business and becomes a sort of a merchant and gets plows back profits.

37
00:04:17.360 --> 00:04:20.840
In other words, the way these guys, almost invariably, these entrepreneurs like Hill and

38
00:04:20.840 --> 00:04:26.600
like Rockefeller and like Harriman's we'll see later, these guys really start off, they're

39
00:04:26.600 --> 00:04:32.000
poor, Carnegie, and they start working etc. and they start plowing back profits and get

40
00:04:32.000 --> 00:04:35.960
borrowing money from relatives, their brother, something like that, and just saving up and

41
00:04:35.960 --> 00:04:38.720
plowing back.

42
00:04:38.720 --> 00:04:46.760
And he gets, so Rockefeller Clark, they start this little, let's say, Merckin-Hosam grocer

43
00:04:46.760 --> 00:04:55.840
business in 1858, he's born in 1839, so he's now 21, no 19, isn't he, 19 years old he strikes

44
00:04:55.840 --> 00:05:01.840
out into his own commissioned grocer business with a couple of partners of his own age.

45
00:05:01.840 --> 00:05:09.320
And as he comes along, he finds out that there's a, the oil business is starting, in other

46
00:05:09.320 --> 00:05:15.920
words, in western Pennsylvania, it began to have oil in 1959, by 1860, and he finds

47
00:05:15.920 --> 00:05:21.280
a friend of his, a guy named Andrews, who has a small oil refinery, and those days oil

48
00:05:21.280 --> 00:05:25.860
refinery means a small still somewhere, you have to realize it's a very small operation.

49
00:05:25.860 --> 00:05:31.080
And Andrews comes to Rockefeller and Clark and said, look, why don't we have a, and along

50
00:05:31.080 --> 00:05:34.120
Starting with the wholesale Rosabuick, because they want you to have a little oil refinery

51
00:05:34.120 --> 00:05:40.760
and get oil from my railroad or something like that, Western Pennsylvania, and so they start

52
00:05:40.760 --> 00:05:45.840
up and as a matter of fact Rockefeller was sent as a youngster to Western Pennsylvania

53
00:05:45.840 --> 00:05:49.720
in the 1860s and now there's nothing much going on here, it's a flash in the pan, it's

54
00:05:49.720 --> 00:05:59.920
petroleum, but anyway, keeps his eyes open and by 1862 they expand to wholesale refinery,

55
00:05:59.920 --> 00:06:03.320
Mostly making, of course, kerosene. You have to realize that in those days kerosene was

56
00:06:03.320 --> 00:06:09.100
the only real product. I mean, that was the major thing for lamps. Gasoline was a waste.

57
00:06:09.100 --> 00:06:13.080
No use for gasoline. A little bit of residual, not much use for anything else. So when you're

58
00:06:13.080 --> 00:06:18.280
refinery, of course, you have a fractionated sort of system, especially later on. You can

59
00:06:18.280 --> 00:06:22.280
adjust the fractions to some extent. And of course, they made as much kerosene as they

60
00:06:22.280 --> 00:06:26.920
could and as little gasoline as they could. There was no gasoline, just some waste. At

61
00:06:26.920 --> 00:06:33.760
At any rate, they start a small kerosene refinery along with the wholesale grocer business,

62
00:06:33.760 --> 00:06:42.760
and in 1865 Rockefeller realizes this oil thing is a real big thing here, but Clark doesn't

63
00:06:42.760 --> 00:06:43.760
think so.

64
00:06:43.760 --> 00:06:47.840
In other words, so what happens is Rockefeller and Andrews buy out the Clarks, they split

65
00:06:47.840 --> 00:06:53.360
the business, in other words, the Clarks, I'm sure to their laughing regret, get the wholesale

66
00:06:53.360 --> 00:07:23.360
and Rockefeller and Andrews now set up a specializing refinery and some of the anti-Rockefeller historians claim that Rockefeller somehow squeezed out Clark, well, they were squeezing out, they all saw the situation, Rockefeller and Andrews realized that oil was a big thing, Clark didn't think so, and so Clarks remained with the grocery business, and their tough luck was a lack of foresight, so at any rate, in this case,

67
00:07:23.360 --> 00:07:33.620
So, in this situation, this is 1865, Andrews was a technologist, he was an oil refiner,

68
00:07:33.620 --> 00:07:36.880
in other words, he knew a lot about oil refining. Rockefeller was a financier, he didn't know

69
00:07:36.880 --> 00:07:42.040
much about technology, but he was a great cost person, more of a cutting cost and improving

70
00:07:42.040 --> 00:07:47.000
the finances of the business. And so, Andrews was the inside man handling the technology

71
00:07:47.000 --> 00:07:54.000
in 1867, and Rockefeller by the way, was always great at doing this. He was a genius at finding

72
00:07:56.920 --> 00:08:03.000
good people and getting teams of people in. In 1867 they expand the business, they include

73
00:08:03.000 --> 00:08:09.320
a whole bunch of other people to increase the capital investment and the management team.

74
00:08:09.320 --> 00:08:14.720
They get a bunch of people, a guy named Flagler who becomes a partner, Rockefeller, Andrews

75
00:08:14.720 --> 00:08:19.760
Andrews and Flagler, and Flagler had quite a bit of money. He was also the son-in-law

76
00:08:19.760 --> 00:08:25.840
of Mr. Harkness, who was a big shot, quite wealthy businessman in Cleveland. So they all

77
00:08:25.840 --> 00:08:33.040
come into the business and they start expanding. So by 1867, Rockefeller, Andrews and Flagler

78
00:08:33.040 --> 00:08:36.960
had the top, the biggest refinery in Cleveland, which is the biggest in the country, because

79
00:08:36.960 --> 00:08:40.840
Cleveland was now the center, just as Western Pennsylvania was the center of crude oil,

80
00:08:40.840 --> 00:08:44.640
Cleveland is now the center of refinery. You refine the oil, you ship it across the

81
00:08:44.640 --> 00:08:48.900
The Great Lakes. It's a beautiful kind of situation. You have come up with the

82
00:08:48.900 --> 00:08:52.000
Pennsylvania, first by railroad and eventually when the railroads try to

83
00:08:52.000 --> 00:08:56.840
increase the fare, the rate, they build a pipeline. In other words, the pipeline is a way

84
00:08:56.840 --> 00:09:01.600
to compete with railroads, of course. Railroads can't get you a very high

85
00:09:01.600 --> 00:09:06.360
price and then you ship the thing out, you know, to foreign countries or whatever,

86
00:09:06.360 --> 00:09:14.160
the East. So, in other words, very quickly, by 1867, he got the largest

87
00:09:14.160 --> 00:09:20.720
by 1870, it's the largest refinery in the world, in a very short period of time, it's

88
00:09:20.720 --> 00:09:28.640
almost all the Rockefeller's business genius, what he does is he cuts costs, he innovates

89
00:09:28.640 --> 00:09:35.400
in marketing and in refinery technology and also organization, the first company to have

90
00:09:35.400 --> 00:09:40.840
really centralized business control, committee system, all sorts of stuff where you can supervise

91
00:09:40.840 --> 00:09:46.560
as different parts of the business, course cutting, finding ways of coming in with the

92
00:09:46.560 --> 00:09:50.240
lowest possible rates of transportation, et cetera, et cetera.

93
00:09:50.240 --> 00:09:56.440
So there's a lot of innovation in this kind of business practices.

94
00:09:56.440 --> 00:09:59.720
And with lower costs you have a tremendous increase in supply of kerosene.

95
00:09:59.720 --> 00:10:04.240
And due to Rockefeller, really the largest, mostly responsible for the boom, you have

96
00:10:04.240 --> 00:10:09.560
tremendous, over time, tremendous cut in kerosene prices, the benefit of consumers, the benefit

97
00:10:09.560 --> 00:10:14.480
and everybody, the whole business world and energy gets cheaper and cheaper due to the

98
00:10:14.480 --> 00:10:21.280
expansion of the Rockefeller refinery and the whole Rockefeller system and along with

99
00:10:21.280 --> 00:10:26.980
him come brilliant manager, entrepreneur types, in other words, teams of people who from that

100
00:10:26.980 --> 00:10:30.080
day to this are always invested with the Rockefeller, in other words, the Rockefeller financial

101
00:10:30.080 --> 00:10:33.920
power and political powers we'll see later comes not just from his own wealth and his

102
00:10:33.920 --> 00:10:37.720
own family but teams of families who have been with him ever since.

103
00:10:37.720 --> 00:10:44.720
The Harknesses, the Flaglers, the Prats, Pratt was a big Rockefeller Standard Oil person.

104
00:10:49.000 --> 00:10:53.880
In 1878 they incorporate, I should finish this task here, become the foremost manufacturing

105
00:10:53.880 --> 00:10:57.560
corporation to that point. They're so big by this point they incorporated the Standard

106
00:10:57.560 --> 00:11:03.560
Oil of Ohio, the first of the Standard Oil, beginning of the Standard Oil system, So-hi-o.

107
00:11:03.560 --> 00:11:08.600
of Ohio. In other words, these are all partnerships, and this is one of the first manufacturing

108
00:11:08.600 --> 00:11:17.600
corporations, maybe the first, the big one. You have the Harknesses, the Prats, the Bedfords,

109
00:11:17.600 --> 00:11:22.920
the Flaglors, the Sepulchres, the Bostewakes, so they all, they continue, the Panes, I already

110
00:11:22.920 --> 00:11:27.440
mentioned Secretary of the Navy, Whitney, the Panes, and they're still there, in other

111
00:11:27.440 --> 00:11:31.200
words, they still invest with the Rockefellers, they move with the Rockefellers, it's like

112
00:11:31.200 --> 00:11:36.200
The Rockwells are like a whole flagship, which gives the Rockwells enormous financial power,

113
00:11:36.200 --> 00:11:41.200
because the Rockwells move, this whole group moves with them.

114
00:11:41.200 --> 00:11:50.200
At any rate, so we have the whole, and then they build pipelines and a whole marketing system,

115
00:11:50.200 --> 00:11:56.200
and really standard law begins the idea of retail, of retail breaking bulk and all that sort of stuff.

116
00:11:56.200 --> 00:12:00.200
And very quickly, the Rockwells get the monopoly of the whole world oil market,

117
00:12:00.200 --> 00:12:05.200
They're really the first, very little foreign oil until much later, until the 1890s or so

118
00:12:05.200 --> 00:12:12.200
And so you have, in Western Europe and in Asia, Rockefeller becomes the major exporter of petroleum products

119
00:12:22.200 --> 00:12:28.200
So you have, to show how kerosene prices fell in this whole period

120
00:12:28.200 --> 00:12:33.920
To give you an idea, the enormous benefit to the consumer and the whole economy, it started

121
00:12:33.920 --> 00:12:46.920
off in 1863, the beginning of the oil boom, the price of kerosene was 45 cents a gallon.

122
00:12:46.920 --> 00:12:57.840
By 1872, two years after Sohia was founded, the price of kerosene has fallen to 22 cents

123
00:12:57.840 --> 00:13:11.360
By 1874, it's down to 11 cents a gallon, and by the mid 1890s, in other words at the end

124
00:13:11.360 --> 00:13:22.360
of this great boom here, it's down to 6 cents a gallon, this is an 87% drop from 1863-1899,

125
00:13:22.360 --> 00:13:24.240
enormous!

126
00:13:24.240 --> 00:13:27.840
and those people belly-aching about Rockefeller, St. Albion monopoly, look at the results of

127
00:13:27.840 --> 00:13:32.320
the so-called monopoly, monopoly means you cut production and raise prices, this is an

128
00:13:32.320 --> 00:13:37.840
unbelievable drop in prices as supply and production increases, this is the kind of

129
00:13:37.840 --> 00:13:44.280
monopoly we can all enjoy, you know that.

130
00:13:44.280 --> 00:13:49.440
And there are various stories about how he built this up, they claimed, for example,

131
00:13:49.440 --> 00:13:57.400
that he, he would, well what he tried to do, he wanted to get a monopoly, as I mentioned

132
00:13:57.400 --> 00:14:04.080
briefly last time, he tried to get a monopoly of refining, not, he didn't try for crude

133
00:14:04.080 --> 00:14:07.800
oil because it was impossible, it was crude oil everywhere, and so he didn't try even

134
00:14:07.800 --> 00:14:13.800
for export, for retail business, and at one point by 1879, 1880 he managed to get about

135
00:14:13.800 --> 00:14:19.800
And he got 90% of the refinery business in the United States. That was the peak.

136
00:14:19.800 --> 00:14:28.800
And he started declining after that. And the reason is, as I think I mentioned, is that he would pay full dollar, you know, for anybody, for any monopoly.

137
00:14:28.800 --> 00:14:34.800
He wanted to buy the monopoly and buy the refinery out. And his object was to raise prices and cut production rates.

138
00:14:34.800 --> 00:14:39.800
He was never able to do it, because people would produce refineries just to sell them to Rockefeller, as a sucker.

139
00:14:39.800 --> 00:14:45.800
The story that grew up by historians is that the way he got a monopoly or almost a monopoly

140
00:14:45.800 --> 00:14:50.860
is he undercut people. It's called predatory price cutting. In other words, he deliberately

141
00:14:50.860 --> 00:14:56.860
cut the price and drove them out of business and then raised the price after that. This

142
00:14:56.860 --> 00:15:03.500
is a... large businesses are often accused of this. It never happens. There's not one

143
00:15:03.500 --> 00:15:08.280
case on record of Rockefeller doing that. If you do that, you drive people out of business.

144
00:15:08.280 --> 00:15:23.280
First of all, you make losses in the meantime, let's say, if you finally drive the guy out of business and he goes bankrupt, the plan, as I mentioned last time, the plan is still there, the refinery doesn't disappear, somebody else buys it at an auction, bankruptcy auction, gets it for a solid and it repeats again, and then you're stuck with the same damn thing again.

145
00:15:23.280 --> 00:15:31.280
So Rockefeller never did that, but he did was, the way he got these novelties, he bought them out, he paid a very handsome price for it, bought the refinery.

146
00:15:31.280 --> 00:16:01.280
And there's a story about a guy, for example, who claimed that he was, the press, the anti-Rockefeller press would say, which was mostly, by the way, Morgan subsidized, we'll get to it later, claimed that a guy named George Price, who was a small oil refinery, he was victimized by a Rockefeller, he was driven out of business, nonsense. What he did was, he kept going to different areas, he would kind of cut prices against Rockefeller, he'd build a refinery, Rockefeller would buy it, and he'd go 100 miles away and build another refinery, Rockefeller would have to buy that.

147
00:16:01.280 --> 00:16:07.960
And he made a lot of money that way. He made, for example, he built a refinery and Rockefeller

148
00:16:07.960 --> 00:16:12.960
wanted to buy it all for $20,000, which of course is worth about $200,000 now, $160,000.

149
00:16:12.960 --> 00:16:17.960
And he wouldn't do it. He finally held off for $500,000. Rockefeller had to buy it for

150
00:16:17.960 --> 00:16:20.960
$500,000. Finally, this is one of the reasons why he stopped buying stuff, Rockefeller.

151
00:16:20.960 --> 00:16:25.000
How was it? Why should I pay these jerks what he called blackmail? He just stopped it.

152
00:16:25.000 --> 00:16:35.000
And from then on, the share of Rockford Standard World's share kept going down, steadily after that, of the oil refinery market.

153
00:16:35.000 --> 00:16:52.000
So there were lots of refineries that were, who even in the 1980s, even in this period when you got 90% of the share, there were about 93 independent refineries who were constantly getting 10, 15, 20% of the sales.

154
00:16:52.000 --> 00:17:08.880
What they, as Standard Oil got bigger, they finally got a whole trust set up, a whole

155
00:17:08.880 --> 00:17:14.200
bunch of Standard Oils in many states, Standard Oil of New York, Standard Oil of California,

156
00:17:14.200 --> 00:17:17.200
Standard Oil of Indiana, and they finally, Standard Oil of New Jersey was the basic holding

157
00:17:17.200 --> 00:17:23.920
Company or so-called trust, which they merged into one company, which essentially was the

158
00:17:23.920 --> 00:17:29.560
only company from all the others, and New Jersey became the central Carl Rockefeller

159
00:17:29.560 --> 00:17:36.560
Empire. In 1899, it was capitalized, it was worth 110 million dollars. That was considered

160
00:17:36.720 --> 00:17:41.720
enormous for that period. It's still not as much as various banks, but that was the

161
00:17:41.720 --> 00:17:48.720
one of the biggest corporations

162
00:17:50.920 --> 00:17:53.840
as Rockefeller began

163
00:17:53.840 --> 00:17:59.280
I have a percentage here

164
00:17:59.280 --> 00:18:03.160
got a little bit less than this, by the 1890s it was

165
00:18:03.160 --> 00:18:06.840
by 85% it goes down steadily

166
00:18:06.840 --> 00:18:10.080
I mentioned last time for two basic reasons, one is that

167
00:18:10.080 --> 00:18:18.640
First of all, Rockwell himself began to retire around 1900s. He was born in 1839 and lived until 1947, died at the age of 98.

168
00:18:18.640 --> 00:18:28.320
Anyway, he was less active after, say, 1900, and his sons took over and grandsons, but anyway, his brother,

169
00:18:28.320 --> 00:18:37.440
it began to get bureaucratic, it began to miss out on one, the shift out of kerosene because electricity came in,

170
00:18:37.440 --> 00:18:42.120
and two, the shift into gasoline after 1900 or so, the only reveals came in

171
00:18:42.120 --> 00:18:44.400
and Rockefeller and Standard Oil

172
00:18:44.400 --> 00:18:49.760
they thought, no, no, kerosene is always going to be the key thing, gasoline is a flash in the pan, electricity is a flash in the pan

173
00:18:49.760 --> 00:18:51.160
it just became bureaucratic

174
00:18:51.160 --> 00:18:55.760
and similarly they didn't, they missed out on a Texas-Oklahoma oil boom

175
00:18:55.760 --> 00:18:57.160
so quite late

176
00:18:57.160 --> 00:18:58.680
which permitted

177
00:18:58.680 --> 00:19:02.600
new progressive, new small companies like Texaco and Gulf to come in and start

178
00:19:02.600 --> 00:19:03.640
cultivating

179
00:19:03.640 --> 00:19:10.640
Texas and Oklahoma crude

180
00:19:12.760 --> 00:19:17.240
at any rate the uh...

