After a bitterly fought 1876 campaign, his second term hinged on disputed votes from Laurens and Edgefield counties, where the counts greatly exceeded the population, and overwhelmingly favored his opponent, ex-Confederate Wade Hampton III.
As the results were coming in on Wednesday morning, it appeared that Chamberlain would win, but Hampton had taken the lead by Thursday.
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The result was contested, but the challenger Wade Hampton III took office in April 1877 after President Hayes withdrew federal troops and the incumbent Daniel Henry Chamberlain left the state.
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Most Democrats heading into the May convention decided to not oppose the governorship and other state offices because Governor Daniel Henry Chamberlain had implemented many favorable reforms.
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Governor Chamberlain's inability to preserve the peace as riots were breaking out across the state, most notably the Hamburg Massacre, led many black and white voters to support the Democratic ticket in November.
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September 13–September 15 - Republican nominating convention met in Columbia and selected Governor Chamberlain as their nominee for Governor in the general election.
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December 20 - Governor Chamberlain issues a pardon for Peter Smith at the State penitentiary.
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A group of prominent South Carolina Republicans, notably Senator John J. Patterson and Robert B. Elliott, organized an opposition to Governor Chamberlain prior to the state convention.
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October 4 - A document signed by Governor Chamberlain stated that he had no effective control of state government and was entirely dependent upon Federal troops.
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