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diff --git a/22036-8.txt b/22036-8.txt new file mode 100644 index 0000000..854299c --- /dev/null +++ b/22036-8.txt @@ -0,0 +1,54286 @@ +The Project Gutenberg EBook of Recollections of Forty Years in the House, +Senate and Cabinet, by John Sherman + +This eBook is for the use of anyone anywhere at no cost and with +almost no restrictions whatsoever. You may copy it, give it away or +re-use it under the terms of the Project Gutenberg License included +with this eBook or online at www.gutenberg.org + + +Title: Recollections of Forty Years in the House, Senate and Cabinet + An Autobiography. + +Author: John Sherman + +Release Date: July 10, 2007 [EBook #22036] + +Language: English + +Character set encoding: ISO-8859-1 + +*** START OF THIS PROJECT GUTENBERG EBOOK JOHN SHERMAN'S RECOLLECTIONS *** + + + + +Produced by Ed Ferris + + + + +Transcriber's note: + + The dieresis is transcribed by a preceding hyphen. "Employe" is + replaced by "employee". The author's capitalization and spelling + are followed when consistent, but probable mistakes of the typesetter + have been corrected. + + The right brackets (}) in the heading of quoted letters + represent a single bracket grouping those lines in the book, which + indicates a typeset heading on the stationery used. + + LoC call number: E664.S57 1968 + + +JOHN SHERMAN'S +RECOLLECTIONS +OF +FORTY YEARS +IN +THE HOUSE, SENATE AND CABINET. +AN AUTOBIOGRAPHY. + +VOLUME I. + +ILLUSTRATED +WITH PORTRAITS, FAC-SIMILE LETTERS, SCENES, ETC. + +GREENWOOD PRESS, PUBLISHERS +NEW YORK 1968 + + +Copyright, 1895, By John Sherman + +SHERMAN BOOK. + +First Greenwood reprinting, 1968 + +LIBRARY OF CONGRESS catalogue card number: 68-28647 + +Printed in the United States of America + + +PREFACE + +These Recollections grew out of a long deferred purpose to publish +a selection of my speeches on public questions, but in collecting +them it became manifest that they should be accompanied or preceded +by a statement of the circumstances that attended their delivery. +The attempt to furnish such a statement led to a review of the +chief events of my public life, which covers the period extending +from 1854 to the present time. The sectional trouble that preceded +the Civil War, the war itself with all its attendant horrors and +sacrifices, the abolition of slavery, the reconstruction measures, +and the vast and unexampled progress of the republic in growth and +development since the war, presented a topic worthy of a better +historian than I am. Still, as my life was interwoven with these +events, I concluded that it was better that I state my recollection +of what I saw or heard or did in those stirring times rather than +what I said. Whether this conclusion was a wise one the reader must +judge. Egotism is a natural trait of mankind. If it is exhibited +in a moderate degree we pardon it with a smile; if it is excessive +we condemn it as a weakness. The life of one man is but an atom, +but if it is connected with great events it shares in their dignity +and importance. Influenced by this reasoning I concluded to postpone +the publication of my speeches except so far as they are quoted or +described in these memoirs. + +When I entered upon their preparation the question arose whether +the book to be written was to be of my life, including ancestry +and boyhood, or to be confined to the financial history of the +United States with which I was mainly identified. This was settled +by the publishers, who were more interested in the number of copies +they could sell than in the finances of the United States. + +Every man has a theory of finance of his own, and is indifferent +to any other. At best the subject is a dry one. Still, the problem +of providing money to carry on the expensive operations of a great +war, and to provide for the payment of the vast debt created during +the war, was next in importance to the conduct of armies, and those +who were engaged in solving this problem were as much soldiers as +the men who were carrying muskets or commanding armies. As one of +these I feel it my duty to present the measures adopted and to +claim for them such merit as they deserve. + +These volumes do contain the true history of the chief financial +measures of the United States government during the past forty +years. My hope is that those who read them will be able to correct +the wild delusions of many honest citizens who became infected with +the "greenback craze," or the "free coinage of silver." + +My chief regret is that the limit of these volumes did not permit +me to extend my narrative to the memorable battles and marches of +the Civil War, nor to a more general notice of my associates who +distinguished themselves in civil life. The omission of military +narrative is admirably compensated by the memoirs of the great +commanders on either side, and better yet by the vast collection +and publication, by the United States, of the "Records of the +Rebellion." The attempt to include in these volumes my estimate +of distinguished men still living who participated in the events +narrated would greatly extend them and might lead to injustice. + +One of the fortunate results of the Civil War has been to diminish +the sectional prejudice that previously existed both in the north +and in the south. I would not check this tendency, but will gladly +contribute in every way possible to a hearty union of the people +in all sections of our country, not only in matters of government, +but also in ties of good will, mutual respect and fraternity. The +existence of slavery in some of the states was the cause of the +war, and its abolition was the most important result of the war. +So great a change naturally led to disorder and violence where +slavery had existed, but this condition, it is believed, is passing +away. Therefore I have not entered in detail into the measures +adopted as the result of the abolition of slavery. + +This preface is hardly necessary, but I comply with the general +custom of adding at the beginning, instead of the end, an apology +for writing a book. This seems to me to be the chief object of a +preface, and I add to it an appeal for the kindly consideration of +the readers of these volumes. + + John Sherman. + Mansfield, Ohio, August 30, 1895. + + +ILLUSTRATIONS +VOLUME I. + +John Sherman +Dedham Street, Dedham, Essex County, England +Birthplace of John Sherman at Lancaster, Ohio +Mr. Sherman at the Age of Nineteen +Charles T. Sherman +First Court House at Mansfield, Ohio +Mr. Sherman's First Home in Mansfield, Ohio +Kansas Investigating Committee +Mr. Sherman at the Age of Thirty-five +Mr. Sherman's First Residence in Washington, D. C. +Senator Justin S. Morrill +Abraham Lincoln +General W. T. Sherman +Three Ohio Governors--Dennison, Tod, Brough +Colfax, Douglas, Fessenden, Ewing (Group.) +Edwin M. Stanton +U. S. Grant +United States Senators--43rd Congress +Mr. Sherman's Present Residence at Mansfield, Ohio +Library of Mr. Sherman's Mansfield Residence + + +AUTOGRAPH LETTERS +VOLUME I. + +Certificate of Admission to Practice in Supreme Court, January 21, + 1852 +T. Ewing, December 31, 1848 +Wm. H. Seward, September 20, 1852 +Certificate of Election as United States Representative, December + 9, 1854 +Justin S. Morrill, April 1, 1861 +W. B. Allison, March 23, 1861 +John A. Dix, February 6, 1861 +Simon Cameron, November 14, 1861 +Edwin M. Stanton, December 7, 1862 +Horace Greeley, February 7, 1865 +Thurlow Weed, February 28, 1866 +Schuyler Colfax, February 17, 1868 +Vote on the Impeachment of Andrew Johnson, May 16, and 26, 1868 +U. S. Grant, June 14, 1871 +M. H. Carpenter, July 20, 1871 +Roscoe Conkling, October 13, 1871 +J. A. Garfield, September 25, 1874 +R. B. Hayes, June 19, 1876 +R. B. Hayes, February 19, 1877 +Cyrus W. Field, March 6, 1877 +Wm. M. Evarts, August 30, 1877 + + +TABLE OF CONTENTS. +VOLUME I. + +CHAPTER I. +ANCESTRY OF THE SHERMAN FAMILY. +Family Name is of Saxon Origin--"Conquer Death by Virtue"--Arrival +of Rev. John Sherman at Boston in 1634--General Sherman's Reply to +an English Sexton--Career of Daniel Sherman--My First Visit to +Woodbury--"Sherman's Tannery"--Anecdote of "Uncle Dan"--Sketch of +My Father and Mother--Address to Enlisting Soldiers--General Reese's +Account of My Father's Career--Religion of the Sherman Family--My +Belief. + +CHAPTER II. +MY BOYHOOD DAYS AND EARLY LIFE. +Born at Lancaster, Ohio, May 10, 1823--Death of My Father and Its +Effect on Our Family--Early Days at School--A Dead Sheep in the +Schoolroom--Lesson in Sunday Sport--Some of My Characteristics--My +Attack on the Schoolmaster--Robbing an Orchard--A Rodman at Fourteen +and My Experiences While Surveying--Debates at Beverly--Early Use +of Liquor--First Visit to Mansfield in 1839--The Famous Campaign +of 1840--I Begin the Study of Law. + +CHAPTER III. +OHIO, ITS HISTORY AND RESOURCES. +Occupation by the Indians--Washington's Expedition to the Head of +the Ohio River--Commencement of the History of the State--Topography, +Characteristics, etc., in 1787--Arrival of the First Pioneers--The +Treaty of Greenville--Census of 1802 Showed a Population of 45,028 +Persons--Occupation of the "Connecticut Reserve"--Era of Internal +Improvement--Value of Manufactures in 1890--Vast Resources of the +Buckeye State--Love of the "Ohio Man" for His Native State. + +CHAPTER IV. +ADMISSION TO THE BAR AND EARLY POLITICAL LIFE. +Law Partnership with my Brother Charles--Change in Methods of Court +Practice--Obtaining the Right of Way for a Railroad--Excitement of +the Mexican War and its Effect on the Country--My First Visit to +Washington--At a Banquet with Daniel Webster--New York Fifty Years +Ago--Marriage with Margaret Cecilia Stewart--Beginning of My +Political Life--Belief in the Doctrine of Protection--Democratic +and Whig Conventions of 1852--The Slavery Question--My Election to +Congress in 1854. + +CHAPTER V. +EARLY DAYS IN CONGRESS. +My First Speech in the House--Struggle for the Possession of Kansas +--Appointed as a Member of the Kansas Investigating Committee--The +Invasion of March 30, 1855--Exciting Scenes in the Second District +of Kansas--Similar Violence in Other Territorial Districts--Return +and Report of the Committee--No Relief Afforded the People of Kansas +--Men of Distinction in the 34th Congress--Long Intimacy with +Schuyler Colfax. + +CHAPTER VI. +BIRTH OF THE REPUBLICAN PARTY. +The Name Formally Adopted at Jackson, Michigan, in 1854--Nomination +of John C. Fremont at Philadelphia--Democratic Convention Nominates +James Buchanan--Effect of the Latter's Election on the North--My +Views Concerning President Pierce and His Administration--French +Spoilation Claims--First Year of Buchanan's Administration--Dred +Scott Case Decision by Supreme Court--The Slavery Question Once +More an Issue in Congress--Douglas' Opposition to the Lecompton +Scheme--Turning Point of the Slavery Controversy. + +CHAPTER VII. +RECOLLECTIONS OF THE FINANCIAL PANIC OF 1857. +Its Effect on the State Banks--My Maiden Speech in Congress on +National Finances--Appointed a Member of the Committee on Naval +Affairs--Investigation of the Navy Department and its Results--Trip +to Europe with Mrs. Sherman--We Visit Bracklin's Bridge, Made Famous +by Sir Walter Scott--Ireland and the Irish--I Pay a Visit to +Parliament and Obtain Ready Admission--Notable Places in Paris +Viewed With Senator Sumner--The Battlefield of Magenta--Return Home. + +CHAPTER VIII. +EXCITING SCENES IN CONGRESS. +I am Elected for the Third Term--Invasion of Virginia by John Brown +--His Trial and Execution--Spirited Contest for the Speakership-- +Discussion over Helper's "Impending Crisis"--Angry Controversies +and Threats of Violence in the House--Within Three Votes of Election +as Speaker--My Reply to Clark's Attack--Withdrawal of my Name and +Election of Mr. Pennington--Made Chairman of the Committee of Ways +and Means--President Buchanan Objects to Being "Investigated"-- +Adoption of the Morrill Tariff Act--Views Upon the Tariff Question +--My Colleagues. + +CHAPTER IX. +LAST DAYS OF THE BUCHANAN ADMINISTRATION. +My First Appearance Before a New York Audience--Lincoln's Nomination +at the Chicago Convention--I Engage Actively in the Presidential +Canvass--Making Speeches for Lincoln--My Letter to Philadelphia +Citizens--Acts of Secession by the Southern States--How the South +was Equipped by the Secretary of the Navy--Buchanan's Strange +Doctrine Regarding State Control by the General Government--Schemes +"To Save the Country"--My Reply to Mr. Pendleton on the Condition +of the Impending Revolution--The Ohio Delegation in the 36th Congress +--Retrospection. + +CHAPTER X. +THE BEGINNING OF LINCOLN'S FIRST ADMINISTRATION. +Arrival of the President-Elect at Washington--Impressiveness of +His Inaugural Address--I am Elected Senator from Ohio to Succeed +Salmon P. Chase--Letters Written to and Received from My Brother +William Tecumseh--His Arrival at Washington--A Dark Period in the +History of the Country--Letter to General Sherman on the Attack +Upon Fort Sumter--Departure for Mansfield to Encourage Enlistments +--Ohio Regiments Reviewed by the President--General McLaughlin +Complimented--My Visit to Ex-President Buchanan--Meeting Between +My Brother and Colonel George H. Thomas. + +CHAPTER XI. +SPECIAL SESSION OF CONGRESS TO PROVIDE FOR THE WAR. +Condition of the Treasury Immediately Preceding the War--Not Enough +Money on Hand to Pay Members of Congress--Value of Fractional Silver +of Earlier Coinage--Largely Increased Revenues an Urgent Necessity +--Lincoln's Message and Appeal to the People--Issue of New Treasury +Notes and Bonds--Union Troops on the Potomac--Battle of Bull Run-- +Organization of the "Sherman Brigade"--The President's Timely Aid +--Personnel of the Brigade. + +CHAPTER XII. +PASSAGE OF THE LEGAL TENDER ACT IN 1862. +My Interview with Lincoln About Ohio Appointments--Governmental +Expenses Now Aggregating Nearly $2,000,000 Daily--Secretary Chase's +Annual Report to Congress in December, 1861--Treasury Notes a Legal +Tender in Payment of Public and Private Debts--Beneficial Results +from the Passage of the Bill--The War Not a Question of Men, but +of Money--Proposed Organization of National Banks--Bank Bills Not +Taxed--Local Banks and Their Absorption by the Government--The 1862 +Issue of $150,000,000 in "Greenbacks"--Legal Tender Act a Turning +Point in Our Financial History--Compensation of Officers of the +Government. + +CHAPTER XIII. +ABOLISHMENT OF THE STATE BANKS. +Measures Introduced to Tax Them out of Existence--Arguments That +Induced Congress to Deprive Them of the Power to Issue Their Bills +as Money--Bill to Provide a National Currency--Why Congress Authorized +an Issue of $400,000,000, of United States Notes--Issue of 5-20 +and 10-40 Bonds to Help to Carry on the War--High Rates of Interest +Paid--Secretary Chase's Able Management of the Public Debt--Our +Internal Revenue System--Repeal of the Income Tax Law--My Views on +the Taxability of Incomes. + +CHAPTER XIV. +LINCOLN'S EMANCIPATION PROCLAMATION. +Slavery in the District of Columbia Abolished--Law Goes Into Effect +on April 10, 1862--Beginning of the End of Slavery--Military Measures +in Congress to Carry on the War--Response to the President's Call +--Beneficial Effects of the Confiscation Act--Visits to Soldiers' +Camps--Robert S. Granger as a Cook--How I Came to Purchase a +Washington Residence--Increase of Compensation to Senators and +Members and Its Effect--Excitement in Ohio over Vallandigham's +Arrest--News of the Fall of Vicksburg and Defeat of Lee at Gettysburg +--John Brough Elected Governor of Ohio--Its Effect on the State. + +CHAPTER XV. +A MEMORABLE SESSION OF CONGRESS. +Dark Period of the War--Effect of the President's Proclamation-- +Revenue Bill Enacted Increasing Internal Taxes and Adding Many New +Objects of Taxation--Additional Bonds Issued--General Prosperity +in the North Following the Passage of New Financial Measures--Aid +for the Union Pacific Railroad Company--Land Grants to the Northern +Pacific--13th Amendment to the Constitution--Resignation of Secretary +Chase--Anecdote of Governor Tod of Ohio--Nomination of William P. +Fessenden to Succeed Chase--The Latter Made Chief Justice--Lincoln's +Second Nomination--Effect of Vallandigham's Resolution--General +Sherman's March to the Sea--Second Session of the 38th Congress. + +CHAPTER XVI. +ASSASSINATION OF ABRAHAM LINCOLN. +Johnson's Maudlin Stump Speech in the Senate--Inauguration of +Lincoln for the Second Term--My Trip to the South--Paying off a +Church Debt--Meetings to Celebrate the Success of the Union Army-- +News of the Death of Lincoln--I Attend the Funeral Services--General +Johnston's Surrender to General Sherman--Controversy with Secretary +Stanton Over the Event--Review of 65,000 Troops in Washington--Care +of the Old Soldiers--Annual Pension List of $150,000,000--I am Re- +elected to the Senate--The Wade-Davis Bill--Johnson's Treatment of +Public Men--His Veto of the Civil Rights Bill--Reorganization of +the Rebel States and Their Final Restoration to the Union. + +CHAPTER XVII. +INDEBTEDNESS OF THE UNITED STATES IN 1865. +Organization of the Greenback Party--Total Debt on October 31st +amounts to $2,805,549,437.55--Secretary McCulloch's Desire to +Convert All United States Notes into Interest Bearing Bonds--My +Discussion with Senator Fessenden Over the Finance Committee's Bill +--Too Great Powers Conferred on the Secretary of the Treasury--His +Desire to Retire $10,000,000 of United States Notes Each Month-- +Growth of the Greenback Party--The Secretary's Powers to Reduce +the Currency by Retiring or Canceling United States Notes is +Suspended--Bill to Reduce Taxes and Provide Internal Revenue--My +Trip to Laramie and Other Western Forts with General Sherman-- +Beginning of the Department of Agriculture. + +CHAPTER XVIII. +THREE MONTHS IN EUROPE. +Short Session of Congress Convened March 4, 1867--I Become Chairman +of the Committee on Finance, Succeeding Senator Fessenden--Departure +for Europe--Winning a Wager from a Sea Captain--Congressman Kasson's +Pistol--Under Surveillance by English Officers--Impressions of John +Bright, Disraeli and Other Prominent Englishmen--Visit to France, +Belgium, Holland and Germany--An Audience with Bismarck--His Sympathy +with the Union Cause--Wonders of the Paris Exposition--Life in +Paris--Presented to the Emperor Napoleon III and the Empress Eugenie +--A Dinner at the Tuileries--My Return Home--International Money +Commission in Session at Paris--Correspondence with Commissioner +Ruggles--His Report--Failure to Unify the Coinage of Nations-- +Relative Value of Gold and Silver. + +CHAPTER XIX. +IMPEACHMENT OF ANDREW JOHNSON. +Judiciary Committee's Resolution Fails of Adoption by a Vote of 57 +Yeas to 108 Nays--Johnson's Attempt to Remove Secretary Stanton +and Create a New Office for General Sherman--Correspondence on the +Subject--Report of the Committee on Impeachment, and Other Matters +Pertaining to the Appointment of Lorenzo Thomas--Impeachment +Resolution Passed by the House by a Vote of 126 Yeas to 47 Nays-- +Johnson's Trial by the Senate--Acquittal of the President by a Vote +of 35 Guilty to 19 Not Guilty--Why I Favored Conviction--General +Schofield Becomes Secretary of War--"Tenure of Office Act." + +CHAPTER XX. +THE FORTIETH CONGRESS. +Legislation During the Two Years--Further Reduction of the Currency +by the Secretary Prohibited--Report of the Committee of Conference +--Bill for Refunding the National Debt--Amounted to $2,639,382,572.68 +on December 1, 1867--Resumption of Specie Payments Recommended-- +Refunding Bill in the Senate--Change in My Views--Debate Participated +in by Nearly Every Senator--Why the Bill Failed to Become a Law-- +Breach Between Congress and the President Paralyzes Legislation-- +Nomination and Election of Grant for President--His Correspondence +with General Sherman. + +CHAPTER XXI. +BEGINNING OF GRANT'S ADMINISTRATION. +His Arrival at Washington in 1864 to Take Command of the Armies of +the United States--Inaugural Address as President--"An Act to +Strengthen the Public Credit"--Becomes a Law on March 19, 1869-- +Formation of the President's Cabinet--Fifteenth Amendment to the +Constitution--Bill to Fund the Public Debt and Aid in the Resumption +of Specie Payments--Bill Finally Agreed to by the House and Senate +--A Redemption Stipulation Omitted--Reduction of the Public Debt-- +Problem of Advancing United States Notes to Par with Coin. + +CHAPTER XXII. +OUR COINAGE BEFORE AND AFTER THE WAR. +But Little Coin in Circulation in 1869--General Use of Spanish +Pieces--No Mention of the Dollar Piece in the Act of 1853--Free +Circulation of Gold After the 1853 Act--No Truth in the "Demonetization" +Charge--Account of the Bill Revising the Laws Relative to the Mint, +Assay Offices and Coinage of the United States--Why the Dollar was +Dropped from the Coins--Then Known Only as a Coin for the Foreign +Market--Establishment of the "Trade Dollar"--A Legal Tender for +Only Five Dollars--Repeated Attempts to Have Congress Pass a Free +Coinage Act--How It Would Affect Us--Controversy Between Senator +Sumner and Secretary Fish. + +CHAPTER XXIII. +SOME EVENTS IN MY PRIVATE LIFE. +Feuds and Jealousies During Grant's Administration--Attack on Me +by the Cincinnati "Enquirer"--Reply and Statement Regarding My +Worldly Possessions--I Am Elected to the Senate for the Third Term +--Trip to the Pacific with Colonel Scott and Party--Visit to the +Yosemite Valley--San Diego in 1872--Return via Carson City and Salt +Lake--We call on Brigham Young--Arrival Home to Enter Into the +Greeley-Grant Canvass--Election of General Grant for the Second +Term. + +CHAPTER XXIV. +THE PANIC OF 1873 AND ITS RESULTS. +Failure of Jay Cooke and Co.--Wild Schemes "for the Relief of the +People"--Congress Called Upon for Help--Finance Committee's Report +for the Redemption of United States Notes in Coin--Extracts from +my Speech in Favor of the Report--Bill to Fix the Amount of United +States Notes--Finally Passed by the Senate and House--Vetoed by +President Grant and Failure to Pass Over His Objection--General +Effect Throughout the Country of the Struggle for Resumption-- +Imperative Necessity for Providing Some Measure of Relief. + +CHAPTER XXV. +BILL FOR THE RESUMPTION OF SPECIE PAYMENTS. +Decline in Value of Paper Money--Meeting of Congress in December, +1874--Senate Committee of Eleven to Formulate a Bill to Advance +United States Notes to Par in Coin--Widely Differing Views of the +Members--Redemption of Fractional Currency Readily Agreed to--Other +Sections Finally Adopted--Means to Prepare for and Maintain Resumption +--Report of the Bill by the Committee on Finance--Its Passage by +the Senate by a Vote of 32 to 14--Full Text of the Measure and an +Explanation of What It Was Expected to Accomplish--Approval by the +House and the President. + +CHAPTER XXVI. +RESUMPTION ACT RECEIVED WITH DISFAVOR. +It Is Not Well Received by Those Who Wished Immediate Resumption +of Specie Payments--Letter to "The Financier" in Reply to a Charge +That It Was a "Political Trick," etc.--The Ohio Canvass of 1875-- +Finance Resolutions in the Democratic and Republican Platforms--R. +B. Hayes and Myself Talk in Favor of Resumption--My Recommendation +of Him for President--A Democrat Elected as Speaker of the House-- +The Senate Still Republican--My Speech in Support of Specie Payments +Made March 6, 1876--What the Financial Policy of the Government +Should Be. + +CHAPTER XXVII. +MY CONFIDENCE IN THE SUCCESS OF RESUMPTION. +Tendency of Democratic Members of Both Houses to Exaggerate the +Evil Times--Debate Over the Bill to Provide for Issuing Silver Coin +in Place of Fractional Currency--The Coinage Laws of the United +States and Other Countries--Joint Resolution for the Issue of Silver +Coins--The "Trade Dollar" Declared Not to Be a Legal Tender--My +Views on the Free Coinage of Silver--Bill to Provide for the +Completion of the Washington Monument--Resolution Written by Me on +the 100th Anniversary of the Declaration of Independence--Unanimously +Passed in a Day by Both Houses--Completion of the Structure Under +the Act. + +CHAPTER XXVIII. +THE HAYES-TILDEN PRESIDENTIAL CONTEST. +Nomination of R. B. Hayes for President--His Fitness for the +Responsible Office--Political Shrewdness of Samuel J. Tilden, His +Opponent--I Enter Actively Into the Canvass in Ohio and Other States +--Frauds in the South--Requested by General Grant to Go to New +Orleans and Witness the Canvassing of the Vote of Louisiana-- +Departure for the South--Personnel of the Republican and Democratic +"Visitors"--Report of the Returning Board--My Letter to Governor +Hayes from New Orleans--President Grant's Last Message to Congress +--Letter from President Hayes--Request to Become his Secretary of +the Treasury. + +CHAPTER XXIX. +I BEGIN MY DUTIES AS SECRETARY OF THE TREASURY. +Legislative Training of Great Advantage to Me in My New Position-- +Loan Contract in Force When I Took the Portfolio--Appointment of +Charles F. Conant as Funding Agent of the Treasury Department in +London--Redeeming Called Bonds--Sale of Four Per Cent. Bonds Instead +of Four and a Half Per Cents.--Popularity of the New Loan--Great +Saving in Interest--On a Tour of Inspection Along the Northern +Atlantic Coast--Value of Information Received on This Trip--Effect +of the Baltimore and Pittsburg Railroad Strikes in 1877 Upon Our +Public Credit. + +CHAPTER XXX. +POLICY OF THE HAYES ADMINISTRATION. +Reception at My Home in Mansfield--Given by Friends Irrespective +of Party--Introduced by My Old Friend and Partner, Henry C. Hedges +--I Reply by Giving a Résumé of the Contests in South Carolina and +Louisiana to Decide Who Was Governor--Positions Taken by Presidents +Grant and Hayes in These Contests--My Plans to Secure the Resumption +of Specie Payments--Effects of a Depreciated Currency--Duties of +the Secretary of the Treasury--Two Modes of Resuming--My Mansfield +Speech Printed Throughout the Country and in England--Letters to +Stanley Matthews and General Robinson--Our Defeat in Ohio--An Extra +Session of Congress--Bills Introduced to Repeal the Act Providing +for the Resumption of Specie Payments--They All Fail of Passage-- +Popular Subscription of Bonds All Paid for. + + +CHAPTER I. +ANCESTRY OF THE SHERMAN FAMILY. +Family Name is of Saxon Origin--"Conquer Death by Virtue"--Arrival +of Rev. John Sherman at Boston in 1634--General Sherman's Reply to +an English Sexton--Career of Daniel Sherman--My First Visit to +Woodbury--"Sherman's Tannery"--Anecdote of "Uncle Dan"--Sketch of +My Father and Mother--Address to Enlisting Soldiers--General Reese's +Account of My Father's Career--Religion of the Sherman Family--My +Belief. + +The family name of Sherman is, no doubt, of Saxon origin. It is +very common along the Rhine, and in different parts of the German +Empire. It is there written Shearmann or Schurmann. I found it +in Frankfort and Berlin. The English Shermans lived chiefly in +Essex and Suffolk counties near the east coast, and in London. +The name appears frequently in local records. One Sherman was +executed for taking the unsuccessful side in a civil war. It was +not until the beginning of the 16th century that any of the name +assumed the arms, crest, and motto justified by their pride, property +or standing. The motto taken, "Conquer Death by Virtue," is a +rather meaningless phrase. It is modest enough, and indicates a +religious turn of mind. Nearly every family of the name furnished +a preacher. A few members of it attained the dignity of knighthood. +A greater number became landed property-holders, and more were +engaged in trade in London. Sir Henry Sherman was one of the +executors of the will of Lord Stanley, Earl of Derby, May 23, 1521. +William Sherman, Esq., purchased Knightston in the time of Henry +VIII; and a monument to him is in Ottery St. Mary, dated 1542. As +a rule the family belonged to the middle class and were engaged in +active occupations, earning their own bread, with a strong sense of +their rights and liberties as Englishmen. + +The principal family of the name in the 16th century were the +Shermans of Yaxley in the county of Suffolk, a full detail of which +is given in Davy's Collections of that county. Edmond Sherman, +my ancestor, was a member of this family. He was born in 1585 and +was married to Judith Angier, May 26, 1611. He resided at Dedham, +Essex county, England, then a place of some importance. He was a +manufacturer of cloth, a man of means and high standing. He was +a Puritan, with all the faults and virtues of a sectary. He resisted +ship-money and the tax unlawfully imposed on tonnage and poundage. +He had the misfortune to live at the time when Charles I undertook +to dispense with Parliament, and to impose unlawful taxes and +burdens upon the people of England, and when the privileges of the +nobility were enforced with great severity by judges dependent upon +the crown. He had three sons, John, baptized on the 4th of January, +1614; Edmond, baptized June 18, 1616, and Samuel, baptized July +12, 1618. He had a nephew, known as "Captain John," somewhat older +than his sons, who was an active man in 1634. + +At this time the migration to Boston, caused chiefly by the tyranny +of Charles I, was in active operation. Hume, in his history, says: + +"The Puritans, restrained in England, shipped themselves off for +America, and laid there the foundations of a government which +possessed all the liberty, both civil and religious, of which they +found themselves bereaved in their native country. But their +enemies, unwilling that they should anywhere enjoy ease and +contentment, and dreading, perhaps, the dangerous consequences of +so disaffected a colony, prevailed on the king to issue a proclamation, +debarring those devotees access, even into those inhospitable +deserts. Eight ships, lying in the Thames, and ready to sail, were +detained by order of the council; and in there were embarked Sir +Arthur Hazelrig, John Hampden, John Pym, and Oliver Cromwell, who +had resolved, forever, to abandon their native country, and fly to +the other extremity of the globe; where they might enjoy lectures +and discourses, of any length or form, which pleased them. The +king had afterward full leisure to repent this exercise of +authority." + +It appears that, influenced the same motives, Edmond Sherman +determined to remove his family, with his nephew, "Captain John," +to Boston. In one statement made in respect to them it is said +that the father and his three sons and nephew embarked for Boston, +but this is doubtful. It is certain, however, that his son, Rev. +John Sherman and his son Samuel, and his nephew "Captain John," +did go to Boston in 1634. It is quite as certain that if they were +accompanied by their father and their brother Edmond, that the two +latter returned again to Dedham in 1636. Edmond Sherman, senior, +lived and died at Dedham. One of his descendants, Rev. Henry Beers +Sherman, a few years ago visited Dedham and there found one of the +church windows of stained glass bearing the initials of Edmond +Sherman as having been his gift, and the record shows that one of +the buttresses of the church was erected at his expense. Mr. Henry +Beers Sherman there saw the pupils of a free school, endowed by +Edmond Sherman and still in operation, attending the church in +procession. + +When in London, in the summer of 1889, I concluded to make a visit +to "the graves of my ancestors." I examined Black's Universal +Atlas to locate Dedham, but it was not to be found. I made inquiries, +but could discover no one who knew anything about Dedham, and +concluded there was no such place, although I had often read of +it. I was compelled, therefore, to give up my visit. + +Senator Hoar, a descendant, through his mother, of Roger Sherman +of Revolutionary fame, was more fortunate or more persistent than +I, for he subsequently found Dedham and verified the accounts we +had of our common ancestor, and procured photographs, copies of +which I have, of the monument of Edmond Sherman, of the church near +which he was buried, and of the handsome school building, still +called "the Sherman Library," that he had left by his will for the +youth of Dedham, with a sufficient annuity to support it. Dedham +is but two or three miles from Manningtree, a more modern town on +the line of railroad, which has substantially obscured the ancient +and decayed village of Dedham. + +The sexton of this church wrote General Sherman soon after he had +become distinguished as a military leader, calling his attention +to the neglected monument of his ancestor, Edmond Sherman, in the +churchyard, and asking a contribution for its repair. The general +sent a reply to the effect that, as his ancestor in England had +reposed in peace under a monument for more than two centuries, +while some of his more recent ancestors lay in unmarked graves, he +thought it better to contribute to monuments for them here and +leave to his English cousins the care of the monuments of their +common ancestors in England. This letter is highly prized by the +sexton and has been shown to visitors, among others to Senator +Hoar, as a characteristic memento of General Sherman. + +Captain John Sherman, "Captain John," soon after his arrival in +Boston, settled in Watertown, Mass., where he married and had a +large family of children. Among his descendants was Roger Sherman +of the Revolution, by far the most distinguished man of the name. +He had the good fortune to contribute to and sign the three most +important papers of American history, the "Address to the King," +the "Declaration of Independence" and the "Constitution of the +United States." Among other descendants of Captain John Sherman +were Hon. Roger Minot Sherman, of New Haven, a nephew of Roger +Sherman, a distinguished lawyer and a leading participant in the +Hartford Convention. William M. Evarts, George F. Hoar and Chauncey +M. Depew are descendants of Roger Sherman or of his brother. + +Rev. John Sherman, the eldest son of Edmond Sherman, was born on +the 26th of December, 1613, at Dedham, England. He graduated at +Immanuel College, Cambridge, left college a Puritan and came over +to America in 1634, as above stated. He preached his first sermon +at Watertown, Massachusetts, under a tree, soon after his arrival +in this country. In a few weeks he went to New Haven, Connecticut, +and preached in several places, but finally settled at Watertown, +where he had a large family of children. His numerous descendants +are well distributed throughout the United States, but most of them +in the State of New York. + +Samuel Sherman, the youngest son of Edmond Sherman, is the ancestor +of the family to which I belong. At the age of sixteen years he +came with his brother, Rev. John and his cousin "Captain John," in +April, 1634, in the ship "Elizabeth" from Ipswich, and arrived in +Boston in June, and for a time settled in Watertown, Massachusetts. +He afterward moved to Weathersfield, Connecticut, thence to Stamford +and thence to Stratford. + +In Cothron's "History of Ancient Woodbury" there are found full +details of the life of Samuel Sherman and his numerous descendants +to the present generation. Of Samuel Sherman Mr. Cothron says: + +"He was from Dedham, Essex county, England, came to this country +in 1634, and previous to the date of the new plantation, at Woodbury, +had been a leading man in the colony of Connecticut. He had assisted +in the settlement of several other towns in the colony, and now +undertook the same for Woodbury. He had been a member of the Court +of Assistants, or Upper House of the General Court, and Supreme +Judicial Tribunal, for five or six years from 1663, and held various +offices and appointments of honor and trust. He is referred to in +ancient deeds and documents as the 'Worshipful Mr. Sherman.' In +1676 he was one of the commission for Stratford and Woodbury." + +The order of succession of the descendants of Samuel Sherman, the +ancestor of the family to which I belong, is as follows: + +1. John Sherman, the fifth child of Samuel Sherman, was born at +Stratford, Conn., February 8, 1650. He early moved to Woodbury. +He died December 13, 1730. + +2. John Sherman 2nd, the fifth child of John, was baptized June, +1687. He married Hachaliah Preston, July 22, 1714. He died 1727. + +3. Daniel Sherman, the third child of John 2nd, was born August +14, 1721, and died July 2, 1799. + +4. Taylor Sherman, the sixth child of Daniel, was born in 1758. +He married Elizabeth Stoddard in 1787, and died in Connecticut May +15, 1815. His widow died at Mansfield, Ohio, August 1, 1848. + +5. Charles Robert Sherman, the eldest child of Taylor, was born +September 26, 1788, married Mary Hoyt, of Norwalk, Conn., May 8, +1810. He died on the 24th of June, 1829. His widow died at +Mansfield, Ohio, September 23, 1852. The had eleven children, six +sons and five daughters, all of whom lived to maturity. I am the +eighth child of this family. + +The names and dates of the birth of the children of my parents are +as follows: + + Charles Taylor Sherman . . . . . February 3, 1811. + Mary Elizabeth Sherman . . . . . April 21, 1812. + James Sherman . . . . . . . . . December 10, 1814. + Amelia Sherman . . . . . . . . . February 11, 1816. + Julia Ann Sherman . . . . . . . July 24, 1818. + William Tecumseh Sherman . . . . February 8, 1820. + Lampson Parker Sherman . . . . . October 31, 1821. + John Sherman . . . . . . . . . . May 10, 1823. + Susan Denman Sherman . . . . . . October 10, 1825. + Hoyt Sherman . . . . . . . . . . November 1, 1827. + Fanny Beecher Sherman . . . . . May 3, 1829. + +Mr. Cothron, in his "History of Ancient Woodbury," after referring +to Samuel Sherman, makes this reference to his son John: + +"The fame of his son John is particularly the property of the town. +He was distinguished, not only at home, but also in the colony. +He was Justice of the Quorum, or Associate County Judge, for forty- +four years from 1684; a Representative of the town for seventeen +sessions, and Speaker of the Lower House in May and October, 1711, +and Captain in the Militia, a high honor in those days. He was +the first Judge of Probate for the District of Woodbury, from its +organization in 1719, for nine years. The District them comprised +all of Litchfield county, and Woodbury in New Haven county. He +was an assistant, or member of the Upper House, for ten years from +1713." + +John Sherman 2nd, does not seem to have taken any active part in +public affairs, and died before his father, at the age of forty. +His son Daniel, who lived to the age of eighty, covering the period +of the Indian wars, the French Canadian war, and the war of the +Revolution, took an active part in all the great events of that +period. Mr. Cothron says of him: + +"Judge Daniel Sherman was perhaps the most distinguished man that +had arisen in the town previous to his day. He was a descendant +of Samuel Sherman, of Stratford, Connecticut, who emigrated to this +country from England, in company with his brother, Rev. John Sherman, +and his nephew, Captain John Sherman, ancestor of Hon. Roger Sherman. +He was a Justice of the Quorum for twenty-five years, and Judge of +the Litchfield County Court five years from 1786. For sixteen +years he was Probate Clerk for the District of Woodbury, and Judge +of that District thirty-seven years. He represented his native +town in the General Assembly sixty-five semi-annual sessions, +retaining the unbounded confidence of his fellow citizens. This +was by far the longest period of time anyone has ever represented +the town. He was a man of commanding powers of mind, of sterling +integrity, and every way qualified for the various public trusts +confided to this care. He died at a good old age, full of honor, +and was followed by the affectionate recollections of the inhabitants +of the town, among whom he had so long lived." + +No portion of the people of the United States took a more decisive +part in the Revolutionary contest of 1775 than those of Connecticut. +The people of Woodbury caught the prevailing spirit, and, as early +as September 20, 1774, had a public meeting and made patriotic +resolves, and entered into associations for defense. Daniel Sherman, +then fifty-four years old, presided at this meeting and was appointed +president of the association of the delegates. Among other duties +they were to perform, was to ascertain whether any persons within +the limits of the town were hostile to the objects of the association, +and in that case they, using the spelling of the time, were to + +"Cause the truth of the case to be published in the Gazette, to +the End that all such foes to ye Rights of British americai may be +publikly known and universially Comtemned as enemies to american +Liberty and thensforth we Do bind ourselves to break off all Dealings +With Such Persons and also will all Persons in other Towns and +Citys who shall be found Guilty as above Expressed, and that it +shall be ye Duty and Business of the sd Comtee to Receive and +Communicate all Such intelligence as they shall judge to be conducive +to ye Peace and Tranquility of this and the Neighboring Colonies; +this meeting presents their most thankfull acknowledgments to those +truly Honourable and Worthy Gentlemen members of ye Congress who +have Shewn themselves able advocates of the civil and Religious +liberty of the american Colonys. + +"Voated, that the doings of this meeting be Recorded by the Town +Clerk, and a Copy thereof be forthwith sent to one of the printers +of the Connecticut Journal to be published accordingly. The Whole +of the above Written as voated in said Meeting." + +He was a member of the "Committee of Inspection" of thirty, appointed +at the beginning of the war. On the 12th of April, 1784, they +resolved as follows: + +"Voted, that those persons who joined the enemies of the United +States in the course of the late Civil war of what description +soever are denyed a residence in this Town from this date until +the Genll Assembly shall grant them full liberty for that purpose." + +At a meeting held on the 3d of April, 1777, at which Daniel Sherman +was the Moderator, it was: + +"Voated, that Each Able Bodied Effective man, who hath or shall +voluntarily Inlist into the Continental Army in such way and Manner +toward makeing the Quota of this Town for the space of Three years, +or during the war shall be Intitled to Receive out of the publick +Treasury of the Town the sum of Twenty Shillings Lawful money, as +an Addition to Each month's Wages he shall continue in the service, +to be paid to him, or to his order, at the End of Each six month's +service." + +This was kept up during the war. Provision was made for a Council +of Safety, appointed annually by the Assembly, of from nine to +fourteen of the most distinguished men in the state, to aid the +governor in the organization and conduct of troops, of which Daniel +Sherman, his cousin Roger Sherman, Benjamin Huntington, and other +distinguished men were members. This committee was frequently in +session and the most responsible, arduous and difficult details of +the service were confided to its care. It was shown that during +the war Daniel Sherman contributed provisions to soldier's families +to the value of 2,718 pounds, 7 shillings and 8 pence. It would +seem from the following anecdote told of Daniel Sherman, that some +of his neighbors thought he had enjoyed his full share of honor: + +"Mr. Sherman was a representative at the May session of the General +Assembly in 1791, and, it is related, desired to be elected to the +October session of the same year, in order to make the full number +of thirty-three years that he would have then represented the town. +But at the time of the election for the October session, the +Moderator of the meeting happened to think that he had his share +of honors, and when he made proclamation that the ballot-box was +open for the reception of votes, remarked in a loud tone of voice, +'Gentlemen, the box is now open; you will please to bring in your +ballots for him whom you _will have_ for your first representative +--_Honorable Daniel Sherman, of course!_ This simple incident gave +a change to the popular current, and on counting the votes it was +found that Honorable Nathaniel Smith was elected, instead of Mr. +Sherman." + +Taylor Sherman, my grandfather, the son of Judge Daniel Sherman, +was born in 1758. He was married in 1787 to Elizabeth Stoddard +and removed to Norwalk, Connecticut, where he lived during the +remainder of his life. He died on the 15th of May, 1815. + +My grandmother was born at Woodbury, Connecticut, on the 14th of +June, 1767. She lived to a good old age and died at Mansfield, +Ohio, on the 1st of August, 1848. She was a remarkable woman in +many respects, a Puritan of the strictest faith, of large mold, +being nearly six feet tall, and well proportioned. She was a +granddaughter of Rev. Anthony Stoddard, a man whose history strikingly +presents the peculiar characteristics of life in Connecticut during +the 18th century. The contract between the church and town of +Woodbury and Mr. Stoddard, for employment as pastor, commences as +follows: + +"At a lawfull Towns-meeting ye 13th of August, 1700, in ordr to ye +settling of ye Reverend mr. Anthony Stoddard amongst us, in ye work +of ye ministry. And for his encouragement so to do; + +"It was voted and agreed to allow him, as Maytenance in ye Work of +ye Ministry, seventy pounds per Anuu, in provision pay, or to his +Satisfaction, in Case of Faylure of provision pay. By provision +pay, is intended, whet, pease, indian corn & pork, proportionally: +Also fire wood: + +"We do also promise, to build him an house here in Woodberry of +known Demensions; yt is to say, the Carpetners work & Masons work; +hee providing nayles and glass; by building ye sd house is intended, +doors, floures, fitting up and playstering and partitions, finishing +it, as also a well." + +Then follow many other mutual stipulations, to which was added a +supplemental agreement as follows: + +"Since wch time at a Lawfull Towns-meeting ye 25th of Novembr, +1700, It was Voted and agreedyt ye abovesd specices for mr Stoddard's +yearly maytenance bee levyed at ye prices following: Wheat at 4s +6d per Bush: pork at 3d pr lb: Indian Corn 2s 6d per Bush: Pease +three shillings per Bushll: And these prices for this yeare ye +Town will not vary from for ye future Exterordinary providences +interposing being exceapted. + +"Recorded from ye originalls pr Jon Minor, Recorder, March, 1700- +1701." + +Under this contract Mr. Stoddard served his congregation for sixty +years, and died September 7, 1760, in his eighty-third year, and +the sixty-first of his ministry. He was educated at Harvard College +and graduated in 1679. Mr. Cothron, in 1872, says of him: + +"He was at the same time minister, lawyer and physician. Like many +of the early ministers of the colony, he prepared himself for the +practice of physic, that he might administer to the wants of the +body, as well as those of the mind. In this capacity he was often +called. The only person the author has found who ever saw him, +was Deacon Amos Squire, of Roxbury, who died two or three years +ago, aged ninety-nine, and who recollected having seen him when a +lad about eight years of age, while on a visit in this capacity to +his father, who had received a severe wound from an ax. He had +also done what other ministers did not, and that was to perfect +himself in legal knowledge." + +It must be remembered that the pastor of a church in those days +was in quite a different position than one now, when the constitution +guarantees to every one liberty to worship God according to the +dictates of his conscience. The Congregational mode of worship +was then adopted and established by law in Connecticut, but it was +provided that all sober orthodox persons dissenting therefrom +should, on representing it to the General Court, be allowed to +worship in their own way. Such a privilege, however, was regarded +with distrust. Our fathers who desired religious freedom and +periled all for it in the wilderness, had not anticipated that they +would speedily have an opportunity to extend that toleration to +others which in the fatherland they had in vain sought for themselves. +The town church was, therefore, in substance, the only church, and +the preacher was the autocrat of the place. + +Mr. Stoddard was not only a preacher, lawyer and doctor, but he +was also a fighter. In 1707 an expedition was made by the French +and Indians against New England, which created general alarm +throughout the country. Woodbury was exposed to the raids made by +the Indians, and suspicions were entertained that the neighboring +tribes would join the French and Indians in their foray. During +the continuance of this war, on one Sabbath evening, after the +conclusion of the services at church, while he was walking in his +garden, he discovered an Indian skulking among the surrounding +trees and bushes. Apparently without noticing the movements of +the Indian, he contrived to re-enter his house, and obtained his +gun. After playing the same game of skulking with his adversary +for a while, Mr. Stoddard got a fair view of him, discharged his +piece, and the Indian fell among the bushes. He dared not investigate +farther that night, but having quietly given the alarm, the +inhabitants sought their palisaded houses for the night. Early in +the morning he discovered another red foe, in the vicinity of his +companion, and whom he also laid low with his musket. By this time +the people had assembled, and after the country was scoured in all +directions for several hours, and no other savages were found, the +alarm subsided. + +Before leaving my Woodbury ancestors, who resided there nearly one +hundred and fifty years, I wish to relate my first visit to Woodbury. +I was at West Point, as one of the Board of Visitors, one Saturday +in June, 1873, when I concluded to respond to an invitation I had +received, and go to Woodbury and spend the Sabbath there. I did +so and found, as I had anticipated, beautiful valleys with picturesque +hills, a rural air and a quiet, peaceful, Sunday outlook. I knew +no one except Hon. William Cothron, and him only by correspondence. +I believe he was superintendent of the Sunday school; but, at all +events, upon my presenting myself, and stating my desire to explore +Woodbury, he kindly consented, and went with me. I located many +of the most interesting objects in the town. The large, well-built +stone house of Daniel Sherman was still standing, made after the +usual pattern, two stories high with a lean-to roof in the rear, +and with low ceilings. He had lived there during most of his active +life, and had entertained Washington and Lafayette, when they at +different times visited the French vessels at Newport. The fortified +house of Rev. Anthony Stoddard was in a good state of preservation, +with its projecting eaves and loop holes for defense. We visited +the old church and graveyard, and drove southward to what were +called the "Sherman settlements." Evidently the comparatively few +families in Woodbury were in a state of comfort as they were found +to be living in good houses and drawing, no doubt, an income from +investments in the great and growing West. + +On that quiet Sabbath day the village of Woodbury recalled to me +Mr. John H. Bryant's description of his native village: + + "There lies a village in a peaceful vale, + With sloping hills and waving woods around, + Fenced from the blasts. There never ruder gale + Bows the tall grass that covers all the ground; + And planted shrubs are there, and cherish'd flowers, + And a bright verdure born of gentle showers." + +Subsequently I again visited Woodbury with General Sherman. Mr. +Cothron was still there and was very kind to us. It seemed to me +that the old place had run down a little, that the walks were not +so clean, the grass was not as fresh in the fields, and evidently +the graveyards had lost some of their monuments, but a prominent +one had been erected in the churchyard to Rev. Anthony Stoddard, +to which General Sherman had contributed. We heard of no one of +our name in Woodbury, but when General Sherman saw an old sign, +"Sherman's Tannery," he said that he believed he had at last found +some tangible evidence of the residence of our fathers in Woodbury; +that Sherman had been a good honest tanner no doubt, and that was +the most that could be said of any one. + +As I have said, my grandfather, Taylor Sherman, and his wife, +Elizabeth Stoddard, moved from Woodbury to Norwalk, where he +practiced his profession as a lawyer. He attained a good position +as such, and for many years he was a Judge of Probate. He became +early associated with the proprietors of the half million acres of +land lying in the western part of the Western Reserve in Ohio, +called "Sufferers' Land." + +In the period immediately before and after the adoption of the +constitution several of the states laid claim to western lands, +founded upon grants by James I, the chief of which were the claims +of Virginia to the region north and west of the Ohio River, and +the claim of Connecticut to all the land lying west of Pennsylvania +to the South Seas and north of the 41st parallel of latitude. +These claims were finally compromised by Congress granting to +Virginia all the land lying between the Scioto and the Miami Rivers +in Ohio, and to Connecticut the land in Ohio north of the 41st +parallel, extending westward of Pennsylvania one hundred and twenty +miles. + +During the Revolutionary War the coasts of Connecticut had been +subjected to several raids by the British and Tories, and several +towns, including Norwalk, Greenwich, Fairfield, Danbury, New Haven +and New London, had been burned. Indemnity had been proposed, but +the state was in no condition to pay such losses. + +In the year 1800, the State of Connecticut granted to her citizens, +who were sufferers by fire during the Revolutionary War, a half +million acres of land, lying within the State of Ohio, which was +to be taken off the west part of what was called the "Western +Connecticut Reserve," now embraced in the counties of Huron and +Erie. By an act of the legislature of the State of Ohio, passed +in 1803, the sufferers were incorporated under the name of "The +proprietors of the half million acres of land, lying south of Lake +Erie, called 'Sufferers' Land.'" The affairs of this company, by +that act, were to be managed by a Board of Directors which, among +other things, was authorized to locate and survey said half million +acres of land, and partition it among the different claimants. + +On the first day of November, 1805, Taylor Sherman was appointed +by the Board of Directors an agent to survey the above tract of +land, and, on the 16th day of December, of the same year, he entered +into a contract with John McLane and James Clarke, Jr., to survey, +or have surveyed, said tract. Taylor Sherman visited the fire +lands, and fully performed the duty imposed upon him. He also +purchased a considerable tract of this land in Sherman township, +Huron county, which was the foundation of the little fortune which +he left to his widow and children. + +The whole of the Western Reserve, especially the western part of +it, was at that time in the possession of the Indians, who soon +afterwards engaged in open warfare with the white settlers. Surveys, +especially along the shores of Lake Erie, were extremely difficult, +owing to extensive bayous and swamps, but the surveys were made +where practicable, and where lines could not be run, straight lines +were drawn on the map, and the contents estimated. This gave rise +to long litigation, one case being reported in the 13th Volume of +Ohio Supreme Court Reports. + +The gift of Connecticut to the sufferers was a wise and liberal +one, and after the War of 1812 it led to the migration to the +counties of Huron and Erie of a great number of persons from the +towns of Norwalk, Greenwich, Danbury, New Haven and New London. +The losses of the sufferers in these different towns had been +carefully examined and stated, and the sufferers were allowed land +in proportion to their losses. The formidable list of these +sufferers is a striking proof of the savage and destructive manner +in which the Revolutionary War was conducted by the British troops. +The whole Western Reserve at the beginning of the 19th century was +a wilderness, with not a single white inhabitant. The census of +1820, however, showed that it then contained a population of 58,608, +while that of 1890 showed a population of 678,561. Of these a +larger number and proportion were descendants of Connecticut parents +than are most inhabitants of that state. The industries, commerce, +wealth and intelligence of this region are not excelled by any +community of the same size anywhere else in the country. + +As an illustration of the condition of this region in 1812, it may +be worth while to here record a truthful anecdote of Daniel Sherman, +the son of Taylor Sherman, and whom we knew as "Uncle Dan." In +the spring of 1812, when twenty-two years of age, he was sent by +his father to make improvements on his land in Huron county, by +building a log cabin and opening a clearing. He had with him a +hired man of the name of John Chapman, who was sent to Milan, twelve +miles away, to get a grist of corn ground, it being the nearest +and only mill in the county. Either on the way there, or while +returning, Chapman was killed by the Indians. Uncle Dan did not +hear of this until the next day, when, with a knapsack on his back, +he started for Mansfield, forty miles away. For thirty miles there +was a dense and unbroken forest without a settler. He arrived at +a blockhouse, six miles from Mansfield, but concluded that was not +strong enough to protect him. He then went to Mansfield, where +they had a better blockhouse, but he heard so many stories of +Indians that he did not feel safe there, and walked thence to his +brother's house in Lancaster, about seventy-five miles away, through +an almost continuous forest. + +In November, 1813, Taylor Sherman was appointed, by President +Madison, Collector of Internal Revenue for the Second District of +Connecticut. He enjoyed the office but a short time and died, as +already stated, on the 15th day of May, 1815. + +A sketch of my mother and father will throw some light upon the +lives of their children, but it is a delicate task to write of +one's parents. As I was but six years old when my father died I +have only a dim recollection of him, but materials for an interesting +sketch of his brief but active career are abundant. I know of no +citizen of Ohio of whom more anecdotes have been told, or whose +general and social life has been more highly appreciated, or whose +popularity has been more marked, than that of my father. During +the early years of my life at the bar I met many of the older +lawyers, contemporary with my father, and they all spoke of him in +the highest praise, and generally had some incident to tell of him +that happened in the days of the "Stirrup Court." + +Charles Robert Sherman, my father, was born in Norwalk, Connecticut, +September 26, 1788, the eldest son of Judge Taylor Sherman and +Elizabeth Stoddard. He received the best educational advantages +of his day, and, when fully prepared, commenced the study of law +in the associated offices of his father and the Hon. Judge Chapman. +He was admitted to the bar in 1810, and on May 8, of that year, +married Mary Hoyt, also of Norwalk, who had grown up with him from +childhood. He could not go into the northern part where his father's +land lay, as it was then roamed over by hostile Indians, but followed +the usual route to Ohio by Pittsburg and Wheeling to Zanesville. +He located at Lancaster, but returned to Norwalk, Connecticut, in +the fall of 1810. In 1811 he returned to Lancaster, accompanied +by his wife. Ohio was then a frontier state, and in large portions +of its territory an unbroken wilderness. The way to it from their +New England home was far and weary, beset with many hardships and +exposed to great dangers. My father and mother were obliged to +journey the greater part of this distance on horseback, alternately +carrying their infant child upon a pillow before them. I only +advert to these incidents as they illustrate the self-reliant +character of the man, and the brave, confiding trust of his wife. +The little boy they carried upon the pillow, then their only son, +was Charles Taylor Sherman. + +Soon after their arrival in Lancaster my father took a leading part +in the measures of defense against the British and Indians. I find +in an old and weather-beaten newspaper of Lancaster, Ohio, called +the "Independent Press," that on the 16th of April, 1812, at a +meeting of the first regiment of the first brigade of the third +division of the militia of Ohio, assembled at Lancaster for the +purpose of raising a company of volunteers to march immediately to +Detroit, my father, then major of that regiment, made a very +effective address to the regiment, the result of which was the +voluntary enlistment of the company required from Fairfield county. +He was then twenty-four years of age, and as this address is short, +and is the best evidence of his mental qualities, and of the standing +he had so early attained among the hardy settlers of that section, +mostly from Pennsylvania, I here insert a portion of it: + +"_Fellow Soldiers:_--The crisis has arrived in which your country +calls upon you, her constitutional guardians, to rally round her +standard and to defend her rights and liberties--you are this day +assembled to declare whether you will voluntarily answer this call +or not. Fellow soldiers, the general of brigade and at whose +command and in whose name I now address you, cannot help but believe +that in this regiment which he once had the honor, personally, to +command, those choice spirits are to be found, that will not for +a moment hesitate to come forward and give the answer to their +country's call. + +"You are not called upon to guard a tyrant's throne, or to enslave +a nation of freemen, neither are your exertions required to redress +a fancied wrong, or to revenge a supposed insult; but you are called +upon to preserve your own dwellings from the flames--your families +from destruction. Neither are you requested to go unprotected nor +unprovided;--everything that the patriot soldier could possibly +wish will be furnished you by the government--food complete and +sufficient for the necessities or conveniences of life--compensation +for your clothing,--arms of the best quality will be placed in your +hands, which will be generously given you if you do, as I know you +will, your duty. + +"Should you chance to be disabled in the service, a pension will +be given you that will enable you to live in comfort and in ease; +or should the fortune of war number you with those brave and gallant +patriots that fearlessly poured out their life's blood upon the +heights of Bunker, the plains of Saratoga, or at the siege of +Yorktown--your families shall not be left unprotected or unprovided; +a generous and faithful government has promised that one hundred +and sixty acres of land shall be given to your heirs, the more than +means of existence, the means of every comfort that can render that +existence desirable. + +"These, then, fellow soldiers, are the terms upon which sixty-four +of you are requested to draw your swords, shoulder your arms and +march to Detroit to defend the frontiers of your own territory. +And from these columns are there not more than this small number +that would rush upon even certain death at their country's call? + +"The services required of you will not be arduous--'tis not that +you should invade the territory of a distant enemy--'tis not that +you should march far from your homes to fight battles in which you +are not, and which you do not feel yourselves, interested; but it +is to prevent the hostile foot of a foe from invading your territory +--it is to guard the sacred altar of your liberties, cemented by +the blood of your fathers, from the profanation of a tyrant's +polluting touch--it is to guard your dwellings, your friends, your +families, your all, from the desolating warfare of a fell savage +foe--it is that the midnight and sleeping couch of our infants may +not be awakened to death by the tremendous yell of an Indian warwhoop +--it is that the gray hairs of our fathers may not become the bloody +trophies of a cruel and insidious foe. Cruelty and a thirst for +blood are the inmates of an Indian's bosom, and in the neighborhood +of two contending powers they are never peaceful. If the strong +hand of power does not bend them down they will raise the tomahawk +and bare the scalping knife for deeds of blood and horror: The +purity of female innocence, the decrepitude of age, the tenderness +of infancy afford no security against the murderous steel of a +hostile Indian: to guard against the probable incursions of bands +of these murderers, I will not call them by the dignified name of +warriors, are you called upon to arm: and who in such a cause would +refuse to march or to bleed? And who would refuse to protect the +scattered settlements on our frontiers--the humble cottage and its +peaceful inhabitants?