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British graziers out of their own market.*

With an increasing export trade came a revival in the general industries of the country. The iron trade was flushed with orders far beyond capacity; the manufacture of cottonspinning machinery revived with the rise in the price of raw cotton; prices in the dry-goods trade rose 50 per cent., with mills running under full pressure and large orders unfilled; and every branch of industry felt the stimulus. As the balance of trade was now in our favor gold began to come from Europe, within three months $60,000,000 being shipped from England, France and Germany. "As the special need of the American bankers was currency suitable for use in interior trade, a large part of this specie went directly into the treasury in exchange for legal-tender notesanother wholly new phenomenon, impossible except under resumption."+

The gold reserve in the treasury which had been very low gradually rose until at the beginning of November, 1879, it stood at $157,140,114; and

* See the Annual Reports of the New York Chamber of Commerce and the New York Produce Exchange for 1879, and the files of the New York Commercial and Financial Chronicle. David A. Wells, in his Recent Economic Changes (D. Appleton & Co.), pp. 6-7, says that the exports of wheat rose "from 40,000,000 bushels in 1877 to 122,000,000 bushels in 1879, 153,000,000 bushels in 1880 and 150,000,000 bushels in 1881, while the corresponding values of the amount exported rose from $47,000,000 in 1877 to $130,000,000 in 1879, $190,000,000 in 1880, and $167,000,000 in 1881. There was also a corresponding increase in the quantity and value of the American exports of other cereals, and also of most meat products and provisions."

† Noyes, American Finance, p. 58.

whereas in the early months of 1879 customs payments were made in legaltenders, in November and December more than 60 per cent. of these were made in gold.

With the influx of gold, the bumper crops, the awakening of industry and the general prosperity came speculation and inflation of prices, such as the rises in the wheat and iron markets and of corporation shares on the stock markets, but after these bubbles had collapsed "the underlying strength and healthfulness of the markets was asserted." The tide of immigration set this way, increasing each month until, in 1882, 788,992 came into the country, nearly onethird of whom were Germans.

The political situation changed with the industrial improvement. Those who had previously been foremost in their predictions of disaster upon specie resumption gradually swung into line when that event was successfully consummated. The fall elections of 1879 were largely in favor of the Republicans, Maine, Ohio, New York, Michigan, and Iowa giving large Republican majorities. The situation was not much changed when the presidential election of 1880 came on.

The parties held their nominating conventions in the spring and early summer and selected the following candidates:

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In the history of their party's accomplishments the Republicans said in their platform:

"Without resorting to loans it has, since the war closed, defrayed the ordinary expenses of Government, besides the accruing interest on the

and Arthur. Garfield received an electoral vote of 214 against an electoral vote of 155 for General Hancock. At this election the Republicans secured a majority in the House of

public debt, and disbursed annually over $30,- Representatives, and also gained con

000,000 for soldiers' and sailors' pensions. It has paid $888,000,000 of the public debt, and by refunding the balance at lower rates has reduced the annual interest from nearly $151,000,000 to less than $89,000,000. All the industries of the country have revived, labor is in demand, wages have increased, and throughout the entire country there is evidence of a coming prosperity greater than we have ever enjoyed."

The platform also declared for government aid to educational projects; for a national law against the appropriation of public funds to sectarian schools; for the levying of revenue duties so as to favor American labor; for the abolishment of polygamy; for the restriction of Chinese immigration; for the reform of civil service; etc. The Democrats demanded that Church and State should be kept apart; that common schools be fostered and protected; that the civil service be thoroughly reformed; that a tariff be enacted for revenue purposes only; that the election laws be reformed; that the treaty with China be revised, etc. They concluded by saying:

We congratulate the country upon the honesty and thrift of a Democratic Congress, which has reduced the public expenditures $10,000,000 a year; upon the continuation of prosperity at home and the National honor abroad; and above all, upon the promise of such a change in the administration of the Government as shall insure a genuine and lasting reform in every department of the public service."

After an exciting canvass, the election resulted in the choice of Garfield

trol of the Senate. The result gave a wonderful forward impulse to business of every kind.*

Beside passing the usual appropriation bills the last session of the Fortysixth Congress, which expired March 4, 1881, also discussed some other important legislation. The most important measures under consideration were bills for refunding the public debt and for making a new apportionment of Representatives in Congress under the census of 1880.

The bill for facilitating the refunding of the national debt had been pending during the preceding session and was again taken up in the third session. The original bill provided that" in lieu of the bonds authorized to be issued by the act of July 14, 1870,

and the acts amendatory thereto and the certificates authorized by the act of February 26, 1879 [bearing five, four and a half, and four per

*Stanwood, History of Presidential Elections, pp. 345-374 and History of the Presidency, pp. 394-418; McClure, Our Presidents and How We Make Them, pp. 270-286; McPherson, Handbook of Politics, 1880, pp. 188-198; Andrews, Last Quarter-Century, vol. i., pp. 307-318; Blaine, vol. ii., pp. 657-672; Sherman, vol. ii., pp. 766783; Hoar, vol. i., pp. 384-404; A. R. Hancock, Reminiscences of W. S. Hancock, pp. 170-176; Conkling, Life of Conkling, pp. 588-632; Conwell's Garfield, pp. 327-334; Burton's Sherman, pp. 298-306; and lives of Blaine by Crawford, pp. 477-482, Hamilton, pp. 479-490, Stanwood, pp. 223-232, and Ridpath, pp. 140-141.