181
00:19:17.240 --> 00:19:21.000
for example in 1899

182
00:19:21.000 --> 00:19:22.840
sixty

183
00:19:22.840 --> 00:19:26.600
sixty-three percent of the oil refined of the fraction with kerosene

184
00:19:26.600 --> 00:19:28.000
in other words

185
00:19:28.000 --> 00:19:32.200
as much as possible poured stuff into kerosene. By 1919

186
00:19:32.200 --> 00:19:39.200
is only fifteen percent, the rest is only in the gasoline, and the fraction of gasoline is at the top of the fraction and kerosene comes next to that,

187
00:19:39.760 --> 00:19:46.760
you know, it's residual oil way down the bottom, so it's fairly easy to shift proportions between gasoline and kerosene.

188
00:19:49.320 --> 00:19:54.360
My father was an oil company chemist, so I guess I grew up on this sort of stuff.

189
00:19:54.360 --> 00:19:58.400
Anyway, the...

190
00:19:58.400 --> 00:20:04.960
And as I said, when railroads try to charge a high rate, Rockefeller would build pipelines and then compete on the transportation front.

191
00:20:04.960 --> 00:20:10.860
Again, one of the charges against standard oil was that it had a lot of railroad rebates, but everybody else had railroad rebates, as I mentioned before.

192
00:20:10.860 --> 00:20:17.860
Every shipper had rebates. All the other oil refineries had rebates. It was a way of railroads competing with each other, down from list price.

193
00:20:17.860 --> 00:20:33.020
So, by the 1880s, 1890s, Standard Oil had, for example, at their peak, Standard Oil of

194
00:20:33.020 --> 00:20:38.300
New Jersey, which becomes the holding company for all of Standard Oil, 87% of the countries

195
00:20:38.300 --> 00:20:50.980
In the 1880s refining, let's say 1890, they had 33% of the crude oil, so that was their

196
00:20:50.980 --> 00:20:56.180
peak crude oil production, never even tried for a monopoly of crude oil because obviously

197
00:20:56.180 --> 00:21:03.180
The point is, the point of view of the consumer, unless they like us cheap prices, the point

198
00:21:18.500 --> 00:21:25.500
is, the point of view of the consumer, unless they like us cheap prices, the point of view

199
00:21:26.180 --> 00:21:37.180
The predatory price cutting is when you lower the price to drive your competitor out of

200
00:21:37.180 --> 00:21:38.740
business and then raise the price.

201
00:21:38.740 --> 00:21:42.200
It's a temporary thing, that's the whole point.

202
00:21:42.200 --> 00:21:45.120
Price cutting is when you're simply cutting a price and you have competition, you're trying

203
00:21:45.120 --> 00:21:47.160
to get more customers.

204
00:21:47.160 --> 00:21:53.260
See, one thing businessmen never want to do, they never want to raise the price, encourage

205
00:21:53.260 --> 00:21:56.180
There's new competitors to come in, and then when price goes down again, they're stuck

206
00:21:56.180 --> 00:21:57.180
with the new competitors.

207
00:21:57.180 --> 00:22:00.180
You know, that's something, it's called an umbrella for new competitors.

208
00:22:00.180 --> 00:22:03.340
Businessmen are trying to have their prices as low as possible so new competitors won't

209
00:22:03.340 --> 00:22:04.340
come in.

210
00:22:04.340 --> 00:22:05.340
They don't want new competitors.

211
00:22:05.340 --> 00:22:08.940
The only way to keep them out if you don't have a government enforced cartel is to have

212
00:22:08.940 --> 00:22:13.180
the price low enough so the other profits, profit margin low enough so the other competitors

213
00:22:13.180 --> 00:22:16.580
won't be tempted to come in to compete with you.

214
00:22:16.580 --> 00:22:20.900
So the competition is potential competition, but it's very strong for all that, it's very

215
00:22:20.900 --> 00:22:21.900
powerful.

216
00:22:21.900 --> 00:22:27.900
and the competition is going to be healthy, in case the business is going to get back up,

217
00:22:27.900 --> 00:22:33.900
there was an act that was set up, there is a goal that we cannot buy up all of it up,

218
00:22:33.900 --> 00:22:37.900
we are going to have to get it, 100 cannot buy it up.

219
00:22:37.900 --> 00:22:41.900
We have to come back and have it back.

220
00:22:41.900 --> 00:22:43.900
We have to come back and have it back.

221
00:22:43.900 --> 00:22:45.900
All the competition has come up.

222
00:22:51.900 --> 00:22:56.540
be there if you make a misstep. If you raise the price above the free market level, I'd

223
00:22:56.540 --> 00:23:01.500
say, above the competitive level, other than firms can come in. So the point is you don't

224
00:23:01.500 --> 00:23:04.620
need existing, you don't even need existing competitors. You only have the threat of potential

225
00:23:04.620 --> 00:23:09.380
competitors coming in to undercut you. That's what's really necessary. And you always have

226
00:23:09.380 --> 00:23:12.300
that if you don't have the government excluding it. The government doesn't say somehow in

227
00:23:12.300 --> 00:23:17.580
one way or the other, you can't come in and compete. That's what excludes it. So that's

228
00:23:17.580 --> 00:23:33.420
that's really important, the, we're coming out of the influence on politics and what happens

229
00:23:33.420 --> 00:23:36.780
very early in the game is the Rockefeller begins to dominate the Republican Party of

230
00:23:36.780 --> 00:23:44.500
Ohio, Rockefeller was of course a Republican being a pietist, he begins to dominate it

231
00:23:44.500 --> 00:24:07.500
and through, for example, the guy who was the, what I'm basically saying of course is one of the lessons of this whole course in a sense is that on the market the influence of all these people was very healthy, Rockefeller and all these other people, on politics however it's a different story.

232
00:24:07.500 --> 00:24:15.860
Anyway, Rockefeller becomes, through Mark Hannah, Marcus Alonzo Hannah, who was a long-time

233
00:24:15.860 --> 00:24:21.940
state chairman of the Republican Party of Ohio.

234
00:24:21.940 --> 00:24:28.940
And when McKinley ran for president in 1896 from Ohio, Hannah became chairman of the Republican

235
00:24:28.940 --> 00:24:35.720
National Committee, extremely powerful figure running the Ohio Republican Party.

236
00:24:35.720 --> 00:24:42.040
And also happened to be a high school chum of Rockefeller at Central High School in Cleveland.

237
00:24:42.040 --> 00:24:45.360
As I think I mentioned last time, if you happen to be a friend of Rockefeller in grammar school

238
00:24:45.360 --> 00:24:48.920
or high school, you're in great shape for the rest of your life.

239
00:24:48.920 --> 00:24:56.640
High school classmate and chum of Rockefeller, also head of the Hanna Steel Company, which

240
00:24:56.640 --> 00:25:00.880
dealt in the coal and iron and steel business, which dealt at business dealings with standard

241
00:25:00.880 --> 00:25:06.560
Standard Oil, and those would sell coal and steel rails, et cetera, to Standard Oil, closely

242
00:25:06.560 --> 00:25:16.360
tied in, in other words, economically and politically and personally with Standard Oil.

243
00:25:16.360 --> 00:25:22.880
They picked a guy who was a, well, first place in the thing I mentioned, but the Republican

244
00:25:22.880 --> 00:25:29.000
nominees for President, nominations for President, from 1876 to 1920, most of them came from

245
00:25:29.000 --> 00:25:35.720
from Ohio. Remember, Rockefeller begins to get power in 1870 with the founding of Sohoi,

246
00:25:35.720 --> 00:25:41.960
the center of Ohio. 1876, Hayes, Ohio, becomes president, runs for president, republicans

247
00:25:41.960 --> 00:25:52.960
ticket. 1880, Garfield, Ohio, becomes president. 1884-88 was Harrison, well Blaine was not

248
00:25:52.960 --> 00:26:11.960
Robert Harrison of Indiana, 1896, McKinley, Ohio, 1900, same thing, 1908, William Howard Taft of Ohio, 1920, Harding, Ohio.

249
00:26:11.960 --> 00:26:19.960
So you have a very peculiar situation, enormous number of people coming from Ohio, and if you ask the regular mainstream historians, they'll say, well, Ohio is a big state.

250
00:26:19.960 --> 00:26:25.960
It was a big state, but there are other big states, Illinois, New York, why didn't they, Pennsylvania, why didn't they ever get any presidential nomination?

251
00:26:25.960 --> 00:26:30.960
Because Ohio meant Rockefeller, it was Ohio Republican Party in that period equals Rockefeller.

252
00:26:30.960 --> 00:26:40.960
McKinley, for example, who was an extremely bright guy, he was a congressman, was practically a Hanna tool, was a stooge of Hanna.

253
00:26:40.960 --> 00:26:49.960
As a matter of fact, McKinley went heavily into debt. He became governor in 1891. He went heavily into debt.

254
00:26:49.960 --> 00:26:54.960
He actually endorsed the note of some friend of his, a deadbeat.

255
00:26:54.960 --> 00:26:58.960
And he's almost going bankrupt. He owed a hundred and twenty thousand dollars.

256
00:26:58.960 --> 00:27:03.960
He owed a million dollars net, equivalent to present day present dollars.

257
00:27:03.960 --> 00:27:06.960
And there's no way he could pay it. He wasn't rich.

258
00:27:06.960 --> 00:27:13.440
And so Hannah gets together, and of course if you're a governor and you go bankrupt,

259
00:27:13.440 --> 00:27:19.040
your political career goes down in tubes, obviously, and suddenly the governor announces

260
00:27:19.040 --> 00:27:23.440
bankruptcy, even these days he couldn't get away with it.

261
00:27:23.440 --> 00:27:29.840
So Hannah gets together with a whole bunch of other industrialists, including Rockefeller,

262
00:27:29.840 --> 00:27:34.560
of course, and they save McKinley, they bail him out, they just kick in money to McKinley

263
00:27:34.560 --> 00:27:49.560
and they bail on that. Hannah himself, Andrew Carnegie that was not from Pittsburgh, of course, Frick from Pittsburgh, George Pullman from Chicago was a Pullman company, they all get together, Ormer, they all get together and bail out McKinley.

264
00:27:49.560 --> 00:28:01.560
Of course this means of course from then on McKinley was beholden to Hannah and Rockefeller, obviously. Theirs for life. So at any rate, they run up for president in 1896.

265
00:28:01.560 --> 00:28:10.560
Also, Senator Foraker, who was from Ohio, was not really a McKinley Rockefeller person,

266
00:28:10.560 --> 00:28:15.120
he was on the Rockefeller payroll, and every month he collected a check from Standard Oil

267
00:28:15.120 --> 00:28:19.640
from the Rockefeller personally, which meant that he voted in the correct manner.

268
00:28:19.640 --> 00:28:23.400
When Garfield ran in 1880, Rockefeller and Hanna contributed very heavily to the Garfield

269
00:28:23.400 --> 00:28:26.720
campaign, et cetera, et cetera.

270
00:28:26.720 --> 00:28:30.840
Many loans to Foraker and McKinley, in addition, is failing him out of bankruptcy.

271
00:28:30.840 --> 00:28:38.840
So what we have in other words is essentially a Rockefeller person.

272
00:28:38.840 --> 00:28:43.600
What happens now politically, we have a very peculiar situation now coming into the picture.

273
00:28:43.600 --> 00:28:47.160
I've already mentioned at the beginning of the course, I was always puzzled why you had

274
00:28:47.160 --> 00:28:53.760
a hot fight over banking and gold and tariffs, which are now issues that can't get people

275
00:28:53.760 --> 00:28:54.760
interested in at all.

276
00:28:54.760 --> 00:28:55.760
How come everybody's interested?

277
00:28:55.760 --> 00:29:00.400
I was related to the ethno-religious aspect, political parties.

278
00:29:00.400 --> 00:29:04.860
Another question that comes in, and I was always puzzled about, how come

279
00:29:04.860 --> 00:29:08.040
laissez-faire drops out, as we'll see pretty soon in the course.

280
00:29:08.040 --> 00:29:12.200
Laissez-faire, which is very powerful, especially in the Democratic Party,

281
00:29:12.200 --> 00:29:16.920
all of a sudden drops out by 1900, everybody becomes so-called progressive,

282
00:29:16.920 --> 00:29:19.920
and the whole governmental system changes and becomes

283
00:29:19.920 --> 00:29:23.160
more or less a welfare warfare state that we have today.

284
00:29:23.160 --> 00:29:26.960
And nobody sticks up for laissez-faire, and I can say there are various trends

285
00:29:26.960 --> 00:29:29.640
that account for it, but this is very sudden. In other words,

286
00:29:29.640 --> 00:29:36.240
Up until 1896, the powerful laissez-faire sentiment in the United States, after 1900, is almost none.

287
00:29:36.240 --> 00:29:39.640
Obviously, there's something peculiar here which needs to be accounted for.

288
00:29:39.640 --> 00:29:44.640
And what accounts for it is essentially the disappearance of the Democratic Party as we have seen it,

289
00:29:44.640 --> 00:29:48.240
as we have known it in this course until 1896.

290
00:29:48.240 --> 00:29:58.640
1896 was a catastrophic death of the Democratic Party as the laissez-faire libertarian party.

291
00:29:58.640 --> 00:30:05.640
So that's what we have to explore at this point

292
00:30:20.720 --> 00:30:22.320
Let me get my notes here

293
00:30:22.320 --> 00:30:28.160
but what happens, something happens to the political party structure

294
00:30:28.160 --> 00:30:31.880
in the United States.

295
00:30:31.880 --> 00:30:36.200
It begins to be obvious to the foresight of Republicans like Rockefeller, McKinley and

296
00:30:36.200 --> 00:30:37.240
Hanna

297
00:30:37.240 --> 00:30:40.060
that the Democrats were gradually beginning to take over

298
00:30:40.060 --> 00:30:42.960
by about 1890.

299
00:30:42.960 --> 00:30:48.040
And some people saw it earlier than others, but this is a

300
00:30:48.040 --> 00:30:53.440
begins to be clear in 1890, and begins to be clear even before that.

301
00:30:53.440 --> 00:31:06.320
The, for example, I'll give you a couple of instances of what happens in the, okay, there's

302
00:31:06.320 --> 00:31:13.360
a big shift that occurs in 1890, in 1888, Harrison is pressed, Cleveland loses a very

303
00:31:13.360 --> 00:31:18.360
close race for re-election in 1888, Harrison gets in from Indiana, Republican of Indiana,

304
00:31:18.360 --> 00:31:28.360
As a Dark Horse nominee, that's not unusual, close race, but in 1890, before 1899, that was 1889,

305
00:31:28.360 --> 00:31:37.360
the House of Representatives was 51% Republican, which is more or less, more or less classic, you know, very close.

306
00:31:37.360 --> 00:31:43.360
Congressional elections of 1890, the House of Representatives becomes 71% Democrat.

307
00:31:43.360 --> 00:31:48.800
This is phenomenal. Phenomenal had not happened before the Civil War. Phenomenal change.

308
00:31:48.800 --> 00:31:53.320
Very sudden.

309
00:31:53.320 --> 00:32:01.280
Also in 1890, and the Democrats captured every large, almost every large state. Again, very unusual.

310
00:32:01.280 --> 00:32:04.220
The,

311
00:32:04.220 --> 00:32:09.600
another way to look at it was to take the important states of the Midwest.

312
00:32:09.600 --> 00:32:13.800
The Midwest in those days was considered

313
00:32:13.800 --> 00:32:17.440
six states, Illinois, Indiana, Ohio,

314
00:32:17.440 --> 00:32:19.760
Wisconsin, and Michigan.

315
00:32:19.760 --> 00:32:25.120
All very powerful and important states.

316
00:32:25.120 --> 00:32:28.160
In 1888,

317
00:32:28.160 --> 00:32:31.800
the Republicans had six governors. Now, of these six states,

318
00:32:31.800 --> 00:32:34.200
there's only five here.

319
00:32:34.200 --> 00:32:38.280
Iowa, all right.

320
00:32:38.280 --> 00:32:45.280
of these six states, republicans had six governors

321
00:32:45.320 --> 00:32:48.520
and for the congressional delegation, they had five

322
00:32:48.520 --> 00:32:51.740
congressional delegations, although the majority of five states

323
00:32:51.740 --> 00:32:54.860
and congressional delegations, democrats had one

324
00:32:54.860 --> 00:33:01.860
this was fairly standard, in 1890

325
00:33:03.840 --> 00:33:05.580
all the governors

326
00:33:05.580 --> 00:33:10.860
and all the Congressional delegates, all six were Democrats, very unusual, very sudden upheaval.

327
00:33:10.860 --> 00:33:17.840
In other words, there's gradual demographics as we'll see, but something sudden happens as it changes, a sudden trigger

328
00:33:17.840 --> 00:33:23.300
that shifted everything in 1890, which by the way paves the way for the 1892 in Cleveland, not only gets a second term but

329
00:33:23.300 --> 00:33:25.940
captures both houses of Congress for the first time.

330
00:33:25.940 --> 00:33:29.140
This is before the Civil War, we have Cleveland coming in

331
00:33:29.140 --> 00:33:32.820
with a democratic house and a democratic Senate.

332
00:33:32.820 --> 00:33:38.060
It was unusual in that period for the same party to have both houses anyway, certainly for the Democrats.

333
00:33:38.060 --> 00:33:44.660
It was very unusual, a big change happened, something big happened in American politics.

334
00:33:44.660 --> 00:33:49.340
First of all, the demographics. In other words,

335
00:33:49.340 --> 00:33:52.620
in the Midwest and other places,

336
00:33:52.620 --> 00:33:56.780
first of all, Catholics tend to have a higher birth rate than Protestants.

337
00:33:56.780 --> 00:33:59.380
And one thing,

338
00:33:59.380 --> 00:34:01.900
Catholics usually do not employ birth control

339
00:34:01.900 --> 00:34:07.860
in that period. So you have a higher natural birth rate, plus the fact that immigration

340
00:34:07.860 --> 00:34:13.100
in this period, from 1870s and 1880s, immigration was largely Catholic or German Lutheran, which

341
00:34:13.100 --> 00:34:21.620
was high Lutheran, liturgical Lutheran. In other words, in the Midwest for example, there's

342
00:34:21.620 --> 00:34:31.060
a big decline of proportion of Baptists and Methodists, and a big increase in German Lutherans

343
00:34:31.060 --> 00:34:36.260
and German Catholics. By 1890, the Catholics were the largest single group, religious group, in the Midwest.

344
00:34:36.260 --> 00:34:44.260
It was not true in 1870, I'd say. So, you have the demographics gradually building up the Catholics and German Lutherans

345
00:34:44.260 --> 00:34:52.260
as a majority, getting to be a majority. This is a general trend. We still have to account for the sudden change in 1890.

346
00:34:52.260 --> 00:34:58.260
But over the 20-year period, as I say, the far side of the republic began to realize that we're in deep trouble here.

