94 91 31 10 tested with Haves the honors of the Presi- | Ballots. 10 1 1 1 McCrary, 1 Garfield, BALLOTS. Ballots. 1 2 3 4 5 6 281 95 Washburne, 30 32 31 Windom, 10 10 31 31 1 1 10 10 1 Ballots, Grant, 7 8 9 305 306 308 281 284 282 19 20 305 308 279 276 93 31 Sherman, 95 35 10 10 1 1 1 1 32 10 1 1 13 14 15 305 305 309 285 285 281 89 89 31 31 35 10 The Campaign of 1880. 94 31 Edmunds, 10 2 The Republican National Convention met June 5th, 1880, at Chicago, in the Exposition building, capable of seating 20,000 people. The excitement in the ranks of the Republicans was very high, because of the candidacy of General Grant for what Hartranft, was popularly called a "third term," though not a third consecutive term. His Ballots, three powerful Senatorial friends, in the Grant, face of bitter protests, had secured the in- Blaine, structions of their respective State Conven- Sherman, tions for Grant. Conkling had done this in New York, Cameron in Pennsylvania, Logan in Illinois, but in each of the three States the opposition was so impressive that no serious attempts were made to substitute other delegates for those which had previously been selected by their Congresŝional districts. As a result there was a large minority in the delegations of these Whole number of votes..... States opposed to the nomination of Gene- Necessary to a choice.... ral Grant, and the votes of them could only | Grant... be controlled by the enforcement of the Blaine unit rule. Senator Hoar of Massachusetts, Sherman the President of the Convention, decided against its enforcement, and as a result all of the delegates were free to vote upon either State or District instructions, or as they chose. The Convention was in session three days. We present herewith the 90 31 32 10 1 36 10 Washburne. 16 306 283 88 88 31 21 305 276 96 31 35 10 1 1 25 26 27 302 303 306 281 280 277 93 93 31 31 35 36 10 10 2 2 10 11 12 305 305 304 282 281 283 91 62 30 22 10 2 31 36 10 93 31 31 32 33 10 10 2 1 1 2 1 17 18 303 305 284 283 90 92 1 31 31 34 35 10 10 22 23 24 305 304 305 275 274 279 1 95 98 93 31 31 31 35 36 35 10 10 10 2 2 ballot until the 36th and final one, which There was little change from the 27th resulted as follows: ..755 ..378 ..306 42 3 5 ..399 As shown, General James A. Garfield, of Ohio, was nominated on the 36th ballot, the forces of General Grant alone remaining solid. The result was due to a sudden union of the forces of Blaine and Sherman, it is believed with the full consent of both, for both employed the same wire leading from the same room in Washington in 281 telegraphing to their friends at Chicago. 95 The object was to defeat Grant. After 31 Garfield's nomination there was a tempo31 rary adjournment, during which the 10 friends of the nominee consulted Conkling 2 and his leading friends, and the result was the selection of General Chester A. Arthur 305 of New York, for Vice-President. The object of this selection was to carry New York, the great State which was then almost universally believed to hold the key to the Presidential position. issue, and made open war on Watterson's plank in the Democratic platform-" a tariff for revenue only." Iowa, Ohio, and Indiana, all elected the Republican State tickets with good margins; "West Virginia The Democratic National Convention went Democratic, but the result was, notmet at Cincinnati, June 22d. Tilden had withstanding this, reasonably assured to up to the holding of the Pennsylvania the Republicans. The Democrats, howState Convention been one of the most ever, feeling the strong personal popularity prominent candidates. In this Convention of their leading candidate, persisted with there was a bitter struggle between the high courage to the end. In November Wallace and Randall factions, the former all of the Southern States, with New Jerfavoring Hancock, the latter Tilden. Wal-sey, California,* and Nevada in the North, lace, after a contest far sharper than he went Democratic; all of the others Reexpected, won, and bound the delegation publican. The Greenbackers held only a by the unit rule. When the National balance of power, which they could not Convention met, John Kelly, the Tam- exercise, in California, Indiana, and New many leader of New York, was again Jersey. The electoral vote of Garfield and there, as at St. Louis four years before, to Arthur was 214, that of Hancock and Engoppose Tilden, but the latter sent a letter lish 155. The popular vote was Republidisclaiming that he was a candidate, and can, 4,442,950; Democratic, 4,442,035; yet really inviting a nomination on the is- Greenback or National, 306,867; scattersue of "the fraudulent counting in of ing, 12,576. The Congressional elections Hayes." There were but two ballots, as in the same canvass gave the Republicans follows: 147 members; the Democrats, 136; Greenbackers, 9; Independents, 1. FIRST BALLOT. P Hancock......... 171 Hancock..... 