--Who would refuse to guard our fields from +desolation, our villages from destruction, or our towns from ruin? +--None, in whom there is a spark of patriot valor. + +"But, fellow soldiers, you may be called upon the meet the legions +of Great Britain; every appearance indicates a state of approaching +hostilities--year after year has insult been added to insult--injury +has followed injury with rapid strides, and every breeze comes +laden with its tale of wrongs, and while we have borne their injuries +and their insults our government has endeavored, but in vain, to +reconcile our differences by amicable negotiation. + +"The cup of our wrongs is full, and the voice of an indignant people +demands redress and revenge by every means in our power; 'tis that +voice that calls upon you to arm and meet the hosts of England. + +"Do you fear the event of the contest? Call but to mind the period +of '76, without a government, without friends, without armies, +without men, without money, our fathers dared to resist her +aggressions upon our liberties; she determined to enslave us, and +a hardy band of freemen resolved on death rather than slavery, +encountered and conquered her boasted legions, established our +independence and left it as their richest legacy for us to maintain: +and do we, their sons, possessing all the advantages that we could +wish, all that they were deprived of, do we fear the contest when +half the world is confederate against her? Where is the spirit of +our fathers that urged them to battle and to victory? Is there no +latent spark of patriot ardor that the wrongs and indignities of +our country will kindle into a flame? Is there no thirst in our +bosoms for glory? Is it nothing for your names to be enrolled on +the list of fame? Does it rouse no generous and noble feelings in +your breasts to be a guardian shield and avenging sword to your +country? Are the grateful thanks of your countrymen and posterity +no inducement to valorous acts? + +"Go then, fellow soldiers, assist to shield your country from the +destruction of an internal warfare, awake to honor and to glory, +rouse the native courage of an American freeman and march to deeds +of valor! + +"Let the wings of fame come laden with the tale of your honors, +and bring joy to your mothers' hearts, and the pride of valorous +deeds to your fathers' bosoms; then shall your country reward and +bless you--posterity shall venerate your names, the world shall +own you as the constituent guardians of liberty and the bulwark of +your nation's freedom!" + +I presume the soldiers enlisted at Lancaster were a part of the +army infamously surrendered by General Hull on the 16th of August, +1812. This event opened up the whole of the then western states +and territories to the inroads of the British and Indians, but was +brilliantly compensated by the splendid victory of Commodore Perry +at the battle of Lake Erie, on the 10th of September, 1813, in +which he destroyed the British fleet and announced his victory in +the stirring words, "We have met the enemy, and they are ours!" +This was followed by the complete triumph of General Harrison in +the battle of the Thames, October 5, 1813, in which Tecumseh was +killed, and the power of the British and Indians in that portion +of the field of operations practically destroyed. + +My father was appointed by Mr. Madison, on the 9th of November, +1813, as Collector of Internal Revenue for the Third District of +Ohio. He was then engaged in the active practice of his profession. +He was required to employ deputies in each of the counties of +Fairfield, Pickaway, Madison, Franklin, Delaware, and Knox to +collect internal revenue taxes, when assessed. He took great care +in the selection of his deputies, and in all cases required bonds, +with security, from each deputy. At this period the only money in +Ohio was local bank paper money. No silver or gold coins could be +had, and the purchasing power of notes varied with the success or +defeat of our armies in the field. Internal taxes were imposed on +distilled spirits, on the retailing of spirits, on salt, sugar, +carriages, sales at auction, a stamp duty of one per cent. on bank +notes, on all notes discounted by a bank, and on inland bills of +exchange. + +It is clearly shown by the papers on file in the treasury department +that Mr. Sherman exercised the utmost care in the collection of +these taxes through his deputies. No difficulty seems to have +occurred until July, 1817, when the government, without previous +notice, refused to take the paper then in circulation in Ohio, but +demanded notes of the Bank of the United States, or its branches, +one of which was located at Chillicothe. This left upon the hands +of his deputies a large amount of money that soon became utterly +worthless. The system of local banking failed and the loss fell +upon the holders of notes, and, largely, upon the collectors of +internal revenue and their deputies. Among my father's deputies +the principal one seems to have been Peter Apple, of Pickaway +county, who at the time of his appointment held a county office, +was postmaster, and a justice of the peace. He was a leading man, +of high character and standing, and supposed to be of considerable +wealth. In 1817 he became embarrassed and insolvent, and was +removed from his position as deputy. His bonds proved worthless, +and the whole loss and liability fell upon my father. This, with +other losses occurring through the failure of other deputies, was +the most unfortunate event of his life. His correspondence with +the Internal Revenue Bureau shows that he exercised the utmost care +in keeping and reporting his accounts, and the difficulties and +losses he sustained in converting local bills into such notes as +the government would receive in payment of taxes. It is clearly +shown that the loss was not caused by any failure or neglect on +his part. In like circumstances, under the existing law, Congress +has, in all cases where due diligence on the part of the collector +has been proven, relieved the collector. My father declined to +make any appeal for such relief, but applied the proceeds of all +his property, and a large part of his earnings, to make good, as +far as he could, the defalcations of his deputies. This loss was +a great embarrassment for him and his family during his life. It +did not affect his standing, either at home or with the government, +but it deprived him of many comforts, and his family of advantages +and opportunities for education which they otherwise would have had. + +In the spring of 1815 my father was notified of the illness of his +father in Norwalk, and immediately went to Connecticut, but, owing +to the nature of the long journey, did not arrive until after his +father's death. The will of Taylor Sherman gave to his wife, and +daughter Elizabeth, all his real and personal estate in the State +of Connecticut, subject to the payment of his debts, which were +very small. He bequeathed to his two sons, Charles Sherman and +Daniel Sherman, ceratin lands in the town of Sherman, county of +Huron, Ohio, being part of the "Sufferers' Lands." The remainder +of his property lying in the State of Ohio he gave equally to his +wife and children. The estate was soon settled, and in the following +year, 1816, my grandmother and her daughter, Elizabeth, moved to +Ohio and became a part of the family of my father. + +Under the old constitution of Ohio prior to 1850, the Supreme Court +was composed of four judges. They met at Columbus in the winter +to hold the court of last resort, but at other seasons they divided +into circuit courts composed of two judges, and went from county +to county attended by a bevy of the leading lawyers of the state, +all mounted on horseback and always ready for fun or frolic. I +gladly acknowledge that I have received many a kindness, and much +aid in business as well as political and social life, from the +kindly memory of my father. I shrink from writing of his personal +traits and genial nature, but insert, instead, brief extracts from +a sketch of him written, in 1872, as a part of a local history of +Fairfield county, Ohio, by General William J. Reese, who knew him +intimately. General Reese says: + +"Established permanently at Lancaster in the prosecution of his +profession, the subject of this sketch rapidly rose to eminence as +a polished and eloquent advocate, and as a judicious, reliable +counsellor at law--indeed, in the elements of mind necessary to +build up and sustain such a reputation, few men were his equals, +and fewer still his superiors, in the State of Ohio or out of it. +But it was not only in the higher region of legal attainments that +he gained superiority; his mind was enriched with choice classic +cultivation also. + +"Judge Sherman not only mastered the intricacies of Coke and +Littleton, but, as I have stated, he made himself familiar with +whatever was worthy of reading outside the books of law, and was +therefore fitted to shine in the domain of general literature as +well as in the realm of technical jurisprudence. + +"During the pioneer years of Ohio its lawyers were obliged to +perform extensive circuits to practice their profession; they were +accustomed to accompany the courts from county to county, and in +this way to traverse an extent of country which, being uncalled +for at present, would appear fabulous in statement and difficult +to realize. + +"Those early days also commemorated the warmest personal friendships +in the profession, and, indeed, this could hardly have been otherwise, +as they compelled its members into the closest habitual companionship. +They rode together in the same primitive style, their saddle-bags +stuffed with papers, documents, briefs, law-books, clothing, and, +peradventure, some creature delectation also. They were exposed +in common to the same inclemencies and impediments of travel, they +lodged together at the same inns or taverns, messed at the same +table, slept in the same rooms, and were not unfrequently coerced +by twos into the same bed. Free, jovial, genial, manly, and happy +times they were, when, after a hard-fought field-day of professional +antagonisms in court, the evening hours were crowded with social +amenities, and winged with wit and merriment, with pathos, sentiment +and song. + +"If the sayings and doings at the festive evenings of the early +Ohio bar could be collected, there would be materials in rich +abundance from which a sympathetic and facile pen could compile a +volume of equal piquancy and sentimental refinement of patriotic +detail and humor, that alternate the pages of Sir Jonah Barrington, +or any other winsome work of the kind. This will not be questioned +for a moment when it is remembered that Henry Clay, Lewis Cass, +Philip Doddridge, Willis Silliman, David K. Este, and Charles +Hammond were frequent participants; that Philoman Beecher, William +W. Irvin, Thomas Ewing, William Stanberry, Benjamin Tappan, John +M. Goodenow, Jacob Parker, Orris Parrish, and Charles Goddard +habitually contributed to their entertainment, and that these were +often signalized with the hilarious fun of Creighton and the quaint +drolleries of Douglas. At these symposiums of recreation, and they +were held whenever the courts used to meet, Charles R. Sherman was +always the most welcome of companions, and contributed his full +share even to the ambrosial feasts, + + 'When all such clustering portions had + As made their frolic wild, not mad.' + +"Thus endowed and so associated, he became a leading and a popular +people's lawyer, from the Ohio River to our northern lake. + +"In 1823 he was elected by the legislature to the bench of the +Supreme Court of Ohio, and perhaps the only man in the state who +doubted his ability for this high position was himself. He told +the writer of these lines when speaking on the subject of his +appointment, that he assumed its duties with great personal diffidence +and apprehension. He feared that he lacked the ripe experience of +years necessary to hear and determine cases of magnitude in a court +of the last resort. His official associates were Calvin Pease, +Jacob Burnet, and Peter Hitchcock, and these are names of renown +in the judicial history of Ohio. + +"Judge Sherman upon the bench fully realized the large expectations +of his professional friends and the public. + +"His written opinions, published in 'Hammond's Reports of the +Supreme Court,' demonstrate a mind of the choicest legal capabilities. +They are clear, compact, yet comprehensive, intuitive, logical, +complete, and conclusive, and are respected by the bar and courts +in this and other states as judicial _dicta_ of the highest authority. +He won upon the bench, as he did at the bar, the affection and +confidence of his associates. They esteemed him for his gentle +and genial nature, for the brilliant flashes of his mind and the +solid strength of his judgment; above all, for the stainless +integrity of his character, as a judge and as a man. + +"Under the provisions of our old constitution, the Supreme Court +was required to hold an annual term or sitting in each county of +the state, two of the judges officiating. In every court-room in +Ohio where Judge Sherman presided he made friends. His official +robes were worn by him as the customary habiliments of the man. +He was never distant, haughty, morose, austere, or overbearing on +the bench. It was not in his nature to be so anywhere, and it was +therefore always a personal pleasure to practice in his courts. +The younger members of the profession idolized him in every part +of the state; for them and their early efforts he systematically +sympathized, and he uniformly bestowed upon them the most gracious +compliment that any judge upon the bench can render to the oldest +practitioner at the bar--he gave them his interested and undivided +attention. + +"He had entered upon the sixth year of his official term, was in +his manly meridian of life, in the full fruition of his matured +intellectual powers, in the plenitude of his public usefulness, +and in the enjoyment of apparent robust physical health, out upon +his circuit, and about to hold a session of the Supreme Court at +Lebanon, in Warren county, when suddenly, without any premonition, +he was struck down with a fatal malady, that was frightfully rapid +in its termination. The best medical aid was summoned from +Cincinnati; it was in vain. An express messenger was hurried to +Lancaster for Mrs. Sherman, but before she reached him her lamented +husband was dead. + +"He died in Lebanon, June 24, 1829, in the 41st year of his age. + +"I will not attempt to describe the outburst of public sorrow that +prevailed over this event. It was general and sincere, touching +and outspoken; but it was in Lancaster, it was here in his happy +home, which he made the home always of genial and open-hearted +hospitality--here among his neighbors and fellow-citizens of every +class and description, all of whom knew him and all of whom loved +him--that the intelligence of his death came with the most painful +and startling abruptness. They could not comprehend it. But +yesterday he was among them in perfect health, and now he is dead. +Men wept in our public streets. I do not believe he had a single +personal enemy on earth. + +"Had Judge Sherman lived, higher and broader spheres of public +usefulness would have opened before him. There is no doubt whatever +that the same spontaneity of opinion that placed him upon the +supreme bench would have again united, when the vacancy happened, +to have sent him to the Senate of the United States, and those who +know him knew full well that his first prepared public utterance +in that chamber upon any pending matter of national importance +would have secured to him a brilliant national name. This is no +fancy penciling. It was conviction with his contemporaries, and +it would have been the record of history had he lived. As it is, +he has left to his children the heritage of his spotless public +reputation--of his loved and honored name. + +"This fragmentary sketch would be more incomplete did I not mention +that Judge Sherman was a zealous and prominent member of the Masonic +fraternity, and that he filled its highest offices of honor in the +several grand bodies of Ohio." + +General Reese, the author of this sketch, was born in Philadelphia, +Pa., on the 5th of August, 1804. He was a graduate of the University +of Pennsylvania, studied law and was admitted to practice in +Philadelphia. He then came to Ohio and was admitted to the bar in +Cincinnati and soon after settled in Lancaster. In 1829, soon +after the death of my father, he married my eldest sister, Mary +Elizabeth. He did not long pursue his profession but became a +merchant. He was prominent as a member of the board of public +works. In old militia times he was in command of the forces of +the state as its only major-general. He was grand master of the +Grand Lodge of Masons in Ohio for a series of years, and at the +same time held high rank in the Grand Lodge of the United States. +He was a handsome and accomplished gentleman, of pleasing manners +and liberal to a fault. He died on the 17th of December, 1883, at +Lancaster, in his eightieth year. + +Of my mother I can scarcely write without emotion, though she died +more than forty years ago. Her maiden name was Mary Hoyt. She +was a member of a family, mostly merchants and sailors, who had +lived in Norwalk, Connecticut, since its first settlement. At the +period of the American Revolution the Hoyt family, composed of +several brothers, was divided in their allegiance, some as Tories, +some as Whigs. My mother's grandfather was a Whig. It is a +tradition in the family that one of the Tory brothers pointed out +the house of his brother, at the capture of Norwalk by the British +and Tories, as the nest of a rebel, and it was burned to the ground. +In this it shared the fate of the greater part of the town. The +Tories of the family went to St. Johns, but years after the war +was over they and their descendants returned to Connecticut and +New York, and many of them became prominent and respected citizens. +Isaac Hoyt, my grandfather, was a prominent citizen of Norwalk, +possessing considerable wealth for those days. + +My mother was carefully educated at the then famous female seminary +at Poughkeepsie, New York. I remember the many embroidered pictures, +made with the needle and silk thread by the handicraft of my mother, +as a school girl, carefully framed, that decorated the old house +in Lancaster. The women of that day were trained more for the +culture and ornament of the house, more to knit stockings and weave +home spun than to make speeches on woman's rights. Soon after her +graduation she married Charles Robert Sherman, as before stated, +and their lives were blended. She sometimes rode with him when on +the circuit, and always on horseback. It was an adage in the +family, even to her grandchildren, that she was always ready for +a visit. I never knew her to scold, much less to strike, her +children. She was our sure refuge against grandmother, between +whom and my mother there was, however, the warmest affection. When +Aunt Elizabeth married Mr. Parker, grandmother followed her daughter +to their home in Mansfield. + +When my mother, by the death of her husband, was left a widow with +eleven children and spare means of support, she received the sympathy +of all her neighbors and the kindly encouragement of everyone in +Lancaster. As her children scattered her resources increased, so +that after one year of widowhood she was quite independent. Like +Goldsmith's Vicar of Wakefield she was "passing rich" on four +hundred dollars a year. Soon the houses of her children were open +to her, but she clung to Lancaster until all her children had taken +flight, when, in the summer of 1844, she accepted the invitation +of her sons to make her home in Mansfield and removed there. She +had there her house and home. Her two youngest daughters, and the +writer of this, were her family, but in a very brief period all +around her were married. She still continued to occupy her home, +and always with some of her numerous grandchildren as guests. She +often visited her children, and her coming was always regarded by +them as a favor conferred by her. And so her tranquil life flowed +on until 1852, when she attended the state fair at Cleveland and +contracted a bad cold. She returned to Mansfield only to die on +the 23rd day of September, 1852, at the residence of her daughter, +Mrs. Bartley. + +Before closing this sketch of my ancestors, it seems proper that +I refer to their religious beliefs and modes of worship. In England +they were classed as Puritans, and were members of the Presbyterian +church. In Connecticut they followed the doctrine and faith of +the Congregational church of Anthony Stoddard. Daniel Sherman had +his father were deacons of the congregation of Mr. Stoddard, and +his granddaughter, the wife of Taylor Sherman, carried her faith +and practice into her family, and maintained to her death the strict +morals, and close observance of the Sabbath day, that was the +established rule and practice of the Connecticut Congregationalist. + +My mother's family, the Hoyts, were, with scarcely an exception, +members of the Episcopal church. My mother was reared in that +faith and practice from infancy, and was a member of that church +at the time of her marriage. When she emigrated to Lancaster she +found there no church of that denomination, and, therefore, joined +the Presbyterian church under the pastorage of Rev. John Wright, +who baptized all her children. At a later period, perhaps about +1840, when an Episcopal church was established in Lancaster, she +resumed her attendance and worship in that church. When she removed +to Mansfield she attended the Episcopal church at that place, +partook of its sacraments and usages, and died in that faith and +worship. All her living children and their families recognized +and supported the Episcopal church as their church, except the +children of General Sherman, who followed their mother and her +maternal ancestors in the faith and worship of the Catholic church. + +The writer of this has a firm belief in the Bible as the only creed +of religious faith and duty, and willingly accords to every human +being the right to choose his form of worship according to his +judgment, but in case of doubt it is best to follow the teachings +of his mother. + +With this, the sketch of my ancestors closes. Many will think it +is not part of my life, and that I have given too much space and +importance to it. If so, I hope they will pass it over without +reading. Each individual life is molded by one's ancestry, by the +incidents of his childhood, the training he receives in the family +and the school and the conditions and surroundings of his early +days. The boy is father to the man. It is difficult for one in +advanced age to recall or to measure the influence of each of these +in forming his character, but a statement of them is a necessary +preface to a history of his later life. My information as to my +ancestry is chiefly derived from the admirable local histories of +Connecticut, and, especially, from "Cothron's History of Ancient +Woodbury," "Hutchinson's History of Connecticut," and the local +records and traditions of Essex and Sussex counties in England. + +I cannot claim for my ancestors superior rank, wealth or ability. +They were not specially distinguished for any of these, but they +were men of useful and honorable lives, of untarnished reputation, +highly esteemed by their contemporaries, thorough republicans in +the broad sense of that word, always for their country in any +contest for the right, and willing to yield equal political and +civil rights to all their countrymen of every creed and color. + + +CHAPTER II. +MY BOYHOOD DAYS AND EARLY LIFE. +Born at Lancaster, Ohio, May 10, 1823--Death of My Father and Its +Effect on Our Family--Early Days at School--A Dead Sheep in the +Schoolroom--Lesson in Sunday Sport--Some of My Characteristics--My +Attack on the Schoolmaster--Robbing an Orchard--A Rodman at Fourteen +and My Experiences While Surveying--Debates at Beverly--Early Use +of Liquor--First Visit to Mansfield in 1839--The Famous Campaign +of 1840--I Begin the Study of Law. + +I was born at Lancaster, Ohio, on the 10th day of May, 1823, the +eighth child of Charles and Mary Sherman. My first distinct +recollection of events is connected with the scenes and incidents +that followed the death of my father on the 24th day of June, 1829. +I have a dim recollection before that time of being sent to school +with my elder brothers to keep me out of mischief, and of my father +praising me for learning the alphabet, but all other impressions +of my infancy were absorbed in the great family tragedy. We were +warned to keep quiet, and to remain out of doors, so as not to +disturb mother, who was critically ill, and, as our grandmother +was then supreme in the household, we knew that her will was law, +and that punishment invariably followed an offense. During these +enforced absences many were the wise resolves, or, rather, the +conceits, that the boys discussed for "helping mother." + +But time, which mellows every misfortune, brought so many changes. +My sister, Elizabeth, was soon married to General William J. Reese. +My brother, Charles, came home a full-fledged graduate, and, as we +thought, very learned. Everybody was kind. The affairs of my +father were settled. The homestead and garden were secured to my +mother, and she had, in addition, a settled income from her father's +estate of $400 a year, while grandmother had her "fire lands," and +an assured but small income besides. In those days a little money +went a great way; but there were eleven children of us to be cared +for,--from Charles, aged eighteen, to Fanny, aged three months. +The separation of this family was imperative, but the friends of +my father were numerous, and their offerings were generous and +urgent. Charles entered the family of our cousin, Mr. Stoddard, +an old and leading lawyer in Dayton, Ohio, studied law, and in two +years was admitted to the bar. James, the next eldest brother, +accepted a clerkship in a store in Cincinnati, and from that time +paid his own way, becoming a merchant, first in Lancaster, and +later in Des Moines, Iowa. William Tecumseh was adopted into the +family of Hon. Thomas Ewing, who lived in the same square with us +in Lancaster. The two families were bound by ties and mutual aid +which were highly creditable to both. My father, Judge Sherman, +had been able to help Mr. Ewing in the beginning of his professional +career, and Mr. Ewing gratefully and generously responded. They +maintained the most intimate and cordial relations during their +lives and their families have since continued them, the bond being +strengthened by the marriage of William Tecumseh to Mr. Ewing's +daughter, Ellen. Lampson P., the fourth son, was adopted into the +family of Charles Hammond, of Cincinnati, a distinguished lawyer +of marked ability, the reporter of the Supreme Court of Ohio, and +editor and chief proprietor of the "Gazette," the leading newspaper +published in his day in Cincinnati. + +While the reduction of our family was thus taking place I was kept +at school at Lancaster, where I made considerable advance in such +studies as a lad from six to eight years of age can pursue. I have +forgotten the names of my tutors. The present admirable system of +common schools in Ohio had not then been adopted, but the private +schools in Lancaster were considered very good, and most of the +boys of school age were able at little cost to get the rudiments +of an education. + +In the spring of 1831, my father's cousin, John Sherman, a prosperous +merchant of Mt. Vernon, Ohio, accompanied by his bride, visited my +mother, and proposed to take me into his family and to keep me at +school until I was prepared to enter Kenyon College, five miles +from Mt. Vernon. This was a kindly offer and was gratefully +accepted. But I remember well the sadness I felt, and the tears +I shed, over the departure from home into the midst of strangers. +The old-fashioned stage coach was then the only medium of travel +and the fifty miles between Lancaster and Mt. Vernon were to me a +wearisome journey. For days after I arrived at Mt. Vernon I was +moping either at the house or at the store, but ere long became +accustomed to the change, and commenced my studies in the schools, +which, as I remember them, were admirably conducted by teachers of +marked ability, among whom were some who became distinguished in +professional and business life. One of the families that I became +intimate with was that of Mr. Norton, one of whose sons, J. Banning +Norton, who lately died in Dallas, Texas, was my constant companion. +We studied our lessons together, but frequently had quarrels and +fights. It was a "fad" of his to wear his finger-nails very long. +On one occasion I pummeled him well, but he scratched my face in +the contest. When I went home, marked in this way, I was asked +how I came to be so badly scratched and the best answer I could +make was that I had fallen on a "splintery log," and this got to +be a by-word in the school. + +According to the usages of the time I was put early to the study +of Latin, which then seemed to be regarded as the necessary foundation +for an education. I must confess that during my stay in Mt. Vernon +I was rather a troublesome boy, frequently involved in controversies +with the teachers, and sometimes punished in the old-fashioned way +with the ferule and the switch, which habit I then regarded as +tyrannical and now regard as impolitic. I do not believe that the +policy of punishment adopted in the schools of those times would +be expedient to-day. It tended to foster a constant irritation +between the teacher and the pupil. + +Among my school adventures at Mt. Vernon was one I heartily regret. +We had a teacher by the name of Lord. He was a small man, and not +able to cope with several of the boys in the school. We called +him "Bunty Lord." One evening after school four boys, of whom I +was one, while playing on the commons, found a dead sheep. It was +suggested that we carry the sheep into the schoolroom and place it +on Lord's seat. This was promptly done and I wrote a Latin couplet, +purporting that this was a very worthy sacrifice to a very poor +Lord, and placed it on the head of the sheep. The next morning +Lord found the sheep and made a great outcry against the indignity. +Efforts were made at once to ascertain the actors in this farce, +and proof was soon obtained. My handwriting disclosed my part in +the case, and the result was a prompt discharge of the culprits +from school; but poor Lord lost his place, because of his manifest +inability to govern his unruly pupils. + +Another teacher I remember was of a very different type. This was +Matthew H. Mitchell. He was severe and dogmatic, allowing no +foolishness in his school. He was strict and impartial in his +treatment of the boys, and, though we did not like him, we respected +his power. + +I had one adventure during these early boyhood days which nearly +cost me my life, and which Uncle John (as I called Mr. Sherman) +converted into a religious warning. One Sunday there was a freshet +in Owl Creek, on the south side of the town, and many people went +to see it, I among the rest. I was reckless, and, against the +advice of others, went out on a temporary foot-bridge which fell +and I dropped into the raging waters. How I escaped I hardly know, +but it was by the assistance of others. Uncle John said that I +was punished by the Almighty for violating the Sabbath. Ever after +that I was careful about Sunday sport. + +I remember, while living at Uncle John's, witnessing the wedding +of his niece, Miss Leavenworth, to Columbus Delano. I sat upon +the stair steps during the ceremony, the first of the kind I ever +saw. I mention this because of my long acquaintance with Mr. Delano +and his family. He became a great lawyer and filled many offices +of high public trust, and is now (1895) living in vigorous health, +eighty-six years old. I also remember very well Henry B. Curtis +and his family. He married a sister of Mrs. Sherman of Mt. Vernon, +and had a number of children. He was a brother of Colonel Samuel +R. Curtis, distinguished in the Civil War, was an accomplished +lawyer, a careful business man, and a gentleman in every sense of +the word. + +On the whole I regard my four years at Mount Vernon as well spent. +I advanced in my studies so that I could translate Latin fairly +well, I went through the primary studies, and obtained some +comprehension of algebra, geometry and kindred studies. In the +meantime the condition of our family had greatly changed and +generally improved. My sister Amelia was happily married to Robert +McComb, a merchant of Mansfield. My father's only sister was +married to Judge Parker, of Mansfield, to which place my grandmother +had followed her daughter, and my brother Charles had entered upon +his career as a lawyer in the same town. + +Uncle John had a family of small children growing up and I felt I +was in the way. My mother was anxious for me to return home as +all her boys were away. I wanted to go. Uncle John, however, +expressed his desire for me to stay and enter Kenyon College, but +I knew that Mrs. Sherman preferred that I should leave as she had +her young children to care for. The result was my return to +Lancaster at the age of twelve. Mrs. Sherman is now living at +Washington, D. C., at the age of eighty-seven, with her son John. +I shall always remember with sincere gratitude her care and +forbearance manifested toward a rather wild and reckless boy at +the disagreeable age of from eight to twelve years. Affection may +make a mother bear with the torment of her own child at that age, +but will rarely induce an equal leniency toward that of another. + +My return to Lancaster was a happy event in my life. I renewed my +old acquaintance with boys of my age, and was on intimate terms +with Philemon Ewing, Charles Garaghty, Frederick Reese, W. P. Rice, +W. Winthrop Sifford and others. My brother, William Tecumseh, was +three years my senior, and he and his associates of his own age +rather looked down upon their juniors. Still, I had a good deal +of intercourse with him, mainly in the way of advice on his part. +At that time he was a steady student, quiet in his manners and +easily moved by sympathy or affection. I was regarded as a wild, +reckless lad, eager in controversy and ready to fight. No one +could then anticipate that he was to be a great warrior and I a +plodding lawyer and politician. I fired my first gun over his +shoulder. He took me with him to carry the game, mostly squirrels +and pigeons. He was then destined to West Point, and was preparing +for it. To me the future was all unknown. + +I entered, with all the boys referred to and many others, the +Academy of Mark and Matthew Howe, then well established, and of +great reputation,--and deservedly so. The schoolrooms were large, +and furnished with desks and chairs, an improvement upon the old +benches with boards in front. The course of studies mapped out +for me was much the same as I pursued at Mount Vernon, with a +specialty of the first six books of Euclid, and of algebra. Latin +was taught but little. From the first, arithmetic, algebra and +surveying were my favorite studies, and in those I became proficient. +We had an improvised theatre in which we acted plays and made +speeches. + +When I entered the school Matthew Howe was the regulator, teacher +and dominie. He was the supreme autocrat, from whom there was no +appeal. All the boys respected him, for he certainly was a good +teacher, but they did not like his domineering way. I got along +with him pretty well for some months, but one day after I had +mastered my lessons I rested my head on my desk when I was sharply +reproved by him. I said that I did not feel very well and had +learned my lessons. He called me to the black-board and directed +me to demonstrate some problem in my lesson of Euclid. I went, +and, as I believed, had made the drawing and demonstrated the +problem. He said I had not, that I had failed to refer to a +corollary. I answered that he had not required this in previous +lessons. Some discussion arose, when, with the ferule in his hand, +he directed me to hold out mine. I did so, but as he struck my +right hand, I hit him with all the force I could command with my +left. This created great excitement in the school, all the students +being present, my brother Tecumseh among them. It was said at the +time that the boys were disposed to take sides with me, but I saw +no signs of it. The result was that I was expelled from the school, +but, by the intercession of my mother, and Mrs. Reese, after +explanations, I was restored, and during my two years with Mr. Howe +I had no other contention with him. He moved some years later to +Iowa, where he established another academy, and lived a long and +useful life. We had friendly correspondence with each other, but +neither alluded to our skirmish over a corollary in Euclid. + +The pupils had the usual disposition among boys to play tricks on +each other. The academy was in a large square, the greater part +of which was an orchard of apple trees. Mr. Howe lived on the +corner of the square, some distance from the academy. The boys +were forbidden to climb the trees to shake down the fruit, but were +quite welcome to the fruit on the ground. One fall, when the apples +were ripe, the boys conspired to play a trick upon some of the +students and outsiders,--among them my brother Lampson, then on a +visit home from Cincinnati,--who were easily persuaded to rob the +orchard, none more willing than "Lamp." Those in the plot were to +watch and prevent interference. When the time came we had detailed +two or three boys in the academy to fire off muskets, well loaded +with powder and nothing else, when the signal was given. Everything +moved on according to programme. The boys detailed to shake down +the apples were in the trees, when, all at once, the firing of +musketry commenced. The boys dropped from the trees and scattered +in every direction. Some of them were caught in the pea vines of +Mr. Howe's garden, but most of them, with great labor, climbed over +the high fence around the ground and dropped on the outside "with +a thud," safe from powder! The dogs in the neighborhood lent their +aid to the outcry, and everybody was convinced that ruffians had +robbed Howe's orchard. + +I suppose it will never occur that a generation of boys will not +do these things. At seventy-two I know it was wrong. At thirteen +I thought it was fun. + +I now recall many pleasing memories of what occurred in the two +years "at home" at that period when the life of a boy is beginning +to open to the future. It is the period of greatest danger and +highest hope. At that time, 1835 to 1837, everybody was prosperous. +The development created by our system of canals had opened markets +for our produce. The public national debt had been paid. The pet +banks chartered after the destruction of the Bank of the United +States started upon a wild scheme of inflation. A craze to purchase +public land created an overflowing revenue. All causes combining +created a deceptive prosperity that could end only in one way. +All this was Greek to me. All I wanted, and the controlling wish +of my life, was to help mother. She was always kind, loving and +forbearing. No word of reproach ever fell from her lips to me. +She was the same to all her children, but if there was any difference, +or favor, it was for me. Even at that early age I had day dreams +for the future, and mother was the central picture. If fortunes +could be made by others why could I not make one! I wished I was +a man. It began to appear to me that I could not wait to go through +college. What were Latin and Greek to me, when they would delay +me in making my fortune! + +Near the close of 1836 I wrote to my brother Charles at Mansfield, +asking him to get me employment. He discouraged me and said I +should stick to my studies, but I insisted that I was strong and +could make my own living. At this time Ohio had decided upon the +improvement of the Muskingum River from Zanesville to Marietta, +and the Board of Public Works had selected Colonel Samuel R. Curtis, +a graduate of West Point, as chief engineer. He was a brother of +Mr. Curtis, of Mount Vernon, and a friend of our family. + +Charles had no difficulty in securing me employment as junior rodman +if, at the age of fourteen, I could perform the duties requed,-- +which Colonel Curtis doubted. The work was not to commence until +the spring, when I was to be given a trial. I worked hard that +winter, for hard work, I thought, was the way to fortune. I studied +the mode of leveling. I saw a man on the Hocking canal operate +his instrument, take the rear sight from the level of the water in +the canal, then by a succession of levels backwards and forwards +carry his level to the objective point. Then the man was kind +enough to show me how, by simple addition and subtraction, the +result wanted could be obtained. I was well advanced in arithmetic +and in mathematics generally, and was confident, even if I was +hardly fourteen years old, that I could do the work of a junior +rodman. + +About the first of May, 1837, the day of deliverance came. I was +to be my own master and make my own living! A fortune gilded with +hope was before me. I was to go in the stage thirty-six miles to +Zanesville, and thence by stage-route down the Muskingum River, +twenty-eight miles to McConnelsville. When the stage arrived at +my mother's house it was rather full, but there was still room +enough for me. All the family, and my comrades, had gathered to +see me off. My baggage, all new, was thrown into the boot, and I +took my seat in the stage. My heart sank a little as the stage +rolled over the hill and down the valley beyond, but the passengers +wanted to know who I was, where I was going, and what I was going +to do, and I think they got all the information they wanted, for +why should I not tell them of my visions of hope, sometimes called +plans! Oh! the golden dreams of childhood, the splendid anticipations +of boyhood, the fields of conquest to be won, the fortunes to be +made, all to vanish into thin air by the touch of reality. + +I arrived at Zanesville long after dark, and very weary. I had +never been in so large a town before. The hotel was full of people, +but no one noticed me. I was hungry, but could only get the scraps +left, as the supper hour was past. I was to leave in the morning +at daylight without breakfast. I was shown into a small dark room, +on the third floor, and was to be called in the morning. I did +not like the place and was alone and in fear. I had more money +than ever before. Might I not be robbed? I took the precaution +to deposit my jack-knife on a chair within reach, to defend myself +in case of attack! My fears were soon lost in sleep. In the +morning I was aroused to take by place in the stage, but forgot my +knife, my only weapon of defense, and it was lost to me forever. +The bright morning revived my spirits. A hearty breakfast at +Taylorsville revived all my hopes and plans. + +I arrived at McConnelsville about noon and stopped at the only +tavern in the place. I called at the headquarters of Colonel Curtis +and introduced myself to him. He received me very kindly and +introduced me to the office clerks, and to James M. Love, who, I +was told, would take me within a week to the engineer corps, then +running their levels at Beverly, sixteen miles away. I spent the +week pleasantly with him, and was intimately associated with him +during my service of two years. He subsequently studied law and +practiced his profession at Coshocton. When the Mexican War was +progressing he enlisted in one of the Ohio regiments, became a +captain, and, I think, a major, and rendered good service. He +subsequently migrated to Iowa and was appointed judge of the District +Court of the United States for that state. This position he held +for many years with distinction and honor. He died July 2, 1891. + +When the time came for joining the corps Love proposed that we +start in the morning for Beverly, but I insisted that, as it was +only sixteen miles to Beverly, we could easily make the trip after +dinner. I had never walked so far as sixteen miles in my life, +but had walked or run three or four miles in an hour, and, by the +rules of arithmetic, we could easily go sixteen miles in five or +six hours. He yielded to my wishes, and, as our baggage had been +sent by the stage, we started about one o'clock, light of heart +and foot. When we had climbed the long hill south of McConnelsville, +about a mile and a half, I was a little tired, and I asked how far +we had gone; he said, "a mile and a half!" I began then to appreciate +my folly in not starting in the morning. He said nothing, but kept +at my slower pace, giving me a rest occasionally. It was sun-down +when we were six miles from Beverly, and I was completely tired +out. Still neither of us proposed to stop, as we could have done +at a farmer's house on the roadside. We reached the town of Beverly +about ten o'clock, weary and hungry. This tramp taught me a lesson +I never forgot,--not to insist upon anything I knew nothing about. +We found the corps the next day in camp in one large tent on the +east bank of the Muskingum River. + +I had another experience, equally unpleasant, during our first +evening in camp. The members of our corps, five or six in number, +had been invited by Mr. Lindsley to attend a party at his house +near by. They accepted, and, as Love and I had no invitations, we +were left on guard in the tent containing the instruments and +supplies. When we were alone there came up suddenly a storm of +wind and rain,--not uncommon along the valley,--which flattened +the tent and flooded the ground on which it stood. We were thoroughly +soaked and utterly helpless, and, for a time, in real danger. I +remember my utter collapse at this new misfortune, but all we could +do was to wait and hope for the return of the corps. I must confess +that I quietly mingled my tears with the rain, but I did not tell +this to the boys when they returned after the storm was over. No +great damage was done. The tent was soon raised and secured in +place. The next morning I was given a rod and instructed how to +use it. I noticed that my associates did not have much confidence +in my ability to perform the duties, and, especially the senior +rodman, John Burwell. I followed instructions, however, and reported +my rod correctly. After a day or two they gave me a book in which +I was to enter the levels. In a very short time they were satisfied +that I could perform my duties, and I was soon trusted to make up +the record of levels, and the necessary additions and subtractions +in my book. + +This little corps was composed of men, some of whom afterwards +became proficient as engineers, lawyers or preachers. Among them +were John B. Straughn, Wright Coffinberry, John Scott, John Burwell, +and James M. Love. The line of surveys were soon completed to +Marietta, the locks and dams were located, estimates of cost were +carefully made, the materials to be used were purchased and the +excavations and embankments to be made were computed. My associates +soon found that I could do the work assigned me, and in this way +I won their respect and forbearance. + +After the surveys were completed, the members of the corps were +located at different places to take charge of the work. Mr. +Coffinberry was assigned to Lowell, and I was attached to him as +an assistant. John Scott, who had been at West Point, and, I think, +was a graduate, was assigned to Beverly, where a dam, lock and a +short canal were to be constructed. In the fall of 1837 he was +dismissed, I think, for intemperance. I was detailed, not exactly +to take his place, for which I was unfitted, but to look after some +details, and to keep the headquarters advised of the progress of +the work. It was soon found that I was able to measure embankments, +excavations, stone and other materials. The result was that I was +continued, at my early age, practically in charge of the work I +have mentioned. All plans came from headquarters and I was carefully +instructed from there what to do and how to do it. This was a +great and useful experience for me, and it continued until the +summer of 1839. + +During most of that time I lived in the family of Mr. Paul Fearing, +an old and respected citizen of Beverly, who had long been engaged +in what was called the river trade. He transported the produce of +the country, chiefly pork, apples, wheat, and corn, from the +neighboring region on flats and scows down the Muskingum, Ohio and +Mississippi to New Orleans, stopping at the riverside towns, selling +his commodities and buying others. The boats were sold at New +Orleans for lumber. The captain and crew, generally consisting of +two men, would return by steamer with the proceeds of their traffic +in sugar, molasses and other productions of the south. This was +the early mode of traffic, but it had largely been broken up by +steamboats, so that at the time I refer to, Mr. Fearing's occupation +was gone; but he had a comfortable little fortune, and, with his +wife and only daughter, lived in a neat cottage on the banks of +the river at Beverly, where I became practically a member of his +family. + +The community at Beverly was a very intelligent one, composed mainly +of settlers from Massachusetts on the Ohio Company's purchase. +The valley of the Muskingum is exceedingly fertile, but it is +comparatively narrow and confined by picturesque hills and ridges, +broken by water courses. The settlements were mostly in the valley, +for the hill lands were rough, covered by poor soil, and were +occupied chiefly for grazing. The portion of the valley at Beverly, +and south of it, was singularly fertile and pleasing, and very +valuable. Its owners and occupants were mostly of New England +birth and descent. Their productions had a ready market down the +river, and in that age, before railroads, the valley had a great +advantage in transportation and supplies over the interior parts +of the state. The people were, as a rule, educated in good schools, +and they had a college at Marietta and a female college at Zanesville. +The proposed improvement of the Muskingum, they believed, would +give them another advantage, by securing them water of a depth +sufficient for boats in the dry seasons of the year, as well as +during the "freshets," which they then had to depend upon, but +which at best were not very reliable in their habits, as I found +to my cost. This was to be corrected by the "improvement," which, +in their delusive hope, was to give them cheap water transportation +all the year around. + +At that time railroads were in their infancy. They have since +practically destroyed or crippled all internal navigation on inland +rivers, reaching their iron arms over the United States, traversing +north and south, east and west--a vast gridiron of roads, in value +greater than the market value of all the land in the United States +in 1837. Before the first railroad was built in Ohio the Muskingum +improvement was completed, but it proved to be a bad investment. +The canals of Ohio and this improvement were, perhaps, the necessary +forerunner of the railroads to come, but the money expended on them +was practically lost. And I believe that the experiment now being +made by the United States in the improvement of the Ohio, Missouri +and Mississippi Rivers will end in a like result on a grander scale. +By the demolition of the forests which covered this great valley, +the supply and distribution of the waters and rivers in this region +will be so diminished at certain seasons as to render these water- +ways worthless for navigation. Engineers may make dams that will +hold water and locks that may lift a steamboat, but if the clearing +away of forests prevents the usual fall of rain and causes its +absorption into the earth, and if the dispersion of water by its +use and waste in cities, are to continue, the dam will not be +filled, and the lock will be like a stranded vessel, fit only as +a quarry for cut stone, or for a railway arch over a street of +asphalt in a growing city. Captain Fearing railed against the +steamboats as many now inveigh against the railroads, but these +two great agencies will divide the commerce of the world between +them. The railroads will possess the land, the steamboats the +ocean and the great fresh waters of the world. Possibly steamboats +may be utilized on short stretches of rivers, but even on these +they will have to compete with railroads having wide-reaching +connections which they do not possess. The money expended to levee +the Mississippi may be lost by the United States, but the planters +will receive some benefit from it in the protection given to their +crops. The steamboats in interior waters will be exchanged for +iron whalebacks, and new forces of a new nature, as yet only partly +developed, such a electricity, will contest with steam as a motive +power. + +During the period of my stay on the Muskingum improvements I had +very excellent opportunities for study, of which I regret to say +I did not avail myself as well as I might have done. Still, I +occupied my leisure in reading novels, histories, and such books +as I could readily get. Many books were sent to me from Lancaster. +I purchased a number, and found some in Beverly which were kindly +lent to me. I read most of the British classics, as they are +called, the Spectator, Shakespeare, Byron, and Scott. I read all +I could find of the history of America. I tried to brush up my +Latin, but without much success. I had the frequent company of my +associates on the corps, all of whom were bright, able men, several +years in advance of me in age. We were frequently called to +headquarters at McConnelsville, a trip usually made on horseback, +and where we always had not only a cheerful, but a very instructive +time. Colonel Curtis was highly esteemed by us all, and his +treatment of me was kind and fatherly. He frequently complimented +me upon my work, and when he came through Beverly he visited me. + +Among the diversions at Beverly we had occasional debates. One of +these was upon the dangerous subject of temperance, a topic not +then much discussed, for drinking of something stronger than water +was almost as universal as eating, and considered equally necessary. +However, there sprang up about this time a movement in favor of +temperance. It was thought best to discuss the subject at a public +meeting, a school teacher and I taking the side of temperance, and +two other young men opposing us. The meeting was well attended, +largely by the men employed on the public work who habitually +received a certain number of "jiggers" of whisky a day, at regular +hours. Whisky, not being taxed, was worth from fifteen to twenty- +five cents a gallon. It was not an expensive luxury, and was +regarded by all the workingmen on the improvement as a necessity. +At the end of the debate, which I do not remember to have been a +very notable one, the audience decided that we had the best of the +argument. The discussion created a great excitement. The workingmen +took up the cry that the Cumberland Presbyterians, the prevailing +sect there, and other Christians, were interfering with their habits +and comforts, and when the young schoolmaster appeared the next +day, they raised a shout and pursued him with sticks and stones. +He escaped with difficulty across the river, thus getting out of +the way. I heard of the trouble, but went up to the canal and made +my usual measurements. Not a word was said to me and no unkindness +shown. I understood afterwards that this was caused by a warning +given them by the contractor, who, hearing of the assault upon the +schoolmaster, told them that I was a part of the government and it +would not do to attack me; that to disturb me would have a very +bad effect upon them all. So, I was forgiven, and, indeed, I never +had any controversy during my time there with anyone connected with +the work, from John McCune, the contractor, to the humblest water +carrier about the works. + +Early in the winter of 1838, I think in November, I had made up my +mind to go to Cincinnati on the usual leave after the close of +the works. As an excuse, and to procure means of paying for the +trip, I purchased, partly on credit, a barge and loaded it with +barreled salt, apples and other commodities, intending before the +freeze-up to avail myself of the usual rise in the river to float +to the Ohio and thence to Cincinnati. All went smoothly, the boat +was loaded and floated as far as Luke Shute, when the river was +found to be too low to proceed. Consequently the boat was tied up +and placed under the care of a man who slept aboard. We waited +for the river to rise, but it did not come. Both the Muskingum +and Ohio Rivers were very low that season and finally froze up +before the freshet came. This closing of navigation created a +great demand for salt in Cincinnati, as that article could not be +obtained from the up-river country, and it advanced to a price that +would have yielded me a little fortune had my boat not been among +those thus detained. I undertook to carry some of the salt by +flatboats, but they were frozen up. The packing season in Cincinnati +was going forward and salt bore a high price, but I knew it would +fall the moment the river opened. It was apparent that I would +lose on the salt, but I still clung to my purpose to go down the +river. Finally the freshet came, some time in January, I think, +and then, with three men on the barge, I floated down the river, +tying up at nights for safety, and stopping occasionally to sell +apples to the Kentucky farmers, I arrived at last in Cincinnati +and soon found that salt had greatly fallen in value, so I sold +the salt, boat and cargo upon the best terms I could get. The +result was a loss of about one hundred dollars. However, I had a +very pleasant visit in Cincinnati with my brother Lampson, who was +connected with the "Cincinnati Gazette." He was a member of the +family of Mr. Charles Hammond, his daughter, and son-in-law Mr. +L'Hommedieu. Mr. Hammond had been a warm friend of my father's +and was certainly one of the ablest writers of his day and generation, +as well as an accomplished lawyer. He was much pleased at my +adventure and especially with my rough shoes and warm Kentucky +jeans. He told me not to be discouraged, and flattered me with +the statement that a young fellow who could, at fifteen years of +age, do what I had done would make his way in the world. + +At that time I saw Judge Burnett at his residence. He had been a +colleague of my father on the supreme bench, and during all his +manhood had been distinguished as a lawyer and a man of marked +ability. He wore a long queue, preserved the habits of the gentleman +of the old school, and was proud of being a Federalist. His book +called "Burnett's Notes" is perhaps the most valuable collection +of historical data pertaining to the early history of Ohio now +extant. + +At this time I visited what was called Powers' "Hell." My brother +Lampson and I took the boatmen with us, and "Lamp," who was fond +of playing practical jokes, and knew the place better than I did, +took care to warn one of the roughest of my boatmen to seize hold +of a bar which was before him, and which "Lamp" knew would be +charged later with electricity, and to hold on to it for dear life. +We heard a rumbling sound inside, and finally saw flashes resembling +lightning, and we naturally seized on whatever was before us to +await the opening of "Hell." After more sheet lightning the veil +was drawn aside and there were before us representations of human +beings in every attitude of agony. At the same moment the electric +current was passed through certain bars before us, on one of which +the boatman held a firm grip, but no sooner was he charged with +electricity than his hair flew on end, he looked the picture of +terror, shouted in a loud voice, "O, hell!" and broke for the door. +Soon after we followed also, and that, to us, was the end of a +scene that ought never to have been exhibited. + +I returned to Beverly in a steamboat and soon settled all the bills +of the salt speculation, but had to call upon Mr. McComb and my +brother, Charles, for a small sum to make up the deficit. I repaid +this sum later on, but Mr. McComb never failed, whenever I made a +business proposition that seemed hazardous, to say, with a great +haw-haw: "Well, John, that is one of your salt speculations." + +The election in the fall of 1838 resulted in the choice of a +Democratic governor and state legislature, which, according to the +politics of the time, involved an entire change of state officials +and employees. Mr. Wall became a member of the Board of Public +Works, and was assigned, among other works, to the charge of the +Muskingum improvement. In the course of a few months, I think +about the last of June, 1839, Col. Curtis was removed, and Mr. +Macaboy was appointed superintendent in his place. At first it +was uncertain whether changes would be made in the subordinates of +the corps. Some of its members had become so much attached to Col. +Curtis that they thought it right and proper to send him a letter +expressing in substance their regret at his removal, their high +estimate of his services, and thanks for his kindness to them. +This was signed by Mr. Coffinberry, Mr. Burwell, Mr. Love and +myself. I am not certain that the others did not express the same +friendly feelings, but, at all events, the four whose names I have +mentioned were summarily dropped from the service. + +Thus, after two years of faithful work with small pay, I was, at +the age of sixteen, turned adrift on account of politics. + +I find among my papers, dingy with age, the correspondence with +Col. Curtis, and also the subsequent correspondence between Mr. +Wall and myself, in respect to my removal. My letter to Mr. Wall +was a disclaimer of any intention of disrespect to him in our letter +to Col. Curtis, and his reply was that we alleged that Col. Curtis +was removed without a cause, which he denied. I have no doubt, +from a present reading of the papers, but that he would have retained +me as a juvenile offender if I had made a suitable apology, but +the instinct of a boy to stand up for his party was strong. I was +a Whig of sixteen, and it was glorious to be a victim of +persecution. + +I also find among my papers of that time, which I thought worthy +of preservation, a multitude of essays on as many different subjects, +and some efforts at poetry, all of which I consign to flames. Most +boys have had the same experience. The only benefit I derived was +the habit I formed of writing upon such subjects as attracted my +attention by reading, a habit I continued when studying law, in +preparing a case for trial, and in preparation for a debate in +Congress. + +I returned at once to Lancaster. The great financial depression, +commencing in 1837, was now at its height. It was said that Ohio +State six per cent. bonds had been sold at fifty cents on the +dollar. Many banks were embarrassed and refused to discount notes, +while several failed, and their circulating notes became worthless. +I found that Lancaster had especially suffered, that many of its +leading business firms had suspended or were on the brink of failure. +I was then in excellent health, tall and slender and willing to +work. I received temporary employment from Dr. Kreider, who was +either Clerk of the Court or Recorder of Deeds, I do not remember +which. He gave me a dollar and a half a day, which I regarded as +a great favor, but the records were soon made up and I had nothing +to do. + +It was at this period of my life that I fell into very bad habits. +Many of the boys about my age who were with me in Howe's school +were still about Lancaster, and were out of employment like myself. +We would meet on the street, or at the post office, or some place +of resort, to talk