The Cleveland Era Part 4

According to the Was.h.i.+ngton 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 Was.h.i.+ngton 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 a.s.surance 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 fort.i.tude, 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 pa.s.sed 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 pa.s.sage 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 a.s.set. 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 pa.s.sed 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 cla.s.ses 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 const.i.tutional 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 cla.s.s 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 replenis.h.i.+ng 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 t.i.tle 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. Morgan called his attention to the fact, that among the general powers of the Secretary of the Treasury is the provision that he "may purchase coin with any of the bonds or notes of the United States authorized by law, at such rates and upon such terms as he may deem most advantageous to the public interest." The President was urged to proceed under this law to buy $100,000,000 in gold at a fixed price, paying for it in bonds. This advice Cleveland did not accept at the time, but in later years he said that it was "a wise suggestion," and that he had "always regretted that it was not adopted."

But apart from any particular error in the management of the Treasury, the general policy of the Administration was much below the requirements of the situation. The panic came to an end in the fall of 1893, much as a great conflagration expires through having reached all the material on which it can feed, but leaving a scene of desolation behind it. Thirteen commercial houses out of every thousand doing business had failed. Within two years, nearly one fourth of the total railway capitalization of the country had gone into bankruptcy, involving an exposure of falsified accounts sufficient to shatter public confidence in the methods of corporations. Industrial stagnation and unemployment were prevalent throughout the land. Meanwhile, the congressional situation was plainly such that only a great uprising of public opinion could break the hold of the silver faction. The standing committee system, which controls the gateways of legislation, is made up on a system of party apportionment whose effect is to give an insurgent faction of the majority the balance of power, and this opportunity for mischief was unsparingly used by the silver faction.

Such a situation could not be successfully encountered save by a policy aimed distinctly at accomplis.h.i.+ng a redress of popular grievances. But such a policy, President Cleveland failed to conceive. In his inaugural address, he indicated in a general way the policy pursued throughout his term when he said, "I shall to the best of my ability and within my sphere of duty preserve the Const.i.tution by loyally protecting every grant of Federal power it contains, by defending all its restraints when attacked by impatience and restlessness, and by enforcing its limitations and reservations in favor of the states and the people." This statement sets forth a low view of governmental function and practically limits its sphere to the office of the policeman, whose chief concern is to suppress disorder. Statesmans.h.i.+p should go deeper and should labor in a constructive way to remove causes of disorder.

An examination of President Cleveland's state papers show that his first concern was always to relieve the Government from its financial embarra.s.sments; whereas the first concern of the people was naturally and properly to find relief from their own embarra.s.sments. In the last a.n.a.lysis, the people were not made for the convenience of the Government, but the Government was made for the convenience of the people, and this truth was not sufficiently recognized in the policy of Cleveland's administration. His guiding principle was stated, in the annual message, December 3, 1894, as follows: "The absolute divorcement of the Government from the business of banking is the ideal relations.h.i.+p of the Government to the circulation of the currency of the country." That ideal, however, is unattainable in any civilized country. The only great state in which it has ever been actually adopted is China, and the results were not such as to commend the system. The policy which yields the greatest practical benefits is that which makes it the duty of the Government to supervise and regulate the business of banking and to attend to currency supply; and the currency troubles of the American people were not removed until eventually their Government accepted and acted upon this view.