1 1 1 Fifteen States elected Governors, nine of them Republicans and six Democrats. General Garfield, November 10, sent to Governor Foster, of Ohio, his resignation a Senator, and John Sherman, the Secretary of the Treasury, was in the winter following elected as his successor. The third session of the Forty-sixth The 1 Congress was begun December 6. President's Message was read in both Houses. Among its recommendations to Congress were the following: To create the office of Captain-General of the Army for General Grant; to defend the inviolability of the constitutional amendments; to promote free popular education by grants of public lands and appropriations from the United States Treasury; to appropriate $25,000 annually for the expenses of a Commission to be appointed by the President to devise a just, uniform, and efficient system of competitive examinations, and to supervise the application of the same throughout the entire civil service of the government; to pass a law defining the relations of Congressmen to In the canvass which followed, the Re-appointments to office, so as to end Conpublicans were aided by such orators as gressional encroachment upon the appointConkling, Blaine, Grant, Logan, Curtis, ing power; to repeal the Tenure-of-office Boutwell, while the Camerons, father and Act, and pass a law protecting officeson, visited the October States of Ohio and holders in resistance to political assessIndiana, as it was believed that these ments; to abolish the present system of would determine the result, Maine having executive and judicial government in in September very unexpectedly defeated Utah, and substitute for it a government the Republican State ticket by a small ma- by a commission to be appointed by the jority. The Democrats were aided by President and confirmed by the Senate, or, Bayard, Voorhees, Randall, Wallace, Hill, in case the present government is conHampton, Lamar, and hosts of their best tinued, to withhold from all who practice orators. Every issue was recalled, but for the first time in the history of the Republicans of the West, they accepted the tariff Randall ..... SECOND BALLOT. 705 1 2 30 6 5 Thus General Winfield S. Hancock, of New York, was nominated on the second ballot. Wm. H. English, of Indiana, was nominated for Vice-President. The National Greenback-Labor Convention, held at Chicago, June 11, nominated General J. B. Weaver, of Iowa, for President, and General E. J. Chambers, of Texas, for Vice-President. as * One Democratic elector was defeated, being cut by over 500 voters on a local issue. polygamy the right to vote, hold office, and I amendment by Senator Morgan provides sit on juries; to repeal the act authorizing for the instruction of women in the State the coinage of the silver dollar of 412 agricultural colleges in such branches of grains, and to authorize the coinage of a technical and industrial education as are new silver dollar equal in value as bullion suited to their sex. No action has yet with the gold dollar; to take favorable ac-been taken by the House. tion on the bill providing for the allotment of lands on the different reservations. On the 9th of February the electoral votes were counted by the Vice-President in the presence of both Houses, and Garfield and Arthur were declared elected President and Vice-President of the United States. There was no trouble as to the count, and the result previously stated was formally announced. Two treaties between this country and China were signed at Pekin, November 17, 1881, one of commerce, and the other securing to the United States the control and regulation of the Chinese immigration. President Hayes, February 1, 1881, sent a message to Congress sustaining in the main the findings of the Ponca Indian Commission, and approving its recommendation that they remain on their reservation in Indian Territory. The President suggested that the general Indian policy for the future should embrace the following ideas: First, the Indians should be prepare 1 for citizenship by giving to their young of both sexes that industrial and general education which is requisite to enable them to be self-supporting and capable of self-protection in civilized communities; second, lands should be allotted to the Indians in severalty, inalienable prejudices. The Republicans in Congress for a certain period; third, the Indians as a rule contended that the debt could should have a fair compensation for their not be surely funded at 3 per cent.; that lands not required for individual allot-3 was a safer figure, and to go below this ments, the amount to be invested, with might render the bill of no effect. The suitable safeguards, for their benefit; same views were entertained by President fourth, with these prerequisites secured, Hayes and Secretary Sherman. The Demthe Indians should be made citizens, and ocrats insisted on 3 per cent., until the invested with the rights and charged with veto, when the general desire to fund at the responsibilities of citizenship. more favorable rates broke party lines, and a 3 per cent. funding bill was passed, with the feature objectionable to the National Banks omitted. The Three Per Cent. Funding Bill. The 3 per cent. Funding Bill passed the House March 2, and was on the following day vetoed by President Hayes on the ground that it dealt unjustly with the National Banks in compelling them to accept and employ this security for their circulation in lieu of the old bonds. This feature of the bill caused several of the Banks to surrender their circulation, conduct which for a time excited strong political The Senate, February 4, passed Mr. Morgan's concurrent resolution declaring that the President of the Senate is not invested by the Constitution of the United States with the right to count the votes of electors for President and Vice-President of the United States, so as to determine what votes shall be received and counted, or what votes shall be rejected. An amendment was added declaring in effect shape :— that it is the duty of Congress to pass a Be it enacted, &c. That the Secretary of law at once providing for the orderly the Treasury is hereby authorized to counting of the electoral vote. The House receive at the Treasury and at the office of concurred February 5, but no action by any Assistant Treasurer of the United bill or otherwise has since been taken. States and at any postal money order of Senator Pendleton, of Ohio, December fice, lawful money of the United States to 15, 1881, introduced a bill to regulate the the amount of fifty dollars or any multiple civil service and to