Ashley's radical views, particularly on race, as well as his support for educational qualifications, did not endear him to voters. Democrat Truman Hoag defeated him by less than 1000 votes in the 1868 election, which nearly bankrupted Ashley. However, President Grant appointed Ashley Territorial Governor of Democratic-leaning Montana Territory, where he served fifteen months until 1870, when he was removed by President Grant. His political appointments, and support for public education, including of Chinese immigrants, proved unpopular in the Democratic-leaning territory.