Recollections of Forty Years in the House, Senate and Cabinet Part 62

Meeting at Bellville--Opening Campaign Speech at Wilmington--Talk to Farmers in New York State--Success of the Republican Ticket in Ohio--Blaine Declines to Be a Candidate.

CHAPTER LIV.

CLEVELAND'S EXTRAORDINARY MESSAGE TO CONGRESS.

First Session of the 50th Congress--The President's "Cry of Alarm"

--Troubled by the Excess of Revenues over Expenditures--My Answer to His Doctrines--His Refusal to Apply the Surplus to the Reduction of the Public Debt--The Object in Doing So--My Views Concerning Protection and the Tariff--In Favor of a Tariff Commission--"Mills Bill" the Outcome of the President's Message--Failure of the Bill During the Second Session--My Debates with Senator Beck on the Coinage Act of 1873, etc.--Omission of the Old Silver Dollar--Death of Chief Justice Waite--Immigration of Chinese Laborers--Controversy with Senator Vest--Speech on the Fisheries Question--Difficulties of Annexation with Canada.

CHAPTER LV.

REPUBLICAN NATIONAL CONVENTION OF 1888.

Majority of the Ohio Delegates Agree to Support Me for President-- Cleveland and Thurman Nominated by the Democrats--I Am Indorsed by the State Convention Held at Dayton, April 18-19--My Response to a Toast at the Americus Club, Pittsburg, on Grant--Meeting with Prominent Men in New York--Foraker's Reply to Judge West's Declaration Concerning Blaine--Blaine's Florence Letter to Chairman Jones--His Opinion of My Qualifications for the Honorable Position--Meeting of the Convention in Chicago in June--I Am Nominated by General D.

H. Hastings and Seconded by Governor Foraker--Jealousy Between the Ohio Delegates--Predictions of My Nomination on Monday, June 25-- Defeated by a Corrupt New York Bargain--General Harrison is Nominated --Letters from the President Elect--My Replies--First Speeches of the Campaign--Harrison's Victory--Second Session of the 50th Congress --The President's Cabinet.

CHAPTER LVI.

FOUR AND A HALF MONTHS IN EUROPE.

Our Party Takes Its Departure on the "City of New York" on May 1-- Personnel of the Party--Short Stop in London--Various Cities in Italy Visited--Sight-Seeing in Rome--Journey to Pompeii and Naples --Impressions of the Inhabitants of Southern Italy--An Amusing Incident Growing Out of the Ignorance of Our Courier--Meeting with Mr. Porter, Minister to Rome--Four Days in Florence--Venice Wholly Unlike Any Other City in the World--Favorable Impression of Vienna --Arrival at Paris--Reception by the President of the Republic of France--Return Home--My Opinion Concerning England and Englishmen --Reception at Was.h.i.+ngton--Campaigning Again for Foraker--Ohio Ballot Box Forgery and Its Outcome--Address at Cleveland on "The Congress of American States"--Defeat of Foraker for Governor.

CHAPTER LVII.

HISTORY OF THE "SHERMAN SILVER LAW."

President Harrison's First Annual Message--His Recommendations Regarding the Coinage of Silver and Tariff Revisions--Bill Authorizing the Purchase of $4,500,000 Worth of Silver Bullion Each Month-- Senator Plumb's "Free Silver" Amendment to the House Bill--Subst.i.tute Finally Agreed Upon in Conference--Since Known as the "Sherman Silver Law"--How It Came to Be so Called--Chief Merit of the Law-- Steady Decline of Silver After the Pa.s.sage of the Act--Bill Against Trusts and Combinations--Amendments in Committee--The Bill as Pa.s.sed --Evils of Unlawful Combinations--Death of Representative Wm. D.

Kelley and Ex-Member S. S. c.o.x--Sketch of the Latter--My Views Regarding Immigration and Alien Contract Labor--McKinley Tariff Law--What a Tariff Is--Death of George H. Pendleton--Republican Success in Ohio--Second Session of the 51st Congress--Failure of Senator Stewart's "Free Coinage Bill."

CHAPTER LVIII.

EFFORTS TO CONSTRUCT THE NICARAGUAN Ca.n.a.l.

Early Recognition of the Need of a Ca.n.a.l Across the Isthmus Connecting North and South America--M. de Lesseps Attempts to Build a Water Way at Panama--Feasability of a Route by Lake Nicaragua-- First Attempts in 1825 to Secure Aid from Congress--The Clayton- Bulwer Convention of 1850--Hindrance to the Work Caused by This Treaty--Report of the Committee on Foreign Relations in 1891-- Failure to Secure a Treaty Between the United States and Nicaragua in 1884--Cleveland's Reasons for Withdrawing This Treaty--Incorporation of the Maritime Ca.n.a.l Company of Nicaragua--Inevitable Failure of Their Attempts Unless Aided by the Government--Why We Should Purchase Outright the Concessions of the Maritime Company--Brief Description of the Proposed Ca.n.a.l--My Last Letter from General Sherman--His Death from Pneumonia After a Few Days' Illness--Messages of President Harrison--Resolution--My Commemorative Address Delivered Before the Loyal Legion.

