The Great Railroad Strike of 1877 began during Williams' term. Strikers in Indianapolis attempted to block all rail traffic in the city. City and business leaders demanded that Williams call out the militia and end the strike by force, but he refused, fearing it would hurt his standing in the Democratic party. Since Williams refused to engage the workers, Benjamin Harrison and Walter Q. Gresham, the state's leading Republicans, formed a commission to meet with business leaders and end the strike. The situation caused considerable harm to Williams' public popularity.Gugin, p. 171 In addition, many parts of the nation were experiencing rapid industrial growth during Williams' term, but he did little to emulate their success in Indiana, leading to some criticism.Gugin, p. 172
