To deal with this situation, the House had refused to adopt the rules of the preceding Congress; and after electing John G. Carlisle as Speaker and authorizing the appointment of a committee on rules, it deferred the appointment of the usual legislative committees until after a new set of rules had been adopted. The action of the Speaker in constituting the Rules Committee was scrupulously fair to the contending interests. It consisted of himself, Samuel J. Randall of Pennsylvania, and William R. Morrison of Illinois from the Democratic side of the House; and of Thomas B. Reed of Maine and Frank Hiscock of New York from the Republican side. On the 14th of December, the committee made two reports: a majority report presented by Mr. Morrison and a minority report presented by Mr. Randall and signed by him alone.
These reports and the debates which followed are most disappointing. What was needed was a penetrating discussion of the means by which the House could establish its authority and perform its constitutional functions. But it is a remarkable circumstance that at no time was any reference made to the only way in which the House can regain freedom of action–namely, by having the Administration submit its budget demands and its legislative proposals directly to the committee of the whole House. The preparatory stages could then be completed before the opening of the legislative session. Congress would thus save the months of time that are now consumed in committee incubation and would almost certainly be assured of opportunity of considering the public business. Discrimination in legislative privilege among members of the House would then be abolished, for every member would belong to the committee on appropriations. It is universally true in constitutional governments that power over appropriations involves power over legislation, and the only possibility of a square deal is to open that power to the entire membership of the assembly, which is the regular practice in Switzerland and in all English commonwealths. The House could not have been ignorant of the existence of this alternative, for the whole subject had been luminously discussed in the Senate Report of February 4,1881. It was, therein, clearly pointed out that such an arrangement would prevent paralysis or inaction in Congress. With the Administration proposing its measures directly to Congress, discussion of them and decisions upon them could not be avoided.
But such a public forum could not be established without sweeping away many intrenchments of factional interest and private opportunity, and this was not at all the purpose of the committee on rules. It took its character and direction from an old feud between Morrison and Randall. Morrison, as chairman of the Ways and Means Committee in 1876, had reported a tariff reform measure which was defeated by Randall’s influence. Then Randall, who had succeeded to the Speakership, transferred Morrison from the chairmanship of the Ways and Means Committee to the chairmanship of the committee on public lands. But Morrison was a man who would not submit to defeat. He was a veteran of the Civil War, and had been severely wounded in leading his regiment at Fort Donelson. After the war, he figured in Illinois politics and served as Speaker of the State Legislature. He entered Congress in 1873 and devoted himself to the study of the tariff with such intelligence and thoroughness that his speeches are still an indispensable part of the history of tariff legislation. His habitual manner was so mild and unassuming that it gave little indication of the force of his personality, which was full of energy and perseverance.
Randall was more imperious in his mien. He was a party leader of established renown which he had gained in the struggles over force bills at the close of the reconstruction period. His position on the tariff was that of a Pennsylvania protectionist, and upon the tariff reform issue in 1883, he was defeated for the Speakership. At that time, John G. Carlisle of Kentucky was raised to that post, while Morrison again became chairman of the Ways and Means Committee. But Randall, now appointed chairman of the Appropriations Committee, had so great an influence that he was able to turn about forty Democratic votes against the tariff bill reported by the Ways and Means Committee, thus enabling the Republicans to kill the bill by striking out the enacting clause.
Only this practical aim, then, was in view in the reports presented by the committee on rules. The principal feature of the majority report was a proposal to curtail the jurisdiction of the Appropriations Committee by transferring to other committees five of the eleven regular appropriation bills. What, from the constitutional point of view, would appear to be the main question–the recovery by the House of its freedom of action–was hardly noticed in the report or in the debates which followed. Heretofore, the rules had allotted certain periods to general business; now, the majority report somewhat enlarged these periods and stipulated that no committee should bring more than one proposal before the House until all other committees had had their turn. This provision might have been somewhat more effective had it been accompanied by a revision of the list of committees such as was proposed by William M. Springer. He pointed out that there were a number of committees “that have no business to transact or business so trifling and unimportant as to make it unnecessary to have standing committees upon such subjects”; he proposed to abolish twenty-one of these committees and to create four new ones to take their place; he showed that “if we allow these twenty useless committees to be again put on our list, to be called regularly in the morning hour… forty-two days will be consumed in calling these committees”; and, finally, he pointed out that the change would effect a saving since it would “do away with sixteen committee clerkships.”
This saving was, in fact, fatal to the success of Springer’s proposal, since it meant the extinction of so many sinecures bestowed through congressional favor. In the end, Springer reduced his proposed change to the creation of one general committee on public expenditures to take the place of eight committees on departmental expenditures. It was notorious that such committees did nothing and could do nothing, and their futility, save as dispensers of patronage, had been demonstrated in a startling manner by the effect of the Acts of July 12, 1870, and June 20, 1874, requiring all unused appropriations to be paid into the Treasury. The amounts thus turned into the Treasury aggregated $174,000,000 and in a single bureau there was an unexpended balance of $36,000,000, which had accumulated for a quarter of a century because Congress had not been advised that no appropriation was needed. Mr. Springer remarked that, during the ten years in which he had been a member of Congress, he had observed with regard to these committees “that in nearly all cases, after their appointment, organization, and the election of a clerk, the committee practically ceased to exist, and nothing further is done.” William R. Morrison at once came to the rescue of the endangered sinecures and argued that even although these committees had been inactive in the past they “constituted the eyes, the ears, and the hands of the House.” In consequence, after a short debate Mr. Springer’s motion was rejected without a division.
The arrangements subsequently made to provide time and opportunity for general legislation, turned out in practice to be quite futile and indeed they were never more than a mere formal pretense. It was quite obvious, therefore, that the new rules tended only to make the situation worse than before. Thomas Ryan of Kansas told the plain truth when he said: “You do not propose to remedy any of those things of which you complain by any of the rules you have brought forward. You propose to clothe eight committees with the same power, with the same temptation and capacity to abuse it. You multiply eightfold the very evils of which you complain.” James H. Blount of Georgia sought to mitigate the evils of the situation by giving a number of other committees the same privilege as the appropriation committees, but this proposal at once raised a storm, for appropriation committees had leave to report at any time, and to extend the privilege would prevent expeditious handling of appropriation bills. Mr. Blount’s motion was, therefore, voted down without a division.
While in the debate, the pretense of facilitating routine business was ordinarily kept up; occasional intimations of actual ulterior purpose leaked out, as when John B. Storm of Pennsylvania remarked that it was a valuable feature of the rules that they did hamper action and “that the country which is least governed is the best governed, is a maxim in strict accord with the idea of true civil liberty.” William McKinley was also of the opinion that barriers were needed “against the wild projects and visionary schemes which will find advocates in this House.” Some years later, when the subject was again up for discussion, Thomas B. Reed went to the heart of the situation when he declared that the rules had been devised not to facilitate action but to obstruct it, for “the whole system of business here for years has been to seek methods of shirking, not of meeting, the questions which the people present for the consideration of their representatives. Peculiar circumstances have caused this. For a long time, one section of the country largely dominated the other. That section of the country was constantly apprehensive of danger which might happen at any time by reason of an institution it was maintaining. Very naturally, all the rules of the House were bent for the obstruction of action on the part of Congress.” It may be added that these observations apply even more forcibly, to the rules of the Senate. The privilege of unrestricted debate was not originally granted by those rules but was introduced as a means of strengthening the power of sectional resistance to obnoxious legislation.
The revision of the rules in 1885, then, was not designed really to facilitate action by the House, but rather to effect a transfer of the power to rule the House. It was at least clear that under the proposed changes the chairman of the committee on appropriations would no longer retain such complete mastery as Randall had wielded, and this was enough to insure the adoption of the majority report. The minority report opposed this weakening of control on the ground that it would be destructive of orderly and responsible management of the public funds. Everything which Randall said on that point has since been amply confirmed by much sad experience. Although some leading Republicans, among whom was Joseph G. Cannon of Illinois, argued strongly in support of Randall’s views, the temper of the House was such that the majority in favor of the change was overwhelming, and on December 18, 1885, the Morrison plan was finally adopted without a roll call.
The hope that the change in organization would expedite action on appropriation bills, was promptly disappointed. Only one of the fourteen regular appropriation bills became law before the last day of the fiscal year. The duress to which the House was subject became tighter and harder than before, and the Speakership entered upon a development unparalleled in constitutional history. The Speaker was practically in a position to determine what business the House might consider and what it might not, and the circumstances were such as to breed a belief that it was his duty to use his discretion where a choice presented itself. It is obvious that, when on the floor of the House there are a number of applicants for recognition, the Speaker must choose between them. All cannot be allowed to speak at once. There is no chance to apply the shop rule, “first come first served,” for numerous applications for the floor come at the same time. Shall the Speaker choose at random or according to some definite principle of selection? In view of the Speaker’s interest in the welfare of the party which raised him to the office, he would naturally inquire in advance the purpose for which the recognition of the chair was desired. It was a manifest step towards orderly procedure in session, however, when instead of crowding around the clerk’s desk bawling for recognition, members applied to the Speaker in advance. In Speaker Blaine’s time, this had become a regular practice and ever since then, a throng of members at the Speaker’s office trying to arrange with him for recognition has been a daily occurrence during a legislative session. Samuel W. McCall, in his work on “The Business of Congress,” says that the Speaker “usually scrutinizes the bill and the committee’s report upon it, and in case of doubt he sometimes refers them to a member in whom he has confidence, for a more careful examination than he himself has time to give.”
Under Speaker Carlisle, this power to censor proposals was made conspicuous through the factional war in the Democratic party. For several sessions of Congress, a bill had been pending to repeal the internal revenue taxes upon tobacco, and it had such support that it might have passed if it could have been reached for consideration. On February 5, 1887, a letter was addressed to Speaker Carlisle by three prominent Democrats: Samuel J. Randall of Pennsylvania, George D. Wise of Virginia, and John S. Henderson of North Carolina, saying: “At the instance of many Democratic members of the House, we appeal to you earnestly to recognize on Monday next, some Democrat who will move to suspend the rules for the purpose of giving the House an opportunity of considering the question of the total repeal of the internal revenue taxes on tobacco.” The letter went on to argue that it would be bad policy to let a Republican have credit for a proposal, which it was declared “will command more votes than any other measure pending before the House looking towards a reduction in taxation; and favorable action on this proposition will not interfere with other efforts that are being made to reduce the burden of the people.”
