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Reconstructed ended when national attention turned away from the integration of former slaves as equal citizens enabling white Democrats to recapture southern politics. Between 1868 and 1877, and accelerating after the Depression of 1873, national interest in Reconstruction dwindled as economic issues moved to the foreground. The biggest threat to Republican power in the South was violence and intimidation by white conservatives, staved off by the presence of federal troops in key southern cities. Reconstruction ended with the contested Presidential election of 1876, which put Republican Rutherford B. Hayes in office in exchange for the withdrawal of federal troops from the South.
Republicans and Democrats responded to the economic declines by shifting attention from Reconstruction to economic recovery. War weary from nearly a decade of bloody military and political strife, so-called Stalwart Republicans turned from idealism, focusing their efforts on economics and party politics. They grew to particular influence during Ulysses S. Grant’s first term (1868-1872). After the death of Thaddeus Stevens in 1868 and the political alienation of Charles Sumner by 1870, Stalwart Republicans assumed primacy in Republican Party politics, putting Reconstruction on the defensive within the very party leading it.
Meanwhile, New Departure Democrats gained strength by distancing themselves from pro-slavery Democrats and Copperheads. They focused on business, economics, political corruption, and trade, instead of Reconstruction. In the South, New Departure Democrats were called Redeemers, and were initially opposed by southerners who clung tightly to white supremacy and the Confederacy. But between 1869 and 1871, their home rule platform, asserting that good government was run by locals—meaning white Democrats, rather than black or white Republicans—helped end Reconstruction in three important states: Tennessee, Virginia, and Georgia.
In September 1873, Jay Cooke and Company declared bankruptcy, resulting in a bank run that spiraled into a six-year depression. The Depression of 1873 destroyed the nation’s fledgling labor movement, and helped quell northerners remaining idealism about Reconstruction. In the South, many farms were capitalized entirely through loans. After 1873, most sources of credit vanished, forcing many landowners to default, driving them into an over-saturated labor market. Wages plummeted, contributing to the growing system of debt peonage in the South that trapped workers in endless cycles of poverty. Democrats responded nationally in 1874, running on sound economics and fiscal policy, which allowed them to take control of the House of Representatives.
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