compound interest notes, fractional cur- these two acts, 6 per cent. bonds to the rency and coin certificates, together with a amount of $958,483,550 have been issued to large amount of bonds issued in order to date. These bonds were disposed of at an raise the money necessary to pay for mili- aggregate premium of $21,522,074, and untary supplies, and other forms of indebted- der the acts of July 14, 1870, and January ness growing out of the war. The rebel- 20, 1871, the same bonds to the amount of lion was practically at an end in May, $725,582,400 have been refunded into other 1865, yet the large amount of money re-bonds bearing a lower rate of interest. The quired for immediate use in the payment success of these several loans was remarkaand disbandment of our enormous armies ble, every exertion being used to provide for necessitated the still further negotiation of their general distribution among the people. loans under the several acts of Congress "In 1867 the first issue of 6 per cent. then in force, and it was not until after the bonds, known as five-twenties, authorized 31st of August, 1865, that our national by the act of Feb. 25, 1862, became redebt began to decrease. At that time the deemable, and the question of refunding total indebtedness, exclusive of the "old them and other issues at a lower rate of infunded and unfunded debt" of the Revo-terest had been discussed by the Secretary lution, and of cash in the Treasury, of the Treasury in his annual reports, but amounted to $2,844,646,626.56. The course of our financial legislation since that date has been constantly toward a reduction of the interest, as well as the principal of the public debt. the agitation of the question as to the kinds of money in which the various obligations of the Government should be paid, had so excited the apprehension of investors as to prevent the execution of any refunding scheme. "The act to strengthen the public eredit was passed March 18, 1869, and its effect was such as secured to the public the strongest assurances that the interest and principal of the public debt outstanding at that time would be paid in coin, according to the terms of the bonds issued, without any abatement. "By an act approved March 3, 1865, a loan of $600,000,000 was authorized upon similar terms as had been granted for previous loans, with the exception that nothing authorized by this act should be made a legal tender, or be issued in smaller denominations than fifty dollars. The rate of interest was limited to 6 per cent. in coin, or 7.3 per cent. in currency, the bonds issued to be redeemable in not less than "On the 12th of January, 1870, a bill five, nor more than forty, years. Authority authorizing the refunding and consolidation was also given for the conversion of Trea- of the national debt was introduced in the sury notes or other interest-bearing obliga- Senate, and extensively debated in both tions into bonds of this loan. An amend- Houses for several months, during which ment to this act was passed April 12, 1866, the financial system pursued by the Goauthorizing the Secretary of the Treasury, vernment during the war was freely reat his discretion, to receive any Treasury viewed. The adoption of the proposed notes or other obligations issued under any measure resulted in an entire revolution of act of Congress, whether bearing interest the refunding system, under which the or not, in exchange for any description of public debt of the United States at that bonds authorized by the original act; and time was provided for, by the transmission also to dispose of any such bonds, either in of a large amount of debt to a succeeding the United States or elsewhere, to such an generation. The effect of this attempt at amount, in such manner, and at such rates refunding the major portion of the public as he might deem advisable, for lawful debt was far more successful than any simoney, Treasury notes, certificates of in-milar effort on the part of any Government, debtedness, certificates of deposit, or other so far as known. representatives of value, which had been or The act authorizing refunding certifimight be issued under any act of Congress; cates convertible into 4 per cent. bonds, the proceeds to be used only for retiring approved February 26, 1879, was merely Treasury notes or other national obligations, intended for the benefit of parties of limitprovided the public debt was not increased ed means, and was simply a continuation thereby. As this was the first important of the refunding scheme authorized by measure presented to Congress since the previous legislation. close of the war tending to place our secu- "The period covered precludes any atrities upon a firm basis, the action of Con- tempt toward reviewing the operation by gress in relation to it was looked forward which the immediate predecessor of the to with a great deal of interest. The dis- present Secretary reduced the interest on cussion took a wide range, in which the some six hundred millions of 5 and 6 per whole financial administration of the Go- cent. bonds to 3 per cent. It is safe to say, vernment during the war was reviewed at however, that