Speaker Carlisle, however, refused to allow the House to consider the matter on the ground that negotiations with Randall and his friends for concerted party action had so far been fruitless. “Among other things,” he wrote, “we proposed to submit the entire subject to a caucus of our political friends, with the understanding that all parties would abide by the result of its action…. We have received no response to that communication, and I consider that it would not be proper under the circumstances for me to agree to a course of action which would present to the House a simple proposition for the repeal of the internal revenue tax on tobacco, snuff and cigars, to the exclusion of all other measures for the reduction of taxation.” The letter closed by “sincerely hoping that some plan may yet be devised which will enable the House to consider the whole subject of revenue reduction.”
No one was less of an autocrat in temper and habit of thought than Speaker Carlisle, and he assumed this position in deference to a recognized function of his office, supported by a long line of precedents. The case was, therefore, a signal illustration of the way in which the House has impaired its ability to consider legislation by claiming the exclusive privilege of proposing legislation. If the rules had allowed the President to propose his measures directly to the House, then the way would have been opened for a substitute or an amendment. As it was, the House was able to act only upon matters within the control of a few persons advantageously posted, and none of the changes of rules that have been made from time to time have seriously disturbed this fundamental situation.
Notwithstanding the new rules adopted in December, 1885, nothing of importance was accomplished by the House. On February 15, 1886, William R. Morrison introduced a tariff bill making a moderate reduction in rates of duty, which, after considerable amendment in the committee of ways and means, was reported to the House on the 12th of April; but no further action was taken until the 17th of June, when Morrison moved that the House go into committee of the whole to consider the bill. Thirty-five Democrats voted with the Republicans against the motion, which was defeated by 157 nays to 140 yeas. No further attempt was made to take up the bill during that session, and in the ensuing fall Morrison was defeated as a candidate for reelection. Before leaving Congress he tried once more to obtain consideration of his bill but in vain. Just as that Congress was expiring, John S. Henderson of North Carolina was at last allowed to move a suspension of the rules in order to take a vote on a bill to reduce internal revenue taxes, but he failed to obtain the two-thirds vote required for suspension of the rules.
That the proceedings of the Forty-ninth Congress were not entirely fruitless, was mainly due to the initiative and address of the Senate. Some important measures were thus pushed through, among them the act regulating the presidential succession and the act creating the Interstate Commerce Commission. The first of these provided for the succession of the heads of departments in turn, in case of the removal, death, resignation, or inability of both the President and the Vice-President.
The most marked legislative achievement of the House was an act regulating the manufacture and sale of oleomargarine, to which the Senate assented with some amendment, and which was signed with reluctance by the President, after a special message to the House sharply criticizing some of the provisions of the act. A bill providing for arbitration of differences between common carriers and their employees was passed by the Senate without a division, but it did not reach the President until the closing days of the session and failed of enactment because he did not sign it before the final adjournment. Taken as a whole, then, the record of the Congress elected in 1884 showed that while the Democratic party had the Presidency and the House of Representatives, the Republican party, although defeated at the polls, still controlled public policy through the agency of the Senate.
CHAPTER VI. PRESIDENTIAL KNIGHT-ERRANTRY
Although President Cleveland decisively repelled the Senate’s attempted invasion of the power of removal belonging to his office, he was still left in a deplorable state of servitude through the operation of old laws based upon the principle of rotation in office. The Acts of 1820 and 1836, limiting commissions to the term of four years, forced him to make numerous appointments which provoked controversy and made large demands upon his time and thought. In the first year of his administration, he sent about two thousand nominations to the Senate, an average of over six a day, assuming that he was allowed to rest on Sunday. His freedom of action was further curtailed by an Act of 1863, prohibiting the payment of a salary to any person appointed to fill a vacancy existing while the Senate was in session, until the appointment had been confirmed by the Senate. The President was thus placed under a strict compulsion to act as a party employment agent.
If it is the prime duty of a President to act in the spirit of a reformer, Cleveland is entitled to high praise for the stanchness with which he adhered to his principles under most trying circumstances. Upon November 27, 1885, he approved rules confirming and extending the civil service regulations. Charges that Collector Hedden of the New York Customs House was violating the spirit of the Civil Service Act, and was making a party machine of his office, caused the Civil Service Commission to make an investigation which resulted in his resignation in July, 1886. On the 10th of August, Daniel Magone of Ogdensburg, New York, a widely known lawyer, was personally chosen by the President with a view to enforcing the civil service law in the New York Customs House. Before making this appointment, President Cleveland issued an order to all heads of departments warning all officeholders against the use of their positions to control political movements in their localities. “Officeholders,” he declared, “are the agents of the people, not their masters. They have no right, as officeholders, to dictate the political action of their associates, or to throttle freedom of action within party lines by methods and practices which prevent every useful and justifiable purpose of party organization.” In August, President Cleveland gave signal evidence of his devotion to civil service reform by appointing a Republican, because of his special qualifications, to be chief examiner for the Civil Service Commission.
Democratic party workers were so angered and disgusted by the President’s policy that any mention of his name was enough to start a flow of coarse denunciation. Strong hostility to his course of action was manifested in Congress. Chairman Randall, of the committee on appropriations, threatened to cut off the appropriation for office room for the commission. A “rider” to the legislative appropriation bill, striking at the civil service law, caused a vigorous debate in the House in which leading Democrats assailed the Administration, but eventually the “rider” was ruled out on a point of order. In the Senate, such party leaders as Vance of North Carolina, Saulsbury of Delaware, and Voorhees of Indiana, openly ridiculed the civil service law, and various attempts to cripple it were made but were defeated. Senator Vance introduced a bill to repeal the law, but it was indefinitely postponed by a vote of 33 to 6, the affirmative vote being cast mainly by Republicans; and in general the strongest support for the law now came from the Republican side. Early in June, 1887, an estimate was made that nine thousand civil offices outside the scope of the civil service rules were still held by Republicans. The Republican party press gloated over the situation and was fond of dwelling upon the way in which old-line Democrats were being snubbed while the Mugwumps were favored. At the same time, civil service reformers found much to condemn in the character of Cleveland’s appointments. A special committee of the National Civil Service Reform League, on March 30, 1887, published a report in which they asserted that, “tried by the standard of absolute fidelity to the reform as it is understood by this League, it is not to be denied that t this Administration has left much to be desired.” At a subsequent session of the League, its President, George William Curtis, proclaimed that the League did not regard the Administration as “in any strict sense of the words a civil service reform administration.” Thus while President Cleveland was alienating his regular party support, he was not getting in return any dependable support from the reformers. He seemed to be sitting down between two stools, both tilting to let him fall.
Meanwhile, he went on imperturbably doing his duty as he saw it. Like many of his predecessors, he would rise early to get some time to attend to public business before the rush of office seekers began, but the bulk of his day’s work lay in the discharge of his compulsory duties as an employment agent. Many difficult situations were created by contentions among Congressmen over appointments. It was Cleveland’s habit to deal with these cases by homely expostulation and by pleas for mutual concessions. Such incidents do not of course go upon record, and it is only as memoirs and reminiscences of public men are published that this personal side of history becomes known. Senator Cullom of Illinois in his “Fifty Years of Public Service” gives an account that doubtless fairly displays Cleveland’s way of handling his vexatious problems. “I happened to be at the White House one day, and Mr. Cleveland said to me, ‘I wish you would take up Lamar’s nomination and dispose of it. I am between hay and grass with reference to the Interior Department. Nothing is being done there; I ought to have some one on duty, and I cannot do anything until you dispose of Lamar.'” Mr. Lamar, who had entered the Cabinet as Secretary of the Interior, was nominated for associate justice of the Supreme Court on December 6, 1887. He had been an eminent member of the Senate, with previous distinguished service in the House, so that the Senate must have had abundant knowledge of his character and attainments. It is impossible to assign the delay that ensued to reasonable need of time for inquiry as to his qualifications, but Senator Cullom relates that “the nomination pended before the Judiciary Committee for a long time.” Soon after the personal appeal, which was made by the President to every Senator he could reach, action was finally taken and the appointment was confirmed January 16, 1888.
Senator Cullom’s reminiscences also throw light upon the process by which judges are appointed. President Cleveland had selected Melville W. Fuller of Illinois for the office of chief justice of the Supreme Court. According to Senator Cullom, Senator Edmunds “was very much out of humor with the President because he had fully expected that Judge Phelps, of his own State, was to receive the honor…. The result was that Senator Edmunds held the nomination, without any action, in the Judiciary Committee for some three months.” Senator Cullom, although a party associate of Edmunds, was pleased that the President had selected an Illinois jurist and he was determined that, if he could help it, Edmunds should not have the New Hampshire candidate appointed. He therefore appealed to the committee to do something about the nomination, either one way or the other. The committee finally reported the nomination to the Senate without recommendation. When the matter came up in executive session, “Senator Edmunds at once took the floor and attacked Judge Fuller most viciously as having sympathized with the rebellion.” But Cullom was primed to meet that argument. He had been furnished with a copy of a speech attacking President Lincoln which Phelps had delivered during the war, and he now read it to the Senate, “much to the chagrin and mortification of Senator Edmunds.” Cullom relates that the Democrats in the Senate enjoyed the scene. “Naturally, it appeared to them a very funny performance, two Republicans quarreling over the confirmation of a Democrat. They sat silent, however, and took no part at all in the debate, leaving us Republicans to settle it among ourselves.” The result of the Republican split was that the nomination of Fuller was confirmed “by a substantial majority.”
Another nomination which caused much agitation at the time was that of James C. Matthews of New York, to be Recorder of Deeds in the District of Columbia. The office had been previously held by Frederick Douglass, a distinguished leader of the colored race; and in filling the vacancy the President believed it would be an exercise of wise and kindly consideration to choose a member of the same race. But in the Washington community, there was such a strong antipathy to the importation of a negro politician from New York to fill a local office that a great clamor was raised, in which Democrats joined. The Senate rejected the nomination, but meanwhile Mr. Matthews had entered upon the duties of his office and he showed such tact and ability as gradually to soften the opposition. On December 21,1886, President Cleveland renominated him, pointing out that he had been in actual occupation of the office for four months, managing its affairs with such ability as to remove “much of the opposition to his appointment which has heretofore existed.” In conclusion, the President confessed “a desire to cooperate in tendering to our colored fellow-citizens just recognition.” This was a shrewd argument. The Republican majority in the Senate shrank from what might seem to be drawing the color line, and the appointment was eventually confirmed; but this did not remove the sense of grievance in Washington over the use of local offices for national party purposes. Local sentiment in the District of Columbia is, however, politically unimportant, as the community has no means of positive action.*
* It is a singular fact, which contains matter for deep consideration, that the District of Columbia, the national capital, is the only populated area in the civilized world without any sort of suffrage rights.