Not until his message of December 3, 1894, did President Cleveland make any recommendation going to the root of the trouble, which was, after all, the need of adequate provision for the currency supply. In that message, he sketched a plan devised by Secretary Carlisle, allowing national banks to issue notes up to seventy-five per cent of their actual capital and providing also, under certain conditions, for the issue of circulating notes by state banks without taxation. This plan, he said, "furnishes a basis for a very great improvement in our present banking and currency system." But in his subsequent messages, he kept urging that "the day of sensible and sound financial methods will not dawn upon us until our Government abandons the banking business." To effect this aim, he urged that all treasury notes should be "withdrawn from circulation and canceled," and he declared that he was "of opinion that we have placed too much stress upon the danger of contracting the currency." Such proposals addressed to a people agonized by actual scarcity of currency were utterly impracticable, nor from any point of view can they be p.r.o.nounced to have been sound in the circ.u.mstances then existing. Until the banking system was reformed, there was real danger of contracting the currency by a withdrawal of treasury notes. President Cleveland was making a mistake to which reformers are p.r.o.ne; he was taking the second step before he had taken the first. The realization on the part of others that his efforts were misdirected not only made it impossible for him to obtain any financial legislation but actually fortified the position of the free silver advocates by allowing them the advantage of being the only political party with any positive plans for the redress of popular grievances. Experts became convinced that statesmen at Was.h.i.+ngton were as incompetent to deal with the banking problems as they had been in dealing with reconstruction problems and that, in like manner, the regulation of banking had better be abandoned to the States. A leading organ of the business world pointed out that some of the state systems of note issue had been better than the system of issuing notes through national banks which had been subst.i.tuted in 1862; and it urged that the gains would exceed all disadvantages if state banks were again allowed to act as sources of currency supply by a repeal of the government tax of ten per cent on their circulation. But nothing came of this suggestion, which was, indeed, a counsel of despair. It took many years of struggle and more experiences of financial panic and industrial distress to produce a genuine reform in the system of currency supply.

President Cleveland's messages suggest that he made up his mind to do what he conceived to be his own duty regardless of consequences, whereas an alert consideration of possible consequences is an integral part of the duties of statesmans.h.i.+p. He persevered in his pension vetoes without making any movement towards a change of system, and the only permanent effect of his crusade was an alteration of procedure on the part of Congress in order to evade the veto power. Individual pension bills are still introduced by the thousand at every session of Congress, but since President Cleveland's time all those approved have been included in one omnibus bill, known as a "pork barrel bill," which thus collects enough votes from all quarters to ensure pa.s.sage.

President Cleveland found another topic for energetic remonstrance in a system of privilege that had been built up at the expense of the post-office department. Printed matter in the form of books was charged eight cents a pound, but in periodical form only one cent a pound. This discrimination against books has had marked effect upon the quality of American literature, lowering its tone and encouraging the publication of many cheap magazines. President Cleveland gave impressive statistics showing the loss to the Government in transporting periodical publications, "including trashy and even harmful literature." Letter mails weighing 65,337,343 pounds yielded a revenue of $60,624,464. Periodical publications weighing 348,988,648 pounds yielded a revenue of $2,996,403. Cleveland's agitation of the subject under conditions then existing could not, however, have any practical effect save to affront an influential interest abundantly able to increase the President's difficulties by abuse and misrepresentation.

CHAPTER X. LAW AND ORDER UPHELD

While President Cleveland was struggling with the difficult situation in the Treasury, popular unrest was increasing in violence. Certain startling political developments now gave fresh incitement to the insurgent temper which was spreading among the ma.s.ses. The relief measure at the forefront of President Cleveland's policy was tariff reform, and upon this the legislative influence of the Administration was concentrated as soon as the repeal of the Silver Purchase Act had been accomplished.

The House leader in tariff legislation at that time was a man of exceptionally high character and ability. William L. Wilson was President of the University of West Virginia when he was elected to Congress in 1882, and he had subsequently retained his seat more by the personal respect he inspired than through the normal strength of his party in his district. The ordinary rule of seniority was by consent set aside to make him chairman of the Ways and Means Committee. He aimed to produce a measure which would treat existing interests with some consideration for their needs. In the opinion of F. W. Taussig, an expert economist, the bill as pa.s.sed by the House on February 1, 1894, "was simply a moderation of the protective duties" with the one exception of the removal of the duty on wool. Ever since 1887, it had been a settled Democratic policy to put wool on the free list, in order to give American manufacturers the same advantage in the way of raw material which those of every other country enjoyed, even in quarters where a protective tariff was stiffly applied.

