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In 1876, Hampton became the Democratic candidate for governor. He pledged to expand the state's educational system and protect blacks against violence, but his supporters launched a campaign of intimidation that neutralized South Carolina's large Republican majority. Both parties claimed victory, and Hampton became governor as part of the "Bargain of 1877."

As governor, Hampton favored a paternalistic policy toward the former slaves, and appointed a few blacks to minor positions. He was elected to the U. S. Senate in 1878, serving until 1891.