CHAPTER LIX.

THE CAMPAIGN OF 1890-91 IN OHIO.

Public Discussion of My Probable Re-election to the Senate--My Visit to the Ohio Legislature in April, 1891--Reception at the Lincoln League Club--Address to the Members--Appointed by the Republicans as a Delegate to the State Convention at Columbus--Why My Prepared Speech Was Not Delivered--Attack on Me by the Cincinnati "Enquirer"--Text of the Address Printed in the "State Journal"-- Beginning of a Canva.s.s with Governor Foraker as a Compet.i.tor for the Senators.h.i.+p--Att.i.tude of George c.o.x, a Cincinnati Politician, Towards Me--Attempt to Form a "Farmers' Alliance" or People's Party in Ohio--"Seven Financial Conspiracies"--Mrs. Emery's Pamphlet and My Reply to It.

CHAPTER LX.

FREE SILVER AND PROTECTION TO AMERICAN INDUSTRIES.

My Views in 1891 on the Free Coinage of Silver--Letter to an Ohio Newspaper on the Subject--A Problem for the Next Congress to Solve --Views Regarding Protection to American Industries by Tariff Laws --My Deep Interest in This Campaign--Its Importance to the Country at Large--Ohio the Battle Ground of These Financial Questions-- Opening the Campaign in Paulding Late in August--Extracts from My Speech There--Appeal to the Conservative Men of Ohio of Both Parties --Address at the State Fair at Columbus--Review of the History of Tariff Legislation in the United States--Five Republican Principles Pertaining to the Reduction of Taxes--Speeches at Cleveland, Toledo, Cincinnati and Elsewhere--McKinley's Election by Over 21,000 Plurality.

CHAPTER LXI.

ELECTED TO THE UNITED STATES SENATE FOR THE SIXTH TIME.

I Secure the Caucus Nomination for Senator on the First Ballot-- Foraker and Myself Introduced to the Legislature--My Address of Thanks to the Members--Speech of Governor Foraker--My Colleague Given His Seat in the Senate Without Opposition--Message of President Harrison to the 52nd Congress--Morgan's Resolutions and Speech for the Free Coinage of Silver--Opening of the Silver Debate by Mr.

Teller--My Speech on the Question--Defeat of the Bill in the House --Discussion of the Chinese Question--My Opposition to the Conference Report on Mr. Geary's Amended Bill--Adopted by the Senate After a Lengthy Debate--Effect of the Tariff Laws Upon Wages and Prices-- Senator Hale's Resolution--Carlisle's Speech in Opposition to High Prices--My Reply--Resume of My Opinions on the Policy of Protection --Reception by the Ohio Republican a.s.sociation--Refutation of a Newspaper Slander Upon H. M. Daugherty--Newspaper Writers and Correspondents--"Bossism" in Hamilton County.

CHAPTER LXII.

SECOND ELECTION OF GROVER CLEVELAND.

Opposition to General Harrison for the Presidential Nomination--My Belief That He Could Not Be Elected--Preference for McKinley-- Meeting of the National Republican Convention at Minneapolis-- Meeting of Republicans at Was.h.i.+ngton to Ratify the Ticket--Newspaper Comment on My Two Days' Speech in the Senate on the Silver Question --A Claim That I Was Not in Harmony with My Party on the Tariff-- My Reply--Opening Speeches for Harrison and Reid--Publication of My "History of the Republican Party"--First Encounter with a "Kodak"

--Political Addresses in Philadelphia, New York, Cincinnati, Chicago and Milwaukee--Return to Ohio--Defeat of Harrison.

CHAPTER LXIII.

ATTEMPTS TO STOP THE PURCHASE OF SILVER BULLION.

My Determination to Press the Repeal of the Silver Purchasing Clause of the "Sherman Act"--Reply to Criticisms of the Philadelphia "Ledger"--Announcement of the Death of Ex-President Hayes--Tribute to His Memory--Efforts to Secure Authority to the Secretary of the Treasury to Sell Bonds to Maintain the Resumption of United States Notes--The Senate Finally Recedes from the Amendment in Order to Save the Appropriation Bill--Loss of Millions of Dollars to the Government--Cleveland Again Inducted Into Office--His Inaugural Address--Efforts to Secure an Appropriation for the "World's Fair"

--Chicago Raises $1,000,000--Congress Finally Decides to Pay the Exposition $2,500,000 in Silver Coin--I Attend the Dedication of the Ohio Building at the Fair--Address to the Officers and Crew of the Spanish Caravels.