cent. interest] bonds in the amount of not exceeding $500,000,000 which shall bear interest at the rate of 312 per cent. per annum, redeemable, at the pleasure of the United States, after twenty years and payable forty years after the date of issue, and also notes in the amount of $200,000,000 bearing interest at the rate of 31⁄2 per cent. per annum, redeemable, at the pleasure of the United States, after two years and payable in ten years, should be issued. Debate was opened in the House on March 4, 1880, but no vote was reached.* The passage of this bill would have saved the country enormous sums of money.

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When the bill was called upon for action in the House December 14, 1880, the rate of interest was reduced to three per cent., and a provision made that "no bonds should be taken as security for bank circulation except the three per cent. bonds provided for by that bill." Other amendments were made and it passed the House January 19, 1881. After amendments by the Senate which were concurred in by the House the bill was passed and sent to the President March 1.†

Section 5 of the bill was regarded as so hostile to the interests of the national banks and so likely to "bring

* McPherson, Handbook of Politics, 1880, pp. 148-149, 1882, pp. 13-14.

† Ibid, 1882, pp. 10-11, 14-25.

VOL. X-2


serious embarrassment and disaster to the business of the country" that on March 3, 1881, President Hayes vetoed the bill, in his message saying:

"To prevent the further organization of banks is to put in jeopardy the whole system, by taking from it that feature which makes it, as it now is, a banking system free upon the same terms to all who wish to engage in it. Even the existing banks will be in danger of being driven from business by the additional disadvantages to which they will be subjected by this bill. In short, I cannot but regard the fifth section of the bill as a step in the direction of the destruction of the national banking system."

No further action was taken on the bill and it failed to become a law."

The new apportionment bill increased the ratio of representation from 131,425 under the census of 1870 to 151,911 under the census of 1880. When first introduced the ratio under the 1880 census was much higher and the increase in representation was from 293 to 319. But the bill carrying the representation at the 319 figure failed to pass at this session and went over to the first session of the Fortyseventh Congress. At that time the ratio was decreased and the number of Representatives placed at 325, and in this form President Garfield approved the bill February 25, 1882†

*Sherman, Recollections, vol. ii., pp. 796-801; Richardson, Messages and Papers, vol. vii., pp. 637-639; Bolles, Financial History, vol. iii., pp. 328-329; McPherson, Handbook of Politics, 1882, pp. 11-12.

McPherson, Handbook of Politics, 1882, pp. 39-44, 192-193.




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President Garfield inaugurated - His Cabinet Dispute over nomination of Judge Robertson Conkling and Platt resign in protest-Not re-elected-The President shot by Guiteau Efforts to save his life unavailing - He dies September 19 - Vice-President Arthur sworn in Cabinet changes - Blaine's diplomatic intercourse: with Great Britain: with Chili: with South and Central American republics Business conditions unsettled · Crops poor-Large surplus in treasury- Congress proceeds to spend it — River and Harbor bill-"Star Route" frauds Changes in politic: 1 situation - Internal revenue and tariff bills-Financial distress in 1884-Record of failures Political nominees and platforms Cleveland elected - Other events.

President Garfield was inaugurated March 4, 1881, and chose the following men as his Cabinet officers, who were confirmed without debate: Secretary of State, James G. Blaine, of Maine; Secretary of the Treasury, William Windom, of Minnesota; Secretary of War, Robert T. Lincoln, of Illinois, son of President Lincoln; Secretary of the Navy, William H. Hunt, cf Louisiana; Secretary of the of the Interior, Interior, Samuel J. Kirkwood, of Iowa; Postmaster-General, Thomas L. James, of New York, Attorney-General, Wayne MacVeagh, of Pennsylvania.

The President's subsequent nominations were not so well received by the Senate. Judge William H. Robertson was nominated for the office of collector of customs for the port of New York, but his confirmation was op posed by Senator Conkling, of New York, because the latter considered that the appointment was made in payment for political services rendered to Garfield by Judge Robertson* and * A. R. Conkling, Life of Conkling, p. 636.

also because the former incumbent was closely affiliated with Conkling in politics.

Robertson had gained the enmity of Conkling at the convention which nominated Garfield for the presidency by refusing to vote for Grant, for whom Conkling was endeavoring to secure a third term. The minority of the New York delegation under the leadership of Robertson refused to accept the unit rule in voting and this example had great influence in the convention, so much so that Conkling could not secure the two-thirds majority necessary to nominate Grant. This defection finally resulted in swinging the necessary votes to Garfield. For this aid, therefore, Garfield appointed Robertson to the positior named, and Conkling used this argument as a reason for his rejection ov the Senate.

Conkling also held that nominations for Federal offices should be made upon the recommendation or at least with the approval of the Senators of

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