347
00:34:58.260 --> 00:35:09.260
The same way in the 1840s and 50s, the Democrats were becoming a majority party, but they were shafted by the slavery question, which split the Democrats.

348
00:35:09.260 --> 00:35:14.260
But here there's no slavery question. The Republicans realized they're in deep trouble here, they've got to do something.

349
00:35:14.260 --> 00:35:23.260
What the Republicans began to try to do, the German Lutherans were the swing vote.

350
00:35:23.260 --> 00:35:33.260
In other words, the Catholics always voted Democratic throughout, and the German Lutherans tended to vote Democratic, except when they can be gotten on the Catholic issue.

351
00:35:33.260 --> 00:35:41.260
In other words, the German Lutherans hated the German Catholics. In the areas where the German Lutherans did not live near the German Catholics, they voted completely Democratic.

352
00:35:41.260 --> 00:35:47.260
When they were living nearby, they started voting Republicans. It's part of the ancient law to know them is to hate them.

353
00:35:47.260 --> 00:35:51.260
You live near people you don't like, you start voting against them.

354
00:35:51.260 --> 00:35:55.660
So the Republicans, especially the Rockefeller-McKinley people were quite far-sighted in this thing.

355
00:35:55.660 --> 00:36:03.060
I mean, Rockefeller was a favorite of Prohibition, but he realized that he preferred profits to Prohibition and preferred victory.

356
00:36:03.060 --> 00:36:05.060
So they began to get pragmatic.

357
00:36:05.060 --> 00:36:11.060
So the Republicans, the shrewd Republicans like McKinley and Rockefeller and Hannah,

358
00:36:11.060 --> 00:36:13.860
said, look, what you've got to do, you've got to get the German Lutheran vote.

359
00:36:13.860 --> 00:36:17.060
The way to get the German Lutheran vote is for Christ's sake, drop Prohibition.

360
00:36:17.060 --> 00:36:19.660
The one thing the German Lutherans hated above all things is Prohibition.

361
00:36:19.660 --> 00:36:22.220
even more than the hate of the Catholics.

362
00:36:22.220 --> 00:36:24.700
So, as I say, you have the German beer drinking.

363
00:36:24.700 --> 00:36:26.460
You know, you leave church on Sunday,

364
00:36:26.460 --> 00:36:28.540
immediately you're prepared to a beer garden.

365
00:36:28.540 --> 00:36:32.060
This is German culture, German Catholic and Lutheran.

366
00:36:32.060 --> 00:36:34.460
They said they didn't want to have fanatics outlawing beer.

367
00:36:34.460 --> 00:36:37.340
So the first, so the moderate began to drop prohibition.

368
00:36:37.340 --> 00:36:39.660
All right, forget about Sunday Blue Law,

369
00:36:39.660 --> 00:36:40.620
forget about prohibition.

370
00:36:40.620 --> 00:36:41.260
We love it.

371
00:36:41.260 --> 00:36:44.220
We love you prohibitionists, but cool it.

372
00:36:44.220 --> 00:36:45.100
When they started doing that,

373
00:36:45.100 --> 00:36:46.700
they started picking up German Lutheran votes.

374
00:36:46.700 --> 00:36:47.660
On the other hand, they started losing

375
00:36:47.660 --> 00:36:49.340
their militant prohibitionist votes.

376
00:36:49.340 --> 00:36:58.340
The republicans were in deep trouble here. They get more moderate, they pick up German Lutherans, especially if they whip up anti-Catholic sentiment, like the public school system.

377
00:36:58.340 --> 00:37:12.340
If you can maneuver it, they started saying the Catholics are a menace to our schools. For example, McKinley won the governorship of Ohio in 1891, I think, bucking this whole Trento and the Democrats by attacking Catholics.

378
00:37:12.340 --> 00:37:18.340
the anti-Catholic and menace of the schools, parochial schools in those days were getting government subsidies

379
00:37:18.340 --> 00:37:23.340
so attacking that, attacking the menace of the schools, they couldn't be very clear about it

380
00:37:23.340 --> 00:37:27.340
because they couldn't attack parochial schools, per se, because then the Lutherans would get upset

381
00:37:27.340 --> 00:37:32.340
they had to just whip up anti-Catholic sentiment and drop prohibition, which is what McKinley did

382
00:37:32.340 --> 00:37:36.340
on the other hand, they started losing prohibitionist votes, they said, you're selling out

383
00:37:36.340 --> 00:37:57.340
The result you had in the 1870s, for example, the Greenback Party, which was pro-inflation and pro-prohibition, all pietists, there was not a single Greenbacker outside of the South, there was no Catholics and Lutherans who were Greenbackers, there were ex-Republicans, ex-Pietists, Methodists, Baptists, etc.

384
00:37:57.340 --> 00:38:05.340
And then in the 1880s came the Prohibitionist Party, also bitter because of the Republican sell-out, they thought.

385
00:38:05.340 --> 00:38:15.840
What happened, for example, to give you an indication, in 1872, when the Democrats could have been resurgent,

386
00:38:15.840 --> 00:38:20.340
the Democrats, like idiots, nominated Horace Wheely for president, who was a Republican anyway,

387
00:38:20.340 --> 00:38:26.340
who was a pietist and a prohibitionist and sort of semi-socialist, immediately lost all of the Democratic votes,

388
00:38:26.340 --> 00:38:30.840
he was smashed by Grant in 1872, and they didn't do that again.

389
00:38:30.840 --> 00:38:48.040
So in 1872, in Wisconsin, I think and in Ohio, the Republican Institute of Prohibition, State Prohibition under the agitation of the Women's Prayer League for outlawing alcohol.

390
00:38:48.040 --> 00:38:56.840
Women are always in the forefront of the pious in many ways and so in Wisconsin, in Illinois, in Wisconsin, outlawed liquor.

391
00:38:56.840 --> 00:39:00.840
Immediately the German Lutherans voted, beat the Democrats, I mean beat the Republicans,

392
00:39:00.840 --> 00:39:03.880
shifted the Democrats and Prohibition was repealed.

393
00:39:03.880 --> 00:39:08.280
So the moderates, if you want to call them that, the pragmatists in the Republican Party

394
00:39:08.280 --> 00:39:12.600
in Ohio, Wisconsin realized, look, we've got to drop this liquor crap, we love the Prohibitionists,

395
00:39:12.600 --> 00:39:17.160
we've got to shove them aside, and they set up a Prohibitionist Party and they lose votes

396
00:39:17.160 --> 00:39:18.160
that way.

397
00:39:18.160 --> 00:39:24.520
But the pragmatists stuck to the idea, look, the more German Lutherans, the more Prohibitionists.

398
00:39:24.520 --> 00:39:32.200
At any rate, that was the way they try to finesse this.

399
00:39:32.200 --> 00:39:35.160
So what happened in 1890?

400
00:39:35.160 --> 00:39:40.440
What happened in 1890 is basically the specter of prohibition suddenly hit the year before

401
00:39:40.440 --> 00:39:45.120
in the Midwest.

402
00:39:45.120 --> 00:40:01.520
In both Wisconsin and in I think Indiana, in Indiana, Ohio, in Indiana the prohibition

403
00:40:01.520 --> 00:40:06.720
suddenly raises its ugly head in 1889, Republicans are sort of dominant in the state, all of

404
00:40:06.720 --> 00:40:14.280
a sudden they start, they start, what had happened was this, the Ohio ban had prohibited

405
00:40:14.280 --> 00:40:18.240
The sale of liquor on Sunday, in these old saloons as they're called in those days and

406
00:40:18.240 --> 00:40:23.440
liquor stores, they didn't, they were shrewd enough not to enforce it in the German-speaking

407
00:40:23.440 --> 00:40:26.880
areas, especially Cincinnati, which was solely German.

408
00:40:26.880 --> 00:40:27.880
So this is very shrewd.

409
00:40:27.880 --> 00:40:32.760
In pious areas, you enforce it to the hilt, in German areas, how will it?

410
00:40:32.760 --> 00:40:36.080
So the prohibitionists, of course, got upset at this, they insist, they petitioned to the

411
00:40:36.080 --> 00:40:43.400
governor to enforce the law prohibiting the sale of liquor on Sunday, this is 1889.

412
00:40:43.400 --> 00:40:47.000
The governor was Foraker, the prohibitionist anyway.

413
00:40:47.000 --> 00:40:51.200
The Cincinnati group, the petition, the governor to do this was called the Cincinnati Law and

414
00:40:51.200 --> 00:40:52.200
Order Association.

415
00:40:52.200 --> 00:40:55.960
In Cincinnati, among the Germans, they were known as the Evangelical Stranglers.

416
00:40:55.960 --> 00:41:00.360
In other words, they were pietists and stranglers, trying to crush liberty.

417
00:41:00.360 --> 00:41:06.680
So Foraker says, okay, happy to do this, and he removed the police of Cincinnati and the

418
00:41:06.680 --> 00:41:07.680
states can do this.

419
00:41:07.680 --> 00:41:09.800
There's no real home rule unless the states desire it.

420
00:41:09.800 --> 00:41:15.400
He kicked out all the police, the police board which is, they had a board instead of one commissioner, kicked out the board, put in a new board

421
00:41:15.400 --> 00:41:17.400
and ordered them to enforce the law of the hilt

422
00:41:17.880 --> 00:41:19.800
At this point was called,

423
00:41:19.800 --> 00:41:24.040
in a merger was called the saloon keepers rebellion, the saloon keepers of Cincinnati rose up

424
00:41:24.920 --> 00:41:30.600
a couple hundred of them, there's 300 German saloon keepers in Cincinnati, said we disobeyed the law and I sell liquor anyway, looks to you

425
00:41:31.880 --> 00:41:37.000
and law and order associations petitioned for enforcement, crushed them and so forth and so on and

426
00:41:39.800 --> 00:42:09.800
What happened then is the Democrats truly said, we're in favor of home rule, we want each city and area to be able to have its own kind of liquor law and as a result, of course, Florek was kicked out in 1890 and the masses kicked out, the German masses rose up, Lutheran, it was called the Lutheran Rebellion in 1890 and Florek was kicked out, the Democrats came in and repealed the, you know, stopped enforcing the ban on Sunday liquor. So that was, later on, next time I'll go into more

427
00:42:09.800 --> 00:42:16.800
But that sort of thing happened in each state in the Midwest, prohibitionism and anti-German language education.

428
00:42:16.800 --> 00:42:22.800
Between the two of them, they managed to disaffect the German Lutherans almost permanently.

429
00:42:22.800 --> 00:42:26.800
Not quite permanently, but certainly for a lot of people immigrating in this period.

430
00:42:26.800 --> 00:42:33.800
But this is a peak, 1880s and 1890s, a peak of Irish Catholic and German Catholic and German Lutheran immigration.

431
00:42:33.800 --> 00:42:38.800
Even though there was Scandinavian pious immigration, they were outstripped.

432
00:42:38.800 --> 00:42:47.800
by German and Irish. Also, there was a more higher birth rate among Catholics and Lutherans than were among pietists.

433
00:42:47.800 --> 00:42:57.800
In fact, it's still true. So that the immigration, plus the birth rate, meant that slowly but surely the Democratic Party was becoming a majority party in the United States.

434
00:42:57.800 --> 00:43:03.800
There's also a one-party system in the South, but we'll get to that in a democratic ticket.

435
00:43:03.800 --> 00:43:08.280
so slowly but surely the demographics were such

436
00:43:08.280 --> 00:43:11.280
the same thing was happening by the way in the 1840s except at that point

437
00:43:11.280 --> 00:43:14.040
slavery split the democratic party in two

438
00:43:14.040 --> 00:43:17.800
and giving room for the republicans to finally come in

439
00:43:17.800 --> 00:43:21.960
there's no slavery issue now so it looked as if the democratic party was in great shape

440
00:43:21.960 --> 00:43:25.120
and the republicans then had to do something and we'll see

441
00:43:25.120 --> 00:43:28.400
one of the things which spurred a radical

442
00:43:28.400 --> 00:43:30.080
sudden shift

443
00:43:30.080 --> 00:43:32.160
to the democrats in 1890

444
00:43:32.160 --> 00:43:40.360
When the Democrats took both houses of Congress, took the House by a huge majority, and finally

445
00:43:40.360 --> 00:43:47.000
paving the way for Rover Cleveland's in effect landslide victory, especially comparing both

446
00:43:47.000 --> 00:43:52.240
houses of Congress with him, unprecedented, in 1892.

447
00:43:52.240 --> 00:44:00.320
The way was paved by sudden outbursts of pietous fervor, especially prohibitionism.

448
00:44:00.320 --> 00:44:05.480
So the Republicans in the 1870s were trying to put in prohibition, for example, 1872

449
00:44:05.480 --> 00:44:12.040
in I think in Iowa, Illinois, Wisconsin, and the next year the Germans shifted, Democrat,

450
00:44:12.040 --> 00:44:15.160
and they learned their lesson, they dropped from the prohibition.

451
00:44:15.160 --> 00:44:18.960
However, the prohibitionists, the Republicans were caught and had a real problem.

452
00:44:18.960 --> 00:44:23.080
On one hand, if they waffle on prohibition, then they'll capture German Lutheran votes.

453
00:44:23.080 --> 00:44:27.400
On the other hand, they lose the fanatical prohibitionists and pious types, who then

454
00:44:27.400 --> 00:44:50.400
The Democrats always had much greater party loyalty than the Republicans and Whigs, the Republicans were interested in their great moral ideas, and so as they felt the Democrats, their leadership was getting a little too compromise, a little too moderate or sell-out-y, they formed a new party, the Greenback Party in the 1870s, which was an inflationist party.

455
00:44:50.400 --> 00:44:56.400
Again, inflation fits in here. Inflation meant the people were getting more purchasing power from the government.

456
00:44:56.400 --> 00:44:59.400
The government was paternalistically giving them purchasing power.

457
00:44:59.400 --> 00:45:04.400
So either paper money inflation, which was the greenbacks, or later on the free silver agitation,

458
00:45:04.400 --> 00:45:09.400
where silver becomes, in addition to gold, the inflationist symbol.

459
00:45:09.400 --> 00:45:15.400
And in the 1880s, the Prohibition Party, which got very powerful and takes a lot of votes away from the Republicans.

460
00:45:15.400 --> 00:45:45.400
So the Republicans are sort of caught between trying to, but they realized that demographics were with the Germans, and so they began to get more and more modern, especially headed by McKinley and the Rockefeller Empire, and there was Rockefeller, McKinley and Hanna in Ohio, who were leading the, Rockefeller of course loved the pietas, but he said, look, we love prohibition, but a profit is more important than morality, quote unquote, and therefore we have to drop these guys. So, at any rate, but they didn't, but in late 1880s comes a big circle,

461
00:45:45.400 --> 00:45:49.800
The surge of prohibition sentiment, and I've already gone through what happened in Ohio.

462
00:45:49.800 --> 00:45:56.240
In Ohio, when they enforced prohibition of the hilt, the Germans rebelled, in essence

463
00:45:56.240 --> 00:46:04.280
the German Catholics and the Lutherans, voted democratic in a landslide, and in 1889, the

464
00:46:04.280 --> 00:46:10.080
governor of Foraker, who was a hardcore prohibitionist, was kicked out.

465
00:46:10.080 --> 00:46:14.920
1891, two years later, McKinley comes back as governor, but comes back in a very different

466
00:46:14.920 --> 00:46:44.920
Robert Pickett drops prohibition. He says, okay, we're not going to enforce prohibition in German areas, in other words, in wet areas, so to speak, but prohibitions are called the dries, and the people who drink alcohol are called the wets, so in areas where they, in localities, communities where the people drink, we're not going to enforce it. That was essentially the compromise that the McKinley people put over it. And they openly attack prohibitionists as meddling fanatics and things like that.

467
00:46:44.920 --> 00:46:50.120
which is something only the German Lutherans or Catholics would say, McKinley people began

468
00:46:50.120 --> 00:46:54.800
to talk in the same way. And also another thing McKinley did, presaging a very important

469
00:46:54.800 --> 00:47:00.280
thing that happened in 1896 which we're leading up to, a climactic year, he began to drop,

470
00:47:00.280 --> 00:47:04.400
the Republican Party had always been, since the Civil War, the inflationist party, in

471
00:47:04.400 --> 00:47:13.400
other words, a party of greenbacks and paper money, irredeemable paper money, and silver

472
00:47:13.400 --> 00:47:20.400
later on. The Democrats were the hard-money party, the gold standard party, and so it

473
00:47:23.200 --> 00:47:29.560
took the Republicans 18 years of kicking and screaming to go back to the gold standard

474
00:47:29.560 --> 00:47:34.440
and eliminate greenback money. In other words, we were on an irredeemable fiat paper money

475
00:47:34.440 --> 00:47:40.960
standard from 1863 or 1862 to 1879. It took 14 years after the Civil War was over for

476
00:47:40.960 --> 00:47:44.960
The Republicans would be drag-kicking and screaming back to the gold standard.

477
00:47:44.960 --> 00:47:48.760
Even then it was technically gold and silver standard and so there was a big fight about

478
00:47:48.760 --> 00:47:51.760
silver and gold and I don't want to get into technicalities of it.

479
00:47:51.760 --> 00:47:55.960
But the Republicans were known as the soft money party, which fits in with piety, which

480
00:47:55.960 --> 00:47:59.640
fits in with the idea that the government should be helping people out and increasing

481
00:47:59.640 --> 00:48:02.240
their so-called purchasing power.

482
00:48:02.240 --> 00:48:06.520
The Democrats were the hard money party and so another thing the Democrats wanted to restore

483
00:48:06.520 --> 00:48:07.520
free banking.

484
00:48:07.520 --> 00:48:13.160
They want to eliminate the national banking system, which essentially had a centralised

485
00:48:13.160 --> 00:48:18.200
kind of banking system, susceptible to inflation.

486
00:48:18.200 --> 00:48:22.640
In 1891, McKinley shifts his position, this is only in a local level, so it wasn't picked

487
00:48:22.640 --> 00:48:26.760
up much by the national media, so to speak.

488
00:48:26.760 --> 00:48:30.880
In Ohio, he begins to come out in favour of the gold standard for the first time, it presages

489
00:48:30.880 --> 00:48:37.040
his big shift in 1896 as president, presidential candidate, because they began to realise that

490
00:48:37.040 --> 00:48:42.040
German Lutherans and German Catholics, the one thing above all else, of course they're against prohibition.

491
00:48:42.040 --> 00:48:46.040
The other thing is they're very much in favor of the gold standard. They hated inflation, purple passion.

492
00:48:46.040 --> 00:48:50.040
They're pro-gold because anything else deteriorates the value of their savings.