In the same month in which President Cleveland issued his memorable special message to the Senate on the Tenure of Office Act, he began another struggle against congressional practice in which he was not so fortunate. On March 10, 1886, he sent to Congress the first of his pension vetoes. Although liberal provision for granting pensions had been made by general laws, numerous special applications were made directly to Congress, and congressmen were solicited to secure favorable consideration for them. That it was the duty of a representative to support an application from a resident of his district, was a doctrine enforced by claim agents with a pertinacity from which there was no escape. To attempt to assume a judicial attitude in the matter was politically dangerous, and to yield assent was a matter of practical convenience. Senator Cullom relates that when he first became a member of the committee on pensions he was “a little uneasy” lest he “might be too liberal.” But he was guided by the advice of an old, experienced Congressman, Senator Sawyer of Wisconsin, who told him: “You need not worry, you cannot very well make a mistake allowing liberal pensions to the soldier boys. The money will get back into the Treasury very soon.”
The feeling that anything that the old soldiers wanted should be granted was even stronger in the House, where about the only opportunity of distinction allowed by the procedure was to champion these local demands upon the public treasury. It was indeed this privilege of passing pension bills which partially reconciled members of the House to the actual control of legislative opportunity by the Speaker and the chairmen of a few dominating committees. It was a congressional perquisite to be allowed to move the passage of so many bills; enactment followed as a matter, of course. President Cleveland made a pointed reference to this process in a veto message of June 21, 1886. He observed that the pension bills had only “an apparent Congressional sanction” for the fact was that “a large proportion of these bills have never been submitted to a majority of either branch of Congress, but are the results of nominal sessions held for the express purpose of their consideration and attended by a small minority of the members of the respective houses of the legislative branch of government.”
Obviously, the whole system of pension legislation was faulty. Mere individual effort on the part of the President to screen the output of the system was scarcely practicable, even if it were congruous with the nature of the President’s own duties; but nevertheless Cleveland attempted it, and kept at it with stout perseverance. One of his veto messages remarks that in a single day nearly 240 special pension bills were presented to him. He referred them to the Pension Bureau for examination and the labor involved was so great that they could not be returned to him until within a few hours of the limit fixed by the Constitution for the President’s assent.
There could be no more signal proof of President Cleveland’s constancy of soul than the fact that he was working hard at his veto forge, with the sparks falling thickly around, right in his honeymoon. He married Miss Frances Folsom of Buffalo on June 2, 1886. The ceremony took place in the White House, and immediately thereafter, the President and his charming bride went to Deer Park, Maryland, a mountain resort. The respite from official cares was brief; on June 8th, the couple returned to Washington and some of the most pugnacious of the pension vetoes were sent to Congress soon after. The rest of his public life was passed under continual storm, but the peace and happiness of his domestic life provided a secure refuge.
On the other hand, the rebuffs which Democratic Congressmen received in the matter of pension legislation were, it must be admitted, peculiarly exasperating. Reviewing the work of the Forty-ninth Congress, “The Nation” mentioned three enactments which it characterized as great achievements that should be placed to the credit of Congress. Those were the act regulating the presidential succession, approved January 18, 1886; the act regulating the counting of the electoral votes, approved February 3, 1887; and the repeal of the Tenure of Office Act, approved March 3, 1887. But all three measures originated in the Senate, and the main credit for their enactment might be claimed by the Republican party. There was some ground for the statement that they would have been enacted sooner but for the disturbance of legislative routine by political upheavals in the House; and certainly no one could pretend that it was to get these particular measures passed that the Democratic party was raised to power. The main cause of the political revolution of 1884 had been the continuance of war taxes, producing revenues that were not only not needed but were positively embarrassing to the Government. Popular feeling over the matter was so strong that even the Republican party had felt bound to put into its national platform, in 1884, a pledge “to correct the irregularities of the tariff and to reduce the surplus.” The people, however, believed that the Republican party had already been given sufficient opportunity, and they now turned to the Democratic party for relief. The rank and file of this party felt acutely, therefore, that they were not accomplishing what the people expected. Members arrived in Washington full of good intentions. They found themselves subject to a system which allowed them to introduce all the bills they wanted, but not to obtain action upon them. Action was the prerogative of a group of old hands who managed the important committees and who were divided among themselves on tariff policy. And now, the little bills which, by dint of persuasion and bargaining, they had first put through the committees, and then through both Houses of Congress, were cut down by executive veto, turning to their injury what they had counted upon to help them in their districts.
During the campaign, Democratic candidates had everywhere contended that they were just as good friends of the old soldiers as the Republicans. Now, they felt that to make good this position they must do something to offset the effect of President Cleveland’s vetoes. In his messages, he had favored “the most generous treatment to the disabled, aged and needy among our veterans”; but he had argued that it should be done by general laws, and not by special acts for the benefit of particular claimants. The Pension Committee of the House responded by reporting a bill “for the relief of dependent parents and honorably discharged soldiers and sailors who are now disabled and dependent upon their own labor for support.” It passed the House by a vote of 180 to 76, with 63 not voting, and it passed the Senate without a division. On the 11th of February, President Cleveland sent in his veto, accompanied by a message pointing out in the language of the act defects and ambiguities which he believed would “but put a further premium on dishonesty and mendacity.” He reiterated his desire that provision should be made “for those who, having served their country long and well, are reduced to destitution and dependence,” but he did not think that the bill was a proper means of attaining that object. On the 19th of February, the House committee on pensions submitted an elaborate report on the veto in which they recited the history of the bill and the reasons actuating the committee. Extracts from Cleveland’s messages were quoted, and the committee declared that, in “hearty accord with these views of the President and largely in accordance with his suggestions, they framed a bill which they then thought, and still continue to think, will best accomplish the ends proposed.” A motion to pass the bill over the veto on the 24th of February received 175 votes to 125, but two-thirds not having voted in the affirmative the bill failed to pass. The Republicans voted solidly in support of the bill, together with a large group of Democrats. The negative vote came wholly from the Democratic side. Such a fiasco amounted to a demonstration of the lack of intelligent leadership. If the President and his party in Congress were cooperating for the furtherance of the same objects, as both averred, it was discreditable all around that there should have been such a complete misunderstanding as to the procedure.
Meanwhile, the President was making a unique record by his vetoes. During the period of ninety-six years, from the foundation of the Government down to the beginning of Cleveland’s administration, the entire number of veto messages was 132. In four years, Cleveland sent in 301 veto messages, and in addition he practically vetoed 109 bills by inaction. Of 2042 private pension bills passed by Congress, 1518 were approved and 284 became laws by lapse of time without approval. The positive results of the President’s activity were thus inconsiderable, unless incidentally he had managed to correct the system which he had opposed. That claim, indeed, was made in his behalf when “The Nation” mentioned “the arrest of the pension craze” as a “positive achievement of the first order.'” But far from being arrested, “the pension craze” was made the more furious, and it soon advanced to extremes unknown before.*
* March 19, 1887.
The Democratic politicians naturally viewed with dismay the approach of the national election of 1888. Any one could see that the party was drifting on to the rocks and nobody deemed to be at the helm. According to William R. Morrison, who certainly had been in a position to know, President Cleveland had “up to this time taken no decided ground one way or the other on the question of tariff.” He had included the subject in the long dissertation on the state of the Union, which ever since Jefferson’s time the President has been wont to send to Congress at the opening of a session, but he had not singled it out as having precedence. He now surprised the country, roused his party, and gave fresh animation to national politics on December 6, 1887, by devoting his third annual message wholly to the subject of taxation and revenue. He pointed out that the treasury surplus was mounting up to $140,000,000; that the redemption of bonds which had afforded a means for disbursement of excess revenues had stopped because there were no more bonds that the Government had a right to redeem; and that, hence, the Treasury “idly holds money uselessly subtracted from the channels of trade,” a situation from which monetary derangement and business distress would naturally ensue. He strongly urged that the “present tariff laws, the vicious, inequitable and illogical source of unnecessary taxation, ought to be at once revised and amended.” Cleveland gave a detailed analysis of the injurious effects which the existing tariff had upon trade and industry, and went on to remark that “progress toward a wise conclusion will not be improved by dwelling upon the theories of protection and free trade. This savors too much of bandying epithets. It is a condition which confronts us, not a theory.” The effect of the message was very marked both upon public opinion and party activity. Mr. Morrison correctly summed up the party effect in saying that “Mr. Mills, obtaining the substantial support of the Administration, was enabled to press through the House a bill differing in a very few essential measures from, and combining the general details and purposes of, the several measures of which I have been the author, and which had been voted against by many of those who contributed to the success of the Mills Bill.”
An incident which attracted great notice because it was thought to have a bearing on the President’s policy of tariff revision, was the veto of the Allentown Public Building Bill. This bill was of a type which is one of the rankest growths of the Congressional system–the grant of money not for the needs of public service but as a district favor. It appropriated $100,000 to put up a post-office building at Allentown, Pennsylvania, where adequate quarters were being occupied by the post-office at an annual rent of $1300. President Cleveland vetoed the bill simply on the ground that it proposed an unnecessary expenditure, but the fact was at once noted that the bill had been fathered by Congressman Snowden, an active adherent of Randall in opposition to the tariff reform policy of the Administration. The word went through Congress and reverberated through the press that “there is an Allentown for every Snowden.” Mr. Morrison said in more polite phrase what came to the same thing when he observed that “when Mr. Cleveland took decided ground in favor of revision and reduction, he represented the patronage of the Administration, in consequence of which he was enabled to enforce party discipline, so that a man could no longer be a good Democrat and favor anything but reform of the tariff.”
After the Mills Bill had passed the House* and had been sent to the Senate, it was held in committee until October 3, 1888. When it emerged it carried an amendment which was in effect a complete substitute, but it was not taken up for consideration until after the presidential election, and it was meant simply as a Republican alternative to the Mills Bill for campaign use. Consideration of the bill began on the 5th of December and lasted until the 22nd of January, when the bill was returned to the House transformed into a new measure. It was referred to the Ways and Means Committee, and Chairman Mills reported it back with a resolution setting forth that “the substitution by the Senate under the form of an amendment…. of another and different bill,” is in conflict with the section of the Constitution which “vests in the House of Representatives the sole power to originate such a measure.” The House refused to consider the resolution, a number of Democrats led by Mr. Randall voting with the Republicans in the negative. No further action was taken on the bill and since that day the House has never ventured to question the right of the Senate to amend tax bills in any way and to any extent. As Senator Cullom remarks in his memoirs, the Democrats, although they had long held the House and had also gained, the Presidency, “were just as powerless to enact legislation as they had been before.”
* The Mills Bill was passed July 21, 1888, yeas 162, nays 149, not voting 14. Randall, Snowden, and two other Democrats joined the Republicans in voting against the bill.