promote the efficiency of that sum or any bonds of the United thereof, and also a bill to prohibit Federal States, bearing three and a-half per cent. officers, claimants, and contractors from interest, which are hereby declared valid, making or receiving assessments or contri-and to issue in exchange therefore an butions for political purposes. equal amount of registered or coupon The Burnside Educational Bill_passed bonds of the United States, of the denomthe Senate December 17, 1881. It pro-ination of fifty, one hundred, five hundred, vides that the proceeds of the sale of pub- one thousand and ten thousand dollars, of lic land and the earnings of the Patent such form as he may prescribe, bearing inOffice shall be funded at four per cent., terest at the rate three per centum per and the interest divided among the States annum, payable either quarterly or semiin proportion to their illiteracy. An annually, at the Treasury of the United The Republicans were mistaken in their view, as the result proved. The loan was floated so easily, that in the session of 1882 Secretary Sherman, now a Senator, himself introduced a 3 per cent. bill, which passed the Senate Feb. 2d, 1882, in this States. Such bonds shall be exempt from | aided the higher rates paid for commodiall taxation by or under state authority, ties and labor. The funding operations and be payable at the pleasure of the since the war have dissipated this belief, United States. "Provided, That the bonds and so shaken political theories that no herein authorized shall not be called in and party can now claim a monopoly of sound paid so long as any bonds of the United financial doctrine. So high is the credit States heretofore issued bearing a higher of the government, and so abundant are rate of interest than three per centum, and the resources of our people after a comwhich shall be redeemable at the pleasure paratively short period of general prosperof the United States, shall be outstanding ity, that they seem to have plenty of surand uncalled. The last of the said bonds plus funds with which to aid any funding originally issued and their substitutes operation, however low the rate of interest, under this act shall be first called in and if the government-State or Nationalthis order of payment shall be followed shows a willingness to pay. As late as until all shall have been paid." February, 1882, Pennsylvania funded seven millions of her indebtedness at 3, 34 and 4 per cent., the two larger sums commanding premiums sufficient to cause the entire debt to be floated at a little more than 3 per cent., and thus floating commands an additional premium in the money exchanges. The money deposited under this act shall be promptly applied solely to the redemption of the bonds of the United States bearing three and a-half per centum interest, and the aggregate amount of deposits made and bonds issued under this act shall not exceed the sum of two hundred million dollars. The amount of law. ful money so received on deposit, as aforesaid, shall nɔt exceed, at any time, the sum of twenty-five million dollars. Before any deposits are received at any postal money office under this act, the postmaster at such office shall file with the Secretary of the Treasury his bond, with satisfactory security, conditioned that he will promptly transmit to the Treasury of the United States the money received by him in conformity with regulations to be prescribed by such secretary; and the deposit with any postmaster shall not at any time, exceed the amount of hiç bɔnd. SECTION 2. Any national banking association now organized or hereafter organized desiring to withdraw its circulating notes upon a deposit of lawful money with the Treasury of the United States as provided in section 4 of the Act of June 20, 1874, entitled "An act fixing the amount of United States notes providing for a redistribution of National bank currency and for other purposes," shall be required to give thirty days' notice to the Controller of the Currency of its intention to deposit lawful money and withdraw its circulating notes; provided that not more than five million of dollars of lawful money shall be deposited during any calender month for this purpose; and provided further, that the provisions of this section shall not apply to bonds called for redemption by the Secretary of the Trea sury. SECTION 3. That nothing in this act shall be so construed as to authorize an increase of the public debt. In the past few years opinions on the rates of interest have undergone wonderful changes. Many supposed-indeed it was a "standard" argument-that rates must ever be higher in new than old countries, that these higher rates comported with and History of the National Loans. In Book VII of this volume devoted to Tabulated History, we try to give the reader at a glance some idea of the history of our National finances. An attempt to go into details would of itself fill volumes, for no class of legislation has taken so much time or caused such a diversity of opinion Yet it is shown, by an admirable review of the loans of the United States, by Rafael A. Bayley, of the Treasury Department published in the February (1882) number of the International Review, that the "financial system of the government of the United States has continued the same from its organization to the present time." Mr. Bayley has completed a history of our National Loans, which will be published in the Census volume on "Public Debts." From his article in the Review we condense the leading facts bearing on the his tory of our national loans. The financial system of the United States, in all its main features, is simple and well defined, and its very simplicity may probably be assigned as the reason why