over old times, and got into the habit of drinking +poor wine, mostly made of diluted whiskey and drugs. The general +habit of drinking spirits was more common than now, but I had not +been subject to this temptation, as Col. Curtis was very strict in +prohibiting all such drinking. With the jolly good fellows I met +at Lancaster who had nothing to do, I could not refuse to join in +drinking the health of each other, and thus I was conscious frequently +of being more or less intoxicated. On one occasion, in the fall +of 1839, I went home very sick from drinking. My mother received +me with much surprise and sorrow, but neither complained nor scolded, +and, with the utmost kindness, put me to bed and watched over and +cared for me. I was not stupid enough to be unconscious of my +degradation and her affection, and then and there resolved never +to be in such a condition again, and from that time to this I am +not conscious of having been under the influence of liquor. I have +partaken of wine and spirits at weddings, feasts and dinners, I +have used it as a medicine, and in response to toasts and compliments, +but never to an extent to addle my brain or disturb my walk. + +At that time intemperance was a common vice. Of the young men who +were my contemporaries a very large proportion became habitual +drunkards and died prematurely. No reform in my time has been so +general and beneficial as that of the disuse of drinking intoxicating +liquors, commencing in 1841. Formerly liquors were put on the +sideboard or table, and the invitation "take a drink" was as common +then as "take a seat" is now. This method of treating was shared +in by preachers of the Gospel, and by all who observed the courtesies +of social life. Now these conditions have greatly changed. Whisky +is banished to the drug store, the grocery and the saloon, and even +there it is under surveillance and so highly taxed as to furnish +a large proportion of the national revenue. + +Some time in the autumn of 1839 I visited Mansfield for the first +time, on some business for General Reese, and it was then arranged +that early in the next spring I should return to study law with my +brother Charles. Mansfield was then a very unattractive village, +badly located on parallel ridges and valleys, but precisely in the +center of the very large county of Richland, then containing 900 +square miles. The county covered a part of the high table-land +that separated the waters of Lake Erie and the Ohio River. It was +an almost unbroken forest during the War of 1812, with a few families +living in log houses, protected by block houses of logs from the +incursions of Indians, many of whom lived in the county. After +the war it was rapidly settled, chiefly from Pennsylvania, and +divided into farms of 160 acres or less, according to the new +congressional plan of townships six miles square, sections one mile +square, and subdivisions of forty, eight, and one hundred and sixty +acres. The topography of the country was high and rolling, from +900 to 1,350 feet above the sea, with innumerable springs of the +purest water, and small streams and creeks, all rising in the county +and flowing north or south into the Muskingum or Sandusky rivers. +The timber was oak, sugar, elm, hickory and other deciduous trees. +This valuable timber was the chief obstruction to the farmers. It +had to be deadened or cut away to open up a clearing for the cabin +and the field. The labor of two or three generations was required +to convert it into the picturesque, beautiful and healthy region +it now is. + +The village of Mansfield has been converted into a flourishing city +of more than 15,000 inhabitants, with extensive manufacturing +establishments and a network of railroads reaching out to Cleveland, +Chicago, Pittsburg, Columbus, Cincinnati and Indianapolis. There +was no sign of this development when I first visited the place. + +On my return to Lancaster I applied myself closely to study and +reading, mainly of history. I read Hume, Smollett and Miller's +histories of England, Gibbon's "Decline and Fall of the Roman +Empire," and such histories of the United States as I could procure. +It was at this time that the memorable "Log Cabin and Hard Cider +Campaign" of 1840 commenced. General Harrison had been nominated +in December, 1839, at Harrisburg, by the Whig party. He was a +distinguished general in the War of 1812, but had lived mainly a +quiet, modest life on his farm at South Bend, near Cincinnati. +The Democratic papers ridiculed him as a feeble old man, living in +a cabin and drinking hard cider. The Whigs turned these sarcasms +with great effect upon their adversaries. They compared the old +soldier and his excellent war record, living in a cabin with the +latch string out and eating corn bread, with "Matty Van, the used +up man," living in a palace, with roast beef every day, eating from +silver plate, with gold spoons, and drawing a salary of $25,000 a +year. This was no doubt demagoguism, but there was back of it the +great questions of protection to American industries, sound and +stable currency, and the necessity of economy in public expenditures. +A great meeting was held in Columbus in February, 1840. In the +procession were log cabins, filled with farmers and hauled by a +number of horses and oxen, and hard cider was on tap for all who +chose to drink. Songs were improvised, especially by Greiner, the +poet of the canvass. One of these songs, with the refrain, "The +Log Cabin Candidate will March to Washington," became famous and +prophetic. + +Some time in March, 1840, taking the stage for Mansfield, I saw +signs of political excitement all along the way, even at that early +period of the canvass. My sister Susan, two years younger than I, +was with me. We met with no adventure worthy of notice until we +arrived at our destination, when, in ascending the hill to the +public square, the coach slipped and fell over on its side. This +we considered a bad omen. It was not, however, an unusual accident, +as the roads were always bad in March, and the coaches of the day +not worthy of the name. We were heartily welcomed into the family +of Robert McComb, who had married my sister, Amelia. + +I was to study law, but under the laws of Ohio I could not be +admitted to practice until I arrived at the age of twenty-one years. +Our liberal laws presumed that a man of ordinary capacity could +master this profession in two years. What was I to do during the +two spare years? This question was left to the decision of my +uncle, Judge Parker, husband of my father's only sister. He was +a peculiar character, and, as I will have occasion to refer to him +again, I will give of him a brief biography. He was born in Nova +Scotia. His father was a merchant of some wealth who early decided +that his son should be educated in Ohio, and chose for him the +college at Athens. There young Parker not only received his +collegiate diploma, but became thoroughly attached to western habits +and opinions. He studied law with my father at Lancaster, and, +when admitted to the bar, went to Mansfield, where he practiced +law. He was genial, social, and especially fond of the society of +young people. I have often seen him stop on the streets of Mansfield +to watch boys playing marbles. He was conceded to be an able +lawyer, perhaps the best land lawyer and special pleader in that +part of Ohio. But he was not an advocate, partly owing to occasional +stuttering, but in jury cases employed my father until the latter +became a judge of the Supreme Court. + +Mr. Parker had for some years before 1840 retired from active +practice, and was engaged with Robert McComb as a general merchant. +During, or about 1842, he was elected by the legislature of Ohio +presiding judge of the Court of Common Pleas, and became eminently +popular, and deservedly so. He was to be my guide and counselor. + +A few words in regard to my brother, Charles Taylor, will explain +our relations, the confidence he reposed in me, and my deep +obligations to him. He was then a bachelor thirty years old, with +quite a lucrative practice, mainly in collecting debts due to New +York and other eastern merchants. Our banking system was then as +bad as it could be, exchange on New York was always at a premium, +and there was no confidence in our local banks. Charles was +substantially the banker in Mansfield and surrounding counties for +eastern merchants. He was a good speaker when he addressed a judge, +and his briefs were clear statements of the law of the case, but +when forced to speak to a jury he was exceedingly shy and sensitive. +He avoided jury trials. He was a fair speaker on popular topics, +and took great interest in current politics as a Whig. He was a +member of the Harrisburg convention that nominated General Harrison +for President, and made several creditable speeches in that canvass. +He was married in the fall of 1840 to Miss Elizabeth Williams, of +Dayton, Ohio, and I became a member of his family soon after. + +The influence of the special traits and tendencies of Judge Parker +and my brother Charles upon my life was soon manifest. My course +of study, outlined by Judge Parker, commenced with Blackstone, +followed soon after by Coke on Littleton. As a compromise I was +allowed to read Kent's Commentaries, but Chitty's Pleadings had to +go along with Kent. The disinclination of Charles to have anything +to do with contested litigation became more marked, and I was +compelled, long before my admission to the bar, to look after such +cases as grew out of his practice. The pleadings then in vogue +were the declarations, pleas and replications of the English common +law. These I prepared after I had been a student for a year, and, +in cases within the jurisdiction of a justice of the peace, I +habitually appeared either in prosecution or defense. + +As a matter of course, I was often outwitted and defeated, much to +my chagrin. In one case submitted to arbitration, a pettifogger +of bad repute by the name of Baldwin secured an award palpably +unjust. I felt more keenly than my client the injustice done him, +and never forgave Baldwin until he was indicted for perjury and +driven out of the county in disgrace. + +While pursuing my studies, I was able in various ways to make enough +money to support myself. I wrote deeds and agreements, and drew +the first map of Richland county, showing subdivisions in farms, +the course of creeks and rivulets, and roads. I was also employed +to collect small debts, and, toward the close of my probation, I +was intrusted with large collections, one of which was in closing +the business of an old firm with outstanding credits of more than +$20,000. + +In those days of primitive barter the merchant was the banker of +all the farmers dealing with him. The farmer sold to the merchant +most of his surplus products, including live stock and pork, and +purchased his supplies, mainly of clothing, tea, coffee, and the +like, and the merchant made advances on the growing crop. At the +close of the year the account was settled, generally with a balance +in favor of the merchant. Little money was used. It was a traffic +in commodities. It was not unusual for the merchant to drive horses +and cattle to Pittsburg or further east, and send the proceeds to +the eastern merchant. + +In the fall of the year it was quite common for the farmer to load +upon his wagon his surplus wheat and haul it fifty miles to Sandusky +and Milan, receiving in return salt and farming implements, and +the balance in money. Wheat was then the only article that would +command cash. At this season the highway was often blocked with +long trains of wagons that would not give way for other vehicles. +At night the wagons would be parked on the roadside near a creek, +and the farmers and their boys would have a regular joyous picnic +on provisions brought from home. This was the life of a farmer +before the days of railroads, and I am not sure but it was a more +happy one than now. Then the village blacksmith or shoemaker, the +tinker, the carpenter and the mechanic of every trade had his shop +and was a far more important and independent citizen than now, when +grouped into large manufacturing and machine works. + +While a student, I was frequently sent by my brother to Wooster, +the nearest bank, with large sums of money to purchase exchange on +New York for his clients. These trips I always made on horseback. +Once, as I was to start quite early in the morning, I received +nearly $2,000 in bills the night before, in two packages, and placed +them in my overcoat. In the morning I threw my overcoat over my +arm and went for my horse. Before mounting I felt for the money +and found it was gone. I started in alarm for the house and on my +way found one package of $1,000 lying on the sidewalk at the corner +of the street where I had passed, but the other was nowhere to be +seen. I felt sure it was picked up by some one. I at once gave +notice to my brother, and he took immediate measures to trace the +finder. I cannot express the chagrin and anxiety which I suffered +on account of my carelessness, but Charles uttered no reproach, +but prepared to replace the loss. Fortunately within a month the +lost money was traced to an "early drunkard," who found the package +on the pavement while going for his morning grog. He was watched +and at night was seen to take some money from his trunk. A search +warrant soon led to the restoration of the money, except a small +sum he had spent. This incident attached me the more to my brother. + +The social life in Mansfield, while I was a student, was very +pleasant and instructive. The freedom, and yet propriety of +intercourse among the young people, was notable. We had social +meetings, parties, dances, and an occasional ball during the winter, +but in summer, riding in carriages and on horseback was the recreation +of the day. Fleming's Ravine, about five miles from Mansfield, +was the general gathering place for young and old. A small stream +had cut a deep ravine with rocky banks on either side. An old mill +with its overshot wheel spanned the ravine and filled it with noisy +rattle. The adjacent woods, where the fire was lit and the coffee +made, and the farm lands stretching beyond, made a picturesque +scene often described and always admired. Here we had dances, +frolics, speeches and fun, with healthy exercise in the open air. +These frolics were often made the subject of description in the +newspapers. On a notable occasion of one of these visits to +Fleming's Ravine, Mr. Franklin Barker, a law student, wrote for +one of the local papers a pleasing description of the scene under +the name of "The Fairy's Tale." He paraphrased Byron as follows: + + "There was a sound of revelry by _day_ + And Richland's capital gathered then + Her beauty and her chivalry and fair eyes + Looked love to eyes that spoke again." + +Many of the persons present were named, or so described as to be +recognized. There was a good deal of egotism and assumption in +the narrative which created much feeling among those who had not +the good fortune to attend. Though I was present, and greatly +enjoyed the picnic, I thought it was a good opportunity to prick +the bubble of self esteem assumed by Barker, and wrote for the +rival newspaper a counter description signed "A Looker On." This +excited a good deal of interest at the time, but it has probably +faded, after half a century, from the memory of the few who survive; +it then created a rivalry and left its mark upon the future. The +destruction of the mill by a flood, the cutting away of the wood +and other causes, have changed this, so that the gathering place +of the young of my day is a thing of the past. + +During my study of law, the bar at Mansfield was considered a very +able one, including among its members James Stewart, Thomas W. +Bartley, Jacob Brinkerhoff, Charles Sherman and others. All of +those named became judges, either of the courts of Ohio or of the +United States. During the same period there were also many law +students in the offices of these gentlemen, among them Samuel J. +Kirkwood, George W. Geddes, Thomas H. Ford, Henry C. Hedges, Willard +Slocum, Joseph Newman, Patrick Hull and others, who afterwards +became distinguished in civil or military life. These students, +myself among the number, organized a moot court, presided over by +Joseph Newman, then in active practice as a partner of Mr. Stewart. +We held famous moot courts in which cases were tried with all the +earnestness, industry and skill that could have been evoked by real +cases. In these trials Mr. Kirkwood and I were usually pitted +against each other, although he studied late in life, and was then +more than thirty years old. He was then a Democrat, but moved to +Iowa in 1856, became a Republican war governor of that state and +United States Senator. I have always regarded our contests in this +moot court as the most important part of my legal training. + +The course of study pursued under the direction of Judge Parker +continued until my admission to the bar, though much interrupted +by the variety and nature of my employment. I read, in addition +to the routine works prescribed by Judge Parker, a great variety +of literary and historical works, and had substantially practiced +my profession a year or more in advance of my admission to the bar. + +I arrived at the age of twenty-one on the 10th day of May, 1844, +and promptly on time on that day I was presented to the Supreme +Court "on the circuit," then sitting at Springfield, Ohio, for +admission to the bar. Several other students were presented, and, +according to the custom of that time, we were all referred to a +committee composed of General Samson Mason, Hon. Charles Anthony, +and one other lawyer whose name I do not recall. All were leading +lawyers of that place, and had been busily occupied in the court. +We met that evening at the office of one of these gentlemen to pass +the ordeal for which we had been preparing for years. A few +questions were put to us which were answered, when some question +was asked, the answer to which led to a decided difference of +opinion among the examiners, and a practical suspension of our +examination. It soon occurred to them that they were more interested +in the cases coming on "to-morrow" than in our efficiency as +incipient lawyers. I was asked under whom I studied. I answered +Judge Parker, and they all agreed that anyone who was certified by +him ought to be admitted. + +My old and dearest friend, and boon companion, Dr. J. C. Buckingham, +of Springfield, was then entering upon his profession. He was an +admirable penman. He obtained leave of the clerk of the court, to +write out my certificate of admission as a member of the bar, and +this he did in beautiful form, handsomely illustrated. He attached +to it an enormous seal, and it was duly signed by the clerk of the +court. I have kept it as a memento of him, but have never had +occasion to present it to anyone. He, poor fellow, died prematurely +at Springfield, when in the full employment of his duties as a +physician, and with the most hopeful prospects of success in his +profession. + +I must not forget that in my boyhood days I had a strong penchant +for military parade. I remember well the respect always shown to +Revolutionary veterans, who survived to the period of my boyhood. +At every meeting, political or otherwise, where these soldiers +appeared to share in the assemblage of citizens, they were received +with profound respect. Hats came off. They were given the best +seats, and every mark of honor was shown them. What boy did not +feel the gushings of patriotic emotion when one of these old veterans +appeared upon the stage. To a less degree, similar marks of respect +were shown to the soldiers of the War of 1812; but, though this +was as great and important an event in our history, it did not +light the spark of patriotic fire like the Revolutionary War. + +Before the war for the Union broke out, military spirit died away, +especially in Ohio. Military organizations had fallen into disuse +and popular contempt. We had, it is true, in times far apart, what +were called militia musters, but Jack Falstaff's regiment was +nothing to our militia. I had the honor to be a member of the +staff of Colonel Urie, of Ashland, when the venerable General Wilson +was the Commander-in-Chief of the militia of that part of Ohio. +He was a hero of the War of 1812, and, as I remember, a gallant +and fine-looking old gentleman. The regiment--so called--without +guns, uniform, or anything proper for a soldier, was with some +difficulty formed into line, but a wavering line, across the public +square at Mansfield and along East and West Market streets, when, +by some misunderstanding of orders, the right of the regiment +marched to the right, and the left to the left. With some difficulty, +and a good deal of swearing, they were brought back into line and +dismissed. Militia day was a day of drunkenness and fighting. No +wonder that years passed without muster. Such was the military +condition of the United States when the War of the Rebellion sounded +the tocsin of alarm, and our generation was called upon to meet +the gravest struggle in American history. + + +CHAPTER III. +OHIO, ITS HISTORY AND RESOURCES. +Occupation by the Indians--Washington's Expedition to the Head of +the Ohio River--Commencement of the History of the State--Topography, +Characteristics, etc., in 1787--Arrival of the First Pioneers--The +Treaty of Greenville--Census of 1802 Showed a Population of 45,028 +Persons--Occupation of the "Connecticut Reserve"--Era of Internal +Improvement--Value of Manufactures in 1890--Vast Resources of the +Buckeye State--Love of the "Ohio Man" for His Native State. + +The life of a man is greatly influenced by the place of his birth, +the surroundings of his boyhood, and the habits and customs of the +community in which he lived. As I have been all my life a resident +of Ohio, and for more than forty years have been one of its +representatives in Congress, or the Cabinet, I feel that a brief +sketch of the history and resources of the state may not be out of +place in this biography. No adequate history of the state has been +written, though many works have given general outlines. The +materials are copious, but I can only state a few events that mark +the changes in its civilization. That it was once occupied by a +race now entirely extinct is evidenced by numerous mounds, earthworks +and lines of fortifications so extensive as to have required to +construct them a dense population with a knowledge of mathematics +far beyond that of any tribe or race existing on the American +continent, when discovered by Columbus. The works of the mound +builders can be seen, and have been described, but no ray of light +has been cast upon, or plausible suggestion made to account for, +the origin, existence or disappearance of this race. + +Long after the settlement on the Atlantic Coast of the Thirteen +Colonies, the territory now included in the State of Ohio was part +of a vast unknown region north and west of the Ohio River. It was +roamed over by numerous tribes of Indians living in tents of bark +or skins, whose residence was generally as transitory as that of +the wandering tribes of Arabia. Many of these Indian tribes were +composed of a few families under the domination of a chief who went +out from his kindred as Abraham did, and planted his tents where +fancy led him, and moved at his whim or with his game. Every one +of the Indian tribes that had been driven by the white man from +the east and the south chose his camping and hunting grounds in +the region of the O-hi-o, often driving away a weaker tribe. Their +contests with white men had given them some knowledge of fire-arms, +and some of them had been marshaled under arms in the wars between +the English and the French, but, as a rule, the Indians encountered +by our race since the landing at Jamestown were all of the same +type of wandering savages. The difference between these tribes +can be accounted for by their location, whether on the seashore or +in the forest or plain, and by the strength of the tribe, from the +powerful Six Nations to the feeble band in possession of some chosen +valley. + +Whatever may be said of the irrepressible conflicts between the +white man and the Indians, waged often with savage and relentless +cruelties on both sides, it may as truly be said that the same +savage conflicts have been carried on between the different tribes +of Indians, which often ended by the extermination of the weaker +tribe, or the absorption of the feeble remnant with the stronger +tribe. This was certainly the case with the Indian tribes of the +northwest territory. Ohio was the battleground for destructive +warfare between the Indian tribes long before the white man gained +a foothold on its soil. + +In 1755, when the war with France commenced, the English settlements +covered the Atlantic Coast, but did not extend across the Alleghany +Mountains, though a few hardy pioneers may have wandered into the +wilderness beyond. But French missionaries, inspired with religious +zeal, had penetrated all the northwest territory, including the +great lakes. In 1673 Marquette and Joliet, two of these missionaries, +after years spent with the Indians on the shores of the lakes, +winning their confidence by humility and care, followed the lines +of the Fox and Wisconsin Rivers from the shores of Lake Michigan, +and discovered the great river "with a joy that could not be +expressed," and floated upon its waters to the mouth of the +Arkansas. + +It is impossible to read the interesting narratives of these +missionaries, of their life among the Indians of the northwest, +and their enthusiastic description of the new and wonderful land +they had discovered, without a feeling of admiration and reverence. +The adventures and trials of these zealous priests read like romance; +but their description of natural scenes, of great rivers, mountains +and plains, now familiar to fifteen million of people, attest the +accuracy of their statements and the courage and zeal with which +they pursued their task. + +The discovery of Marquette was diligently followed by Chevalier de +la Salle, a knight of fortune, of wonderful endurance, who, after +overcoming incredible difficulties, conducted an expedition by the +way of the lakes and the Mississippi River to its mouth. Thus the +King of France, by the piety and zeal of a priest and the courage +of an adventurer, was able to base his claims to fully half the +continent of North America upon grounds recognized as valid by +European law, namely, the discovery of the St. Lawrence, the +occupation of Canada, and the discovery of the Mississippi from +its source to its mouth. The great body of the continent is drained +by these two rivers. Their discovery and occupation was sufficient +at that time to give to France the right of exclusive possession +of that vast territory, for the title of the Indian tribes was not +considered valid by Christian powers. While the priests of France +were seeking to save the souls of the Indians, the Kings of France +were seeking to rob them of their property. + +The French, during this period, erected a line of posts from the +mouth of the Mississippi, by way of the Wabash, Maumee and the +lakes, to Montreal, and finally, in 1733, established a line of +posts from Lake Erie to the junction of the Monongahela and Alleghany +Rivers, where Pittsburg now stands, and claimed the whole country +north of the Ohio from its source to its mouth. + +And here, for the first time, comes into view the majestic form of +George Washington, then a young man of twenty-two. He was sent by +Governor Dinwiddie, of Virginia, to visit the several Indian tribes +at the head of the Ohio River and the French forces at Venango. +In the dead of winter he made his trip into the wilderness, and +soon ascertained that it was the fixed purpose of the French +authorities to occupy all the country to the sources of the Ohio, +including a large section of what is now a part of Pennsylvania +and New York. The commander, St. Pierre, declared his purpose of +seizing every Englishman within the Ohio valley. The result of +the expedition of Washington left no choice to the English government, +except to abandon their claim to the northwest territory, or to +declare war. The English title was based upon their occupation of +the shores of the Atlantic coast from Massachusetts to Georgia. +It was claimed that this occupation carried the right to possession +westward from sea to sea. + +In the earliest grants to the colonies, especially to Virginia and +Connecticut, their western boundaries extended to the South Sea. +Where the South Sea lay, and what was the breadth of the continent, +was not defined by these kingly grants. James I and his councilors +then knew but little about America. There was no way to settle +this disputed title between the two powers but by war. A Virginia +company had built a fort on the south side of the Ohio, below the +site of the present city of Pittsburg. In 1754 the French troops +occupied the point at the junction of the Monongahela and Alleghany, +where the city of Pittsburg now is, and erected a fort. + +Then followed the well-known war of the French and English, Braddock's +defeat, the heroism of Washington, the capture of Quebec and the +cession of Canada and the northwestern territory to Great Britain. +It is impossible to overrate the importance of these events upon +the future of America. The result was that the region east of the +Mississippi River and north of the Ohio River was the property of +Great Britain and the inheritance of the English race. The great +northwest was theirs, and fairly won. + +The extinction of the French title to the Ohio territory was at +once followed by the claims of several colonies to parts of this +territory under grants from the British crown; but the English +government declared all the land west of the sources of the Atlantic +rivers as under the dominion of the king for the use of the Indians, +and all persons were forbidden to settle or remain within it. This +dispute was postponed by the War of the Revolution. An event during +the war, apparently of small importance, had a controlling influence +in securing to the United States the northwestern territory. + +The State of Virginia, claiming title under a grant from the British +crown to the regions west of the Alleghanies, in 1778, organized +an expedition, under Colonel George Rogers Clark, to punish and +repel incursions of Indians, and capture the old French posts then +held by the English. This he accomplished, so that when negotiations +for peace were entered upon in 1782 our plenipotentiaries could +maintain the title of the United States to the northwestern territory, +not only by grants to the English colonies, but by conquest in war, +and actual possession at the time of the negotiations. The British +insisted on making the Ohio River a boundary of the United States. +Mr. Adams said that sooner than yield the western territory he +would exhort his countrymen to continue the war as long as they +could keep a soldier in the field. Mr. Jay was equally determined, +and finally the line of the lakes was agreed to. + +The treaty of peace recognized the St. Lawrence, the lakes and the +49th parallel of latitude as the dividing line between the United +States and Canada. But the question arose whether the western +territory was the property of the United States as the result of +their joint struggle for independence, or of the several states +under the grants of the English crown. This dangerous controversy +delayed the formation of the federal government; but it was happily +settled by the cession of the territory to the United States, with +or without conditions and reservations, by the several states +claiming western lands. + +As a part of this cession and settlement, and almost equal in +importance to the constitution of the United States, was the +celebrated ordinance organizing the northwestern territory. This +ordinance guaranteed the subdivision of the territory into states, +and secured to them, by a perpetual compact, the forms and substance +of a republican government, a proper disposition of the public +lands, and the formal prohibition of slavery in the territories, +and may be properly considered the commencement of the history of +the State of Ohio. + +We may here pause to consider the condition, topography and +characteristics of the Territory, now the State, of Ohio in 1787, +when the first territorial government was organized by Congress. +It was bounded on the south and east by the Ohio River, touching +on its northeast border the States of Pennsylvania and New York; +on the north by Lake Erie, and on the west by an arbitrary line +not then defined, and contained about 40,000 square miles. Its +topography may be described as an elevated plain, its highest +elevation being 1,540 feet above the sea, its lowest depression +being 440 feet above the sea, and its mean altitude about 800 feet +above the sea. It is traversed by the comb of a watershed between +the river and the lakes, running from northeast to southwest across +the state, much nearer the lake than the river, at an elevation +above the sea of from 1,000 to 1,300 feet. The shed on either side +is penetrated by rivers of clear, pure water, in valleys of great +fertility, and usually with hillsides of a gentle slope and fertile +soil. + +In 1787 it was an unbroken wilderness covered with great forests +and sparsely inhabited by savage tribes of Indians, only here and +there tempered by the civilizing teachings of the missionary. One +of the earliest descriptions I find of the famous Miami Valley is +as follows: + +"The land beyond the Scioto, except the first twenty miles, is rich +and level, bearing walnut trees of huge size, the maple, the wild +cherry and the ash; full of little streams and rivulets; variegated +by beautiful natural prairies, covered with wild rye, blue grass +and white clover. Turkeys abounded, and deer and elks, and most +sorts of game; of buffaloes, thirty or forty were frequently seen +feeding in one meadow. Nothing is wanting but cultivation to make +this a most delightful country." + +This favored land was thrown open for settlement at a time when +the people of the states had been impoverished by the war, when +there was neither money, credit nor commerce, when the government +of the Continental Congress had fallen into contempt, and the new +government was passing the ordeal of a vote in states jealous of +each other. It was the only land subject to sale by the United +States, for Kentucky was covered by Virginia grants, Western New +York was the property of land companies, and all beyond was a _terra +incognita_. There was a struggle for Ohio land among all the +northern states, including Virginia and Maryland. Companies were +formed, composed mostly of officers and soldiers of the Revolutionary +War, to secure from Congress favorable land grants. Virginia and +Connecticut had their ample reserves, New York had a large unoccupied +region in her territory, and the other northern states demanded +their shares in the common property of the United States. The +result was that all the states established settlements in Ohio, +and, for the first time in our history, the descendants of the +Puritans of New England, the Dutch of New York, the Germans and +Scotch-Irish of Pennsylvania, the Jersey Blues, the Catholics of +Maryland, the Cavaliers of Virginia and the loyal refugees of Canada +united their blood and fortunes in establishing a purely American +state on the soil of Ohio. + +Among these early settlers were the foremost men of all the states, +the Revolutionary stock that won independence, who carried their +love of liberty and the principles and instincts of their localities +to a soil more fertile than any of the old states, and with natural +resources, climate and facilities for settlement and civilization +as favorable as any within their reach. The limits of this sketch +will not permit details of the progress of this migration. The +first difficulty it encountered was the toilsome way to the promised +land. All roads, such as they were, crossed the Alleghany Mountains, +or followed the longer route by the lakes. A voyage now easily +made in a day then occupied sixty days on foot or on horseback, +and every article of civilized life had to be transported with +painful labor over rude paths and roads, relieved sometimes by +barges and canoes on creeks and rivers. + +When the first pioneers reached their destination, their land was +already occupied. Every part of Ohio was then in the possession +of Indians. The war they had maintained with the pioneers of +Kentucky only prepared them for the desperate struggle with new +invaders. The first settlement of the New England colony was made +in Marietta, April, 1788. From that day to the close of the war +with Great Britain in 1815 there were hostilities in some part of +Ohio with the Indians. There is not a county in Ohio that was not +at some time the scene of a battle with the Indians, or a skirmish, +or a massacre. + +The interesting "Historical Collections," recently published by +Henry Howe, give many details of this local warfare. But, aside +from the danger that lurked at all times over the cabin of the +pioneer, there were more regular battles with the Indians fought +on the soil of Ohio than in any other state of the Union. The +defeat of General Harmer with 1,300 men, in 1790, in two battles +in the Scioto valley, laid open to predatory warfare all the +settlements in Ohio, and some in Kentucky. Every attempt at +negotiations was defeated by British interference. + +In the following year, 1791, a force of over 2,000 men was organized +at Cincinnati under General St. Clair, and marched against the +Indians at the head waters of the Maumee. While encamped they were +attacked by the Indians and ignominiously defeated, losing a large +number of officers and men. They retreated in disorder, abandoning +their baggage and artillery, and throwing away their arms and +accoutrements. The loss in this disastrous campaign was more than +900 men, of whom 600 were killed. This calamity spread terror +throughout all the settlements as far as Pittsburg, and arrested +for a time the migration to Ohio. + +The successive defeats of Harmer and St. Clair greatly impressed +General Washington with the necessity of marching an overwhelming +force against the Indians, and he appealed to Congress for the +necessary aid; but there was a manifest reluctance in Congress to +vote supplies, even if the failure to do so involved the abandonment +to the Indians of all the territory northwest of the Ohio. The +supplies, however, were granted, and General Wayne, a Revolutionary +hero, was placed in command. + +In August, 1794, with a force of over 3,000 men, he advanced to +the confluence of the Maumee and the Auglaize, and there destroyed +the Indian villages and their abundant crops. + +Following the Indians down the Maumee to a fort recently built by +the British, the forces of General Wayne attacked the Indians and +inflicted upon them a disastrous defeat. This victory settled +forever the occupancy of this territory by the white man, and the +irreversible fate of the poor Indian, though, as it will appear +hereafter, he struggled for this, his favorite region, for twenty +years more. + +In looking back over a period of one hundred years it is impossible +to suppress a sense of injustice, and a feeling of sympathy for +the Indian in his unequal struggle. After their defeat by General +Wayne, a general conference of all the Indian tribes in the northwest +was proposed, and agreed upon, to be held during the following year +at Greenville. The full details of this conference are given by +Judge Burnet, in his "Notes on the Northwestern Territory." General +Wayne, in many "council fires," explained to the chiefs of the +numerous tribes the terms of the treaties made at Forts McIntosh +and Harmer, and demanded that they be ratified with additional +concessions and grants. Many of the replies, in the figurative +language of the Indians, are eloquent appeals to their "Great +Father" and their "Elder Brothers" to allow them to possess in +peace the land of their fathers; that they were not represented +when these treaties were made, and that their terms had not been +observed by their white brethren. + +It was the same old story of injustice and wrong, of might against +right. They were compelled to accept the terms offered them. The +result was the cession by the Indians to the United States of 25,000 +square miles of southern and eastern Ohio and many other tracts +west of Ohio. The Indians were to receive in return $20,000 in +presents, and an annuity of $9,500, to be distributed among the +tribes. By this treaty confidence was restored to the settlements, +and the tide of migration was renewed, and continued until the +breaking out of the War of 1812. But the treaty of Greenville did +not put an end to Indian hostilities. They still occupied northwestern +Ohio, and that part of the reserve west of the Cuyahoga River. +Occasional aggressions by both races led to outrages and murder, +usually followed by encroachments on Indian territory. In 1805 +the remainder of the Western Reserve was ceded by treaty. In 1818 +the northwestern part of Ohio was purchased by the United States +by treaty, subject to certain reservations, all of which were +subsequently ceded to the United States, the last by the Wyandots +in 1842, when the remnant, about 700 souls, moved to Kansas. + +The most important, and by far the most dangerous, conspiracy of +Indians since the treaty of Greenville was organized by the "Prophet," +a crazy enthusiast denounced as an impostor and accused of witchcraft, +and his brother, Tecumseh, a warrior of approved courage, possessed +of all the craft of the Indian, with remarkable intelligence and +comprehensive views. They united most of the tribes who had +participated in that treaty, and threatened with death all the +chiefs who were concerned in the subsequent treaties. This excited +the attention of General Harrison, then Governor of the Territory +of Indiana, who, in 1811, after many ineffectual conferences with +Tecumseh and the "Prophet," organized a force of 800 men and marched +against the "Prophet's" town, in what is now Cass county, Indiana. +The battle of Tippecanoe ensued, in which the Indians were totally +defeated and the town burned. The loss of the troops was so great +that General Harrison made a speedy retreat. The war with Great +Britain soon followed, and Tecumseh entered the British service. +He participated in most of the battles in Ohio and Michigan during +that war, and was killed at the battle of the Thames on the 5th of +October, 1813. With him ended all organized Indian hostilities in +Ohio. + +Prior to 1798 all the laws governing the northwestern territory +were selected from the laws of the states by the territorial judges +appointed by the President. In that year it was ascertained that +the territory contained 5,000 white male inhabitants, when they +were authorized, as a matter of right, to organize and elect +representatives to a general assembly, who, with a legislative +council, were authorized to pass laws, subject to the veto of the +governor. The general assembly was duly organized on the 16th of +September, 1799, and was remarkable for the ability and distinction +of its members, most of whom had been soldiers in the Revolutionary +War. This was the beginning of home rule in Ohio. The life of +the territorial legislature was brief. Early in January, 1802, a +census was taken of the inhabitants in the eastern division of the +Territory, now the State of Ohio, by which it was found that it +contained 45,028 persons. Congress promptly authorized the people +to form a constitution and state government. This authority was +speedily acted upon, a convention of thirty-five members was elected, +and a constitution adopted November, 1802, without being submitted +to the people. + +This constitution remained unaltered in a single particular for +fifty years. It was regarded at the time, and ever since, as a +model framework of state government, clear and brief in its +provisions, but comprehensive enough to meet the necessities of a +people growing in population from 45,000 to 1,980,329 in 1850. +The present constitution of Ohio was framed by a convention, which +met at Columbus, on the 6th of May, 1850, and adjourned on the 10th +of March, 1851. This constitution was ratified by a majority of +the people, and is still in force. + +The decennial growth of the population of Ohio is here shown: + + 1802 . . . . 45,028 + 1810 . . . 230,760 + 1820 . . . . 381,295 + 1830 . . . 937,903 + 1840 . . . . 1,519,467 + 1850 . . . 1,980,329 + 1860 . . . . 2,339,511 + 1870 . . . 2,665,260 + 1880 . . . . 3,198,062 + 1890 . . . 3,672,316 + +In 1802 Ohio was eighteenth in rank among her sister states; in +1810 the thirteenth; in 1820 the fifth; in 1830 the fourth; in 1840 +the third, and so continued until the recent census when the +marvelous growth of Chicago placed Illinois in advance of Ohio. +This remarkable growth was accompanied by rapid changes in the +habits and conditions of the people. Within a century they had +their struggle with the Indians; then their contest with nature in +a new country covered by forests--the "age of the pioneers;" then +the period of internal improvements, when roads and canals and +means of transportation were the great objects of desire; then the +marvelous development of railroads, followed by manufactures. +These changes, following in succession, are the most striking +features of the history of Ohio. I have already referred to the +pioneers who planted the first settlement, who bore the brunt of +Indian warfare, and firmly founded free institutions in Ohio. + +After this period, and the organization of the state government, +the great migration to Ohio commenced which, within a century, was +destined to extend across the continent. The settler was generally +poor, bringing all his earthly possessions, with wife and children, +in a covered wagon, slowly traversing difficult roads to the new +and only land, then open to settlement. But the land was cheap, +the title clear, the soil good, and all were on the same footing, +willing to help each other. The task before him was discouraging. +He found his quarter-section in the unbroken forest, its boundary +blazed on the trees by the surveyor, and all around him a wilderness. +His first work was to erect a rough cabin of logs for a shelter; +his next to clear an opening for a crop. Every new settler was a +welcome neighbor, though miles away. The mail, the newspaper, the +doctor and the preacher were long in coming. In this solitary +contest with nature the settler had often to rely upon his gun for +food, upon simple remedies for new and strange diseases, and upon +the hope that his crop would be spared from destruction by wild +beasts. + +This was the life of the early settler in every county in Ohio, as +each in its turn was organized and opened to settlement. A life +so hard, was yet so attractive that many pioneers, when a few +neighbors gathered around them, preferred to sell their clearings +and push further into the wilderness. In the meantime the older +settlements attracted newcomers. Mechanics and tradesmen came +along them. Then towns sprang up, and incipient cities, with corner +lots and hopeful speculators, tempted eastern capitalists to invest +their money in Ohio. + +Ohio, in these early days, was the only outlet of the population +of the northern and middle states. Emigrants from the south, +following lines of latitude, went into Kentucky and Tennessee. +The great west, with its vast prairies and plains, was not then +accessible. Had it been so, the forests of Ohio might have been +left in solitude for many years to come. During all this period, +which we may properly call the pioneer stage, the settlers had no +market for their produce, except to supply the demand of incoming +immigrants. Grain and fruit would not bear the expense of +transportation. The only way to obtain ready money was to convert +corn and grain into hogs, horses and cattle, which were driven on +the hoof to Pittsburg and eastern cities. But little money +circulated, and that was chiefly irredeemable bank notes. The +clothing of the people was mainly of linsey-woolsey, home-made. +The spinning wheel, big and little, was to be found in every +household. Settlers near the banks of the Ohio River, and its +tributaries, had the advantage of floating their surplus products +in rough barges down the Ohio to New Orleans for a market, so that +the southern part of the state advanced rapidly, while the northern +part was still in the possession of the Indians. + +When the Indian title was extinguished settlers came from Pennsylvania +into the counties immediately west of it, which are still, in the +habits of the people, in the location of houses and barns and the +cultivation of the soil, the precise counterpart of the region from +which the settlers came. The "Connecticut Reserve" was slowly +filled by the northern route of the lakes, almost exclusively from +New England, and the habits and customs of that region were +transported to their new homes, so that the "Western Reserve" to- +day is a striking type of old Connecticut in habits, and with the +same ideas. The lakes became the highway of commerce, and the +inhabitants of the interior carried their surplus grain and produce +in long lines of wagons to the new towns along the lake shore, +where it was exchanged for the necessaries of life and enough money +to pay taxes. All trade in the interior was by barter with merchants, +who became the bankers of the people. + +The construction of the Erie Canal, and the introduction of steamboats +on the rivers and lakes, was the beginning of a great revolution. +Then followed in Ohio the era of internal improvement by the +construction of two lines of canal across the state, one from +Cleveland, on Lake Erie, to Portsmouth, on the Ohio River, and the +other from Toledo, on Maumee Bay, to the city of Cincinnati, with +the lateral canal to Pittsburg, and the improvement of the Muskingum +River by locks and canals. + +Salmon P. Chase, then a young attorney at Cincinnati, in his +introduction to his compilation of the laws of the state, published +in 1833, thus describes the effect of these improvements upon the +prosperity of Ohio: + +"They have afforded to the farmer of the interior an easy access +to market, and have enhanced the value of his farm and his productions. +They have facilitated intercourse between different sections of +the state, and have thus tended to make the people more united, as +well as more prosperous. They have furnished to the people a common +object of generous interest and satisfaction. They have attracted +a large accession of population and capital. And they have made +the name and character of Ohio well-known throughout the civilized +world, as a name and character of which her sons may be justly +proud." + +This period of prosperity continued for twenty years, when, in +1846, a still greater revolution was introduced by the building of +railroads. The first object of this was to furnish cheaper +transportation of the produce of the farmer to the Ohio River and +Lake Erie. The first railroads were from the interior, north and +south. They were little better than tramways, supported by cross- +ties with longitudinal stringpieces covered with thin strips of +iron. The carriages were propelled by feeble engines, and it was +thought a matter of great importance when, by this new motive power, +a bushel of wheat could be transported from the interior to distances +of from fifty to a hundred miles for from six to ten cents. While +a young attorney, I thought it a grievous injustice that my client, +one of the new railroad companies, was compelled by a jury to pay +$2,000 for the right-of-way over twenty miles of farm land. It +was soon discovered that railroads were to be so successful that +they would supersede for the transportation of persons and passengers +all kinds of water transportation, and that lines running long +distances east and west would have the benefit of the through travel +and traffic. In rapid succession several lines of railroad were +built from the eastern cities across the state to the northwest, +west and southwest. Within twenty years from the first construction +of railways they had almost superseded all former modes of +communication, and had reduced the rates of travel and transportation +to less than one-half the former rates. + +After the close of the Civil War the construction of railroads +rapidly increased, so that in 1890 the total miles of railway track +in Ohio was 10,464, and the valuation for taxes was $102,950,642, +a development in a single branch of industry far greater than in +any other. This improvement led to the adoption of a system of +free turnpikes in most of the counties in Ohio, constructed by +local taxation, so that now Ohio is as well supplied with well- +constructed turnpikes and railroads as any state in the Union, and +perhaps, as well as many European states. + +Another great change in the industry of the people of Ohio rapidly +followed the construction of railroads. Manufacturing establishments +of almost every kind were rapidly constructed, mostly since the war. + +It appears by census, prior to 1890, that in 1850 the total value +of manufactures of Ohio was $62,692,279; in 1860 it was $121,000,000; +in 1870 it was $269,713,610; in 1880 it was $348,298,300. In 1890 +it was over $500,000,000. During the single year 1889 there were +incorporated over 400 new companies with a capital stock of +$25,584,500. Almost every article needed for use by the people is +thus produced at home, and great quantities of machinery, especially +of farming machines of every variety, are exported to every state +of the Union and to many foreign countries. The manufacturing +industry has thus become second only to that of agriculture, and +it is believed that, under the great impetus given by our protective +laws, the time is not far distant when the value of manufactured +products will be equal to, or greater than, the productions of the +farm. + +The most striking result of the change in the industries of Ohio +is the rapid increase of city population, compared with farming +population. The following table will show the population of twenty +cities, by the censuses of 1850 and 1890: + + 1850. 1890. + Akron . . . . . . . 3,266 27,601 + Canton . . . . . . 2,603 26,189 + Chillicothe . . . . 7,100 11,288 + Cincinnati . . . . 115,435 296,908 + Columbus . . . . . 17,882 88,150 + Cleveland . . . . 17,034 261,353 + Dayton . . . . . . 10,977 61,220 + Findlay . . . . . 1,256 18,553 + Hamilton . . . . . 3,210 17,565 + Ironton . . . . . ---- 10,939 + Lima . . . . . . . 757 15,987 + Mansfield . . . . 3,557 13,473 + Newark . . . . . . 3,654 15,286 + Portsmouth . . . . 4,011 12,394 + Sandusky . . . . . 5,087 18,471 + Springfield . . . 5,108 31,895 + Steubenville . . . 6,140 13,394 + Tiffin . . . . . . 2,718 10,801 + Toledo . . . . . . 3,829 81,434 + Zanesville . . . . 