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by 1885 had risen to 45.86 per cent.* of the cottons imported; Professor Taussig says “had the iron ore and certain manufactures of higher duties of the act of 1883 been steel.” The reductions were on “ the brought before Congress in a separate finer grades of wool, on the cheaper bill, there can be no doubt that their grades of woolen and cotton goods, on enactment would have been impossible. steel rails, copper, marble, nickel and That they were in many cases half concealed by means of changes in classi- But the bill was not satisfactory fication, or were coupled with appar- even to the Republican protectionists, ent reductions on other articles in the John Sherman being particularly out. same schedules, shows that the pro- spoken in
spoken in his criticism of the bill.t As tectionists themselves had some fear it was, the conference committee of the of putting them nakedly before the two Houses, instead of reducing public.f Taussig also says that the duties raised them so that in some inmeasure is best described as a half- stances they equalled the old war hearted and unsuccessful attempt on tariff.t the part of protectionists to bring A period of financial depression now about an apparent reform of the set in, culminating in the panic of May tariff," that " it was framed by men and June, 1884, not however caused who at heart were protectionists,” and by the enactment of the tariff law. that the reductions made “ had little The gigantic speculation in railroads effect other than the change of the had reached its zenith in 1880, and a a figures on the statute-book.'' | The retrograde movement set in. Prices “infant industries " demanded pro- of securities declined for three years tection and the reductions were small, due to the ruinous competition of new the more radical protectionists secur- lines and lowered rates and above all ing“ modifications along lines of high by the speculations and manipulations and even increased protection.” Con
of their managers. In 1884 and 1885 gress treated the recommendations of forty-one railway corporations holdthe commission “ with disapproval, if ing 19,000 miles of track were placed not with contempt." The duties were
* Dewey, Financial History, p. raised on certain classes of woolen
Taussig, pp. 235-253, for a discussion of the goods, especially on dress goods, and
various schedules, and p. 266 for a table showing the finer grades of cloths and cassi- changes.
† Recollections, vol. ii., p. 851 et seq. meres on cotton hosiery,
| This was undoubtedly due in some measure embroideries, trimmings, laces, and in- to the lack of proper consideration of the bill sertions, constituting about two-thirds owing to the desire to pass it before that Congress
expired. Debate on the bill began January 25
and ended March 3, but a large part of the disHowe, Internal Revenue System, p. 221 et seq. cussion which should have been given to the bill † Stanwood, Tariff Controversies, vol. ii., was taken up with points of parliamentary law. p. 219 et seq.
For a summary of the debate see Stanwood, * Taussig, Tariff History, pp. 242-254.
Tariff Controversies, vol. ii., pp. 208–218.
under receivership and thirty-seven On the 13th the Second National Bank smaller railroad properties were sold suspended payment with liabilities of under foreclosure.* During 1883 $3,000,000; on the 14th Donnel, Lawthere were several commercial failures
son & Simpson and Hatch & Foote and prices began to decline; goods failed, followed by the Savings Bank accumulated in the warehouses; gold of New York, Fiske & Hatch and many flowed away and ready cash decreased others on the 15th, the total liabilities daily. On January 1, 1884, the New
of the wrecked concerns being about York & New England Railroad went
$240,000,000.* into receivers’ hands, followed by the
Moreover, as defaulting was becomNorth River Company January 12.
ing general, the Secretary of the These were followed on May 6 by the
Treasury, in order to sustain the failure of the National Marine Bank
credit by the most regular methods, of New York, the president of which was associated with the firm of Grant pledged himself to prepay the portion
of the national debt soon to come due. & Ward, which failed shortly after
Besides this $24,915,000 of Clearing ward with liabilities of $17,000,000.1
House certificates of deposit were isComan's Industrial History, p. 321.
sued to tide over some of the toppling Hadley, Railroad Transportation, p. 52 (G. P.
institutions. Things then began to Putnam's Sons), states that of the 29,000 miles constructed in 1880-82“ not more than one-third settle down, the general distrust diwere justified by existing business.
minished, credit circulation became Another third perhaps were likely to be profitable at some future date.