under the administration of length. After a long and exciting debate the present Secretary there will be no de the bill finally passed, and was approved by viation from the original law laid down by the President. Under the authority of Hamilton. James A. Garfield. James A. Garfield and Chester A. Arthur were publicly inaugurated President and Vice President of the United States March 4, 1881. President Garfield in his inaugural address promised full and equal protection of the Constitution and the laws for the negro, advocated universal education as a safeguard of suffrage, and recommended such an adjustment of our monetary system "that the purchasing power of every coined dollar will be exactly equal to its debtpaying power in all the markets of the world. The national debt should be refunded at a lower rate of interest, without compelling the withdrawal of the National Bank notes, polygamy should be prohibited, and civil service regulated by law. of Senator Conkling to five important places, and these protests were heeded by the President. With a view to meet them, and, doubtless, to quiet the spirit of faction rapidly developing between the Grant and anti-Grant elements of the party in New York, the name of Judge Robertson was sent in for the Collectorship. He had battled against the unit rule at Chicago, disavowed the instructions of his State Convention to vote for Grant, and led the Blaine delegates from that State while Blaine was in the field, and when withdrawn went to Garfield. Senator Conkling now sought to confirm his friends, and hold back his enemy from confirmation; but these tactics induced Garfield to withdraw the nomination of Conkling's friends, and in this way Judge Robertson's name was alone presented for a time. Against this An extra session of the Senate was opened March 4. On the 5th, the follow-course Vice-President Arthur and Senators ing cabinet nominations were made and Conkling and Platt remonstrated in a letconfirmed: Secretary of State, James G. ter to the President, but he remained firm. Blaine, of Maine; Secretary of the Treas- Senator Conkling, under the plea of "the ury, William Windom, of Minnesota; privilege of the Senate," a courtesy and Secretary of the Navy, William H. Hunt, custom which leaves to the Senators of a of Louisiana; Secretary of War, Robert State the right to say who shall be conT. Lincoln, of Illinois; Attorney General, firmed or rejected from their respective Wayne MacVeagh, of Pennsylvania; Post-States if of the same party-now sought to master General, Thomas L. James, of New defeat Robertson. In this battle he had York; Secretary of the Interior, Samuel J. Kirkwood, of Iowa. In this extra session of the Senate Vice President Arthur had to employ the casting vote on all questions where the parties divided, and he invariably cast it on the side of the Republicans. The evenness of the parties caused a dead-lock on the question of organization, for when David Davis, of Illinois, voted with the Democrats, the Republicans had not enough even with the Vice President, and he was not, therefore, called upon to decide a question of that kind. The Republicans desired new and Republican officers; the Democrats desired to retain the old and Democratic ones. Republican Factions. arrayed against him the influence of his great rival, Mr. Blaine, and it is presumed the whole power of the administration. He lost, and the morning following the secret vote, May 17th, 1881, his own and the resignation of Senator Platt were read. These resignations caused great excitement throughout the entire country. They were prepared without consultation with any one-even Vice-President Arthur, the intimate friend of both, not knowing anything of the movement until the letters were opened at the chair where he presided. Logan and Cameron-Conkling's colleagues in the great Chicago battlewere equally unadvised. The resignations were forwarded to Gov. Cornell, of New York, who, by all permissible delays, sought to have them reconsidered and withdrawn, but both Senators were firm. The Senate confirmed Judge Robertson for Collector, and General Merritt as Consul-General at London, May 18th, President Garfield having wisely renewed the Conkling list of appointees, most of whom declined under the changed condition of affairs. President Garfield, March 23d, sent in a large number of nominations, among which was that of William H. Robertson, the leader of the Blaine wing of the Republican party in New York, to be Collector of Customs. He had previously sent in five names for prominent places in New York, at the suggestion of Senator Conkling, who These events more widely separated the had been invited by President Garfield to factions in New York-one wing calling name his friends. At this interview it was itself "Stalwart," the other "Half-Breed," stated that Garfield casually intimated that a term of contempt flung at the Indepenhe would make no immediate change in dents by Conkling. Elections must follow the New York Collectorship, and both fac- to fill the vacancies, the New York Legistions seemed satisfied to allow Gen'l Edwin | lature being in session. These vacancies A. Merritt