lettersforvivian.org – Grover Cleveland’s second term as president (1893-1897) was marked by a unique set of challenges, triumphs, and tribulations. Having already served as the 22nd president from 1885 to 1889, Cleveland returned to the White House in 1893 as the first and only president in U.S. history to serve two non-consecutive terms. His second administration, however, was far from the optimistic beginning that many had hoped for. Cleveland faced a national economic crisis, a turbulent political landscape, and significant opposition from both political opponents and members of his own party.
Despite the challenges, Cleveland’s presidency was defined by his continued commitment to his core principles of fiscal conservatism, limited government, and support for the gold standard. His actions during his second term shaped both the course of the nation and the Democratic Party for years to come.
This article explores the key events, challenges, and achievements of Grover Cleveland’s second term and evaluates how they contributed to his legacy as a president who faced immense adversity with determination and pragmatism.
The Crisis of 1893: The Panic and the Depression
The Onset of the Panic of 1893
When Grover Cleveland assumed office for the second time in 1893, the United States was on the brink of an economic collapse. The Panic of 1893, which was precipitated by a series of financial failures, including the collapse of the Philadelphia and Reading Railway and the National Cordage Company, sparked the worst depression in U.S. history up to that point. The nation’s economy was in freefall, and unemployment rates soared, reaching as high as 18%. The panic led to widespread bank failures, mass unemployment, and significant economic hardship for millions of Americans.
The causes of the panic were multifaceted, but some of the key contributing factors included over-speculation in railroads, agricultural overproduction, and the international instability in European financial markets. Additionally, there was a growing public concern over the gold standard, which Cleveland championed, and the nation’s dwindling gold reserves. Many believed that the money supply needed to be expanded to counter the crisis, but Cleveland remained steadfast in his belief that the gold standard was essential to economic stability.
Cleveland’s Response to the Panic
Cleveland’s response to the Panic of 1893 was shaped by his firm commitment to the gold standard, which he believed was critical to preserving American financial integrity. As a result, Cleveland took a controversial step in asking Congress to repeal the Sherman Silver Purchase Act of 1890, a law that had required the federal government to purchase large amounts of silver, potentially increasing the money supply. Cleveland argued that the law was contributing to the depletion of the nation’s gold reserves and exacerbating the panic.
The decision to repeal the Sherman Silver Purchase Act was a highly contentious one. It faced opposition from populists, silver advocates, and many within his own party who viewed silver as a solution to the financial crisis. However, Cleveland saw silver as a destabilizing force and believed that the repeal would restore confidence in the gold standard and stabilize the economy.
In addition to the silver issue, Cleveland also pushed for a reduction in tariffs, believing that high tariffs were contributing to the economic downturn by raising the cost of goods. He advocated for tariff reform as part of a broader effort to reduce government interference in the economy and ensure a more competitive market.
Although Cleveland’s efforts to address the panic were rooted in his belief in sound fiscal policy, his stance alienated many members of his party and cost him political support. The economic downturn, coupled with the unpopularity of the repeal of the Sherman Silver Purchase Act, led to significant opposition from the populist and silver wings of the Democratic Party.
The Depression Deepens
Despite Cleveland’s efforts, the economic depression worsened throughout his second term. Unemployment remained high, and the country faced an economic collapse that lasted for several years. Cleveland’s rigid adherence to the gold standard and his reluctance to consider alternatives, such as the free coinage of silver or inflationary measures, created a divide within the Democratic Party. Many workers and farmers, particularly those in the West and South, believed that silver could help alleviate the economic pressures they were facing. They saw Cleveland’s policies as benefiting only the wealthy elite and contributing to the stagnation of the economy.
This sense of discontent would fuel the rise of populist movements, including the Populist Party, which called for bimetallism (the use of both gold and silver as a standard) and an expansion of the money supply. Cleveland’s response to these demands was dismissive, further isolating him from the growing populist movement.
Labor Unrest: The Pullman Strike of 1894
The Pullman Strike
One of the most significant labor events of Cleveland’s second term was the Pullman Strike of 1894. The strike, which began at the Pullman Company in Chicago, was sparked by wage cuts and high rents for company housing. The Pullman workers, led by the American Railway Union (ARU) and its leader Eugene V. Debs, organized a nationwide strike to protest the conditions they faced. The strike quickly spread to other cities, and rail transportation across the country was brought to a standstill.
