Grant Administration Scandals

Grant Administration Scandals

Ulysses Grant’s time in office was marked by scandal and corruption, although he himself did not participate in or profit from the misdeeds perpetrated by some of his associates and appointees. During his first term, a group of speculators led by James Fisk (1835-1872) and Jay Gould (1836-1892) attempted to influence the government and manipulate the gold market. The failed plot resulted in a financial panic on September 24, 1869, known as Black Friday. Even though Grant was not directly involved in the scheme, his reputation suffered because he had become personally associated with Fisk and Gould prior to the scandal. Another major scandal was the Whiskey Ring, which was exposed in 1875 and involved a network of distillers, distributors and public officials who conspired to defraud the federal government of millions in liquor tax revenue. Grant’s private secretary, Orville Babcock (1835-1884), was indicted in the scandal; however, the president defended him and he was acquitted. Grant’s presidency occurred during an era dominated by machine politics and the patronage system of political appointments, in which politicians rewarded their supporters with government jobs and the employees, in turn, kicked back part of their salaries to the political party. In order to combat the corruption and inefficiency that resulted from this system, Grant established a civil service commission to develop more equitable methods for hiring and promoting government workers. However, civil service reform faced opposition from Congress and members of Grant’s administration, and by 1876 the commission’s funding was cut off and reform rules such as standardized exams were discontinued. Lasting reform did not take hold until 1883, when President Chester Arthur (1829-1886) signed the Pendleton Civil Service Act.