President James Garfield was shot on July 2, 1881, but did not die until September 19, 1881, from blood poisoning. On September 20, Chester Arthur was sworn in as president. Upon Garfield's death, Arthur said, “Men may die, but the fabrics of free institutions remains unshaken.”

Chinese Exclusion Act

Despite the restrictions placed on Chinese immigration through a treaty agreement between former President Hayes and China, anti-Chinese sentiment was still widespread. Opponents of Chinese immigration convinced Congress to pass an act that would have excluded the Chinese from immigrating for twenty years. However, Arthur vetoed this bill but signed a compromise — the Chinese Exclusion Act of 1882. This halted immigration for ten years and made other provisions restricting the naturalization of Chinese immigrants. The act was renewed twice and was not completely repealed until 1943, when China was an ally of the United States during World War II.

Modern Civil Service System Begins

Before his death, President Garfield had paved the way for civil service reform. He investigated wrongdoings in the awarding of mail contracts, which revealed major corruption involving individuals pocketing tax money. The fact that Garfield was assassinated by an unhappy office seeker just made the issue that much more timely. After his death the Pendleton Act was passed, creating the modern civil service system.

President Arthur signed the bill into law and immediately began enforcing the new reform. The act created a three-man body to oversee the civil service system and Arthur immediately showed his willingness to support the bill by appointing three well-known reformers. Another important part of the act was the provision that jobs classified as civil service could only be attained after passing an open exam.

Arthur's staunch support of the law meant the loss of many followers who had previously supported him. This was a large factor in his losing the Republican nomination for president in 1884.

Mongrel Tariff

In 1883, the Mongrel Tariff was passed. This was a group of measures designed to reduce tariff rates and intended to be a compromise between protectionists and the proponents of free trade. However, the act actually only reduced duties by 1.5 percent — a small amount for the many people that it made unhappy. It was significant because it heightened a debate that would last for decades about tariffs and their use. It was at this point that the Republicans began to be seen as the party of protectionism while the Democrats were portrayed as the party of free trade.