CHAPTER VII. THE PUBLIC DISCONTENTS
While President and Congress were passing the time in mutual obstruction, the public discontents were becoming hot and bitter to a degree unknown before. A marked feature of the situation was the disturbance of public convenience involving loss, trouble, and distress which were vast in extent but not easily expressed in statistical form. The first three months of 1886 saw an outbreak of labor troubles far beyond any previous record in their variety and extent. In 1885, the number of strikes reported was 645 affecting 2284 establishments, a marked increase over preceding years. In 1886, the number of strikes rose to 1411, affecting 9861 establishments and directly involving 499,489 persons. The most numerous strikes were in the building trades, but there were severe struggles in many other industries. There was, for example, an interruption of business on the New York elevated railway and on the street railways of New York, Brooklyn, and other cities.
But the greatest public anxiety was caused by the behavior of the Knights of Labor, an organization then growing so rapidly that it gave promise of uniting under one control the active and energetic elements of the working classes of the country. It started in a humble way, in December, 1869, among certain garment cutters in Philadelphia, and for some years spread slowly from that center. The organization remained strictly secret until 1878, in which year it held a national convention of its fifteen district assemblies at Reading, Pennsylvania. The object and principles of the order were now made public and, thereafter, it spread with startling rapidity, so that in 1886 it pitted its strength against public authority with a membership estimated at from, 500,000 to 800,000. Had this body been an army obedient to its leaders, it would have wielded great power; but it turned out to be only a mob. Its members took part in demonstrations which were as much mutinies against the authority of their own executive board as they were strikes against their employers. The result of lack of organization soon began to be evident. In March 1886, the receiver of the Texas Pacific Railroad discharged an employee prominent in the Knights of Labor and thus precipitated a strike which was promptly extended to the Missouri Pacific. There were riots at various points in Missouri and Kansas, and railroad traffic at St. Louis was completely suspended for some days, but the strike was eventually broken. The Knights of Labor, however, had received a blow from which it never recovered, and as a result its membership declined. The order has since been almost wholly superseded by the American Federation of Labor, established in 1886 through shrewd management by an association of labor unions which had been maintained since 1881. The Knights had been organized by localities with the aim of merging all classes of working men into one body. The Federation, on the other hand, is composed of trades unions retaining their autonomy–a principle of organization which has proved to be more solid and durable.
To these signs of popular discontent the Government could not be blind. A congressional committee investigated the railroad strikes, and both parties in Congress busied themselves with labor legislation. But in spite of this apparent willingness to cope with the situation, there now followed another display of those cross purposes which occurred so often during the Cleveland administration. The House had already passed a bill providing means of submitting to arbitration controversies between railroads engaged in interstate commerce and their employees. President Cleveland now sent a special message recommending that “instead of arbitrators chosen in the heat of conflicting claims and after each dispute shall arise, there be created a Commission of Labor, consisting of three members, who shall be regular officers of the government, charged among other duties with the consideration and settlement when possible, of all controversies between labor and capital.” In spite of the urgency of the situation, the Senate seized this occasion for a new display of party tactics, and it Allowed the bill already passed by the House to lie without action while it proceeded to consider various labor measures of its own. For example, by June 1, 1886, the Senate had passed a bill providing that eight hours should be a day’s work for letter-carriers; soon afterwards, it passed a bill legalizing the incorporation of national trades unions, to which the House promptly assented without a division; and the House then continued its labor record by passing on the 15th of July a bill against the importation of contract labor. This last bill was not passed by the Senate until after the fall elections. It was approved by the President on February 23, 1887.
The Senate also delayed action on the House bill, which proposed arbitration in labor disputes, until the close of the session; and then the President, in view of his disregarded suggestion, withheld his assent. It was not until the following year that the legislation recommended by the President was enacted. By the Act of June 13, 1888, the Department of Labor was established, and by the Act of October 1, 1888, in addition to provision for voluntary arbitration between railroad corporations and their employees, the President was authorized to appoint a commission to investigate labor conflicts, with power to act as a board of conciliation. During the ten years in which the act remained on the statute books, it was actually put to use only in 1894, when a commission was appointed to investigate the Pullman strike at Chicago, but this body took no action towards settling the dispute.
Thus far, then, the efforts of the Government to deal with the labor problem had not been entirely successful. It is true that the labor conflicts arose over differences which only indirectly involved constitutional questions. The aims of both the Knights of Labor and of the American Federation were primarily economic and both organizations were opposed to agitation of a distinctively political character. But parallel with the labor agitation, and in communication with it, there were radical reform movements of a type unknown before. There was now to arise a socialistic movement opposed to traditional constitutionalism, and therefore viewed with alarm in many parts of the country. Veneration of the Constitution of 1787 was practically a national sentiment which had lasted from the time the Union was successfully established until the Cleveland era. However violent political differences in regard to public policy might be, it was the invariable rule that proposals must claim a constitutional sanction. In the Civil War, both sides felt themselves to be fighting in defense of the traditional Constitution.
The appeal to antiquity–even such a moderate degree of antiquity as may be claimed for American institutions–has always been the staple argument in American political controversy. The views and intentions of the Fathers of the Constitution are exhibited not so much for instruction as for imitation, and by means of glosses and interpretations conclusions may be reached which would have surprised the Fathers to whom they are imputed. Those who examine the records of the formative period of American institutions, not to obtain material for a case but simply to ascertain the facts, will readily observe that what is known as the principle of strict construction dates only from the organization of national parties under the Constitution. It was an invention of the opposition to Federalist rule and was not held by the makers of the Constitution themselves. The main concern of the framers was to get power for the National Government, and they went as far as they could with such success that striking instances may be culled from the writings of the Fathers showing that the scope they contemplated has yet to be attained. Strict construction affords a short and easy way of avoiding troublesome issues–always involved in unforeseen national developments–by substituting the question of constitutional power for a question of public propriety. But this method has the disadvantage, that it belittles the Constitution by making it an obstacle to progress. Running through much political controversy in the United States is the argument that, even granting that a proposal has all the merit claimed for it, nevertheless it cannot be adopted because the Constitution is against it. By strict logical inference the rejoinder then comes that, if so, the Constitution is no longer an instrument of national advantage. The traditional attachment of the American people to the Constitution has indeed been so strong that they have been loath to accept the inference that the Constitution is out of date, although the quality of legislation at Washington kept persistently suggesting that view of the case.
The failures and disappointments resulting from the series of national elections from 1874 to 1884, at last, made an opening for party movements voicing the popular discontent and openly antagonistic to the traditional Constitution. The Socialist Labor party held its first national convention in 1877. Its membership was mostly foreign; of twenty-four periodical publications then carried on in the party interest, only eight were in the English language; and this polyglot press gave justification to the remark that the movement was in the hands of people who proposed to remodel the institutions of the country before they had acquired its language. The alien origin of the movement was emphasized by the appearance of two Socialist members of the German Reichstag, who made a tour of this country in 1881 to stir up interest in the cause. It was soon apparent that the growth of the Socialist party organization was hindered by the fact that its methods were too studious and its discussions too abstract to suit the energetic temper of the times. Many Socialists broke away to join revolutionary clubs which were now organized in a number of cities without any clearly defined principle save to fight the existing system of government.
At this critical moment in the process of social disorganization, the influence of foreign destructive thought made itself felt. The arrival of Johann Most from Europe, in the fall of 1882, supplied this revolutionary movement with a leader who made anarchy its principle. Originally a German Socialist aiming to make the State the sole landlord and capitalist, he had gone over to anarchism and proposed to dissolve the State altogether, trusting to voluntary association to supply all genuine social needs. Driven from Germany, he had taken refuge in England, but even the habitual British tolerance had given way under his praise of the assassination of the Czar Alexander in 1881 and his proposal to treat other rulers in the same way. He had just completed a term of imprisonment before coming to the United States. Here, he was received as a hero; a great mass meeting in his honor was held in Cooper Union, New York, in December, 1882; and when he toured the country he everywhere addressed large meetings.
In October 1883, a convention of social revolutionists and anarchists was held in Chicago, at which a national organization was formed called the International Working People’s Association. The new organization grew much faster than the Socialist party itself, which now almost disappeared. Two years later, the International had a party press consisting of seven German, two Bohemian, and only two English papers. Like the Socialist party, it was, therefore, mainly foreign in its membership. It was strongest in and about Chicago, where it included twenty groups with three thousand enrolled members. The anarchist papers exhorted their adherents to provide themselves with arms and even published instructions for the use of dynamite.
Political and industrial conditions thus supplied material for an explosion which came with shocking violence. On May 4, 1885, towards the close of an anarchist meeting held in Chicago, a dynamite bomb thrown among a force of policemen killed one and wounded many. Fire was at once opened on both sides, and, although the battle lasted only a few minutes, seven policemen were killed and about sixty wounded; while on the side of the anarchists, four were killed and about fifty were wounded. Ten of the anarchist leaders were promptly indicted, of whom one made his escape and another turned State’s evidence. The trial of the remaining eight began on June 21, 1886, and two months later the death sentence was imposed upon seven and a penitentiary term of fifteen years upon one. The sentences of two of the seven were commuted to life imprisonment; one committed suicide in his cell by exploding a cartridge in his mouth; and four met death on the scaffold. While awaiting their fate they were to a startling extent regarded as heroes and bore themselves as martyrs to a noble cause. Six years later, Illinois elected as governor John P. Altgeld, one of whose first steps was to issue a pardon to the three who were serving terms of imprisonment and to criticize sharply the conduct of the trial which had resulted in the conviction of the anarchists.
The Chicago outbreak and its result stopped the open spread of anarchism. Organized labor now withdrew from any sort of association with it. This cleared the field for a revival of the Socialist movement as the agency of social and political reconstruction. So rapidly did it gain in membership and influence that by 1892 it was able to present itself as an organized national party appealing to public opinion for confidence and support, submitting its claims to public discussion, and stating its case upon reasonable grounds. Although its membership was small in comparison with that of the old parties, the disparity was not so great as it seemed, since the Socialists represented active intelligence while the other parties represented political inertia. From this time on, Socialist views spread among college students, artists, and men of letters, and the academic Socialist became a familiar figure in American society.