493
00:48:50.040 --> 00:48:56.040
The Germans are a very thrifty group and they realize that inflation is a way of spoiling their savings.

494
00:48:56.040 --> 00:49:02.040
So in order to capture the German Lutheran vote, which in the Middle West was a great swing vote,

495
00:49:02.040 --> 00:49:08.280
Two things to do, you drop prohibition, scuttle it, you start talking about gold, and McKinley

496
00:49:08.280 --> 00:49:13.640
was the first one to do that realizing the demographics of the situation.

497
00:49:13.640 --> 00:49:19.560
A similar thing happened in Indiana, I'm going to go through this, yeah, it began to drop

498
00:49:19.560 --> 00:49:25.600
prohibition, shelve it, forget it, put it on the back burner, and they began to adopt

499
00:49:25.600 --> 00:49:26.600
a pro-gold position.

500
00:49:26.600 --> 00:49:40.500
gold standard position as a hard money anti-inflationist position, which was very much the major German

501
00:49:40.500 --> 00:49:46.460
economic, the German-American economic program, very much a favorite goal as a hard money

502
00:49:46.460 --> 00:49:50.040
anti-inflationist party.

503
00:49:50.040 --> 00:49:55.800
So that fit in with a pietist, as I've already talked about, the pietist economic program

504
00:49:55.800 --> 00:50:01.800
And it was pro-protective tariff and pro-inflation. It was part of big government paternalism.

505
00:50:01.800 --> 00:50:02.800
Yeah.

506
00:50:02.800 --> 00:50:03.800
Another question.

507
00:50:03.800 --> 00:50:04.800
Another question.

508
00:50:04.800 --> 00:50:07.800
Is a pietist a person or a religion?

509
00:50:07.800 --> 00:50:11.800
No, no. A pietist is just the opposite.

510
00:50:11.800 --> 00:50:12.800
Huh?

511
00:50:12.800 --> 00:50:13.800
That's atheist.

512
00:50:13.800 --> 00:50:14.800
Yeah.

513
00:50:14.800 --> 00:50:15.800
No, very different.

514
00:50:15.800 --> 00:50:18.800
A pietist are very strong believers in a pietist manner.

515
00:50:18.800 --> 00:50:19.800
That's different.

516
00:50:19.800 --> 00:50:23.800
No, that's atheist or agnostic or whatever.

517
00:50:23.800 --> 00:50:33.960
While McKinley begins the ship as an Ohio Republican, not as a national picket, he begins

518
00:50:33.960 --> 00:50:37.680
being a far-sighted politician, he begins to realize that you have to capture the Germans

519
00:50:37.680 --> 00:50:40.480
in order for the Republicans to win, you have to get the German Lutheran vote, the German

520
00:50:40.480 --> 00:50:41.480
Lutheran is a swing vote.

521
00:50:41.480 --> 00:50:46.200
In order to get the German Lutheran vote, you have to forget about prohibition and start

522
00:50:46.200 --> 00:50:51.600
talking about gold as an important monetary standard.

523
00:50:51.600 --> 00:50:57.600
Anyway, in Wisconsin and Indiana the same thing happens. Prohibition again was the key thing.

524
00:50:57.600 --> 00:51:14.600
And in Iowa, also an important middle western state, again prohibition becomes the key point.

525
00:51:14.600 --> 00:51:18.600
Iowa was a state which had never been democratic. It had always been controlled by the Republican Party.

526
00:51:18.600 --> 00:51:30.600
The other states were much closer. In other words, Illinois, Indiana, Wisconsin, Ohio had been a swing state.

527
00:51:30.600 --> 00:51:39.600
Iowa had always been a Republican. And after the Civil War, Iowa became the subject of intense prohibitionist pressure.

528
00:51:39.600 --> 00:51:46.200
As a matter of fact, the Prohibitionist Party really begins in Iowa, and also big was the

529
00:51:46.200 --> 00:51:53.800
first big Prohibitionist organization, the Women's Christian Temperance Union, extremely

530
00:51:53.800 --> 00:52:03.960
powerful group, the WCTU.

531
00:52:03.960 --> 00:52:15.960
There have been organized females with a stronghold of pious as there always have been and they started having, before the Prohibitionist Party was founded,

532
00:52:15.960 --> 00:52:27.960
before the WCT was founded, they had women's prayer groups against alcohol and they'd get together and they'd picket some bar, saloon they'd be called, and with prayer leagues,

533
00:52:27.960 --> 00:52:34.920
and development of the Women's Christian Temperance Union and in 1875 they almost

534
00:52:34.920 --> 00:52:41.560
captured the Republican Party of Iowa, the Prohibitionists, with General Weaver

535
00:52:41.560 --> 00:52:45.720
who later became the populist presidential candidate in 1890s. All these

536
00:52:45.720 --> 00:52:50.360
groups were very similar, the Prohibitionists, the Greenbacks Party in the 70s,

537
00:52:50.360 --> 00:52:55.400
the Prohibitionists in the 80s, the Populist Party in the 90s, all very very similar.

538
00:52:55.400 --> 00:53:00.560
Finally, in 1879, a prohibition was captured by the Republican Party of Iowa at a convention.

539
00:53:00.560 --> 00:53:01.560
They pushed for total prohibition.

540
00:53:01.560 --> 00:53:06.720
See, what they had had previous to that, they had a statute prohibiting alcohol, but then

541
00:53:06.720 --> 00:53:07.720
giving local option.

542
00:53:07.720 --> 00:53:09.760
In other words, local communities could have liquor.

543
00:53:09.760 --> 00:53:13.400
You still have that in many states, by the way, in the south and southwest.

544
00:53:13.400 --> 00:53:17.280
Different counties will have different local options, with, of course, high license taxes.

545
00:53:17.280 --> 00:53:21.960
If you have any liquor store or liquor distillery or something, you have to pay a high tax.

546
00:53:21.960 --> 00:53:26.480
These are methods of quasi-prohibition, which we still have in the United States, of course.

547
00:53:26.480 --> 00:53:31.240
At any rate, total prohibition had only been put in by two states, Maine and Kansas, both

548
00:53:31.240 --> 00:53:36.800
of course extreme-private states, outlawing all liquor, period.

549
00:53:36.800 --> 00:53:40.280
So they tried to do that in Iowa.

550
00:53:40.280 --> 00:53:44.160
In July 1882, they had a constitutional amendment, in other words, outlaw all liquor in the state

551
00:53:44.160 --> 00:53:50.000
of Iowa, and was defeated, excuse me, in the past.

552
00:53:50.000 --> 00:54:01.000
The big push was the temperance alliance, was the main group in favor of it, saying this is morality, Christian morality and American civilization require the total prohibition of law and alcohol.

553
00:54:01.000 --> 00:54:09.000
The Democrats, the Lutherans and Catholics fought back by saying these are puritanical fanatics, fanatical preachers.

554
00:54:09.000 --> 00:54:14.000
Holy Joe's is another term which is often used by Catholics against pietists.

555
00:54:14.000 --> 00:54:27.000
and aggressing against personal liberty, the amendment passed by 55% to 45%, it was then outlawed on technicality, in other words, the Supreme Court said it didn't, you know, some clause that didn't quite work

556
00:54:27.000 --> 00:54:40.000
but the result of this was a big shift of German votes in the Democratic Party, the Republicans got a little antsy about this, they went back on a statute, they didn't want to have a constitutional amendment, they favored alien and old German voters permanently in Iowa, so

557
00:54:40.000 --> 00:54:45.640
So, they went back to statutory prohibition, they kept stepping that up.

558
00:54:45.640 --> 00:54:52.240
Finally, in 1889, the enforcement kept expanding, an ultra-piatist takes over as governor, first

559
00:54:52.240 --> 00:54:57.760
Republican, in Iowa, and he starts, he's an amateur politician, he wants to get into Republicans

560
00:54:57.760 --> 00:55:03.640
and not the Democrats, as they believe that you can only ensure personal liberty through

561
00:55:03.640 --> 00:55:04.960
a political party system.

562
00:55:04.960 --> 00:55:08.920
We're always much more party loyal than the Republicans, Republicans are much more interested

563
00:55:08.920 --> 00:55:13.080
and they're abandoning the party if they waffle a little bit.

564
00:55:13.080 --> 00:55:19.080
So Governor Hutchinson was an amateur politician, he was a grocer, he was just gone into politics

565
00:55:19.080 --> 00:55:25.120
and therefore he wanted to of course outlaw a liquor to the hilt and he says in his speech

566
00:55:25.120 --> 00:55:30.400
that prohibition is a struggle for morality and for the true devotion of the human race.

567
00:55:30.400 --> 00:55:37.520
This is a hardcore religious thing with him, of course, and he said that at civilization

568
00:55:37.520 --> 00:55:42.520
The fight is a fight between modern civilization on the one hand and the cursed barracudas of the saloon, as he put it.

569
00:55:42.520 --> 00:55:47.520
The saloon, by the way, we'll get to this later on in the course when we get to the urban problems.

570
00:55:47.520 --> 00:55:52.520
The saloon, in addition to being the fountainhead of liquor, of course.

571
00:55:52.520 --> 00:55:58.520
Saloon, you see, used to serve liquor and food at the same time. It was a little bit different from a bar.

572
00:55:58.520 --> 00:56:06.520
At any rate, the saloon was, first of all, the social center of all Catholic and Lutheran males.

573
00:56:06.520 --> 00:56:10.520
And it still is, by the way, in New York or in a big city.

574
00:56:10.520 --> 00:56:18.520
So what happens is the Irish or German or whatever, male, after coming home at night, repairs to the local saloon.

575
00:56:18.520 --> 00:56:23.520
Spends the whole evening drinking with his buddies and talking politics and stuff like that, socializing.

576
00:56:23.520 --> 00:56:32.520
Women do other stuff, but this is basically what it still is, I think, the Catholic, Lutheran, so-called ethnic social life.

577
00:56:32.520 --> 00:56:41.520
So the saloon keeper becomes the key political, he becomes the key political boss of his area because everybody takes their political views from the saloon keeper.

578
00:56:41.520 --> 00:56:48.520
He becomes sort of like a local ward healer. So Patty somebody, who do you vote for, Patty? I'm voting for O'Driscoll or something like that.

579
00:56:48.520 --> 00:56:57.520
Everybody in the neighborhood votes for O'Driscoll. So the saloons are not only the fountainhead of evil to the fighters, they're also the fountainhead of urban, ethnic, political power.

580
00:56:57.520 --> 00:57:02.960
And so if they could smash the saloon, they also smash the Democratic Party ethnic machines,

581
00:57:02.960 --> 00:57:08.160
in other words, the political machines or political, the major political strength of the hated opposition.

582
00:57:08.160 --> 00:57:12.960
It was a two-fold thing. One, if you're attacking a saloon, you're destroying evil demon rum,

583
00:57:12.960 --> 00:57:15.920
and also you're destroying the political social base of the opposition.

584
00:57:17.360 --> 00:57:27.040
So, in this fight, backing Governor Hutchinson in this fight to crush a little liquor in Iowa,

585
00:57:27.040 --> 00:57:57.040
were, of course, the Women's Christian Temperance Union, prohibitionists, the Good Templars and other temperance groups, the Methodist Church, of course, very heavy in this and also another thing they wanted to push through was outlawing all desecration of the Sabbath, once again, in other words, any activity on Sunday, not going to church should be outlawed, it's all part of the same schtick, including, by the way, they wanted to outlaw all newspapers on Sunday, because newspapers, any activity

586
00:57:57.040 --> 00:58:01.040
Newspapers, baseball games, and railroads. Nothing should be able to move on Sunday.

587
00:58:01.040 --> 00:58:05.040
This was the objective of the pious fanatics.

588
00:58:05.040 --> 00:58:11.040
So what the Democrats did, and they did very shrewd things, the Iowa governorship election in 1889,

589
00:58:11.040 --> 00:58:14.040
they picked a former Republican, they picked a guy who himself was a temperance person,

590
00:58:14.040 --> 00:58:18.040
that was himself abstaining from alcohol. It was against prohibition.

591
00:58:18.040 --> 00:58:21.040
It was against using government force to do it.

592
00:58:21.040 --> 00:58:25.040
And so they picked this guy who would appeal to moderate Republicans, so to speak,

593
00:58:25.040 --> 00:58:38.040
and Horace Boyce, and in 1889 he won, the Democrats won with Boyce for the first time in the history of Iowa, won the election by 50% to 48%,

594
00:58:38.040 --> 00:58:46.040
and for the first time the Democrats won the legislature, excuse me, the Congress, congressional delegation in Congress.

595
00:58:46.040 --> 00:58:49.040
So this, he was re-elected again the following year, two years later.

596
00:58:49.040 --> 00:58:53.040
So in other words, the Democrats win in Iowa for the first time in the history of Iowa

597
00:58:53.040 --> 00:58:58.040
because they're fighting extreme prohibitionists and anybody who's slightly moderate on the issue shifts

598
00:58:58.040 --> 00:59:02.040
to sort of a moderate Democrat and wins. So the handwriting is on the wall here.

599
00:59:02.040 --> 00:59:11.040
Three states, three key Midwestern states, Ohio, Indiana and Iowa, go Democratic on a prohibition question.

600
00:59:11.040 --> 00:59:16.040
The prohibition is being taken up by the Republican Party in that area.

601
00:59:16.040 --> 00:59:21.200
The other two states were swung to the Democrats on a similar question, not on liquor, but

602
00:59:21.200 --> 00:59:23.240
on something else.

603
00:59:23.240 --> 00:59:27.240
Another client is concerned, of course, with education, as I already mentioned, crush the

604
00:59:27.240 --> 00:59:31.680
Catholic or parochial school systems, force everybody into the public school where they

605
00:59:31.680 --> 00:59:36.040
can learn Protestantism, WASP, Protestantism.

606
00:59:36.040 --> 00:59:42.360
So in 1889, the new governor of Wisconsin, Governor William Hoard, a Republican governor,

607
00:59:42.360 --> 01:00:12.360
We've got an amateur politician, the first time he's been in politics, he's a newspaper publisher, and a fanatical pietist, and he passes a law, well, first of all, there was a law in the books, a compulsory education law, which was general, you know, had been passed by many states, this is a law, however, requiring, I get this, not only should everybody have to go to school, all education has to be in the English language, even private schools, in other words, outlawing all use of German language

608
01:00:12.360 --> 01:00:17.360
and many private or parochial schools and he starts enforcing this. This has been on the books, nobody pays attention to it.

609
01:00:17.360 --> 01:00:28.360
He's now enforced the notorious Bennett Law, passed by State Senator Bennett, outlawing all German language educations, what it amounts to.

610
01:00:28.360 --> 01:00:35.360
And of course, much of the parochial schools, Catholic and Lutheran, were in German language, as most of these people were recent immigrants.

611
01:00:35.360 --> 01:00:39.360
This not only incensed the German Catholics in Wisconsin, it also incensed the German Lutherans.

612
01:00:39.360 --> 01:00:41.360
Lutheran, hey, we got parochial schools, so what is this?

613
01:00:41.360 --> 01:00:47.360
And so there's a big opposition on this, flaming opposition that assaults on the private school system.

614
01:00:47.360 --> 01:01:01.360
As a result, in 1889, when the election comes up, the big Catholic and Lutheran organizing front now is a repeal of Bennett law.

615
01:01:01.360 --> 01:01:05.360
And it was Bennett law outlawing German language education.

616
01:01:05.360 --> 01:01:09.040
But notice this is different from the argument now, say, in many states, that there should

617
01:01:09.040 --> 01:01:13.600
be bilingual education in a public school. This applies to the private school, in other

618
01:01:13.600 --> 01:01:17.400
words, outlawing all use of German language in the private school system, parochial school

619
01:01:17.400 --> 01:01:18.400
system.

620
01:01:18.400 --> 01:01:19.400
Take part?

621
01:01:19.400 --> 01:01:24.280
Well, Ford was the governor, Bennett was the guy in the legislature who introduced the

622
01:01:24.280 --> 01:01:25.280
law.

623
01:01:25.280 --> 01:01:36.880
So this is the, so comes the, so the, in Milwaukee for example, here's an idea, Milwaukee which

624
01:01:36.880 --> 01:01:42.880
is a heavily German city, and still is, not as much, in Milwaukee the Republican vote

625
01:01:42.880 --> 01:01:51.880
in 1888 was 53%. After the Bennett law comes into play as the big political issue, I mean

626
01:01:51.880 --> 01:02:07.880
The following year, the Republicans get, excuse me 1890, the Republicans get only 25% of the vote in Milwaukee due to the defection of the German Lutherans, the German Lutherans I'd say are the swing vote.

627
01:02:07.880 --> 01:02:12.880
So in 1890 the question is should the Republican, should the Whore get renominated for governor?

628
01:02:12.880 --> 01:02:20.880
The moderates said this guy's a loser, he's going to lose us the state, they try to get rid of him, but he was a big pietist and prohibitionist.

629
01:02:20.880 --> 01:02:29.920
Hello, ambitionists, coming from Western and Northern Wisconsin, which are pietist areas,

630
01:02:29.920 --> 01:02:34.960
from Nils Haugen, who was a Norwegian immigrant, who of course also hated German, being a Norwegian

631
01:02:34.960 --> 01:02:41.600
pietist, a Lutheran pietist, and not only that Hoard was again an amateur politician,

632
01:02:41.600 --> 01:02:47.160
he didn't really, he was lashed out, he attacked by name German people, it says Germans are

633
01:02:47.160 --> 01:02:50.720
evil and so forth and so on, it's not exactly the thing to do as a politician, even in that

634
01:02:50.720 --> 01:03:06.720
period. So, anyway, he's renominated and in the election of 1890, Ford was smashed. It was called the Lutheran landslide. Almost every German Lutheran shifts to the Democratic Party and the Democrats sweep in.

635
01:03:06.720 --> 01:03:19.720
Ford is crushed. The first thing they do is repeal the Bennon law. The legislature meets half the Republicans to repeal it. The Republicans are beginning to see that the jig is up. We can't continue this stuff. We've got to change our perspective because we're going to be losers.