The scenes that now ensued in the Senate showed that arbitrary rule may be readily exercised under the forms of popular government. Senator Matthew S. Quay of Pennsylvania, a genial, scholarly cynic who sought his ends by any available means and who disdained hypocritical pretenses, made it known that he was in a position to block all legislation unless his demands were conceded. He prepared an everlasting speech, which he proceeded to deliver by installments in an effort to consume the time of the Senate until it would become necessary to yield to him in order to proceed with the consideration of the bill. His method was to read matter to the Senate until he was tired and then to have some friend act for him while he rested. According to the "Was.h.i.+ngton Star," Senator Gallinger was "his favorite helper in this, for he has a good round voice that never tires, and he likes to read aloud." The thousands of pages of material which Senator Quay had collected for use, and the apparently inexhaustible stores upon which he was drawing, were the subject of numerous descriptive articles in the newspapers of the day. Senator Quay's tactics were so successful, indeed, that he received numerous congratulatory telegrams from those whose interests he was championing. They had been defeated at the polls in their attempt to control legislation, and defeated in the House of Representatives, but now they were victorious in the Senate.

The methods of Senator Quay were tried by other Senators on both sides, though they were less frank in their avowal. After the struggle was over, Senator Vest of Missouri, who had been in charge of the bill, declared:

"I have not an enemy in the world whom I would place in the position that I have occupied as a member of the Finance Committee under the rules of the Senate. I would put no man where I have been, to be blackmailed and driven in order to pa.s.s a bill that I believe is necessary to the welfare of the country, by Senators who desired to force amendments upon me against my better judgment and compel me to decide the question whether I will take any bill at all or a bill which had been distorted by their views and objects. Sir, the Senate 'lags superfluous on the stage' today with the American people, because in an age of progress, advance, and aggressive reform, we sit here day after day and week after week, while copies of the census reports, almanacs, and even novels are read to us, and under our rules there is no help for the majority except to listen or leave the chamber."

The pa.s.sage of the bill in anything like the form in which it reached the Senate was plainly impossible without a radical change in the rules, and on neither side of the chamber was there any real desire for an amendment of procedure. A number of the Democratic Senators who believed that it was desirable to keep on good terms with business interests were, in reality, opposed to the House bill. Their efforts to control the situation were favored by the habitual disposition of the Senate, when dealing with business interests, to decide questions by private conference and personal agreements, while maintaining a surface show of party controversy. Hence, Senator Gorman of Maryland was able to make arrangements for the pa.s.sage of what became known as the Gorman Compromise Bill, which radically altered the character of the original measure by the adoption of 634 amendments. It pa.s.sed the Senate on the 3rd of July by a vote of thirty-nine to thirty-four.

The next step was the appointment of a committee of conference between the two Houses, but the members for the House showed an unusual determination to resist the will of the Senate, and on the 19th of July, the conferees reported that they had failed to reach an agreement. When President Cleveland permitted the publication of a letter which he had written to Chairman Wilson condemning the Senate bill, the fact was disclosed that the influence of the Administration had been used to stiffen the opposition of the House. Senator Gorman and other Democratic Senators made sharp replies, and the party quarrel became so bitter that it was soon evident that no sort of tariff bill could pa.s.s the Senate.

The House leaders now reaped a great advantage from the Reed rules to the adoption of which they had been so bitterly opposed. Availing themselves of the effective means of crus.h.i.+ng obstruction provided by the powers of the Rules Committee, in one day they pa.s.sed the Tariff Bill as amended by the Senate, which eventually became law, and then pa.s.sed separate bills putting on the free list coal, barbed wire, and sugar. These bills had no effect other than to put on record the opinion of the House, as they were of course subsequently held up in the Senate. This unwonted insubordination on the part of the House excited much angry comment from dissatisfied Senators. President Cleveland was accused of unconst.i.tutional interference in the proceedings of Congress; and the House was blamed for submitting to the Senate and pa.s.sing the amended bill without going through the usual form of conference and adjustment of differences. Senator Sherman of Ohio remarked that "there are many cases in the bill where enactment was not intended by the Senate. For instance, innumerable amendments were put on by Senators on both sides of the chamber... to give the Committee of Conference a chance to think of the matter, and they are all adopted, whatever may be their language or the incongruity with other parts of the bill."