Probably more significant than the Socialist movement, as an indication of the popular demand for radical reform in the government of the country, was the New York campaign of Henry George in 1886. He was a San Francisco printer and journalist when he published the work on “Progress and Poverty” which made him famous. Upon the petition of over thirty thousand citizens, he became the Labor candidate for mayor of New York City. The movement in support of George developed so much strength that the regular parties felt compelled to put forward exceptionally strong candidates. The Democrats nominated Abram S. Hewitt, a man of the highest type of character, a fact which was not perhaps so influential in getting him the nomination as that he was the son-in-law of Peter Cooper, a philanthropist justly beloved by the working classes. The Republicans nominated Theodore Roosevelt, who had already distinguished himself by his energy of character and zeal for reform. Hewitt was elected, but George received 68,110 votes out of a total of 219,679, and stood second in the poll. His supporters contended that he had really been elected but had been counted out, and this belief turned their attention to the subject of ballot reform. To the agitation which Henry George began, may be fairly ascribed the general adoption of the Australian ballot in the United States.
The Socialist propaganda carried on in large cities and in factory towns hardly touched the great mass of the people of the United States, who belonged to the farm rather than to the workshop. The great agricultural class, which had more weight at the polls than any other class of citizens, was much interested in the redress of particular grievances and very little in any general reform of the governmental system. It is a class that is conservative in disposition but distrustful of authority, impatient of what is theoretical and abstract, and bent upon the quick practical solution of problems by the nearest and simplest means. While the Socialists in the towns were interested in labor questions, the farmers more than any other class were affected by the defective system of currency supply. The national banking system had not been devised to meet industrial needs but as a war measure to provide a market for government bonds, deposits of which had to be made as the basis of note issues. As holdings of government bonds were amassed in the East, financial operations tended to confine themselves to that part of the country, and banking facilities seemed to be in danger of becoming a sectional monopoly, and such, indeed, was the case to a marked extent. This situation inspired among the farmers, especially in the agricultural West, a hatred of Wall Street and a belief in the existence of a malign money power which provided an inexhaustible fund of sectional feeling for demagogic exploitation.
For lack of proper machinery of credit for carrying on the process of exchange, there seemed to be an absolute shortage in the amount of money in circulation, and it was this circumstance that had given such force to the Greenback Movement. Although that movement was defeated, its supporters urged that, if the Government could not supply additional note issues, it should at least permit an increase in the stock of coined money. This feeling was so strong that as early as 1877 the House had passed a bill for the free coinage of silver. For this, the Senate substituted a measure requiring the purchase and coinage by the Government of from two to four million dollars’ worth of silver monthly, and this compromise was accepted by the House. As a result, in February, 1878, it was passed over President Hayes’s veto.
The operation of this act naturally tended to cause the hoarding of gold as the cheaper silver was equally a legal tender, and meanwhile the silver dollars did not tend to pass into circulation. In 1885, in his first annual message to Congress, President Cleveland mentioned the fact that, although 215,759,431 silver dollars had been coined, only about fifty million had found their way into circulation, and that “every month two millions of gold in the public Treasury are paid out for two millions or more of silver dollars to be added to the idle mass already accumulated.” The process was draining the stock of gold in the Treasury and forcing the country to a silver basis without really increasing the amount of money in actual circulation or removing any of the difficulties in the way of obtaining supplies of currency for business transactions. President Cleveland recommended the repeal of the Silver Coinage Act, but he had no plan to offer by which the genuine complaints of the people against the existing monetary system could be removed. Free silver thus was allowed to stand before the people as the only practical proposal for their relief, and upon this issue a conflict soon began between Congress and the Administration.
At a convention of the American Bankers’ Association in September, 1885, a New York bank president described the methods by which the Treasury Department was restricting the operation of the Silver Coinage Act so as to avoid a displacement of the gold standard. On February 3, 1886, Chairman Bland of the House committee on coinage reported a resolution reciting statements made in that address, and calling upon the Secretary of the Treasury for a detailed account of his administration of the Silver Coinage Act. Secretary Manning’s reply was a long and weighty argument against continuing the coinage of silver. He contended that there was no hope of maintaining a fixed ratio between gold and silver except by international concert of action, but “the step is one which no European nation… will consent to take while the direct or indirect substitution of European silver for United States gold seems a possibility.” While strong as to what not to do, his reply, like most of the state papers of this period, was weak as to what to do and how to do it. The outlook of the Secretary of the Treasury was so narrow that he was led to remark that “a delusion has spread that the Government has authority to fix the amount of the people’s currency, and the power, and the duty.” The Government certainly has the power and the duty of providing adequate currency supply through a sound banking system. The instinct of the people on that point was sounder than the view of their rulers.
Secretary Manning’s plea had so little effect that the House promptly voted to suspend the rules in order to make a free coinage bill the special order of business until it was disposed of. But the influence of the Administration was strong enough to defeat the bill when it came to a vote. Though for a time, the legislative advance of the silver movement was successfully resisted, the Treasury Department was left in a difficult situation, and the expedients to which it resorted to guard the gold supply added to the troubles of the people in the matter of obtaining currency. The quick way of getting gold from the Treasury was to present legal tender notes for redemption. To keep this process in check, legal tender notes were impounded as they came in, and silver certificates were substituted in disbursements. But under the law of 1878, silver certificates could not be issued in denominations of less than ten dollars. A scarcity of small notes resulted, which oppressed retail trade until, in August, 1886, Congress authorized the issue of silver certificates in one and two and five dollar bills.
A more difficult problem was presented by the Treasury surplus which, by old regulations savoring more of barbarism than of civilized polity, had to be kept idle in the Treasury vaults. The only apparent means by which the Secretary of the Treasury could return his surplus funds to the channels of trade was by redeeming government bonds; but as these were the basis of bank note issues, the effect of any such action was to produce a sharp contraction in this class of currency. Between 1882 and 1889, national bank notes declined in amount from $356,060,348 to $199,779,011. In the same period, the issue of silver certificates increased from $63,204,780 to $276,619,715, and the total amount of currency of all sorts nominally increased from $1,188,752,363 to $1,405,018,000; but of this, $375,947,715 was in gold coin which was being hoarded, and national bank notes were almost equally scarce since they were virtually government bonds in a liquid form.
As the inefficiency of the monetary system came home to the people in practical experience, it seemed as if they were being plagued and inconvenienced in every possible way. The conditions were just such as would spread disaffection among the farmers, and their discontent sought an outlet. The growth of political agitation in the agricultural class, accompanied by a thorough- going disapproval of existing party leadership, gave rise to numerous new party movements. Delegates from the Agricultural Wheel, the Corn-Planters, the Anti-Monopolists, Farmers’ Alliance, and Grangers, attended a convention in February, 1887, and joined the Knights of Labor and the Greenbackers to form the United Labor party. In the country, at this time, there were numerous other labor parties of local origin and composition, with trade unionists predominating in some places and Socialists in others. Very early, however, these parties showed a tendency to division that indicated a clash of incompatible elements. Single taxers, greenbackers, labor leaders, grangers, and socialists were agreed only in condemning existing public policy. When they came to consider the question of what new policy should be adopted, they immediately manifested irreconcilable differences. In 1888, rival national conventions were held in Cincinnati, one designating itself as the Union Labor party, the other as the United Labor party. One made a schedule of particular demands; the other insisted on the single tax as the consummation of their purpose in seeking reform. Both put presidential tickets in the field, but of the two, the Union Labor party made by far the better showing at the polls though, even so, it polled fewer votes than did the National Prohibition party. Although making no very considerable showing at the polls, these new movements were very significant as evidences of popular unrest. The fact that the heaviest vote of the Union Labor party was polled in the agricultural States of Kansas, Missouri, and Texas, was a portent of the sweep of the populist movement which virtually captured the Democratic party organization during President Cleveland’s second term.
The withdrawal of Blaine from the list of presidential candidates in 1888 left the Republican Convention at Chicago to choose from a score of “favorite sons.” Even his repeated statement that he would not accept the nomination did not prevent his enthusiastic followers from hoping that the convention might be “stampeded.” But on the first ballot, Blaine received only thirty-five votes while John Sherman led with 229. It was anybody’s race until the eighth ballot, when General Benjamin Harrison, grandson of “Tippecanoe,” suddenly forged ahead and received the nomination.
The defeat of the Democratic party at the polls in the presidential election of 1888 was less emphatic than might have been expected from its sorry record. Indeed, it is quite possible that an indiscretion in which Lord Sackville-West, the British Ambassador, was caught may have turned the scale. An adroitly worded letter was sent to him, purporting to come from Charles Murchison, a California voter of English birth, asking confidential advice which might enable the writer “to assure many of our countrymen that they would do England a service by voting for Cleveland and against the Republican system of tariff.” With an astonishing lack of astuteness, the British minister fell into the trap and sent a reply which, while noncommittal on particulars, exhibited friendly interest in the reelection of President Cleveland. This correspondence, when published late in the campaign, caused the Administration to demand his recall. A spirited statement of the case was laid before the public by Thomas Francis Bayard, Secretary of State, a few days before the election, but this was not enough to undo the harm that had been done, and the Murchison letter takes rank with the Morey letter attributed to General Garfield as specimens of the value of the campaign lie as a weapon in American party politics.
President Cleveland received a slight plurality in the total popular vote; but by small pluralities Harrison carried the big States, thus obtaining a heavy majority in the electoral vote. At the same time, the Republicans obtained nearly as large a majority in the House as the Democrats had had before.
CHAPTER VIII. THE REPUBLICAN OPPORTUNITY
The Republican party had the inestimable advantage in the year 1889 of being able to act. It controlled the Senate which had become the seat of legislative authority; it controlled the House; and it had placed its candidate in the presidential chair. All branches of the Government were now in party accord. The leaders in both Houses were able men, experienced in the diplomacy which, far more than argument or conviction, produces congressional action. Benjamin Harrison himself had been a member of the ruling group of Senators, and as he was fully imbued with their ideas as to the proper place of the President he was careful to avoid interference with legislative procedure. Such was the party harmony that an extensive program of legislation was put through without serious difficulty, after obstruction had been overcome in the House by an amendment of the rules.
In the House of Representatives, the quorum is a majority of the whole membership. This rule enabled the minority to stop business at any time when the majority party was not present in sufficient strength to maintain the quorum by its own vote. On several occasions, the Democrats left the House nominally without a quorum
by the subterfuge of refusing to answer to their names on the roll call. Speaker Reed determined to end this practice by counting as present any members actually in the chamber. To the wrath of the minority, he assumed this authority while a revision of the rules was pending. The absurdity of the Democratic position was naively exposed when a member arose with a law book in his hand and said, “I deny your right, Mr. Speaker, to count me as present, and I desire to read from the parliamentary law on the subject.” Speaker Reed, with the nasal drawl that was his habit, replied, “The Chair is making a statement of fact that the gentleman from Kentucky is present? Does he deny it?” The rejoinder was so apposite that the House broke into a roar of laughter, and the Speaker carried his point.
