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alarm. Gold continued to flow away, and to make matters worse the revenue from all branches of public revenue fell off, so that by October 19, 1893, the stock of gold had diminished to $81,551,385 and by January 1, 1894, had reached $65,000,000.* Therefore, on January 17, 1894 without special legislation but under authority of the Resumption Act of 1875, Secretary of the Treasury Carlisle invited bids on an issue of $50,000,000 of 5 per cent. ten-year bonds at $117.223, and the


The Tariff and the Trusts, pp. 291-294; Laughlin and Willis, Reciprocity, pp. 230-269; Sherman, vol. ii., pp. 1201-1208; Whittle's Cleveland, pp. 165-173; F. N. Thorpe, Constitutional History, pp. 318-319. Sections 27 to 30 of this act (those providing for the income tax) were subsequently declared unconstitutional by the Supreme Court in the case of Pollock vs. Farmers' Loan and Trust Company (157 U. S. 429). The case was argued twice in April, 1895, and in May, 1895. After the first hearing the decision rendered was to the effect that a tax on the rents or income from real estate was a direct tax and that a tax on the interest on municipal bonds was a tax upon the power and means of the State to borrow money and therefore repugnant to the Constitution. But at this first hearing the court did not decide whether or not the tax upon personal property was constitutional, the court being evenly divided (one justice was absent). In May, however, when the cases were reargued before a full court the majority of the court, in an opinion rendered by Chief Justice Fuller (158 U. S. 601), held that in order to be constitutional a direct tax must be apportioned according to representation; that a tax on personal property or the income on personal property was a direct tax; that the tax imposed by the above act was a direct tax; and that as the method of imposing the tax was not according to representation the act was unconstitutional and void. On the internal revenue features of the bill, the income tax and the subsequent decisions see Howe, Internal Revenue System, pp. 231-252.

White, Money and Banking, p. 210; Noyes, American Finance, pp. 203-205; Report of the Secretary of the Treasury, 1894.

subsequent sale netted subsequent sale netted a premium of $8,660,917 in gold.* But though this issue raised the total of gold up to $105,000,000, it did not stop the drain on the reserve. By August 7 "the redemption of legal-tender notes for export gold had reduced the treasury's gold reserve to $52,189,500," and by October "the monthly deficit had risen to thirteen million dollars, the largest of the year." In November, therefore, another issue of $50,000,000 of bonds was floated at $117.077 bringing in $58,538,500 in gold.‡

In both cases the sale of these bonds had called for subscriptions in gold, but fresh redemptions of notes quickly exhausted the new supplies. As a consequence of the bond sales the volume of gold in the treasury fluctuated as follows:

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through the regular channels. January 28, 1895, President Cleveland sent a special message to Congress, recommending that the Secretary of the Treasury be given authority to issue bonds at a low rate of interest to maintain the reserve and redeem the outstanding notes which had been issued for the purchase of silver, but this recommendation did not receive the approval of Congress, the resolution carrying this provision being defeated by a vote of 167 to 120, February 7.†

Secretary Carlisle on February 8 signed a contract with a syndicate of New York bankers for the purchase of 3,500,000 ounces of gold coin. In payment the government was to issue 30-year 4 per cent. bonds on condition that if 3 per cent, bonds should be authorized by Congress, the latter might be substituted for the 4 per cent. bonds within ten days. There was also a condition that one-half of this coin should be purchased in Europe. Secretary Carlisle under this contract received $65,116,244 in gold for $62,315,400 in bonds. On June 25 the treasury reserve of $100,000,000 was again intact and on July 8 it had reached $107,571,230.‡

Richardson, Messages and Papers, vol. ix., pp. 561-565; Cleveland, Presidential Problems, pp. 143-146.

† Whittle's Cleveland, pp. 165-180; White, p. 212.

Dewey, Financial History, pp. 449-453; Noyes, American Finance, p. 235 et seq.; Hepburn, Contest for Sound Money, p. 382; White, Money and Banking, p. 211. See also Cleveland's message of February 8, 1895, and his annual message of December 2, Richardson, Messages and Papers, vol. ix., pp. 567, 641 et seq.; Cleveland, Presidential Problems, pp. 147-160.