7,929 21,009 + 221,553 1,053,910 + +While the aggregate population of Ohio has increased 185 per cent. +since 1850, that of the cities named has increased 475 per cent. + +The growth of cities and manufactures has been accompanied by the +discovery and development of a diversity of mineral resources of +great and increasing value. + +The mining of coal was insignificant in 1850, while the product of +coal in 1890 is estimated at exceeding 12,000,000 tons. + +Recently petroleum was discovered near Marietta and Lima, places +in Ohio remote from each other, thus supplying a new element for +commerce and a new agent for manufactures. Its properties and +innumerable uses have already been tested in Pennsylvania. The +annual supply by the census of 1890 was 12,471,466 barrels, second +only to that of Pennsylvania, and has not yet reached its maximum. + +About the same period came the discovery of natural gas at Findlay, +in Hancock and surrounding counties. This subtle and mysterious +creation of nature has been applied locally as fuel for manufacture, +and as light and heat in many cities and towns. The duration of +its supply, however, cannot be determined. + +The lakes on the north and the river on the south secure to the +people of Ohio cheap water transportation for the importation and +exportation of raw materials and finished products, while the +physical features of the country north and south of Ohio, in a +measure, compelled the construction of the great routes of railway +over its soil. + +From the beginning Ohio has taken a leading part in furnishing +facilities for education to the rising generation. In early days, +when the population was sparse and scattered, day schools were +established, by voluntary effort, in counties, towns and neighborhoods +where the population was sufficient to justify it. At an early +period the State of Ohio established the common-school system, by +which every child between the ages of seven and fourteen years is +furnished with the rudiments of a good education. Some of these +schools have been so far advanced that in them any child showing +proficiency can secure, without cost, an education fully equal to +that furnished by the colleges of the country forty years ago. +The amount expended in 1890 for the support of public schools was +$11,407,499. The number of teachers employed was 19,526. The number +of persons enrolled between the ages of six and twenty-one was +1,123,985. The number of scholars who attended was 797,439. The +average attendance was 549,269. The excellence of the system of +common schools in Ohio is admitted on all hands to be equal to that +of any other state or section. + +The charitable institutions of the state, including children's +homes, are equal to the best in any country in the world. + +The building of churches and places of public worship commenced +with the first settlement in Ohio, and has kept pace fully with +the growth of population. In every community, great or small, +churches are open for the worship of the Almighty God. The broadest +toleration is not only permitted, but favored, by a universal public +sentiment. Every denomination of Christians who number enough to +make a congregation can readily secure a house of worship, not only +by gifts from its members, but by contributions made by other +professing Christians. The same charity is extended to Jews and +Gentiles professing any creed or having any form of worship. + +The standing, ability and influence of the men engaged in the +professions in Ohio will compare favorably with any in the Union, +and especially is this true of the lawyers of the state. Many of +the lawyers who engaged in the fervent discussion which led to the +Revolution and then participated in the war, thrown upon their own +resources after the war, were among the early founders of the new +settlements in Ohio. They chiefly framed the first laws of the +state. Judge Burnet, one of them, had intrusted to him the +preparation of most of the laws of the territorial government. +The principal lawyers appeared in the constitutional convention +and in the legislatures subsequent, and contributed more than their +share in ingrafting upon our statutes the republican principles +and ideas found in the first constitution and laws of the state. +They shared with other settlers in all the hardships of pioneer +life. Innumerable anecdotes of their voyages through the forests +of southern and eastern Ohio, and the swamps of northwestern Ohio, +are preserved among the traditions of the bar. + +It was the habit in those early days for the principal lawyers of +the state to follow the judges in their rounds from county to +county, attending the courts and aiding local attorneys in the +trial of important causes. They rode on horseback, with their +clothing and books in their saddlebags, and, where a better lodging +could not be found, camped in the woods by the roadside. The early +judges of the Supreme Court, some of whom were transferred to the +Supreme Court of the United States, rode in the same manner on +their circuit, administering justice impartially, but firmly, for +the salary of $1,000 a year, only raised to $100 a month about the +year 1820. The doctors and preachers shared the general life and +condition and the same homely fare as their patients and hearers. + +A life like this developed individual character and produced many +men of odd characteristics, strange manners and peculiar dress and +conversation. The almost universal use of whisky during the pioneer +period in the family circle and in social life, and the habit of +treating and drinking, led to many wild scenes and fights, but, +unlike their brethren of the south, the contestants commonly were +content with the weapons nature gave them. It was not unusual, +when a quarrel arose, to gather around them, form a circle and give +them fair play and a free fight. There can be no doubt that in +those early days many rude scenes and fights and violence of many +kinds occurred, and such crimes were indulged with more charity +than now prevails. But it is equally true that thefts and the +meaner crimes were more rare than now, and when disclosed were +punished with greater severity than acts of violence. The stealing +of a horse was considered a greater crime than manslaughter without +malice or premeditation. + +But all these habits and ideas have been greatly changed for at +least fifty years. The habit of drinking spirituous liquor at the +homestead, in the family circle, or on the farm, has almost entirely +ceased. As a rule, it is confined to saloons and bar-rooms, mostly +in the cities and large towns, and a "free fight" in the presence +of spectators could not now occur in any community in the state. +The enforcement of the criminal laws is as certain as in any other +community. The discipline of penitentiaries and reformatories and +houses of correction is founded upon the best examples of such +institutions in the older states, and the most civilized countries +of Europe. + +There is one other quality developed by the people of Ohio which +will be readily conceded by all. The people from the earliest days +were born politicians, vigorous in the defense of their opinions +and firm in the maintenance of all their rights. The events in +their history developed a military instinct which led them to take +an active part whenever their country became involved in war. In +the pioneer age nearly every able-bodied man served either in the +Indian wars or in the War of 1812. In the Mexican war the State +of Ohio furnished her full quota of soldiers, and tendered thousands +more. In the political contests that preceded the Civil War the +lines between the two parties were sharply drawn, though when war +was commenced by the firing upon Fort Sumter the people were +practically united for its prosecution until the Union was restored +by the unconditional surrender of the Confederate armies. Questions +arose involving individual rights upon which the Democratic party +was divided, but it is due to history to say that in the great +struggle for national life the people of Ohio, without distinction +of party, with few individual exceptions, were on the side of the +Union. + +The share taken by the several states in the Civil War is familiar +to all. Invidious comparisons ought not to be made. It will be +conceded that Ohio did its full part in this supreme contest. She +furnished to the Union army 319,659 soldiers, or more than one- +tenth of the national armies, out of a then population of 2,339,000, +some of whom served in every considerable battle of the war. She +furnished from among her sons the leading commanders of the Union +army, and a long list of distinguished officers who were conspicuous +in every battle of the war. The war Governors of Ohio were +conspicuous in their zeal and ability in organizing recruits, and +in care and attention to their comfort and wants. The people of +Ohio, both men and women, contributed freely in many ways for the +relief of the sick and wounded during the war, and after its close +provided homes for needy soldiers, and for the children of those +who fell. + +I have carefully refrained from mentioning the names of the many +illustrious citizens of Ohio who contributed most to the organization, +growth and development of that state and of the United States, lest +I omit others equally worthy of honorable mention. The Governors +of Ohio have been selected for conspicuous service to the state, +or to the United States, and, though the powers of that officer, +under the constitution of Ohio, are not so great as in many of the +states, they were distinguished for ability, integrity and high +personal character. The roll of statesmen who have served Ohio in +the Senate and House of Representatives of the United States includes +many of commanding influence in the national councils, two of whom +have been Presidents of the United States, two Chief Justices of +the Supreme Court of the United States, and many others have occupied +seats as Justices of the Supreme Court, as heads of departments of +the executive branch of government, and representatives of the +highest rank in our diplomatic service. + +It is not intended to make a comparison of the merits of individuals +or parties, nor of Ohio with other states, old or new. I concede +that all the states, old or new, have contributed to the strength +of the republic, the common hope and pride of all American citizens. +Local or state pride is entirely consistent with the most devoted +loyalty to the Union. All I have sought is to present truthfully +a mere outline of the history and resources of a state carved within +a century out of a wilderness, having at the beginning no inhabitants +but savage men and wild beasts, no mark of civilization except that +made by an extinct race leaving no name or date or history, and +now converted into the peaceful home of four millions of human +beings, possessed of a full share of property and wealth, a soil +rich and fertile, well cultivated by independent farmers, yielding +more than the entire production of all the colonies that rebelled +against Great Britain, and producing by varied industries and +developed resources more than all the states produced when the +constitution was adopted. + +In intelligence, means of education, temperance, order and religious +observance, Ohio may fairly take its place among the most favored +communities in the world. It is a type of what can be accomplished +under favorable circumstances by a free people under a free +government, where each citizen enjoys the full and undisputed +possession of equal rights and opportunities. Ohio commenced its +existence on the western border line of civilization on the continent. +The center of population has already passed its borders, so that +it now takes its place, not in the west, but in the east. The new +communities that have been founded in the west are largely composed +of the sons and daughters of Ohio, who, following the example of +their ancestors, seek new fields for enterprise and industry. I +have observed that whenever I traveled in the west, however remote +the place, I found the "Ohio man" well advanced among his fellow +citizens, and actively contributing his full share to the growth +and prosperity of the community in which he lived, but retaining +his love for his native state, and always proud to say he was born +in Ohio. + + +CHAPTER IV. +ADMISSION TO THE BAR AND EARLY POLITICAL LIFE. +Law Partnership with my Brother Charles--Change in Methods of Court +Practice--Obtaining the Right of Way for a Railroad--Excitement of +the Mexican War and its Effect on the Country--My First Visit to +Washington--At a Banquet with Daniel Webster--New York Fifty Years +Ago--Marriage with Margaret Cecilia Stewart--Beginning of My +Political Life--Belief in the Doctrine of Protection--Democratic +and Whig Conventions of 1852--The Slavery Question--My Election to +Congress in 1854. + +After I was admitted to the bar I felt the natural elation of one +who had reached the end of a long journey after weary waiting. I +spent two or three weeks in visiting my relatives in Dayton and +Cincinnati, attending the courts in those cities, where I observed +closely the conduct of judges and lawyers in the trial of cases, +and returned to Mansfield full of confidence, and with a better +opinion of myself than I have entertained since. + +The first object I sought to accomplish was the removal of my mother +and her two unmarried daughters, Susan and Fannie, from Lancaster +to Mansfield. At this time all her sons were settled at homes +distant from Lancaster, and her other daughters were married and +scattered. By an arrangement between my brothers, Charles and +Tecumseh, and myself, I was to keep house with mother in charge, +Susan and Fannie as guests. This family arrangement was continued +until Susan and I were married and mother died. + +To return to my admission to the bar. I felt that I was now a man. +I had heretofore banked mainly on the treasures of hope. My brother, +Charles Sherman, admitted me as an equal partner in his lucrative +practice, and thus I gained a foot-hold in the profession. +Fortunately for me, his timidity required me to attend stoutly +contested cases brought to us. The old distinction between law +and equity proceedings was then preserved, and Charles was a very +good equity counselor. With this line of distinction between us +we never had any difficulty in arranging our business, or in dividing +our labor. He was then agent and attorney for New York and eastern +creditors, the confidential adviser of our leading business men, +and the counselor of a very interesting sect, then quite numerous +in Richland county, called Quakers, or Friends, who could not +conscientiously take the usual oath, but in witnessing all necessary +legal papers, and in contests, made their affirmations. There was, +therefore, left to me the pleadings, oral or written, and the +struggle of debate and trial. The practice of the bar in Ohio had +greatly changed from that of the early decades of this century. +As I have stated, the judges, in the earlier decades, accompanied +by leading lawyers, mounted on horses, went from county to county +and disposed of the docket. The local lawyers had but little to +do. Now all this is changed. Each county has its bar and its +leading lawyers, and only when the case is of great importance a +"foreign" lawyer is called in. The change has been caused by the +abnormal growth of population. In 1830 the total population of +the state was only 938,000, that of many of the counties being very +small. In 1850 the population had more than doubled, amounting to +1,980,000. In 1890 it was 3,672,000, well distributed among the +counties according to their capacity for supporting this increase. + +Other remarkable changes have also taken place during the same +period. The entire mode of conducting business in early days has +been abandoned. Cash payments and short accounts have taken the +place of barter and credit. The Ohio banking law of 1846, followed +and superseded by the national banking act of 1863, produced a +radical change in the forms, credit and solvency of paper money, +and, more than any other cause, has encouraged the holding of small +savings of money in savings banks and like institutions. These +favorable conditions tended to limit credits, to encourage savings, +and to change the vocation and habits of lawyers. + +Changes in methods have also affected the legal profession. The +adoption of a code of laws, and of new and simple pleadings, rendered +useless half the learning of the old lawyers, driving some of them +out of practice. I knew one in Mansfield who swore that the new +code was made by fools, for fools, and that he never would resort +to it. I believe he kept his word, except when in person he was +plaintiff or defendant. Yet, the code and pleadings adopted in +New York have been adopted in nearly all the states, and will not +be changed except in the line of extension and improvement. + +These reforms, and the many changes made in the organization of +our state and federal courts, have to a considerable extent lessened +the fees and restricted the occupation of lawyers. But it can be +said that the leading members of the legal profession proposed and +adopted these reforms, and always advocated any legislation that +tended to simplify and cheapen litigation and at the same time +protect life, property or reputation. + +While these causes were operating against lawyers, agents of nature, +hitherto unknown, undiscovered, and wonderful, were being developed, +which were to completely revolutionize the methods of travel, the +transportation of goods, and the modes of production, thus opening +new fields for the employment of lawyers. Instead of assault and +battery cases, suits for slander and the collection of debts, the +attention of lawyers was directed to the development of railroads, +banking institutions and other corporations. + +The construction of railroads caused a most remarkable revolution +in the habits and industries of our people. The first built in +Ohio ran from Lake Erie or the Ohio River, north or south into the +center of the state. Among them was the Sandusky & Mansfield road, +originally a short line from Sandusky to Monroeville, intended to +be run by horse power. It was soon changed to a steam road, the +power being furnished by a feeble, wheezing engine, not to be +compared with the locomotive of to-day. It was then extended to +Mansfield, and subsequently to Newark, but was not completed until +1846. It was built of cross-ties three feet apart, connected by +string pieces of timber about six by eight inches in dimensions, +and a flat iron bar two and one-half inches wide and five-eighths +of an inch thick. The worthlessness and danger of such a railroad +was soon demonstrated by innumerable accidents caused by the spreading +of rails, the "snaking" of the flat bars of iron through the cars, +and the feebleness of the engines. Both road and engines soon had +to be replaced. In every case which I recall the original investment +in the early railroads was lost. + +It was thought when the first railroad from Sandusky to Mansfield +was completed that the road would save the farmer five or six cents +a bushel on his wheat in its transit to the lake, and yield a +handsome profit to the stockholders of the railroad. That was the +great benefit anticipated. No one then thought of the movement by +railroad, over vast distances, of grain, stock, and merchandise, +but regarded the innovation as a substitute for the old wagon trains +to the lake. + +The construction of this railroad was considered at that time a +great undertaking. It was accomplished mainly by the leading +business men of Mansfield, but the road turned out to be a very +bad investment, bankrupting some and crippling others. I was +employed by the company to collect the stock and to secure by +condemnation the right-of-way from Plymouth to Mansfield. Much of +the right-of-way was freely granted without cost by the owners of +the land. As the chief benefit was to inure to the farmers, it +was thought to be very mean and stingy for one of them to demand +money for the right-of-way through his farm. I went over the road +from Mansfield to Plymouth with a company of five appraisers, all +farmers, who carefully examined the line of the railroad, and much +to my mortification, assessed in the aggregate for twenty miles of +railway track, damages to the amount of $2,000. I honestly thought +this an exorbitant award, but the same distance could not be +traversed now at a cost for right-of-way of ten times that sum. + +The present admirable roads in Ohio have been built mainly by the +proceeds of bonds based upon a right-of-way. + +In the meantime other railroads of much greater importance were +being built, and the direction of the roads, instead of being north +and south was from east to west, to reach a business rapidly +developing west of Ohio of far greater importance than the local +traffic of that state. + +Among the most valuable of these railroads was the Pittsburg, Ft. +Wayne & Chicago, now a part of the system of the Pennsylvania +Railroad Company, by which it is leased. This road was built in +sections by three different corporations, subsequently combined by +authority of the legislatures of Pennsylvania, Ohio, Indiana, and +Illinois. The first section was the Pittsburg & Ohio railroad from +Pittsburg to Crestline, twelve miles west of Mansfield. + +There is perhaps no more remarkable material development in the +history of mankind than that of railroads in the United States +since 1845. The number of miles of such roads is now 171,804.72, +the actual cost of which with equipment amounting to $9,293,052,143. +The value of these railroads and their dependent warehouses and +stations is probably greater to-day than the value of the entire +property of the United States in 1840. + +Contemporaneous with railroads came the telegraph, the cable, and +the telephone. The first telegraph wire was strung between Baltimore +and Washington in 1844. The first telegraph line through the State +of Ohio was from Cleveland via Mansfield to Columbus and Cincinnati, +and was established in 1848. At the close of the session of the +Supreme Court at Mansfield in that year, Judge Hitchcock, who +presided, asked me the road to Mt. Gilead, in Morrow county, a +county then recently created. I pointed to the telegraph wire +stretched on poles, and told him to follow that. The old Judge, +who had been on the supreme bench for over twenty years was quite +amused at the directions given. He laughed and said he had been +mislead by guideboards all his life, and now he was glad to be +guided by a wire. + +The development and changes, soon after my admission to the bar, +turned somewhat the tide of my hopes and expectations. Our firm +soon lost the business of collecting debts for eastern merchants +by the establishment of numerous and safe banks under the state +act of 1846. Several of the old banks, especially those at Wooster, +Norwalk, and Massillon had utterly failed, and, I believe, paid no +part of their outstanding notes. The new banks, founded upon a +better system, one of which was at Mansfield, rapidly absorbed the +collections of eastern merchants from the part of Ohio in which we +lived. This loss was, however, more than made good by our employment +as attorneys for the several railroads through Richland county. +My brother gradually withdrew from his business in Mansfield, and +became the general attorney for the Pittsburg, Ft. Wayne & Chicago +Railroad. + +In the meantime I had taken a junior part in the trial of several +cases in which I was greatly favored by Mr. Stewart, the most +eminent member of his profession at Mansfield. He gave me several +opportunities for testing my qualities before a jury, so that I +gradually gained confidence in myself as a speaker. + +My Uncle Parker was then judge of the Court of Common Pleas. So +far from favoring me on account of my relation to him, he seemed +to wish to demonstrate his impartiality by overruling my pleadings +or instructing the jury against me. I am quite sure now that this +was fanciful on my part, for he was universally regarded as being +an excellent example of a just judge without favor or partiality. + +During the early period of practice at the bar I studied my cases +carefully and had fair success. I settled more cases by compromises, +however, than I tried before a jury. I got the reputation of being +successful by full preparation and a thorough knowledge of the +facts and law of the case. In addressing a jury I rarely attempted +flights of oratory, and when I did attempt them I failed. I soon +learned that it was better to gain the confidence of a jury by +plain talk than by rhetoric. Subsequently in public life I preserved +a like course, and once, though I was advised by Governor Chase to +add a peroration to my argument, I did not follow his advice. +While I defended many persons for alleged crimes I never but once +prosecuted a criminal. My old friend, Mr. Kirkwood, was the +prosecuting attorney of the county, and I renewed with him my "moot +court" experience in frequent contests between real parties. + +During this period I became a member of the order of Odd Fellows +in Mansfield. I took an active interest in the order, and was at +one time Noble Grand of the lodge. I have continued every since +to pay my dues, but have not been able to attend the meetings +regularly for some years. I have always thought, without any +reference to its supposed secrecy, that it is an association of +great value, especially in bringing young men under good social +influences with men of respectable character and standing. + +Among the political incidents of this period I recall the excitement +that grew out of the Mexican War. The general feeling among all +classes, and the universal feeling among the Whigs was, that the +Mexican War was purposely and unjustly entered upon to extend the +institution of slavery. There is, now, no doubt that such was the +object of the war. After the battles at Palo Alto and Resaca de +la Palma a call was made upon the people of Ohio for two regiments +of volunteers. These were raised without much difficulty, one +being placed under the command of Col. Thomas L. Hamer, the other +under my old commander, Col. Samuel R. Curtis. I was somewhat +tempted to enter the service, though I did not believe in the +justice of the war. My old friend, Gen. McLaughlin, raised a +company in Mansfield, and my comrade on the Muskingum Improvement, +James M. Love, raised one in Coschocton, and Col. Curtis was to +command the regiment. My brother, William Tecumseh, then captain +in the regular army, was eager to go into the war. He had been +stationed at Pittsburg, on recruiting service, but during the +excitement visited us at Mansfield, and chafed over the delay of +orders to join the troops, then under General Taylor. No doubt +his impatience led him to be assigned to the expedition around Cape +Horn to occupy California, this, greatly to his regret, keeping +him out of the war with Mexico. + +Whatever may have been the merits of this war in the beginning, +its fruits were undoubtedly of immense value to this country. +Without this war California might, like other provinces of Mexico, +have remained undeveloped. In the possession of the United States +its gold and silver have been discovered and mined, and, together +with all the vast interior country west of the Mississippi, it has +been developed with a rapidity unexampled in history. + +In the winter of 1846-7, I for the first time visited the cities +of Washington, New York and Boston. I rode in a stage coach from +Mansfield to the national road south of Newark, and thence over +that road by stages to Cumberland, the railroads not having yet +crossed the mountains. From Cumberland I rode in cars to Baltimore, +occupying nearly a day. From Baltimore I proceeded to Washington. + +On my arrival I went to the National Hotel, then the most popular +hotel in Washington, where many Senators and Members lodged. I +found there, also, a number of charming young ladies whose company +was much more agreeable to me than that of the most distinguished +statesmen. We had hops, balls and receptions, but I recall very +few public men I met at that time. Mr. Vinton, then the veteran +Member from Ohio, invited me to join for a few days his mess; he +was then boarding in a house nearly opposite the hotel, kept by an +Italian whose name I cannot recall. He was a famous cook. The +mess was composed entirely of Senators and Members, one of the +former being Mr. Crittenden, of Kentucky. I was delighted and +instructed by the free and easy talk that prevailed, a mixture of +funny jokes, well-told stories and gay and grave discussions of +politics and law. + +My stay at the capital was brief as I wished to go to New York and +Boston. In New York I received from a relative a letter of +introduction to Benj. R. Curtis, then an eminent lawyer, and latterly +a more eminent justice of the Supreme Court. When I presented my +letter I was received very kindly and after a brief conversation +he said he was able to do me a favor, that he had a ticket to a +grand banquet to be attended by the leading men of Boston at Plymouth +Rock, on the anniversary of the landing of the Pilgrim Fathers, +and that Daniel Webster would preside. I heartily thanked him, +and on the next day, prompt on time, I entered the train at Boston +for Plymouth. When I arrived at the hotel, which is also a station- +house of the railway, I did not know a single person in the great +assemblage. In due time we were ushered into the dining hall where +the banquet was spread. There was no mistaking Webster. He sat +at the center of a cross table with the British minister on his +right and Jeremiah Mason on his left. At the other end of the room +sat Abbott Lawrence and other distinguished men. The residue of +the guests, merchants, poets, and orators of Massachusetts, filled +every seat at the tables. I sat some way down on the side and +introduced myself to my neighbors on the right and left, but my +eye was on Webster, from whom I expected such lofty eloquence as +he alone could utter. + +Much to my surprise, when the time came for the oratory to commence, +Mr. Lawrence acted as toast master. We had stories, songs, poetry +and oratory, generally good and appropriate, but not from Webster. +And so the evening waned. Webster had been talking freely with +those about him. He displayed none of the loftiness associated +with his name. He drank freely. That was manifest to everyone. +His favorite bottle was one labeled "Brandy." We heard of it as +being "more than a hundred years old." It did not travel down to +us. Webster was plainly hilarious. At this time the conductor +appeared at a side door and announced that in fifteen minutes the +cars would start for Boston. Then Webster arose--with difficulty +--he rested his hands firmly on the table and with an effort assumed +an erect position. Every voice was hushed. He said that in fifteen +minutes we would separate, nevermore to meet again, and then, with +glowing force and eloquence, he contrasted the brevity and vanity +of human life with the immortality of the events they were celebrating, +which century after century would be celebrated by your children +and your children's children to the latest generation. + +I cannot recall the words of his short but eloquent speech, but it +made an impress on my mind. If his body was affected by the liquor, +his head was clear and his utterance perfect. I met Mr. Webster +afterwards on the cars and in Washington. I admired him for his +great intellectual qualities, but I do not wonder that the people +of the United States did not choose him for President. + +Soon after the national Whig convention of 1852, of which I was a +member, I heard this story told by his secretary. In the evening, +when Mr. Webster was at his well-known residence on Louisiana +Avenue, near Sixth street, he was awaiting the ballots in the +convention. When it came by the telegraph, "Scott 159, Fillmore +112, Webster 21," he repeated it in his deep tones and said: "How +will this read in history?" He did not like either Scott or +Fillmore, and was disappointed in the votes of southern members. +To be third in such a contest wounded his pride. He died before +the year closed. He was, perhaps, the greatest man of intellectual +force of his time, but he had faults which the people could not +overlook. Another incident about Mr. Webster, and the house in +which he lived, may not be without interest. On New Year's day of +1860, Mr. Corwin, Mr. Colfax and myself made the usual calls +together. Among the many visits we made, was one on a gentleman +then living in that house. As we entered, Mr. Corwin met an old +well-trained negro servant who had been a servant of Mr. Webster +in this house. I noticed that Mr. Corwin lost his usual gayety, +and as we left the house he turned to us, and, with deep emotion, +asked that we leave him at his lodgings, that his long associations +with Mr. Webster, especially his meetings with him in that house +during their association as members of the cabinet of Fillmore, +unfitted him to enjoy the usual greetings of the day. I felt that +the emotion of such a man as Corwin was the highest possible +compliment to the memory of Daniel Webster. + +From Boston I returned to New York. There, in the families of two +brothers of my mother, both then living, I had a glimpse of New +York society. With Mr. Scott, the son-in-law of my uncle, James +Hoyt, I made nearly one hundred of the usual New Years' visits, then +customary in New York. This custom I am told has been abandoned, +but the New York of to-day is quite different from the New York of +1847. It still retained some of the knickerbocker customs of the +olden time. The site of the Fifth Avenue Hotel was then a stone- +yard where grave stones were cut. All north of Twenty-third street, +now the seat of plutocracy, was then sparsely occupied by poor +houses and miserable shanties, and the site of Central Park was a +rough, but picturesque body of woodland, glens and rocky hills, +with a few clearings partly cultivated. Even then the population +of New York was about 400,000, or more than three-fold that of any +city in the United States, and twenty-fold that of Chicago. Now +New York contains 2,000,000 inhabitants, and Chicago, according to +recent reports, about 1,700,000. Many cities now exist containing +over 100,000 inhabitants, the sites of which, in that year, were +within the limits of Indian reservations. + +From New York I returned to Washington. Many incidents recur to +me but they were of persons now dead and gone, the memory of whom +will not be recalled by the present generation. Mr. Polk was then +President. He was a plain man, of ordinary ability and more +distinguished for the great events that happened during his presidency +than for anything he did himself. I attended one of his receptions. +His wife appeared to better advantage than he. I then saw Mr. +Douglas for the first time. I think he was still a Member of the +House of Representatives, but had attained a prominent position +and was regarded as a rising man. I wished very much to see Henry +Clay, the great favorite of the Whigs of that day, but he was not +then in public life. + +There was nothing in Washington at that time to excite interest, +except the men and women in public or social life. The city itself +had no attractions except the broad Potomac River and the rim of +hills that surrounded the city. It then contained about 30,000 +inhabitants. Pennsylvania avenue was a broad, badly paved, +unattractive street, while all the other streets were unpaved and +unimproved. All that part of the city lying north of K street and +west of Fourteenth street, now the most fashionable part of the +city, was then a dreary waste open, like all the rest of the city, +as free pasturage for cows, pigs, and goats. It was a city in +name, but a village in fact. The contrast between Washington then +and now may be referred to hereafter. + +Upon my return from the east in February, 1847, I actively resumed +the practice of the law. I was engaged in several important trials, +but notably one at Mount Vernon, Ohio, where the contesting parties +were brothers, the matter in dispute a valuable farm, and the chief +witness in the case the mother of both the plaintiff and defendant. +It was, as such trials are apt to be, vigorously contested with +great bitterness between the parties. Columbus Delano was the +chief counsel for the plaintiff, and I was his assistant. I remember +the case more especially because during its progress I was attacked +by typhoid fever. I returned home after the trial, completely +exhausted, and on the Fourth of July, 1847, found myself in a raging +fever, which continued more than two months before I was able to +rise from the bed, and then I was as helpless as a child. I was +unable to walk, and was lifted from the house into the carriage to +get the fresh air, and continued under disability until October, +when I was again able to renew my business. + +During my practice thus far, I had been able to accumulate in +property and money more than ten thousand dollars. I had, in +addition to my practice, engaged in a profitable business with +Jacob Emminger, a practical mechanic, in the manufacture of doors, +blinds and other building materials. We acquired valuable pine- +lands in Michigan and transported the lumber to our works at +Mansfield. We continued this business until I was appointed +Secretary of the Treasury, in March, 1877, when I sold out my +interest and also abandoned the practice of the law. + +I spent the winter of 1847-8 at Columbus, where I made many +acquaintances who were of great service to me in after life, and +had a happy time also with the young ladies I met there. Columbus +was then the headquarters of social life for Ohio. It had a +population of about fifteen thousand, with few or no manufactures. +It has now a population of more than one hundred thousand, the +increase being largely caused by the great development of the +numerous railroads centering there, and of the coal and iron mines +of the Hocking Valley. It was also the natural headquarters of +the legal profession, the Supreme Court of Ohio, then under the +old constitution, and the District Court of the United States +holding their sessions there. + +On the first day of August, 1848, my grandmother, Elizabeth Stoddard +Sherman, died at Mansfield at the residence of her daughter, Mrs. +Parker. Her history and characteristics have already been referred +to. She was to our family the connecting link between the +Revolutionary period and our times. She had a vivid recollection +of the burning of the principal towns of Connecticut by the British +and Tories, of the trials and poverty that followed the War of the +Revolution, of the early political contests between the Federalists +and Republicans, of the events of the War of 1812, and of her +journey to Ohio in 1816. She maintained a masterly care of her +children and grandchildren. She was the best type I have known of +the strong-willed, religious Puritan of the Connecticut school, +and was respected, not only by her numerous grandchildren, but by +all who knew her. + +My brother-in-law, Thomas W. Bartley, was District Attorney of the +United States during the administration of Mr. Polk, and, as he +expected a change would be made by the incoming administration of +Taylor, he advised me to become a candidate for his place, as that +was in the line of my profession. I told him I doubted if my +experience of the bar would justify me in making such an application, +but he thought differently. I wrote to Mr. Ewing upon the subject +and he answered as follows: + + "Washington, D. C., Dec. 31, 1848. +"John Sherman, Esq., Mansfield, Ohio. + +"My Dear Sir:--I believe you would be able to perform the duties +of District Attorney, but your youth would be an objection to your +appointment, and in competition with one so long known, and so +highly esteemed, as Mr. Goddard is both professionally and politically, +would probably make your prospects but little encouraging. If you +conclude to withdraw your name, signify the fact and the reason by +letter to Mr. Goddard and it may be of use to you hereafter. I +am, with great regard, + + "Yours, T. Ewing." + +I complied with his advice, though Mr. Goddard, I think, declined +and Mr. Mason was accepted. + +On the thirty-first of the same month I was married to Margaret +Ceclia Stewart, the only child of Judge Stewart, whom I had known +since my removal to Mansfield. She had been carefully educated at +the Female College at Granville, Ohio, and at the Patapsco Institute, +near Baltimore, Maryland. After the usual wedding tour to Niagara +Falls, Montreal and Saratoga, we settled in Mansfield, and I returned +to my profession, actively pursuing it until elected a member of +Congress. + +It is not worth while to follow my professional life into further +detail. I shall not have occasion to mention that subject again. +Sufficient to say that I was reasonably successful therein. During +this period Henry C. Hedges studied law with my brother and myself, +and when admitted to the bar became my partner. Mr. Stewart was +elected by the legislature a judge of the Court of Common Pleas, +and after the adoption of the new constitution of 1851, he was +elected by the people to the same office. + +I had determined in the fall of 1853 to abandon Mansfield and settle +in Cleveland, then rapidly growing in importance as the leading +city in the northern part of the state. I went so far as to +establish an office there and place in it two young lawyers, +nominally my partners, but the great political currents of that +time soon diverted me from the practice of the law into the political +contests that grew out of the repeal of the Missouri Compromise. + + "The direful spring of woes unnumbered." + +Before entering upon an account of my political life it seems +appropriate for me to state my political bias and position. I was +by inheritance and association a Whig boy, without much care for +or knowledge of parties or political principles. No doubt my +discharge from the engineer corps by a Democratic Board of Public +Works strengthened this bias. I shouted for Harrison in the campaign +of 1840. In 1842 I was enthusiastic for "Tom Corwin, the wagon- +boy," the Whig candidate for Governor of Ohio. In that canvass +Governor Corwin addressed a great meeting at Mansfield. I heard +his speech, and was full of enthusiasm. Mr. Corwin was certainly +the greatest popular orator of his time. His face was eloquent, +changeable at his will. With a look he could cause a laugh or a +tear. He would move his audience at his pleasure. I vividly +remember the impression he made upon me, though I cannot recall +anything he said. At the close of the meeting I was requested by +the committee in charge to take Mr. Corwin in a buggy to Bucyrus. +This I cheerfully did. I noticed that Mr. Corwin was very glum +and silent, and to cheer him up I spoke of his speech and of the +meeting. He turned upon me, and with some show of feeling, said +that all the people who heard him would remember only his jokes, +and warned me to keep out of politics and attend to my law. He +told me that he knew my father, and was present at his death at +Lebanon, where he, Mr. Corwin, lived. And then, brightening up, +he gave me an interesting account of the early settlement of Ohio, +and of the bar and bench, and of his early life as a wagon boy in +Harrison's army. His sudden fit of gloom had passed away. I do +not recall any circumstance that created a deeper impression on my +mind than this interview with Mr. Corwin. His advice to keep out +of politics was easy to follow, as no one could then dream of the +possibility of a Whig being elected to office in Richland county, +then called "the Berks of Ohio." Mr. Corwin was defeated at that +election. + +I took but little part in the campaign of 1844, when Mr. Clay was +a candidate for President, but I then made my first political speech +to a popular audience and cast my first vote. The meeting was held +at Plymouth, and Honorable Joseph M. Root, the Whig candidate for +Congress, was to be the orator. For some reason Mr. Root was +delayed, and I was pressed into service. Of what I said I have +not the remotest recollection, but my audience was satisfied, and +I was doubly so, especially when Mr. Root came in sight. After +that I made a few neighborhood speeches in support of the Whig +candidate for governor, Mr. Mordecai Partley, a gentleman who for +several years had lived in Mansfield, but had long since retired +from public office after eight years' service in the United States +House of Representatives. Mr. Bartley received 147,378 votes, Mr. +Tod, Democrat, 146,461 votes and Mr. King, Third Party, 8,411 votes; +so close were parties divided in Ohio in 1844. + +At this time I had but two definite ideas in respect to the public +policy of the United States. One was a hearty belief in the doctrine +of protection to American industries, as advocated by Mr. Clay, +and, second, a strong prejudice against the Democratic party, which +was more or less committed to the annexation of Texas, and the +extension of slavery. I shared in the general regret at the defeat +of Mr. Clay and the election of Mr. Polk. I took some part in the +local canvasses in Ohio prior to 1848, but this did not in the +least commit me to active political life. I was appointed a delegate +to the national Whig convention, held in Philadelphia, in 1848, to +nominate a presidential candidate. I accepted this the more readily +as it gave me an opportunity to see my future wife at her school +at Patapsco, and to fix our engagement for marriage upon her return +home. The chief incident of the convention was the struggle between +the friends of General Scott and General Taylor. + +When the convention was being organized, Colonel Collyer, chairman +of the Ohio delegation, said there was a young gentleman in that +convention who could never hope to get an office unless that +convention gave him one, and nominated me for secretary of the +convention. Mr. Defrees said there was a delegate from Indiana in +the same condition and moved that Schuyler Colfax be made assistant +secretary. We then marched together to the platform and commenced +our political life, in which we were to be closely associated for +many years. + +The nomination of General Taylor, cordially supported by me, was +not acceptable to all the Whigs of Ohio. The hostility to slavery +had grown chiefly out of the acquisition of Texas as a slave state. +An anti-slavery party headed in Ohio by Salmon P. Chase cast 35,354 +votes for Van Buren. General Taylor was defeated in Ohio mainly +by this defection, receiving 138,360 votes. General Cass received +154,755 votes. General Cass received the vote of Ohio, but General +Taylor was elected President, having received a majority of the +electoral vote. + +General Taylor proved a very conscientious and acceptable President. +His death, on the ninth day of July, 1850, preceded the passage of +the compromise measures of Henry Clay, commonly known by his name. +They became laws with the approval of Millard Fillmore. + +It was my habit during this period to attend the annual state +conventions of the Whig party, not so much to influence nominations +as to keep up an acquaintance with the principal members of the +party. I had not the slightest desire for public office and never +became a candidate until 1854. In the state convention of 1850 I +heartily supported the nomination of General Scott for President, +at the approaching election of 1852. In this convention an effort +was made to nominate me for Attorney-General in opposition to Henry +Stanbery. I promptly declined to be a candidate, but received a +number of votes from personal friends, who, as they said, wanted +to introduce some young blood into the Whig party. + +I then began seriously to study the political topics of the day. +I was classed as a conservative Whig, and heartily supported the +compromise measures of 1850, not upon their merits, but as the best +solution of dangerous sectional divisions. Prior to this time I +do not remember to have given any study, except through the newspapers +of the day, to the great national questions that divided the +political parties. + +In the spring of 1852 I was designated by the state convention as +a delegate at large in association with Honorable Samuel F. Vinton +to the national Whig convention of that year. I was an earnest +advocate of General Scott, and rejoiced in his nomination. Here, +again, the slavery question was obtruded into national politics. +The clear and specific indorsement of the compromise measures, +though supported by a great majority, divided the Whig party and +led to the election of Franklin Pierce. In this canvass I took +for the first time an active part. I was designated as an elector +on the Scott ticket. I made speeches in several counties and +cities, but was recalled to Wooster by a telegram stating that my +mother was dangerously ill. Before I could reach home she died. +This event was wholly unexpected, as she seemed, when I left home, +to be in the best of health. She had accompanied her daughter, +Mrs. Bartley, to Cleveland to attend the state fair, and there, no +doubt, she was attacked with the disease of which she died. I took +no further part in the canvass. + +I wish here to call special attention to the attitude of the two +great parties in respect to the compromise measures. + +The Democratic national convention at Baltimore was held in the +first of June, 1852. The resolutions of that convention in reference +to slavery were as follows: + +"12. _Resolved_, That Congress has no power under the constitution +to interfere with, or control, the domestic institutions of the +several states, and that such states are the sole and proper judges +of everything appertaining to their own affairs, not prohibited by +the constitution; that all efforts of the Abolitionists or others, +made to induce Congress to interfere with questions of slavery, or +to take incipient steps in relation thereto, are calculated to lead +to the most alarming and dangerous consequences, and that all such +efforts have an inevitable tendency to diminish the happiness of +the people, and endanger the stability and permanency of the Union, +and ought not to be countenanced by any friends of our political +institutions. + +"13. _Resolved_, That the foregoing proposition covers, and is +intended to embrace, the whole subject of slavery agitation in +Congress, and, therefore, _the Democratic party of the Union, +standing on this national platform, will abide by, and adhere to, +a faithful execution of the acts known as the compromise measures +settled by the last Congress, 'the act for reclaiming fugitives +from service labor' included; which act, being designed to carry +out an express provision of the constitution, cannot, with fidelity +thereto, be repealed, nor so changed as to destroy or impair its +efficiency_. + +"14. _Resolved, That the Democratic party will resist all attempts +at renewing in Congress, or out of it, the agitation of the slavery +question, under whatever shape or color the attempt may be made_." + +The Whig convention, which met at Baltimore on the 16th of June, +1852, declared as follows:-- + +"8. _That the series of acts of the 32nd Congress, the act known +as The Fugitive Slave Law included, are received and acquiesced in +by the Whig party of the United States as a settlement in principle +and substance of the dangerous and exciting questions which they +embrace, and so far as they are concerned, we will maintain them, +and insist upon their strict enforcement_, until time and experience +shall demonstrate the necessity of further legislation to guard +against the evasion of the laws on the one hand, and the abuse of +their powers on the other--not impairing their present efficiency; +and we _deprecate all further agitation of the question thus settled +as dangerous to our peace, and will discountenance all efforts to +continue or renew such agitation whenever, wherever or however the +attempt may be made_, and we will maintain the system as essential +to the nationality of the Whig party and the integrity of the +Union." + +It will be noticed that these platforms do not essentialy differ +from each other. Both declare in favor of acquiescence in the +compromise measures of 1850. The Democratic party more emphatically +denounces any renewal in Congress, or out of it, of the agitation +of the slavery question under whatever name, shape or color, the +attempt may be made. The Whig platform, equally positive in its +acquiescence in the settlement made, known as the compromise +measures, declared its purpose to: "Maintain them, and to insist +upon their strict enforcement until time and experience shall +demonstrate the necessity of further legislation to guard against +the evasion of the laws." + +It would seem that under these platforms both parties were committed +to acquiescence in existing laws upon the subject of slavery, and +to a resistance of all measures to change or modify them. + +I took quite an active part in this canvass and wrote to Mr. Seward, +then the great leader of the Whig party, inviting him to attend a +mass meeting in Richland county, to which I received the following +reply: + + "Auburn, Sept. 20, 1852. +"John Sherman, Esq., Mansfield, Ohio. + +"Dear Sir:--I have the honor of receiving your letter urging me to +accept the invitation of the Whig central committee to address a +mass meeting in Richland county, Ohio, on the second of October. +I appreciate fully the importance of the canvass in which we are +engaged, and I have some conception of the responsibilities of the +Whigs of Ohio. I wish, therefore, that it was in my power to comply +with the wishes, expressed in several quarters, by going among them +to attempt to encourage them in their noble and patriotic efforts, +but it is impossible. Public and professional engagements have +withdrawn me from my private affairs during the past two years, +and the few weeks of interval between the last and the next session +of Congress are equally insufficient for the attention my business +requires and for the relaxation of public labors which impaired +health demands. I am, dear sir, with great respect, you friend +and humble servant, + + "William H. Seward." + +The election of 1852 resulted in the overwhelming defeat of General +Scott, and the practical annihilation of the Whig party. Franklin +Pierce received 244 electoral votes, and General Scott but 42. + +The triumphant election of Mr. Pierce, on the platform stated, +justified the expectation that during his term there would be no +opening of the slavery controversy by the Democratic party. If +that party had been content with the compromise of 1850, and had +faithfully observed the pledges in its platform, there would have +been no Civil War. Conservative Whigs, north and south, would have +united with conservative Democrats in maintaining and enforcing +existing laws. The efforts of the opponents of slavery and of +aggressive pro-slavery propagandists would have been alike ineffective. +The irrepressible conflict would have been indefinitely postponed. +Yet, as will appear hereafter, the leaders of the 33rd Congress of +both parties, and mainly on sectional lines, openly and flagrantly +violated the pledges of their party, and renewed a contest that +was only closed by the most destructive Civil War of modern times, +and by the abolition of slavery. As this legislation brought me +into public life, I wish to justify my statement by the public +records, with all charity to the authors of the measures who no +doubt did not anticipate the baleful events that would spring from +them, nor the expanded and strengthened republic which was the +final result. "Man proposes, but God disposes." + +When the 33rd Congress met, on the 6th day of December, 1853, the +tariff issue was practically in abeyance. The net ordinary receipts +of the government for the fiscal year ending June 30, 1853, were +$61,587,031.68. The net ordinary expenditures of the government +for the same year were $47,743,989.09, leaving a surplus of revenue +over expenditures of $13,843,042.59, of which, $6,833,072.65 was +applied to the payment of the public debt, leaving in the treasury, +unexpended, about $7,000,000.00. The financial and political +condition of the United States was never more prosperous than when +this Congress met. The disturbance of this condition can be +attributed only to the passage of the act to organize the territories +of Nebraska and Kansas approved by President Franklin Pierce, May +30, 1854. The 32nd section of that act contained this provision:-- + +"That the constitution and all laws of the United States which are +locally inapplicable, shall have the same force and effect within +the said Territory of Kansas as elsewhere within the United States, +except the eighth section of the act preparatory to the admission +of Missouri into the Union, approved March sixth, eighteen hundred +and twenty, which, being inconsistent with the principle of non- +intervention by Congress with slavery in the states and territories, +as recognized by the legislation of eighteen hundred and fifty, +commonly called the compromise measures, is hereby declared +inoperative and void; it being the true intent and meaning of this +act not to legislate slavery into any territory or state, nor to +exclude it therefrom, but to leave the people thereof perfectly +free to form and regulate their domestic institutions in their own +way, subject only to the constitution of the United States: +_Provided_, That nothing herein contained shall be construed to +revive or put in force any law or regulation which may have existed +prior to the act of March sixth, eighteen hundred and twenty, either +protecting, establishing, prohibiting or abolishing slavery." + +This act contained a similar clause relating to Nebraska. + +To understand the effect of this provision it is necessary to review +the status of slavery in the United States under the constitution +and existing laws. + +The articles of Confederation make no mention of slavery or slaves. +During and after the Revolution the general feeling was that slavery +would be gradually abolished by the several states. In the Ordinance +of 1787 for the government of the territories of the United States, +northwest of the Ohio River, it was expressly provided that: + +"There shall be no slavery nor involuntary servitude in the said +territory, otherwise than in the punishment of crimes, whereof the +parties shall have been duly convicted; provided, always, that any +person escaping into the same, from whom labor or service is lawfully +claimed in any of the original states, such fugitive may be lawfully +reclaimed, and conveyed to the person claiming his or her labor or +service as aforesaid." + +This provision applied to all the territory of the United States +that was subject to the jurisdiction of the Continental Congress. + +The constitution of the United States did not mention either slaves +or slavery. Its two provisions relating to the subject were the +following: + +"The migration or importation of such persons as any of the states +now existing shall think proper to admit, shall not be prohibited +by the Congress prior to the year one thousand, eight hundred and +eight, but a tax or duty may be imposed on such importation, not +exceeding ten dollars for each person. . . . + +"No person held to service or labor in one state, under the laws +thereof, escaping into another shall, in consequence of any law or +regulation therein, be discharged from such service or labor, but +shall be delivered up on claim of the party to whom such service +or labor may be due." + +The first clause quoted was intended to enable Congress to prohibit +the introduction of slaves after the year 1808, and this was promptly +done. The second provision was intended to authorize the recapture +of slaves escaping from their owners to another state. It was the +general expectation of the framers of the constitution that under +its provisions slavery would be gradually abolished by the acts of +the several states where it was recognized. + +The first great controversy that grew out of slavery was whether +Missouri should be admitted into the Union as a slave state, and +whether slavery should exist in the western territories. + +The following provision became part of the law of March 6, 1820, +approved by President James Monroe, and known as the compromise +measure of that year: + +"That, in all that territory ceded by France to the United States +under the name of 'Louisiana,' which lies north of 36 deg. 30 min. +north latitude, not included within the limits of the state +contemplated by this act, slavery and involuntary servitude, +otherwise than in the punishment of crimes whereof the party shall +have been duly conviced, shall be and is hereby, forever prohibited: +_Provided, always_, That any person escaping into the same, from +whom labor or service is lawfully claimed in any other state of +territory of the United States, such fugitive may be lawfully +reclaimed, and conveyed to the person claiming his or her labor or +service, as aforesaid." + +This compromise measure fixed the boundary line between free and +slave states in all the territories then belonging to the United +States. Slavery was thus forever prohibited within the Territories +of Kansas and Nebraska. This happy solution was regarded as +something more than a mere enactment of Congress. It was a +territorial division between the two great sections of our country, +acquiesced in by both without question or disturbance for thirty- +four years. The memorable controversy that arose in the 31st +Congress in 1850 in respect to the territory acquired from Mexico +did not in the least affect or relate to the Territories of Nebraska +and Kansas. The subject-matter of the several bills originally +embraced in Mr. Clay's report of the committee of thirteen, defined +the northern boundary of the State of Texas on the line of 36 deg. +30 min. north latitude, provided for the addition of the State of +California, for territorial governments for New Mexico and Utah, +and for the surrender of fugitive slaves. + +In the resolution annexing Texas to the United States there is this +express recognition of the Missouri Compromise line: + +"New states of convenient size, not exceeding four in number, in +addition to said State of Texas, and having sufficient population, +may hereafter, by the consent of the said state, be formed out of +the territory thereof, which shall be _entitled to admission_ under +the provisions of the Federal constitution; and such states as may +be formed out of that portion of said territory lying _south_ of +36 deg. 30 min. north latitude, commonly known as the Missouri +Compromise line, _shall be_ admitted into the Union with or without +slavery, as the people of each state asking admission may desire." + +The convention providing for the admission of California expressly +stipulated by a unanimous vote that slavery should be forever +prohibited in that state. The bill providing for a territorial +government for New Mexico, the great body of the territory which +lay south of the parallel of latitude 36 deg. 30 min., provided, +"That, when admitted as a state, the said territory, or any portion +of the same, shall be received into the Union, with or without +slavery, as their constitution may prescribe at the time of their +admission." + +The act organizing the Territory of Utah, lying entirely north of +the 37th degree of latitude, contains no provision recognizing the +right of the people of that territory to permit slavery within its +borders. The situation of the state and its population precluded +the possibility of establishing slavery within its borders. + +It will be perceived by the compromise measures of 1820 and 1850, +the existence or prohibition of slavery was fixed by express laws, +or by conditions which it was fondly believed defined the limits +of slavery, and thus set at rest the only question that threatened +the union of the states. This settlement was indorsed and ratified +by the two great parties in their national platforms of 1852, with +the solemn pledge of both parties that they would resist the re- +opening of these questions. + +The Senate of the 33rd Congress was composed of 36 Democrats, 20 +Whigs and 2 Free Soilers. The House was composed of 159 Democrats, +71 Whigs, and 4 Free Soilers, with Franklin Pierce as President of +the United States. + +I need not narrate the long struggle in both Houses over the bill +to organize the Territories of Nebraska and Kansas. It was a direct +invitation for a physical struggle between the north and south for +the control of these territories, but it finally passed on the 30th +of May, 1854. + +This act repealed in express terms the Missouri Compromise of 1820, +and falsely stated the terms of the compromise of 1850, which, as +I have shown, had no reference whatever to the Territories of +Nebraska and Kansas. It re-opened, in the most dangerous form, +the struggle between freedom and slavery in the western territories, +and was the congressional beginning of the contest which culminated +in the War of the Rebellion. + +It is difficult, at this distance of time, to describe the effect +of the act of 1854 upon popular opinion in the northern states. +The repeal was met in Ohio by an overwhelming sentiment of opposition. +All who voted for the bill were either refused a nomination or were +defeated by the people at the polls. Party lines were obliterated. +In every congressional district a fusion was formed of Democrats, +Whigs and Free Soilers, and candidates for Congress were nominated +solely upon the issues made by the Kansas and Nebraska bill. + +I had carefully observed the progress of the bill, had read the +arguments for and against it, and was strongly convinced that it +was the duty of every patriotic citizen to oppose its provisions. +The firm resolve was declared by the state convention of Ohio, +composed of men of all parties, that the institution of slavery +should gain no advantage by this act of perfidy. It was denounced +as a violation of a plain specific pledge of the public faith made +by acts of Congress in 1820 and in 1850. With this feeling there +ran current a conviction that the measure adopted was forced by +southern domination, and yielded to by ambitious northern dough- +faces anxious to obtain southern support. + +Unfortunately the drift of parties was on sectional lines. The +whole south had become Democratic, so that a united south, acting +in concert with a few members from the north, could control the +action of Congress. I believe that a feeling did then prevail with +many in the south, that they were superior to men of the north, +that one southern man could whip four Yankees, that their institution +of slavery naturally produced among the masters, men of superior +courage, gentlemen who could command and make others obey. Whether +such a feeling did exist or not, it was apparent that the political +leaders in the south were, as a rule, men of greater experience, +were longer retained in the service of their constituents, and held +higher public positions than their associates from the north. +Besides, they had in slavery a bond of union that did not tolerate +any difference of opinion when its interests were involved. This +compact power needed the assistance only of a few scattered members +from the north to give it absolute control. But now the south was +to meet a different class of opponents. There had been growing +all over the north, especially in the minds of religious people, +a conviction that slavery was wrong. The literature of the day +promoted this tendency. The repeal of the Missouri Compromise +aroused the combative feeling of the north until it became general +among all parties and sects. Still, the north recognized the legal +existence of slavery in the south, and did not propose to interfere +with it, and was entirely content to faithfully observe the +obligations of the constitution and the laws, including those for +the return of fugitive slaves. A smaller, but very noisy body of +men and women denounced the constitution as "a covenant with hell +and a contract with the devil." A much large number of conservative +voters formed themselves into a party called the Free Soil party, +who, professing to be restrained within constitutional limits, yet +favored the abolition of slavery in the District of Columbia. They +invoked the moral influence and aid of the government for the +gradual prohibition of slavery in the states. "Liberty is National, +Slavery is Sectional," was their motto. + +The strong controlling feeling of the great body of the Whigs and +of the Democrats of the north, who opposed the Nebraska and Kansas +law was that the law was a violation of existing compromises, +designed to extend slavery over free territory, that it ought to +be repealed, but, if repeal was impracticable, organized effort +should be made to make both territories free states. "Slavery +shall gain no advantage over freedom by violating compromises," +was the cry of a new party, as yet without a name. + +It was on this basis in the summer of 1854, I became a candidate +for Congress. Jacob Brinkerhoff and Thomas H. Ford, both residents +of Richland county, Ohio, and gentlemen of experience and ability, +were also candidates, but we agreed to submit our pretensions to +a convention in that county, and I was selected by a very large +majority. A district convention was held at Shelby, in July. Mr. +James M. Root, for several terms a Member of Congress, was my chief +competitor, but I was nominated, chiefly because I had been less +connected with old parties and would encounter less prejudice with +the discordant element of a new party. + +I made a thorough canvass through the district, composed of the +counties of Huron, Erie, Richland and Morrow. I visited and spoke +in every town and township in the district. William D. Linsley, +a Member of the 33rd Congress, was my competitor. He was a farmer, +of popular manners, but defective education. When first a candidate +a letter of his was published in which he spelled the word "corn" +"korne." The Whig newspapers ridiculed him for his faulty spelling, +but Democrats, who were offended at this criticism, said they would +show the Whigs how to plant corn, and the incident proved a benefit +rather than an injury to Lindsley. He had been elected to Congress +in 1852 against a popular Whig by a majority of 754. He had voted +against the Nebraska bill, but had cast one vote that opened the +way to the consideration of that bill, which action was made the +subject of criticism. This did not enter as a national element in +the canvass. The real issue was whether the Democrats and Free +Soilers would vote for a Whig. Among the Free Soilers I was regarded +as too conservative on the slavery question. They were not content +with the repeal of the offensive provisions of the Nebraska act, +but demanded the prohibition of slavery in all the territories and +in the District of Columbia. This feeling was very strong in the +important county of Huron. + +When I spoke in North Fairfield I was interrupted by the distinct +question put to me by the pastor of the church in which I spoke, +and whose name I do not recall, whether I would vote for the +abolition of slavery in the District of Columbia. I knew this was +a turning point, but made up my mind to be frank and honest, whatever +might be the result. I answered that I would not, that the great +issue was the extension of slavery over the territories. I fortified +myself by the opinions of John Q. Adams, but what I said fell like +a wet blanket on the audience. I understood that afterwards, in +a church meeting, the preacher commended my frankness and advised +his people to vote for me. + +This canvass, more than any other, assumed a religious tone, not +on sectarian, but on moral grounds. Our meetings were frequently +held in churches, and the speaker was invited to the pulpit, with +the Bible and hymn-book before him, and frequently with an audience +of men, women and children, arranged as for religious worship. + +The probable course of Democrats opposed to the Nebraska bill was +more than a matter of doubt. They were in the main content with +Mr. Lindsley and voted for him. But out of the general confusion +of parties there arose what was known as the "Know-nothing" order, +or American party, opposed to the Catholics, and to free immigration. +It was a secret organization, with signs and grips. There were +perhaps one thousand of them in my district, composed about equally +of Democrats and Whigs. They were indifferent, or neutral, on the +political issue of the day. + +The result of the election in October was against the Democratic +party in Ohio. Every Democratic candidate for Congress was defeated. +Twenty-one Members, all opposed to the repeal of the Missouri +Compromise, but differing in opinion upon other questions, were +elected to Congress. The composition of the delegation was somewhat +peculiar, as the party had no name, and no defined principles except +upon the one question of the extension of slavery. On the day of +the election everyone was in doubt. Mr. Kirkwood, who supported +Mr. Lindsley, told me it was the strangest election he had ever +seen, that everyone brought his ticket in his vest pocket, and +there was no electioneering at the polls. He expressed his opinion, +but not with much confidence, that Mr. Lindsley was elected. When +the votes were counted, it was found that I had 2,823 majority, +having carried every county in the district. Richland county, in +which I lived, for the first time cast a majority adverse to the +Democratic party, I receiving a majority of over 300 votes. + +During the summer of 1855, the elements of opposition to the +administration of President Pierce organized