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and the country through which the sent W. H. Trescott and Walker canal should run and that the United Blaine as special envoys and threatStates could not, under the Monroe

ened Chili with intervention if CalDoctrine, entertain a proposition for a deron were not recognized. European protectorate."

Before the matter was settled SecreIn 1884 the Frelinghuysen-Zavalla tary Blaine had retired from the treaty with Nicaragua was negotiated Cabinet and President Arthur had apfor the construction of the canal by pointed Mr. Frelinghuysen. Upon his the United States, the latter guaran- accession Frelinghuysen modified the teeing the integrity of Nicaragua.† instructions given Trescott and Blaine But the treaty was not then ratified

and they were told to remain neutral. by the Senate, being held over until Blaine had also issued a note to the the accession of President Cleveland.

Spanish-American republics inviting Cleveland withdrew the treaty without

them to send representatives to meet action, as his views did not agree with

in congress at Washington for the those of his predecessor.

purpose of discussing their common The next affair that claimed Mr.

interests and to devise plans for their Blaine's attention was the war be

mutual protection against European tween Chili on the one side and Bo

intervention. Many of them accepted livia and Peru on the other. Chili had

the invitation, but before the congress gained a decided victory over her two

met Blaine retired. Frelinghuysen as antagonists, the armies of the latter

soon as he came into office abandoned being beaten on land and their navies

the plan and by this act caused no destroyed. After Lima had been oc

little ill-feeling. The project was not cupied by the Chilean forces the Presi

undertaken until Blaine was again apdent of Peru fled to the interior, and pointed Secretary of State by PresiChili, being unable to negotiate a

dent Harrison. treaty of peace because the proper au

Meanwhile the prosperous condition thorities were not there, proceeded to

of the country had received a check. annex the nitrate-bearing district of

The chief agricultural regions in Peru by way of indemnity. The

1881 suffered a destructive drought, Peruvians then named Señor Garcia

which caused the crops to fall off 25 Calderon as the head of the govern

per cent.; the corn crop was the smallment and Blaine instructed our min

est since 1874. But while the financial ister to acknowledge him as the de

returns to the farmers were nearly as facto President. But the Chilean ad

great as in 1880 because of a rise in miral deposed him and Blaine then

prices due to a shortage of grain in Snow, Treaties and Topics, pp. 342–343. † For copy of treaty see Senate Report 1265, * Crawford's Blaine, pp. 514-516, 536–545, p. 20, 55th Congress, 2d session.

where Blaine's policy is outlined. See also Hamil1 Richardson, Messages and Papers, vol. viii., ton's Blaine, pp. 519–520 ; Stanwood's Blaine, p. 377; Snow, Treaties and Topics, pp. 344-345. pp. 247-256 ; Ridpath's Blaine, pp. 335-344.

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Europe, still the railways felt the de- River and Harbor bill (House Bill crease in traffic, their earnings shrink- No. 6242) was thereupon passed by ing by about $45,600,000.

both Houses of Congress, appropriatBy March, 1882, the export of gold ing $1,000,000 for improving the in large quantities began, the total for Mississippi and $14,000,000 for other the fiscal year ending June, 1882, be- purposes. President Arthur vetoed ing $32,500,000. Furthermore, Europe this bill August 1 as he considered the in 1882. produced large crops which appropriation extravagant, but it was

, hurt the American exports, not only passed over his veto the next day and in quantity but in prices. Wheat, cot- became a law.* ton, iron and steel,* and almost all Several instances of corruption trades felt the change. Beside this the were also unearthed, the most promispeculators on the exchanges were ex- nent of which were the so-called “Star periencing a slump in the prices of Route " cases, in which it was alleged stocks, bonds, etc.