On January 6, 1896, Secretary Carlisle was again forced, owing to the continued business depression and the export of gold (the reserve having gone down to $61,251,710 on that day) to issue a call for bids on an additional $100,000,000 of the 4 per cent. bonds. The total number of bids submitted was 4,600 and the amount of the subscriptions was several times the sum required. The premium yielded amounted to about $11,000,000* and the gold reserve was thus increased to $128,291,327 (April 9, 1896).†

In the meantime the silver question had again come up in Congress, when on February 7, 1894, the House Committee on Coinage, Weights and Measures reported a bill directing that the silver held in the treasury vaults must be coined. Congressman Bland, however, introduced a substitute measure providing for the coinage of the seigniorage and this substitute was passed in the House by a vote of 168 to 129 with 56 not voting and in the Senate by a vote of 44 to 31, with 10 not voting. The President vetoed the bill March 29, 1894, and as it failed to pass over his veto it did not become a law.

In 1896 the Territory of Utah was admitted to the Union as a State, the President issuing a proclamation to that effect January 4.

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lumbian Exposition. On April 28, 1890, President Harrison signed a bill entitled: "An act to provide for celebrating the 400th anniversary of the Discovery of America by Christopher Columbus, by holding an international exhibition of arts, industries, manufactures and the products of the soil, mine, and sea, in the City of Chicago, in the State of Illinois."

Though the exposition itself did not being until May, 1893, the preliminary celebration began in October, 1892. In New York there was a parade of school children, October 10, a naval parade on the 11th, and a military and civic parade and a night pageant on the 12th. In Chicago there was a large parade on the 20th and on the 21st the dedication exercises took place in the manufactures and liberal arts buildings.

The following were the principal buildings with their dimensions and costs:

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415 x 225.


320 x 500

136 x 200 (2).


94.1 x 199.8*

345 x 690

162.1 x 361.1

135 in diameter*

208 x 528.

250.8 x 997.8.


150 x 625.


494 x 842.

490 x 551*.


86 x 103.6

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30,000 413,500 224,750


The most noted works of art were: the Columbia fountain, in the western section of the court of honor, designed by Frederick McMonnies; the statue of the "Republic," in the eastern section of the court of honor, designed by Daniel C. French, of New York; the peristyle and colonnade, which inclosed the court on the east and south, designed by Charles B. Atwood, of New York; the Columbus quadriga, surmounting the central' arch of the peristyle, designed by D. C. French and E. C. Potter, of New York; the statue of Columbus, in front of the administration building, by Mary T. Lawrence; the statue of Benjamin Franklin, in the portal of the electricity building, the work of Carl Rohl-Smith.

In the southern portion of the grand canal, fronting the colonnade, was a magnificent obelisk, surrounded by a group of lions, designed by M. A. Waagen. Adorning the bridges and overlooking the lagoons were the celebrated bulls, by E. C. Potter, the draught horses, by Potter and French, cowboy and pony and Indian and pony, by A. P. Proctor, and the buffaloes, bears, elks and panthers, by Edward Kemeys and A. P. Proctor. There was also a statue of Diana by Augustus St. Gaudens, adorning the 300,000 dome of the agricultural building, beside hundreds of other groups, designed by such eminent artists as Karl Bitter, Philip Martiny, Lorado Taft, Johann Gelert, Larkin Mead, John J. Boyle and others. There were 21,477,212 paid admissions and 6,052,188

75,000 1,600,750







256 x 960.

435 x 850*.

198.8 x 398

Thirty other buildings.

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passes, making a total attendance of iana were most complete, and North 27,529,400. The exposition

financial success.*



The Cotton States and International Exposition was held at Atlanta, Ga., from September 15 to December 31, 1895, its primary purpose being the commercial and industrial advancement of the South. Only two States were represented on the ground by buildings - Georgia and Alabama. Most of the State appropriations were surprisingly small and inadequate. The exhibits from Georgia and LouisAndrews, Last Quarter-Century, vol. ii. Many of the buildings were afterward destroyed by fire.