636
01:03:19.720 --> 01:03:25.920
and Losers, and in Illinois the same thing happened too, in Illinois they passed a very

637
01:03:25.920 --> 01:03:29.920
similar law called the Edwards Law outlawing old German parochial German language, again

638
01:03:29.920 --> 01:03:36.760
the same thing happened, Democrats won, so you have of the six states in the middle west,

639
01:03:36.760 --> 01:03:41.360
four or three of the five states, it's only Michigan where something similar happened,

640
01:03:41.360 --> 01:03:46.800
three states shift democratic on a prohibition question, two states on outlawing the German

641
01:03:46.800 --> 01:03:58.240
and Language and School System question and so the Republicans realize I've got to they've

642
01:03:58.240 --> 01:04:08.080
got to do something here and they do something rapidly to try to reverse course and one thing

643
01:04:08.080 --> 01:04:12.360
they try to do is to moderate, get rid of prohibitions, dump it, moderate it, led by

644
01:04:12.360 --> 01:04:17.600
by McKinley and led by the Lancashire people, try to do that, it's difficult to do because

645
01:04:17.600 --> 01:04:23.560
the prohibitions are getting more and more intense, the prohibitions are getting more

646
01:04:23.560 --> 01:04:27.720
and more fierce about this thing, the young people's Christian societies are going to,

647
01:04:27.720 --> 01:04:31.960
all over the place, are going to pop up, dedicated to pietism and prohibition, the Young Men's

648
01:04:31.960 --> 01:04:39.920
Christian Association, a typical pietist group, YWCA, dedicated to prohibition and pietism,

649
01:04:39.920 --> 01:04:44.880
And now, of course, it's very innocuous. In those days, there were big, big intense

650
01:04:44.880 --> 01:04:51.880
propagandists. Also, the Women's Christian Temperance Union got through hygiene courses

651
01:04:51.880 --> 01:04:56.120
in the public school system, devoted to attacking alcohol. It's another way, another part of

652
01:04:56.120 --> 01:04:57.120
the propaganda of life. Yeah?

653
01:04:57.120 --> 01:05:18.120
What is the reason why you gave an example of the birth of the Netherlands?

654
01:05:18.120 --> 01:05:22.120
What is the reason why you gave an example of the birth of the Netherlands?

655
01:05:27.120 --> 01:05:57.120
for various historical reasons were pious, they were low-church pious, whereas the higher Lutherans, German Lutherans were so-called formalistic, they were essentially liturgical, their whole attitude was very close to the Catholic attitude, sacraments and so on, whereas the Scandinavian Lutherans were very pious, they were almost like Baptists and Methodists, they were not much different, they were split in the Lutheran Church. So, anyway, one interesting thing is, for example, in the 1890s,

656
01:05:57.120 --> 01:06:05.120
One of the reasons why it was difficult, very difficult for Republicans to drop the Prohibitionists.

657
01:06:05.120 --> 01:06:13.120
200,000 people, which the W.E.S. Women's Christian Temperance Union set up a Loyal Temperance Legion as a youth affiliate.

658
01:06:13.120 --> 01:06:17.120
In the 1890s there were 200,000 members of the Loyal Temperance League.

659
01:06:17.120 --> 01:06:21.120
It's enormous considering it's a much lower population than that.

660
01:06:21.120 --> 01:06:28.120
So, pietists were getting stronger and stronger, and not so much in breadth, but in depth,

661
01:06:28.120 --> 01:06:30.400
and there was an intensity of feeling.

662
01:06:30.400 --> 01:06:37.400
For example, in 1892, in 1890, excuse me, of all the Midwestern college students, now

663
01:06:37.400 --> 01:06:40.080
college students, remember, are elite students, they're not, it's not like now everybody

664
01:06:40.080 --> 01:06:43.000
goes to college, a very small proportion went to college, these are sort of the leaders

665
01:06:43.000 --> 01:06:49.000
of tomorrow type, two-thirds of all Midwestern college students were pietists, and most of

666
01:06:49.000 --> 01:06:53.960
Most of them were members of YMCA, YWCA, which were, of course, which then was heavily

667
01:06:53.960 --> 01:06:54.960
pietistic.

668
01:06:54.960 --> 01:07:00.320
The University of Chicago in 1892, this is really remarkable, which is an elite college

669
01:07:00.320 --> 01:07:07.240
even then, they took a presidential poll, they always do these days, a preference in

670
01:07:07.240 --> 01:07:08.240
the 1892 election.

671
01:07:08.240 --> 01:07:15.440
And here you have a poll of undergraduates, there was no graduate school, I don't think.

672
01:07:15.440 --> 01:07:27.440
The University of Chicago was founded by Rockefeller, Johnny Rockefeller, as a Baptist, heavy, Rockefeller's Baptist, a heavy Baptist aura, but at any rate, they had a preference poll.

673
01:07:27.440 --> 01:07:30.440
Grover Cleveland was a Democratic candidate, of course, liturgical.

674
01:07:30.440 --> 01:07:39.880
Undergraduate preference pool, University of Chicago, Cleveland got 52 votes, President

675
01:07:39.880 --> 01:07:49.880
Harrison, who was a Republican of Indiana, got 151 votes, and get this, another guy named

676
01:07:49.880 --> 01:07:54.080
Bidwell, and I can't find his first name, see how important he was in American history,

677
01:07:54.080 --> 01:07:59.480
He was a prohibitionist candidate.

678
01:07:59.480 --> 01:08:02.240
He got 164 votes.

679
01:08:02.240 --> 01:08:07.280
In other words, Bidwell wins the University of Chicago undergraduate election.

680
01:08:07.280 --> 01:08:11.840
It's pretty remarkable considering most, we think of college students as being more leftist

681
01:08:11.840 --> 01:08:15.800
than the rest of the adults. Here we have a situation where these are ultra-pietists

682
01:08:15.800 --> 01:08:19.740
with Cleveland getting almost no votes. You consider this is like,

683
01:08:19.740 --> 01:08:23.740
15% of the vote or something, as a major democratic party

684
01:08:23.740 --> 01:08:27.740
and the prohibitionists winning out, these are the youths, the leaders of tomorrow

685
01:08:27.740 --> 01:08:31.740
unbelievable, at any rate

686
01:08:31.740 --> 01:08:35.740
so the

687
01:08:35.740 --> 01:08:39.740
what happens with the prohibitionists, they didn't know what to do, they didn't know whether to stick with a prohibitionist party

688
01:08:39.740 --> 01:08:43.740
and be a balance of power party, obviously they weren't winning

689
01:08:43.740 --> 01:08:47.740
because what was happening is the republicans were getting less and less prohibitionist

690
01:08:47.740 --> 01:08:54.660
Prohibitionists, should they stick with the Republican Party or should they become a single

691
01:08:54.660 --> 01:08:57.300
issue pressure group?

692
01:08:57.300 --> 01:09:03.380
And finally in 1893, 1892 when prohibitionists did very badly at Cypher University of Chicago

693
01:09:03.380 --> 01:09:08.220
on a national scale they did badly and so they finally decided a way to go with a single

694
01:09:08.220 --> 01:09:12.420
issue, single issue organization which would then punish, reward your friends and punish

695
01:09:12.420 --> 01:09:13.420
your enemies.

696
01:09:13.420 --> 01:09:16.020
In other words, pick a guy for president or congress just on the basis of his vote on

697
01:09:16.020 --> 01:09:24.020
on Liquor, and they set up the Anti-Saloon League, which became largely responsible for eventually putting Prohibition across.

698
01:09:24.020 --> 01:09:33.020
So that was the, they dropped the Prohibitionist Party, Prohibitionist Party is still around by the way, they get like 20 votes.

699
01:09:33.020 --> 01:09:40.020
Basically the Prohibitionists dropped the Prohibitionist Party and went through a single issue pressure group concept.

700
01:09:40.020 --> 01:09:51.020
So the Republicans realized we have to drop prohibition. It was tough to do it because they had all these intensifiers, so they did it during the 1890s, led by McKinley and Rockefeller.

701
01:09:51.020 --> 01:09:58.020
Then they tried other methods. Well, let's see, what we're trying to do, let's restrict immigration to keep it consistent. Most of the immigrants are Catholic.

702
01:09:58.020 --> 01:10:03.020
If we can keep out immigrants altogether, we'll do well. We'll stop the demographics from going against us.

703
01:10:03.020 --> 01:10:30.020
The Republicans began an anti-immigrant drive, aside from the Chinese immigration, which I'll talk about a little later, next time or something, which is this special deal which started earlier, and particularly in the 1880s, I'd say, there was a big German and an Irish immigration, and then in the 1890s, beginning of the red specter of Italian immigration, even more Catholics coming in, they figured, okay, we're going to stop this.

704
01:10:30.020 --> 01:10:44.020
The big drive by the Republicans to restrict immigration, they started until 1882, immigration was totally free in the United States, regulated only by New York State or any other state, it was essentially not regulated at all.

705
01:10:44.020 --> 01:10:56.020
In 1882, Republicans passed a first step in immigration restriction, which is to require every immigrant to pay 50 cents, a 50 cent tax.

706
01:10:56.020 --> 01:11:04.020
In the 80s and those days, you know, it meant a considerable amount. I don't know, close to $5 or something like that. It kept out poor immigrants.

707
01:11:04.020 --> 01:11:12.020
And also, all ex-convicts were prohibited from coming in, plus anybody was likely to be a public charge.

708
01:11:12.020 --> 01:11:17.020
Anybody who was likely deemed an immigration official might go on welfare or whatever.

709
01:11:17.020 --> 01:11:22.020
So this begins the immigration restriction.

710
01:11:22.020 --> 01:11:29.220
In 1886, we begin to drive by states. In those days, aliens could vote, much different from now.

711
01:11:29.220 --> 01:11:34.020
Aliens could vote if they only declare their intent to eventually become a citizen, they were allowed to vote.

712
01:11:34.020 --> 01:11:38.020
The states begin, the Republican controlled states, began to tighten up on that to prevent aliens,

713
01:11:38.020 --> 01:11:43.520
not just from voting, but also from being employed on public works projects, government and public works projects.

714
01:11:43.520 --> 01:11:49.020
In other words, the anti-alien thing begins in late 1886 or so, 1887,

715
01:11:49.020 --> 01:11:53.020
Keep aliens from voting in public, employed in public works.

716
01:11:53.020 --> 01:11:59.020
In 1885, they passed a law outlawing contract labor.

717
01:11:59.020 --> 01:12:03.020
This was put in by the labor unions. We'll get to labor unions a little bit later on.

718
01:12:03.020 --> 01:12:05.020
Maybe next time, time after.

719
01:12:05.020 --> 01:12:09.020
Labor unions put through a law. In those days, you see there was contract labor.

720
01:12:09.020 --> 01:12:11.020
There was a force of labor, quote, shortage, unquote.

721
01:12:11.020 --> 01:12:14.020
There was always this need more people. There was lots of land and very few people.

722
01:12:14.020 --> 01:12:22.020
So businessmen would contract with Europeans in Europe, agencies, to bring people over as contract laborers.

723
01:12:22.020 --> 01:12:25.020
This was outlawed in 1885, federal government.

724
01:12:25.020 --> 01:12:29.020
Of course, if you outlaw people from becoming contract laborers, it means they're more likely to become public chargers.

725
01:12:29.020 --> 01:12:30.020
They haven't got a job.

726
01:12:30.020 --> 01:12:35.020
In other words, the great thing about contract labor is you know you have a job already, and you're coming on the boat.

727
01:12:35.020 --> 01:12:40.020
So this way, you're not allowed to have a job in advance, and you're more likely to become a welfare case or whatever.

728
01:12:40.020 --> 01:12:41.020
of Governance.

729
01:12:41.020 --> 01:12:44.820
They could then ban people as being poor because they're deprived of a job, it's great, they

730
01:12:44.820 --> 01:12:47.980
first you deprive somebody of a job and then you say, he hasn't got a job line up, you

731
01:12:47.980 --> 01:12:51.220
have to prevent him from entering the country.

732
01:12:51.220 --> 01:12:56.980
There's of course particular attacks on Catholic immigrants, it was very explicit.

733
01:12:56.980 --> 01:13:03.980
In those days you have to realize nowadays it's considered at least unesthetic and probably

734
01:13:03.980 --> 01:13:06.780
immoral to be engaged in religious and racial discrimination.

735
01:13:06.780 --> 01:13:36.780
In the early days, they didn't have these restrictions, people were much franker, and so they said the Presbyterian Senate in 1887 said we have to keep out Catholic immigrants, they're evil, they talk about bohemian bruisers and Atanian cutthroats, and the National Temperance Society attacked Catholic immigrants, they drank liquor, and the Prohibition Party attacked immigrants and Catholic immigrants and the independent Presbyterian Church and all that. Another thing that comes in this picture was used by

736
01:13:36.780 --> 01:13:50.780
As anti-Catholic people and also anti-emigrant, the Grand Army of the Republic, the Civil War veterans, means Northern Civil War veterans, the GAR, who were of course all Republican into the Hill.

737
01:13:50.780 --> 01:13:58.780
They got special jobs, and whenever Republicans got into any state, they would give preference to the Civil War veterans, Union veterans.

738
01:13:58.780 --> 01:14:28.780
In the 1880s there was their peak membership, 400,000, an enormous number of Civil War veterans, all of whom had the public trough, getting the money, getting the bootles from the Republican Party, they were denouncing immigrants because they were allies of copperheads and ex-rebels, in other words, the Democrats, Southern Democrats, they were also flourishing new patriotic secret societies or anti-Catholic, anti-immigrant and anti-Catholic, the Junior Order of United American Mechanics, which begins in the 1880s,

739
01:14:28.780 --> 01:14:58.780
1889 had 60,000 people, 1890 had 160,000 people, big organizations, the United Order of Deputies which had 15,000 workers and their plea was to all employers, fire all Catholics, no Catholics should have a job, that was their shtick, that of course did not succeed, anyway that's the sort of pressure constantly, finally in the late 1880s a very powerful anti-Catholic group called the American Protective Association

740
01:14:58.780 --> 01:15:00.260
the Dread APA

741
01:15:00.260 --> 01:15:03.700
When I was growing up in the 1930s, Catholics were still

742
01:15:03.700 --> 01:15:09.220
talking about the APA, and I think it had faded away by that time. It was an extremely powerful

743
01:15:09.220 --> 01:15:12.140
loss-pressure group

744
01:15:12.140 --> 01:15:18.500
to protect American institutions from the Dread Catholics.

745
01:15:18.500 --> 01:15:23.140
And they were founded in Iowa in 1887.

746
01:15:23.140 --> 01:15:28.020
It was a secret order, and their secret pledge was never to vote ever to vote for a Catholic for any position

747
01:15:28.020 --> 01:15:35.460
in any position of any sort. It spread through the upper Mississippi Valley towns, it swept

748
01:15:35.460 --> 01:15:44.460
Omaha and all sorts of mid-western states. In 1894 it had 500,000 members. This is enormous.

749
01:15:44.460 --> 01:15:48.660
This would be equivalent now to at least several million. I'm not sure what the population

750
01:15:48.660 --> 01:15:55.820
was. It was obviously much smaller than now.

751
01:15:55.820 --> 01:15:59.820
So that was, what happened in the APA was that they were, of course again, almost completely

752
01:15:59.820 --> 01:16:03.980
Republican, they had nothing to do with the Democratic Party, but they had a problem.

753
01:16:03.980 --> 01:16:08.940
Their problem was, what do we, what do you do about McKinley?

754
01:16:08.940 --> 01:16:15.340
They hated McKinley's guts, because McKinley was actually, actually, you know, appointed

755
01:16:15.340 --> 01:16:17.820
Catholics a job and stuff like that.

756
01:16:17.820 --> 01:16:20.580
McKinley broke very early with this thing, it was part of his moderation, or part of

757
01:16:20.580 --> 01:16:25.020
his giving up of his biases, they tried their best to stop McKinley from being nominated

758
01:16:25.020 --> 01:16:30.020
1896, we'll see about that later, and they finally, when he was nominated, they didn't

759
01:16:30.020 --> 01:16:33.020
know what to do, they really sort of fell apart in 1896, they didn't know whether to

760
01:16:33.020 --> 01:16:37.020
oppose him, they couldn't vote for the hated Democrats, because they were all kind of Republicans,

761
01:16:37.020 --> 01:16:42.020
they finally sort of began to dissolve, but they were very, very powerful for about 10

762
01:16:42.020 --> 01:16:43.020
years.

763
01:16:43.020 --> 01:16:47.740
Another thing was this, Republicans were and continue to be completely committed to protective

764
01:16:47.740 --> 01:16:52.380
power, very high protective power, keep out cheap foreign goods.

765
01:16:52.380 --> 01:16:56.380
One of the reasons they go in for immigration restrictions is a quid pro quo with the workers.

766
01:16:56.380 --> 01:17:01.020
In other words, okay, we recognize if we have a protective power, if you have to cost the

767
01:17:01.020 --> 01:17:02.020
living, it would be much more expensive.

768
01:17:02.020 --> 01:17:04.020
In return for that, we'll keep out cheap immigrants.

769
01:17:04.020 --> 01:17:09.500
In other words, we'll increase wage rates of domestic workers by keeping out, so sort

770
01:17:09.500 --> 01:17:15.460
of a quid pro quo, okay, we'll get our goods, goods of our competitors prohibited from coming

771
01:17:15.460 --> 01:17:16.460
to the United States.

772
01:17:16.460 --> 01:17:19.900
In return for that, we'll give you, we'll prohibit Italians, Chinese, whatever coming

773
01:17:19.900 --> 01:17:20.900
in the United States.

774
01:17:20.900 --> 01:17:30.900
What are the biggest guys doing on all of this?

775
01:17:30.900 --> 01:17:34.900
They are lawless, that there were two parties that built the two points of equal rights to make general injections.

776
01:17:34.900 --> 01:17:41.900
They are lawless, that there were two parties that built the two points of equal rights to make general injections.

777
01:17:50.900 --> 01:18:00.900
The Republican Party was in a deep crisis. They were trying to do something about the growth of, seemingly inevitable growth of liturgical parties.

778
01:18:00.900 --> 01:18:06.900
And one way to do it was to keep out immigrants. They tried that during the 1890s. They finally dropped it, as we'll see, after 1896.

779
01:18:06.900 --> 01:18:14.900
But they were trying to figure out what to do, what to do to redress the balance, what to do to get pietists to win at the polls.

780
01:18:14.900 --> 01:18:35.900
The other thing was that they tried to restrict, once another law they passed in 1891, Congress

781
01:18:35.900 --> 01:18:42.620
passed, again it was during Republican administration, to force steamships, these steamships are

782
01:18:42.620 --> 01:18:46.780
Bringing Immigrants Here. The force of steamships, if the immigrant is considered

783
01:18:46.780 --> 01:18:51.060
undesirable, if they're likely to be a public charge or whatever, the force of

784
01:18:51.060 --> 01:18:54.500
steamships carry the immigrant back free. In other words, at their own expense.

785
01:18:54.500 --> 01:18:57.700
Obviously, it means the steamships are less likely to carry immigrants

786
01:18:57.700 --> 01:19:00.780
because they think that, you know, a lot of these people have to carry back, ship back

787
01:19:00.780 --> 01:19:08.580
on their own power. So they pass this. Also, they excluded illegal aliens,

788
01:19:08.580 --> 01:19:14.300
reporting illegally, excuse me, to deport them, excluding people with contagious diseases,

789
01:19:14.300 --> 01:19:19.660
excluding polygamists, if there were such.