as the Republican +party. County conventions were generally held and largely attended. +The state convention met at Columbus on the 13th day of July, 1855. +It was composed of heterogenous elements, every shade of political +opinion being represented. Such antipodes as Giddings, Leiter, +Chase, Brinkerhoff, and Lew Campbell met in concert. The first +question that troubled the convention was the selection of a +president. It was thought impolitic to take one who had been +offensively conspicuous in one of the old parties. The result was +that I was selected, much to my surprise, and, for a time, much to +my chagrin. Mr. Allison, since a distinguished Member of the United +States Senate, was elected secretary of the convention. I had +never presided over any assembly excepting an Odd Fellows' lodge. +When I assumed the chair I no doubt soon exposed my ignorance. A +declaration of principles was formulated as follows: + +"1. _Resolved_, That the people who constitute the supreme power +in the United States, should guard with jealous care the rights of +the several states, as independent governments. No encroachment +upon their legislative or judicial prerogatives should be permitted +from any quarter. + +"2. _Resolved_, That the people of the State of Ohio, mindful of +the blessings conferred upon them by the 'Ordinance of Freedom,' +whose anniversary our convention this day commemorates, should +establish for their political guidance the following cardinal rules: + +"(1). We will resent the spread of slavery under whatever shape +or color it may be attempted. + +"(2). To this end we will labor incessantly to render inoperative +and void that portion of the Kansas and Nebraska bill which abolishes +freedom in the territory withdrawn from the influence of slavery +by the Missouri Compromise of 1820; and we will oppose by every +lawful and constitutional means, the extension of slavery in any +national territory, and the further increase of slavery territory +or slave states in this republican confederacy. + +"3. _Resolved_, That the recent acts of violence and Civil War in +Kansas, incited by the late Vice President of the United States, +and tacitly encouraged by the Executive, command the emphatic +condemnation of every citizen. + +"4. _Resolved_, That a proper retrenchment in all public expenditures, +a thoroughly economical administration of our state government, a +just and equal basis of taxation, and single districts for the +election of members of the legislature, are reforms called for by +a wise state policy and justly demanded by the people. + +"5. _Resolved_, That a state central committee, consisting of +five, be appointed by this convention, and the said committee, in +addition to its usual duties, be authorized to correspond with +committees of other states for the purpose of agreeing upon a time +and place for holding a national convention of the Republican party +for the nomination of President and Vice President." + +Joshua R. Giddings was the solitary member of the committee opposed +to the resolutions, not, he said, because he objected to the +resolutions themselves, but he thought they were a little too +tender. They were not strong enough for the old guard and still +they were better than none. If it offended his brother to eat meat +he would eat no more while time lasted. He was opposed to this +milk for babes. He disagreed with his colleagues, but had had the +misfortune to disagree with people before. He was used to disagreement +and hoped everybody would vote for the platform. + +Lewis D. Campbell said his friend from Ashtabula wanted to make an +issue with Frank Pierce. He did not wish to raise an issue with +the dead. He hoped everybody would vote for the platform. He did +not consider the resolutions milk for babes, but strong meat. + +The platform was adopted by a unanimous vote. + +The real contention was upon the nomination of governor. Salmon +P. Chase was nominated, but there was difference of opinion concerning +his somewhat varied political associations and some criticism of +them. In 1845 he had projected what was called a liberty convention. +In 1848 he had been a member of the Free Soil convention held at +Buffalo and since 1849 had been a Senator of the United States. +Thomas H. Ford, my townsman, was nominated as lieutenant governor, +as the representative of the Whig party. Jacob Brinkerhoff, also +of Mansfield, was nominated as judge of the Supreme Court. He had +been a Member of Congress from 1843 to 1847 as a Democrat, but +early took decided ground against the extension of slavery. He +was the reputed author of what is known as the "Wilmot Proviso." + +On the 8th day of August this famous proviso was offered as an +amendment to a bill authorizing the President of the United States +to employ $3,000,000 in negotiations for a peace with Mexico, by +purchase of territory, by David Wilmot, of Pennsylvania, a Member +of the House. "That, as an express fundamental condition to the +acquisition of any territory from the Republic of Mexico by the +United States, neither slavery nor involuntary servitude should +ever exist in any part of said territory." This proviso was adopted +by the House, but was rejected by the Senate. It was the basis of +the organization known as the Free Soil party of 1848, and of the +Republican party in 1856. + +The other candidates on the ticket were fairly distributed. + +The canvass of 1855 was conducted mainly by Senator Chase and +Colonel Ford. I participated in it to some extent, but was chiefly +engaged in closing my business in preparation for the approaching +session of Congress. The result of the election was as follows: +Chase, 146,770 votes; Medill, 131,019; Allen Trimble, 24,276. + +The election of Senator Chase, upon a distinctly Republican platform, +established the fact that the majority of the voters of Ohio were +Republicans as defined by the creed of that party. + +In the summer of 1855 I made my first trip to Iowa, accompanied by +Amos Townsend and James Cobean. At that time Iowa was a far-off +state, thinly populated, but being rapidly settled. We passed +through Chicago, which at that time contained a population of about +50,000. The line of railroad extended to the Mississippi River. +From thence we traveled in a stage to Des Moines, now the capital +of Iowa, but then a small village with about 1,000 inhabitants. +The northern and western parts of the state were mostly unsold +public lands, open to entry. My three brothers, James, Lampson, +and Hoyt, were living in Des Moines. James was a merchant in +business. Lampson was the editor and proprietor of a newspaper, +and Hoyt was actively engaged in the purchase and sale of land. +With Hoyt for a guide we drove in a carriage as far north as Fort +Dodge, where a new land office had been recently established. The +whole country was an open plain with here and there a cabin, with +no fences and but little timber. We arrived at Fort Dodge on +Saturday evening, intending to spend some time there in locating +land. The tavern at which we stopped was an unfinished frame +building with no plastering, and sash without glass in the windows. +On the next day, Sunday, Cobean invited us to join him in drinking +some choice whisky he had brought with him. We did so in the dining +room. While thus engaged the landlady came to us and told Cobean +that she was not very well, and would be glad if he would give her +some whisky. He handed her the bottle, and she went to the other +end of the room and there poured out nearly a glass full and drank +it. Cobean was so much alarmed lest the woman should become drunk +that he insisted upon leaving the town immediately, and we acquiesced +and left. Afterwards we learned that she became very drunk, and +the landlord was very violent in denouncing us for giving her +whisky, but we got outside the county before the sun went down. +I had frequent occasion to be in Fort Dodge afterwards, but heard +nothing more of the landlord or his wife. + +The road to Council Bluffs from Des Moines was over a high rolling +prairie with scarcely any inhabitants. The village of Omaha, +opposite Council Bluffs, contained but a few frame houses of little +value. The settlement of Iowa and Nebraska after this period is +almost marvelous. Iowa now (1895), contains over 2,000,000 and +Nebraska over 1,200,000 people. The twelve states composing the +north central division of the United States contained 5,403,595 +inhabitants in 1850, and now number over 24,000,000, or more than +quadruple the number in 1850, and more than the entire population +of the United States in that year. I have frequently visited these +states since, and am not surprised at their wonderful growth. I +believe there is no portion of the earth's surface of equal area +which is susceptible of a larger population than that portion of +the United States lying north of the Ohio River, and between the +Alleghany Mountains and the Missouri River. + + +CHAPTER V. +EARLY DAYS IN CONGRESS. +My First Speech in the House--Struggle for the Possession of Kansas +--Appointed as a Member of the Kansas Investigating Committee--The +Invasion of March 30, 1855--Exciting Scenes in the Second District +of Kansas--Similar Violence in Other Territorial Districts--Return +and Report of the Committee--No Relief Afforded the People of Kansas +--Men of Distinction in the 34th Congress--Long Intimacy with +Schuyler Colfax. + +In 1854 the Whig party had disappeared from the roll of parties in +the United States. It was a bad name for a good party. English +in its origin, it had no significance in American politics. The +word "Democratic," as applied to the opposing party, was equally +a misnomer. The word "Democracy," from which it is derived, means +a government of the people, but the controlling power of the +Democratic party resided in the southern states, where a large +portion of the people were slaves, and the ruling class were +slaveholders, and the name was not applicable to such a people. +The Republican party then represented the progressive tendency of +the age, the development of the country, the opposition to slavery +and the preservation of the Union. It was about to engage in a +political contest for the administration of the government. It +was in the minority in the Senate, and had but a bare plurality in +the House. It had to contest with an adverse Executive and Supreme +Court, with a well-organized party in possession of all the patronage +of the government, in absolute control of the slaveholding states, +and supported by strong minorities in each of the free states. + +This was the condition of parties when the 34th Congress met in +the old halls of the Senate and House of Representatives on the +3rd of December, 1855. The Senate was composed of 43 Democrats +and 17 Republicans. There were four vacancies. The House was +composed of 97 Republicans, 82 Democrats, and 45 classed as Third +Party men, mostly as Americans. Eight Members were absent, and +not yet classified. An unusual proportion of the Members were new +in public life, the result of the revolution of parties caused by +the Nebraska bill. The Senate was already organized with Mr. +Bright, of Indiana, as president _pro tempore_. + +The first duty of the House was to elect a speaker, a majority of +the Members present being necessary to a choice. The balloting +for speaker continued until February 2, 1856, when Nathaniel P. +Banks was elected under the plurality rule. During these two months +the House was without a speaker, and also without rules except the +general principles of parliamentary law. The clerk of the last +House of Representatives presided. Innumerable speeches were made, +some of them very long, but many brief ones were made by the new +Members who took the occasion to air their oratory. Timothy Day, +one of my colleagues, a cynical bachelor and proprietor of the +Cincinnati "Commercial," who sat by my side, was constantly employed +in writing for his paper. When a new voice was heard he would put +his hand to his ear, listen awhile and then, turning impatiently +to his writing, would say to me: "Another dead cock in the pit." +This cynical suppression of a new Member rather alarmed me, but on +the 9th of January, as appears from the "Globe," I ventured to make +a few remarks. When I sat down I turned to Mr. Day and said: +"Another dead cock in the pit." He relieved me by saying: "Not +quite so bad as that." The first speech I made in the House +contained my political creed at the time. I here insert a paragraph +or two: + +"I desire to say a few words; and I would preface them with the +remark, that I do not intend, while I have a seat in this House, +to occupy much of its time in speaking. But I wish to state now +why I have voted, and shall continue to vote, for Mr. Banks. I +care not whether he is a member of the American party or not. I +have been informed that he is, and I believe that he is. But I +repeat I care not to what party he belongs. I understood him to +take this position,--that the repeal of the Missouri Compromise +was an act of great dishonor, and that under no circumstances +whatever will he--if he have the power--allow the institution of +human slavery to derive any benefit from that repeal. That is my +position. I have been a Whig, but I will yield all party preferences, +and will act in concert with men of all parties and opinions who +will steadily aid in preserving our western territories for free +labor; and I say now, that I never will vote for a man for speaker +of this house, unless he convinces me, by his conduct and by his +voice, that he never will, if he has the power to prevent it, allow +the institution of slavery to derive any advantage from repealing +the compromise of 1820. + +"I believe Mr. Banks will be true to that principle, and, therefore, +I vote for him without regard to his previous political associations, +or to his adherence to the American party. I vote for him simply +because he has had the manliness to say here, that, having the +power, he will resist the encroachments of slavery, even by opposing +the admission of any slave state that may be formed out of the +territory north and west of Missouri." + +Notwithstanding the promise I made not to occupy much of the time +of the House in speaking, and the cynicism of my friend Day, I did +partake frequently in the debate on the organization of the House. +I became involved in a contest with Mr. Dunn, of Indiana, who had +steadily refused to vote for Mr. Banks for speaker, to which I +deemed proper to refer. He said he was not to be deterred from +performing his duty, as he understood it, by the criticisms of the +"neophyte" from Ohio. I replied at considerable length and with +some feeling. In my reply I repeated my position in respect to +the repeal of the Missouri Compromise, declaring: "If the repeal +was wrong all northern and southern men alike ought to help to +reinstate that restriction. Nothing less than that will satisfy +the country; and if it is not done, as it probably will not be, we +will maintain our position of resisting the admission of Kansas as +a slave state, under all possible circumstances." + +Later on in the debate I declared: + +"I am no Abolitionist in the sense in which the term is used; I +have always been a conservative Whig. I was willing to stand by +the compromises of 1820 and 1850; but, when our Whig brethren of +the south allow this administration to lead them off from their +principles, when they abandon the position which Henry Clay would +have taken, forget his name and achievements, and decline any longer +to carry his banner--they lose all their claims on me. And I say +now, that until this wrong is righted, until Kansas is admitted as +a free state, I cannot act in party association with them. Whenever +that question is settled rightly I will have no disposition to +disturb the harmony which ought to exist between the north and +south. I do not propose to continue agitation; I only appear here +to demand justice,--to demand compliance with compromises fully +agreed upon and declared by law. I ask no more, and I will submit +to no less." + +This was a narrow platform, but it was the one supported by public +opinion. I believed that a majority of the Members called Americans, +especially those from the south, were quite willing that Kansas +should be admitted as a free state, but local pride prevented such +a declaration. It is easy to perceive now that if this had been +promptly done the slavery question would have been settled for many +years. But that opportunity was permitted to pass unused. The +people, both north and south, were thoroughly aroused. No compromise +was possible. The contest could only be settled by the force of +superior numbers. That was the logic of the Nebraska bill, which +was an appeal to the people of both sections, already greatly +excited, to struggle for, and, if necessary, to fight for the +possession of a large and beautiful territory. It forced the +irrepressible conflict in the most dangerous form. + +On the one side were the border ruffians of Missouri, hereafter +described, backed by the general sentiment of the south, and actively +supported by the administration and by leading Democrats who had +held high positions in the public service. On the other side were +a large number of free state men in the western states, who looked +forward to the opening of Nebraska and Kansas as a new field of +enterprise. They were quite ready to fight for their opinions +against slavery. They were supported by a general feeling of +resentment in the north, caused by the repeal of the Missouri +Compromise. + +Long before the meeting of Congress the actual struggle for the +possession of Kansas commenced. After the passage of the Kansas +bill we had reports in the newspapers of gross frauds at pretended +elections of rival legislatures, of murder and other crimes, in +short, of actual civil war in Kansas; but the accounts were +contradictory. It was plainly the first duty of Congress to +ascertain the exact condition of affairs in that territory. This +could not be done until a speaker was elected. + +On the 24th day of January, 1856, President Pierce sent to the +House of Representatives, still unorganized, a message upon the +condition of affairs in Kansas. A question was made whether a +message from the President could be received before a speaker had +been elected, but it was decided that the message should be read. +The first paragraph is as follows; + +"Circumstances have occurred to disturb the course of governmental +organization in the Territory of Kansas, and produce there a +condition of things which renders it incumbent on me to call your +attention to the subject, and urgently to recommend the adoption +by you of such measures of legislation as the grave exigencies of +the case appear to require." + +The President then gave his exposition of the condition of affairs +in that territory. This exposition was regarded as a partisan one +in favor of the so-called pro-slavery legislative assembly, which +met the 2d day of July, 1855. He recommended "that a special +appropriation be made to defray any expense which may become +requisite in the execution of the laws or the maintenance of public +order in the Territory of Kansas." + +This was regarded as a threat of the employment of the army to +enforce the enactments of a usurping legislature. Congress took +no action upon the message until after the organization of the +House. On the 14th of January, 1856, a motion was made by Mr. +Houston that the message of the President, in reference to the +Territory of Kansas, be referred to the committee of the whole on +the state of the Union. This motion was agreed to. No further +action was taken upon the message, but it remained in abeyance. +Congress was not prepared to act without full information of the +actual condition of affairs in that territory. + +On the 19th of March, 1856, the House of Representatives adopted +a series of resolutions offered by Mr. Dunn, of Indiana, as follows: + +"_Resolved_, That a committee of three of the Members of this House, +to be appointed by the speaker, shall proceed to inquire into and +collect evidence in regard to the troubles in Kansas generally, +and particularly in regard to any fraud or force attempted, or +practiced, in reference to any of the elections which have taken +place in said territory, either under the law organizing said +territory, or under any pretended law which may be alleged to have +taken effect since. That they shall fully investigate and take +proof of all violent and tumultuous proceedings in said territory +at any time since the passage of the Kansas-Nebraska act, whether +engaged in by residents of said territory, or by any person or +persons from elsewhere going into said territory and doing, or +encouraging others to do, any act of violence or public disturbance +against the laws of the United States, or the rights, peace, and +safety of the residents of said territory; and for that purpose +said committee shall have full power to send for and examine and +take copies of all such papers, public records, and proceedings, +as in their judgment will be useful in the premises; and also, to +send for persons and examine them on oath, or affirmation, as to +matters within their knowledge touching the matters of said +investigation; and said committee, by their chairman, shall have +the power to administer all necessary oaths or affirmations connected +with their aforesaid duties. + +"_Resolved, further_, That said committee may hold their investigations +at such places and times as to them may seem advisable, and that +they may have leave of absence from the duties of this House until +they shall have completed such investigation. That they be authorized +to employ one or more clerks, and one or more assistant sergeants- +at-arms, to aid them in their investigation; and may administer to +them an oath or affirmation faithfully to perform the duties assigned +to them respectively, and to keep secret all matters, which may +come to their knowledge touching such investigation as said committee +shall direct, until the report of the same shall be submitted to +this House; and said committee may discharge any such clerk or +assistant sergeant-at-arms for neglect of duty or disregard of +instructions in the premises, and employ others under like +regulations. + +"_Resolved, further_, That if any persons shall in any manner +obstruct or hinder said committee, or attempt so to do, in their +investigation, or shall refuse to attend on said committee, and to +give evidence when summoned for that purpose, or shall refuse to +produce any papers, book, public record, or other proceeding in +their possession or control, to said committee, when so required, +or shall make any disturbance where said committee are holding +their sittings, said committee may, if they see fit, cause any and +every such person to be arrested by said assistant sergeant-at- +arms, and brought before this House, to be dealt with as for a +contempt. + +"_Resolved, further_, That for the purpose of defraying the expenses +of said commission, there be and hereby is appropriated the sum of +ten thousand ($10,000) dollars, to be paid out of the contingent +fund of this House. + +"_Resolved, further_, That the President of the United States be +and is hereby requested to furnish to said committee, should they +be met with any serious opposition by bodies of lawless men in the +discharge of their duties aforesaid, such aid from any military +force as may, at the time, be convenient to them, as may be necessary +to remove such opposition, and enable said committee, without +molestation, to proceed with their labors. + +"_Resolved, further_, That when said committee shall have completed +said investigation, they report all the evidence so collected to +this House." + +On the 25th of March, 1856, the speaker appointed Lewis D. Campbell, +of Ohio, William A. Howard, of Michigan, and Mordecai Oliver, of +Missouri, as the special committee of the House under the above +resolution. On the same day Mr. Campbell requested to be excused +from the committee referred to, and I was appointed by the speaker +in his place, leaving Mr. Howard as chairman. + +I accepted the position assigned me with much diffidence. I knew +it was a laborious one, that it would take me away from my duties +in the House, expose me to a great deal of fatigue and some danger, +yet I felt that the appointment on so important a committee was a +high compliment when given to a new Member, and at once made +preparations for the task before me. + +The committee organized at the city of Washington, on the 27th of +March, 1856. + +Mrs. Sherman expressed a strong desire to accompany me. I tried +to frighten her from going, but this made her more resolute, and +I consented. She remained with or near us during our stay in Kansas +and Missouri, and for a time was accompanied by Mrs. Oliver, a +charming lady, to whom we were much indebted for kindness and +civility where most of her sex were unfriendly. + +The investigation continued from our arrival at St. Louis, on the +12th day of April, 1856, until our arrival at Detroit, on the 17th +day of June following, and was conducted in all respects like a +judicial trial. The testimony taken filled an octavo volume of +1,188 pages. + +Mr. Howard, during our stay in Kansas, was not in very good health, +but he never relaxed in his labor until the testimony closed. He +was a man of marked ability, a good lawyer, conservative in all +his ideas and tendencies, and throughly fair and impartial. At +his request I accompanied him, with our excellent corps of assistants, +to his home in Detroit, where his health so failed that he was +confined to his bed for a week. This threw upon me the preparation +of the report. The resolutions, under which we were acting, did +not require a report from the committee, but only required a report +of all the evidence collected, to the House of Representatives, +but we felt that such a report without a summary of the evidence +and principal facts proven would not be satisfactory to the House. + +The majority and minority reports contained 109 pages of printed +matter and entered into full details as to the condition of affairs +in that territory, and of every election held therein. When the +act to organize the Territory of Kansas was passed, May 30, 1854, +the greater portion of the eastern border of the territory was +included in Indian reservations not open for settlements, and in +no portion were there more than a few white settlers. The Indian +population of the territory was rapidly decreasing, while many +emigrants from different parts of the country, were anxiously +waiting the extinction of the Indian title, and the establishment +of a territorial government, to seek new homes on the fertile +prairies which would be opened to settlement. It cannot be doubted +that if the free condition of Kansas had been left undisturbed by +Congress, that territory would have had a rapid, peaceful, and +prosperous settlement. Its climate, its soil, and its easy access +to the older settlements, would have made it the favored course +for the tide of emigration constantly flowing to the west, and in +a brief period it would have been admitted to the Union as a free +state, without sectional excitement. If so organized, none but +the kindest feelings would have existed between its citizens and +those of the adjoining State of Missouri. Their mutual interests +and intercourse, instead of endangering the harmony of the Union, +would have strengthened the ties of national brotherhood. + +The testimony taken by the committee clearly showed that before +the proposition to repeal the Missouri Compromise was introduced +into Congress, the people of western Missouri were indifferent to +the prohibition of slavery in the territory, and neither asked nor +desired its repeal. + +When, however, the prohibition was removed by the action of Congress, +the aspect of affairs entirely charged. The whole country was +agitated by the reopening of a controversy which conservative men +in different sections believed had been settled in every state and +territory by some law beyond the danger of repeal. The excitement +which always accompanied the discussion of the slavery question +was greatly increased by the hope, on the one hand, of extending +slavery into a region from which it had been excluded by law; and, +on the other, by a sense of wrong done by what was regarded as a +breach of public faith. This excitement was naturally transferred +into the border counties of Missouri and the territory, as settlers +favoring free or slave institutions moved into them. + +Within a few days after the organic law passed, and as soon as its +passage could be known on the border, leading citizens of Missouri +crossed into the territory, held "squatter meetings," voted at +elections, committed crimes of violence, and then returned to their +homes. This unlawful interference was continued in every important +stage in the history of the territory; _every election_ was +controlled, not by the actual settlers, but by the citizens of +Missouri; and, as a consequence, every officer in the territory, +from constable to legislator, except those appointed by the President, +owed his position to non-resident voters. None were elected by +the settlers, and no political power whatever, however important, +was exercised by the people of the territory. + +In October, 1854, the Governor of Kansas, A. H. Reeder, and other +officers appointed by the President, arrived in the territory. +Settlers from all parts of the country came in great number, entering +their claims and building their cabins. The first election was +for delegate to Congress and was held on the 29th of November, +1854. The governor divided the territory into seventeen election +districts, appointed judges, and prescribed proper rules for the +election. The report of the committee enters into full details as +to this election and all subsequent thereto in each district. The +conduct of the election in the second district, held at the village +of Douglas, nearly fifty miles from the Missouri line, is a fair +specimen of all the elections in Kansas. The report says: + +"On the second day before the election large companies of men came +into the district in wagons and on horseback, and declared that +they were from the State of Missouri, and were going to Douglas to +vote. On the morning of the election they gathered around the +house where the election was to be held. Two of the judges appointed +by the governor did not appear, and other judges were selected by +the crowd; all then voted. In order to make a pretense of right +to vote, some persons of the company kept a pretended register of +squatter claims, on which anyone could enter his name, and then +assert he had a claim in the territory. A citizen of the district, +who was himself a candidate for delegate to Congress was told by +one of the strangers that he would be abused, and probably killed, +if he challenged a vote. He was seized by the collar, called a +damned Abolitionist, and was compelled to seek protection in the +room with the judges. About the time the polls were closed these +strangers mounted their horses and got into their wagons and cried +out, 'All aboard for Westport.' A number were recognized as +residents of Missouri, and among them was Samuel H. Woodson, a +leading lawyer of Independence. Of those whose names are on the +poll-books, 35 were resident settlers and 226 were non-residents." + +In January and February, 1855, the governor, A. H. Reeder, caused +a census to be taken of the inhabitants and qualified voters in +Kansas. On the day the census was completed he issued his proclamation +for an election to be held March 30, 1855, for members of the +legislative assembly of the territory. The proclamation prescribed +the boundaries of the districts, the places for polls, the names +of judges, the apportionment of members, and the qualification of +voters. Had it been observed, a just and fair election would have +reflected the will of the people of Kansas. Before the election, +however, false and inflammatory rumors were busily circulated among +the people of western Missouri. They grossly exaggerated and +misrepresented the number and character of the emigration then +passing into the territory. By the active exertions of many of +the leading citizens, the passions and prejudices of the people of +that state were greatly excited. Several residents of Missouri +testified to the character of the reports circulated among and +credited by the people. These efforts were successful. By an +organized movement, which extended from Andrew county, in the north, +to Jasper county, in the south, and as far eastward as Boone and +Cole counties (Missouri), companies of men were collected in +irregular parties and sent into every council district in the +territory, and into every representative district but one. The +men were so distributed as to control the election in every district. +They went to vote, and with the avowed design to make Kansas a +slave state. They were generally armed and equipped, carrying with +them their own provisions and tents, and so marched into the +territory. + +As this election was for a legislature, the validity of which was +contested, the committee took great pains to procure testimony as +to the election in each election district. The election in the +second district is a fair specimen. In that district, on the +morning of the election, the judges appointed by the governor +appeared and opened the polls. Their names were Harrison Burson, +Nathaniel Ramsay and Mr. Ellison. The Missourians began to arrive +early in the morning, some 500 or 600 of them in wagons and carriages +and on horseback, and under the lead of Samuel J. Jones, then +postmaster of Westport, Missouri; Claiborne F. Jackson and a Mr. +Steeley, of Independence, Missouri. They were armed with double- +barreled guns, rifles, bowie-knives and pistols, and had flags +hoisted. They held a sort of informal election off at one side, +at first for governor of Kansas Territory, and shortly afterwards +announced Thomas Johnson, of Shawnee Mission, elected governor. +The polls had been opened but a short time when Mr. Jones marched +with the crowd up to the window and demanded that they be allowed +to vote, without swearing as to their residence. After some noisy +and threatening talk, Claiborne F. Jackson addressed the crowd, +saying that they had come there to vote; that they had a right to +vote if they had been there but five minutes, and he was not willing +to go home without voting; this was received with cheers. Jackson +then called upon them to form into little bands of fifteen or +twenty, which they did, and went to an ox-wagon filled with guns, +which were distributed among them, and proceeded to load some of +them on the ground. In pursuance of Jackson's request, they tied +white tape or ribbons in their button holes, so as to distinguish +them from the "Abolitionists." They again demanded that the judges +resign. Upon their refusing to do so they smashed in the window, +sash and all, presented their pistols and guns, and at the same +time threatened to shoot. Some one on the outside cried out not +to shoot, as there were pro-slavery men in the house with the +judges. They then put a pry under the corner of the house, which +was built of logs, lifted it up a few inches, and let it fall again, +but desisted upon being again told that there were pro-slavery men +in the house. During this time the crowd repeatedly demanded to +be allowed to vote without being sworn, and Mr. Ellison, one of +the judges, expressed himself willing, but the other two judges +refused; thereupon a body of men, headed by Sheriff Jones, rushed +into the judges' room with cocked pistols and drawn bowie-knives +in their hands, and approached Burson and Ramsay. Jones pulled +out his watch and said he would given them five minutes to resign +in, or die. When the five minutes had expired and the judges had +not resigned, Jones now said he would given them another minute +and no more. Ellison told his associates that if they did not +resign there would be one hundred shots fired in the room in less +than fifteen minutes, and then snatching up the ballot-box ran out +into the crowd, holding up the ballot-box and hurrahing for Missouri. +About that time Burson and Ramsay were called out by their friends, +and not suffered to return. As Mr. Burson went out he put the +ballot poll-books in his pocket and took them with him, and as he +was going out Jones snatched some papers away from him, and shortly +afterwards came out himself, holding them up, crying, "Hurrah for +Missouri!" After he discovered they were not the poll-books he +took a party of men with him and captured the books from a Mr. +Umberger, to whom Burson had given them. They then chose two new +judges and proceeded with the election. They also threatened to +kill the judges if they did not receive their votes, or resign. +They said no man should vote who would submit to be sworn; that +they would kill any man who would offer to do so. Some of the +citizens who were about the window, but had not voted when the +crowd of Missourians marched up, upon attempting to vote were driven +back by the mob, or driven off. One of them, Mr. I. M. Mace, was +asked if he would take the oath, and upon his replying that he +would if the judges required it, he was dragged through the crowd +away from the polls, amid cries of "kill the damned nigger-thief," +"cut his throat," "tear his heart out," etc. After they got into +the outside of the crowd they stood around him with cocked revolvers +and drawn bowie-knives, one man putting a knife to his breast to +that it touched him, another holding a cocked pistol to his ear, +while another struck at him with a club. + +The Missourians declared that they had a right to vote, if they +had been in the territory but five minutes. Some said they had +been hired to come there and vote, and got a dollar a day, "and by +God they would vote or die there." They said the 30th day of March +was an important day, as Kansas would be made a slave state on that +day. They began to leave in the direction of Missouri in the +afternoon, after they had voted, leaving some thirty or forty around +the house where the election was held, to guard the polls till +after the election was over. The citizens of the territory were +not armed, except those who took part in the mob, and a large +portion of them did not vote. Three hundred and forty-one votes +were polled there that day, of which but some thirty were citizens. +A protest against the election was prepared and sent to the +governor. + +A similarly organized and conducted election was held in each of +the other districts of the territory, varying only in degrees of +fraud and violence. In the fifteenth district it was proven that +several hundred Missourians appeared and voted. Several speeches +were made at the polls, and among those who spoke was Major Oliver, +one of our committee. He urged all persons to use no harsh words +and expressed a hope that nothing would be said or done to wound +the feelings of the most sensitive on the other side, giving some +reasons, based on the Missouri Compromise, why they should vote, +but he himself did not vote. The whole number of votes cast in +that district was 417. The number of legal voters was about 80. +Of the names on the poll-book but 62 were on the census roll. But +a small portion, estimated at one-fourth of the legal voters, voted. + +The validity of the so called pro-slavery legislature rested upon +this election. It is hardly necessary at this late day to say that +such a legislative body could not rightly assume or lawfully exercise +legislative functions over any law-abiding community. Their +enactments were, by every principle of law and right, null and +void. The existence of fraud at the election was admitted by every +one, but it was defended on the ground that the New England Emigrant +Aid Society had imported a great number of emigrants into Kansas +for the sole purpose of making that territory a free state. This +claim was thoroughly investigated and the organization and history +of the society examined. The only persons who emigrated into the +territory under the auspices of this company in 1855, prior to the +election in March, was a party of 169 persons who came under the +charge of Charles Robinson, and of whom sixty-seven were women and +children. They came as actual settlers, intending to make their +homes in the territory, and for no other purpose. Some of them +returned, but most of them became settlers. A few voted at the +election in Lawrence but the number was small. The names of these +emigrants were ascertained and thirty-seven of them were found upon +the poll-books. This company of peaceful emigrants, moving with +their household goods, was distorted into an invading horde of +pauper Abolitionists, who were, with others of a similar character, +to control the domestic institutions of the territory, and then +overturn those of a neighboring state. + +The invasion of March 30 left both parties in a state of excitement, +tending directly to produce violence. The successful party was +lawless and reckless, while assuming the name of the "Law and Order" +party. The Free State party, at first surprised and confounded, +was greatly irritated, but soon resolved to prevent the success of +the invasion. In some districts, protests were sent to the governor; +in others such action was prevented by threats, in others by want +of time, and in others by the belief that a new election would +bring a new invasion. About the same time, all classes of men +commenced carrying deadly weapons about their persons. Under these +circumstances, a slight or accidental quarrel produced unusual +violence. Lawless acts became frequent and passed unpunished. +This unhappy condition of the public mind was further increased by +acts of violence in western Missouri, where, in April, a newspaper, +called the "Parkville Luminary," was destroyed by a mob, and numerous +acts of violence and homicides committed. Some innocent persons +were unlawfully arrested and others ordered to leave the territory. +The first one notified to leave was William Phillips, a lawyer of +Leavenworth, and upon his refusal the mob forcibly seized him, took +him across the river, carried him several miles into Missouri, and +then tarred and feathered him, shaving one side of his head and +committing other gross indignities upon his person. Judge Lecompte, +chief justice of the territory, Colonel L. N. Burns, of Weston, +Missouri, and others, took part in and made speeches at a bitterly +partisan meeting, the tendency of which was to produce violence +and disorder. + +After the most careful examination of the poll-books and the +testimony taken, we were convinced beyond all doubt that the election +of the 30th of March, 1855, was utterly void. It was the result +of an organized invasion from the State of Missouri, a lawless +seizure of the conduct of the election, and the open voting by +thousands of persons who neither resided in nor pretended to be +residents of Kansas. Not content with voting they made false +returns of votes never cast, and excluded legal voters because they +were "Abolitionists." + +A more wanton and shameless overthrow of popular rights cannot be +found in history. + +The so-called legislative assembly, thus elected, met at Pawnee, +on the 2nd of July, 1855. It attempted to make laws for Kansas, +and to that end adopted, in substance, the laws of the State of +Missouri in gross as the laws for the territory, but, to retain +its power, it provided that every officer of the territory, executive +and judicial, was to be appointed by the legislature, or by some +officer appointed by it. + +The legality of this legislature was denied by the great majority +of the people who never acquiesced in or obeyed its enactments, +thus taking the only course open to them to secure a lawful +government. + +While the alleged legislative assembly was in session, a movement +was instituted to form a state government, and apply for admission +into the Union as a state. The first step taken by the people of +the territory, in consequence of the invasion of March 30, 1855, +was the circulation, for signature, of a graphic and truthful +memorial to Congress. Every allegation in this memorial was +sustained by the testimony. No further step was taken, as it was +hoped that some action by the general government would protect them +in their rights. When the alleged legislative assembly proceeded +to construct the series of enactments referred to, the settlers +were of the opinion that submission to them would result in entirely +depriving them of the rights secured to them by the organic law. + +Their political condition was freely discussed in the territory +during the summer of 1855. Several meetings were held in reference +to holding a convention to form a state government, and to apply +for admission into the Union as a state. Public opinion gradually +settled in favor of such an application to the Congress to meet in +December, 1855. The first general meeting was held at Lawrence, +on the 15th of August, 1855. Other meetings were held in various +parts of the territory, which indorsed the action of the Lawrence +meeting, and delegates were selected in compliance with its +recommendation. An election was called by a proclamation addressed +to the legal voters of Kansas, requesting them to meet at their +several precincts at the time and places named in the proclamation, +then and there to cast their ballots for members of a constitutional +convention, to meet at Topeka, on the fourth Tuesday of October. + +Elections were held at the time and places designated, and the +returns were sent to the executive committee. + +The result of the election was proclaimed by the executive committee, +and the members elect were required to meet on the 23rd of October, +1855, at Topeka. In pursuance of this proclamation and direction +the constitutional convention met at the time and place appointed, +and framed a state constitution. A memorial to Congress was also +prepared, praying the admission of Kansas into the Union as a state +under that constitution. The convention also provided that the +question of the adoption of the constitution, and other questions, +be submitted to the people, and required the executive committee +to take the necessary steps for that purpose. + +Accordingly, an election was held on the 15th day of December, +1855, in compliance with the proclamation issued by the executive +committee who then issued a proclamation reciting the results of +the election of the 15th of December, and at the same time provided +for an election, to be held on the 11th day of January, 1856, for +state officers and members of the general assembly of the State of +Kansas. The election was accordingly held in several election +precincts, the returns of which were sent to the executive committee +who announced the result by a proclamation. + +Thus, when we arrived in Kansas, two rival governments were in +existence, one the result of fraud and force, the other confessedly +incomplete, being without executive power or recognition. Congress +alone could settle the controversy by recognizing one or the other. +Its action and its failure to act will be stated further on. + +A brief narrative of incidents while the committee was in Kansas +may be of interest. + +We arrived by steamer at a place called Westport Landing, near the +mouth of the Kansas River. As I remember the place it was a mere +hamlet, composed of three dwellings, a store, a tavern, and a +blacksmith shop. We passed over the high rolling prairie, where +but a few and scattered cabins then existed, but which is now the +site of Kansas City, a beautiful city of 90,000 inhabitants. About +six miles from the landing we entered Westport, the headquarters +of the Santa Fé trade. This important trade in 1854 was conducted +with "prairie schooners," wagons of great dimensions rudely but +strongly built, each hauled by four or six mules or Indian ponies, +and all driven by as rough a set of men of mixed color, tribe and +nativity as could be found anywhere in the world. Their usual +dress was a broad brimmed felt hat, a flannel shirt, home-spun +trousers, without suspenders, and heavy cowhide boots outside of +their trousers, with a knife or pistols, or both, in their belts +or boots. They were properly classed as border ruffians, and as +a rule were whisky soaked. + +The contrast of this region between then and now is a marked evidence +of the wonderful change that has been made within a single generation. +I have several times visited Kansas City and its environs since +1856. I have noted the change at each visit! The rolling prairie +has been checkered with streets and avenues, and the squares and +suburbs are dotted all over with residences, stores and workshops. +The landing, once a single pier, now extends miles along the Missouri +River. The border ruffians have disappeared with the Indians and +"greasers," and have been replaced by an active, intelligent and +prosperous community. + +Mrs. Sherman and myself started in advance for Lawrence in an open +buggy drawn by one horse, and were told to follow the trail, and +this we had no difficulty in doing. We passed through one or more +Indian reservations, over as beautiful a country as the sun shines +upon, but without house or habitation, except Indian huts. We +arrived at Lawrence, a town less than two years old, and were +cordially received. The people there were fearing a raid by the +"border ruffians," but this was fortunately postponed until our +departure for Leavenworth. + +The committee proceeded immediately to take testimony. Governor +Reeder acted in behalf of the Free State side, and General Whitfield +in behalf of the pro-slavery side, this being the conceded line of +demarcation between the opposing factions. The town was in embryo, +nothing finished, and my wife and I were glad to have a cot in a +room in the unfinished and unoccupied "Free State Hotel," soon +after burned to the ground by Jones, the marshal of Kansas, or his +deputies. There was no difficulty in obtaining witnesses or +testimony, but, as a rule, the witnesses on one side would only +testify in Lawrence, and those on the other in Lecompton or +Leavenworth. They were like soldiers in hostile armies, careful +to keep outside of the enemy's camp. + +Dr. Robinson, afterwards Governor Robinson, was then by far the +ablest and bravest leader of the Free State cause. His history of +the Kansas conflict is the most interesting yet published. When +the committee visited Lecompton to take testimony, it was a surprise +to us that he not only offered, but insisted upon going to that +place, the headquarters and capital of the pro-slavery party. It +was then scarcely a hamlet, and its existence depended entirely +upon the success of that party. Dr. Robinson and I rode together +into the place. It was easy to see that he was not a welcome +visitor. Everyone but the committee carried arms. Several murders +and affrays had recently occurred, in regard to which we had taken +evidence. Here we had access to the poll-books of the contested +elections, and met on friendly terms with the officers of the +territory, the chief of whom were Judge Lecompte, chief justice of +the territory, after whom the town had been named, and Jones, the +marshal of the United States. Governor Shannon was, I think, also +there for a time. The quarters for lodging were even more limited +here than in Lawrence. I slept in a cot side by side with the one +occupied by Judge Lecompte, who, though a terror to the Free State +men, seemed to me to be a good humored gentleman, more violent in +his words than in his acts. We had no unpleasant incident while +there, though such had been prophesied at Lawrence. + +From Lecompton the committee went to Topeka, then quite a small +village, now a city of 33,000 inhabitants. It was already ambitious +to become the Free State capital of Kansas, by reason of its central +position. There was then no settlement of any importance west of +Topeka. Some testimony was taken, but we soon returned to Lawrence, +and from thence went to Leavenworth. A large part of the distance +between these places was an Indian reservation. Mrs. Sherman and +I rode over it in a buggy, and found no white man's habitation on +the way. Its great value and fertility was easily perceived, and +it is now well settled by an active and prosperous population of +white men. On the road we met an Indian seated near his wigwam, +with a gun in his hand, and for a moment I feared he might use it. +He uttered some Indian gibberish, which we construed as an invitation +to enter his hut. We tied our horse, entered, and found no one +there but an old squaw. I gave the Indian some silver which he +greedily took, but indicated by his motions that he wanted a drink +of whisky, but this I was not able to give him. + +Leavenworth was a new town near Fort Leavenworth, the then western +military post of the army of the United States. We placed ourselves +in communication with Colonel Sumner, then in command, but we had +no occasion to summon his official aid, though authorized by the +resolutions under which we were acting to call for such assistance +from any military force which was at the time convenient to us. +However, our meetings there were more disturbed than at any other +place. The trouble commenced at Lawrence shortly after our arrival +at Leavenworth. A company of about 700 armed men, the great body +of whom were not citizens of the territory, were marched into the +town of Lawrence under Marshal Donaldson and Sheriff Jones, officers +claiming to act under the law, and they then bombarded and burned +to the ground a valuable hotel and one private house, and destroying +two printing presses and material. The posse, being released by +the officers, proceeded to sack, pillage, and rob houses, stores, +trunks, even taking the clothing of women and children. The people +of Leavenworth were much alarmed, as threats were made to clean +out the "Black Republican Committee" at Leavenworth. No attempt +of that kind was made. Later on, Dr. Robinson was arrested on a +steamboat on the way with his wife to St. Louis. We had confided +to him a copy of the testimony taken, to be delivered to Mr. Banks, +speaker of the House. We believe that a knowledge of that fact +caused the arrest, but, fortunately, Mrs. Robinson, who had the +testimony safely secured in her clothing, was allowed to proceed +to Washington. Dr. Robinson was taken back to Leavenworth and +placed in prison, where I called upon him, but was rudely threatened, +and was only allowed to speak to him in the presence of the jailer. + +We were frequently threatened through anonymous letters. On one +occasion, upon going in the morning to the committee room, I found +tacked upon the door a notice to the "Black Republican Committee" +to leave Kansas "upon penalty of death." I cut it from the door +and called upon a bystander to testify to the contents and the +place from which it was taken. + +On one Sunday morning, while sitting in my lodging, a very rough +looking man entered, and I indicated to Mr. W. Blair Lord, our +stenographer, to take down what was said. With many oaths and +imprecations he told us that he had been robbed by ruffians of his +horses and wagon a few miles from Leavenworth; that he had offered +to fight them, but they were cowards; that he was born in Richland +county, Ohio, near Mansfield, and he wanted me to help him get his +traps. I knew his family as famous fighters. I asked him if he +would swear to his story. He said he would, and Mr. Lord read it +to him, oaths and all, from his stenographic notes. He stared at +Lord and demanded "Where in hell did you get that?" He was handed +the stenographic notes and, after looking at them, he exclaimed: +"Snakes, by God; but it is all true!" Whether he got his outfit +and traps I never knew. + +The evidence at Leavenworth being closed the committee returned to +Westport, Missouri. While we were there we saw an armed and +organized body of residents of Missouri march across the line into +Kansas to retaliate, as we were told, the murder of five pro-slavery +men at Osawatamie. While they were marching into Westport from +the east, Governor Shannon, in obedience to the summons of the +committee, came into Westport from the territory, and in his presence +they filed off in regular array into the territory. It was difficult +to ascertain the precise causes of these murders, but it was shown +that they were in retaliation for those of certain Free State men, +one of whom was the son of John Brown, later the famous leader of +the attack on the fort at Harper's Ferry, and who had acted for +the committee in summoning witnesses to Lawrence. The testimony +in respect to these murders was vague, and the murderers were not +identified. Two years afterwards I met John Brown in Chicago, and +asked him about the murder of the pro-slavery men at Osawatamie; +he replied with spirit that they were not murdered, but that they +had been arrested, tried by a jury, convicted and executed. The +arrest, trial and execution must have been done during one night. +He did not disclose the names of the executioners, but his cool +statement was a striking picture of the scenes then enacted in +Kansas by both sides; both appealed to the law of force and crime, +and crime was justified by crime. + +The evidence taken at Westport closed the investigation and Mr. +Howard and I returned to Detroit, as already stated. + +The report was approved by Mr. Howard, and presented by him to the +House of Representatives, July 1, 1856, as a question of privilege. +The reception of it gave rise to much debate, but in the end I was +permitted on the same day to read it. The minority report of Mr. +Oliver was presented July 11 of that year. No action was taken on +the reports, but they were widely published. + +On July 31, 1856, I made a speech on the Kansas contested election +between General Whitfield and Governor Reeder, during which I was +drawn into a discussion with Alexander H. Stephens, of Georgia, +and Mr. Oliver, of Missouri, in which the general questions involved +in the Kansas controversy were fully debated. I closed with this +language: + +"The worst evil that could befall our country is civil war, but +the outrages in Kansas cannot be continued much longer without +producing it. To our southern brethren I especially appeal. In +the name of southern rights, crimes have been committed, and are +being committed, which I know you cannot and do not approve. These +have excited a feeling in the northern states that is deepening +and strengthening daily. It may produce acts of retaliation. You +are in a minority and, from the nature of your institutions, your +relative power is yearly decreasing. In excusing this invasion +from Missouri--in attempting to hold on to an advantage obtained +by force and fraud--you are setting an example which, in its +ultimate consequences, may trample your rights under foot. Until +these wrongs are righted, you must expect northern men to unite to +redress them. It may not be this year, but, as sure as there is +a God in heaven, such a union will be effected; and you will gain +nothing by sustaining northern agitators in violating the compromise +of your fathers." + +On July 28, 1856, I offered, as an amendment to the army appropriation +bill, the following proviso: + +"_Provided, nevertheless_, That no part of a military force of the +United States herein provided for, shall be employed in aid of the +enforcement of the enactments of the alleged legislative assembly +of the Territory of Kansas, recently assembled at Shawnee Mission, +until Congress shall have enacted either that it was or was not a +valid legislative assembly, chosen in conformity with the organic +law, by the people of said territory. And _Provided_, That until +Congress shall have passed on the validity of the said legislative +assembly of Kansas, it shall be the duty of the President to use +the military force in said territory to preserve the peace, suppress +insurrection, repel invasion, and protect persons and property +therein, and upon the national highways in the State of Missouri, +from unlawful seizures and searches. And _be it further provided_, +That the President is required to disarm the present organized +militia of the Territory of Kansas and recall all the United States +arms therein distributed, and to prevent armed men from going into +said territory to disturb the public peace, or aid in the enforcement +or resistance of real or pretended laws." + +After long debate, this was agreed to by a vote of 80 yeas to 47 +nays. The deliberate purpose of a majority of the House was to +prevent any further support of the Lecompton territorial legislature. +This amendment, however, was disagreed to by the Senate and referred +to a committee of conference. On the 18th of August, the last day +of the session, the disagreement continued and the conference report +was taken up for action. A motion was made that the House insist +upon its amendments and agree to another committee of conference. +This was defeated, but no definite action was taken, as a majority +of the House was opposed to a further conference, and so the army +bill failed. + +On the same day the President, by proclamation, convened the two +Houses in extra session to meet on the 21st day of August, three +days later. The President, in his message, urged Congress to recede +from the Kansas proviso in the army bill. The Republicans of the +House were determined to insist upon that proviso, and, by repeated +votes, refused to withdraw it or to reconsider it, but, after a +session of nine days, the House finally yielded, but only after +the Senate had agreed to an amendment, which contained the substance +of the proviso offered by me, as follows; + +"_Provided_, That no part of the military force of the United +States, for the support of which appropriations are made by this +act, shall be employed in aid of the enforcement of any enactment +heretofore passed by the bodies claiming to be the territorial +legislature of Kansas." + +This amendment was agreed to and thus, in the final struggle, while +no effective measures to relieve the people of Kansas from the +tyranny imposed upon them were adopted, the declaration was made +that the military force of the United States should not be used to +aid in the enforcement of any enactment theretofore passed by bodies +claiming to be the territorial legislature of Kansas. + +Thus it appears that during this long and wearisome session (for +in fact the two were but one), I was almost exclusively occupied +in a futile effort to restore the prohibition of slavery in Kansas, +according to the Missouri Compromise, but the struggle made was +fruitful in good. It strengthened the Free State sentiment in +Kansas, it aroused public sentiment in the north, and drove the +south to adopt new and strange theories which led to divisions in +the Democratic party and its disruption and overthrow in 1860. +The compromise made was understood to be the work of Mr. Seward, +and, though not satisfactory to the Republicans of the House, it +was at least a drawn battle, and, like Bunker Hill to Yorktown, +was the prelude to the Revolution that ended at Appomattox. + +Among the many who attained distinction in the 34th Congress I can +only refer to a few, the chief of whom was Nathaniel P. Banks, who, +after a long struggle, was elected speaker. He was born in Waltham, +Massachusetts, January 30, 1816. He had risen into prominence +without any aid or advantage of early education or training. He +was the son of an overseer in a cotton factory at Waltham, where +he was for a time employed. He improved his leisure hours by the +study of history, political economy and the science of government. +He learned the trade of a machinist. He early acquired the habit +of speaking well on various subjects, and was elected as a Democratic +member of the legislature from his native town. In 1852 he was +elected to Congress, running upon the ticket with General Pierce, +the Democratic candidate for President. He took a decided stand +against the repeal of the Missouri Compromise. He was a man of +striking presence, with a fine voice and engaging manners. He +filled the difficult position of speaker with great credit, and is +still remembered by his associates as perhaps the best fitted for +the special duties of speaker of the House of any Member since the +time of Henry Clay. He was afterward elected Governor of Massachusetts +and continued in