Undoubtedly, Speaker Reed was violating all precedents. Facilities of obstruction had been cherished by both parties, and nothing short of Reed’s earnestness and determination could have effected this salutary reform. The fact has since been disclosed that he had made up his mind to resign the Speakership and retire from public life had his party failed to support him. For three days, the House was a bedlam, but the Speaker bore himself throughout with unflinching courage and unruffled composure. Eventually he had his way. New rules were adopted, and the power to count a quorum was established.* When in later Congresses a Democratic majority returned to the former practice, Reed gave them such a dose of their own medicine that for weeks the House was unable to keep a quorum. Finally, the House was forced to return to the “Reed rules” which have since then been permanently retained. As a result of congressional example, they have been generally adopted by American legislative bodies, with a marked improvement in their capacity to do business.
* The rule that “no dilatory motion shall be entertained by the Speaker” was also adopted at this time.
With the facilities of action which they now possessed, the Republican leaders had no difficulty in getting rid of the surplus in the Treasury. Indeed, in this particular they could count on Democratic aid. The main conduit which they used was an increase of pension expenditures. President Harrison encouraged a spirit of broad liberality toward veterans of the Civil War. During the campaign he said that it “was no time to be weighing the claims of old soldiers with apothecary’s scales,” and he put this principle of generous recognition into effect by appointing as commissioner of pensions a robust partisan known as “Corporal” Tanner. The report went abroad that on taking office he had gleefully declared, “God help the surplus,” and upon that maxim he acted with unflinching vigor. It seemed, indeed, as if any claim could count upon being allowed so long as it purported to come from an old soldier. But Tanner’s ambition was not satisfied with an indulgent consideration of applications pending during his time; he reopened old cases, rerated a large number of pensioners, and increased the amount of their allowance. In some cases, large sums were granted as arrears due on the basis of the new rate. A number of officers of the pension bureau were thus favored, for a man might receive a pension on the score of disability though still able to hold office and draw its salary and emoluments. For example, the sum of $4300 in arrears was declared to be due to a member of the United States Senate, Charles F. Manderson of Nebraska. Finally, “Corporal” Tanner’s extravagant management became so intolerable to the Secretary of the Interior that he confronted President Harrison with the choice of accepting his resignation or dismissing Tanner. Tanner therefore had to go, and with him his system of reratings.
A pension bill for dependents, such as Cleveland had vetoed, now went triumphantly through Congress.* It granted pensions of from six to twelve dollars a month to all persons who had served for ninety days in the Civil War and had thereby been incapacitated for manual labor to such a degree as to be unable to support themselves. Pensions were also granted to widows, minor children, and dependent parents. This law brought in an enormous flood of claims in passing, upon which it was the policy of the Pension Bureau to practice great indulgence. In one instance, a pension was granted to a claimant who had enlisted but never really served in the army as he had deserted soon after entering the camp. He thereupon had been sentenced to hard labor for one year and made to forfeit all pay and allowances. After the war, he had been convicted of horse stealing and sent to the state penitentiary in Wisconsin. While serving his term, he presented a pension claim supported by forged testimony to the effect that he had been wounded in the battle of Franklin. The fraud was discovered by a special examiner of the pension office, and the claimant and some of his witnesses were tried for perjury, convicted, and sent to the state penitentiary at Joliet, Illinois. After serving his time there, he posed as a neglected old soldier and succeeded in obtaining letters from sympathetic Congressmen commending his case to the attention of the pension office, but without avail until the Act of 1890 was passed. He then put in a claim which was twice rejected by the pension office examiners, but each time the decision was overruled, and in the end he was put upon the pension roll. This case is only one of many made possible by lax methods of investigating pension claims. Senator Gallinger of New Hampshire eventually said of the effect of pension policy, as shaped by his own party with his own aid:
“If there was any soldier on the Union side during the Civil War who was not a good soldier, who has not received a pension, I do not know who he is. He can always find men of his own type, equally poor soldiers who would swear that they knew he had been in a hospital at a certain time, whether he was or not–the records did not state it, but they knew it was so–and who would also swear that they knew he had received a shock which affected his hearing during a certain battle, or that something else had happened to him; and so all those pension claims, many of which are worthless, have been allowed by the Government, because they were ‘proved.'”
* June 27, 1890.
The increase in the expenditure for pensions, which rose from $88,000,000 in 1889 to $159,000,000 in 1893, swept away much of the surplus in the Treasury. Further inroads were made by the enactment of the largest river and harbor appropriation bill in the history of the country up to this time. Moreover, a new tariff bill was contrived in such a way as to impose protective duties without producing so much revenue that it would cause popular complaint about unnecessary taxation. A large source of revenue was cut off by abolishing the sugar duties and by substituting a system of bounties to encourage home production. Upon this bill as a whole, Senator Cullom remarks in his memoirs that “it was a high protective tariff, dictated by the manufacturers of the country” who have “insisted upon higher duties than they really ought to have.” The bill was, indeed, made up wholly with the view of protecting American manufactures from any foreign competition in the home market.
As passed by the House, not only did the bill ignore American commerce with other countries but it left American consumers exposed to the manipulation of prices on the part of other countries. Practically all the products of tropical America, except tobacco, had been placed upon the free list without any precaution lest the revenue thus surrendered might not be appropriated by other countries by means of export taxes. Blaine, who was once more Secretary of State, began a vigorous agitation in favor of adding reciprocity provisions to the bill. When the Senate showed a disposition to resent his interference, Blaine addressed to Senator Frye of Maine a letter which was in effect an appeal to the people, and which greatly stirred the farmers by its statement that “there is not a section or a line in the entire bill that will open the market for another bushel of wheat or another barrel of pork.” The effect was so marked that the Senate yielded, and the Tariff Bill, as finally enacted, gave the President power to impose certain duties on sugar, molasses, coffee, tea, and hides imported from any country imposing on American goods duties, which, in the opinion of the President, were “reciprocally unequal and unreasonable.” This more equitable result is to be ascribed wholly to Blaine’s energetic and capable leadership.
Pending the passage of the Tariff Bill, the Senate had been wrestling with the trust problem which was making a mockery of a favorite theory of the Republicans. They had held that tariff protection benefited the consumer by the stimulus which it gave to home production and by ensuring a supply of articles on as cheap terms as American labor could afford. There were, however, notorious facts showing that certain corporations had taken advantage of the situation to impose high prices, especially upon the American consumer. It was a campaign taunt that the tariff held the people down while the trusts went through their pockets, and to this charge the Republicans found it difficult to make a satisfactory reply.
The existence of such economic injustice was continually urged in support of popular demands for the control of corporations by the Government. Though the Republican leaders were much averse to providing such control, they found inaction so dangerous that on January 14, 1890, Senator John Sherman reported from the Finance Committee a vague but peremptory statute to make trade competition compulsory. This was the origin of the AntiTrust Law which has since gone by his name, although the law actually passed was framed by the Senate judiciary committee. The first section declared that “every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is hereby declared to be illegal.” The law made no attempt to define the offenses it penalized and created no machinery for enforcing its provisions, but it gave jurisdiction over alleged violations to the courts–a favorite congressional mode of getting rid of troublesome responsibilities. As a result, the courts have been struggling with the application of the law ever since, without being able to develop a clear or consistent rule for discriminating between legal and illegal combinations in trade and commerce. Even upon the financial question, the Republicans succeeded in maintaining party harmony, notwithstanding a sharp conflict between factions. William Windom, the Secretary of the Treasury, had prepared a bill of the type known as a “straddle.” It offered the advocates of free coinage the right to send to the mint silver bullion in any quantity and to receive in return the net market value of the bullion in treasury notes redeemable in gold or silver coin at the option of the Government. The monthly purchase of not less than $2,000,000 worth of bullion was, however, no longer to be required by law. When the advocates of silver insisted that the provision for bullion purchase was too vague, a substitute was prepared which definitely required the Secretary of the Treasury to purchase 4,500,000 ounces of silver bullion in one month. The bill, as thus amended, was put through the House under special rule by a strict party vote. But when the bill reached the Senate, the former party agreement could no longer be maintained, and the Republican leaders lost control of the situation. The free silver Republicans combined with most of the Democrats to substitute a free coinage bill, which passed the Senate by forty-three yeas to twenty-four nays, all the negative votes save three coming from the Republican side.
It took all the influence the party leaders could exert to prevent a silver stampede in the House when the Senate substitute bill was brought forward; but by dexterous management, a vote of non-concurrence was passed and a committee of conference was appointed. The Republican leaders now found themselves in a situation in which presidential non-interference ceased to be desirable, but president Harrison could not be stirred to action. He would not even state his views. As Senator Sherman remarked in his “Recollections,” “The situation at that time was critical. A large majority of the Senate favored free silver, and it was feared that the small majority against it in the other House might yield and agree to it. The silence of the President on the matter gave rise to an apprehension that if a free coinage bill should pass both Houses, he would not feel at liberty to veto it.”
In this emergency, the Republican leaders appealed to their free silver party associates to be content with compelling the Treasury to purchase 4,500,000 ounces of silver per month, which it was wrongly calculated would cover the entire output of American mines. The force of party discipline eventually prevailed, and the Republican party got together on this compromise. The bill was adopted in both Houses by a strict party vote, with the Democrats solidly opposed, and was finally enacted on July 14, 1890.
Thus by relying upon political tactics, the managers of the Republican party were able to reconcile conflicting interests, maintain party harmony, and present a record of achievement which they hoped to make available in the fall elections. But while they had placated the party factions, they had done nothing to satisfy the people as a whole or to redress their grievances. The slowness of congressional procedure in matters of legislative reform allowed the amplest opportunity to unscrupulous business men to engage, in the meantime, in profiteering at the public expense. They were able to lay in stocks of goods at the old rates so that an increase of customs rates, for example, became an enormous tax upon consumers without a corresponding gain to the Treasury; for the yield was largely intercepted on private accounts by an advance in prices. The Tariff Bill, which William McKinley reported on April 16, 1890, became law only on the 1st of October, so there were over five months during which profiteers could stock at old rates for sales at the new rates and thus reap a rich harvest. The public, however, was infuriated, and popular sentiment was so stirred by the methods of retail trade that the politicians were both angered and dismayed. Whenever purchasers complained of an increase of price, they received the apparently plausible explanation, “Oh, the McKinley Bill did it.” To silence this popular discontent, the customary arts and cajoleries of the politicians proved for once quite ineffectual.