790
01:19:19.660 --> 01:19:25.680
The big drive on the part of the pietists in Congress came with Senator Chandler of

791
01:19:25.680 --> 01:19:30.620
New Hampshire, Republican of New Hampshire, who was so the big anti-immigrant, and Henry

792
01:19:30.620 --> 01:19:39.220
Mary Cabot Lodge in Massachusetts was originally a congressman and then a senator, a Bluffton

793
01:19:39.220 --> 01:19:47.700
Brahman type, their big push for several years was to outlaw illiterate immigrants, to make

794
01:19:47.700 --> 01:19:57.020
immigrants pass a literacy test, a big drive on that in 1893 and later, and of course it's

795
01:19:57.020 --> 01:20:02.740
This is kind of peculiar since Native Americans don't have to pass literacy tests at any rate

796
01:20:02.740 --> 01:20:08.340
and they set up four Boston Brahmins in 1894, set up the Immigration Restriction League,

797
01:20:08.340 --> 01:20:15.820
devoted enormous propaganda to keep out illiterate immigrants, I mean illiterate English of course.

798
01:20:15.820 --> 01:20:19.680
They said these immigrants coming from Eastern and Southern Europe are either illiterates

799
01:20:19.680 --> 01:20:23.460
or criminals or both, therefore they should be excluded.

800
01:20:23.460 --> 01:20:53.460
In 1896, they passed a law, they finally passed a law, in 1896, Luther Chandler and Lodge's pressure, the outlaw will force the literacy test on all immigrants, it was then vetoed by Cleveland, it was almost the last act in Congress, just about ready to be kicked out, Cleveland heroically vetoed it and it didn't pass over as veto, and also of course the drive came to prevent aliens from voting, as I said before, a lot of states permitted aliens to vote, they managed to reduce it,

801
01:20:53.460 --> 01:21:09.460
not by much, there was, in early 1890s, 18 southern and western states committed only to vote, by 1900 only 11 did, but still it was a slow process, in other words, they put on a big push to keep out immigrants and Catholics, they were slightly successful but not much,

802
01:21:09.460 --> 01:21:22.460
looking over the decades work, they didn't get very too far, they also tried something else, okay, if you try to, there was one drive to try to exclude immigrants from voting, or then later vote,

803
01:21:22.460 --> 01:21:28.460
Another drive was to put, to make, to expand the suffrage to people whom you knew would be pietists, namely women.

804
01:21:28.460 --> 01:21:34.460
In other words, the women's suffrage drive now comes in as a purely pietist measure.

805
01:21:34.460 --> 01:21:42.460
The reason is this, the pietists knew very well that if women voted, if women were given, of course, women were not voting in this period, except for a few of the western states,

806
01:21:42.460 --> 01:21:46.460
if women were allowed to vote, almost all the voters would be pietists.

807
01:21:46.460 --> 01:21:51.220
because the Catholic culture was such, the Catholic women would not vote

808
01:21:51.220 --> 01:21:56.660
or they stayed home. While the men were at the saloon, the women stayed home and did all this stuff.

809
01:21:56.660 --> 01:22:08.060
It's true. It's hard to picture it now. Good or bad, whatever it is. I'm not passing a value judgment.

810
01:22:08.060 --> 01:22:13.220
Anyway, the culture was such that the Catholic homes women would not vote.

811
01:22:13.220 --> 01:22:19.180
and so the and the pious is knowing this push for women's suffrage and the

812
01:22:19.180 --> 01:22:23.780
Catholics knowing the other things but voted against it so this was one of the

813
01:22:23.780 --> 01:22:31.900
one of the big reasons for this the so for example professor Grimes has written

814
01:22:31.900 --> 01:22:35.180
a very good book on the subject says I'm arguing that the evidence indicates is a

815
01:22:35.180 --> 01:22:38.180
large extent least in the West the constituency granting women's suffrage

816
01:22:38.180 --> 01:22:41.660
was composed those who also supported prohibition and immigration restriction

817
01:22:41.660 --> 01:22:51.300
The Prohibition Party and the Greenback Party very early came out of the women's suffrage.

818
01:22:51.300 --> 01:22:57.020
We'll see later that the Progressive Party in 1912 was the first group to have women

819
01:22:57.020 --> 01:23:05.620
delegates at the National Convention, also a woman elector.

820
01:23:05.620 --> 01:23:09.220
And most of the early feminist leadership, the early women's suffrage leaders came out

821
01:23:09.220 --> 01:23:16.580
of the Prohibitionist Movement, Susan Anthony and Francis Willard and people like that and

822
01:23:16.580 --> 01:23:20.900
they began in other words as leaders in Women's Christian Temperance Union and they shifted

823
01:23:20.900 --> 01:23:26.320
over to the Women's Suffrage Movement.

824
01:23:26.320 --> 01:23:34.380
The Women's Christian Temperance Union for example was involved in the following, Women's

825
01:23:34.380 --> 01:23:45.180
Women's Suffrage Movement, Prohibition, curfew laws, anti-gambling laws, anti-smoking laws,

826
01:23:45.180 --> 01:23:53.060
and anti-sex laws, for example, Susan Anthony and Ida Harper, in their definitive history

827
01:23:53.060 --> 01:23:58.520
of the Women's Suffrage Movement, wrote the following about the Women's Christian Temperance

828
01:23:58.520 --> 01:24:04.480
Women's Christian Temperance Union has been a chief factor in state campaigns for statutory

829
01:24:04.480 --> 01:24:09.080
prohibition, that means prohibition of alcohol, constitutional amendment, reform laws in general,

830
01:24:09.080 --> 01:24:12.880
and those for the protection of women and children in particular, and securing anti-gambling,

831
01:24:12.880 --> 01:24:13.880
anti-cigarette laws.

832
01:24:13.880 --> 01:24:18.480
It's been instrumental in raising the age of protection for girls in many states, obtaining

833
01:24:18.480 --> 01:24:21.560
curfew laws in 400,000 cities.

834
01:24:21.560 --> 01:24:25.040
The association protests against the legalization of all crimes, especially those of prostitution

835
01:24:25.040 --> 01:24:26.040
and liquor selling.

836
01:24:26.040 --> 01:24:31.040
All of these things were grouped together by the Women's Christian Temporary Union and the Women's Suffrage Movement.

837
01:24:41.040 --> 01:24:46.040
The Women's Christian Temporary Union, as I said, emerged out of women's prayer, anti-liquor prayer meetings.

838
01:24:46.040 --> 01:24:48.040
It began in Ohio and swept the nation.

839
01:24:48.040 --> 01:24:53.040
The leading spirit of the Women's Christian Temporary Union, Frances Willard, was sort of typical.

840
01:24:53.040 --> 01:24:57.200
She was born of New England stock parents who had moved westward to study at Oberlin

841
01:24:57.200 --> 01:25:04.280
College in Ohio which was the center of pietism for decades, center of ultra-pietist leadership.

842
01:25:04.280 --> 01:25:09.760
Later settled in Wisconsin, she became corresponding secretary of the WCTU and then became the

843
01:25:09.760 --> 01:25:13.800
president a couple of years later and then became a women's suffrage person and moved

844
01:25:13.800 --> 01:25:19.800
There was a movement in the women's suffrage movement, almost as one and the same.

845
01:25:19.800 --> 01:25:27.800
And so whenever, many western states, some western states, had women's suffrage in the very beginning.

846
01:25:27.800 --> 01:25:31.800
And they were almost all put in by, these were pieter states, put in by pieters.

847
01:25:31.800 --> 01:25:39.800
This is one charming thing, there was a vote for a Colorado referendum about women's suffrage in 1877.

848
01:25:39.800 --> 01:25:44.800
16,007 was defeated. Susan Anthony is testifying before Congress and testifying why it was defeated.

849
01:25:44.800 --> 01:25:50.800
She says, in Colorado, 6,666 men voted yes. I mean, what? Yes, women suffrage.

850
01:25:50.800 --> 01:25:58.800
Now, I'm going to describe the men who voted yes, she said. They were native-born white men, temperance men, cultivated, broad, generous, just men, men who think.

851
01:25:58.800 --> 01:26:00.800
Those are the good guys.

852
01:26:00.800 --> 01:26:04.800
The other hand, 16,007 voted no. Now, I'm going to describe that class of voters.

853
01:26:04.800 --> 01:26:08.800
In the southern part of that state, there were Mexicans who speak the Spanish language.

854
01:26:08.800 --> 01:26:11.800
The vast population of Colorado is made up of that class of people.

855
01:26:11.800 --> 01:26:14.800
I was sent out to speak in a voting precinct having 200 voters.

856
01:26:14.800 --> 01:26:16.800
150 of those voters were Mexican greasers.

857
01:26:16.800 --> 01:26:18.800
40 of them foreign-born citizens.

858
01:26:18.800 --> 01:26:20.800
Just 10 of them were born in this country.

859
01:26:20.800 --> 01:26:23.800
It was a bitter attack on Mexican Americans, of course, again, being Catholic,

860
01:26:23.800 --> 01:26:26.800
voted against women's suffrage.

861
01:26:29.800 --> 01:26:32.800
And the same thing happened in California, where the ultra-opiacists

862
01:26:32.800 --> 01:26:35.800
were in favor of women's suffrage, so forth and so on.

863
01:26:38.800 --> 01:26:43.560
some of it also the idea and the part of pious women is a terrible thing to have

864
01:26:43.560 --> 01:26:47.800
low-type men voting where they can vote. It was really great upon them. Here they were

865
01:26:47.800 --> 01:26:52.800
wealthy and upper-class wasp women. Here were the evil, greasy foreigners,

866
01:26:52.800 --> 01:26:55.440
Mexicans or whatever, who could vote even because they were men. That was part of

867
01:26:55.440 --> 01:27:04.040
the drive here. Women's suffrage comes in early and mid-90s and mountain

868
01:27:04.040 --> 01:27:08.080
states, we'll talk about that in a minute, mountain states that were Wyoming and Utah

869
01:27:08.080 --> 01:27:17.520
Utah and Idaho and Colorado I guess, yeah, these are all mountain states and they're

870
01:27:17.520 --> 01:27:23.520
all mostly pietas. The special thing in Utah was this, kind of interesting, Utah of course

871
01:27:23.520 --> 01:27:26.760
was heavily Mormon and the Mormons were a favorite women's suffrage because then the

872
01:27:26.760 --> 01:27:30.400
Mormons could outvote the other people, because the Mormons, every Mormon had eight wives

873
01:27:30.400 --> 01:27:35.880
or something, you have to then multiply the mormon vote by 8 votes.

874
01:27:35.880 --> 01:27:40.240
So it was their schtick.

875
01:27:40.240 --> 01:27:46.960
Another thing about the West in general, a lot of single men tended to be sort of grifters

876
01:27:46.960 --> 01:27:51.040
that you see from western movies, sort of gripped in and out of town, sort of unwholesome

877
01:27:51.040 --> 01:27:52.040
types.

878
01:27:52.040 --> 01:27:55.920
These figures that women can vote and have a more subtle family type voters against the

879
01:27:55.920 --> 01:28:02.920
Frederick Jackson Turner, I've already mentioned him as the historian who popularized the frontier thesis.

880
01:28:07.920 --> 01:28:12.920
You have to realize about him that he was very much in favor of the frontier ethic, including pietism and everything else.

881
01:28:12.920 --> 01:28:17.920
To sum that up, he said, there's a great quote from Turner, he said,

882
01:28:17.920 --> 01:28:21.920
in the arid west, that means the prairie states and so forth, he said,

883
01:28:21.920 --> 01:28:28.920
So these pioneers, from New England, in other words, originally New England stock, have halted and have turned to perceive an altered nation and change social ideals.

884
01:28:28.920 --> 01:28:34.920
If you follow back the line of March of the pre-written farmer, you should see how responsive he's always been to isms.

885
01:28:34.920 --> 01:28:36.920
He's a favorite of those, remember.

886
01:28:36.920 --> 01:28:39.920
He is the prophet of the higher law in Kansas before the Civil War.

887
01:28:39.920 --> 01:28:45.920
He is the prohibitionist of Iowa and Wisconsin, crying out against German customs as an invasion of traditional ideals.

888
01:28:45.920 --> 01:28:49.920
He is the granger of Wisconsin, passing restrictive railroad legislation.

889
01:28:49.920 --> 01:28:53.920
He is the abolitionist, the anti-Mason, the Millerite, the Millerites were...

890
01:28:53.920 --> 01:28:57.920
I shouldn't say crazy, but the Millerites people believed that the world would come...

891
01:28:57.920 --> 01:29:01.920
Jesus would return on March 1843, and he was first centered in western New York.

892
01:29:01.920 --> 01:29:05.920
When March 1843 came and went, there wasn't...

893
01:29:05.920 --> 01:29:09.920
no Jesus return attended to the spread of the Millerites.

894
01:29:09.920 --> 01:29:13.920
And they learned from that, by the way, the pre-millennialists, that you shouldn't make precise predictions of that sort,

895
01:29:13.920 --> 01:29:18.920
because you might be wrong. The women suffragists, the spiritualists, the Mormon of western New York.

896
01:29:18.920 --> 01:29:25.920
of New York. That really sums it up. This is the WASP pioneer, the WASP, Piatus Frontiersman.

897
01:29:26.320 --> 01:29:31.560
If they tried women's suffrage, it would pass in a couple of mountain states, but not

898
01:29:31.560 --> 01:29:37.040
very much. These were gradual measures. They tried immigration restrictions, it worked

899
01:29:37.040 --> 01:29:40.160
a little bit, but not much. They tried women's suffrage, it worked a little bit, but not

900
01:29:40.160 --> 01:29:46.560
much. And another thing they did, which was more important in the long run, is they put

901
01:29:46.560 --> 01:29:52.640
put in, the Republicans put in during 1890, a bunch of crummy mountain states as states.

902
01:29:52.640 --> 01:30:07.160
Here are these mountain states. For example, in 1890, 1889, 1890, in those two years, the

903
01:30:07.160 --> 01:30:20.400
and Legislature puts in as states Idaho, Montana, Wyoming, and Washington, and Utah makes it

904
01:30:20.400 --> 01:30:26.160
a few years later, 1896, there were no people there, you have to realize, there are hardly

905
01:30:26.160 --> 01:30:32.320
any people in Montana and Idaho now, much less 1890, there were no people, how can they

906
01:30:32.320 --> 01:30:36.920
be qualified as states, notice what happens with the states, each of these crummy one

907
01:30:36.920 --> 01:30:43.920
The Golden Horse States has two senators. They're fully in a situation where there are two senators from states with almost no people in them.

908
01:30:43.920 --> 01:30:47.920
Why do the Republicans do this? Republicans did it because these were all pietists.

909
01:30:47.920 --> 01:30:51.920
There were very few Catholics or Lutherans in any of these states. These were pietists.

910
01:30:51.920 --> 01:30:58.920
They were doing well. These would add to the pietist strength in Congress and the two parties.

911
01:30:58.920 --> 01:31:03.920
And these were all free silver states. They were inflationist states. They all had silver mines.

912
01:31:03.920 --> 01:31:10.920
and silver was the big cry of the inflationist in this period in other words we should have silver as money and not just gold

913
01:31:10.920 --> 01:31:14.920
or stress silver because silver is more abundant than gold, we have more higher prices

914
01:31:14.920 --> 01:31:20.920
so this, pietist free silverism plus pietist social values that comes into this picture

915
01:31:20.920 --> 01:31:23.920
so the republicans were able to fold these four states into the picture

916
01:31:23.920 --> 01:31:26.920
this had a longer run more importance than the other stuff

917
01:31:26.920 --> 01:31:29.920
even though it seemed to be unimportant

918
01:31:29.920 --> 01:31:32.320
I'm going to take a ten minute break and then I can celebrate.

919
01:31:32.320 --> 01:31:39.200
It happened in 1896, a big cataclysmic event that the entire political party system changes.

920
01:31:39.200 --> 01:31:45.560
In other words, the party system I've been talking about, the so-called third party system,

921
01:31:45.560 --> 01:31:49.840
last date from 1854 approximately, ends very abruptly in 1896 and the whole party system

922
01:31:49.840 --> 01:31:54.360
changes, the whole ideology changes and the whole ethno-religious support for the party

923
01:31:54.360 --> 01:31:55.360
changes.

924
01:31:55.360 --> 01:32:06.080
what happened what's the story here the basically what happens this is the

925
01:32:06.080 --> 01:32:10.320
something happens the Democratic Party but first of all Republican Party is

926
01:32:10.320 --> 01:32:14.680
getting more moderate in other words they've been to realize these other

927
01:32:14.680 --> 01:32:19.240
things women's suffrage was only a long-term thing prohibition is dropping

928
01:32:19.240 --> 01:32:22.920
anyway immigration restriction was only long-term they're beginning to get much

929
01:32:22.920 --> 01:32:30.720
are much more moderate, really retaining basically the protective power of their key plank, giving

930
01:32:30.720 --> 01:32:43.720
up social issues, one of the things even in the early 80s for example, in 1990 when the

931
01:32:43.720 --> 01:32:47.880
republicans were still in, they passed the silver purchase law, the Sherman silver purchase

932
01:32:47.880 --> 01:32:55.460
law, subsidizing silver miners of the mountain states, and also of course contributing as

933
01:32:55.460 --> 01:32:57.000
an inflationary law.

934
01:32:57.000 --> 01:33:00.500
When Cleveland gets in, one of his first acts is the Repeal of the Silver Purchase Act,

935
01:33:00.500 --> 01:33:07.720
and we're to go back to a gold, solid gold standard.

936
01:33:07.720 --> 01:33:14.040
And one of the things he was supposed to do, Cleveland, was to eliminate the National Banking

937
01:33:14.040 --> 01:33:20.440
Banking Act, to permit free banking, to permit state bank notes, which were existing before

938
01:33:20.440 --> 01:33:21.440
the Civil War.

939
01:33:21.440 --> 01:33:25.280
Unfortunately, it went back on this pledge, probably due to Morgan supporters.

940
01:33:25.280 --> 01:33:32.120
Morgan obviously did not want to have a free banking system.

941
01:33:32.120 --> 01:33:39.800
But so we have a very different party, a very different party system.

942
01:33:39.800 --> 01:33:46.960
What happens in the convention of 1896, it was a democratic convention, is that suddenly,

943
01:33:46.960 --> 01:33:55.300
and this was brewing for a couple of years at this point, suddenly the democratic party

944
01:33:55.300 --> 01:34:00.600
is captured by a very different group.