it ap pears so difficult of comprehe ision by many people of intelligence and education. It is based upon the principles laid down by Alexander Hamilton, and the practical adoption of the fundamental maxim which he regarded as the true secret for rendering public credit immortal, viz., "that the creation of the debt should always be accompanied with the means of extinguishment." A faithful adherence to this sys tem by his successors has stood the test of nearly a century, with the nation at peace or at war, in prosperity or adversity; so that, with all the change that progress has entailed upon the people of the age, no valid grounds exist for any change here. During the colonial period, and under the confederation, the financial operations | Government of Spain for the same purof the Government were based on the law pose, and through the same agency. The of necessity, and depended for success balance of the French subsidy was paid upon the patriotism of the people, the co- through Benjamin Franklin. In 1777 & operation of the several States, and the loan of 1,000,000 livres was obtained from assistance of foreign powers friendly to our the Farmers General of France' under a contract for its repayment in American tobacco at a stipulated price. From 1778 to 1783, additional loans were obtained from the French King, amounting to 34,000,000 livres. From 1782 to 1789, loans to the amount of 9,000,000 guilders were negotiated in Holland, through the agency of John Adams, then the American Minis ter to the Hague. 64 cause. "It was the willingness of the people to receive the various kinds of paper money i-sued under authority of the Continental Congress, and used in payment for services and supplies, together with the issue of similar obligations by the different States, for the redemption of which they assumed the responsibi ity; aided by the munificent gift of money from Louis XVI. of France, The indebtedness of the United States followed by loans for a large amount from at the organization of the present form of both France and Holland, that made vic-government (including interest to Decemtory possible, and laid the foundations for ber 31, 1790) may be briefly stated, as folthe republic of to-day, with its credit un-lows: impaired, and with securities commanding a ready sale at a high premium in all the principal markets of the world. <. Authorities vary as to the amount of paper money issued and the cost of the war for independence. On the 1st of September, 1779, Congress resolved that it would on no account whatever emit more bills of credit than to make the whole amount of such bill- two hundred millions of dollars.' Mr. Jefferson estimates the value of this sum at the time of its emission at $36,367,719.83 in specie, and says; 'If we estimate at the same value the like sum of $200,000,000 supposed to have been emitted by the States, and reckon the Federal debt, foreign and domestic, at about $43,000,000, and the State debt at $25.000,000, it will form an amount of $140,000,000, the total sum which the war cost the United States. It continued eight years, from the battle of Lexington to the cessation of hostilities in America. The annual expense was, therefore, equal to about $17,500,000 in specie.' "The first substantial aid rendered the colonies by any foreign power was a free gift of money and military supplies from Louis XVI. of France, amounting in the aggregate to 10,000,000 livres, equivalent to $1,815,000. "These supplies were not furnished openly, for the reason that France was not in a position to commence a war with Great Britain. The celebrated Caron de Beaumarchais was employed as a secret agent, between whom and Silas Deane, as the political and commercial agent of the United States, a contract was entered into whereby the former agreed to furnish a large amount of military supplies from the arsenals of France, and to receive American produce in payment therefor "Under this arrangement supplies were furnished by the French Government to the amount of 2,000,000 livres. An additional 1,000,000 was contributed by the Foreign debt. Domestic debt. Arrears outstanding (since $11,883,315.96 40,256,802.45 198,208.10 450,395.52 Total.......... $52,788,722.03 To this should be added the individual debts of the several States, the precise amount and character of which was then unknown, but estimated by Hamilton at that time to aggregate about $25,000,000. "The payment of this vast indebtedness was virtually guarantied by the provisions of Article VI. of the Constitution, which says: 'All debts contracted, and engagements entered into, before the adoption of this Constitution shall be as valid against the United States under this Constitution as under the confederation.' On the 21st of September, 1789, the House of Representatives adopted the following resolutions: Resolved, That this House consider an adequate provision for the support of the public credit as a matter of high import ance to the national honor and prosperity. Resolved, That the Secretary of the Treasury be directed to prepare a plan for that purpose, and to report the same to this House at its next meeting. "In reply thereto Hamilton submitted his report on the 9th of January, 1790, in which he gave many reasons for assuming the debts of the old Government, and of the several States, and furnished a plan for supporting the public credit. His recommendations were adopted, and embodied in the act making provision for the payment of the debt of the United States, approved August 4, 1790. This act authorized a loan of $12,000,000, to be applied to the payment of the foreign debt, principal and interest; a loan equal to the full amount of the domestic debt, payable in certificates issued for its |