to retain that place for a time gave the Democrats for the time control of at least. There were loud protests, however, the United States Senate, but they thought at the first and early selection of the friends it unwise to pursue an advantage which would compel them to show their hands | ples are plain: Van Buren's, Tyler's, Fill for or against one or other of the opposing Republican factions. The extra session of the Senate adjourned May 20th. more's, Buchanan's, and Hayes'. The latter's indecision was more excusable than that of any of his predecessors. The inThe New York Legislature began ballot- exorable firmness of Grant caused the most ing for successors to Senators Conkling and bitter partisan assaults, and despite all his Platt on the 31st of May. The majority of efforts to sustain the "carpet-bag governthe Republicans (Independents or "Half-ments" of the South, they became unpopubreeds") supported Chauncey M. Depew | lar and were rapidly supplanted. As they as the successor of Platt for the long term, disappeared, Democratic representation and William A. Wheeler as the successor from the South increased, and this increase of Conkling for the short term, a few sup- continued during the administration of porting Cornell. The minority (Stalwarts) Hayes-the greatest gains being at times renominated Messrs. Conkling and Platt. when he showed the greatest desire to conThe Democrats nominated Francis Kernan ciliate the South. Yet his administration for the long term, and John C. Jacobs for did the party good, in this, that while at the short term; and, on his withdrawal, first dividing, it finally cemented through Clarkson N. Potter. The contest lasted the conviction that experiments of that until July 22, and resulted in a compro-kind with a proud Southern people were mise on Warner A. Miller as Platt's suc- as a rule unavailing. The re-opening of cessor, and Elbridge G. Lapham as Conk- the avenues of trade and other natural ling's successor. In Book VII., our Tabu- causes, apparently uncultivated, have aclated History of Politics, we give a correct complished in this direction much more table of the ballots. These show at a sin- than any political effort. gle glance the earnestness and length of the contest. In Pennsylvania a successor to U. S. Senator Wm. A. Wallace was to be chosen. Henry W. Oliver, Jr., received the nomination of the Republican caucus, the friends of Galusha A. Grow refusing to enter after a count had been made, and declaring in a written paper that they would not participate in any caucus, and would independently manifest their choice in the Legislature. The following is the first vote in joint Convention · OLIVER. WALLACE. Senate The factious feelings engendered thereby were carried into the Fall nominations for the Legislature, and as a result the Democrats obtained control, which in part they subsequently lost by the refusal of the Tammany Democrats to support their nominees for presiding officers. This Democratic division caused a long and tiresome deadlock in the Legislature of New York. It was broken in the House by a promise on the part of the Democratic candidate for Speaker to favor the Tammany men with a just distribution of the committees a promise which was not satisfactorily carried out, and as a result the Tammany forces of the Senate_joined hands with the Republicans. The Republican State ticket would also have been lost in the Fall of 1881, but for the interposition of President Arthur, who quickly succeeded in uniting the warring factions. This work was so well done, that all save Senate.. one name on the ticket (Gen'l Husted) House........ succeeded. GROW. Senate..... Total...... 77 93 Total............. 56 Total............. 1 Total............. 1 1 Total...... 1 Total............. 1 BAIRD. Whole number of votes cast, 248; necessary to a choice, 125. The same factious spirit was manifested in Pennsylvania in the election of U. S. Senator in the winter of 1881, the two wings Senate.. taking the names of "Regulars" and "In-House................. dependents." The division occurred before the New York battle, and it is traceable not alone to the bitter nominating contest at Chicago, but to the administration of President Hayes and the experiment of civil service reform. Administrations which are not decided and firm upon political issues, invariably divide their parties, and while these divisions are not always to be deplored, and sometimes lead Henry W. Oliver, jr., of Allegheny to good results, the fact that undecided county, was nominated on the third ballot, administrations divide the parties which receiving 79 of the 95 votes present. Unthey represent, ever remains. The exam-der the rules of all parties known to the On the 17th of January the two factions issued opposing addresses. From these we quote the leading ideas, which divided the factions. The "Regulars" said: r cities, her prosperous communities, her vast material wealth and diversified industries and resources, but that in the wisdom, sagacity and statesmanship of her representative she shall occupy a corresponding rank and influence. To meet this public expectation and demand we are 