945
01:34:00.600 --> 01:34:11.600
And what we have to see is how come this happened, what was the, what paved the way for this?

946
01:34:11.600 --> 01:34:15.280
Democratic Party is suddenly captured by an ultra-apriatist group, in other words by people

947
01:34:15.280 --> 01:34:21.480
who are much more apriatist than Republicans and who are very much in favor of pure status,

948
01:34:21.480 --> 01:34:27.000
in favor of inflation, free silver, government regulation, etc. and prohibition of almost

949
01:34:27.000 --> 01:34:28.600
everything.

950
01:34:28.600 --> 01:34:58.600
So, all of a sudden, the democratic, the German, Catholic Lutheran who would consider who had grown up in the democratic party, were loyal to the democratic party, would never vote Republican under any circumstances, all of a sudden find, they find the democratic party, the party of their fathers, as it's called, has been captured by a monstrous group of extreme pietists. In the meantime, the Republican party had gotten more moderate, under McKinley, Rockefeller influence. How could the democrats have been captured by pietists?

951
01:34:58.600 --> 01:35:28.600
when the whole thing the whole history of democratic party was just the opposite it was a tremendous ship in the July 1896 convention at Chicago where the fighters headed by the famous and or notorious William Jennings Brian of Nebraska captured the democratic party well we can see certain things that happen the first place the well one thing the mountain states have become states as I said last time in the

952
01:35:28.600 --> 01:35:41.480
in the last hour, in other words, Wyoming, Idaho, Montana, and Utah, and Washington

953
01:35:41.480 --> 01:35:42.480
become state.

954
01:35:42.480 --> 01:35:47.840
These are all pietists, so they added to the Democratic, pietist strength of the Democratic

955
01:35:47.840 --> 01:35:51.840
Party and the Senate and all that sort of stuff, the leadership.

956
01:35:51.840 --> 01:35:58.120
Another thing that happens is that the, in the panic of 1893, well, before I get to that,

957
01:35:58.120 --> 01:36:04.080
So when you have a new mountain state with all the pietists, then you have the South,

958
01:36:04.080 --> 01:36:10.080
which has been democratic since the Civil War, the southern pietists who were not evangelical,

959
01:36:10.080 --> 01:36:14.200
they were sort of quiet pietists, they believed that everybody should be born again but you

960
01:36:14.200 --> 01:36:18.640
don't bother anybody else, they were now converted to the Yankee position where they were increasingly

961
01:36:18.640 --> 01:36:24.240
become prohibitionists, the southern Methodists which had held back from this sort of thing

962
01:36:24.240 --> 01:36:29.160
for fifty, forty, fifty years and now get converted to the evangelical position.

963
01:36:29.160 --> 01:36:35.360
And now you have, the South now becomes pietist, in other words, so the Democrats

964
01:36:35.360 --> 01:36:38.840
become pietists.

965
01:36:38.840 --> 01:36:41.840
So this is a big change, of course, it means a whole block.

966
01:36:41.840 --> 01:36:45.160
The South is increasingly a one-party state.

967
01:36:45.160 --> 01:36:50.840
After the Civil War, blacks in the South were almost all Republican and whites were almost all Democratic.

968
01:36:50.840 --> 01:36:58.840
After the 1880s, the Blacks were systematically disenfranchised in the South by the so-called progressive movement in the South.

969
01:36:58.840 --> 01:37:03.840
You wind up by about 1900 or so with no Blacks voting, almost literally, in the Southern States.

970
01:37:03.840 --> 01:37:08.840
Now you have a one-party region. In other words, the South now becomes a fully democratic region.

971
01:37:08.840 --> 01:37:14.840
And all now becoming pious. This of course shifts the balance within the democratic party.

972
01:37:14.840 --> 01:37:23.840
Excuse me, if you have a south, a southern mountain, a so-called west, which really means mountain states, a pietist.

973
01:37:23.840 --> 01:37:31.840
Another thing that happens is the panic of 1893, which occurs just after poor Cleveland.

974
01:37:31.840 --> 01:37:37.840
Cleveland gets to be president. In those days, the presidents are inaugurated in March, I think March 1st.

975
01:37:37.840 --> 01:37:51.840
and I think just before he's nominated, just before he takes office, the panic of 1893 begins with a bankruptcy of some railroad and then a month or so later the whole, you know, the bank panic.

976
01:37:51.840 --> 01:38:06.840
He just had the bad luck to come in at the beginning of a bank panic and general depression, brought about of course by the bank, previous bank credit expansion and all that, which occurs every 10 years or 5 years or so.

977
01:38:06.840 --> 01:38:10.200
do again to this nationalized banking system which was set up in civil war

978
01:38:10.200 --> 01:38:14.280
but of course the people didn't realize that they blamed Cleveland, okay, for the panic

979
01:38:14.280 --> 01:38:19.320
so the result of that, you know, the Democrats had swept in in 1892

980
01:38:19.320 --> 01:38:22.520
in 1894 they lost the House of Representatives, I think they even lost the Senate

981
01:38:22.520 --> 01:38:26.840
there was a big shift because of the Depression, it was a temporary thing

982
01:38:26.840 --> 01:38:32.600
in other words the Democratic Party gets discredited for a while

983
01:38:32.600 --> 01:38:46.600
It didn't have to be permanent, but what happens is the people who lose their seats, in other words, in this temporary 1894 shift of the Republicans,

984
01:38:46.600 --> 01:38:53.600
the people who lose their seats are the Cleveland leadership, in other words, the Libertarian Democrats, so to speak,

985
01:38:53.600 --> 01:39:00.600
the big shots in the East, the governors and senators in the East and the Middle West, who are so-called Cleveland Democrats,

986
01:39:00.600 --> 01:39:05.400
lose their seats, which creates a power vacuum in the Democratic Party

987
01:39:05.400 --> 01:39:09.600
because it means the Democratic Party leadership is deprived of Eastern and Midwestern liturgical types

988
01:39:09.600 --> 01:39:14.400
people who are laissez-faire, hard-money, pre-trade Democrats, alright?

989
01:39:14.400 --> 01:39:18.800
This means that there's a power vacuum open for the Southern Mountain people to take over

990
01:39:18.800 --> 01:39:24.800
It just so happens that the bad luck was that the 1894 collapse of the Democrats because of the Depression

991
01:39:24.800 --> 01:39:29.400
which was purely temporary, leaves the path open for the Brianites to take over

992
01:39:29.400 --> 01:39:36.800
in 1896. So the result in 1895 and 1896 in the democratic individual states of

993
01:39:36.800 --> 01:39:54.080
So Brian and I begin to take over the different state parties.

994
01:39:54.080 --> 01:40:04.880
This is not really, so what happens is Brian begins to put together this coalition, ultra-pilots,

995
01:40:04.880 --> 01:40:09.760
Southern pietists, mountain state pietists, there's a vacuum in leadership in the eastern

996
01:40:09.760 --> 01:40:14.600
middle west, and it takes over the convention in 1896, it was a big blow, but you could

997
01:40:14.600 --> 01:40:18.880
see it was coming, and it was beginning to be able to predict it by the early 1896, that

998
01:40:18.880 --> 01:40:25.640
something, a catacosmic change was going to happen in the democratic party.

999
01:40:25.640 --> 01:40:32.640
The as a result of that, the republicans begin to see the handwriting on the wall, of course,

1000
01:40:32.640 --> 01:41:02.640
The democrats, it looks like the democrats, the brianites are going to take over, the republicans have systematically started dropping, even more so, all the pious stuff that they were established with, prohibitionism and anti-Catholicism and anti-Germanism and all the rest of it, and they start, and the morgans, who were, had been first practically running the democratic party, begin to realize the brianites are taking over, the morgans are committed to the gold standard at this point, and so the morgan forces in the republican party start dickering with McKinley, the Rockefeller forces,

1001
01:41:02.640 --> 01:41:20.640
The Morgans were pushing, the Republicans had their convention I think in June, in other words a month before, in St. Louis, and the Morgans were pushing for Levi P. Morton to become president, presidential nomination.

1002
01:41:20.640 --> 01:41:31.640
Levi P. Morton had been the vice president of the Democratic ticket, in other words in the Cleveland administration, he was the vice, I think the first one, New York Democrat, head of the Morton Trust Company,

1003
01:41:31.640 --> 01:41:35.800
and a very close friend and buddy of J.P. Morgan, who later became, the Morton Trust

1004
01:41:35.800 --> 01:41:40.440
Company later becomes part of the Morgan Guaranteed Trust, which is now of course the big Morgan

1005
01:41:40.440 --> 01:41:46.760
Bank, commercial bank. Anyway, a very close buddy of Morgan. He then, he shifts parties

1006
01:41:46.760 --> 01:41:50.440
in 1896, so they see the handwriting on the wall, the more, the conservative Democrats,

1007
01:41:50.440 --> 01:41:55.520
the libertarian Democrats, see that the Brianites are taking over, and they push him for a Republican

1008
01:41:55.520 --> 01:41:58.920
nomination when McKinley, the Rockefeller people behind McKinley, okay, so they have

1009
01:41:58.920 --> 01:42:04.680
have a big, high level of negotiations, Mark Hanna and McKinley go on Morgan's Yacht,

1010
01:42:04.680 --> 01:42:11.120
I think they had two meetings on Morgan's Yacht, but he had a big yacht, you might expect,

1011
01:42:11.120 --> 01:42:15.840
and they're discussing the whole situation, and Henry Cabot Lodge was one of Morgan's

1012
01:42:15.840 --> 01:42:21.840
top people in this thing, anyway, they strike a deal, the deal is this, Morgan said, look,

1013
01:42:21.840 --> 01:42:25.520
you got to adopt the gold standard, you got to be committed to the gold standard, if you're

1014
01:42:25.520 --> 01:42:30.220
If you're committed to the gold standard, then we'll back McKinley for the presidency, because we can't, of course, take Brian.

1015
01:42:30.220 --> 01:42:32.720
If, on the other hand, you don't accept the gold standard, nothing to you.

1016
01:42:32.720 --> 01:42:36.520
We'll either perform a third party or drop out or whatever.

1017
01:42:36.520 --> 01:42:39.520
And so, the deal was then struck.

1018
01:42:39.520 --> 01:42:46.520
The Republicans, for the first time, in the 1896 convention, adopt the gold standard as a commitment, a basic commitment.

1019
01:42:46.520 --> 01:42:53.520
In other words, they accept the anti-inflation plan, which the Democrats have been fighting for now for 70 years, virtually.

1020
01:42:53.520 --> 01:43:04.520
We could say 50 years, and this is a big thing. It's also a big thing of the Germans. Remember, the Germans, German-Americans, both Catholic and Lutheran placed their greatest, two things they're mostly interested in.

1021
01:43:04.520 --> 01:43:13.520
One is stopping prohibition, and two is the gold standard. Here the Republicans finally are committed to dropping the prohibition stuff, they're saying, how with it, and they're pushing the gold standard.

1022
01:43:13.520 --> 01:43:24.480
Now the silver republicans who really committed to free silver split from the party, I think

1023
01:43:24.480 --> 01:43:28.840
the split was organized by Senator William Teller of Colorado, who was himself one of

1024
01:43:28.840 --> 01:43:34.880
the founders of the Republican Party, who was, he and his mountain state republicans

1025
01:43:34.880 --> 01:43:39.480
built the convention, they formed their own party called the National Silver Ticket, Teller

1026
01:43:39.480 --> 01:43:44.480
Gold, by the way, himself was owned $2 million worth of silver, silver mining stock, and

1027
01:43:44.480 --> 01:43:45.480
so forth.

1028
01:43:45.480 --> 01:43:48.760
He particularly is interested in silver more than just abstract.

1029
01:43:48.760 --> 01:43:54.560
Anyway, so the silver forces did leave the Republican Party, they supported Brian from

1030
01:43:54.560 --> 01:44:01.200
their own fourth party ticket, but these were a small price to pay for German Lutheran support.

1031
01:44:01.200 --> 01:44:06.840
And as a matter of fact, when the silver Republicans gone, the McKinley people could say, we are

1032
01:44:06.840 --> 01:44:07.840
the gold standard party.

1033
01:44:07.840 --> 01:44:17.840
Interestingly enough, most historians, when they deal with this period, talk about the Republicans as being the gold standard party, not realizing this only happened in 1896, before that it was just the opposite.

1034
01:44:17.840 --> 01:44:29.840
So McKinley, in other words, gives out prohibition, adopts the gold standard. In the meantime, Brian takes over the Democratic party as an ultra-populist, ultra-prohibitionist person, ultra-inflationist.

1035
01:44:29.840 --> 01:44:38.600
So, as a matter of fact, the first step of the Chicago Convention of Democrats, the first

1036
01:44:38.600 --> 01:44:39.920
vote was, should we honor Cleveland?

1037
01:44:39.920 --> 01:44:44.040
Well, Cleveland's still the president, okay, he had two terms in office, it's an anti-third

1038
01:44:44.040 --> 01:44:49.920
term tradition, so he's not going to run, but the first vote was, should we honor Cleveland?

1039
01:44:49.920 --> 01:44:54.320
Which is sort of a thing, you almost always do that, but it was voted down by the Brian

1040
01:44:54.320 --> 01:44:57.840
Eye Convention, when that happened, of course, Cleveland people knew the jig was up.

1041
01:44:57.840 --> 01:45:03.340
As a matter of fact, the Cleveland people, from then on, Cleveland and its supporters kept saying the Democratic Party is dead as we know it.

1042
01:45:03.340 --> 01:45:05.840
The party of our fathers, they would put it, is dead.

1043
01:45:07.840 --> 01:45:15.340
Brian was a Southern stock, Southern stock pietist born in Southern Illinois. He was a Southern Baptist.

1044
01:45:16.340 --> 01:45:23.840
He was of course a great believer in compulsory immorality and safe social atmosphere, and the righteous, and prohibition and all the rest of it.

1045
01:45:23.840 --> 01:45:31.680
The, so of course to say, then the question is what do the laissez-faire Democrats do?

1046
01:45:31.680 --> 01:45:32.680
What do they do about this?

1047
01:45:32.680 --> 01:45:33.680
Brian is taking over the party.

1048
01:45:33.680 --> 01:45:36.680
Now it seems to me if they had any guts they would have formed a third party.

1049
01:45:36.680 --> 01:45:40.680
They said, okay, the Democratic Party is taking over, we form here by a laissez-faire party,

1050
01:45:40.680 --> 01:45:41.680
whatever you want to call it.

1051
01:45:41.680 --> 01:45:43.400
They didn't have the guts to do it.

1052
01:45:43.400 --> 01:45:44.400
Some of them wanted to do it.

1053
01:45:44.400 --> 01:45:45.400
Others said, well, we don't know.

1054
01:45:45.400 --> 01:45:46.400
Maybe we should be pro-McKinley.

1055
01:45:46.400 --> 01:45:52.840
They did, some of them did form the National Democratic Party called the Gold Democrats.

1056
01:45:52.840 --> 01:45:57.600
But only a few of them, and they didn't have the guts, they didn't want to, the Eastern

1057
01:45:57.600 --> 01:46:03.400
Democrats wanted to keep their control of the Eastern Democratic Party, which they lost anyway,

1058
01:46:03.400 --> 01:46:05.360
and so the whole thing sort of fell apart.

1059
01:46:05.360 --> 01:46:10.960
But basically what happened was the most liturgical Democrats, Cleveland Democrats, voted for

1060
01:46:10.960 --> 01:46:11.960
McKinley.

1061
01:46:11.960 --> 01:46:16.440
The bargain was struck, McKinley's not so bad anymore, he's given out prohibition, he's

1062
01:46:16.440 --> 01:46:22.200
pro-gold, and so there was a big enormous shift by German Catholic and Lutherans to

1063
01:46:22.200 --> 01:46:25.620
to the Republican ticket for the first time.

1064
01:46:25.620 --> 01:46:29.800
Polish Catholics, even Polish Catholics and dedicated Catholics, many of them voted Republican,

1065
01:46:29.800 --> 01:46:31.660
huge shift,

1066
01:46:31.660 --> 01:46:37.280
a huge shift both ways. There was a huge shift out of the Democratic Party by Catholics and Lutherans,

1067
01:46:37.280 --> 01:46:38.580
and a big shift

1068
01:46:38.580 --> 01:46:40.200
into the Republican Party by,

1069
01:46:40.200 --> 01:46:42.520
into the Democratic Party by pietists,

1070
01:46:42.520 --> 01:46:43.800
Scandinavians,

1071
01:46:43.800 --> 01:46:46.400
all sorts of stuff. The shift was more pronounced

1072
01:46:46.400 --> 01:46:49.980
because the Republican Party change was more gradual in the Democratic Party, the shift

1073
01:46:49.980 --> 01:46:53.660
out of the democrats was more severe, in other words, a big enormous shift, there was also

1074
01:46:53.660 --> 01:46:58.280
a counter shift of pietists, prohibitionists, in fact the prohibitionists more like liquidated

1075
01:46:58.280 --> 01:47:03.820
themselves into the democratic party, as the populists did too, they just became democrats

1076
01:47:03.820 --> 01:47:11.660
basically, so the whole s-no religious thing shifted, and something else happened, see

1077
01:47:11.660 --> 01:47:16.740
the old days, the rural, there was no rural-rural-urban split, in other words, there were lots of

1078
01:47:16.740 --> 01:47:31.740
The most historians talk about the Brianite movement as if it was an upsurge of the rate of all the farmers in the country against the rich.

1079
01:47:31.740 --> 01:47:36.740
If it was really true that it was a big upsurge against the rich, how come Brian was crushed in the general election?

1080
01:47:36.740 --> 01:47:40.740
He was crushed three times as a matter of fact, 1896, 1900, 1908.

1081
01:47:40.740 --> 01:47:47.040
If you had a mass popular uprising, because most historians tend to be pro-Brian, being left liberals, they identify with Brian.

1082
01:47:47.040 --> 01:47:52.040
If Brian represented an upsurge against the rich, against big business, how come Brian was always crushed every year?

1083
01:47:52.040 --> 01:47:57.040
There's something wrong, peculiar about this. Also, farmers did not vote for Brian, particularly.

1084
01:47:57.040 --> 01:48:04.240
Again, the breakdown is Catholic and Lutheran farmers voted for Republican, and pious farmers voted for Brian.

1085
01:48:04.240 --> 01:48:10.540
It's a very simple breakdown. That's no religious breakdown, except now it's just the opposite from the old days.

1086
01:48:10.540 --> 01:48:18.340
So, what happens to the Democratic Party from now on is, from then on, it begins to become

1087
01:48:18.340 --> 01:48:22.860
the ethnic group which is least defected from the Catholic is the Irish.

