President Rutherford Hayes agreed to end Reconstruction in the Compromise of 1877. He agreed to remove federal troops from South Carolina and Louisiana. The Reconstruction Era was the period between 1865 and 1877 after the Civil War. The goal was the reconstruction of the South after this war.
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Radical rule in the South ended when Rutherford B. Hayes was elected in 1876. President Hayes helped with the last efforts of the Reconstruction after the Civil War ended.
1876
The Election of 1876 was significant because the Republican Hayes was awarded all 20 electoral votes that were in dispute. It was under the compromise of 1877 that he was awarded the votes and won the election. The Republicans agreed to withdraw federal troops from the South which is why the Democrats agreed to the compromise.
The Democrats agreed not to make a huge fuss over the Republicans stealing the election of 1876, and the Republicans agreed that they would end Reconstruction and the military occupation of the South, which by that time was still ongoing in only South Carolina and Louisiana. Samuel J. Tilden had won both the popular vote and the electoral vote, but the Republicans decided to, as one said, "fix things up", and they did, changing the vote totals in South Carolina, Louisiana and Oregon, to make "His Fradulency", Rutherfraud (really Rutherford) B. Hayes President. Hayes seems to have been a nice, honorable man and took no personal part in this skullduggery. The Republican Party had begun in 1854 as a small group with high ideals but was largely corrupt by that time, and most of the time since.
The answer is that the celebration is on the fourth of July.