At the next election, the Republicans carried only eighty-eight seats in the House out of 332–the most crushing defeat they had yet sustained. By their new lease of power in the House, however, the Democratic party could not accomplish any legislation, as the Republicans still controlled the Senate. The Democratic leaders, therefore, adopted the policy of passing a series of bills attacking the tariff at what were supposed to be particularly vulnerable points. These measures, the Republicans derided as “pop-gun bills,” and in the Senate they turned them over to the committee on finance for burial. Both parties were rent by the silver issue, but it was noticeable that in the House which was closest to the people the opposition to the silver movement was stronger and more effective than in the Senate.
Notwithstanding the popular revolt against the Republican policy which was disclosed by the fall elections of 1890, President Harrison’s annual message of December 9, 1891, was marked by extreme complacency. Great things, he assured the people, were being accomplished under his administration. The results of the McKinley Bill “have disappointed the evil prophecies of its opponents and in large measure realized the hopeful predictions of its friends.” Rarely had the country been so prosperous. The foreign commerce of the United States had reached the largest total in the history of the country. The prophecies made by the antisilver men regarding disasters to result from the Silver Bullion Purchase Act, had not been realized. The President remarked “that the increased volume of currency thus supplied for the use of the people was needed and that beneficial results upon trade and prices have followed this legislation I think must be clear to every one.” He held that the free coinage of silver would be disastrous, as it would contract the currency by the withdrawal of gold, whereas “the business of the world requires the use of both metals.” While “the producers of silver are entitled to just consideration,” it should be remembered that “bimetallism is the desired end, and the true friends of silver will be careful not to overrun the goal.” In conclusion, the President expressed his great joy over “many evidences of the increased unification of the people and of the revived national spirit. The vista that now opens to us is wider and more glorious than before. Gratification and amazement struggle for supremacy as we contemplate the population, wealth, and moral strength of our country.”
Though the course of events has yet to be fully explained, President Harrison’s dull pomposity may have been the underlying reason of the aversion which Blaine now began to manifest. Although on Harrison’s side and against Blaine, Senator Cullom remarks in his memoirs that Harrison had “a very cold, distant temperament,” and that “he was probably the most unsatisfactory President we ever had in the White House to those who must necessarily come into personal contact with him.” Cullom is of the opinion that “jealousy was probably at the bottom of their disaffection,” but it appears to be certain that at this time Blaine had renounced all ambition to be President and energetically discouraged any movement in favor of his candidacy. On February 6, 1892, he wrote to the chairman of the Republican National Committee that he was not a candidate and that his name would not go before the convention. President Harrison went ahead with his arrangements for renomination, with no sign of opposition from Blaine. Then suddenly, on the eve of the convention, something happened–exactly what has yet to be discovered–which caused Blaine to resign the office of Secretary of State. It soon became known that Blaine’s name would be presented, although he had not announced himself as a candidate. Blaine’s health was then broken, and it was impossible that he could have imagined that his action would defeat Harrison. It could not have been meant for more than a protest. Harrison was renominated on the first ballot with Blaine a poor second in the poll.
In the Democratic convention, Cleveland, too, was renominated on the first ballot, in the face of a bitter and outspoken opposition. The solid vote of his own State, New York, was polled against him under the unit rule, and went in favor of David B. Hill. But even with this large block of votes to stand upon, Hill was able to get only 113 votes in all, while Cleveland received 616. Genuine acceptance of his leadership, however, did not at all correspond with this vote. Cleveland had come out squarely against free silver, and at least eight of the Democratic state conventions–in Colorado, Florida, Georgia, Idaho, Kansas, Nevada, South Carolina, and Texas–came out just as definitely in favor of free silver. But even delegates who were opposed to Cleveland, and who listened with glee to excoriating speeches against him forthwith, voted for him as the candidate of greatest popular strength. They then solaced their feelings by nominating a free silver man for Vice-President, who was made the more acceptable by his opposition to civil service reform. The ticket thus straddled the main issue; and the platform was similarly ambiguous. It denounced the Silver Purchase Act as “a cowardly makeshift” which should be repealed, and it declared in favor of “the coinage of both gold and silver without discrimination,” with the provision that “the dollar unit of coinage of both metals must be of equal intrinsic and exchangeable value.” The Prohibition party in that year came out for the “free and unlimited coinage of silver and gold.” A more significant sign of the times was the organization of the “People’s party,” which held its first convention and nominated the old Greenback leader, James B. Weaver of Iowa, on a free silver platform.
The campaign was accompanied by labor disturbances of unusual extent and violence. Shortly after the meeting of the national conventions, a contest began between the powerful Amalgamated Association of Steel and Iron Workers, the strongest of the trade-unions, and the Carnegie Company over a new wage scale introduced in the Homestead mills. The strike began on June 29, 1892, and local authority at once succumbed to the strikers. In anticipation of this eventuality, the company had arranged to have three hundred Pinkerton men act as guards. They arrived in Pittsburgh during the night of the 5th of July and embarked on barges which were towed up the river to Homestead. As they approached, the strikers turned out to meet them, and an engagement ensued in which men were killed or wounded on both sides and the Pinkerton men were defeated and driven away. For a short time, the strikers were in complete possession of the town and of the company’s property. They preserved order fairly well but kept a strict watch that no strike breakers should approach or attempt to resume work. The government of Pennsylvania was, for a time, completely superseded in that region by the power of the Amalgamated Association, until a large force of troops entered Homestead on the 12th of July and remained in possession of the place for several months. The contest between the strikers and the company caused great excitement throughout the country, and a foreign anarchist from New York attempted to assassinate Mr. Frick, the managing director of the company. Though this strike was caused by narrow differences concerning only the most highly paid classes of workers, it continued for some months and then ended in the complete defeat of the union.
On the same day that the militia arrived at Homestead, a more bloody and destructive conflict occurred in the Coeur d’Alene district of Idaho, where the workers in the silver mines were on strike. Nonunion men were imported and put into some of the mines. The strikers, armed with rifles and dynamite, thereupon attacked the nonunion men and drove them off, but many lives were lost in the struggle and much property was destroyed. The strikers proved too strong for any force which state authority could muster, but upon the call of the Governor, President Harrison ordered federal troops to the scene and under martial law order was soon restored.
Further evidence of popular unrest was given in August by a strike of the switchmen in the Buffalo railway yards, which paralyzed traffic until several thousand state troops were put on guard. About the same time, there were outbreaks in the Tennessee coal districts in protest against the employment of convict labor in the mines. Bands of strikers seized the mines, and in some places turned loose the convicts and in other places escorted them back to prison. As a result of this disturbance, during 1892 state troops were permanently stationed in the mining districts, and eventually the convicts were put back at labor in the mines.
Such occurrences infused bitterness into the campaign of 1892 and strongly affected the election returns. Weaver carried Colorado, Idaho, Kansas, and Nevada, and he got one electoral vote in Oregon and in North Dakota; but even if these twenty-two electoral votes had gone to Harrison, he would still have been far behind Cleveland, who received 277 electoral votes out of a total of 444. Harrison ran only about 381,000 behind Cleveland in the popular vote, but in four States, the Democrats had nominated no electors and their votes had contributed to the poll of over a million for Weaver. The Democratic victory was so sweeping that it gained the Senate as well as the House, and now for the first time a Democratic President was in accord with both branches of Congress. It was soon to appear, however, that this party accord was merely nominal.
CHAPTER IX. THE FREE SILVER REVOLT
The avenging consequences of the Silver Purchase Act moved so rapidly that when John Griffin Carlisle took office as Secretary of the Treasury in 1893, the gold reserve had fallen to $100,982,410–only $982,410 above the limit indicated by the Act of 1882–and the public credit was shaken by the fact that it was an open question whether the government obligation to pay a dollar was worth so much or only one half so much. The latter interpretation, indeed, seemed impending. The new Secretary’s first step was to adopt the makeshift expedient of his predecessors. He appealed to the banks for gold and backed up by patriotic exhortation from the press, he did obtain almost twenty-five millions in gold in exchange for notes. But as even more notes drawing out the gold were presented for redemption, the Secretary’s efforts were no more successful than carrying water in a sieve.
Of the notes presented for redemption during March and April, nearly one-half were treasury notes of 1890, which by law the Secretary might redeem “in gold or silver coin at his discretion.” The public was now alarmed by a rumor that Secretary Carlisle, who while in Congress had voted for free silver, would resort to silver payments on this class of notes, and regarded his statements as being noncommittal on the point. Popular alarm was, to some extent, dispelled by a statement from President Cleveland, on the 23rd of April, declaring flatly and unmistakably that redemption in gold would be maintained. But the financial situation throughout the country was such that nothing could stave off the impending panic. Failures were increasing in number, some large firms broke under the strain, and the final stroke came on the 5th of May when the National Cordage Company went into bankruptcy. As often happens in the history of panics, the event was trivial in comparison with the consequences. This company was of a type that is the reproach of American jurisprudence–the marauding corporation. In the very month in which it failed, it declared a large cash dividend. Its stock, which had sold at 147 in January, fell in May to below ten dollars a share. Though the Philadelphia and Reading Railway Company, which failed in February, had a capital of $40,000,000 and a debt of more than $125,000,000, the market did not break completely under that strain. The National Cordage had a capital of $20,000,000 and liabilities of only $10,000,000, but its collapse brought down with it the whole structure of credit. A general movement of liquidation set in, which throughout the West was so violent as to threaten general bankruptcy. Nearly all of the national bank failures were in the West and South, and still more extensive was the wreck of state banks and private banks. It had been the practice of country banks, while firmly maintaining local rates, to keep the bulk of their resources on deposit with city banks at two per cent. This practice now proved to be a fatal entanglement to many institutions. There were instances in which country banks were forced to suspend, though cash resources were actually on the way to them from depository centers.*
* Out of 158 national bank failures during the year, 153 were in the West and South. In addition there went down 172 state banks, 177 private banks, 47 savings banks, 13 loan and trust companies, and 6 mortgage companies.
Even worse than the effect of these numerous failures on the business situation was the derangement which occurred in the currency supply. The circulating medium was almost wholly composed of bank notes, treasury notes, and treasury certificates issued against gold and silver in the Treasury, coin being little in use except as fractional currency. Bank notes were essentially treasury certificates issued upon deposits of government bonds. In effect, the circulating medium was composed of government securities reduced to handy bits. Usually, a bank panic tends to bring note issues into rapid circulation for what they will fetch, but in this new situation, people preferred to impound the notes, which they knew to be good whatever happened so long as the Government held out. Private hoarding became so general that currency tended to disappear. Between September 30, 1892 and October 31, 1893, the amount of deposits in the national banks shrank over $496,000,000. Trade was reduced to making use of the methods of primitive barter, though the emergency was met to some extent by the use of checks and clearinghouse certificates. In many New England manufacturing towns, for example, checks for use in trade were drawn in denominations from one dollar up to twenty. In some cases, corporations paid off their employees in checks drawn on their own treasurers which served as local currency. In some Southern cities, clearing-house certificates in small denominations were issued for general circulation–in Birmingham, Alabama, for sums as small as twenty-five cents. It is worth noting that a premium was paid as readily for notes as for gold; indeed, the New York “Financial Chronicle” reported that the premium on currency was from two to three per cent, while the premium on gold was only one and one half per cent. Before the panic had ended, the extraordinary spectacle was presented of gold coins serving as a medium of trade because treasury notes and bank notes were still hoarded. These peculiarities of the situation had a deep effect upon the popular attitude towards the measures recommended by the Administration.