CHAPTER LXIV.

REPEAL OF PART OF THE "SHERMAN ACT" OF 1890.

Congress Convened in Extraordinary Session on August 7, 1893--The President's Apprehension Concerning the Financial Situation--Message from the Executive Shows an Alarming Condition of the National Finances--Attributed to the Purchase and Coinage of Silver--Letter to Joseph H. Walker, a Member of the Conference Committee on the "Sherman Act"--A Bill I Have Never Regretted--Brief History of the Pa.s.sage of the Law of 1893--My Speech in the Senate Well Received --Attacked by the "Silver Senators"--General Debate on the Financial Legislation of the United States--Views of the "Was.h.i.+ngton Post"

on My Speech of October 17--Repeal Accomplished by the Republicans Supporting a Democratic Administration--The Law as Enacted--Those Who Uphold the Free Coinage of Silver--Awkward Position of the Democratic Members--My Efforts in Behalf of McKinley in Ohio--His Election by 81,000 Plurality--Causes of Republican Victories Throughout the Country.

CHAPTER LXV.

Pa.s.sAGE OF THE WILSON TARIFF BILL.

Second Session of the 53rd Congress--Recommendations of the President Concerning a Revision of the Tariff Laws--Bill Reported to the House by the Committee of Ways and Means--Supported by Chairman Wilson and Pa.s.sed--Received in the Senate--Report of the Senate Committee on Finance--Pa.s.ses the Senate with Radical Amendments-- These are Finally Agreed to by the House--The President Refuses to Approve the Bill--Becomes a Law After Ten Days--Defects in the Bill --Not Satisfactory to Either House, the President or the People-- Mistakes of the Secretary of the Treasury--No Power to Sell Bonds or to Borrow Money to Meet Current Deficiencies--Insufficient Revenue to Support the Government--A Remedy That Was Not Adopted-- Gross Injustice of Putting Wool on the Free List--McKinley Law Compared with the Wilson Bill--Sufficient Revenue Furnished by the Former--I Am Criticized for Supporting the President and Secretary.

CHAPTER LXVI.

SENIORITY OF SERVICE IN THE SENATE.

Notified That My Years of Service Exceed Those of Thomas Benton-- Celebration of the Sons of the American Revolution at the Was.h.i.+ngton Monument--My Address to Those Present--Departure for the West with General Miles--Our Arrival at Woodlake, Nebraska--Neither "Wood"

nor "Lake"--Enjoying the Pleasures of Camp Life--Bound for Big Spring, South Dakota--Return via Sioux City, St. Paul and Minneapolis --Marvelous Growth of the "Twin Cities"--Publication of the "Sherman Letters" by General Sherman's Daughter Rachel--First Political Speech of the Campaign at Akron--Republican Victory in the State of Ohio--Return to Was.h.i.+ngton for the Winter of 1894-95--Marriage of Our Adopted Daughter Mary with James Iver McCallum--A Short Session of Congress Devoted Mainly to Appropriations--Conclusion.

CHAPTER x.x.xI.

EFFECT OF THE BLAND BILL ON THE COUNTRY.

An Act Pa.s.sed by the House Providing for the Free Coinage of the Silver Dollar--Mr. Ewing Makes an Attack on Resumption--Fear of Capitalists Regarding Our National Credit--Four Per Cents. Sell Below Par--Suspense and Anxiety Continued Throughout the Year--My First Report as Secretary of the Treasury--Recommendations of a Policy to be Pursued "To Strengthen the Public Credit"--Subst.i.tution of $50,000,000 in Silver Coin for Fractional Currency--Silver as a Medium of Circulation--Its Fluctuation in Value--Importance of Gold as a Standard of Value--Changes in the Market Value of Silver Since 1873.

The silver question was suddenly thrust upon the House of Representatives on the 5th of November, 1877, by a motion, submitted by Mr. Bland, of Missouri, that the rules be suspended so as to enable him to introduce, and the House to pa.s.s, a bill to authorize the free coinage of the standard silver dollar of 412 grains, and to restore its legal tender character. The motion to suspend the rules cut off all amendments and all debate. Several members demanded a hearing. Efforts were made to adjourn, but this was refused. The previous question being ordered and the rules suspended, a single vote would introduce the bill without a reference to a committee, and would pa.s.s it without any power of amendment, without the usual reading at three separate times. The motion was agreed to by a vote of yeas 163, nays 34. So, two-thirds voting in favor thereof, the rules were suspended and the bill was pa.s.sed.