이 and have at all times been willing to subordinate our personal preferences, all local considerations and factional differences, and unite with our colleagues in the selection of a candidate in whom are combined at least some of these important and essential qualifications. It was only when it became apparent that the party caucus was to be used to defeat this popular desire and to coerce a nomination which is conspicuously lacking in the very essentials which were demanded, that we determined to absent ourselves from it, * * * * present or past history of our country, a majority of those participating should have been sufficient; but such was the desire for party harmony and for absolute fairness, that a majority of all the Republican members of the Senate and House was required to nominate. The effect of this was to give those remaining out a negative voice in the proceedings, the extent of any privilege given them in regular legislative sessions by the Constitution. In no other caucus or convention has the minority ever found such high consideration, and we believe there remains no just cause of complaint against the result. Even captious faultfinding can find no place upon which to hang a sensible objection. Mr. Oliver was, therefore, fairly nominated by the only body to which is delegated the power of nomination and by methods which were more than just, which, from every stand- Second, Having declined to enter the point, must be regarded as generous; and caucus, we adhere to our determination to in view of these things, how can we, your defeat, if possible, its nominee, but only by Senators and Representatives, in fairness the election of a citizen of unquestioned withhold our support from him in open fidelity to the principles of the Republisessions; rather how can we ever abandon can party. In declaring our independency a claim established by the rules regulating from the caucus domination we do not the government of all parties, accepted by forget our allegiance to the party whose all as just, and which are in exact harmony chosen representatives we are. The only with that fundamental principle of our result of our policy is the transfer of the Government which proclaims the right of contest from the caucus to the joint conthe majority to rule? To do otherwise is vention of the two houses. There will be to confess the injustice and the failure of afforded an opportunity for the expression that principle-something we are not pre- of individual preferences and honorable pared to do. It would blot the titles to rivalry for an honorable distinction. If our own positions. There is not a Senator the choice shall fall upon one not of apor member who does not owe his nomina-proved loyalty and merit, the fault will not tion and election to the same great principle. To profit by its acceptance in our own cases and to deny it to Mr. Oliver would be an exhibition of selfishness too flagrant for our taste. To acknowledge the right to revolt when no unfairness can be truthfully alleged and when more than a majority have in the interest of harmony been required to govern, would be a travesty upon every American notion and upon that sense of manliness which yields when fairly beaten.” The "Independent" address said: First. We recognize a public sentiment which demands that in the selection of a United States Senator we have regard to that dignity of the office to be filled, its important duties and functions, and the qualifications of the individual with reference thereto. This sentiment is, we understand, that there are other and higher qualifications for this distinguished position than business experience and success, and reckons among these the accomplishments of the scholar, the acquirements of the student, the mature wisdom of experience and a reasonable familiarity with public affairs. It desires that Pennsylvania shall be distinguished among her sister Commonwealths, not only by her populous be ours. After a long contest both of the leading candidates withdrew, and quickly the Regulars substituted General James A. Beaver, the Independent Congressman, Thomas M. Bayne. On these names the dead-lock remained unbroken. Without material change the balloting continued till February 17th, when both Republican factions agreed to appoint conference committees of twelve each, with a view to selecting by a three-fourths vote a compromise candidate. The following were the respective committees: For the Independents: Senators Davis, Bradford; Lee, Venango; Stewart, Franklin; Lawrence, Washington; Representatives Wolfe, Union; Silverthorne, Erie; Mapes, Venango; McKee, Philadelphia; Slack, Allegheny; Stubs, Chester; Niles, Tioga; and Derickson, Crawford. For the Regulars: Senators Greer, Butler; Herr, Ďauphin; Smith, Philadelphia; Keefer, Schuylkill; Cooper, Delaware; Representatives Pollock, Philadelphia; Moore, Allegheny; Marshall, Huntingdon; Hill, Indiana; Eshleman, Lancaster; Thomson, Armstrong; and Billingsley, Washington. The joint convention held daily sessions and balloted without result until February 22d, when John I. Mitchell, of Tioga, to wit:-That a number in both of the Congressman from the 