that General T. W. Brady, the second But the surplus of public revenue assistant Postmaster-General, Senator continued to raise higher and higher, Dorsey, of Arkansas, and others, had in the fiscal year 1882 amounting to conspired to defraud the government $145,543,810, and the disposition of of enormous sums by an ingenious this vast sum was now a great prob- system of contracts and subcontracts lem. But Congress soon found a way on certain mail routes. Brady and out of the difficulty. Instead of reduc- Dorsey were tried on this charge but ing taxation, that body proceeded to were acquitted, and the trial only spend the surplus as rapidly as pos- served to furnish campaign material sible. The pension disbursements for the next presidential campaign. were increased from $27,000,000 in The political sentiment of the coun1878 to about $68,000,000 in 1882 and try, in the face of Congressional exother appropriations were increased travagances, and in the light of the in almost the same proportion. In exposures of corruption, now under1882 President Arthur recommended went a change. The voters stood bethat the Mississippi River and its hind President Arthur in his veto of tributaries be improved in the inter- the River and Harbor bill and at the ests of commerce. A bill known as the elections of 1882 the Republicans suf

fered an overwhelming defeat, their See the Report of the American Iron and Steel Association for May, 1883 and subsequent plurality of twelve in the Fortynumbers.

seventh Congress being turned into a † In his first annual message to Congress, De. cember 6, 1881, President Arthur said that * Richardson, vol. viii., pp. 120–122; Hoar, 789,053 pension claims had been filed since 1860, Autobiography,' vol. ii., pp. 112-119; Noyes, of which 450,949 had been allowed.- Richardson, American Finance, pp. 89-90; McPherson, Hand. Messages and Papers, vol. viii., p. 58.

book of Politics. 1882. pp. 175-179, 202-203. $ In his message of April 17, 1882, Richardson, * Andrews, Last Quarter-Century, vol. i., pp. vol. viii., p. 95.



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Democratic plurality of seventy-eight tion applied " to commodities of in the Forty-eighth. New York turned necessary general consumption, to a Republican plurality of 43,000 (for sugar and molasses, rather than to Cornell) into a Democratic plurality luxuries and to raw rather than to of 192,000; and Pennsylvania, Con- manufactured materials.”*

' necticut, Massachusetts Michigan,


An internal revenue bill was introKansas, Colorado, and California also duced in the House and the Senate elected Democratic governors. This tacked on the tariff bill containing change meant revision of the some of the reductions recommended revenue schedules but the protection by the commission. The act of ist Republicans now executed a clever

March 3, 1883,1 as finally passed (in move. Before the political complexion the Senate 32 to 31, in the House 152 of Congress changed, that body passed

to 116) abolished the taxes on bank a bill which was signed by the Presi

checks, on watches, on savings-bank dent May 15, 1882, appointing a com

deposits, on patent medicines and permittee of nine (not members of Con- fumeries and on the capital and degress) to investigate the tariff ques- posits of banks; it also reduced the tion and to report the next December. * duties on tobacco by one-half. The This committee was protectionist, with

loss in internal revenues, however, John L. Hayes, president of the Wool was not so great as anticipated, as Manufacturers' Association, at its there was a constant gain from the head.† Congress also passed at this

duties on spirits and fermented liqsession a Civil Service bill, providing uors. It was estimated that the loss

of internal revenue would amount for a nonpartisan commission of three members, and an act reducing the to about $40,000,000, but the actual

loss was less than $22,000,000. With postage on letters throughout the country to two cents.

regard to customs duties the act On December 4, 1882, the report of

was a disappointment to those who the tariff commission, covering 2,500

favored a downward revision, for the printed pages, was presented to Con- ratio of duty actually collected to the gress and an average reduction of 20 value of dutiable articles during 1883 per cent. was recommended, a reduc- was 42.45 per cent., whereas the ratio tion which was an unwilling" conces

facturers, quoted in Taussig's Tariff History, sion to public opinion.” This reduc

Dewey, Financial History, p. 421; Sherman, Stanwood, Tariff Controversies, vol. ii., p. 202 vol. ii., pp. 849-851. et seq.; McPherson, Handbook of Politics, 1880, † Taussig, Tariff History, p. 232; Sherman, p. 157, 1882, pp. 109-112.

vol. ii., pp. 841-845; Pierce, The Tariff and the The other members were H. W. Oliver, A. M. Trusts, pp. 285-288. Garland, J. A. Ambler, Robert P. Porter, A. R. | For text see Proctor, Tariff Acts, pp. 275•Boteler, J. W. H. Underwood, W. H. Melahon, 313; for votes on various schedules, McPherson, and Duncan F. Kenner.

Handbook of Politics, 1884, pp. 18-71. John L. Hayes, in Bulletin of Il’ool Janu- | Dewey, Financial History, pp. 419-420.

P. 254.


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