modified the instructions given by Mr. Blaine to Messrs. Trescott and Blaine, our special envoys to Peru and Chili, and to the moderation of the views held by him and the President, ample evidence is borne by their subsequent

acts.

The prosperity of the whole country during the year 1881 was great. An enormous extension of our railway system has taken place. Numerous new lines were constructed, and old lines consolidated. The most important of these are the various lines running westward to the Pacific, and the important scheme of railroads connecting our lines with the most fertile and most rich provinces of the neighboring republic of Mexico. Almost every branch of industry took in those last three years an important step in advance, and the transformation which all our cities are undergoing bears witness to an unparalleled extension of commerce, and an enormous increase in our national wealth. The immigration also was of unparalleled magnitude, amounting in the year 1881 to 716,868 souls. The commerce of the country also exhibited a steady increase. In 1861 the exports were $219,553,833; the imports $289,310,542. In 1881 the exports were $902,377,346; the imports $642,664,628, or a total of foreign commercial movement during the year of $1,545,041,974.

CHAPTER XXXIV.

"

ARTHUR AS PRESIDENT-THE STAR ROUTE TRIALS THE PANAMA CANAL AND THE CLAYTON. BULWER TREATY—PERU AND CHILI-CRITICISM OF MR. BLAINE'S POLICY-THE SILVER QUESTION-THE MORMON QUESTION-CHINESE IMMIGRATION—THE JEANNETTE LOST IN THE ARCTIC SEA-RECALL OF MR. SARGENT, THE MINISTER AT BERLIN-THE RUIN OF GENERAL GRANT-THE GREELY ARCTIC EXPEDITION-DEATHS OF LONGFELLOW, EMERSON, PETER COOPER, AND A. H. STEPHENS CIVIL SERVICE REFORM-ELECTION OF PRESIDENT CLEVELAND-THE ASPINWALL AFFAIR-DEATH OF GENERAL GRANT AND VICE-PRESIDENT

HENDRICKS.

Ο

NE of the most important state trials ever held in this country, whether we regard the high position of the parties incriminated, or the failure of justice which public opinion considers to have taken place, was that of the "Star Routes." The "Star Routes" of our Postal Service may be described as lines upon which mail can not be carried by railroad or steamboat lines. There were one hundred and thirty-four such routes, on which the compensation was raised from $143,169 to $622,808. This was accomplished by increasing the number of trips, shortening their time, and obtaining therefor by political influence additional compensation. On twenty-six of the routes the pay was raised from $65,216 to $530,319. Chief among those accused of being implicated in this attempt to defraud the Government were Senator S. W. Dorsey, and Second Assistant Postmaster-General Thomas J. Brady. Against them and others in minor positions, the formal indictment was brought on the 4th of March, 1882, the proceedings having commenced in November of the year previous. The first jury disagreed, and charges of receiving bribes were brought against several of its members. The Marshal of the District of Columbia, the Washington Postmaster, and others, were accused of aiding the prisoners, and were dismissed. A new trial was begun in December of the same year, ending, however, in acquittal of the chief delinquents.

A question concerning Peru and Chili arose from the war going on between those countries. Peru, being overrun by the Chilians, was in a state of anarchy, and two so-called governments co-existed. In June, according to instructions from Secretary Blaine, the Provisional Government of Calderon. one of the pretenders, was formally recognized in place of that of Pierola

General Hurlburt in July sent a communication to General Lynch, commander of the Chilian forces, saying that the United States disapproved of war which had in view territorial aggrandizement, and that the proposal of Chili to take possession of Peruvian territory, unless Peru demonstrated its inability to pay in any other way the indemnity imposed upon it by Chili, was disapproved of by this Government. This letter produced violent excite. ment. The Peruvians expected aid from the United States, and were correspondingly elated and grateful. The Chilians, on the other hand, denounced Minister Hurlburt with exceeding the bounds both of his own authority and of that of the United States. In response to the inquiries of the Chilian Government, General Kilpatrick, the minister at Lima, wrote a letter contradicting the statements of his Peruvian colleague. Upon this affair Secretary Blaine, for his own vindication, published his instructions to the ministers and various other documents. In these he desires the ministers, if it lies in their power, to persuade Chili to forego the claim upon Peruvian territory. He wrote: "There is nothing more difficult or more dangerous than forced transfer of territory, carrying with it an indignant and hostile population, and nothing but a necessity, proved before the world, can justify it. It is not a case in which the Power desiring the territory can be accepted as a safe or impartial judge." As a consequence of General Hurlburt's letter, President Calderon was imprisoned by order of General Lynch.