The bitter feeling, excited by the summary mode of enactment on the part of the House, was intensified by President Cleveland's treatment of the measure. While he did not veto it, he would not sign it but allowed it to become law by expiration of the ten days in which he could reject it. He set forth his reasons in a letter on August 27, 1894, to Representative Catchings of Missouri, in which he sharply commented upon the incidents accompanying the pa.s.sage of the bill and in which he declared:

"I take my place with the rank and file of the Democratic party who believe in tariff reform, and who know what it is; who refuse to accept the result embodied in this bill as the close of the war; who are not blinded to the fact that the livery of Democratic tariff reform has been stolen and used in the service of Republican protection; and who have marked the places where the deadly blight of treason has blasted the counsels of the brave in their hour of might."

The letter was written throughout with a fervor rare in President Cleveland's papers, and it had a scorching effect. Senator Gorman and some other Democratic Senators lost their seats as soon as the people had a chance to express their will.

The circ.u.mstances of the tariff struggle greatly increased popular discontent with the way in which the government of the country was being conducted at Was.h.i.+ngton. It became a common belief that the actual system of government was that the trusts paid the campaign expenses of the politicians and in return the politicians allowed the trusts to frame the tariff schedules. Evidence in support of this view was furnished by testimony taken in the investigation of the sugar scandal in the summer of 1894. Charges had been made in the newspapers that some Senators had speculated in sugar stocks during the time when they were engaged in legislation affecting the value of those stocks. Some of them admitted the fact of stock purchases, but denied that their legislative action had been guided by their investments. In the course of the investigation, H. O. Havemeyer, the head of the Sugar Trust, admitted that it was the practice to subsidize party management. "It is my impression," he said, "that whenever there is a dominant party, wherever the majority is large, that is the party that gets the contribution because that is the party which controls the local matters." He explained that this system was carried on because the company had large interests which needed protection, and he declared "every individual and corporation and firm, trust, or whatever you call it, does these things and we do them."

During the tariff struggle, a movement took place which was an evidence of popular discontent of another sort. At first it caused great uneasiness, but eventually the manifestation became more grotesque than alarming. Jacob S. c.o.xey of Ma.s.sillon, Ohio, a smart specimen of the American type of handy business man, announced that he intended to send a pet.i.tion to Was.h.i.+ngton wearing boots so that it could not be conveniently shelved by being stuck away in a pigeonhole. He thereupon proceeded to lead a march of the unemployed, which started from Ma.s.sillon on March 25, 1894, with about one hundred men in the ranks. These crusaders c.o.xey described as the "Army of the Commonweal of Christ," and their purpose was to proclaim the wants of the people on the steps of the Capitol on the 1st of May. The leader of this band called upon the honest working cla.s.ses to join him, and he gained recruits as he advanced. Similar movements started in the Western States. "The United States Industrial Army," headed by one Frye, started from Los Angeles and at one time numbered from six to eight hundred men; they reached St. Louis by swarming on the freight trains of the Southern Pacific road and thereafter continued on foot. A band under a leader named Kelly started from San Francisco on the 4th of April and by commandeering freight trains reached Council Bluffs, Iowa, whence they marched to Des Moines. There, they went into camp with at one time as many as twelve hundred men. They eventually obtained flatboats, on which they floated down the Mississippi and then pushed up the Ohio to a point in Kentucky whence they proceeded on foot. Attempts on the part of such bands to seize trains brought them into conflict with the authorities at some points. For instance, a detachment of regular troops in Montana captured a band coming East on a stolen Northern Pacific train, and militia had to be called out to rescue a train from a band at Mount Sterling, Ohio.