that position for several years. When the war +broke out he was appointed major-general of volunteers, but his +service in the army was not marked. After the war was over he was +re-elected to Congress, but seemed to have lost his power and +influence. In later years his memory was impaired and he "lagged +superfluous on the stage." He died September 1, 1894. + +Lewis D. Campbell, of Ohio, was elected to Congress in 1848 as a +Whig, and re-elected to each successive Congress down to 1856, when +his seat was contested and the House of Representatives decided +against him. He and Banks were the leading candidates for the +speakership of the 34th Congress, but the majority of the anti- +Nebraska Members voted for Banks, and upon his election Campbell +was made chairman of the committee of ways and means, and had +substantial control of the business of that Congress. He never +was in hearty sympathy with the Republican party. He was subsequently +elected to the 42nd Congress in 1870 as a Democrat, but had lost, +in a great measure, his influence. He served for a time as colonel +of a regiment in the war. He was a man of marked ability but was +too erratic to be a successful leader in any cause or party. + +In 1850, at the early age of twenty-seven, Galusha A. Grow was +elected a Representative in Congress from Pennsylvania. He was an +active and very useful Member. He took strong ground against the +repeal of the Missouri Compromise, and in 1859 was a competitor +with me for the position of speaker, but withdrew in my favor after +the first ballot. In the following Congress he was chosen speaker +and rendered very valuable service as such. After a continuous +service in Congress for fourteen years, he retired from active +political life and engaged in important business enterprises, but +always took an interest in political affairs. He was elected by +an overwhelming majority as a Member of the 53rd Congress at large +from his state. + +Schuyler Colfax was a conspicuous Member of Congress from 1855 +until he was nominated for the office of Vice President, in 1868, +on the ticket with General Grant. During this long period he +represented one district, and served for six years as speaker. He +was a very industrious, active Member. As we were of about the +same age, and our lives ran in parallel lines, we were often thrown +together. We and our families in Washington messed together in a +household for several years, and our intercourse was always friendly +and intimate. When he became Vice President he remarked to me that +I was first to enter the Senate, but he was first to become Vice +President. After his service as Vice President, he retired from +public life and delivered lectures upon many topics. + +Many other Members of Congress, equally worthy of note, have passed +away from the scenes of life, and some few survive. I would gladly +recall their memory if my space would allow. + + +CHAPTER VI. +BIRTH OF THE REPUBLICAN PARTY. +The Name Formally Adopted at Jackson, Michigan, in 1854--Nomination +of John C. Fremont at Philadelphia--Democratic Convention Nominates +James Buchanan--Effect of the Latter's Election on the North--My +Views Concerning President Pierce and His Administration--French +Spoilation Claims--First Year of Buchanan's Administration--Dred +Scott Case Decision by Supreme Court--The Slavery Question Once +More an Issue in Congress--Douglas' Opposition to the Lecompton +Scheme--Turning Point of the Slavery Controversy. + +During the first session of the 34th Congress, the opponents of +slavery were without a party name or organization. They agreed +only in the one demand, that slavery should not be established in +Kansas. On other questions they voted on old party lines. The +Members elected in 1854 in the northern states were Democrats, +Whigs or Free Soilers. Many of the Democrats still supported the +administration of President Pierce, and acquiesced in the doctrine +of popular sovereignty in the territories. A few of the Whigs, of +conservative leanings, acted with the Americans, or "Know-Nothings," +of the south. A strong popular movement was initiated in some of +the western states as early as 1854 in favor of a new party. This +was especially the case in Wisconsin and Michigan. On the 6th of +July, 1854, a popular convention was held at Jackson, Michigan, +composed of hundreds of men of all parties, who denounced slavery +as a great moral, social and political evil, and resolved that, +postponing and suspending all differences with regard to political +economy or administrative policy, they would act cordially and +faithfully in unison to oppose the extension of slavery, and be +known as Republicans until the contest was terminated. This name +was assumed in other states of the north. + +The state convention held in Ohio on July 13, 1855, formally declared +itself a convention of the Republican party. The long struggle in +Kansas, the elections in 1855, and the contest for the speakership +of the House, added strength to this movement, and the name +"Republican" was formally given to the new party by the national +convention held at Philadelphia, June 17, 1856, as the best expression +of its views and principles. + +It appeared for the time that the new party would carry the country +in a blaze of enthusiasm. And, looking over the past, I am clearly +of the opinion that this would have been the result but for the +faulty nomination of Colonel John C. Fremont as the Republican +candidate for President, and the sagacious nomination of James +Buchanan as the Democratic candidate. The Republican party, still +composed of uncertain elements, sought only for a candidate that +was available. Seward or Chase was the natural candidate. They +were fully identified with the principles and purposes of their +party. They were men of marked ability, strong in their respective +states, each elected governor of his state and sure of its support, +but Chase was opposed on account of his advanced opinions on the +slavery question, and Seward was actively opposed by the so-called +American party, for his open hostility to its principles and policy. +All these sought for a new man, and public opinion gradually, but +strongly, turned to John C. Fremont. He had no experience in public +life, but he attracted attention by his bold explorations in the +west and, especially, by his marching to California, and occupation +of this Mexican territory. A strong effort was made to secure the +nomination of Justice McLean of the United States Supreme Court. +He had been long in public life, had been a cabinet officer in two +administrations, had been appointed to the supreme bench by Jackson, +had held this position for twenty-six years, and was a man of +spotless integrity. His nomination was strongly urged by conservative +Republicans in all the northern states, and by the delegates from +Pennsylvania, especially by Thaddeus Stevens, who asserted that the +nomination of Fremont would not only lose the State of Pennsylvania, +to the Republicans, but that the party would be defeated at the +presidential election. But the current of opinion in the west, in +New England and New York, was too strong in favor of Fremont, and +he was nominated. + +The Democratic national convention met at Cincinnati, June 2, 1856, +for the nomination of candidates for President and Vice President. +Popular feeling was then strongly aroused against that party by +the assault of Brooks on Sumner, the removal of Reeder, the +appointment of Shannon, the crimes in Kansas, and the recent sacking +of Lawrence. A large proportion of northern Democrats, who still +adhered to their party, were restless under the violence of their +southern associates. It was this feeling, no doubt recognized by +both northern and southern Democrats, that prevented the nomination +of either Pierce or Douglas. Buchanan was regarded as a conservative +man of great experience, who, being absent from the country during +the entire period of the Kansas contest, would, it was believed, +and as his supporters affirmed, pursue a quieting policy that would +arrest and prevent further outrages and would secure fair elections +in that territory. He was popular in Pennsylvania, had served for +many years in each House of Congress, had creditably represented +the United States as minister to Russia and Great Britain, had been +Secretary of State and the head of the cabinet of President Polk. +He was unanimously supported by the delegation from Pennsylvania, +then a doubtful state, and, after many ballots and the defeat of +Pierce, was nominated with the acquiescence of Douglas. This +nomination greatly strengthened the Democratic party. It held in +that party the protection Democrats, and a large proportion of +those who in 1854 voted for anti-Nebraska Members of Congress. +The appointment of Colonel Geary of Pennsylvania as Governor of +Kansas, in the place of Governor Shannon, and his firm and impartial +administration, greatly aided the Democratic party. It was regarded +as evidence of a change of policy in Kansas, made at the request +of Mr. Buchanan. + +The American party met at the city of Philadelphia soon after the +election of Banks as speaker, and nominated Millard Fillmore for +President and Donelson for Vice President. This movement did not +at first excite much attention, as it was known in the north it +would draw equally from the two great parties, and in the south +could only affect injuriously the Democratic party. Its platform +of principles was condemned by both the Republican and Democratic +conventions. + +Mr. Fillmore took strong ground against what he called a sectional +ticket presenting both candidates from the free states, with the +avowed purpose of one part of the Union ruling over the whole United +States. + +The nomination of Fremont, however, greatly strengthened the movement +in favor of Fillmore. There was a large element of the old Whig +party in the north, which, though friendly to Republican principles +and willing to support Seward or McLean, yet would not vote for +Fremont, who had none of the qualities that commanded their respect. +Such men as Ewing, Everett, Winthrop and Hilliard, conspicuous +leaders and eminent statesmen, announced their purpose to vote for +Fillmore. Mr. Choate, the eminent lawyer and statesman of +Massachusetts, declared his purpose to vote for Buchanan, upon the +plausible ground that, as the choice was between Buchanan and +Fremont, he was compelled, by a sense of duty, to vote for Buchanan. + +At the same time leading Democrats in the south declared that if +Fremont was elected the Union could not and ought not to be preserved. +The Whigs of the south, with scarce an exception, were committed +to the support of Fillmore and Donelson, and joined in an outcry +of danger to the Union. + +As the canvass progressed this feeling increased, and before its +close it became apparent that some of the older and more populous +Republican states would be lost by the Republican party. I shared +in this feeling of distrust of Fremont, but gave him my support. + +I was nominated without any opposition for re-election to Congress +by a convention held at Shelby on the 12th day of August, 1856, +and was elected in October by a majority of 2,861. + +I took an active part in the canvass, after the adjournment of +Congress, mainly in southern Ohio, where it was apparent that the +nomination of Buchanan was popular. In Pennsylvania, especially +in Philadelphia, the cry was for "Buck, Breck and free Kansas." +John G. Forney, the chairman of the Democratic state committee, +promised that if Buchanan was elected there would be no interference +with the efforts of the people of Kansas to make that territory a +free state. The result of the canvass was that Buchanan carried +the states of Pennsylvnia, New Jersey, Indiana, Illinois and +California at the November election and was elected. + +In reviewing the past it is apparent that the election of Buchanan +was necessary to convince the people of the north that no successful +opposition to the extension of slavery could be made except by a +party distinctly pledged to that policy. Mr. Buchanan encountered +difficulties which no human wisdom could overcome. Whatever may +have been his desire he was compelled, by the prevailing sentiment +in his party, to adopt measures that made a conflict between the +sections inevitable. The election of Fremont would probably have +precipitated this conflict before the north was ripe for it. His +conduct during the early period of the war proves that he would +have been unequal to such an emergency. His defeat was the +postponement of the irrepressible conflict until it became apparent +to all that our country must be all free or all slave territory. +This was the lesson taught by the administration of Buchanan, and +Lincoln was best fitted to carry it into execution. + +Pierce was still President, but after his defeat for the nomination +he changed his policy materially. Events were allowed to develop +in Kansas with a growing tendency in favor of the Free State party. +Judge Lecompte was removed from an office the duties of which he +was totally unfit to perform. A large number of emigrants from +many of the northern states were preparing to move in the spring +to Kansas. Governor Geary of that territory, who had taken a +decided stand in favor of equal and exact justice to all men, was +met by opposition from the pro-slavery faction. His life was +threatened and strong demands were made for his removal. He became +satisfied that he would not be sustained by the administration, +and on the 4th of March, 1857, resigned his position. + +Immediately upon the assembling of Congress in December, 1856, and +before the usual message had been sent to the President, notifying +him that the House of Representatives was prepared to enter upon +the duties of the session, a contest sprang up over the question +of administering the oath of office to Mr. Whitfield as a delegate +from the Territory of Kansas, and a struggle resulted which continued +until the 9th of December, when the oath of office was administered +to him and he took his seat. + +President Pierce sent to the House of Representatives, December 2, +1856, his last message. He commenced it with a careful review of +the Kansas question and this led to a debate which continued during +the entire session. On the 8th of December I undertook to answer +as much of the message as related to the slavery question. He had, +in the message, defended the repeal of the restriction of slavery +contained in the Missouri Compromise, asserting that this compromise +was unconstitutional and abortive, but I showed that it had been +recognized as in full force by every administration since and +including that of Monroe, that it did not extend to the territory +acquired from Mexico, and that it was consistent with the compromise +acts of 1850. He asserted that the purpose was not only to exclude +slavery from Kansas, but also from places where it then existed. +I showed this to be inaccurate by the express denial of such purpose +in every platform of the Republican party. I then declared that +"If I had my voice, I would not have one single political Abolitionist +in the northern states. I am opposed to any interference by the +northern people with slavery in the slave states; I act with the +Republican party, with hundreds of thousands of others, simply +because the Republican party resists the extension, but does not +seek the abolition, of slavery." + +My speech, as reported, expresses, as I believe, the limit and +extent of the aims of the Republican party at that time. The only +regret I feel is that the tone and temper of my remarks were not +such as should be addressed to the President of the United States +by a Member of Congress. + +What I say of myself can be truthfully said of many other Members. +The feeling against the President was embittered by the firm stand +taken by him in support of a policy which we regarded as unpatriotic, +and dangerous in the highest degree to the public peace and the +national Union. In his last message he defended or excused the +lawless efforts made by residents of Missouri to establish slavery +in Kansas. He made no effort to prevent the invasion of Kansas or +the crimes committed against its citizens. He appointed many +governors for this territory, and in every instance where they +sought to protect the rights of its people, he either removed them +or denied them his support. This was the case with Reeder and +Shannon. Even Governor Geary, whom he praised in his message, and +whom Buchanan had lauded during the canvass, was abandoned by both, +and compelled to resign because he sought to protect all citizens +alike. + +President Pierce was properly, according to usage, a candidate for +re-election when the convention met to nominate his successor, but +he was defeated by Buchanan. Mr. Douglas, the chief instrument in +the passage of the Nebraska bill, met a like fate. Buchanan was +saved only by the popular cry of "Buchanan, Breckenridge and Free +Kansas," and the confident belief, founded upon his declaration, +that his election would secure freedom to Kansas. + +The political excitement existing during the whole of President +Pierce's term entered into social life in Washington. The President +was not brought into contact with those who differed with him in +opinion. His family afflictions were, no doubt, the partial cause +of this. The sincere friendship that often exists between political +adversaries in public life were not possible during this period. +Social lines were drawn on sectional lines, and in the north party +lines became hostile lines. Such causes, no doubt, led to unjust +criticism of the President, and, in turn, caused him to regard his +political adversaries as enemies to their country and disturbers +of the public peace. I scarcely remember seeing him during this +Congress, and was strongly prejudiced against him. A more careful +study of the motives and conduct of public men during this period +has changed my opinion of many of them, and, especially, of President +Pierce. That he was a genial, social and agreeable companion is +affirmed by all who were familiar with him. That his opinions were +honestly entertained, and firmly supported, is shown by his adherence +to them without change or shadow of turning. In this respect he +compares favorable with many leading men of his party, who stifled +their opinions to meet the currents of the day. He had been a +general of distinction in the Mexican War and a Member of both the +Senate and House of Representatives. He was a leading lawyer in +his state. His messages to Congress, considered in a literary +view, were able state papers, clearly and strongly expressed. It +was his great misfortune to have to deal with a controversy that +he did not commence, but he did not shrink from the responsibility. +He believed in the policy of non-intervention in the territories, +and so did not prevent the "border ruffians" of Missouri crossing +the line and voting at every election in Kansas, setting up a bogus +legislature, adopting the laws of Missouri as the laws of Kansas, +and establishing negro slavery in that territory. Fortunately a +more numerous, courageous and intelligent population reversed all +this, and led, not only to the exclusion of slavery in Kansas, but +also to its abolition in the United States. + +With the kindly biography of President Pierce, written by his +friend, Nathaniel Hawthorne, before me, I can appreciate his ability, +integrity and agreeable social qualities, and only regret that he +was President of the United States at a time when the sagacity of +a Jefferson, the determined courage of a Jackson, or the shrewdness +and wisdom of a Lincoln, were needed to meet the difficulties and +dangers which he had to encounter. + +There is but one more personal incident of the 34th Congress I care +to mention. Mr. Banks designated me as a member of the committee +on foreign affairs. Mr. Alexander C. M. Pennington, as chairman +of that committee, handed me the voluminous papers in reference to +the French Spoilation Claims. They covered an interesting period +of American history, embracing all that between 1793 and 1801, in +which were involved important negotiations both in England and +France, and outrages committed upon our, then, infant government +by the government of France and Great Britain. I had all the +feeling of natural indignation against those great powers who sought +to draw the United States into their controversies, and practice +upon us enormities and outrages that we would not submit to for a +moment in our day. Yet, after a full and careful examination of +all the papers in the case, I became thoroughly satisfied that +these claimants, whatever might be said as to their claims against +the French government, had absolutely no foundation for a claim +against the United States. + +I wrote an adverse report, but it was suppressed in the committee. +Bills for the payment of these claims were presented from time to +time. In 1870 Senator Sumner reported favorably to the Senate a +bill for the purpose from the committee on foreign relations. It +was opposed by Senator Thurman and myself and again laid aside. +On the 14th of December, 1882, the bill was again pressed, the +debate which ensued clearly showing that the United States pressed +these claims against France to the verge of war. + +The whole case is this: Certain depredations were committed by +the French government and by the citizens of France, upon the +citizens of the United States, previous to the beginning of the +present century. The government of the United States did all it +could to secure payment and compensation to its citizens for these +depredations. The French government denied the validity of the +claims, holding, on the other hand, that the government of the +United States had violated the treaties made with it under +circumstances of sacred obligation, that its citizens therefore +were justified in doing what they had done in seizing upon American +vessels, and taking from them goods called contraband of war, and +in committing these depredations. It uniformly justified and +maintained the action of its cruisers in doing these things. In +other words, our claims were repudiated by France, their payment +being refused, and, as we could not force their payment, we simply +abandoned them. Recently they have been referred to the court of +claims, without regard to the lapse of time, and large sums of +money are now being paid by the United States for the depredations +committed by the French nearly one hundred years ago, to descendants, +three generations removed, of merchants and ship owners, who, with +all their losses, enjoyed the most profitable commerce in the +history of our mercantile marine. Their payment is, perhaps, the +most striking evidence of the improvidence of Congress in dealing +with antiquated claims against the government. + +The first year of Buchanan's administration, 1857, will always be +noted as one of great political excitement, of sudden changes and +unexpected results. At its beginning the Democratic party was in +complete possession of all branches of the government. The House +of Representatives, elected in the fall of 1856, had a strong +Democratic majority. The Senate was composed of 37 Democrats, 20 +Republicans and 4 Americans. The Supreme Court was composed of 5 +Democrats from the slave states, and 2 Democrats and 2 Whigs from +the free states. The cabinet of Buchanan had four members from +the southern states and three from the northern. The south had +full control of all departments of the government, with the President +in hearty sympathy with the policy of that section. The condition +of Kansas alone caused it trouble. The firm and impartial course +of Governor Geary had imparted confidence and strength to the Free +State citizens of that territory, who were now in an unquestioned +majority through the large emigration from the north during the +spring of 1857. The doctrine of popular sovereignty could not, +therefore, be relied upon to establish slavery in Kansas, and it +was abandoned. New theories had to be improvised and new agencies +called into action. + +I was present when the oath of office was administered to Mr. +Buchanan, on the 4th of March, 1857. With my strong sympathy for +the Free State people of Kansas, I hoped and believed that he would +give some assurance that the pledges made for him in the canvass +would be carried out, but the statement in his inaugural address, +that the difference of opinion in respect to the power of the people +of a territory to decide the question of slavery for themselves +would be speedily and finally settled, as a judicial question, by +the Supreme Court of the United States, in a case then pending +before it, naturally, excited suspicion and distrust. It was +regarded as a change of position, a new device in the interest of +slavery. In two days after the inauguration, Chief Justice Taney +delivered the opinion of the Supreme Court in the Dred Scott case, +as to the status of negroes in the United States. He said: + +"They had, for more than a century before, been regarded as beings +of an inferior order, and altogether unfit to associate with the +white race, either in social or political relations; and so far +inferior that they had no rights which the white man was bound to +respect, and that the negro might justly and lawfully be reduced +to slavery for his benefit." + +He said negroes "were not intended to be included in the word +'citizens' in the constitution, and therefore could claim none of +the rights and privileges which that instrument provides for and +secures to the citizens of the United States;" and announced as +the opinion of the court that the Missouri Compromise act was not +warranted by the constitution and was therefore void. + +These declarations were in no sense necessary to the decision of +the case before the court, as it was held that Dred Scott was a +resident of Missouri and subject as a slave to the laws of that +state. + +Justices McLean and Curtis dissented from the decision of the court, +and in elaborate opinions refuted, as I think, every position of +the Chief Justice. + +Thus the Kansas question became a political question in the Supreme +Court. At once the south rejected the doctrine of popular sovereignty, +and demanded, as a constitutional right, that slaves moved into a +territory must be protected like other property, whether the people +of the territory wish it or not. This was the first time in our +history when this great tribunal entered into the political arena. +Its action encouraged the south, but produced a strong feeling of +resentment in the north, and widened the breach between the two +great sections of the country. + +Mr. Buchanan, early in his administration, found it necessary to +appoint a Governor of Kansas. He selected Robert J. Walker, of +Mississippi, who had held high positions in the national government, +having been Secretary of the Treasury and Senator of the United +States. He appointed Fred. P. Stanton, of Tennessee, as secretary +of the territory. Mr. Stanton had long been a Member of high +standing of the House of Representatives. Both were southern men +and both wished to see Kansas a slave state, but both were honorable +men who would not seek to gain their ends by dishonest means. +After a careful estimate, made by them, it was believed that there +were, in the territory, 9,000 Free State Democrats, 8,000 Republicans, +6,000 pro-slavery Democrats, and 500 pro-slavery Americans. A +strong effort was made by Governor Walker to induce these elements +to join in a movement for a convention to frame a constitution, +with a view to admit Kansas as a state in the Union. The Free +State men, while anxious for such a result, were not willing to +trust their adversaries with the conduct of such an election, +without some safeguards against the repetition of the frauds and +violence of the previous elections. The result was that only 2,200 +persons took part in choosing delegates to what became the notorious +Lecompton convention. + +Both before and after this so-called election Governor Walker +promised that the constitution, when adopted, should be submitted +to a vote of the people, and he added his assurance that the +President of the United States would insist upon this condition. +On the 12th of July Mr. Buchanan wrote to Governor Walker: + +"On the question of submitting the constitution to the _bona fide_ +resident settlers of Kansas, I am willing to stand or fall. In +sustaining such a principle we cannot fail. It is the principle +of the Kansas-Nebraska bill, the principle of popular sovereignty, +and the principle at the foundation of all popular government. +The more it is discussed, the stronger it will become. Should the +convention of Kansas adopt this principle, all will be settled +harmoniously." + +This promise was soon after violated, and the President declared +in an open letter: + +"At the time of the passage of the Kansas-Nebraska act slavery +existed, and still exists, in Kansas, under the constitution of +the United States. This point has at last been finally decided by +the highest tribunal known to our laws. How it could ever have +been seriously doubted is a mystery." + +It was known that the delegates elected would adopt a pro-slavery +constitution and ask for admission to the Union. It was equally +well known that no such constitution would be adopted by the people +of Kansas. Under these circumstances the President, pressed by +his cabinet, yielded to the demands of the south, violated his +pledges, and supported the convention in the extreme measures +adopted by it. + +In the meantime the Free State party in Kansas, composed of nearly +equal proportions of Republicans and Democrats, was persuaded by +Governor Walker to take part in the regular election for the +territorial legislature. The result was, the Free State party +elected nine of the thirteen councilmen, and twenty-four of the +thirty-nine representatives. This should have settled the Kansas +controversy, and it would have done so on the principle of popular +sovereignty, but a broader constituency in the south demanded that +the doctrine of the Dred Scott case should be applied to and +enforced, not only in Kansas, but in all the states. Henceforth +the Lecompton constitution must be considered, not as a local +question, but as a national one. The imperative issue, as pithily +stated by Lincoln, was, all slave or all free states. The battle +was to commence in Kansas, but was to become national in its scope. + +The constitutional convention met on the 19th of October, 1857, +within two weeks after the election of the legislature, but in its +action little interest was taken, a quorum being preserved with +difficulty. It adopted a pro-slavery constitution, which, it was +well known, if submitted to the people, would be rejected by an +overwhelming majority, and if not submitted would be resisted, if +necessary, by open force. The President, Governor Walker, and all +parties, had promised that the constitution, when framed, would be +submitted to a popular vote. How not to do it, and yet appear to +do it, was a problem worthy of a gang of swindlers, and yet the +feeling was so strong in administration circles, that the plan +devised as below given was cordially approved by the cabinet and +acquiesced in by the President. + +The constitution adopted by the convention provided: "The right +of property is before and higher than any constitutional sanction, +and the right of the owner of a slave to such slave and its increase +is the same and as inviolable as the right of the owner of any +property whatever." Another provision of the constitution was that +it could not be amended until after the year 1864, and even then +no alteration should "be made to affect the rights of property in +the ownership of slaves." + +The election was to be held on December 21, 1857. The people might +vote for the "constitution with slavery" or the "constitution with +no slavery." In either event, by the express terms of the +constitution, slavery was established for a time in Kansas and the +doctrine of the Dred Scott case was to be embodied in our laws. +No opportunity was offered to the people to vote against the +constitution. + +It is difficult to characterize in proper terms the infamy of these +proceedings. The Free State party would take no part in the proposed +election on December 21, and it resulted, for the constitution with +slavery, 6,226 votes, of which 2,720 were proven to be fraudulent; +for the constitution without slavery, 589. Governor Walker promptly +denounced the outrage. He said: "I consider such a submission of +the question a vile fraud, a base counterfeit, and a wretched device +to prevent the people voting even on the slavery question." "I +will not support it," he continued, "but I will denounce it, no +matter whether the administration sustains it or not." + +Mr. Buchanan supported the scheme after the constitution had been +adopted by the convention. The elections in the fall preceding +were favorable to the Democrats, and Mr. Buchanan was naturally +encouraged to hope that his party had regained popular ascendancy, +but the Lecompton juggle created a profound impression in the north, +and divided the Democratic party to a greater extent than did the +Kansas-Nebraska bill, especially in the northwest and in Ohio, +where the feeling of resentment was almost universal. Mr. Douglas, +the great leader for the repeal of the Missouri Compromise, took +immediate ground against the pro-slavery plan, and protested to +the President against it. An open breach occurred between them. + +When Congress assembled, the Lecompton scheme became the supreme +subject for debate. Mr. Douglas assumed at once the leadership of +the opposition to that measure. He said: "Up to the time of +meeting of the convention, in October last, the pretense was kept +up, the profession was openly made, and believed by me, and I +thought believed by them, that the convention intended to submit +a constitution to the people, and not to attempt to put a government +into operation without such a submission." But instead of that, +"All men must vote for the constitution, whether they like it or +not, in order to be permitted to vote for or against slavery." +Again he said: "I have asked a very large number of the gentlemen +who framed the constitution, quite a number of delegates, and still +a larger number of persons who are their friends, and I have received +the same answer from every one of them. . . . They say if they +allowed a negative vote the constitution would have been voted down +by an overwhelming majority, and hence the fellows should not be +allowed to vote at all." He denounced it as "a trick, a fraud upon +the rights of the people." + +Governor Walker declared: "I state it as a fact, based on a long +and intimate association with the people of Kansas, that an +overwhelming majority of that people are opposed" to the Lecompton +constitution, "and my letters state that but one out of twenty of +the press of Kansas sustains it. . . . Any attempt by Congress to +force this constitution upon the people of Kansas will be an effort +to substitute the will of a small minority for that of an overwhelming +majority of the people." + +On the 28th of January, 1858, during the debate on the Lecompton +constitution, I made an elaborate speech, entering fully into the +history of that constitution and the events that preceded it, and +closed as follows: + +"In conclusion, allow me to impress the south with two important +warnings she has received in her struggle for Kansas. One is, that +though her able and disciplined leaders on this floor, aided by +executive patronage, may give her the power to overthrow legislative +compacts, yet, while the sturdy integrity of the northern masses +stands in her way, she can gain no practical advantage by her well- +laid schemes. The other is, that while she may indulge with impunity +the spirit of filibusterism, or lawless and violent adventure, upon +a feeble and distracted people in Mexico and Central American, she +must not come in contact with that cool, determined courage and +resolution which forms the striking characteristic of the Anglo- +Saxon race. In such a contest, her hasty and impetuous violence +may succeed for a time, but the victory will be short-lived and +transient, and leave nothing but bitterness behind. Let us not +war with each other; but with the grasp of fellowship and friendship, +regarding to the full each other's rights, and kind to each other's +faults, let us go hand in hand in securing to every portion of our +people their constitutional rights." + +I may as well here briefly follow the progress and end of the Kansas +controversy. Mr. Stanton, the acting governor in the absence of +Governor Walker, convened an extra session of the territorial +legislature, in which the Free State men had a majority. The +legislature provided for an election to be held January 4, 1858, +at which a fair vote might be taken on the constitution. At this +election the vote stood: For the constitution with slavery, 138; +for the constitution without slavery, 24; against the constitution, +10,226. + +Notwithstanding this decisive evidence of the opposition to the +Lecompton constitution by the people of Kansas, Mr. Buchanan sent +a copy of it to Congress, and, recommending the admission of Kansas +under that organic act, said: + +"It has been solemnly adjudged, by the highest judicial tribunal +known to our laws, that slavery exists in Kansas by virtue of the +constitution of the United States. Kansas is therefore at this +moment as much a slave state as Georgia or South Carolina." + +During the controversy Gen. Denver, a conservative Democrat, a +native of Virginia, long a resident of Ohio and a representative +from California in the 34th Congress, was appointed Governor of +Kansas. His predecessors, four of his own party, Reeder, Shannon, +Walker and Stanton, had been either removed or compelled to resign, +every one refusing to execute the extreme pro-slavery policy of +the President. His efforts to secure justice to the citizens of +Kansas would in all probability have led to his removal, but the +march of events withdrew the question involved from the people of +Kansas to the halls of Congress. The policy of the administration +was driving a wedge into the Democratic party. The bill for the +admission of Kansas under the Lecompton constitution passed the +Senate by a vote of 33 yeas to 25 nays, four northern Democrats +and two southern Americans voting with the Republicans against it. + +In the House of Representatives, composed of 128 Democrats, 92 +Republicans and 14 Americans, the bill was defeated by the adoption +of an amendment which provided that the Lecompton constitution +should be submitted to a vote of the people of Kansas, but this +amendment was disagreed to by the Senate, and the disagreement was +referred to a committee of conference. The result was the adoption +of a substitute known as the English bill. This bill, though +faulty, and partisan, provided for the admission of Kansas under +the Lecompton constitution, but provided also for a submission of +the English bill to a vote of the people of Kansas. On the 2nd of +August a vote was taken in Kansas, and 11,300, out of a total vote +of 13,088, were cast against the English proposition. Thus the +Lecompton constitution and the English bill were defeated, the +exclusion of slavery made absolute, and the State of Kansas admitted +into the Union as a free state, under a constitution approved by +the people, but not until January 29, 1861. + +This memorable result was the turning point of the slavery controversy. +The people of the south hastened preparations for a dissolution of +the Union and a civil war. The Confederate congress, meeting four +days later, on February 9, elected Jefferson Davis as its president, +he having resigned as United States Senator, January 21, 1861, +eight days before Kansas was admitted to the Union. + +I have given much space to this Kansas controversy, for I wish to +impress upon the readers of this volume that the war was not caused +by agitation for the abolition of slavery, but by aggressive measures +for the extension of slavery over free territory. A large and +influential class of southern men were born politicians, and were +mainly slaveholders. They had, from the beginning of the government, +a large influence, and held more public offices of chief importance +than their northern associates. They were constantly complaining +of opinions expressed by a comparatively few Abolitionists against +slavery, while the great body of the north were either indifferent +to or sympathized with them in their opposition to the Abolitionists. + + +CHAPTER VII. +RECOLLECTIONS OF THE FINANCIAL PANIC OF 1857. +Its Effect on the State Banks--My Maiden Speech in Congress on +National Finances--Appointed a Member of the Committee on Naval +Affairs--Investigation of the Navy Department and its Results--Trip +to Europe with Mrs. Sherman--We Visit Bracklin's Bridge, Made Famous +by Sir Walter Scott--Ireland and the Irish--I Pay a Visit to +Parliament and Obtain Ready Admission--Notable Places in Paris +Viewed With Senator Sumner--The Battlefield of Magenta--Return Home. + +In the summer of 1857 there occurred one of those periodical +revulsions which seem to come after a term of apparent prosperity. +On the 24th of August the Ohio Life Insurance & Trust Company +failed. That single event, in itself unimportant, indicated an +unhealthy condition of trade, caused by reckless speculation, high +prices, the construction of railroads in advance of their need, a +great increase of imports, and the excessive development of cities +and towns. All credits were expanded. The immediate results of +the panic were the suspension of credits, the diminution of imports, +the failure of banks, and the general or partial suspension or +lessening of all industries. The revenues of the government were +greatly diminished. + +On the 1st of July, 1857, the balance in the treasury was $17,710,000. +On the 1st of July, 1858, the balance was reduced to $6,398,000, +and during the year preceding, the United States borrowed $10,000,000. +On the 1st of July, 1859, the surplus was reduced to $4,320,000, +and during the year preceding the United States borrowed $20,774,000. +This sudden change in the financial condition of the treasury was +an indication of a like or greater change in the condition of every +person engaged in productive industries. + +The panic especially affected the state banks. These banks were +authorized by the laws of several states to issue notes as money +payable on demand, with no common system or methods of redemption, +and varying in value according to the solvency of the banks issuing +them. The banks in a few of the states maintained their notes at +par, or at a small discount, but the great body of the notes could +circulate only in the states where issued, and then only because +their people could get no other money in exchange for their products. +The necessities created by the Civil War compelled the United States +to borrow large sums, and to aid in this a national currency was +provided, concerning which a statement of the measures adopted will +be made hereafter. It is sufficient here to state that the national +currency adopted proved one of the most beneficial results of the +war. + +The financial stringency of 1857 led to a careful scrutiny of +appropriations for the support of the government. + +On the 27th of May, 1858, I expressed my views in respect to the +expenditures of the United States. This speech was the first effort +I made in Congress to deal with the finances of the national +government. In the previous Congresses I had devoted my time to +the struggle in Kansas. At the meeting of the 35th Congress, I +naturally turned to the condition of the finances, then the paramount +subject of interest in the country, and, especially in Ohio, devoting +most of my time to a careful study thereof. The speech referred +to on national finances was the result of much labor, and I believe +it will bear favorable scrutiny even at this late day. It certainly +attracted the attention of my colleagues, and no doubt led to my +transfer, at the next Congress, to the committee of ways and means. + +In this speech I state fully the increase of expenditures and the +diminution of the revenues, and the then condition of the treasury. +I quote as follows: + +"And yet, sir, for this alarming condition of the public finances, +the administration has no measures of relief except loan bills and +paper money in the form of treasury notes. No provision is made +for their payment; no measure of retrenchment and reform; but these +accumulated difficulties are thrust upon the future, with the +improvidence of a young spendthrift. While the secretary is waiting +to foresee contingencies, we are prevented by a party majority from +instituting reform. If we indicate even the commencement of +retrenchment, or point out abuses, on this side of the House, we +are at once assailed by members of the committee of ways and means." + +I cited the abuses and usurpations of the executive departments in +diverting specific appropriations to purposes not authorized by +law. I said: "The theory of our government is, that a specific +sum shall be appropriated by a _law_ originating in this House, +for a specific purpose, and within a given fiscal year. It is the +duty of the executive to use that sum, and no more, especially for +that purpose, and no other, and within the time fixed." + +I pointed out cases where the departments assumed the power to +transfer appropriations made for one purpose, to other purposes in +the same department. Another abuse by the executive departments +was the habit of making contracts in advance of appropriations, +thus, without law, compelling Congress to sanction them or violate +the public faith. All these evils have since been remedied by +restrictive legislation. The habit of the Senate to load down +appropriation bills with amendments already refused by the House +of Representatives, and then insist that, if not agreed to, the +bill would fail, was more frequent then than now, but under the +practice now established an amendment finally disagreed to by either +House is abandoned. + +An illustration of the former practice in the Senate occurred in +the 36th Congress, when I was chairman of the committee on ways +and means. An appropriation bill was loaded down with amendments, +among them an appropriation of $500,000 each for the construction +of public buildings in Charleston and New Orleans. The amendments +were disagreed to and referred to a committee of conference, of +which Senator Toombs was a member. His first expression in the +committee was that the House must agree to the items for Charleston +and New Orleans or the bill would fail. I promptly answered that +I would report what he said to the House, and _the bill would fail_. +He said nothing further, the conference agreed, and the bill passed +without any mention of Charleston or New Orleans. Even now the +abuse I refer to sometimes occurs, but the general rule and practice +is to exclude any item of an appropriation bill not freely agreed +to by both Houses. + +It was generally agreed that the views expressed by me on the 27th +of May were sound in principle, but the strong partisan feeling +that ran through the speech weakened its effect. I insert the last +two paragraphs: + +"But, sir, I have no hope, while this House is constituted as it +is now, of instituting any radical reform. I believe that the +House of Representatives should be in opposition to the President. +We know the intimate relations made by party ties and party feelings. +We know that with a party House, a House a majority of whose Members +are friends of the President, it is impossible to bring about a +reform. It is only by a firm, able, and determined opposition-- +not yielding to every friendly request, not yielding to every urgent +demand, not yielding to every appeal--that we can expect to reform +the abuse in the administration of the government. + +"At the beginning of this session, I did hope that a majority of +this House would compose such an opposition; and while on the one +hand it crushed the unholy attempt to impose an odious constitution +--by force, or with threats or bribes--upon a free people, it would +be prepared to check the reckless extravagance of the administration +in the disbursement of the public funds. But the power of party +ties and the executive influence were too potent. We can only look +now to the virtue and intelligence of the people, whose potent will +can overthrow Presidents, Senators, and majorities. I have an +abiding hope that the next House of Representatives will do what +this should have done, and become, like its great prototype, the +guardian of the rights and liberties of the people." + +At the beginning of the 35th Congress I was appointed by Speaker +Orr a member of the committee on naval affairs, with Mr. Bocock as +chairman. Among the subjects referred to the committee was the +capture, by Commodore Paulding of the United States navy, of William +Walker, engaged in an armed foray against Nicaragua. It was fully +considered, and on the 3rd of February, 1858, the majority of the +committee, through Mr. Bocock, made a full report, accompanied by +the following resolutions: + +"_Resolved_, That the act of Hiram Paulding, a captain of the United +States navy, in arresting General William Walker, was not authorized +by the instructions which had been given him from the navy +department. + +"_Resolved_, That while we have no reason to believe that the said +Paulding acted form any improper motives or intention, yet we regard +the act in question as a grave error, and deserving, for the reason +already given, the disapproval of the American Congress." + +By direction of the minority of the committee I submitted a minority +report as a substitute, as follows: + +"_Resolved_, That Commodore Hiram Paulding, in arresting William +Walker and his associates, and returning them to the jurisdiction +of the United States, acted within the spirit of his orders, and +deserves the approbation of his country." + +It appeared, from the documents submitted, that in September, 1857, +Walker was fitting out, within the limits of the United States, a +military expedition against the Republic of Nicaragua, that on the +18th of September, Lewis Cass, Secretary of State, issued a circular +letter, warning all persons against setting on foot such expeditions, +and urging all officers of the United States to enforce the provisions +of the law cited by him, to prevent such expeditions "so manifestly +prejudicial to the national character and so injurious to the +national interests." + +A copy of this circular was transmitted to Commodore Paulding, for +his guidance, by the Secretary of the Navy, and he was required to +regard the instruction contained in it as addressed to himself. +Commodore Chatard was suspended for failing to arrest Walker within +the port of San Juan. Commodore Paulding arrived at San Juan on +the 6th day of December. Walker and his men were in sight on shore, +at Punta Arenas, opposite San Juan. This point, though within the +limits of Nicaragua, has been successively claimed and occupied by +Costa Rica, Nicaragua and the so-called Mosquito Kingdom, under +British protection. It was an almost deserted point, to which a +British subject had set up a doubtful title, founded upon a purchase +from a pilot of the port of San Juan. Its occupants were engaged +as a military force, and were then waging war against the existing +government of Nicaragua--a government with which ours was at peace, +and one so weak that it was inhuman to fight it. Although freshly +landed from our shores, in violation of our laws, and controlling +no spot except that they occupied--receiving, so far as we know, +no accession or aid from the natives of the country, they issued +orders and manifestoes headed; + + "Headquarters Army of Nicaragua, + Punta Arenas, December 2, 1857." + +Their leader signed these orders: + + "William Walker, + Commander-in-Chief, Army of Nicaragua." + +There was no doubt that the expedition was the very one denounced +by the Secretary of State in the circular, and by the Secretary of +the Navy in his orders, for Walker and his men sought no disguise. + +Under these circumstances, Commodore Paulding arrested Walker and +his men and returned them to the jurisdiction of the United States. +This brief and imperfect sketch of the voluminous majority and +minority reports of the committee will convey but a faint idea of +the excitement created by this arrest. An attempt was made to +censure Commodore Paulding, but it utterly failed. The purpose of +Walker was to seize Nicaragua, adopt slavery and convert the Central +American states into slaveholding communities, and thus strengthen +slavery in the United States. It was the counterpart of the +movements in Kansas, and was supported by powerful influence in +the southern states. + +Another investigation of great importance was ordered by the House +of Representatives, upon the following resolution introduced by me +on the 18th of January, 1859: + +"Whereas, D. B. Allen, a citizen of the State of New York, specifically +charges that certain officers in the navy department, in awarding +contracts for the construction of vessels of war of the United +States, have been guilty of partiality, and of violation of law +and their public duty: and whereas, grave charges have been made +that money appropriated for navy yards and for the repair of vessels +of the United States, has been expended for partisan purposes, and +not for the purposes prescribed by law: Therefore, + +"_Resolved_, That a committee of five members be appointed to +examine, 1. Into the specifications and bids for, and the terms +of, the contracts for the work and labor done, or materials furnished +for the vessels of the United States, constructed, or in process +of construction or repair, by the United States, since the 4th day +of March, 1857, and the mode and manner of awarding said contracts, +and the inducements and recommendations influencing such awards. +2. Into the mode and manner, and the purpose, in which the money +appropriated for the navy and dock yards, and for the repair and +increase of vessels, has been expended. That said committee have +power to send for persons and papers, and have leave to report by +bill or otherwise." + +This investigation occupied most of the remaining session of that +Congress. The committee of five was composed of Messrs. Sherman, +Bocock, Ritchie, Groesbeck and Ready, three Democrats and two +Republicans, of which I was chairman. The committee took a mass +of testimony, disclosing abuses and frauds of a startling character, +covering over 1,000 printed pages. The majority of the committee, +Messrs. Bocock, Groesbeck and Ready, submitted a report condemning +the glaring abuses proven, and, while reporting the inefficiency +and incompetency of subordinate officers and employees, yet declared +that nothing had been proven which impeached the personal or official +integrity of the Secretary of the Navy. They proposed the following +resolutions: + +"1. _Resolved_, That the testimony taken in this investigation +proves the existence of glaring abuses in the Brooklyn navy yard, +and such as require the interposition of legislative reform; but +it is due to justice to declare that these abuses have been slowly +and gradually growing up during a long course of years, and that +no particular administration should bear the entire blame therefor. + +"2. _Resolved_, That it is disclosed, by the testimony in this +case, that the agency for the purchase of anthracite coal for the +use of the navy has been, for some time past, in the hands of a +person wholly inefficient and grossly incompetent, and that reform +is needed in the regulations which exist on that subject; but there +is no proof which traces any knowledge of such inefficiency and +incompetency to the responsible authorities in Washington, nor any +which shows that the need of reform grows especially out of any +act of theirs; but, on the contrary, it is expressly proven that +the supply of coal for the naval service has been purchased during +this administration upon terms relatively as favorable as ever +heretofore. + +"3. _Resolved_, That while we could never sanction or approve any +arrangement, on the part of an officer of the government, which, +under pretense of making contracts for supplies, was designed to +confer especial and exclusive favor upon individuals, yet, in the +contract entered into in September, 1858, between the navy department +and W. C. N. Swift, for the supply of live oak to said department, +it is clearly proven by the testimony that, if the Secretary of +the Navy did contemplate any favor to said Swift, he did not design +to bestow it to the detriment of the government, but that in all +he did in this matter he kept always in view the good of the public +and the interests of the service. + +"4. _Resolved_, That in the letting of the contracts for the +construction of the steam machinery for the vessels of the navy +during the present administration, nothing has been shown which +calls for the interposition of the Congress of the United States; +but it is manifest that the present head of the navy department +has displayed a very laudable zeal to secure the greatest amount +of speed and efficiency attainable for said vessels. + +"5. _Resolved_, That nothing has been proven in this investigation +which impeaches, in any way, the personal or official integrity of +the Secretary of the Navy." + +The minority report was made by Ritchie and myself on the 24th of +February, 1859, in which we recommended the following resolutions: + +"_Resolved_, That the Secretary of the Navy has, with the sanction +of the President, abused his discretionary power in the selection +of a coal agent and in the purchase of fuel for the government. + +"_Resolved_, That the contract made by the Secretary of the Navy, +under date of September 23, 1858, with W. C. N. Swift, for the +delivery of live oak timber, was made in violation of the law, and +in a manner unusual, improper, and injurious to the public service. + +"_Resolved_, That the distribution, by the Secretary of the Navy, +of the patronage in the navy yard among Members of Congress was +destructive of discipline, corrupting in its influence, and highly +injurious to the public service. + +"_Resolved_, That the President and Secretary of the Navy, by +receiving and considering the party relations of bidders for +contracts with the United States, and the effect of awarding +contracts upon pending elections, have set an example dangerous to +the public safety and deserving the reproof of the House. + +"_Resolved_, That the appointment, by the Secretary of the Navy, +of Daniel B. Martin, chief engineer, as a member of the board of +engineers, to report upon proposals for constructing machinery for +the United States, the said Martin at the same time being pecuniarily +interested in some of said proposals, is hereby censured by this +House." + +No action was taken on these reports during that session, which +terminated on the 4th of March; but in the succeeding Congress the +resolutions of the minority were reported favorably from the +committee on the expenditures of the navy department, and, after +debate, were adopted, a separate yea and nay vote being taken on +each resolution, and the vote generally being 119 in favor of the +resolution and 60 against, a large number of Democrats voting for +each resolution. + +This investigation, and the action of the House of Representatives +upon it, led to radical reforms in the purchase of supplies in the +navy department, and stamped with deserved censure the Secretary +of the Navy, and his subordinates, who participated in his action. + +In the spring of 1859, Mrs. Sherman and I started on my first trip +to Europe, on the steamer "Vanderbilt," without any definite route +or plan. Fortunately, we formed on shipboard some pleasant +acquaintances, among others Judge Harris of the Supreme Court of +New York, afterwards Senator of the United States, and his wife. +Each had children by a former marriage, who had arrived at or near +manhood or womanhood, and all were pleasant traveling companions. +Mr. Platt and his wife, of New York, a young married couple, were +of the party. We were fortunate in the weather and the sea. I +had often encountered the waves of Lake Erie, but the ocean was to +me the great unknown, and I imagined that from its magnitude, its +waves would be in proportion to its size, but, instead, the waves +of the Atlantic were a gentle cradle compared with the short and +chopping movement of the lake. Since then I have crossed the ocean +many times, but never was sea sick. We thought the voyage of eleven +days a brief one, but now it is reduced to six or seven days, on +vessels much greater and stronger. We landed safely at Southampton +late in the evening. Many of the passengers left immediately for +London, but our party, with others, went to the hotel. We seemed +to overcrowd the capacity of the place. One of our passengers, a +young gentleman from Baltimore, said to me he would drive out those +Englishmen, who were quietly enjoying themselves in the waiting +room. He had been a quiet gentlemanly passenger, but he changed +his tone and manner, was boisterous in his talk and rather rude. +One by one the Englishmen departed, slamming the door after them, +casting a sour look at their persecutor, but he was not disturbed +until "the coast was clear," and then quieting down in his usual +manner he said he knew these Englishmen, and thought he would give +them a chance to abuse the d----d Americans. After long waiting +we had a good supper. + +On the next day, or the day following, we visited the Isle of Wight, +and what is misnamed the "New Forest"--which is very old instead +of new, and is an open park instead of a forest--in the neighborhood. +Like most travelers we soon went to London. This great city +impressed me more by the association of great men and women who +had lived and died in it than by the grandeur of its buildings and +public works. Every street and many houses in it recalled the +names of persons whose writings I had read, and of others whose +deeds made them immortal. As Parliament was not in session we +shortened our visit in London until our return. My trip to Scotland +was especially interesting. Mrs. Sherman, a daughter of Judge +Stewart, was in her face and affinities a thorough Scotch woman, +though her ancestors for several generations were born in America. +She was familiar with Scottish history, and with the geography of +Scotland. Our visit to Edinburgh and its environs was to her like +a return to familiar scenes. In our slow progress towards the +lakes we stopped at Callender over Sunday. After looking into the +well-filled church we started for Bracklinn bridge, made famous in +Scott's "Lady of the Lake." "Bracklinn's thundering wave" is a +beautiful cascade made at a place called the Bridge of Bracklinn, +by a mountain stream called the Keltie, about a mile from the +village of Callender, in Mentieth. Above a chasm where the brook +precipitates itself from a height of at least 50 feet, there is +thrown, for the convenience of the neighborhood, a rustic foot +bridge, of about three feet in breadth, and without ledges, which +is scarcely to be crossed by a stranger without awe and apprehension. +We were told it was but a short walk, a mile or two, but we soon +found that Scottish miles were very long. On the way we encountered +an old woman, dressed in Scotch plaid, of whom we inquired the way +to Bracklinn bridge. She pointed out the way, and in return asked +us where we lived. We told her the United States. She replied, +in language we could hardly understand, "Ah, ye maun come a lang +way to spay it." She then told us where to leave the road and how +to find the bridge. There was nothing remarkable at the bridge, +nothing to justify "But wild as Bracklinn's thundering roar," but +the genius of Sir Walter invested it with his glamour. + + "It had much of glamour might + To make a lady seem a knight." + +The lakes of Scotland we would call bays. The waters of the ocean +fill these deep depressions between high hills. A boat ride over +these interlocked waters was pleasing, but the views did not impress +me like the lakes in Switzerland in the midst of high mountains, +nor did they compare with the grandeur of the Yellowstone