1088
01:48:22.860 --> 01:48:27.620
In other words, the Germans defected on mass, the German Catholics and the Lutheran and

1089
01:48:27.620 --> 01:48:29.820
the Bohemian Catholics and whatever.

1090
01:48:29.820 --> 01:48:33.380
The ones who really stuck to the Democratic Party are the Irish.

1091
01:48:33.380 --> 01:48:37.140
Basically the reason the Irish essentially went into civil service, in other words, the

1092
01:48:37.140 --> 01:49:07.140
Irish immigrants that came to the United States, for some reason became civil servants, they became sanitation workers, public school teachers, policemen, and firemen, okay, and so they were states, they were, in those days, they were very little civil servants, in other words, most of the jobs were patronage jobs, if you're left the democratic party, it means you're out of a job, you couldn't afford to leave it, so the Irish stuck to the democratic party, as a result of that, the democratic party, from now on, after 1897,

1093
01:49:07.140 --> 01:49:15.180
in 1936 begins to become a two-wing party, one the South and two urban Irish machines

1094
01:49:15.180 --> 01:49:16.180
in the city.

1095
01:49:16.180 --> 01:49:20.020
In other words, essentially the Northern Democratic Party gets taken over by the Irish and becomes

1096
01:49:20.020 --> 01:49:22.020
governors, mayors, senators, etc.

1097
01:49:22.020 --> 01:49:29.260
So the WASP Democrats, previous WASP or Cleveland types, get kicked out and the Irish take over.

1098
01:49:29.260 --> 01:49:42.260
As a result of this, this tended to alienate other successive ethnic groups, like Italian Catholics, who didn't particularly like Irish, so they began to be tempted by Republicans.

1099
01:49:42.260 --> 01:49:50.260
In other words, over the years from then on, Italians were no longer solidly democratic, as Catholics would have been, you know, before 1896.

1100
01:49:50.260 --> 01:50:05.260
So you have a strange situation, you have the Democratic, we begin to get then, in other words, after 1896, a completely new party system, the Republican Party becomes the majority party, as long as we're a big, very close race, except for Woodrow Wolf's, yeah.

1101
01:50:05.260 --> 01:50:26.260
The gold standard has been given up by all the power elite at this point, and the Germans

1102
01:50:26.260 --> 01:50:51.540
The Rockefeller-Morgan types essentially run the establishment of both parties, establishment

1103
01:50:51.540 --> 01:50:57.940
for Democrats, established for Republicans, whereas say Reaganites are more the sunbelts

1104
01:50:57.940 --> 01:51:03.180
south and west, let's say Texas and Southern California, the sunbelt type, this is post-World

1105
01:51:03.180 --> 01:51:08.140
War II development, before World War II the Rockefeller-Morgan breakdown more or less holds,

1106
01:51:08.140 --> 01:51:14.460
since World War II it's very different, the Morgans have become junior, quiet plays, hey,

1107
01:51:14.460 --> 01:51:20.740
quiet plays, before World War II the, I mean right now since World War II the Morgans have

1108
01:51:20.740 --> 01:51:26.740
The oil has become a junior partner to the Rockefellers, and not nearly as strong, the oil has become predominant in the Eastern establishment.

1109
01:51:26.740 --> 01:51:28.740
Well, before World War II it was very different.

1110
01:51:28.740 --> 01:51:34.740
Oh yeah, there's certainly some more in the Rockefellers, absolutely, oh yeah, my goodness.

1111
01:51:34.740 --> 01:51:44.740
Well, let's put it this way, in the Eisenhower administration, the Secretary of State was John Foster Dulles,

1112
01:51:44.740 --> 01:52:00.740
The head of the CIA, which in those days had almost equal power, it was a secret organization, no accounting of anybody, was Alan W. Dulles, his brother, and the head of the Berlin desk of the State Department was Eleanor Lansing Dulles, sister.

1113
01:52:00.740 --> 01:52:10.740
Who are the Dulles family? Is it really true that the whole United States was a lot of talent?

1114
01:52:10.740 --> 01:52:15.740
One lousy family should run the entire foreign policy of the United States. Who are they?

1115
01:52:15.740 --> 01:52:24.740
In addition to being beloved people, who are they? Well, both Dulles brothers were lawyers for Sullivan and Comba, which was founded by a lawyer, Rockefeller lawyers.

1116
01:52:24.740 --> 01:52:29.700
Also, the Undersecretary of State, which is the number two position in the State Department,

1117
01:52:29.700 --> 01:52:34.340
held by an extremely beloved representative, Christian Herter, of Massachusetts.

1118
01:52:34.340 --> 01:52:38.820
By beloved, I mean the sort of person who was beloved by New York Times, Newsweek and Time Magazine,

1119
01:52:38.820 --> 01:52:40.820
so people praised by this sort of group.

1120
01:52:40.820 --> 01:52:45.460
So Christian Herter, the Undersecretary of State, who was Christian Herter?

1121
01:52:45.460 --> 01:52:50.100
He was a former Republican congressman of Massachusetts who had a lot of charisma,

1122
01:52:50.100 --> 01:52:55.100
I don't know, 6'6 or something, had a bad foot, so he limped, made him a romantic figure.

1123
01:52:55.100 --> 01:52:59.100
Anyway, what was really important was he was married to a Pratt, and his wife was a member of the Pratt family,

1124
01:52:59.100 --> 01:53:04.100
which had been a Rockefeller family since 1880, so he was a family.

1125
01:53:04.100 --> 01:53:10.100
So the whole Eisenhower foreign policy was Rockefeller foreign policy from the beginning to the end.

1126
01:53:10.100 --> 01:53:16.100
Now that's, of course, a fairly bold example.

1127
01:53:16.100 --> 01:53:20.180
Her administration was also a solid Rockefeller from the Trilateral Commission, so it doesn't

1128
01:53:20.180 --> 01:53:24.620
have to be both parties now, so the Rockefellers felt very strong, much stronger than Morgan.

1129
01:53:24.620 --> 01:53:29.500
Morgan's an absolute, let's say, junior partner at the Rockefellers at this point, post-World

1130
01:53:29.500 --> 01:53:30.500
War II oil.

1131
01:53:30.500 --> 01:53:33.500
I mean, it's a big thing.

1132
01:53:33.500 --> 01:53:44.500
At any rate, if we get back to 1896, where gold becomes a key, indeed a key point, the

1133
01:53:44.500 --> 01:53:50.860
So what happens then, the Democratic Party after that becomes a one-horse party, basically

1134
01:53:50.860 --> 01:53:56.940
a minority party, Republicans become the majority party, no longer close elections, this lasts

1135
01:53:56.940 --> 01:54:04.740
from 1896 until 1932, except for the Wilson administration where the Republican Party

1136
01:54:04.740 --> 01:54:10.060
was split down the middle for Rockefeller-Morgan reasons, by the way, we'll see, and the Democrats

1137
01:54:10.060 --> 01:54:40.060
New York has become a minority party consisting only of the South and Irish, New York, you know, big city machines, in other words, New York, Wisconsin, whatever, which are essentially Irish, an Irish party, so we have the South plus Irish big city, by the way, the one funny thing was the Democratic convention in 1924, which was held in New York City in the summer, first they had to realize there was no air conditioning then, they had 104 ballots, I mean, it went on for weeks,

1138
01:54:40.060 --> 01:54:48.060
very hot old Madison Square Garden, Southern Baptist and Methodist pious coming up and confronting New York Irish types,

1139
01:54:48.060 --> 01:54:55.060
scared stiff of the Jesuits because the Jesuits were behind every tapestry, every hour, thinking the Jesuits would knife them at any moment,

1140
01:54:55.060 --> 01:55:02.060
unbelievable culture clash between the Southern Democrats and the New York and the big city Irish Democrats, arguing about prohibition and lots of other forms,

1141
01:55:02.060 --> 01:55:05.060
Irish never accepted prohibition obviously.

1142
01:55:05.060 --> 01:55:09.440
By the way, Prohibition comes in in the Democratic administration during World War I, it looks

1143
01:55:09.440 --> 01:55:13.420
like that, all this women's suffrage comes in the Democratic Party, immigration restriction

1144
01:55:13.420 --> 01:55:18.780
comes in with the Democrats, and Prohibition comes in, the Republicans in other words drop

1145
01:55:18.780 --> 01:55:24.020
it, after they get in, they figure we're the majority party, we have to putz around Prohibition

1146
01:55:24.020 --> 01:55:26.940
and the other nonsense, what the heck with that, we're in, and we're going to be in

1147
01:55:26.940 --> 01:55:31.340
from now on, so that was the, the Republicans then as they become the majority party, except

1148
01:55:31.340 --> 01:56:01.340
So these fringe groups, really, as I've announced it, the Democrats become, so we have the Republicans as a centrist party, in other words, not ideologically strong, so sort of middle-of-the-road party in general, except committed to protective power, and the Democratic party, after a fling with an ultra-opiatist, sort of begin to drop that, they both become progressive, in other words, after 1900, they both become statist parties,

1149
01:56:01.340 --> 01:56:12.340
The first status, we want to call it, so-called progressive, becomes, in other words, very little difference after about 1900 or so between the republicans and democrats, except for this lingering ethnic or southern, you know, regional orientation.

1150
01:56:12.340 --> 01:56:18.340
This is the so-called fourth party system, 1896, 1832.

1151
01:56:18.340 --> 01:56:25.340
And the thing about the fourth party system, which continues to this day in the fifth or sixth party system, wherever we're in, is the parties are no longer ideological.

1152
01:56:25.340 --> 01:56:32.620
The parties now become like we know and love today, with very little choice, I put love

1153
01:56:32.620 --> 01:56:38.020
in quotation marks, becomes non-ideological, people begin to lose interest, in other words

1154
01:56:38.020 --> 01:56:43.940
the turnout rate means eligible voters have turned out to vote, which is very high in

1155
01:56:43.940 --> 01:56:48.220
the late 19th century, very high in 1896, very high before that, like 90% of presidential

1156
01:56:48.220 --> 01:56:49.220
elections begins to drop.

1157
01:56:49.220 --> 01:56:52.780
People don't really care that much, it gets to the point that two parties become very

1158
01:56:52.780 --> 01:56:59.780
People lose interest. As the people lose interest, this explains why there was no laissez-faire party after 1896.

1159
01:56:59.780 --> 01:57:03.780
There was no body of people fighting for free trade, free markets, and all that sort of stuff.

1160
01:57:03.780 --> 01:57:08.780
And this leaves a power vacuum open for progressivism of the welfare state, warfare state, whatever you want to call it.

1161
01:57:08.780 --> 01:57:13.780
In other words, after the takeover of 1896, the laissez-faire people lose their party.

1162
01:57:13.780 --> 01:57:16.780
If you lose a party in those days, it means you lose politically, period.

1163
01:57:16.780 --> 01:57:21.780
Because there's nobody coming in to refuel, you know, to continue the agitation of propaganda, whatever.

1164
01:57:21.780 --> 01:57:26.660
and so this is the this in other words explains why it is you know I was always puzzled by the fact I can

1165
01:57:26.660 --> 01:57:30.980
understand why statism takes over after 1900s intellectuals become statists big businessmen

1166
01:57:30.980 --> 01:57:34.420
become statists as we'll see but what happened to the democratic party what happened to this party

1167
01:57:34.420 --> 01:57:38.820
which is a bastion of libertarian laissez-faire sentiment well what happened was they got taken

1168
01:57:38.820 --> 01:57:46.820
over and so the party system then loses its point as an ideological spokesman and the whole system

1169
01:57:46.820 --> 01:57:56.820
The party voting becomes less important, that means technocrats begin to take over. Administrators, bureaucrats, intellectuals, they begin to take over without the parties being a check on them.

1170
01:57:56.820 --> 01:58:03.820
In other words, democracy really loses a lot of its saver because it means you don't have a powerful party system riding herd on the other parties.

1171
01:58:03.820 --> 01:58:11.820
If you do have two parties, they collaborate. For example, how come the Queen's Republican Party says nothing about the Queen's Democratic trickery here?

1172
01:58:11.820 --> 01:58:21.220
Sam said a word, and he probably won't because they're all in cahoots together anyway, there's no real, there's no antagonism, it's not like the good old days where each party hated each other's guts

1173
01:58:21.220 --> 01:58:25.820
Nah, there's nothing to hate them, it's just a bunch of sort of crooks in it together, so why rock the boat?

1174
01:58:25.820 --> 01:58:35.780
You don't have the great ideological passions that you did when you have pietism versus laissez-faire, that sort of stuff, it's all shot from 1896 on

1175
01:58:35.780 --> 01:58:38.260
Anyway, some marvelous and lovable stuff

1176
01:58:38.260 --> 01:58:41.080
I just want to quote one thing here

1177
01:58:41.080 --> 01:58:43.820
about the reaction of the Germans to the

1178
01:58:43.820 --> 01:58:48.180
take to the Brianites

1179
01:58:48.180 --> 01:58:51.180
I think it's extremely lovable here

1180
01:58:51.180 --> 01:58:54.140
uh...

1181
01:58:54.140 --> 01:58:58.500
where is this?

1182
01:58:58.500 --> 01:59:01.340
the uh...

1183
01:59:01.340 --> 01:59:08.340
I don't know if it's later, but the...

1184
01:59:31.340 --> 01:59:41.340
This is an idea of what happened, for example, in Wisconsin, a heavily German state in 1896.

1185
01:59:41.340 --> 01:59:49.340
For example, in a couple of townships, a very heavily German Lutheran in Wisconsin, there

1186
01:59:49.340 --> 01:59:54.340
were two townships that were striking. The other parts of the state aren't that striking,

1187
01:59:54.340 --> 02:00:02.780
In 1892, one is Hustesford Township, Wisconsin, the other is Carriza Township, and in these

1188
02:00:02.780 --> 02:00:10.180
two townships, in 1892, these are all solidly German Lutheran, that's how we can know how

1189
02:00:10.180 --> 02:00:14.980
the Lutherans voted, because these were all, people settled here, it was not a melting

1190
02:00:14.980 --> 02:00:18.580
pot in the United States, it was a mosaic, every little parish was different, so this

1191
02:00:18.580 --> 02:00:25.580
In this township, which was solidly German Lutheran, in 1892, the vote was 85% democratic,

1192
02:00:25.580 --> 02:00:29.580
enormous, 91% of Theresa, it was almost unanimous.

1193
02:00:29.580 --> 02:00:36.580
In 1894, because of the Depression, it was a slight falling off, 82% Democrat, 81% Democrat,

1194
02:00:36.580 --> 02:00:38.580
still very solid.

1195
02:00:38.580 --> 02:00:45.580
In 1896, because of the Brianite takeover, the Hustlersford township voted 46% Democrat

1196
02:00:45.580 --> 02:00:47.580
and 43% of Theresa, enormous.

1197
02:00:47.580 --> 02:01:15.580
I mean dramatic shift, never vote a Republican in their lives, in a state as a whole, a whole state of Wisconsin and the German Lutherans voted 85% Democrat in 1892, in 1894 they voted 59% Democrat because of the Depression,

1198
02:01:15.580 --> 02:01:22.100
In 1896, they were a 30% Democrat. Massive ship of the brianism.

1199
02:01:22.100 --> 02:01:30.740
One very charming thing is, in Milwaukee, running for Democratic congressman, was a guy named Richard Schilling.

1200
02:01:30.740 --> 02:01:36.060
He was a brianite. He had a meeting before the German masses of Milwaukee, trying to explain to them,

1201
02:01:36.060 --> 02:01:41.380
what now would be called Freemannite or Keynesian monetary theory, namely, why you don't have to have gold as money.

1202
02:01:41.380 --> 02:01:47.280
and he says, you don't have to have gold as money, anything else would do just as well as gold, he said, the German masses in Milwaukee, he said,

1203
02:01:47.280 --> 02:01:54.980
you could have silver as money, you could have paper or copper or paper or sauerkraut or sausages,

1204
02:01:54.980 --> 02:02:00.620
could do just as well as money, at that point the German masses in Milwaukee put him off the stage, threw eggs and cabbages and all that at him,

1205
02:02:00.620 --> 02:02:05.880
drove him off the stage, the Republican Party, now being committed to gold and being very shrewd,

1206
02:02:05.880 --> 02:02:12.880
immediately coined the slogan, shilling in sauerkraut, sauerkraut money, and swept Milwaukee for the first time in many years in the Republican Party.

1207
02:02:12.880 --> 02:02:15.880
So that's the sort of stuff that happened.

1208
02:02:15.880 --> 02:02:24.880
And not only that, but the Johann Most, who was the German head of the communist anarchist movement, which was German.

1209
02:02:24.880 --> 02:02:28.880
And don't forget, the communist anarchists were in favor of abolishing all money, period.

1210
02:02:28.880 --> 02:02:31.880
I mean, compulsory abolition of all money. He came out in favor of the gold standard in 1896.

1211
02:02:31.880 --> 02:02:37.680
In 1896, I think it was Charming, so dedicated to gold with the German masses, he finally

1212
02:02:37.680 --> 02:02:43.080
had to come out, he too was in favor of the gold standard.

1213
02:02:43.080 --> 02:02:48.280
As the Illinois Stadtzeitung said in 1896, the German-American paper in Illinois said,

1214
02:02:48.280 --> 02:02:52.040
looking back on the election, on the German electorate, they said, the Germans have had

1215
02:02:52.040 --> 02:02:56.280
many complaints against the Republican Party, which annoyed them continually with prohibition

1216
02:02:56.280 --> 02:02:59.960
laws, Sunday school laws, Sunday closing laws and school laws.

1217
02:02:59.960 --> 02:03:04.520
The Germans constantly turned their backs upon the Republicans. The result of Cleveland was twice elected.

1218
02:03:04.520 --> 02:03:10.520
And if the Democrats had uninscribed repudiation, bankruptcy and dishonor upon their colors as a result of their union with the populace,

1219
02:03:10.520 --> 02:03:13.360
I mean, Brian, the Germans would have supported them this time also.

1220
02:03:13.360 --> 02:03:18.920
So that was the, I'm going to say, that was the kind of a hallmark of the shift, the democratic shift.

1221
02:03:18.920 --> 02:03:24.720
And we get into a fourth party system, a very different, non-ideological party, Republicans winning most of the time.

1222
02:03:24.720 --> 02:03:30.760
and this only changes with the new deal, in the thirties when we get a democratic party system, basically

1223
02:03:30.760 --> 02:03:33.640
lasting another, you know, until, say, the seventies.

1224
02:03:33.640 --> 02:03:34.640
Okay, that's enough for today.