16th district, was unanimously agreed upon as a compromise candidate. He was nominated by a full Republican caucus on the morning of February 23d, and elected on the first ballot in joint convention on that day, the vote standing: Mitchell, 150; Wallace, 92; MacVeagh, 1; Brewster, 1. The spirit of this contest continued until fall. Senator Davies, a friend of Mr. Grow, was a prominent candidate for the Republican nomination for State Treasurer. He was beaten by General Silas M. Baily, and Davies and his friends cordially made Baily's nomination unanimous. Charles S. Wolfe, himself the winter before a candidate for United States Senator, was dissatisfied. He suddenly raised the Independent flag, in a telegram to the Philadelphia Press, and as he announced was "the nominee of a convention of one" for State Treasurer. After a canvass of remarkable energy on the part of Mr. Wolfe, General Baily was elected, without suffering materially from the division. Mr. Wolfe obtained nearly 50,000 votes, but as almost half of them were Democratic, the result was, as stated, not seriously affected. The Independents in Pennsylvania, however, were subdivided into two wings, known as the Continental and the Wolfe men—the former having met since the election last fall, (State Senator John Stewart, chairman) and proclaimed themselves willing and determined to abide all Republican nominations fairly made, and to advocate "reform within the party lines. "" These gentlemen supported Gen. Baily and largely contributed to his success, and as a rule they regard with disfavor equal to that of the Regulars, what is known as the Wolfe movement. These divisions have not extended to other States, nor have they yet assumed the shape of third parties unless Mr. Wolfe's individual canvass can be thus classed. Up to this writing (March 10, 1882,) neither wing has taken issue with President Arthur or his appointments, though there were some temporary indications of this when Attorney General MacVeagh, of Pennsylvania, persisted in having his resignation accepted. President Arthur refused to accept, on the ground that he desired MacVeagh's services in the prosecution of the Star Route cases, and Mr. MacVeagh withdrew for personal and other reasons not yet fully explained. In this game of political fence the position of the President was greatly strengthened. Singularly enough, in the only two States where factious divisions have been recently manifested in the Republican ranks, they effected almost if not quite as seriously the Democratic party. There can be but one deduction drawn from this, great parties, were for the time at least, weary of their allegiance. It is possible that nothing short of some great issue will restore the old partisan unity, and partisan unity in a Republic, where there are but two great parties, is not to be deplored if relieved of other than mere polítical differences. The existence of but two great parties, comparatively free from factions, denotes government health; where divisions are numerous and manifest increasing growth and stubbornness, there is grave danger to Republican institutions. We need not, however, philosophize when Mexico and the South American Republics are so near. The Caucus. Both the "Independents" of Pennsylvania and the "Half-Breeds" of New York at first proclaimed their opposition to the caucus system of nominating candidates for U. S. Senators, and the newspapers in their interest wrote as warmly for a time against "King Caucus" as did the dissattisfied Democratic journals in the days of De Witt Clinton. The situation, however, was totally different, and mere declamation could not long withstand the inevitable. In Pennsylvania almost nightly "conferences" were held by the Independents, as indeed they were in New York, though in both States a show of hostility was kept up to nominating in party caucus men who were to be elected by representative, more plainly legislative votes. It was at first claimed that in the Legislature each man ought to act for himself or his constituents, but very shortly it was found that the caucuses of the separate wings were as binding upon the respective wings as they could have been upon the whole. Dead-locks were interminable as long as this condition of affairs obtained, and hostility to the caucus system was before very long quietly discouraged and finally flatly abandoned, for each struggle was ended by the ratification of a general caucus, and none of them could have been ended without it. The several attempts to find other means to reach a result, only led the participants farther away from the true principle, under republican forms at least, of the right of the majority to rule. In Pennsylvania, when Mr. Oliver withdrew, fifty of his friends assembled and informally named General Beaver, and by this action sought to bind the original 95 friends of Oliver. Their conduct was excused by the plea that they represented a majority of their faction. It failed to bind all of the original number, though some of the Independents were won. The Independents, rather the original 44, bound themselves in writing not to change their course of action unless |