c.o.xey's own army never amounted to more than a few hundred, but it was more in the public eye. It had a large escort of newspaper correspondents who gave picturesque accounts of the march to Was.h.i.+ngton; and c.o.xey himself took advantage of this gratuitous publicity to express his views. Among other measures, he urged that since good roads and money were both greatly needed by the country at large, the Government should issue $500,000,000 in "non-interest bearing bonds" to be used in employing workers in the improvement of the roads. After an orderly march through parts of Ohio, Pennsylvania, and Maryland, in the course of which his men received many donations of supplies from places through which they pa.s.sed, c.o.xey and his army arrived at Was.h.i.+ngton on the 1st of May and were allowed to parade to the Capitol under police escort along a designated route. When c.o.xey left the ranks, however, to cut across the gra.s.s to the Capitol, he was arrested on the technical charge of trespa.s.sing. The army went into camp, but on the 12th of May the authorities forced the men to move out of the District. They thereupon took up quarters in Maryland and s.h.i.+fted about from time to time. Detachments from the Western bands arrived during June and July, but the total number encamped about Was.h.i.+ngton probably never exceeded a thousand. Difficulties in obtaining supplies and inevitable collisions with the authorities caused the band gradually to disperse. c.o.xey, after his short term in jail, traveled about the country trying to stir up interest in his aims and to obtain supplies. The novelty of his movement, however, had worn off, and results were so poor that on the 26th of July he issued a statement saying he could do no more and that what was left of the army would have to s.h.i.+ft for itself. In Maryland, the authorities arrested a number of c.o.xey's "soldiers" as vagrants. On the 11th of August, a detachment of Virginia militia drove across the Potomac the remnants of the Kelly and Frye armies, which were then taken in charge by the district authorities. They were eventually supplied by the Government with free transportation to their homes.

Of more serious import than these marchings and campings, as evidence of popular unrest, were the activities of organized labor which now began to attract public attention. The Knights of Labor were declining in numbers and influence. The attempt, which their national officers made in January, 1894, to get out an injunction to restrain the Secretary of the Treasury from making bond sales really facilitated Carlisle's effort by obtaining judicial sanction for the issue. Labor disturbances now followed in quick succession. In April, there was a strike on the Great Northern Railroad, which for a long time almost stopped traffic between St. Paul and Seattle. Local strikes in the mining regions of West Virginia and Colorado, and in the c.o.ke fields of Western Pennsylvania, were attended by conflicts with the authorities and some loss of life. A general strike of the bituminous coal miners of the whole country was ordered by the United Mine Workers on the 21st of April, and called out numbers variously estimated at from one hundred and twenty-five thousand to two hundred thousand; but by the end of July the strike had ended in a total failure.

All the disturbances that abounded throughout the country were overshadowed, however, by a tremendous struggle which centered in Chicago and which brought about new and most impressive developments of national authority. In June, 1893, Eugene V. Debs, the secretary-treasurer of the Brotherhood of Locomotive Firemen, resigned his office and set about organizing a new general union of railroad employees in antagonism to the Brotherhoods, which were separate unions of particular cla.s.ses of workers. He formed the American Railway Union and succeeded in inst.i.tuting 465 local lodges which claimed a members.h.i.+p of one hundred and fifty thousand. In March, 1894, Pullman Company employees joined the new union. On the 11th of May, a cla.s.s of workers in this company's shops at Pullman, Illinois, struck for an increase of wages, and on the 21st of June the officers of the American Railway Union ordered its members to refuse to handle trains containing Pullman cars unless the demands of the strikers were granted. Although neither the American Federation of Labor nor the Brotherhoods endorsed this sympathetic strike, it soon spread over a vast territory and was accompanied by savage rioting and b.l.o.o.d.y conflicts. In the suburbs of Chicago the mobs burned numerous cars and did much damage to other property. The losses inflicted on property throughout the country by this strike have been estimated at $80,000,000.

The strikers were undoubtedly encouraged in resorting to force by the sympathetic att.i.tude which Governor Altgeld of Illinois showed towards the cause of labor. The Knights of Labor and other organizations of workingmen had pa.s.sed resolutions complimenting the Governor on his pardon of the Chicago anarchists, and the American Railway Union counted unduly upon his support in obtaining their ends. The situation was such as to cause the greatest consternation throughout the country, as there was a widespread though erroneous belief that there was no way in which national Government could take action to suppress disorder unless it was called upon by the Legislature, if it happened to be in session, or by the Governor. But at this critical moment, the Illinois Legislature was not in session, and Governor Altgeld refused to call for aid. For a time, it therefore seemed that the strikers were masters of the situation and that law and order were powerless before the mob.