Affairs having become so involved, Mr. William H. Trescot was appointed special envoy to Peru and Chili. He was sent with instructions to try to arrange amicably the misunderstanding between the two countries. If, how ever, he found that the Chilian Government had suppressed that of Calderon to resent its recognition by the United States, he was to state that it would be regarded as an unfriendly act, and that diplomatic intercourse should be immediately suspended. This part of the instructions seemed liable to lead to serious complications with Chili, but on December 12th Mr. Blaine was succeeded, as already mentioned, by Mr. Frelinghuysen. He immediately telegraphed to Mr. Trescot that the questions arising from the suppression of the Calderon Government could be attended to in Washington, and he proceeded to say: "Were the United States to assume an attitude of dictation toward the South American republics even for the purpose of prevent. ing war, the greatest of all evils, or to preserve the autonomy of nations, it must be prepared by navy and army to enforce its mandate, and to this end tax our people for the exclusive benefit of foreign nations." He nevertheless urged moderation on Chili's part, declaring that otherwise this Government would not give any aid in negotiating with Peru. Mr. Partridge was afterward sent as minister to Peru. He called an informal meeting of the

CHAP. XXXIV.

THE PANAMA CANAL.

1805

representatives of various European Powers to endeavor to agree upon a solution of the difficulty. In this action he was regarded as having exceeded his authority, and was recalled. Since then all intercourse with Chili has been of a friendly nature.

Secretary Blaine's attitude was very sharply criticised. It was stated that he was largely interested in the success of the Peruvian Company which held and was about to prosecute claims against the Government of that country. If its autonomy were to be destroyed these claims would be worthless, and it was charged that this consideration influenced to some extent Secretary Blaine in his attitude toward Chili. An investigation into the charges was conducted by the Committee of Foreign Affairs in the House of Representatives. The committee reported that no blame was attached to any United States minister. Mr. Perry Belmont, however, made a separate report criticising severely the course of the State Department in countenancing the demands of different claimants, and thus embarrassing the position

of the Government.

In regard to the Panama Canal, the United States contested the right of any European Power to guarantee its neutrality, maintaining that the United States had the sole right so to do. It intimated its intention of withdrawing from the Clayton-Bulwer Treaty with England, wherein a joint guarantee of those Powers was established. This position was taken by the United States because of the changed condition of affairs since that treaty was made. Then the United States made concessions to England because possessed of resources and wealth too limited to undertake so arduous an undertaking. Now the country is larger, twice as populous, and richer by far. Above all, its possessions on the Pacific Coast would be exposed to attacks from an enemy in case the neutrality of the Canal were guaranteed by European powers alone.

The question of the coinage of silver again became a prominent subject, not merely in political, but in financial and commercial circles. By November 1st there were in the Treasury about 66,000,000 silver dollars. The danger arose that this would inflate the paper circulation of the country and reduce its currency to the standard of the silver dollar, and that gold would be withdrawn from circulation. To avoid this emergency, France and the United States invited various important nations to send delegates to a convention which should determine a fixed ratio between gold and silver. The convention was held, but Great Britain and Germany refused to be bound by any promises, and the convention was adjourned.

During the year one of the most memorable events was the occurrence, on September 6th, of the " Yellow Day," which will hereafter be associated

in history with the dark day of 1780. The peculiarity of the atmosphere was most marked in New England. So dark did it become in some places that schools and factories were closed. The suspension of dense volumes of smoke by a heavy fog, is supposed to have been the cause of the phenomenon, the sun's rays passing through them as through a tinted screen. The colors of objects seemed to change, and all things wore so unearthly an aspect that many thought the last day had arrived.

During the spring of 1882, in consequence of the partial failure of crops the preceding year, the prices of provisions rose. This caused much distress throughout the country, and the working classes believing they suffered the most heavily, demanded an increase of wages. In reply, the employers refused, declaring that they were the heaviest losers. Strikes followed in every direction. For the first time an organization which entitled itself the Knights of Labor, and which claimed to be organized with a view to enforce the rights of the laboring classes, made its power really felt. Of this body each member is taxed five cents a month, and the amount thus collected is put into a general fund for the support of those who join in a strike at the advice of the organization. Persuaded by their leaders, in June those employed in the iron trade demanded higher wages. The demand being refused, a strike ensued on so extensive a scale that almost forty thousand men were thrown out of employment-most of them in Pennsylvania, Ohio, Illinois, and Kentucky. After two months had elapsed, the employers remaining firm, the strikers tried to make terms, but finally were obliged to surrender unconditionally. Soon after, the freight-handlers of the railroads terminating in Jersey City and New York struck for higher wages. This and other strikes terminated in favor of the companies.

Early in the session two important measures were brought before the attention of Congress. The peculiar practices of the Mormons in 'he Territory of Utah-practices which, openly avowed as they are, conflict with our normal civilization—were felt to be in discord with the ordinary mo1l principles of society. The other was a bill relating to Chinese immigratio.

As regards the Mormon Question, a law passed in 1862 prohibiti. the Mormon system of "sealing," or polygamous marriage, was so negligently enforced that only three convictions had occurred. To carry out the tention of the bill, and render prosecution more easy of proof, the so-called Edwards Law was passed. By this, in addition to a re-enactment of aine and imprisonment, those who contravene the law are prohibited from vong or holding office. Under this act all the elective officers in Utah were <> missed from office, and a commission of five appointed by the President discharge their duties. The result of the position taken by the Federal Go