Early in 1869 Clayton's opponents gained a majority in the Arkansas House of Representatives. In October a group of disaffected Republicans, which included native Unionists and supporters of Horace Greeley, met in Little Rock to form the Liberal Republican Party under a platform of universal amnesty for ex-Confederates, universal suffrage, and opposition to "one man rule."
On the evening of October 15, 1869, according to the custom of the times, a crowd of Clayton's supporters gathered in front of the State House to serenade the governor. Clayton then stunned his audience by delivering a speech that all but renounced his New Era program. He promised to reduce government spending and taxes and to restore the political rights of disenfranchised Democrats. According to Clayton the latter would require a constitutional amendment. He promised to introduce it in the next session of the legislature. Less than a year into economic Reconstruction, Clayton had apparently come to the realization that it would not produce the prosperity it promised.
Clayton's speech so enraged R. F. Catterson, one of the generals of the militia, that he confronted the governor a week later and personally rebuked him. Clayton responded by knocking Catterson senseless with a blow from his fist.
Clayton's move to the right undercut the newly formed Liberal Republicans and rendered them largely irrelevant. At the same time it helped coalesce opposition on the left within the party. This faction, which was headed by Joseph Brooks, was known as the Brindle Tails, ostensibly because a rival had once compared Brooks's loud manner of speaking to the bellowing of a brindle-tail bull. Similarly the Clayton faction came to be known as the Minstrels, reportedly because John G. Price, one of their principal leaders, had once performed in a minstrel show. There was little support for the Brindle Tails brand of ultra-Radicalism, however, and they made few gains in the 1870 election.
True to his word, Clayton brought the constitutional amendment restoring the franchise of Democrats to a vote in the 1871 General Assembly and secured its passage. All that remained was for it to be approved by the people in the 1872 election. Since all political factions now endorsed it, this seemed inevitable.
Clayton clearly realized that Reconstruction's days were numbered in Arkansas. He probably did not believe they could win in 1872. At any rate the time had come to step up to the United States Senate. The seat held by Alexander McDonald was up for re-election in 1871. The Conservatives and Liberal Republican alike were more than willing to oblige. They were eager to get Clayton out of Arkansas, particularly as the governor's office would seemingly pass to Lieutenant Governor James Johnson.
Once Clayton was elected Senator, however, he refused to resign as governor without assurances that he would not be replaced by Johnson. This provoked a bizarre constitutional stand-off. Clayton's opponents attempted to force his removal by introducing a bill of impeachment. It soon became clear that while they had the votes to impeach in the House, they fell short of the number needed to convict in the Senate. After weeks of wrangling, Johnson resigned as Lieutenant Governor and was appointed Secretary of State. Claytonite O. A. Hadley was elected Lieutenant Governor. Clayton resigned as governor and turned over the reigns to Hadley. Clayton then departed for Washington.
See also the Arkansas News article: "Powell Clayton Elected to Senate, Refuses to Vacate the Office of Governor."
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