There was an unusual feeling of relief throughout the country when word came from Was.h.i.+ngton on the 1st of July that President Cleveland had called out the regular troops. Governor Altgeld sent a long telegram protesting against sending federal troops into Illinois without any request from the authority of the State. But President Cleveland replied briefly that the troops were not sent to interfere with state authority but to enforce the laws of the United States, upon the demand of the Post Office Department that obstruction to the mails be removed, and upon the representations of judicial officers of the United States that processes of federal courts could not be executed through the ordinary means. In the face of what was regarded as federal interference, riot for the moment blazed out more fiercely than ever, but the firm stand taken by the President soon had its effect. On the 6th of July, Governor Altgeld ordered out the state militia which soon engaged in some sharp encounters with the strikers. On the next day, a force of regular troops dispersed a mob at Hammond, Indiana, with some loss of life. On the 8th of July, President Cleveland issued a proclamation to the people of Illinois and of Chicago in particular, notifying them that those "taking part with a riotous mob in forcibly resisting and obstructing the execution of the laws of the United States... cannot be regarded otherwise than as public enemies," and that "while there will be no hesitation or vacillation in the decisive treatment of the guilty, this warning is especially intended to protect and save the innocent." The next day, he issued as energetic a proclamation against "unlawful obstructions, combinations and a.s.semblages of persons" in North Dakota, Montana, Idaho, Was.h.i.+ngton, Wyoming, Colorado, California, Utah, and New Mexico.

At the request of the American Railway Union, delegates from twenty-five unions connected with the American Federation of Labor met in Chicago on the 12th of July, and Debs made an ardent appeal to them to call a general strike of all labor organizations. But the conference decided that "it would be unwise and disastrous to the interests of labor to extend the strike any further than it had already gone" and advised the strikers to return to work. Thereafter, the strike rapidly collapsed, although martial law had to be proclaimed and, before quiet was restored, some sharp conflicts still took place between federal troops and mobs at Sacramento and other points in California. On the 3rd of August, the American Railway Union acknowledged its defeat and called off the strike. Meanwhile, Debs and other leaders had been under arrest for disobedience to injunctions issued by the federal courts. Eventually, Debs was sentenced to jail for six months,* and the others for three months. The cases were the occasion of much litigation in which the authority of the courts to intervene in labor disputes by issuing injunctions was on the whole sustained. The failure and collapse of the American Railway Union appears to have ended the career of Debs as a labor organizer, but he has since been active and prominent as a Socialist party leader.

* Under Section IV of the Anti-Trust Law of 1890.

Public approval of the energy and decision which President Cleveland displayed in handling the situation was so strong and general that it momentarily quelled the factional spirit in Congress. Judge Thomas M. Cooley, then, probably the most eminent authority on const.i.tutional law, wrote a letter expressing "unqualified satisfaction with every step" taken by the President "in vindication of the national authority." Both the Senate end the House adopted resolutions endorsing the prompt and vigorous measures of the Administration. The newspapers, too, joined in the chorus of approval. A newspaper ditty which was widely circulated and was read by the President with pleasure and amus.e.m.e.nt ended a string of verses with the lines:

The railroad strike played merry hob, The land was set aflame; Could Grover order out the troops To block the striker's game? One Altgeld yelled excitedly, "Such tactics I forbid; You can't trot out those soldiers," yet That's just what Grover did.

In after years when people talk Of present stirring times, And of the action needful to Sit down on public crimes, They'll all of them acknowledge then (The fact cannot be hid) That whatever was the best to do Is just what Grover did.

