During. General Grant's first administration a new' party arose as the result of a reaction against the extreme centralization of power in the Federal Government due to the ex igencies of war. This party was known as the Liberal Republiean Party. and numbered among its adherents some of the most prominent names in the old Republican Party, such as Horace Greeley (q.v.). Charles Francis Adams, Charles Sumner. and Carl Schurz. This party nominated, in 1S7:2, florae*. Greeley. of New York, for President. and B. Gratz Brown, of Missouri, for Vice-President, on a platform deprecating any further interference by the Government in the local affairs of the South. (See LIBERAL FIEPUB LICAN PARTY; REPUBLICAN PARTY.) This ticket was ratified by the convention of the Democratic Party held in the same year. The Republicans renominated General Grant, with Henry Wilson (q.v.). of Massachusetts, for Vice-President. The Republican ticket received 286 electoral votes, against scattering. Greeley having died before the Electo•ai College met. Of the popular votes Grant received :3,597,132. Greeley 2,834,125. In this election appeared for the first time the Prohibition Party and a Labor Reform Party, the latter being an expression of a significant movement among workingmen which began during this administration, and led in 1869 to the first attempt in the 'United States to organize on a permanent basis all kinds of manual labor. The votes of Louisiana and Arkansas and three votes from Georgia were not counted.
A serious dilliculty with Spain arose because of the seizure on October 31, 1372. by the Span ish steamer Tornado of the Viryinius, a filibuster ing vessel flying the American flag, and the ex ecution of part of her crew. See VIRGINIUS MASSACRE.
In 1S73-74 the party known as 'Grangers' or `Patrons of Husbandry' (see GRANGE) rose into some prominence: an act for the resumption in 1879 of specie payment was passed in January, 1875; and an extensive 'Whisky Ring' involving a corrupt association among distillers and Fed eral officers to defraud the Government of the tax on liquors was exposed in the same year. (See WHISKY RING.) A new coinage act, since denounced by advocates of free silver as the `crime of 1873: was passed providing for the coinage of gold and of fractional silver currency; an act known as the `salary grab' was passed in 1873: and much local disorder occurred in the Southern States between the so-called 'carpet bag' governments and the white citizens, Grant.in terfering in what many considered a harsh and arbitrary manner. During Grant's second ad ministration occurred the disastrous financial panic of 1873. A movement for the inflation of the paper currency was set on foot, and was checked by President Grant through his veto of the so-called Inflation Bill. which had been passed by Congress. This administration was disturbed by wars with the Modocs and Sioux, the latter of whom overwhelmed General Custer's command in 1876. (See CySTER. GEORGE A.)
In Philadelphia, between May and November, 1876, was held a mammoth exposition to com memorate the centennial of American indepen dence. See CENTENNIAL EXHIBITION.
With Grant's administration of affairs much dissatisfaction was felt throughout the country, owing to corruption on the part of high Govern ment officials. Before the close of his first term there were ninny signs of reaction against Re publican rule, and the organization of the Liberal Republican Party showed the disaffection of a considerable element in the Republican Party itself. By the close of his second term a well defined and powerful opposition had arisen, based primarily on the President's apparent severity toward the South; on legislative scandals, such as the Crklit Mobilier affair and the 'salary grab' scandal in Congress: the Whisky Ring scandal and the impeachment for eorrup lion in distributing patronage of Belknap. Sec retary of War, who resigned rather than sub mit to a trial; and on alleged general adminis trative demoralization, caused in part at least by the President's appointment, upon the advice of political leaders, of a number of unfit officials. Further discontent was caused by the conse quences of the disastrous panic of 1873, for which, as was inevitable, the Administration was held by many in a measure accountable. Many 'War Democrats,' moreover, who had lent their support to the Republican Party when the prosecution of the war was the all-abso•bing is sue, now began to return to their old party affiliations, and to emphasize issues different from those immediately involved in the Repub lican war policy.
Colorado was admitted as a State, August 1, 1876. In 1876 the Republican candidates were Rutherford B. Hayes, of Ohio, and William A. Wheeler, of New Yo•k; the Democratic can didates were Samuel J. Tilden, of New York. and Thomas A. Hendricks, of Indiana. On the face of the returns. Tilden and Hendricks seemed to have 184 electoral votes, to 172 for Hayes and Wheeler, with the votes of Florida, South Caro lina, and Louisiana, and one vote of Oregon in doubt. Charges were made of fraudulent voting in several States; party feeling ran so high as to suggest the possibility of acts of violence to se cure control of the Government: and all the at tendant circumstances made the struggle one of the most momentous since the foundation of the Government. Hayes and Wheeler were finally de clared elected by an Electoral Commission chosen from both HouSes of Congress and from the Su preme Court of the United States, whose decision was accepted by all concerned as final and ir revocable. (See ELECTORAL COMMISSION.) As thus finally decided 185 electoral votes were given to Hayes and Wheeler and 184 votes to Tilden and Hendricks.