While this devastating panic was raging over all the country, President Cleveland was beset by troubles that were both public and personal. He was under heavy pressure from the office seekers. They came singly or in groups and under the escort of Congressmen, some of whom performed such service several times a day. The situation became so intolerable that on the 8th of May President Cleveland issued an executive order setting forth that “a due regard for public duty, which must be neglected if present conditions continue, and an observance of the limitations placed upon human endurance, oblige me to decline, from and after this date, all personal interviews with those seeking office.”
According to the Washington papers, this sensible decision was received with a tremendous outburst of indignation. The President was denounced for shutting his doors upon the people who had elected him, and he was especially severely criticized for the closing sentence of his order stating that “applicants for office will only prejudice their prospects by repeated importunity and by remaining at Washington to await results.” This order was branded as an arbitrary exercise of power compelling free American citizens to choose exile or punishment, and was featured in the newspapers all over the country. The hubbub became sufficient to extract from Cleveland’s private secretary an explanatory statement pointing out that in the President’s day a regular allotment of time was made for congressional and business callers other than the office seekers, for whom a personal interview was of no value since the details of their cases could not be remembered. “What was said in behalf of one man was driven out of mind by the remarks of the next man in line,” whereas testimonials sent through the mails went on file and received due consideration. “So many hours a day having been given up to the reception of visitors, it has been necessary, in order to keep up with the current work, for the President to keep at his desk from early in the morning into the small hours of the next morning. Now that may do for a week or for a month, but there is a limit to human physical endurance, and it has about been reached.”
Such were the distracting conditions under which President Cleveland had to deal with the tremendous difficulties of national import which beset him. There were allusions in his inaugural address which showed how keenly he felt the weight of his many responsibilities, and there is a touch of pathos in his remark that he took “much comfort in remembering that my countrymen are just and generous, and in the assurance that they will not condemn those who by sincere devotion to their service deserve their forbearance and approval.” This hope of Cleveland’s was eventually justified, but not until after his public career had ended; meanwhile he had to undergo a storm of censure so blasting that it was more like a volcanic rain of fire and lava than any ordinary tempest, however violent.
On the 30th of June, President Cleveland called an extra session of Congress for the 7th of August “to the end that the people may be relieved through legislation from present and impending danger and distress.” In recent years, the fact has come to light that his health was at that time in a condition so precarious that it would have caused wild excitement had the truth become known, for only his life stood in the way of a free silver President. On the same day on which he issued his call for the extra session, President Cleveland left for New York ostensibly for a yachting trip, but while the yacht was steaming slowly up the East River, he was in the hands of surgeons who removed the entire left upper jaw. On the 5th of July they performed another operation in the same region for the removal of any tissues which might possibly have been infected. These operations were so completely successful that the President was fitted with an artificial jaw of vulcanized rubber which enabled him to speak without any impairment of the strength and clearness of his voice.* Immediately after this severe trial, which he bore with calm fortitude, Cleveland had to battle with the raging silver faction, strong in its legislative position through its control of the Senate.
* For details, see New York “Times,” Sept. 21, 1917.
When Congress met, the only legislation which the President had to propose was the repeal of the Silver Purchase Act, although he remarked that “tariff reform has lost nothing of its immediate and permanent importance and must in the near future engage the attention of Congress.” It was a natural inference, therefore, that the Administration had no financial policy beyond putting a stop to treasury purchases of silver, and there was a vehement outcry against an action which seemed to strike against the only visible source of additional currency. President Cleveland was even denounced as a tool of Wall Street, and the panic was declared to be the result of a plot of British and American bankers against silver.
Nevertheless, on the 28th of August, the House passed a repeal bill by a vote of 240 to 110. There was a long and violent struggle in the Senate, where such representative anomalies existed that Nevada with a population of 45,761 had the same voting power as New York with 5,997,853. Hence, at first, it looked as if the passage of a repeal bill might be impossible. Finally, the habit of compromise prevailed and a majority agreement was reached postponing the date of repeal for twelve or eighteen months during which the treasury stock of silver bullion was to be turned into coin. Cleveland made it known that he would not consent to such an arrangement, and the issue was thereafter narrowed to that of unconditional repeal of the Silver Purchase Act. The Senators from the silver-mining States carried on an obstinate filibuster and refused to allow the question to come to a vote, until their arrogance was gradually toned down by the discovery that the liberty to dump silver on the Treasury had become a precarious mining asset. The law provided for the purchase of 4,500,000 ounces a month, “or, so much thereof as may be offered at the market price.” Secretary Carlisle found that offers were frequently higher in price than New York and London quotations, and by rejecting them he made a considerable reduction in the amount purchased. Moreover, the silver ranks began to divide on the question of policy. The Democratic silver Senators wished to enlarge the circulating medium by increasing the amount of coinage, and they did not feel the same interest in the mere stacking of bullion in the Treasury that possessed the mining camp Senators on the Republican side. When these two elements separated on the question of policy, the representatives of the mining interests recognized the hopelessness of preventing a vote upon the proposed repeal of the silver purchase act. On the 30th of October, the Senate passed the repeal with no essential difference from the House bill, and the bill became law on November 1, 1893.
But although the repeal bill stopped the silver drain upon the Treasury, it did not relieve the empty condition to which the Treasury had been reduced. It was manifest that, if the gold standard was to be maintained, the Treasury stock of gold would have to be replenished. The Specie Resumption Act of 1875 authorized the sale of bonds “to prepare and provide for” redemption of notes in coin, but the only classes of bonds which it authorized were those at four per cent payable after thirty years, four and a half per cent payable after fifteen years, and five per cent payable after ten years from date. For many years, the Government had been able to borrow at lower rates but had in vain besought Congress to grant the necessary authority. The Government now appealed once more to Congress for authority to issue bonds at a lower rate of interest. Carlisle, the Secretary of the Treasury, addressed a letter to the Senate committee of finance, setting forth the great saving that would be thus effected. Then ensued what must be acknowledged to be a breakdown in constitutional government. Immediately after a committee meeting on January 16, 1894, the Chairman, Senator Voorhees, issued a public statement in which he said that “it would be trifling with a very grave affair to pretend that new legislation concerning the issue of bonds can be accomplished at this time, and in the midst of present elements and parties in public life, with elaborate, extensive, and practically indefinite debate.” Therefore, he held that “it will be wiser, safer and better for the financial and business interests of the country to rely upon existing law.” This plainly amounted to a public confession.that Congress was so organized as to be incapable of providing for the public welfare.
Carlisle decided to sell the ten-year class of bonds, compensating for their high interest rate by exacting such a premium as would reduce to three per cent the actual yield to holders. On January 17, 1894, he offered bonds to the amount of fifty millions, but bids came in so slowly that he found it necessary to visit New York to make a personal appeal to a number of leading bankers to exert themselves to prevent the failure of the sale. As a result of these efforts, the entire issue was sold at a premium of $8,660,917, and the treasury stock of gold was brought up to $107,440,802.
Then followed what is probably the most curious chapter in the financial history of modern times. Only gold was accepted by the Treasury in payment of bonds; but gold could be obtained by offering treasury notes for redemption. The Act of 1878 expressly provided that, when redeemed, these notes “shall not be retired, canceled, or destroyed, but they shall be reissued and paid out again and kept in circulation.” The Government, as President Cleveland pointed out, was “forced to redeem without redemption and pay without acquittance.” These conditions set up against the Treasury an endless chain by which note redemptions drained out the gold as fast as bond sales poured it in. In a message to Congress on January 28, 1895, President Cleveland pointed out that the Treasury had redeemed more than $300,000,000 of its notes in gold, and yet these notes were all still outstanding. Appeals to Congress to remedy the situation proved absolutely fruitless, and the only choice left to the President was to continue pumping operations or abandon the gold standard, as the silver faction in Congress desired. By February 8, 1895, the stock of gold in the Treasury was down to $41,340,181. The Administration met this sharp emergency by a contract with a New York banking syndicate which agreed to deliver 3,500,000 ounces of standard gold coin, at least one half to be obtained in Europe. The syndicate was, moreover, to “exert all financial influence and make all legitimate efforts to protect the Treasury of the United States against the withdrawals of gold pending the complete performance of the contract.”
The replenishing of the Treasury by this contract was, however, only a temporary relief. By January 6, 1896, the gold reserve was down to $61,251,710. The Treasury now offered $100,000,000 of the four per cent bonds for sale and put forth special efforts to make subscription popular. Blanks for bids were displayed in all post-offices, a circular letter was sent to all national banks, the movement was featured in the newspapers, and the result was that 4635 bids were received coming from forty-seven States and Territories, and amounting to $526,970,000. This great oversubscription powerfully upheld the public credit and, thereafter, the position of the Treasury remained secure; but altogether, $262,000,000 in bonds had been sold to maintain its solvency.
Consideration of the management of American foreign relations during this period does not enter into the scope of this book, but the fact should be noted that the anxieties of public finance were aggravated by the menace of war.* In the boundary dispute between British Guiana and Venezuela, President Cleveland proposed arbitration, but this was refused by the British Government. President Cleveland, whose foreign policy was always vigorous and decisive, then sent a message to Congress on December 17, 1895, describing the British position as an infringement of the Monroe Doctrine and recommending that a commission should be appointed by the United States to conduct an independent inquiry to determine the boundary line in dispute. He significantly remarked that “in making these recommendations I am fully alive to the responsibility incurred and keenly realize all the consequences that may follow.” The possibility of conflict, thus hinted, was averted when Great Britain agreed to arbitration, but meanwhile, American securities in great numbers were thrown upon the market through sales of European account and added to the financial strain.
* See “The Path of Empire,” by Carl Russell Fish (in “The Chronicles of America”).
The invincible determination which President Cleveland showed in this memorable struggle to maintain the gold standard will always remain his securest title to renown, but the admiration due to his constancy of soul cannot be extended to his handling of the financial problem. It appears, from his own account, that he was not well advised as to the extent and nature of his financial resources. He did not know until February 7, 1895, when Mr. J. P.