The first section of this bill provided that there shall be coined, at the several mints of the United States, the silver dollar of the weight of 412 grains, troy, of standard silver, as provided in the act of January 18, 1837, on which shall be the devices and superscriptions provided by said act; which coins, together with all silver dollars heretofore coined by the United States, of like weight and fineness, shall be a legal tender at their nominal value for all debts and dues, public and private, except where otherwise provided by contract; and any owner of silver bullion may deposit the same in any United States coinage mint or a.s.say office, to be coined into such dollars for his benefit, upon the same terms and conditions as gold bullion is deposited for coinage under existing law. Section 2 provided for repealing all acts and parts of acts inconsistent with provisions of the act.

Thus this bill, of wide-reaching importance, was introduced and pa.s.sed by the House under the previous question, and a suspension of the rules without debate on the same day of its introduction by a vote of yeas 163, nays 34. It was sent to the Senate and referred to the committee on finance.

On the same day Mr. Ewing moved in the House of Representatives to suspend the rules and adopt the following resolution:

"_Resolved_, That the bill to repeal the third section of the resumption law be made the special order, not to interfere with any appropriation bills, for to-morrow at the expiration of the morning hour, and from day to day thereafter until the following Tuesday at three o'clock, when the previous question shall be ordered on it and on any amendments then pending, all amendments meanwhile to be in order, provided the time shall be extended, if necessary, so as to allow five days after the morning hour for the consideration of said bill and amendments."

This resolution pa.s.sed by a vote of yeas 143, nays 47.

In consequence of this action of the House, the syndicate declined to offer the bonds, and no further calls for six per cent. bonds were therefore made.

On the 7th of November August Belmont wrote me from New York as follows;

"I fear that the threatening position of the silver question will check completely any demand for the four per cent. bonds here and in Europe. The damage which the pa.s.sage of this measure will do to our public credit abroad _cannot be over estimated_. To remonetize silver upon the old standard, and make it a legal tender for all private and public debts, will be considered by the whole civilized world as an act of repudiation on the part of the federal government, and cast a stain upon our national credit, which has. .h.i.therto stood as high and bright as that of any government in the world.

"It is just as much repudiation for the federal government to compel its bondholders to accept the payment of their interest in silver, which is at a discount of ten per cent., against the gold which the government received for the bonds, as it would be if Congress decreed that all the bonds of the United States should not bear a higher interest than two per cent. per annum. To do such a thing now as is contemplated by the Bland silver bill, when the federal finances are in a flouris.h.i.+ng condition, when the premium of gold has been reduced two and a half to three per cent., and when our funded debt sells equal to that of any other public security in the world, is actually as if a man of wealth and position, who had by a life-long course of strict honesty acquired the well-earned confidence and respect of his fellow-citizens and of the outer world, should in the midst of his affluence, and without the palliating excuse of any temptation of want or necessity, commit open theft.

"I am sure I do not over estimate the damaging effect which the pa.s.sage of the bill must have upon American credit. All my letters from abroad, and conversations with people familiar with the English and continental money markets, confirm my convictions on that point.

When you look back and find in the archives of your department the proud records of a nation's faith kept inviolate with a most punctilious and chivalrous spirit during a century, amidst all the trials of foreign and civil war which strained the resources of our country to the very verge of ruin, the task before you is certainly a difficult and hara.s.sing one; but while the path of duty is often narrow and difficult, it is always straight and so well defined that it can never be mistaken.

"Sound financial policy and love of our country's fair name alike demand from those to whom the administration of its affairs have been intrusted the most uncompromising hostility to the _blind_ and _dishonest_ frenzy which has taken hold of Congress, and I sincerely hope that you will be seconded in the task before you by the hearty support of the President and your colleagues."

On the 9th of November I was advised that the four per cent. bonds were selling at 99 and interest, in a small way only. The syndicate had bought in the market about $750,000 of these bonds at less than par in order to prevent a further depreciation. On the same day I was informed by August Belmont & Co., as follows:

"After conference and careful consideration of the whole subject, it is the conclusion of all the a.s.sociates, in Europe and here, that it is injudicious to undertake further negotiations of the fours, during the pendency of the legislation proposing to make silver a full legal tender, as the discussion has checked dealings in the bonds by the public. To make a call in the face of a market quotation (to-day 98 and interest) below the price fixed by law would not convince the public that new business had been undertaken at a loss, but that the call was connected with business previously done.

"Further than this, we are satisfied that, holding the views expressed in your letters mentioned, the President and all his cabinet will agree with us that it would be wrong for us to ask for another call at this juncture, as such action would be held by those advocating the legislation in favor of silver as proving that such legislation in our opinion was not prejudicial to the national credit and the refunding of our national debt."