Carolina made a fine display of minerals. Creditable displays were sent from Great Britain, France, Italy, Germany, Austria, Russia, Mexico, Costa Rica, Chili and other countries in Central and South America. The chief exhibits were in the government buildings, the mineral and forestry building, the manufactures and liberal arts building, machinery hall, the agricultural building, and the negro building."

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Andrews, The United States in Our Own Time, p. 751 et seq. (Charles Scribner's Sons).




Italians lynched at New Orleans Italy demands reparation. Secretary Blaine practically refuses Relations severed - Indemnity paid and relations resumed - Chilean dispute - War threatened — Chili pays indemnity-Behring Sea controversy with Great Britain - Early history of case - Seizures of British vessels Modus vivendi established - Both nations send commissioners to examine fisheries — Treaty of arbitration signed The arbitrators - Decision of the court Restrictions against sealing - Great Britain refuses to change regulations - Retaliation by United States Joint commission meets, but nothing definitely decided Chinese immigration question - The various laws and their provisions - The Venezuelan boundary dispute - Its early history - President Cleveland applies the Monroe Doctrine - His famous message to Congress Commission appointed to examine merits of dispute - Great Britain and Venezuela decide to arbitrate The arbitration tribunal and its award-The Tin Horn War.


For the past few years the foreign relations of the country had been cordial and no difficulties had arisen of so serious a nature that they could not be easily and satisfactorily settled.

But in 1891 occurred an event which threatened to disrupt our previous

pleasant relations with Italy. In New Orleans a secret oath-bound society, known as the Mafia, had been used by one of two rival stevedoring firms, who were disputing over some shipping contracts, as a means of securing the work. In the struggle several

murders were committed and the chief of police, David C. Hennessey, had been especially active in the search for persons suspected of being guilty of the crimes. The evidence gathered by him pointed to a certain gang of Italians of ill repute and he started to "clean them up." Before his object was attained he was murdered on the night of October 16, 1890.

Eleven Italians supposed to have been in the plot were arrested, but only nine were held for trial. At the trial the jury acquitted six of the nine and disagreed as to the other three. But before the prisoners could be released, the jail was surrounded by a vigilance committee, of which many prominent citizens were members, and on March 14, 1891, the prisoners were seized and lynched. As this was regarded as a flagrant violation of the treaty in existence between the two countries, by the terms of which the United States guaranteed to protect Italian subjects in this country, the Italian government demanded that the persons guilty of the lynching be summarily dealt with and that an indemnity be paid to the families or relatives of the victims.

Secretary of State Blaine replied that the United States would not guarantee to punish the guilty persons, since every one accused of a crime in this country could by law demand "a speedy and public trial by an impartial jury of the state and district wherein the crime was committed." Therefore, if the jury should acquit the alleged criminals the Federal gov


ernment had no legal right to further in the matter. With regard to indemnity the Italian government was assured that the United States was willing to pay an indemnity to such Italian subjects as came under the treaty and had been wronged, but if, after investigation, the Italians who were lynched were found not to be Italian subjects or that they were guilty, then under such circumstances the United States would not pay.

This reply was not satisfactory to the Italian government, and on March 31 the Italian minister, Baron Fava, was recalled by King Humbert. On May 5 the grand jury made its report on the lynching and failed to find indictments, so that the first demand made by Italy could under no circumstances be complied with. Finally, however, the matter was compromised by the payment of $25,000 to the families of the victims and diplomatic relations were resumed.*

An incident similar to this now occurred in Chili. President Balmaceda of Chili had been overthrown and the revolutionists had established a provisional government. Some sailors from the United States cruiser Baltimore who had been landed in Valparaiso October 18, 1891, to guard American citizens and their property, were assaulted by a mob on the charge that they had fought and beaten some Chileans in a drunken brawl. Several casualties resulted. The accusation

* Andrews, Last Quarter-Century, vol. ii., pp. 176-184; Hamilton's Blaine, pp. 672-675; Rid path's Blaine, pp. 423-435.

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