Of the re
re-established and the rate of discount mainder some were built to increase the power of declined to 5 per cent. (having been as existing systems, where they were not needed. Some were built to put money into the
high as 4 per cent. per day). hands of the builders as distinct from the owners. There had been no suspension of Some were built to sell as a blackmailing scheme against other roads."
specie payment during the panic, and † Ex-President Grant was a special partner in this, together with the outlook for a this firm but was innocent of any wrongdoing in
bounteous harvestgave connection with the firm's affairs, as Ward had
courage. used Grant's name without his knowledge to While the panic centered in New York, some gigantic speculations on his own
there were numerous failures in other private account. Nevertheless, Grant suffered both in fortune and reputation, even pledging his cities during the year, 11 National sword of honor and other priceless gifts to par- banks and about 130 other banks and tially redeem the notes which bore his name. Ile then began to write his Hemoirs to recoup his private bankers being counted in the lost fortunes and provide for the future of his
list. Almost the entire amount of the family, as he was then nearly bedridden by an
losses sustained in this panic was enincurable disease. See W. C. Church, U. S. Grant, pp. 441-454; Henry Clews, Twenty-Eight Years tirely borne“ by financiers and specuin Wall Street, pp. 215–221; Garland, U. S. Grant, pp. 486-503; Badeau, Grant in Peace, pp. 418-424. See also Ward's account of these trans- * Clement Juglar, llistory of Panics, pp. 102, actions in the New York Herald, issues of Decem- 106-107; Henry Clews, Twenty-Eight Years in ber 19, and 26, 1909 and January 2 and 9, 1910. Wall Street, pp. 162-173.
lators rather than by manufacturers The Republican platform demanded and traders."*
that “the imposition of duties on But in the spring of 1884 a slump in foreign imports shall be made, not the prices of agricultural products had ' for revenue only,' but that in raising also occurred. The wheat crops of the
the requisite revenues for the governworld were larger than ever before
ment such duties shall be so levied as and as a result the price fell below that
to afford security to our diversified of 1878. The decreased price pro
industries and protection to the rights duced a stagnant condition in interior
and wages of the laborer.” The party trade because the Western farmers pledged itself to a readjustment of the would not ship their produce East but
tariff, urged the establishment of an
international standard in the coinage preferred to hold it for more favor
of gold and silver, and the enactment able market conditions. As a conse
of laws for the regulation of railways, quence railway freight traffic was
and denounced the importation of congreatly diminished. Dividends on rail
tract labor. road stocks, therefore, were greatly The Democrats denounced the Rereduced and in many cases passed, and publican party as “ an organization consequently investors hesitated to
for enriching those who control its embark in railroad enterprises of machinery,” and called attention to great magnitude.†
the many pledges of former years that The situation was thus a double
the Republicans had not redeemed. handicap to the Republicans in the The platform pledged the party to coming presidential election, for they “ purify the Administration from must account for a financial panic in corruption, to restore economy, to rethe East and depression in the West- vive respect for law and to reduce taxern agricultural markets. They were ation to the lowest limit consistent also called upon to explain govern- with due regard to the preservation mental extravagancies and the preva- of the faith of the nation to its credilence of corruption.
tors and pensioners." It further The presidential and vice-presiden- pledged a revision of the tariff; recomtial candidates were as follows:
mended more intimate commercial relations with the North, Central and South American republics; favored
the enactment of laws by which labor James G, Blaine Maine. . John A. Login. IU.
Thomas A. siendricks, Ind. organizations might be incorporated; | Benj. F. Butler, l'ass .. A. M. West, diis and demanded a broader policy to
ward the American merchant marine. Noyes, American Finance, pp. 96-101; Juglar, In this election the ranks of the Re. History of Panics, pp. 108–119.
publican party were rent by internal † W. J. Lauck, The Causes of the Panic of 1893, p. 2 and footnote.
disputes, for the reform element was
Grover Cleveland, N. Y
CLEVELAND ELECTED; WASHINGTON MONUMENT.
bitterly opposed to Blaine. These re- 219 electoral votes against 182 for formers, called “ mugwumps,” were
Blaine. * led by Carl Schurz and G. W. Curtis The year 1884 was also noted beand were represented in the press by cause of the opening of the Brooklyn the New York Times and Harper's Bridge, at that time the largest wire Weekly. They repudiated the party suspension bridge in the world. In nominees and platform, endorsed this year also Alaska was constituted Cleveland, and threw all their in- a regularly organized territory of the fluence on his side. This bitterly United States. fought campaign was characterized On Saturday, February 21, 1885, the and disgraced by gross personalities, great Washington Monument, at the and the result was close.
national capitol, was dedicated with At a meeting of clergy, in which all imposing ceremonies. The orator of denominations were supposed to be the occasion was Hon. Robert C. Winrepresented, held at the Fifth Avenue throp, of Massachusetts, who in 1848 Hotel, New York, in the interests of had been the orator when the cornerthe Republicans, one of the ministers, stone of the same monument was laid. Rev. R. B. Burchard, in a speech de- The monument is 555 feet high and clared the Democratic party to be the
cost about $1,500,000. party of “ Rum, Romanism and Re
* Stanwood, History of Presidential Elections, bellion.” This unfortunate and mis- pp. 375-411, and History of the Presidency, pp.