Lake, +6,000 feet above the sea, with surrounding mountains rising to the +height of 12,000 feet, and covered with snow. We were much pleased +with Scotland and its people until we arrived at Glasgow. Here we +walked about the city. It seemed to be crowded with discontented, +unhappy people, with sad faces and poorly clad. We were told not +to go into certain portions of the city, as we might be insulted. + +We soon left Glasgow for Belfast and visited different parts of +Ireland, and especially the city of Cork, and Lake Killarney. The +southern part of Ireland was very beautiful, the herbage was fresh +and green, and the land productive. The great drawback was the +crowds of beggars, who would surround us wherever we went, soliciting +alms, but they were generally good humored. I saw little of the +disposition to fight attributed to them. At a subsequent visit I +saw much more of Ireland and the Irish people, but on this, my +first visit, I left with a very kindly impression of the country +and the people. We have more people of Irish descent in the United +States than now live in Ireland, and they have done their full part +in our development, not only as laborers, but in all the walks and +professions of life. They are heartily welcomed in our midst. If +all the discontented people of Ireland would migrate to the United +States we would welcome them if they would leave their Irish vs. +English politics behind them. We have enough possible points of +controversy on this continent with Great Britain, without importing +from that country old controversies that have been the occasion of +wars and rumors of war for centuries. + +We made but a short stay in Dublin and crossed the channel to +Caernarvon. Here we took the old tally-ho coach. Despite all that +is said about railroads and steamboats, I believe in the old- +fashioned stage coach, and especially in the one in which we crossed +the hills of Wales, in full view of Mount Snowdon. We remained +over Sunday in a village on the way, inquired for the church, and +were shown to a very pretty church building near by. When we +entered we found perhaps ten or fifteen persons, mostly women. +The pastor, with an assistant, soon entered, and services commenced. +The pastor read his part, and the assistant led, and practically +made, the responses. The singing was led by the assistant and +shared in by the few women present. The sermon was short and +lifeless and the entire service--though read from the Book of Common +Prayer, as fine a model of impressive English as exists--was +spiritless. When we left the church we met lines of well-dressed, +but plain, proper men, women and children in Sunday garb. I inquired +where these people came from, and was informed they were Methodists +on the way home from their meeting house. This settled the question +with me. The church I attended was the "established church," +supported by taxes on all the people, and the Methodist meeting +was the church of the people, supported by their voluntary +contributions. How such a policy could have been sustained so long +was beyond my comprehension. Our policy of respect and toleration +for all religious sects, but taxes for none, is a better one. + +Our party, still consisting of Judge Harris and family, Mr. Platt +and wife, and Mrs. Sherman and myself, visited several of the +central counties and towns of England, chiefly the towns of Warwick, +Stratford, Kenilworth and Leamington. This is well trodden ground +for tourists, and I need not repeat the many descriptions of +interesting places and the historic names and events attached to +them. + +When we returned to London, I visited the courts of law, Westminster +Abbey, and the new Parliament House. I had no difficulty in gaining +free access to the gallery of the House of Commons by stating that +I was a Member of the House of Representatives. Though I had +letters of introduction to members of Parliament I did not present +them. Judge Harris was greatly interested in the proceedings of +the courts of London, while I wandered through every part of the +great city. We attended, by invitation, a dinner given by the +Goldsmith's Guild, and accepted some invitations, among them that +of Mr. Morgan, the leading American banker in London. + +Our congenial party then separated with mutual regret, Judge Harris +going to the Rhine and Mrs. Sherman and I to Paris. Here we remained +some time. Senator Sumner, not yet recovered from the blows of +Brooks, had been some time in Paris and accompanied us to many of +the noted places in that city--among them I remember the grave of +Lafayette. + +Our visit was during the Franco-Italian-Austrian War. I was anxious +to reach the seat of war. On the way we made hurried visits to +Geneva, and Lake Leman. After traversing this lake we took the +coach over the Alps, on the road to Milan, stopping several times +on the way. We passed over the battle field at Magenta but a few +days after the battle was fought. We saw there the signs of +destructive war. The killed had been buried and the wounded were +in hospitals, but the smell of dead horses poisoned the air, and +the marks of the battle were on almost every house. We pushed on +to Milan and were comfortably quartered. The city was full of +soldiers on the way to the army to the eastward. It was then known +that a battle was about to be fought at Solferino. I was very +anxious to witness a battle. General Crittenden, of the United +States army, was attached as an aid to the French army, and I sought +the same facility, but the authorities would not permit it. I was +assured that my horse would be taken from me, especially as I could +not speak French, and that I would be treated as a spy unless I +was formally attached to a particular command. I therefore gave +up my contemplated trip and awaited the battle, which occurred in +a day or two. I then returned to Switzerland by the Simplon Pass, +and visited Berne, Luzerne, and Neuchâtel. From thence I returned +to London and soon after embarked on the "Vanderbilt" for home. + + +CHAPTER VIII. +EXCITING SCENES IN CONGRESS. +I am Elected for the Third Term--Invasion of Virginia by John Brown +--His Trial and Execution--Spirited Contest for the Speakership-- +Discussion over Helper's "Impending Crisis"--Angry Controversies +and Threats of Violence in the House--Within Three Votes of Election +as Speaker--My Reply to Clark's Attack--Withdrawal of my Name and +Election of Mr. Pennington--Made Chairman of the Committee of Ways +and Means--President Buchanan Objects to Being "Investigated"-- +Adoption of the Morrill Tariff Act--Views Upon the Tariff Question +--My Colleagues. + +On the 29th of July, 1858, I received the congressional nomination +for my third term without opposition, and, in October following, +was elected as a Member of the 36th Congress, by a majority of +2,331 over S. J. Patrick, Democrat. + +The memorable campaign in Illinois in that year excited profound +interest throughout the United States, the debate between Douglas +and Lincoln attracting universal attention. The result was favorable +to Douglas, and the legislature re-elected him Senator, but Mr. +Lincoln attained such distinction and prominence as to place him +at once in the position of a formidable candidate for the presidency +in 1860. This debate made it clear that the struggle between free +and slave institutions was to be continued and to become the +controlling issue of the future. + +The murder of Broderick by Terry, in California, on the 13th of +September, 1859, under color of a duel, excited profound interest +and made that state Republican. The election of a governor in +Ohio, in the fall of that year, preceded by a debate of much interest +between William Dennison, the Republican candidate, and Judge +Ranney, the Democratic candidate, added greatly to the political +excitement then existing, and ended in the election of Mr. Dennison. +A few days after this election--on the 17th of October--the invasion +of the State of Virginia by John Brown startled the country, and, +more than all other causes, aroused the southern people to a state +of great excitement, amounting to frenzy. Brown, with a few +followers of no distinction, captured the United States arsenal at +Harper's Ferry, took possession of the bridge which crosses the +Potomac, fortifying it with cannon, stopped trains, cut telegraph +wires, killed several men, and seized many prominent citizens, +holding them as hostages. Wild reports were circulated of a rise +of the negroes in the neighborhood, the uprising accompanied by +all the horrors of a servile war, and a general alarm prevailed +throughout the State of Virginia and the south. The insurrection +was, however, speedily suppressed, mainly by the state militia, +and the few insurgents not killed were captured by United States +marines under Colonel Robert E. Lee, soon afterwards to be commander- +in-chief of the rebel forces in the Civil War. + +Brown was tried for murder and executed. This foolish and criminal +invasion was the work of a fanatic who all his lifetime had been +a violent opposer of slavery, and who while in Kansas had participated +more or less in the Osawatamie murders. His son was killed by the +"border ruffians" near his home in Kansas, for which a fearful +revenge was taken upon the murderers. Brown, having always been +an Abolitionist, and being crazed by these events, believed it his +duty to wage a relentless war against slavery, and, with the courage +but shortsightedness of a fanatic, and with the hope of the resistance +of the slaves of the south, undertook this wild scheme to secure +their freedom. + +Under such exciting conditions Congress convened on the 5th day of +December, 1859, divided politically into 109 Republicans, 101 +Democrats and 27 Americans. No party having a majority, it was +feared by some that the scenes of 1855, when Banks was elected +speaker only after a long struggle, would be repeated. That contest +was ended by the adoption of the plurality rule, but in this case +a majority could not agree upon such a rule, and the only possible +way of electing a speaker was by a fusing of Members until a majority +voted for one person. + +It was well understood that the Republican vote would be divided +between Galusha A. Grow and myself, and it was agreed between us +that whichever received a majority of the Republican vote should +be considered as the nominee of that party. On the first vote for +speaker, Thomas S. Bocock, of Virginia, the Democratic candidate, +received 86 votes, I received 66, Galusha A. Grow 43, and 21 +scattering. Mr. Grow then withdrew his name. On the same day John +B. Clark, of Missouri, offered this resolution: + +"Whereas certain Members of this House, now in nomination for +speaker, did indorse and recommend the book hereinafter mentioned, + +"_Resolved_, That the doctrine and sentiments of a certain book, +called 'The Impending Crisis of the South--How to meet it,' purporting +to have been written by one Hinton R. Helper, are insurrectionary +and hostile to the domestic peace and tranquility of the country, +and that no Member of this House who has indorsed and recommended +it, or the compend from it, is fit to be speaker of this House." + +In the absence of rules, Mr. Clark was allowed to speak without +limit and he continued that day and the next, reading and speaking +about the Helper book. John A. Gilmer, of North Carolina, offered +as a substitute for the resolution of Mr. Clark a long preamble +closing with this resolution: + +"_Therefore resolved_, That, fully indorsing these national +sentiments, it is the duty of every good citizen of this Union to +resist all attempts at renewing, in Congress or out of it, the +slavery agitation, under whatever shape and color the attempt may +be made." + +A motion was made to lay both resolutions on the table, and was +lost by a tie vote of 116 yeas and 116 nays. In the absence of +rules a general debate followed, in which southern Members threatened +that their constituents would go out of the Union. The excitement +over the proposition to compile a political pamphlet, by F. P. +Blair, an eminent Democrat and slaveholder, from a book called "The +Impending Crisis" written and printed by a southern man, seemed so +ludicrous that we regarded it as manufactured frenzy. After John +S. Millson, of Virginia, a conservative Democrat, who was opposed +to the introduction of the Clark resolution, had exhibited unusual +feeling, I said: + +"I have until this moment regarded this debate with indifference, +because I presumed it was indulged in for the purpose of preventing +an organization. But the manner of the gentleman from Virginia, +my respect for his long experience in this House, my respect for +his character, and the serious impression which this matter seems +to have made upon his mind, induce me to say a few words. I ask +that the letter which I send up may be read." + +The following letter was thereupon read from the clerk's desk: + + "Washington City, December 6, 1859. +"Dear Sir:--I perceive that a debate has arisen in Congress in +which Mr. Helper's book, the 'Impending Crisis,' is brought up as +an exponent of Republican principles. As the names of many leading +Republicans are presented as recommending a compendium of the +volume, it is proper that I should explain how those names were +obtained in advance of the publication. Mr. Helper brought his +book to me at Silver Spring to examine and recommend, if I thought +well of it, as a work to be encouraged by Republicans. I had never +seen it before. After its perusal, I either wrote to Mr. Helper, +or told him that it was objectionable in many particulars, to which +I adverted; and he promised me, in writing, that he would obviate +the objections by omitting entirely or altering the matter objected +to. I understand that it was in consequence of his assurance to +me that the obnoxious matter in the original publication would be +expurgated, that Members of Congress and other influential men +among the Republicans were induced to give their countenance to +the circulation of the edition so to be expurgated. + + "F. P. Blair, + "Silver Spring. +"Hon. John Sherman." + +I then continued: + +"I do not recollect signing the paper referred to; but I presume, +from my name appearing in the printed list, that I did sign it. +I therefore make no excuse of that kind. I never read Mr. Helper's +book, or the compendium founded upon it. I have never seen a copy +of either. And here, Mr. Clerk, I might leave the matter; but as +many harsh things have been said about me, I desire to say that +since I have been a Member of this House, I have always endeavored +to cultivate the courtesies and kind relations that are due from +one gentleman to another. I never addressed to any Member such +language as I have heard to-day. I never desire such language to +be addressed to me, if I can avoid it. I appeal to my public +record, during a period of four years, in this body; and I say not +that there is not a single question agitating the public mind, not +a single topic on which there can be sectional jealousy or sectional +controversy, unless gentlemen on the other side of the House thrust +such subjects upon us. I repeat, not a single question. We have +pursued a course of studied silence. It is our intention to organize +the House quietly, decently, in order, without vituperations; and +we trust to show to Members on all sides of the House that the +party with which I have the honor to act can administer this House +and administer this government without trespassing upon the rights +of any." + +Soon after, in answer to an inquiry from Shelton F. Leake, of +Virginia, I said: + +"Allow me to say, once for all, and I have said it five times on +this floor, that I am opposed to any interference whatever of the +people of the free states, with the relation of master and slave +in the slave states." + +This was followed by a heated debate, the manifest purpose of which +was to excite sectional animosity, and to compel southern Americans +to co-operate with the Democratic Members in the election of a +Democrat for speaker. The second ballot, taken on the close of +the session of December 8, exhibited no material change except that +the Republican vote concentrated on me. I received 107 votes, Mr. +Bocock 88, Mr. Gilmer 22, and 14 scattering. + +The debate continued and was participated in by my colleague, S. +S. Cox, who asked me about the fugitive slave law. I declined, as +I had before, to answer any interrogatories and said: "I will +state to him, and to gentlemen on the other side of the House, that +I stand upon my public record. I do not expect the support of +gentlemen on that side of the House, who have, for the last four +years, been engaged in a series of measures--none of which I approve. +I have no answers to give to them." + +The third ballot produced no material change. I received 110, +Bocock 88, Gilmer 20, and 13 scattering. + +In the meantime, the invasion of Harper's Ferry was debated in the +Senate at great length and with extreme violence, producing in both +houses intense irritation and excitement. Keitt, of South Carolina, +charged upon the Republicans the responsibility of Helper's book +and John Brown's foray, exclaiming: "The south here asks nothing +but its right. . . . I would have no more; but, as God is my judge, +as one of its Representatives, I would shatter this republic from +turret to foundation-stone before I would take one tittle less." +Lamar, of Mississippi, declared that the Republicans were not +"guiltless of the blood of John Brown and his co-conspirators, and +the innocent men, the victims of his ruthless vengeance." Pryor, +of Virginia, said Helper's book riots "in rebellion, treason, and +insurrection, and is precisely in the spirit of the act which +startled us a few weeks since at Harper's ferry." Crawford, of +Georgia, declared: "We will never submit to the inauguration of +a black Republican President." + +The Republicans generally remained silent and demanded a vote. + +Mr. Corwin, then a Representative from Ohio, elected after a long +absence from public life, endeavored to quiet the storm. Frequent +threats of violence were uttered. Angry controversies sprang up +between Members, and personal collisions were repeatedly threatened +by Members, armed and ready for conflict. No such scenes had ever +before occurred in the Congress of the United States. It appeared +many times that the threatened war would commence on the floor of +the House of Representatives. The House remained in session the +week between Christmas and New Year's Day. During this excitement +my vote steadily increased until on the 4th day of January, 1860, +on the 25th ballot, I came within three votes of election; the +whole number of votes cast being 207; necessary to a choice 104, +of which I received 101. John A. McClernand, of Illinois, received +33, Gilmer 14, Clement L. Vallandigham, of Ohio, 12, and the +remainder were scattering. + +At this time Henry Winter Davis, of Maryland, an American, said to +me, and to others, that whenever his vote would elect me it should +be cast for me. J. Morrison Harris, also an American from the same +state, was understood to occupy the same position. Garnett B. +Adrain, of New Jersey, an anti-Lecompton Democrat, who had been +elected by Republicans, it was hoped would do the same. Horace F. +Clark, of New York, also an anti-Lecompton Democrat who had been +elected by Republicans, could at any moment have settled the +controversy in my favor. It was well known that I stood ready to +withdraw whenever the requisite number of votes could be concentrated +upon any Republican Member. The deadlock continued. + +On the 20th of January, 1860, Mr. Clark, who had introduced the +Helper resolution, said: + +"I wish to make a personal explanation with regard to my personal +feelings in the matter of this resolution. I never read the letter +of which the gentleman from Georgia speaks, and do not take to +myself articles that appear in newspapers, unless they make +imputations against my moral integrity. That resolution was +introduced by me, as I have frequently remarked, with no personal +ill-feeling towards Mr. Sherman, the Republican candidate for +speaker, apart from what I considered to be an improper act of his +--namely, the recommendation of that book. So far as that affects +his political or social character, he must of course bear it." + +I replied as follows: + +"The gentleman from Missouri, for the first time, I believe, has +announced that it was his purpose, in introducing this resolution, +to give gentlemen an opportunity to explain their relations to the +Helper book. I ask him now whether he is willing to withdraw the +resolution for the purpose he has indicated, temporarily, or for +any time?" + +Mr. Clark said: + +"I will endeavor to answer the gentleman. I avowed my purpose +frankly at the time I introduced the resolution, in the remarks +with which I accompanied its introduction. The gentleman from Ohio +propounds the question more directly whether I am willing to withdraw +the resolution for the purpose which I avow? Sir, at the very +instant it was offered, I gave the gentleman that opportunity and +I have given it to him since. I say to the gentleman that he has +had two opportunities to make that explanation; but he has failed +to relieve himself of the responsibility he took when he signed +that book and recommended its circulation." + +I replied: + +"I will say that that opportunity has never been rendered to me. +When the gentleman introduced his resolution, offensive in its +character, at an improper time, in an improper manner, he cut off +--what he says now he desires to give--an opportunity for explanation. +It is true that three days afterward, when the gentleman from +Virginia (Mr. Millson) appealed to me, I stated to him frankly how +may name became connected with that paper. I did not sign the +paper; but it seems that the Hon. E. D. Morgan, a Member of the +last Congress, and a friend of mine, came to me when I was in my +place, and asked me to sign a recommendation for the circulation +of a political pamphlet, to be compiled by a committee, of which +Mr. Blair, a slaveholder of Missouri, was one, from a large book +by Helper, a North Carolinian. I said to him that I had not time +to examine the book; but if there was nothing offensive in it, he +might use my name. Thereupon, this gentleman attached my name to +that paper. This information I did not have at the time the +gentleman from Virginia addressed me, but I said to him I had no +recollection of having signed the paper, but presumed I had, from +my name appearing in the printed list. I subsequently acquired it +from Mr. Morgan, whose letter was published. That I believe was +sufficient under the circumstances. I know there are Members on +that side of the House who have considered it as satisfactory; and +my friends so regard it. At the time I stated that I had not read +the book, that I did not know what was in it. + +"The gentleman alludes to another time. The other day, when this +subject was again brought before the House by him, in language +which, although he claims to be courteous, I could not regard as +such, when I was, by implication, but with a disclaimer of personal +offense, charged with disseminating treason, with lighting the +torch in the dwelling of my southern brethren, and of crimes of +which, if I was guilty, I should not be entitled to a seat upon +this floor, I then rose in my place and told the gentleman from +Missouri that if he would withdraw that resolution I would answer +this book page by page, or those extracts one by one, and tell him +whether I approved them or not. The gentleman refused to withdraw +the resolution. Long ago he was notified by me, and my friend from +Pennsylvania (Mr. Morris) announced on the floor, that this resolution +was regarded by me as a menace, and, if withdrawn, would lead to +a frank avowal, or disavowal. + +"I say now that I do not believe it is the desire of the gentleman +to give me that opportunity. If he does desire it, I am willing +to do now what I said I would have done then. And I say, with +equal emphasis, that never, so help me God, whether or not the +speaker's chair is to be occupied by me, will I do so while that +resolution is before this body, undisposed of. I regard it as +offensive in its tone, unprecedented, unparliamentary, and an +invasion of the rights of representation. Under the menace clearly +contained in it, I never will explain a single word contained in +those extracts. + +"If the gentleman will withdraw his resolution, even for a moment, +to relieve me from the menace--he may reinstate it afterwards if +he chooses--I will then say what I have to say in regard to those +extracts. But while it stands before the House, intended as a +stigma upon me, and sustained by an argument without precedent in +parliamentary history, he cannot expect me to say more than I have +done. I believe not only my friends, but the gentlemen on the +other side of the House, who have a sense of honor, believe that +my position is correct. I know that some of them regard my statement +made on the third day of the session as full and satisfactory, and +all that, under the circumstances, it was proper for me to indicate. + +"For gentlemen now to press this matter; to agitate the country; +to spread these extracts all over the south, and to charge the +sentiments of this book upon me, and my associates here; to proclaim, +day after day, that the Republicans entertain these sentiments and +indorse them, is not that ingenuous, candid and manly course which +a great party like the Democratic party ought to pursue. While we +may conduct our political quarrels with heat, and discuss matters +with zeal and determination, it ought to be done with fairness and +frankness. The mode in which this resolution has been pressed +before the country, and I, with my hands tied and my lips sealed +as a candidate, have been arraigned day by day, is without a +precedent, not only in history but in party caucuses, in state +legislatures, in state conventions or anywhere else. + +"I said when I rose the other day that my public opinions were on +record. I say so now. Gentlemen upon the other side have said +that they have examined that record to ascertain what my political +opinions were. They will look in vain for anything to excite +insurrection, to disturb the peace, to invade the rights of states, +to alienate the north and south from each other, or to loosen the +ties of fraternal fellowship by which our people have been and +should be bound together. I am for the Union and the constitution, +with all the compromises under which it was formed, and all the +obligations which it imposes. This has always been my position; +and these opinions have been avowed by me on this floor and stand +now upon your records. Who has brought anything from that record +against me that is worthy of answer? . . . + +"I have never sought to invade the rights of the southern states. +I have never sought to trample upon the rights of citizens of the +southern states. I have my idea about slavery in the territories, +and at the proper time and in the proper way I am willing to discuss +the question. I never made but one speech on the subject of slavery, +and that was in reference to what I regarded as an improper remark +made by President Pierce in 1856. I then spread upon the record +my opinions on the subject; and I have found no man to call them +into question. They are the opinions of the body of the Republicans. +They are the opinions which I now entertain. Gentlemen are at +liberty to discuss these questions as much as they choose, and I +will bear my share of the responsibility for entertaining those +opinions. But I now speak to my personal record. . . . + +"Again these gentlemen, while publishing in their speeches all over +the country that I am in effect a traitor, etc., by implication, +it is true, disavowing, as I am glad to say each of them have done, +any design to be personally offensive, but in a way which answers +the same purpose; yet when called upon to show proof or specifications, +they fail to do so; and the only act for which I have been arraigned +before the American people is that, in a moment when I was sitting +here, busy at my desk, and one of my friends, and late a Member of +this House, came to me and asked me to sign a paper recommending +the publication of a political tract; that, when I authorized my +name to be put to that recommendation, by that very act I became +a traitor and would place the torch in the hands of the incendiary. +I say this is not fair argument. And I again repeat that if the +Member from Missouri (Mr. Clark) desires to know what my sentiments +are in regard to the extracts read at the clerk's table, the only +portion of the Helper book I have seen or read, I will give them +if he will remove a menace from me. I never did do anything under +menace. I never will. It is not in my blood and these gentlemen +cannot put it there." + +Mr. Clark rose to speak, but I continued: + +"The gentleman will excuse me, I have, so far as I am concerned in +this contest, been quiet and patient. I desire to see an organization +of the House opposed to the administration. I think it is our +highest duty to investigate, to examine and analyze the mode in +which the executive powers of this government have been administered +for a few years past. That is my desire. Yes sir, I said here, +in the first remark I made, that I did not believe the slavery +question would come up at all during this session. I came here +with the expectation that we would have a business session, that +we would analyze the causes of the increased expenditures of the +government and the proper measures of redress and retrenchment. +I did not believe that the slavery question would come up, and but +for the unfortunate affair of Brown at Harper's Ferry, I did not +believe there would be any feeling on the subject. Northern Members +came here with kindly feelings, no man approving the foray of John +Brown and every man willing to say so; every man willing to admit +it as an act of lawless violence. We came here hoping that, at +this time of peace and quiet, we might examine, inquire into, and +pass upon, practical measures of legislation tending to harmonize +the conflicting elements of the government and strengthen the bonds +of Union. The interests of a great and growing people present +political questions enough to tax the ability and patriotism of us +all. + +"Such was our duty; but the moment we arrived here--before, sir, +we even had a formal vote,--this question of slavery was raised by +the introduction of the resolution of the gentleman from Missouri. +It has had the effect of exciting the public mind with an irritating +controversy. It has impaired the public credit and retarded the +public business. The debate founded upon it has been unjust, +offensive, wrong, not only to the Republicans here, not only to +those with whom I act, but to all our common constituents, north +and south. The gentlemen who have advocated that resolution have +stirred up bad blood, and all because certain gentlemen have +recommended that a compilation be made of a book. Even yet we may +retrieve the loss of valuable time. We could now go to work, +organize the House and administer the powers of this House with +fairness and impartiality. + +"In conclusion, let me say that by no act or effort have I sought +the position I now occupy before the House. The honor was tendered +me by the generous confidence and partiality of those with whom it +has been my pride to act, politically. Their conduct in this +irritating controversy has justified my attachment. + +"If I shall ever reach the speaker's chair, it will be with +untrammeled hands and with an honest purpose to discharge every +duty in the spirit which the oath of office enjoins; and to organize +the House with reference to the rights and interests of every +section, the peace and prosperity of the whole Union, and the +efficient discharge of all the business of the government. And +whenever friends who have so gallantly and liberally sustained me +thus far believe that my name in any way presents an obstacle to +success, it is my sincere wish that they should adopt some other. +Whenever any one of my political friends can combine a greater +number of votes than I have been honored with, or sufficient to +elect him by a majority or plurality rule, I will not stand in this +position one hour; I will retire from the field, and yield to any +other gentleman with whom I act, the barren honors of the speaker's +chair; and I promise my friends a grateful recognition of the +unsolicited honor conferred upon me, and a zealous and earnest co- +operation." + +Pending the vote on the 39th ballot and before it was announced, +Robert Mallory, of Kentucky, an American, appealed to the Democrats +to vote for William N. H. Smith, of North Carolina, also an American, +which would elect him. The Democrats thereupon changed their votes +to Mr. Smith, making many speeches in explanation of their action. +Perceiving that this would elect Mr. Smith I arose and for the +first time cast my ballot for speaker, voting for Mr. Corwin. +Three other Members who had voted for Mr. Smith changed their votes, +which defeated the election on that ballot. + +After this vote I conferred with Davis and George Briggs, of New +York, Americans, and Adrain. I had the positive assurance of these +three gentlemen that if I would withdraw they would vote for William +Pennington, of New Jersey, and thus secure a Republican organization +of the House. I referred this proposition to my Republican +associates, and a majority of them were opposed to any change. +Francis E. Spinner, of New York, said he would never change his +vote from me, and Thaddeus Stevens said he never would do so until +the crack of doom. When afterwards reminded of this Mr. Stevens +said he thought he "heard it cracking." + +I felt the responsibility, but on the 30th of January, 1860, I +determined to withdraw. In doing so I made the following remarks, +as printed in the "Congressional Globe:" + +"Mr. clerk--[Loud cries of 'Down,' 'Down,' 'Order,' 'Order,' 'Let +us have the question,' etc.] Eight weeks ago, I was honored by +the votes of a large plurality of my fellow Members for the high +office of speaker of this House. Since that time they have adhered +to their choice with a fidelity that has won my devotion and respect; +and, as I believe, the approbation of their constituents. They +have stood undismayed amidst threats of disunion and disorganization; +conscious of the rectitude of their purposes; warm in their attachment +to the constitution and Union, and obedient to the rules of order +and the laws. They have been silent, firm, manly. On the other +hand, they have seen their ancient adversary and their only natural +adversary, reviving anew the fires of sectional discord, and broken +into fragments. They have seen some of them shielding themselves +behind a written combination to prevent the majority of the House +from prescribing rules for its organization. They have heard others +openly pronounce threats of disunion; proclaim that if a Republican +be duly elected President of the United States, they would tear +down this fair fabric of our rights and liberties, and break up +the union of these states. And now we have seen our ancient +adversary, broken, dispersed and disorganized, unite in supporting +a gentleman who was elected to Congress as an American, in open, +avowed opposition to the Democratic organization. + +"I should regret exceedingly, and believe it would be a national +calamity, to have anyone who is a supporter, directly or indirectly, +of this administration, or who owes it any allegiance, favor or +affection, occupying a position of importance or prominence in this +House. I would regard it as a public calamity to have the power +of this House placed, directly or indirectly, under the control of +this administration. It would be, it seems to me, a fatal policy +to trust the power of this House to the control of gentlemen who +have proclaimed that under any circumstances, or in any event, they +would dissolve the union of these states. For this reason we would +be wanting in our duty to our God and our country, if we did not +avert such a result of this contest. I regard it as the highest +duty of patriotism to submerge personal feelings, to sacrifice all +personal preferences and all private interests, to the good of our +common country. I said here a few days ago, and I always stood in +the position, that when I became convinced that any of my political +friends or associates could receive further support outside of the +Republican organization, I would retire from the field and yield +to him the honor of the position that the partiality of friends +has assigned to me. I believe that time has now arrived. I believe +that a greater concentration can now be made on another gentleman, +who, from the beginning, has acted with me. + +"Therefore, I respectfully withdraw my name as a candidate. And +in doing so, allow me to return my heartfelt thanks for the generous +and hearty support of all my political friends, and especially to +those gentlemen with whom I have not the tie of a party name, but +the higher one of a common purpose and sympathy. And if I can ask +of them one more favor, it would be that in an unbroken column, +with an unfaltering front and unwavering line, each of them will +cast his vote in favor of any one of our number who can command +the highest vote, or who can be elected speaker of this House." + +A ballot was immediately taken, but, much to my chagrin, the +gentlemen named did not change their votes, and Mr. Pennington +still lacked three votes of an election. I again appealed to Davis +and Briggs, and finally, on the 1st of February, Mr. Pennington +received their votes. The result was announced; Pennington, 117 +votes; McClernand, 85; Gilmer, 16; 15 scattering; giving Pennington +a majority of one, and thus, after a long and violent contest, a +Republican was elected speaker of the House of Representatives. + +I was entirely satisfied with the result. I had received every +Republican vote and the votes of a large number of anti-Nebraska +Democrats and Americans. No cloud rested upon me, no allegation +of misconduct or unfitness was made against me. I would have been +easily and quickly elevated but for the abnormal excitement created +by Brown's invasion and the bitterness of political antagonism +existing at that time. Many Members who felt it their duty to oppose +my election, subsequently expressed their regret that I was not +elected. I had voted for Mr. Pennington during the contest, had +a high respect for him as a gentleman of character and influence, +long a chancellor of his state, and a good Republican. + +When the canvass was over, I felt a sense of relief. During its +continuance, I had remained, with rare exceptions, silent, though +strongly tempted, by political criticism, to engage in the debate. +I had, during the struggle, full opportunity to estimate the capacity +and qualifications of different Members for committee positions, +and had the committees substantially framed, when Pennington was +elected. I handed the list to him, for which he thanked me kindly, +saying that he had but little knowledge of the personal qualifications +of the Members. With some modifications, made necessary by my +defeat and his election as speaker, he adopted the list as his own. +He designated me as chairman of the committee of ways and means, +of which I had not previously been a member. + +The organization of the House was not completed until the 9th day +of February, 1860. The officers designated by the Republicans were +generally elected. Congress seemed to appreciate the necessity of +prompt and vigorous action on the business of the session. Still, +whatever question was pending, political topics were the object of +debate, but were rarely acted upon, as the condition of the House +prevented anything like political action. Nearly all the measures +adopted were of a non-political character. The chief work of the +session was devoted to appropriations, and the preparation and +enactment of a tariff bill. At that time, the great body of +legislation was referred to the committee of ways and means, which +then had charge of all appropriations and of all tax laws, and +whose chairman was recognized as the leader of the House, practically +controlling the order of its business. + +By the 13th of March, I was able to say, in behalf of the committee, +that all the annual appropriation bills were ready for the +consideration of the House, and promised that if the House would +sustain the committee, all these bills could be passed before the +meeting of the Charleston convention. Notwithstanding the partisan +bitterness which was exhibited against me while I was a candidate +for speaker, I had no cause to complain of a want of support by +the House, in the measures reported from that committee. Since +then the work of that committee has been distributed among a number +of committees. + +The first political contest was caused by a message of President +Buchanan, protesting against action under a resolution by the House +of Representatives, passed on the 5th of March, providing for a +committee of five members, to be appointed by the speaker, for the +purpose of investigating "whether the President of the United +States, or any other officer of the government, has, by money, +patronage, or other improper means, sought to influence the action +of Congress for or against the passage of any law pertaining to +the rights of any state or territory." The committee appointed +came to be commonly known as the Covode committee. + +This message was regarded as a plain interference with the +unquestionable power of the House to investigate the conduct of +any officer of the government, a process absolutely necessary to +enable the House to exercise the power of impeachment. Upon the +reception of the message I immediately replied to it, and a general +debate arose upon a motion to refer it to the committee on the +judiciary. That motion was adopted and the committee reported a +resolution in the following words, which was finally adopted after +debate, by a vote of 88 yeas and 40 nays: + +"_Resolved_, That the House dissents from the doctrines of the +special message of the President of the United States of March 28, +1860; + +"That the extent of power contemplated in the adoption of the +resolutions of inquiry of March 5, 1860, is necessary to the proper +discharge of the constitutional duties devolved upon Congress; + +"That judicial determinations, the opinions of former Presidents +and uniform usage, sanction its exercise; and + +"That to abandon it would leave the executive department of the +government without supervision or responsibility, and would be +likely to lead to a concentration of power in the hands of the +President, dangerous to the rights of a free people." + +This resolution was regarded as a severe reproach to the President, +who was not content to let the matter rest there, but on the 25th +of June sent to the House of Representatives, a message restating +the position in his former message. He denounced the proceedings +of that committee as a violation of the letter and spirit of the +constitution. But for the lateness of the session the message +would have been the subject of severe animadversion. Late as it +was Benjamin Stanton, of Ohio, entered his protest and moved that +the message be referred to a select committee of five, with power +to report at the next session. This, after a brief debate, was +adopted. + +During the entire session, while the current business was progressing +rapidly, the political questions involved in the pending presidential +canvass, the topics of Kansas and slavery, were frequently obtruded +into the debate. On the 23rd of April, William T. Avery, a Democratic +Member from Tennessee charged that "an overwhelming majority of +the Republican party in this House, headed by Mr. Sherman--in fact, +every member of that party present when the vote was taken, excepting +some fourteen or fifteen--indorsed the doctrine of the abolition +of slavery everywhere." + +In the course of a reply to this charge I said: + +"I think there is not a Member on this side of the House who is +not now willing to make the declaration broadly, openly, that he +is opposed to any interference whatever with the relations of master +and slave in the slave states. We do believe that Congress has +the power to prohibit slavery in the territories; and whenever the +occasion offers, whenever the proper time arrives, whenever the +question arises, we are in favor of exercising that power, if +necessary, to prevent the extension of slavery into free territory. +We are frank and open upon this subject. But we never did propose, +and do not now propose, to interfere with slavery in the slave +states. I hope the gentleman will put these observations in his +speech, so that the gentleman's constituents may see that we 'black +Republicans' are not so very desirous of interfering with their +interests or rights, but only desirous of preserving our own." + +Mr. Ashmore inquired: "Are you not in favor of abolishing slavery +in the District of Columbia?" + +I replied: + +"I have stated to my constituents, over and over again, that I am +opposed to interference with slavery in the District of Columbia. +That is my individual position. The Republican party never took +a position on the subject. Some are for it, and some against it. +I have declared to my constituents, over and over again, that I +did not think it proper to agitate the question of the abolition +of slavery in the District of Columbia; because I believe that this +is the very paradise of the free negro. I believe that practically, +though not legally, he is better off in the District than in any +portion of the United States. There are but few slaves here, and +the number is decreasing daily. As an institution, slavery scarcely +exists here, and I am willing to leave it to the effect of time." + +On the 12th of March, 1860, Justin S. Morrill, of Vermont, by +instruction of the committee of ways and means, reported a bill +"to provide for the payment of outstanding treasury notes, to +authorize a loan, to regulate and fix duties on imports, and for +other purposes." This became the law commonly known as the Morrill +tariff act, which, from the time of its introduction to this day, +had been the subject of debate, amendment, criticism and praise. +It was referred to the committee of the whole on the state of the +Union, and its consideration occupied a large proportion of the +remainder of the session. Nearly one hundred Members entered into +the debate and some of them made several speeches upon the subject. +Being at the time much occupied with the appropriation bills, I +did not give much attention to the debate, but had taken part in +the preparation of the bill in the committee of ways and means, +and concurred, with rare exceptions, in the principles and details +of the measure. + +Mr. Morrill was eminently fitted to prepare a tariff bill. He had +been engaged in trade and commerce, was a man of sound judgment, +perfectly impartial and honest. Representing a small agricultural +state, he was not biased by sectional feeling or the interests of +his constituents. He regarded the tariff as not only a method of +taxation, but as a mode of protection to existing industries in +the United States with a view to encourage and increase domestic +production. He was moderate in his opinions, kind and fair in +expressing them, and willing to listen with patience to any +proposition of amendment. He still lives at the venerable age of +eighty-five, and has been, during all the long period since the +report of the bill named after him, to this time, in public life, +and still retains the confidence and affection of his constituents +and colleagues. + +I did not participate in the debate until the time came when, in +the judgment of the committee of ways and means, it was necessary +to dispose of the bill, either by its passage or defeat. On the +7th of May, 1860, the bill being before the House, I moved that +all debate on it should cease at one o'clock the next day. Some +opposition was evinced, but the motion was adopted. I then made +my first speech upon the subject of the tariff. The introductory +paragraphs state the then condition of the treasury as follows: + +"The revenue act of March 3, 1857, which it is now proposed to +repeal, has proved to be a crude, ill-advised, and ill-digested +measure. It was never acted upon in detail in either branch of +Congress, but was the result of a committee of conference in the +last days of the session, and was finally passed by a combination +of hostile interests and sentiments. It was adopted at a time of +inflated prices, when the treasury was overflowing with revenue. +When that condition of affairs ceased, it failed to furnish ordinary +revenue, and by its incidental effects operated injuriously to +nearly every branch of industry. + +"It went into operation on the 1st of July, 1857. At that time +there was in the treasury of the United States a balance of +$17,710,114. The amount of the public debt then remaining unpaid, +none of which was then due, was a little over $29,000,000. So that +there was in the treasury of the United States, when the tariff +act of 1857 went into operation, nearly enough to have paid two- +thirds of the public debt. Within one year from that time, the +public debt was increased to $44,910,777. + +"On the 1st of July, 1859, the public debt had increased to +$58,754,699. On the 1st of May, 1860, as nearly as I can ascertain, +the public debt had risen to $65,681,099. The balance in the +treasury on the first of July next, as estimated by me, will be +$1,919,349. + +* * * * * + +"Under the operation of the tariff of 1857, the deficit in the +revenue is over $52,000,000. It may be stated thus: + + Balance in the treasury, July 1, 1857 . . . . . . . . . $17,710,114 + Balance in the treasury, July 1, 1860, estimated . . . 1,919,349 + $15,790,765 + Amount of public debt May 1, 1860 . . . $65,681,199 + Amount of public debt July 1, 1857 . . 29,060,386 36,620,813 + $52,411,578" + +It was manifest from these statements that there was an imperative +necessity for the passage of some measure to increase the revenues. +We could hardly hope that, in the excited state of the public mind +and the known position of the Senate, the bill could pass at that +session. The government had been conducted for three years by +borrowing money in time of peace. The appropriations had been +reduced during that session by the committee of ways and means +below the estimate of the treasury, as stated by me to the House. +I then said: + +"I desire now to say that the committee of ways and means, who have +had charge of appropriation bills, have endeavored, faithfully and +honestly, without regard to party divisions--and all parties in +this House are represented in that committee--to cut down the +appropriations to the lowest practicable point; and thus to reduce +the expenses of the government. I have before me a table showing +that, upon the estimates submitted to us, by the Secretary of the +Treasury, for the ordinary expenses of the government, we have been +able to reduce the amount about $1,230,000." + +After a careful statement of the condition of the treasury and the +necessity for further supplies, I expressed this opinion of the +pending bill: + +"In my judgment Mr. Morrill's bill is a great improvement on the +tariff of 1857. It is more certain. It is more definite. It +gives specific duties. There is another reason why it is better +than the tariff of 1857. That tariff is made up of complex and +inconvenient tables. The number of tables is too great; and in +some cases the same article is in two tables. Thus, flaxseed comes +in with a duty of ten per cent.; and yet linseed, the same thing, +yielding the same product, the same oil, is admitted duty free. +The bill of Mr. Morrill, on the other hand, fixes three _ad valorem_ +tables; one at ten per cent., one at twenty, and the other at +thirty. There is a number of specific duties, and then there is +a free list. It conforms to our decimal currency, and the duties +under it are easily calculated. There can be but little dispute +about home and foreign valuation under it. It will yield a revenue +sufficient to pay the expenses of the government. It is more simple +and more certain. It substitutes specific for _ad valorem_ duties +whenever practicable. For these reasons, it is obvious Mr. Morrill's +bill ought to receive the sanction of Congress." + +The bill not only provided for a sufficient revenue, but was +distinctively a bill for incidental protection to all American +industries, impartially and fairly applied. I said I desired to +have this bill passed, + +"Because it is framed upon the idea that it is the duty of the +government, in imposing taxes, to do as little injury to the industry +of the country as possible; that they are to be levied so as to +extend a reasonable protection to all branches of American industry. +I think that is right. Every President of the United States, from +Washington to this time, has recognized that principle, including +Mr. Buchanan. + +"We may make a tariff to raise the sum of $40,000,000, and injure +every industrial interest of the country. The committee of ways +and means report a tariff bill which will produce $65,000,000, and +will do no injury to any industrial interest. I believe that it +will give a reasonable fair protection for the great industries of +agriculture, manufacture, and commerce, which lie at the basis of +the prosperity of this country." + +Mr. Morrill participated in this debate by brief but clear statements +in respect to the details of the bill. On the 8th of May, 1860, +he said, in the course of some remarks upon the bill: + +"I think if the gentleman will examine this bill, he will find that +the average rates of duties upon manufactured articles are not +higher, but rather lower, than they are now; but being to a large +extent specific, they will prove of great value to the country, in +giving steadiness to our markets, as well as to the revenue; and +because frauds will be to a very great extent obviated, which are +now practiced under our _ad valorem_ system, and which have made +our government almost equal in infamy to that of Mexico and other +countries, where their revenue laws are a mere farce." + +The bill, despite its merits, was assailed with all forms of +amendments from all parts of the House. Many of the amendments +were adopted, until the bill became so mottled that Mr. Morrill, +discouraged and strongly inclined against the bill as changed, was +disposed to abandon it to its fate. He was not familiar with the +rules, and, for this reason, labored under a disadvantage in the +conduct of the bill. I believed not only in the merits of the +measure, but that by a process strictly in accordance with the +rules, it might be restored substantially as it was reported by +the committee. To secure that effect Mr. Morrill offered an +amendment in the nature of a substitute for the bill. To that I +offered as an amendment a bill which embodied nearly all of the +original bill as reported, with such modifications as were evidently +favored by the House, without affecting the general principles of +the measure. + +The vote, upon my substitute being adopted in place of the substitute +offered by Mr. Morrill, prevented any amendment to my amendment +except by adding to it. The result of it was that the House, tired +with the long struggle, and believing that the measure thus amended +was in substance the same as the original bill reported, finally +passed the bill on the 10th day of May, 1860, by the vote of 105 +yeas to 64 nays. + +As this was my birthday, I remember to have celebrated it, not only +as my birthday, but as the day on which the Morrill tariff bill +passed the House of Representatives. + +We knew upon the passage of this bill that it could not pass the +Senate during that session. It was taken up in that body, debated +at length, and finally, on the 20th of June, it was, in effect, +postponed until the next session. + +I might as well here follow the Morrill tariff bill to its final +passage at the next session of this Congress. + +On the 20th of December, 1860, Mr. Hunter, from the committee on +finance, to whom was referred the tariff bill, reported it back +with a recommendation that it be postponed until the 4th day of +March following. This was, in effect, to reject the bill, as +Congress terminated on that day. The committee on finance, and a +majority of the Senate as then constituted, was opposed to the +passage of the bill, but the secession movements, then openly +threatened, soon changed the political complexion of the Senate, +by the resignation of Senators on account of the secession of their +states. On the 18th of January, 1861, Mr. Cameron, of Pennsylvania, +moved to take up the bill, and, upon his motion, it was made a +special order for the following Wednesday. On the 23rd of January +it was referred to a committee of five members, consisting of Mr. +Simmons, Mr. Hunter, Mr. Bigler, Mr. Fessenden, and Mr. Gwin. This +was done on the same day when the committees of the Senate were +reorganized on account of the withdrawal of Senators. The special +committee appointed by the Vice President was friendly to the bill. +Then for the first time it became possible to secure favorable +action in the Senate. Many amendments were proposed and adopted +by the Senate, but they did not materially affect the general +principles upon which the bill was founded. It passed the Senate +with these amendments by the decided vote of 25 yeas to 14 nays. +All of the amendments of the Senate but one were promptly agreed +to by the House, and a conference between the two Houses was ordered. +Messrs. Simmons, Bigler and Hunter were the managers on the part +of the Senate and Messrs. Sherman, Phelps and Moorhead on the part +of the House. + +On the 27th day of February, five days before the close of the +session, the conferees reported to the Senate their agreement and +the report of the committee was adopted without objection or division +of that body, and also by the House of Representatives, and the +bill was signed by President Buchanan. + +This law, passed in the throes of a revolution, and only possible +as the result of the withdrawal of Senators to engage in the war +of secession, met all the expectations of its friends. It was +fair, just and conservative, and would, in peaceful times, yield +about $50,000,000 a year, the amount of national expenditures in +1860, and, at the same time, protect and strengthen all existing +home industries, and lay the foundation for great increase in +production. It was destined, however, to begin its existence at +a period of revolution. The secession of eleven states precipitated +the war, involving enormous expenditures, in the face of which all +revenue laws were inadequate and powerless. The credit of the +government, its resources and capacity for taxation, had to be +appealed to. Resort was had to every possible mode of taxation +that could be devised by the ingenuity of man, to supply the +requirements of the war, and to maintain the public credit. The +Morrill tariff act was, therefore, greatly modified by subsequent +laws, the duties doubled and in some cases trebled. Internal taxes, +yielding twofold the amount collected from customs, were levied, +and cheerfully paid, and duties on imported goods were quickly +increased. The details of this act became the victim of the war, +but the general principles upon which it was founded, the application +of specific duties where possible, and the careful protection +extended to the products of the soil and the mine, as well as of +the workshop, have been maintained to a greater or less extent +until the present time. + +I have participated in framing many tariff bills, but have never +succeeded in securing one that I entirely approved. The Morrill +tariff bill came nearer than any other to meeting the double +requirement of providing ample revenue for the support of the +government and of rendering the proper protection to home industries. +No national taxes, except duties on imported goods, were imposed +at the time of its passage. The Civil War changed all this, reducing +importations and adding tenfold to the revenue required. The +government was justified in increasing existing rates of duty, and +in adding to the dutiable list all articles imported, thus including +articles of prime necessity and universal use. In addition to +these duties, it was compelled to add taxes on all articles of home +production, on incomes not required for the supply of actual wants, +and, especially, on articles of doubtful necessity, such as sprits, +tobacco and beer. These taxes were absolutely required to meet +expenditures for the army and navy, for the interest on the war +debts and just pensions to those who were disabled by the war, and +to their widows and orphans. + +These conditions have, in a measure, been fulfilled. The war is +over; the public debt has been diminished to one-third of the amount +due at the close of the war. The pension list is the chief and +almost only outstanding obligation growing out of the war, but this +is fully met by internal taxes on spirits, tobacco and beer. What +is needed now is a tariff or tax on imported goods sufficient in +amount to meet the current expenditures of the government, and +which at the same time will tend to encourage the production in +this country of all articles, whether of the farm, the mine or the +workshop, that can be readily and at reasonable cost produced in +this country. + +And here we meet the difficulty that the mode, extent, manner and +objects of tariff taxation are unhappily mixed up in our party +politics. This should not be so. Whether the mode of taxation +should be by a percentage on the _value_ of goods imported, or by +a duty imposed on the weight or quantity, depends upon the nature +of the article. If the article is sold in the market by weight or +quantity, the duty should be specific, _i. e._, a certain rate on +the unit of weight or quantity. If it is of such a nature that +its value cannot be measured by weight or quantity the duty should +be _ad valorem, i. e._ a percentage of its value. This is matter +of detail to be fixed by the custom of merchants. As a rule it is +better to fix the duty upon weight or measure, rather than upon +value, for by the former mode the amount is easily ascertained by +the scale or yard stick, while to base the duty upon value, changing +from day to day, is to invite fraud and litigation. + +The extent or rate of duty to be imposed should depend entirely +upon the pecuniary wants of the government, and the nature of the +article imported. If the article is one of luxury, mainly consumed +by the rich, the duty should be at a higher rate than upon an +article in general use. This principle is sometimes disputed, but +it would seem that in a republic a just discrimination ought to be +made in favor of the many rather than of the few. On this principle +all political parties have acted. The rates have been higher on +silks, satins, furs and the like than on goods made of cotton, +wool, flax or hemp. To meet the changing wants of the government +all articles should be classified in schedules, so that the rate +of duty on a single schedule, or on many schedules, could be advanced +or lowered without disturbing the general scheme of taxation. + +As to the manner of taxation and the places where duties should be +collected, all will agree that they should be paid as nearly as +possible where the goods are to be consumed. The concentration of +importations at any one port on the coast, or at several ports, +gives to the people residing at or near such favored ports an +advantage over the people living in the interior of the country. +The system of interior ports, or places of delivery to which goods +may be consigned, has been adopted and generally approved. The +object is that all parts of the country shall have equal facilities +and bear equally the burdens of taxation. + +The method of importations should be so simplified that any person, +in any part of the United States, may order from any commercial +port or country any article desired and be able to receive it and +pay the prescribed duty, at any considerable port or city in the +United States that he may designate. + +As to the objects of tariff taxation there is and always will be +an honest