This brief period of acclamation was, however, only a gleam of suns.h.i.+ne through the clouds before the night set in with utter darkness. Relations between President Cleveland and his party in the Senate had long been disturbed by his refusal to submit to the Senate rule that nominations to office should be subject to the approval of the Senators from the State to which the nominees belonged. On January 15, 1894, eleven Democrats voted with Senator David B. Hill to defeat a New York nominee for justice of the Supreme Court. President Cleveland then nominated another New York jurist against whom no objection could be urged regarding reputation or experience; but as this candidate was not Senator Hill's choice, the nomination was rejected, fourteen Democrats voting with him against it. President Cleveland now availed himself of a common Senate practice to discomfit Senator Hill. He nominated Senator White of Louisiana, who was immediately confirmed as is the custom of the Senate when one of its own members is nominated to office. Senator Hill was thus left with the doubtful credit of having prevented the appointment of a New Yorker to fill the vacancy in the Supreme Court. But this incident did not seriously affect his control of the Democratic party organization in New York. His adherents extolled him as a New York candidate for the Presidency who would restore and maintain the regular party system without which, it was contended, no administration could be successful in framing and carrying out a definite policy. Hill's action, in again presenting himself as a candidate for Governor in the fall of 1894, is intelligible only in the light of this ambition. He had already served two terms as Governor and was now only midway in his senatorial term; but if he again showed that he could carry New York he would have demonstrated, so it was thought, that he was the most eligible Democratic candidate for the Presidency. But he was defeated by a plurality of about 156,000.

The fall elections of 1894, indeed, made havoc in the Democratic party. In twenty-four States, the Democrats failed to return a single member, and in each of six others, only a single district failed to elect a Republican. The Republican majority in the House was 140, and the Republican party also gained control of the Senate. The Democrats who had swept the country two years before were now completely routed.

Under the peculiar American system which allows a defeated party to carry on its work for another session of Congress as if nothing had happened, the Democratic party remained in actual possession of Congress for some months but could do nothing to better its record. The leading occupation of its members now seemed to be the advocacy of free silver and the denunciation of President Cleveland. William J. Bryan of Nebraska was then displaying in the House the oratorical accomplishments and dauntless energy of character which soon thereafter gained him the party leaders.h.i.+p. With prolific rhetoric, he likened President Cleveland to a guardian who had squandered the estate of a confiding ward and to a trainman who opened a switch and caused a wreck, and he declared that the President in trying to inoculate the Democratic party with Republican virus had poisoned its blood.

Shortly after the last Democratic Congress-the last for many years-the Supreme Court undid one of the few successful achievements of this party when it was in power. The Tariff Bill contained a section imposing a tax of two per cent on incomes in excess of $4000. A case was framed attacking the const.i.tutionality of the tax,* the parties on both sides aiming to defeat the law and framing the issues with that purpose in view. On April 8, 1895, the Supreme Court rendered a judgment which showed that the Court was evenly divided on some points. A rehearing was ordered and a final decision was rendered on the 20th of May. By a vote of five to four it was held that the income tax was a direct tax, that as such it could be imposed only by apportionment among the States according to population, and that as the law made no such provision the tax was therefore invalid. This reversed the previous position of the Court** that an income tax was not a direct tax within the meaning of the Const.i.tution, but that it was an excise. This decision was the subject of much bitter comment which, however, scarcely exceeded in severity the expressions used by members of the Supreme Court who filed dissenting opinions. Justice White was of the opinion that the effect of this judgment was "to overthrow a long and consistent line of decisions and to deny to the legislative department of the Government the possession of a power conceded to it by universal consensus for one hundred years." Justice Harlan declared that it struck "at the very foundation of national authority" and that it gave "to certain kinds of property a position of favoritism and advantage inconsistent with the fundamental principles of our social organization." Justice Brown hoped that "it may not prove the first step towards the submergence of the liberties of the people in a sordid despotism of wealth." Justice Jackson said it was "such as no free and enlightened people can ever possibly sanction or approve." The comments of law journals were also severe, and on the whole, the criticism of legal experts was more outspoken than that of the politicians.

* Pollock vs. Farmers' Loan and Trust Company, 157 U.S. 429.

* * Springer vs. United States, 102 U.S. 586.

Public distrust of legislative procedure in the United States is so great that powers of judicial interference are valued to a degree not usual in any other country. The Democratic platform of 1896 did not venture to go farther in the way of censure than to declare that "it is the duty of Congress to use all the const.i.tutional power which remains after that decision, or which may come from its reversal by the court as it may hereafter be const.i.tuted, so that the burdens of taxation may be equally and impartially laid, to the end that wealth may bear its due proportion of the expenses of the government." Even this suggestion of possible future interference with the court turned out to be a heavy party load in the campaign.