419-449; McClure, Our Presidents and How We directed remark created much excite
Blake Them, pp. 288-315; McPherson, Handbook ment and did untold harm to the Re- of Politics, 1884, pp. 197-222; Blaine, vol. ii.,
pp. 572–593; Sherman, vol. ii., pp. 885–890; Hoar, publican cause, for though Blaine de
Autobiography, vol. i., pp. 405-408; lives of nied any responsibility for it the Cleveland by W. U. Hensel, pp. 93-120; W. 0. Democrats had spread millions of cir
Stoddard, pp. 166-198; J. L. Whittle, pp. 56-66;
lives of Blaine by Crawford, pp. 553–583; Hamil. culars bearing the charge broadcast
ton, pp. 572–593; Stanwood, pp. 267–295; Ridover the land and the denial came too
path, pp. 146–152.
† Sherman, vol. ii., pp. 897-902, where speeches late. Cleveland was elected, receiving are given.
CLEVELAND'S CABINET; VICE PRESIDENT HENDRICKS DIES.
PRESIDENT CLEVELAND'S FIRST ADMINISTRATION.
President Cleveland inaugurated — His Cabinet — Death of Vice-President Hendricks — The Presi.
dential succession Dispute between President and Senate — Repeal of Tenure-of-Office Act — Pension bills — The Hatch Act — Newfoundland fisheries dispute once more revived — Canadians seize American vessels — Commission appointed and treaty signed — Rejected by Senate Modus vivendi agreed upon
The Samoan dispute Treaties signed by Samoans — German aggressions - Conference between Great Britain, Germany and the United States Independence of islands guaranteed by three powers — Disaster at Apia — Statute of Liberty presented to the United States by France - Edmunds-Tucker anti-polygamy bill passed Charleston earthquake — Death of Chief Justice Waite -- Fuller appointed — Department of Labor created — Washington, Montana, North and South Dakota admitted -- Johnstown food — Indian troubles — Interstate Com. merce Act — Condition of finances — Mills tarifi debate - Labor conditions Boycotts — Hay. market massacre - - Decline of prices — Treasury surplus used to reduce interest-bearing debt Elections of 1888.
Grover Cleveland was sworn into the Interior, succeeded by William F. office March 4, 1885. In his inaugural Vilas, of Wisconsin, in 1888; Augustus address he urged that public expendi- H. Garland, of Arkansas, Attorneytures be limited to actual needs; he General; and William F. Vilas, of said that taxation ought to be reduced Wisconsin, Postmaster-General, sucby a readjustment of the revenue
ceeded by Don M. Dickinson, of Michschedules; and earnestly hoped that igan, in 1888, when Vilas became Secthe country would continue on its
retary of the Interior. course of peace, commerce and
On November 25 Vice-President honest friendship with all nations."'*
Hendricks died, and the question of The members of the Cabinet were
Presidential succession came under Thomas F. Bayard, of Delaware, Secretary of State; Daniel Manning, of
discussion. Congress when in session New York, Secretary of the Treasury, could, under the Constitution, make succeeded by Charles S. Fairchild, of provision in case either the President New York, in 1887; William C. Whit
or Vice-President should die or be reney, of New York, Secretary of the moved from office, but should both Navy; William C. Endicott, of Massa- these officials die at the same time chusetts, Secretary of War; L. Q. C. while Congress was not in session, the Lamar, of Mississippi, Secretary of country would be without executive
* Richardson, Messages and Papers, vol. viii., guidance. President Cleveland, therepp. 299–303 ; George F. Parker, The Writings and
fore, recommended in his annual mesSpeeches of Grover Cleveland, pp. 32-37; Stod. dard's Cleveland, pp. 207-211.
sage of December 8, 1885, to the first