The State of the Union: Colfax’s Second Term
The Second Term of Schuyler Colfax is defined by two main legacies. The first is the ending of slavery in the United States of America (as covered previously). However, to understand the second legacy of the Colfax administration, a healthy heap of context is required.
Following the loss of the Southern States in the war, the United States was in a rather bad place financially. Military spending remained high due to the continual threat of a second war between the states, as well as raids by southern bandits and Confederate-aligned Indigenous tribes. As well, while the Industrialized North was outcompeting the South in most ways, the loss of what boons the South did provide was not helpful.
Colfax was not Pendleton, but he was not squeaky-clean himself. It has been speculated he may have also been involved in railway-related Fraud, though he has never been decisively-confirmed to have been, and allegations only emerged after his Presidency ended. He was, however, almost certainly aware of the fraudulent activities of others in the government and did little to nothing to intervene. While scandal and crime would be a lasting legacy of Colfax’s administration, it was not directly his doing.
Instead, the major scandal was tied to Vice President Henry Wilson, though he too was not actually involved in the scandal proper. Wilson’s son, a former cavalry officer, had been discharged due to health issues. The younger Wilson was looking for work, and had become entwined in the affairs of a Mr. Jay Gould. Gould, a railway investor, and his partners had befriended the younger Wilson, and made him a part of their business. Using their connections to him, and by extension the Vice President, Gould and his band influenced speculation and sought to corner the market on Gold, which would lead to economic turmoil on the West Coast and a financial reorientation towards the East. It is speculated by some more conspiratorially-minded historians that Colfax, who had met with Gould and his comrades and discussed economics with them (as recorded in legal proceedings following the scandal), but this is definitely not certain, as Gould was a Democrat and a friend of Colfax’s former enemy Boss Tweed, and Colfax’s administration did what they could to remedy the crisis. Regardless, the plot was a failure, and while Gould initially managed to make some profit anyways, the fallout of what became known as the Black Friday Plot of 1875 ruined him.
(This OTL cartoon feels anti-Semitic, but Gould wasn't Jewish, so I'm not sure, but still suspicious.)
“
Boss, listen, this isn’t good.”
“You think I don’t know that? Gould’s chicanery could bring Tammany Hall down altogether! Forget about the Presidency, none of us will have careers if Gould talks.”
“Why would he talk about us? These lawsuits are unlikely to bring our connection to light. Besides, he’s one of our best allies.”
“I know that, but we can’t let this stand. Gould’s a slime-sucker just as much as any other successful man on God’s green Earth. He’ll sell us out if he feels it will save even one patch of his skin.”
“So what do we do?”
“We take care of it. Cleanly. We have all made a mess, and we need to clean it up before mother thrashes us.”
Jay Gould died on his way to court to fight a lawsuit against him. The assassin was a disgruntled Californian businessman, who had traveled across the nation to avenge his financial failures. These failures were utterly unrelated to Gould’s schemes, but the man had gotten it into his head that Gould had somehow caused his downfall. Strangely, Gould’s assassin had known the precise location Gould would be, and had seemingly been aware of Gould’s every movement.
The scheme did not ruin the Republican party by any means. Colfax managed to avoid any legal fallout given the lack of evidence for his involvement. Impeachment against Vice President Wilson was considered, but he boldly argued his own innocence, and no legal action was taken. His reputation was ruined, however. His son, whose knowledge of the plot is debated, never worked again, and eventually died only a year after the scheme failed.
Boss Tweed, whose association with Gould was not public knowledge, managed to once-again manage to claim the Democratic Nomination, running against Republican Rutherford B. Hayes. Both men attacked the corruption of their oppositional party, a tactic largely avoided by Colfax but which Hayes put into effect as a result of Tweed’s heavy focus on the supposed connection between the Republicans and the Gould ring. Hayes attacked Tammany hall on the same basis, but connections between that ring and Gould’s were far less obvious or quantifiable.
Tweed oriented very heavily to populist rhetoric, declaring that his presidency would truly be “for the people, by the people”. He would bring the Union out of the shadow of the war and into a new age, a golden age. Tweed also declared his candidacy to be one which would elevate not just the “American elite”, but hard-working average Americans and immigrants.
While the results were very close, the Western states’ last-minute flipping towards the Democrats, credited to rampant conspiratorial thought concerning Republican connections to the scheme to destroy their economies, managed to secure Tweed’s victory.
Samuel Clemens, a reporter whose life was about to become very interesting, mockingly referred to the age Tweed would bring about as one simply Gilded, not cast, in Gold.