Cleveland’s response to the strike was decisive and controversial. Believing that the strike was disrupting the nation’s economy and mail delivery, Cleveland ordered federal troops to intervene. The intervention led to violent clashes between the strikers and federal troops, resulting in several deaths and injuries. The use of military force to break the strike drew sharp criticism from labor leaders, progressives, and many members of the public who believed that Cleveland had sided with corporate interests at the expense of working-class Americans.
The Impact of the Pullman Strike
The Pullman Strike had long-lasting implications for both the labor movement and Cleveland’s presidency. While Cleveland’s decision to use federal troops to quash the strike was supported by business interests and some members of the government, it further alienated him from the growing populist and labor movements. The events surrounding the strike highlighted the tension between the federal government’s role in maintaining order and the rights of workers to organize and protest.
The Pullman Strike also demonstrated the growing influence of labor unions, with Eugene V. Debs becoming a national figure after his imprisonment for his role in leading the strike. Debs would later go on to run for president as a Socialist candidate, further polarizing the American political landscape.
Cleveland’s Image and the Long-Term Consequences
The Pullman Strike was a turning point in Cleveland’s presidency. It was a significant factor in the erosion of his popularity, particularly among labor unions and populist groups. Cleveland’s willingness to deploy federal troops to break a labor strike reinforced his image as a conservative president who prioritized corporate interests over the welfare of ordinary workers.
In the long term, the events of the Pullman Strike would contribute to the growing divide between the political establishment and the working class. This division would become even more pronounced in the years following Cleveland’s presidency, as the rise of labor movements and the continued challenges of the Industrial Revolution pushed the U.S. into new political and social directions.
Tariff Reform: Cleveland’s Battle for a Lower Tariff
The Wilson-Gorman Tariff
Another important aspect of Cleveland’s second term was his battle for tariff reform. Throughout his first term, Cleveland had advocated for lower tariffs, believing that they protected monopolies and raised the cost of living for consumers. He continued this advocacy during his second term, pressing for a reduction in the tariff rates.
Cleveland’s push for tariff reform led to the introduction of the Wilson-Gorman Tariff Act of 1894. While the bill did lower tariffs, it was a watered-down version of Cleveland’s original proposal, due to compromises made with Congress and the influence of special interest groups. The Wilson-Gorman Tariff did include provisions for an income tax, which was a bold and progressive measure at the time. However, the income tax was later ruled unconstitutional by the Supreme Court in 1895.
Cleveland’s fight for tariff reform was one of the few successes of his second term. However, the inability to achieve a more comprehensive reduction in tariffs left many disappointed with his presidency. The battle over tariffs also illustrated the deep divisions within the Democratic Party, with Cleveland’s fiscal conservatism in direct conflict with the protectionist policies favored by many in Congress.
The End of Cleveland’s Presidency: A Mixed Legacy
The Election of 1896
As Cleveland’s second term neared its end, the economic depression and his unpopular policies left him politically weakened. The 1896 presidential election would see the rise of William McKinley, who ran on a platform of high tariffs, the gold standard, and economic recovery. McKinley’s victory in 1896 marked the end of the era of Cleveland-style Democratic leadership and the beginning of a new phase in American politics.
Cleveland chose not to seek a third term, leaving the Democratic Party fractured and divided. His handling of the Panic of 1893, the Pullman Strike, and tariff reform made him a controversial figure in the eyes of many Americans. Yet, Cleveland’s steadfast commitment to the gold standard and fiscal conservatism remained a defining feature of his legacy.
The Triumphs and Tribulations of Cleveland’s Second Term
Grover Cleveland’s second presidency was undeniably marked by significant challenges. The Panic of 1893 and the subsequent depression dominated his time in office, and his rigid adherence to the gold standard and opposition to silver made him a polarizing figure. The Pullman Strike and labor unrest further complicated his political standing, and his failure to secure comprehensive tariff reform left many of his goals unfulfilled.
Despite these setbacks, Cleveland’s second term was also characterized by some important achievements. His efforts at tariff reform, though compromised, represented a genuine attempt to reduce corporate influence. His commitment to maintaining the gold standard, while unpopular, demonstrated his unwavering belief in fiscal responsibility. Moreover, his response to the economic crisis and his willingness to engage with reform groups demonstrated a pragmatism that would become a hallmark of his leadership.
In the end, Grover Cleveland’s second term was one of both triumph and tribulation. His presidency was a reflection of the turbulent times in which it took place, and his efforts to address the nation’s economic challenges left a mixed but lasting legacy.
