The Wheeler Compromise, sometimes known as the Wheeler Adjustment, was the settlement of the disputed election of 1874 in the US

United States

The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 state of Louisiana

Louisiana

Louisiana is a state located in the southern region of the United States of America. Its capital is Baton Rouge and largest city is New Orleans. Louisiana is the only state in the U.S. with political subdivisions termed parishes, which are local governments equivalent to counties...

, of the military interference in the organization of the state's legislature on January 4, 1875, and of the general economic situation of Louisiana during the latter half of the 19th century. Effected by, and named after, William A. Wheeler

William A. Wheeler

William Almon Wheeler was a Representative from New York and the 19th Vice President of the United States .-Early life and career:...

, later Vice President of the United States

Vice President of the United States

The Vice President of the United States is the holder of a public office created by the United States Constitution. The Vice President, together with the President of the United States, is indirectly elected by the people, through the Electoral College, to a four-year term...

Worsening economy in Louisiana

The economy of Louisiana towards the latter half of the 19th century was in difficult shape. In New Orleans, the economic situation was "pitiable beyond all precedent in modern history" with immigration low, a lack of confidence in the government, an depression, high unemployment

Unemployment

Unemployment , as defined by the International Labour Organization, occurs when people are without jobs and they have actively sought work within the past four weeks...

, and robberies and high taxes were both commonplace, and the population had decreased by 30,000. Taxes outstanding amounted to over $400,000,000 as much business was being conducted on credit. In total, $25,000,000 of debt wracked the government.

By the start of 1875, begging

Begging

Begging is to entreat earnestly, implore, or supplicate. It often occurs for the purpose of securing a material benefit, generally for a gift, donation or charitable donation...

 was commonplace, and starvation was becoming more and more common. A resentment between the working classes and those in government grew, as the latter remained in relative luxury. This was compounded by unwise legislative decisions, leading to city expenses exceeding income. Laws on customs often restricted the flow of revenue in the merchant quarters, and high taxes dealt heavy blows to immigration rates.
The rural situation was equally dire, with plantations losing value in the countryside. From November 1871 until November 1873, over eight hundred separate plots of land had to be sold to pay taxes. As a result, crime increased, and much blame was attributed to the local government, together with allegations relating to corruption as Governor William P. Kellogg

William P. Kellogg

William Pitt Kellogg was an American politician and a governor of Louisiana from 1873-1877 during Reconstruction. He was one of the most important politicians in Louisiana during and immediately after Reconstruction...

 appointed three comrades to positions in the Supreme court.

In 1874, $200,000 was defaulted on tax returns, and it became gradually more difficult to sell land for tax money.

Wheeler compromise

As the situation in Louisiana worsened, William A. Wheeler arrived and heard testimony from both parties as part of his work to support Reconstruction. Governor Kellog was permitted to remain in power, while the disputed positions in the government he awarded were arbitrated. the US Senate endorsed what later became the Wheeler Compromise; however, the Democrats of Louisiana unseated the remaining Republicans to elect a Democrat to the Senate.