difference of opinion. The main purpose is to secure +the revenue from foreigners seeking our market to dispose of their +products. The United States has the right, exercised by every +nation, to determine upon what terms the productions of foreign +nations shall be admitted into its markets, and those terms will +be such as its interests may demand. Great Britain may admit nearly +all commodities free of duty, but even that country is guided by +her interests in all her commercial regulations. All other nations +classified as civilized seek, like the United States, by tariff +laws, not only to secure revenue, but to protect and foster domestic +industries. Japan has won its entrance among civilized nations by +securing treaties with European countries and the United States, +by which she has been relieved from restrictions as to her duties +on imports, and now has the right to regulate and fix her import +duties as her interest dictates. + +The United States has from the beginning of its government declared +that one object of duties on imports is the encouragement of +manufactures in the United States, and, whatever may be the dogma +inserted in a political party platform, tariff legislation will +continue to have a double object, _revenue and protection_. This +was strikingly exemplified by the recent action of Congress in the +passage of the tariff law now in force. + +The real difficulty in our tariff laws is to avoid unequal and +unjust discrimination in the objects of protection, made with a +view to favor the productions of one state or section at the cost +of another state or section. The dogma of some manufacturers, that +raw materials should be admitted free of duty, is far more dangerous +to the protective policy than the opposition of free traders. The +latter contend that no duties should be levied to protect domestic +industry, but for revenue only, while the former demand protection +for their industries, but refuse to give to the farmer and miner +the benefit of even revenue duties. A denial of protection on +coal, iron, wool and other so-called raw materials, will lead to +the denial of protection to machinery, to textiles, to pottery and +other industries. The labor of one class must not be sacrificed +to secure higher protection for another class. The earth and all +that is within it is the work of God. The labor of man that tends +to develop the resources buried in the earth is entitled to the +same favor and protection as skilled labor in the highest branch +of industry, and if this is not granted impartially the doctrine +of protection proclaimed by the founders of our government, supported +for more than a hundred years of wonderful progress, will be +sacrificed by the hungry greed of selfish corporations, who ask +protection for great establishments and refuse to grant it to the +miner, the laborer and the farmer. + +Another principle must be ingrafted into our tariff laws, growing +out of new modes of production by corporations and combinations. +Until recently each miner, each artisan, and each manufacturer, +had to compete in the open market with everyone engaged in the same +industry. The general public had the benefit of free competition. +This tended to lower prices on many commodities, to increase the +quantity produced, and to supply the home market, thus excluding +importations. The tendency since the Civil War in every branch of +industry has been to consolidate operations. To effect this, +corporations have been created in most of the states and granted +such liberal corporate powers, without respect to the nature of +the business to be conducted, and with terms and privileges so +favorable, that private enterprise without large capital cannot +compete with them. Instead of small or moderate workshops, with +a few hands, we now have great establishments with hundreds of +employees, and all the capital of scores of stockholders under the +control of a few men, and often of one man. This may be of benefit +by reducing the cost of production, but it also involves two dangers, +one the irrepressible conflict of labor with capital, and the other +the combination of corporations engaged in the same business to +advance prices and prevent competition, thus constituting a monopoly +commanding business and controlling the market. + +This power in the hands of a few is at this moment the disturbing +element in many of our great industries. It is especially dangerous +when it is promoted by rates of duty on imported goods higher than +are necessary to cover the difference in the cost of labor here +and abroad. When such conditions occur, the monopoly becomes +offensive. Such combinations are denounced and punished by the +laws of almost every civilized government and by the laws of many +of our states. They should be denounced and punished by the laws +of the United States whenever they affect any matter within the +jurisdiction of the United States. Whenever the tendency of a +monopoly is to prevent mutual competition, and to advance prices +for any articles embraced in our tariff laws, the duty on the +article should be at once reduced or repealed. + +As Members of Congress, divided by party lines and crude platforms, +must in the main, care for and protect local interests, I do not +believe any fair, impartial and business tariff can be framed by +them. It would be better for Congress, the law-making power, after +determining the amount to be raised, to sanction and adopt a careful +tariff bill, framed by an impartial commission, large enough to +represent all sections and parties, all employers and employees. +Hitherto, the tariffs framed by Congress have been rejected by the +people. Each party, in its turn, has undertaken the task with a +like result. Let us try the experiment of a tariff framed, not by +a party upon a party platform, but by the selected representatives +of the commercial, industrial, farming and laboring classes. Let +Congress place upon the statute book such a law, and the tariff +question will cease to be the foot ball of partisan legislation. + +The remainder of the session was occupied chiefly in the consideration +of appropriation bills. These were carefully scrutinized; many +estimates of the departments were reduced. As usual, appropriations +were increased in the Senate, but most of the amendments were +rejected in conference. + +The bill authorizing a loan for the redemption of treasury notes +was passed on the 22nd day of June. Congress adjourned at noon +June 25, 1860. + +This memorable Congress, commencing with a contest which threatened +violence on the floor of the House of Representatives, was held +unorganized for sixty days by a defeated party upon a flimsy pretext, +and during all that time we had to listen to open threats of +secession and disunion made by its members. No previous Congress +had exhibited such violence of speech and action. When fully +organized it quieted down, and, with occasional exceptions, proceeded +rapidly to the discharge of its public duties. A greater number +of contested bills were passed at this Congress than usual. Most +of these measures came from the committee of ways and means. The +members of that committee were Messrs. John Sherman, of Ohio, Henry +Winter Davis, of Maryland, John S. Phelps, of Missouri, Thaddeus +Stevens, of Pennsylvania, Israel Washburn, Jr., of Maine, John S. +Millson, of Virginia, Justin S. Morrill, of Vermont, Martin J. +Crawford, of Georgia, and Elbridge G. Spaulding, of New York. Of +these but two, Mr. Morrill and myself, survive. A brief notice of +those who are numbered with the dead may not be out of place. + +Henry Winter Davis was the most accomplished orator in the House +while he was a Member. Well educated in college, well trained as +a lawyer, an accomplished writer and eloquent speaker, yet he was +a poor parliamentarian, a careless member in committee, and utterly +unfit to conduct an appropriation or tariff bill in the House. He +was impatient of details, querulous when questioned or interrupted, +but in social life and in intercourse with his fellow Members he +was genial, kind and courteous. On one occasion, when I was called +home, I requested him to take charge of an appropriation bill and +secure its passage. He did as I requested, but he was soon +embarrassed by questions he could not answer, and had the bill +postponed until my return. I felt for Mr. Davis a personal +attachment, and I believe this kindly feeling was reciprocated. +He served in the House of Representatives during most of the war, +and joined with Senator Wade in opposition to Mr. Lincoln's re- +election in 1864. He died at Baltimore on the 20th of December, +1865, when in the full vigor of matured manhood. + +John S. Phelps in 1860 was an old and experienced Member. Born in +Connecticut he removed to Missouri as early as 1837. In 1844 he +was elected to Congress as a Democrat, and continued as a Member +sixteen years, being chairman of the committee of ways and means +during the 35th Congress. He was a valuable Member, patient, +careful, industrious, and had the confidence of the House. He was +moderate in his political opinions, and, though a resident of +Missouri, he took the Union side in the Civil War. + +Thaddeus Stevens, one of the most remarkable men of the last +generation, was born in Vermont near the close of the last century; +and was well educated. He taught school and studied law. He +removed to Pennsylvania and there engaged in turbulent politics; +served several years as a member of the state legislature; was +elected to Congress in 1848 and served four years. He was known +to be an aggressive Whig and a dangerous opponent in debate; was +re-elected in 1858 as a Republican and at once took the lead in +the speakership contest. His sarcasm was keen and merciless. He +was not a very useful member of the committee. He was better in +the field of battle than in the seclusion of the committee. Still, +when any contest arose in the House over bills reported by the +committee, he was always ready to defend its action. Though a +cynical old bachelor, with a deformed foot and with a bitter tongue +for those he disliked, he was always charitable and kind to the +poor. He was quiet and impartial in his charity, recognizing no +distinction on account of color, but usually preferring to aid +women rather than men. I was often the witness of his charities. +He continued in active public life until his death on the 11th of +August, 1868. For some time before his death he was unable to walk +up the marble steps of the capitol and two stout negroes were +detailed to carry him up in a chair. On one occasion when safely +seated he grimly said to them, "Who will carry me when you die?" +Mr. Stevens was a brave man. He always fought his fights to a +finish and never asked or gave quarter. + +Israel Washburn, Jr., of Maine, was one of three brothers, Members +of this Congress. Israel was the eldest, and, perhaps, the most +active, of the three. He received a classical education, studied +law and was admitted to the bar in 1830. He was a good debater +and a useful member of the committee. He had been in Congress ten +years, including the 36th. He subsequently became governor of +Maine, and collector of customs at Portland. + +John S. Millson, of Virginia, had long been a Member of Congress, +was fifty-two years old, and regarded as a safe, conservative man +of fair abilities. + +Martin J. Crawford, of Georgia, was a lawyer of good standing. He +was elected a Member of Congress in 1854, and continued as such +until the rebellion, in which he took an active part. When Georgia +seceded, he, with his colleagues, formally withdrew from Congress. +Crawford and I had been friendly, and somewhat intimate. He was +a frank man, openly avowing his opinions, but with respectful +toleration of those of others. After he withdrew we met in the +lobby; he bade me good-bye, saying that his next appearance in +Washington would be as Envoy Extraordinary and Minister Plenipotentiary +of the Confederate States. I told him that he was more likely to +appear as a prisoner of war. I then warned him that the struggle +would be to the death, and that the Union would triumph. Long +afterwards, when I visited the fair at Atlanta, he recalled our +conversation and admitted I was the best prophet. We spent the +evening and far into the night talking about the past and the +future. He evinced no regret for the result of the war, but quietly +acquiesced, and was then a judge in one of the courts in that state. + +Elbridge G. Spaulding, of New York, was an excellent Member. He +had a taste for financial problems and contributed a good deal to +the measures adopted, in this and the 37th Congress, to establish +a national currency and to build up the public credit. These +Members, with Mr. Morrill and myself, were charged with the most +important legislation in the 36th Congress, and I believe that the +general opinion of the House was that we did our duty well. + + +CHAPTER IX. +LAST DAYS OF THE BUCHANAN ADMINISTRATION. +My First Appearance Before a New York Audience--Lincoln's Nomination +at the Chicago Convention--I Engage Actively in the Presidential +Canvass--Making Speeches for Lincoln--My Letter to Philadelphia +Citizens--Acts of Secession by the Southern States--How the South +was Equipped by the Secretary of the Navy--Buchanan's Strange +Doctrine Regarding State Control by the General Government--Schemes +"To Save the Country"--My Reply to Mr. Pendleton on the Condition +of the Impending Revolution--The Ohio Delegation in the 36th Congress +--Retrospection. + +I have followed this important session of Congress to its close, +but while the debate continued in Congress a greater debate was +being conducted by the people. Never before was such interest felt +in the political questions of the day. In many of the cities of +the country clubs were organized for political discussions, and +persons in public life were pressed to make speeches or lectures +on the topics of the day. The Young Men's Central Republican Union, +of New York, arranged a series of lectures, the first of which was +delivered by Frank P. Blair, the second by Cassius M. Clay, and +the third by Abraham Lincoln. The remarkable address of the last +named had great influence in securing his nomination for President. +It was the first time Mr. Lincoln had spoken in New York, where he +was then personally almost unknown. His debate with Douglas had +excited general attention. Using the language of his biographers: + +"When, on the evening of February 27, 1860, he stood before his +audience, he saw not only a well-filled house, but an assemblage +of listeners in which were many whom, by reason of his own modest +estimate of himself, he would have been rather inclined to ask +advice from than to offer instruction to. William Cullen Bryant +presided over the meeting. + +* * * * * + +"The representative men of New York were naturally eager to see +and hear one who, by whatever force of eloquence or argument, had +attracted so large a share of the public attention. We may also +fairly infer that, on his part, Lincoln was no less curious to test +the effect of his words on an audience more learned and critical +than those collected in the open air meetings of his western +campaigns. This mutual interest was an evident advantage to both; +it secured a close attention from the house, and insured deliberation +and emphasis by the speaker, enabling him to develop his argument +with perfect precision and unity, reaching perhaps the happiest +general effect ever attained in any one of his long addresses." + +His speech was printed by the leading papers of the city, and, in +pamphlet form, was widely distributed and read. + +I was invited by the Republican Union to make one of these addresses, +and, though very much occupied and having little time for preparation, +I accepted the invitation, and spoke at Cooper Institute in the +city of New York on the 30th of April, 1860. It was my first +appearance before a New York audience, and I confess that I was +not satisfied with the address. I undertook, what I never attempted +before, to read a political speech to a popular audience. While +I was treated kindly I felt quite sure my speech was a disappointment. +A recent reading of it confirms my opinion that it was not equal +to the occasion or the audience. + +I was also invited by the Republican Club of Philadelphia to make +a speech ratifying the nomination of Lincoln and Hamlin and spoke +at a meeting held May 28, 1860. My address was entirely impromptu, +and was far better, both in manner and matter, than the speech in +New York, and was received with great applause. Since that time, +I have never attempted to make a popular address from manuscript. +Every speaker should know the substance of what he intends to say, +but ought to rely for his words upon the spirit and temper of the +audience. + +The summer of 1860 was ominous of domestic discord and civil war. +The success of the Republicans in the House of Representatives, +the violent scenes in the House, notably those between Potter, +Pryor, Barksdale, and Lovejoy, were indications that the south was +aggressive, and that the north would fight. The meeting of the +Democratic convention at Charleston, on the 23rd of April, soon +disclosed an almost equal division of its members as to slavery in +the territories. The southern platform was adopted by a majority +of one in its committee on resolutions, but rejected by a majority +of the convention. This was the vital issue between the followers +of Davis and Douglas, and Douglas won. A majority of the delegates +from six of the southern states thereupon withdrew from the convention +and adjourned to Richmond. Thus, the first secession was from a +Democratic convention. The remainder of that convention adjourned +to Baltimore, at which city Douglas was nominated for President. +The seceding delegates nominated Breckenridge. Thus, the Democratic +party, which, in every stage of the slavery controversy, had taken +sides with the south, was itself broken on the rock of slavery, +and condemned to certain defeat. + +The Republican convention met at Chicago on the 16th of May, with +a defined line of public policy which was adopted unanimously by +the convention. The only question to be determined was, who should +be the candidate for President, who would best represent the +principles agreed upon. Seward, Chase and Bates were laid aside, +and Abraham Lincoln, one stronger than any of these, was unanimously +nominated. The nomination of a candidate by a third party, ignoring +the slavery question, did not change the issue. The conflict was +now between freedom and slavery, an issue carefully avoided by the +two great parties prior to the repeal of the Missouri Compromise. + +Thus Douglas, as a consequence of his own act, was destined to +defeat, and the irrepressible conflict was to be finally determined +by the people in the choice between Lincoln and Breckenridge, with +the distinct declaration, made by the delegates seceding from the +Charleston convention, that if Lincoln was elected their states +would secede from the Union, and establish an independent government +founded upon slavery. This was the momentous issue involved in +the election. + +Congress adjourned on the 28th of June, 1860. On the 17th of July, +I was unanimously renominated at Shelby. John Shauck, a venerable +Quaker, 80 years of age, claimed to right to nominate me as he had +done in previous conventions. He was absent at the moment, but +the convention, in deference to his known wishes, awaited his +coming. From that time until the election, I was actively engaged +in the presidential canvass. I spent but little time in my district, +as there was but a nominal opposition to my election. The Democratic +candidate, Barnabus Burns, was a personal friend, and sympathized +with me on many subjects. Scarcely a week day passed that I did +not speak at least once. + +Of the many speeches made by me in that canvass, I recall but very +few. I have already referred to my debate with Cox, if it can +properly be called a debate. It was friendly badinage. He charged +me with pulling the Morrill tariff bill through by a trick. I +answered that if it was a trick, it was a trick well played, as +the bill passed by a vote of 105 to 64, many Democrats voting for +it. He complained of the duties on wool, declaring that the farmers +were sacrificed. I showed that the duties on wool had been advanced. +He said I was president of a Know Nothing Lodge in Mansfield. I +said this was simply a lie, and that there were plenty of Douglas +Democrats before me who knew it. He said that I initiated therein, +Sam Richey in a stable. I asked who told him that story, when the +audience called out loudly for Burns. Mr. Burns rose and said he +did not tell Mr. Cox so. I said I was glad to hear it, that it +was a silly lie made up out of whole cloth, and asked if Richey +was present. Richey was in the crowd, and rose amid great laughter +and applause and said: "Here I am." I said: "Well, friends, you +see my friend, Richey, is a genuine Irishman, but he knows, as I +know, that Cox's story is a falsification. Mr. Cox says I am a +political thief; don't think he charges me with stealing sheep, he +only means to say I stole squatter sovereignty. It is petty larceny +at best. But I did not steal Douglas squatter sovereignty." + +I then proceeded to define the difference between the only two +parties with definite principles. The real contest was, not between +Lincoln and Douglas, or between Cox and me, but between Breckenridge +and Lincoln, between free institutions and slave institutions, +between union and disunion. I refer to this debate with Cox to +show how local prejudices obscured the problem then involved. The +people of Ohio were divided on parallel lines, for Cox and I agreed +on Kansas, but he was for Douglas and I for Lincoln, while the +south was brooding over secession, if either Lincoln or Douglas +should be elected. + +I went into most of the congressional districts of Ohio and perceived +a strong leaning in favor of Lincoln, but Douglas also had many +supporters. The Democratic party of Ohio was satisfied with Douglas' +popular sovereignty, especially as it, as they alleged, had secured +freedom for Kansas. Breckenridge had no great following in Ohio, +and Bell and Everett less. + +I spent several days in the canvass in Pennsylvania, Indiana, New +Jersey and Delaware, all warmly contested states, the votes of +which would determine the election. It soon became apparent that +Lincoln was the only candidate who could secure a majority of the +electoral vote. This fact, and the known difficulty of securing +an election by the House in case of failure of an election by the +Electoral College, greatly aided Mr. Lincoln. I presented this +argument with care and fullness in a speech delivered at Philadelphia +on the 12th of September, 1860. It was printed at the time and +largely circulated. I quote a paragraph, which contains the one +fact upon which my argument rested: + +"Owing to the division of the Democratic party, the Republican +party is the only one that can hope to succeed by a direct vote of +the people. This is a fact I need not discuss, for it was written +at the threshold of the contest by the conventions of Charleston +and Baltimore. If the election were to be determined by the rule +of plurality--a rule now adopted in every state in the Union-- +intelligent men would consider it already decided; but the rule of +the majority is fixed by the constitution, and if Pennsylvania does +not vote for Lincoln, then the election devolves upon the House of +Representatives. In that event the constitution requires the House +to choose immediately, by ballot, a President from the persons, +not exceeding three, having the highest number of electoral votes. +The vote must be taken by states, and not by Representatives. The +three millions of people of Pennsylvania will have only the same +political power as the one hundred thousand people of Delaware." + +I recently read this speech, and, in view of the events that followed +I can say that every prophecy made, and every argument stated, has +been verified and sustained by the march of events. My opening +criticism of Mr. Buchanan's administration may seem to be partisan +and unjust, but the general opinion now is that his fault was +feebleness of will, not intentional wrong. Mr. Buchanan was +surrounded by men who had already made up their minds to destroy +the Union, one of whom had already committed acts of treachery in +the distribution of arms and military supplies, and all of whom +avowed the legality and rightfulness of secession. I think what +I said was justified by the conditions existing when the speech +was made. The residue of my speech was certainly moderate enough +to satisfy the most conservative mind. I give the closing +paragraphs: + +"These are, so far as I know, the leading ideas of the Republican +party. I appeal to your candor if they do not commend themselves +to the judgment of reasonable men. Is this the party which you +would combine and conspire against, and to defeat which you would +unite hostile elements? Is it to defeat these ideas that you would +risk scenes of violence in the House, or the subversion of the +constitution by the Senate of the United States? Is it to defeat +this noble policy that you would longer trust a broken-down, corrupt +and demoralized administration? Is it for this that you would +continue in power a party that, by a long enjoyment of the patronage +of the government, has become reckless and corrupt? + +"If you will take the responsibility of preventing the triumph of +the Republican party, you may do so, but it will require a close +fusion of all the elements to defeat it. It is young and vigorous. +It has all the unity and discipline of the old Democratic party. +It holds most of the opinions, modified by experience, of the old +Whig party. It has the conservative moderation of the People's +party, which has influenced its nominations. It adheres to every +principle proclaimed by the old Republican party of Jefferson. We +have confidence in the integrity and patriotism, and wisdom of our +standard bearers--Lincoln and Hamlin. If Mr. Lincoln cannot be +recommended as a parlor President, like General Pierce, and is not +familiar with the etiquette of foreign courts, as is Mr. Buchanan, +we know that he is honest, faithful, courageous and capable. No +man can read his celebrated debates with Mr. Douglas, without +forming a high opinion of his capacity. He is better for having +lived but a short time in Washington, for that city of politicians +is not particularly celebrated for sound principles or right morals. +Born in Kentucky, descended from a Pennsylvania stock, the son and +grandson of Virginians, raised in Indiana and Illinois, familiar +by his own experience with the wants and interests and aspirations +of the people, he possesses the same traits of character which made +Jackson and Clay, in their day and generation, leaders of parties +and of men. Let us, my friends, unite in electing him President +of the United States." + +Lincoln was elected. He received 180 electoral votes; Breckenridge +72; Douglas 12; Bell 39. The question then was whether the people +of the seceding states would try to carry into effect their +declaration. I had no doubt they would try, but I was equally +confident they would fail. + +As events progressed in the south, citizens of the north held +popular meetings in nearly all our cities and in many rural +communities. I was invited by leading citizens of Philadelphia to +attend a public dinner in that city in December, 1860. I could +not attend in person, but wrote them a letter which defined clearly +my convictions and my conception of the duties of our people in +view of passing events. I insert it here: + + "Washington, December 22, 1860. +"Gentlemen:--Your note of the 15th inst., inviting me to attend a +public dinner in your city, on Friday evening next, was duly +received. + +"I remember with pleasure the kindness shown me during the recent +canvass by our political friends in Philadelphia, and would gladly +avail myself of the proposed celebration, to mingle my personal +thanks with your rejoicings, over the recent triumph of our political +principles. Other engagements and duties, however, will not allow +me that pleasure. + +"No state can dispute with Pennsylvania the honor of this triumph. +Her own son was upon trial, and her voice of condemnation was +emphatic and decisive. The election of Governor Curtin foreshadowed +her decision, and strengthened our cause in every state where +freedom of election is allowed to the people. Her verdict in +November reconsidered and reaffirmed her verdict in October. And +now, since the victory is won, let us not lose the fruits of it. + +"Fidelity to principle is demanded by the highest patriotism. The +question is not whether this or that policy should prevail; but +whether we shall allow the government to be broken into fragments, +by disappointed partisans, condemned by four-fifths of the people. +It is the same question answered by General Jackson in his proclamation +of 1833. It is the same question answered by Henry Clay in the +Senate in 1850. It is the same question answered by Madison and +Jefferson, and recently by Wade and Johnson. It is a question +which, I feel assured, every one of you will answer, in the patriotic +language of General Jackson--'_The Union, it must be preserved_.' + +"Such would be the voice of the whole country, if the government +was not now administered by those who not only threaten treason, +but actually commit it, by turning the powers of the government +against itself. They kill the government they have sworn to maintain +and defend, because the people, whose agents they are, have condemned +them. In this spirit we have seen a Secretary of the Treasury, +charged with the financial credit of the government, offering for +sale the bonds of the government, and at the same moment declaring +that it will be overthrown, and that he would aid in overthrowing +it. We see other high officers receiving _pay_ for services to +the government, and yet, at the same moment, plotting its destruction. +We see the treasury robbed by subordinate officers amid the general +ruin. Stranger still, we see the President of the United States +acknowledging his duty to execute the laws, but refusing to execute +them. He admits that the constitution is the supreme law; that +neither a state nor the citizens of a state can disregard it; and +yet, armed as he is with all the executive power, he refuses even +to protect the property of the United States against armed violence. +He will not heed General Cass, the head of his cabinet. He will +not heed General Scott, the head of the army. He has transferred +to southern states more than one hundred thousand arms, of the +newest pattern and most effective calibre, to be turned against +the government. + +"The American people are now trembling with apprehension lest the +President allow our officers and soldiers to be slaughtered at +their posts, for want of the aid which he has refused, or, what is +far more disgraceful, shall order the flag of the Union to be +lowered, without resistance to lawless force. + +"Treason sits in the councils, and timidity controls the executive +power. The President listens to, and is controlled by, threats. +He theorizes about coercing a state when he should be enforcing +the laws against rebellious citizens. He admits that the states +have surrendered the power to make treaties, coin money, and regulate +commerce, and yet we will probably have the novel and ridiculous +farce of a negotiation between the President and a state, for the +surrender of forts, and arsenals, and sovereignty. Congress can +do nothing, for the laws now are sufficient, if executed. Impeachment +is too slow a remedy. The constitution provided against every +probable vacancy in the office of President, but did not provide +for utter imbecility. + +"The people, alarmed, excited, yet true to the Union and the +constitution, are watching with eager fear, lest the noble government, +baptized in the blood of the Revolution, shall be broken into +fragments, before the President elect shall assume the functions +of his office. + +"What pretext is given for this alarming condition of affairs?-- +for every treasonable act has its pretext. We are told that the +people of the southern states _apprehend_ that Mr. Lincoln will +deprive them of their constitutional rights. It is not claimed +that, as yet, their rights have been invaded, but upon an _apprehension_ +of evil, they will break up the most prosperous government the +providence of God ever allowed to man. + +"We know very well how groundless are their apprehensions, but we +are not even allowed to say so to our fellow-citizens of the south. +So wild is their apprehension, that even such statesmen as Stephens, +Johnson, Hill, Botts and Pettigrew, when they say, 'wait, wait, +till we see what this Republican party will attempt,' are denounced +as Abolitionists--Submissionists. You know very well that we do +not propose to interfere in the slightest degree with slavery in +the states. We know that our leader, for whose election you rejoice +has, over and over again, affirmed his opposition to the abolition +of slavery in the District of Columbia, except upon conditions that +are not likely to occur; or to any interference with the inter- +state slave trade, and that he will enforce the constitutional +right of the citizens of the slave states to recapture their fugitive +slaves when they escape from service into the free states. We know +very well that the great objects which those who elected Mr. Lincoln +expect him to accomplish will be to secure to free labor its just +right to the territories of the United States; to protect, as far +as practicable, by wise revenue laws, the labor of our people; to +secure the public lands to actual settlers, instead of non-resident +speculators; to develop the internal resources of the country, by +opening new means of communication between the Atlantic and the +Pacific, and to purify the administration of the government from +the pernicious influences of jobs, contracts, and unreasoning party +warfare. + +"But some of you may say, all this is very well, but what will you +do to save the Union? Why don't you compromise? + +"Gentlemen, remember that we are just recovering from the dishonor +of breaking a legislative compromise. We have been struggling, +against all the powers of the government, for six years, to secure +practically what was expressly granted by a compromise. We have +succeeded. Kansas is now free. The Missouri restriction is now +practically restored by the incipient constitution of Kansas, and +safer yet, by the will of her people. The baptism of strife through +which she has passed has only strengthened the prohibition. There +let it stand. + +"But our political opponents, who have dishonored the word compromise, +who trampled, without a moment's hesitation, upon a compromise, +when they expected to gain by it, now ask us to again compromise, +by securing slavery south of a geographical line. To this we might +fairly say: There is no occasion for compromise. We have done no +wrong; we have no apologies to make, and no concessions to offer. +You chose your ground, and we accepted your issue. We have beaten +you, and you must submit, as we have done in the past, and as we +would have done if the voice of the people had been against us. +As good citizens, you must obey the laws, and respect the constituted +authorities. But we will meet new questions of administration with +a liberal spirit. Without surrendering our convictions in the +least, we may now dispose of the whole territorial controversy by +the exercise of unquestioned congressional power. + +"The only territory south of the line, except that which, by treaty +with Indian tribes, cannot be included within the jurisdiction of +a state, is New Mexico. She has now population enough for admission +as a state. Let Congress admit her as a state, and then she has +the acknowledged right to form, regulate, change, or modify her +domestic institutions. She has now a nominal slave code, framed +and urged upon her by territorial officers. Practically, slavery +does not exist there. It never can be established there. In a +region where the earth yields her increase only by the practice of +irrigation, slave labor will not be employed. At any rate, it is +better to settle all questions about slavery there, by admitting +the territory as a state. While a territory, it is insisted that +slavery shall be protected in it. We insist that Congress may +prohibit it, and that the people have an undisputed right to exclude +slaves. Why not, by terminating their territorial condition, +determine this controversy? The same course might now properly be +adopted with all the territories of the United States. + +"In each of the territories there are, now, small settlements +scattered along the lines of transit. Within five years, the least +populous will contain sufficient population for a Representative +in Congress. Dakota, Washington, Nevada, and Jefferson are destined +soon to be as familiar to us as Kansas and Nebraska. It is well +worthy the consideration of the old states, whether it is not better +to dispense with all territorial organizations--always expensive +and turbulent--and, at once, to carve the whole into states of +convenient size, for admission. This was the Jeffersonian plan, +which did not contemplate territories, but states. It was also +sanctioned by General Taylor, and, but for his death, would have +been adopted. + +This is an easy, effectual remedy, within the power of Congress, +and in its nature an irrevocable act. There is no necessity of an +amendment to the constitution. It is not at all probable that two- +thirds of both houses of Congress and three-fourths of the states +can agree to any amendments. Why attempt it, unless to invite new +contests, to again arouse sectional animosities? We know that if +Mexico is acquired the south will demand it for slavery, and the +north for free institutions. We must forego, for the present, new +conquests, unless the love of acquisition is stronger than the love +of domestic peace. + +"Suppose it to be conceded that the constitution should be amended, +what amendment will satisfy the south? Nothing less than the +protection of slavery in the territories. But our people have +pronounced against it. All who voted for Mr. Lincoln or Mr. Douglas +--over three million three hundred thousand citizens--voted against +this claim. Less than a million voted for it. Should the great +majority yield to a meagre minority, especially under threats of +disunion? This minority demand that slavery be protected by the +constitution. Our fathers would not allow the word 'slave' or +'slavery' in the constitution, when all the states but one were +slaveholding. Shall we introduce these words when a majority of +the states are free, and when the progress of civilization has +arrayed the world against slavery? If the love of peace and ease, +and office, should tempt politicians and merchants to do it, the +people will rebel. I assure you, whatever may be the consequence, +they will not yield their moral convictions by strengthening the +influence of slavery in this country. Recent events have only +deepened this feeling. + +"The struggle to establish slavery in Kansas; the frequent murders +and mobbings, in the south, of northern citizens; the present +turbulence and violence of southern society; the manifest fear of +the freedom of speech and of the press; the danger of insurrection; +and now the attempt to subvert the government rather than submit +to a constitutional election--these events, disguise it as you may, +have aroused a counter irritation in the north that will not allow +its representatives to yield merely for peace, more than is prescribed +by the letter and spirit of the constitution. Every guarantee of +this instrument ought to be faithfully and religiously observed. +But when it is proposed to change it, to secure new guarantees to +slavery, to extend and protect it, you invoke and arouse the anti- +slavery feeling of the north to war against slavery everywhere. + +"I am, therefore, opposed to any change in the constitution, and +to any compromise that will surrender any of the principles sanctioned +by the people in the recent contest. If the personal-liberty bills +of any state infringe upon the constitution, they should at once +be repealed. Most of them have slumbered upon the statute book +for years. They are now seized upon, by those who are plotting +disunion, as a pretext. We should give them no pretext. It is +always right and proper for each state to apply to state laws the +test of the constitution. + +"It is a remarkable fact that neither of the border free states-- +New Jersey, Pennsylvania, Ohio, Indiana, Illinois, nor Iowa--have +any such upon their statute books. The laws of these states, +against kidnapping, are similar to those of Virginia and Kentucky. +The laws of other states, so-called, have never operated to release +a single fugitive slave, and may be regarded simply as a protest +of those states against the harsh features of the fugitive slave +law. So far as they infringe upon the constitution, or impair, in +the least, a constitutional right, they are void and ought to be +repealed. + +"I venture the assertion that there have been more cases of kidnapping +of free negroes in Ohio, than of peaceable or unlawful rescue of +fugitive slaves in the whole United States. It has been shown that +the law of recapture and the penalties of rescue have been almost +invariably executed. Count up all the cases of rescue of negroes +in the north, and you can find in your newspapers more cases of +unlawful lynching and murder of white men in the south. These +cases have now become so frequent and atrocious, as to demand the +attention of the general government. The same article of the +constitution that secures the recapture of fugitives from service +and justice, also secures the rights of citizens of Pennsylvania +and Ohio to all the immunities and privileges of citizens of the +several states. No law has been passed by Congress to secure this +constitutional right. No executive authority interposes to protect +our citizens, and yet we hear no threats of retaliation or rebellion +from northern citizens or northern states. So, I trust, it ever +may be. + +"The great danger that now overshadows us does not arise from real +grievances. Plotters for disunion avail themselves of the weakness +of the executive to precipitate revolution. South Carolina has +taken the lead. The movement would be utterly insignificant if +confined to that state. She is still in the Union, and neither +the President nor Congress has the power to consent to her withdrawal. +This can only be by a change in the constitution or the acquiescence +of the people of the other states. The defense of the property of +the United States and the collection of the revenues need not cause +the shedding of blood, unless she commences a contest of physical +force. The increase, in one year, of our population is greater +than her entire population, white and black. Either one of several +congressional districts in the west has more white inhabitants than +she has. Her military power is crippled by the preponderance of +her slaves. However brave, and gallant, and spirited her people +may be, and no one disputes these traits, yet it is manifest she +is weak in physical force. This great government might well treat +with indulgence paper secession, or the resolves of her convention +and legislature, without invoking physical force to enforce the +laws among her citizens. + +"Without disrespect to South Carolina, it would be easy to show +that Shay's rebellion and the whisky insurrection involved the +government in greater danger than the solitary secession of South +Carolina. But the movement becomes imposing when we are assured +that several powerful states will very soon follow in the lead of +South Carolina; and when we know that other states, still more +powerful, sympathize with the seceding states, to the extent of +opposing, and perhaps resisting, the execution of the laws in the +seceding states. + +"In this view of the present condition of public affairs, it becomes +the people of the United States seriously to consider whether the +government shall be arrested, in the execution of its undisputed +powers, by the citizens of one or more states, or whether we shall +test the power of the government to defend itself against dissolution. +Can a separation take place without war? If so, where will be the +line? Who shall possess this magnificent capital, with all its +evidences of progress and civilization? Shall the mouth of the +Mississippi be separated from its sources? Who shall possess the +territories? Suppose these difficulties to be overcome; suppose +that in peace we should huckster and divide up our nationality, +our flag, our history, all the recollections of the past; suppose +all these difficulties overcome, how can two rival republics of +the same race of men, divided only by a line of a river for thousands +of miles, and with all the present difficulties aggravated by +separation, avoid forays, disputes, and war? How can we travel on +our future march of progress in Mexico, or on the high seas, or on +the Pacific slope, without collision? It is impossible. To +peacefully accomplish such results we must change the nature of +man. Disunion is war! God knows, I do not threaten it, for I will +seek to prevent it in every way possible. I speak but the logic +of facts, which we should not conceal from each other. It is either +hostilities between the government and the seceding states; or, if +separation is yielded peaceably, it is a war of factions--a rivalry +of insignificant communities, hating each other, and contemned by +the civilized world. If war results, what a war it will be! +Contemplate the north and south, in hostile array against each +other. If these sections do not know each other _now_ they will +_then_. + +"We are a nation of miliary men, naturally turbulent because we +are free, accustomed to arms, ingenious, energetic, brave and +strong. The same qualities that have enabled a single generation +of men to develop the resources of a continent, would enable us to +destroy more rapidly than we have constructed. It is idle for +individuals of either section to suppose themselves superior in +military power. The French and English tried that question for a +thousand years. We ought to know it now. The result of the contest +would not depend upon the first blow of the first year, but blood +shed in civil war will yield its baleful fruit for generations. + +"How can we avert a calamity at which humanity and civilization +shudder? I know no way but to cling to the government framed by +our fathers, to administer it in a spirit of kindness, but in all +cases, without partiality, to enforce the laws. No state can +release us from the duty of obeying the laws. The ordinance or +act of a state is no defense for treason, nor does it lessen the +moral guilt of that crime. Let us cling to each other in the hope +that our differences will pass away, as they often have in times +past. For the sake of peace, for the love of civil liberty, for +the honor of our name, our race, our religion, let us preserve the +Union, loving it better as the clouds grow darker. I am willing +to unite with any man, whatever may have been his party relations, +whatever may be his views of the existing differences, who is +willing to rely on the constitution, as it is, for his rights; and +who is willing to maintain and defend the Union under all circumstances, +against all enemies, at home or abroad. + +"Pardon me, gentlemen, for writing you so fully. I feel restrained, +by the custom of the House of Representatives, from engaging there +in political debate; and yet I feel it is the duty of every citizen +to prepare his countrymen for grave events, that will test the +strength and integrity of the government. + +"Believing that our only safety is in a firm enforcement of the +laws, and that Mr. Lincoln will execute that duty without partiality, +I join my hearty congratulation with yours that he is so soon to +be President of the United States. With great respect, I remain, +very truly, + + "Your obedient servant, + "John Sherman. +"Messrs. Wm. Reid, D. J. Cochran, L. S. Fletcher, H. E. Wallace, +Chas. O'Neill, _Committee_." + +The leading events in the progressive secession may be briefly +stated. The States of South Carolina, Georgia, Mississippi, Florida, +Louisiana, Alabama, Arkansas, Texas, North Carolina, Tennessee, +and Virginia, severally in the order named, adopted ordinances of +secession. Each of them committed acts of war against the United +States. They seized forts, navy yards, arsenals, customhouses, +post offices and other public buildings of the United States. +South Carolina, on the 27th of December, 1860, seized Fort Moultrie +and Castle Pinckney, a light-house tender, and a schooner. On the +31st, she took possession of the United States arsenal, post office, +and customhouse in Charleston, the arsenal containing seventy +thousand stand of arms and other stores. On the 9th of January, +1861, she took possession of the steamer "Marion" at Charleston, +and on that day the "Star of the West" was fired upon. + +Georgia, on the second day of January, 1861, took possession of +Forts Pulaski and Jackson and the United States arsenal. On the +12th of January, she took possession of the arsenal at Augusta, +containing howitzers, cannon, muskets and large stores of powder, +ball and grape. On the same day she seized the United States +steamer "Ida." On the 8th of February, she took possession of all +the money received from customs. On the 21st, she seized three +New York vessels at Savannah. Florida, on the 12th of January, +1861, took possession of the navy yards at Forts Barrancas and +McRae; also the Chattahoochie arsenal, containing 800,000 cartridges +of different patterns and 50,000 pounds of gunpowder. + +Alabama took possession of Fort Morgan, the Mount Vernon arsenal, +some pieces of cannon, and large amounts of munitions of war. She +took possession also of the revenue cutter "Lewis Cass." + +Mississippi, on the 20th of January, seized the fort at Ship Island +and the United States hospital on the Mississippi River. + +On the 11th of January, Louisiana took possession of Forts Jackson, +St. Philip, and Pike, and the arsenal at Baton Rouge containing +fifty thousand small arms, twenty heavy pieces of ordnance, three +hundred barrels of powder and other military supplies. On the +28th, she took possession of all commissary and quartermaster stores +in the possession of the United States officials within her borders. +On the first of February, she seized the mint and customhouse +containing $599,303 in gold and silver. + +Texas, on the 20th of February, took Forts Chadbourne and Belknap +with all the property of the Overland Mail Company. On the 25th, +General Twiggs, an officer of the army of the United States, +traitorously surrendered all government stores in his command, +estimated at $1,300,000 in value, including money and specie, thirty- +five thousand stand of arms, twenty-six pieces of mountain artillery, +and other military stores. + +On the 2nd of March, she seized the revenue cutter "Dodge" and Fort +Brown. + +Arkansas seized the arsenal at Little Rock, containing nine thousand +small arms, forty cannon, and a quantity of ammunition. + +Virginia, according to the statement of Governor Letcher, would +have seized Fortress Monroe, but that it was firmly held by national +troops. + +These were some of the acts of war committed by the seceding states +before the inauguration of Abraham Lincoln. + +What was done by the administration of James Buchanan to meet these +acts of war? The answer to this question is a most painful confession +of feebleness, vacillation and dishonor. It was shown conclusively +that Floyd, the Secretary of War, during 1860 transferred from +Springfield and other armories to southern arsenals 65,000 percussion +muskets, 40,000 altered muskets and 10,000 rifles. On the 20th of +October, he ordered 40 columbiads and four 32 pounders to be sent +from the arsenal to the Fort, at Galveston in Texas, the building +of which had hardly been commenced. It was shown by a report of +a committee of the House that the vessels of the United States were +dispersed by the Secretary of the Navy to distant ports, for the +purpose of preventing their use in the defense of the property of +the United States. + +The Mobile "Advertiser" said: + +"During the past year, 135,430 muskets have been quietly transferred +from the northern arsenal at Springfield alone, to those in the +southern states. We are much obliged to Secretary Floyd for the +foresight he has thus displayed in disarming the north and _equipping +the south for this emergency_." + +Jefferson Davis, on January 9, 1860, in introducing into the Senate +a bill to authorize the sale of public arms to the several states +and territories, significantly said: "There are a number of +volunteer companies wanting to purchase arms, but the states have +not a sufficient supply." + +This bill was agreed to by the Senate by a party vote, yeas 28, +nays 18. In the House the bill was never reported. + +Mr. Buchanan, in his annual message at the beginning of the 2nd +session of the 36th Congress, announced the startling doctrine that +a state could not be coerced by the general government, and said: + +"After much serious reflection, I have arrived at the conclusion +that no such power has been delegated to Congress nor to any other +department of the federal government. It is manifest, upon an +inspection of the constitution, that this is not among the specific +and enumerated powers granted to Congress; and it is equally apparent +that its exercise is not 'necessary and proper for carrying into +execution' any one of these powers." + +Again he says: + +"Without descending to particulars, it may be safely asserted that +the power to make war against a state is at variance with the whole +spirit and intent of the constitution. . . . + +"The fact is, that our Union rests upon public opinion, and can +never be cemented by the blood of its citizens shed in civil war. +If it cannot live in the affections of the people it must one day +perish. Congress possesses many means of preserving it by +conciliation; but the sword was not placed in their hand to preserve +it by force." + +This doctrine, if acquiesced in, would leave the United States +utterly powerless to preserve its own life, whatever might be the +exigencies, even against the most insignificant state in the Union. +It was manifest that while Buchanan remained President, and Commander- +in-Chief of the army and navy, it was utterly futile to resist the +secession of the least of these states, or even to protect the +public property in them. + +On the 4th of December, 1860, the House of Representatives organized +what is known as the "committee of thirty-three," of which Mr. +Corwin, of Ohio, was chairman. So much of the President's message +as related to the perilous condition of the country was referred +to it. Propositions of all kinds were sent to the committee, but +the final result was, as anticipated, a disagreement upon all the +measures proposed. + +On the 16th of January, 1861, Mr. Crittenden offered his celebrated +resolutions, proposing certain amendments to the constitution of +the United States, in relation to slavery, but they were rejected +in the Senate and were not acted upon in the House. + +A peace conference was held at Washington, at the request of the +legislature of Virginia, composed of delegates from the several +states appointed by the governors thereof. John Tyler was president +and Thomas Ewing, of Ohio, was one of the most active and influential +members of the conference. It sat during nearly all the month of +February and recommended seven articles of amendment to the +constitution. These propositions were adopted by the conference +and reported to the Senate on the 2nd of March, and were rejected +by a vote of 3 yeas and 34 nays. Subsequently they were again +offered by Mr. Crittenden and rejected by a vote of 7 yeas and 28 +nays. They were presented to the House on the 1st of March, 1861, +and were there rejected. + +A Senate committee of 13 was organized on the 18th of December, +1860, to consider the condition of the country, but its report was +disagreed to by the Senate. Many other propositions of adjustment +were made both in the Senate and House, but none of them were agreed +to. Not only were no measures adopted to prevent secession, but +it was proposed by Mr. Mason, that, to avoid the possibility of a +conflict between the forces of the army and navy and of the seceding +states, all the laws providing for the use of the army in aid of +the civil authorities in executing the laws of the United States, +should be suspended and made inoperative in those states. These +were the laws passed during the term of President Jackson and, at +his earnest request, to enable the government to enforce the laws +of the United States against the opposition of the State of South +Carolina. It was a striking presentation of the difference between +General Jackson and James Buchanan. + +Mr. Hunter, of Virginia, proposed to retrocede to the seceding +states, the property of the United States. The last act of Jefferson +Davis was to offer a joint resolution providing: + +"That upon the application of a state, either through a convention +or legislature thereof, asking that the federal forces of the army +and navy may be withdrawn from its limits, the President of the +United States shall order the withdrawal of the federal garrisons, +and take the needful security for the safety of the public property +which may remain in said state. + +"That whenever a state convention, duly and lawfully assembled, +shall enact that the safety of the state requires it to keep troops +and ships of war, the President of the United States be, and he is +hereby authorized and directed to recognize the exercise of that +power by the state, and by proclamation to give notice of the fact +for the information and government of all parties concerned." + +On the 11th of February, 1861, Burton Craige, of North Carolina, +offered a joint resolution: + +"That the President of the United States be, and is hereby required +to acknowledge the independence of said government (The Confederacy +of the United States South) as soon as he is informed officially +of its establishment; and that he receive such envoy, ambassador, +or commissioner as may or shall be appointed by said government +for the purpose of amicably adjusting the matters in dispute with +said government." + +Such was the hopeless condition of the United States in the last +months of the administration of James Buchanan. It would appear +from the resolute action of the seceding states, their union as +Confederate States, the hopeless imbecility of the President of +the United States, the presence of the seceded traitors in both +houses of Congress, the weakness and feebleness of that body, left +but little hope for the preservation of the Union. The future +presaged a civil war, and opened up a dark prospect, a discouraging +example for future republics, but the 4th of March came, and a new +life was infused into the national councils. + +The second session of the 36th Congress commenced on the 3rd day +of December. The message of the President I have already commented +upon. It was regarded as a feeble wail of despair, an absolute +abnegation of the powers of the general government. No expectation +or hope was indulged in that the President would do any act or say +any word to arrest or delay the flagrant treason, then being +committed in South Carolina. "After me the deluge" was written on +every page of his message. Our only hope was in the good time +coming, when, at the close of his term, he would retire to private +life. + +Having charge of the appropriation bills as chairman of the committee +of ways and means, of the 36th Congress, I was only solicitous to +secure the passage of these bills, so that the new administration +would have money to meet the current wants of the government. +Within a few days, all these bills were reported, and were pushed +forward and passed at an early period of the session., + +I purposely postpone consideration of the financial condition of +the United States during this session so as to consider it in +connection with the measures adopted at the called session in July, +1861. + +The House of Representatives was almost constantly occupied in +considering and rejecting the many schemes "to save the country," +already referred to. The only political speech I made was in reply +to an ingenious speech of my colleague, George H. Pendleton, made +on the 18th day of January, 1861. I replied on the same day without +preparation, but with a lively appreciation of the dangers before +us. As I believe that it states fully and fairly the then condition +of the impending revolution, I insert extracts from it here: + +"I have listened with respect and attention to all that has fallen +from my colleague. Much that he has said I approve; but it seems +to me that instead of appealing to this side of the House for +conciliation, kindness and forbearance, he should appeal to those +around him, who alone, provoke the excitement now prevailing in +this country. + +"He says the army should not be used to coerce a state. If by this +he means that the army should not be used to conquer a state, to +compel her to be represented, to maintain the courts or post offices +within her limits, to burn her cities or desolate her fields, he +is entirely correct. I do not believe any administration will +pursue such a policy. But, sir, we have a government, a great +government, to maintain. It is supreme within the powers delegated +to it; and it is provided with ample authority to protect itself +against foreign or domestic enemies. It has the exclusive right +to collect duties on imports. It is the exclusive owners of forts, +arsenals, navy yards, vessels, and munitions of war. It has a +flag, the symbol of its nationality, the emblem of its power and +determination, to protect all those who may of right gather under +its folds. It is our duty, as the representatives of this government, +to maintain and defend it in the exercise of its just powers. Has +it trespassed upon the rights of a single individual? Does any +citizen of South Carolina allege that this government has done him +wrong? No man can say that. The government for years has been in +the hands of the Democratic party, whose power and patronage have +been controlled chiefly by southern citizens; and now, when the +Republican party is about to assume the reins, these citizens seek +to subvert it. They organize revolution under the name of +secession. + +"What have they done? The State of South Carolina has seized the +customhouse in the city of Charleston, has closed that port, and +prevented the United States from the exercise of their conceded +exclusive power of collecting the revenue from imports. It has +taken, by force, money from the treasury of the United States, and +applied it to its own use. It has seized the arms and munitions of +war of the United States deposited in arsenals within the conceded +exclusive jurisdiction of the United States, and turned them against +the army of the United States. It has seized a loyal citizen of +the United States engaged in the discharge of his duty, imprisoned +him, and threatened his life, for the exercise of a plain constitutional +duty, charging him with treason against the State of South Carolina. +It has taken citizens of different states rightfully and peacefully +attending to their business, insulted them, inflicted the most +degrading indignities upon them, and then forcibly expelled them. +It has raised a military force of artillery, cavalry, and infantry, +with the avowed purpose of expelling, or, to use their own chosen +word, coercing, the United States from the forts, arsenals, and +other property of the United States. When Major Anderson removed +from Fort Moultrie to Fort Sumter, it seized Fort Moultrie, Fort +Pinckney, and other property of the United States. + +"More recently they fired upon a vessel in the employ of the United +States, conveying reinforcements and provisions to our troops. In +this act of war, they used the cannon and munitions of war paid +for out of our treasury. Forts ceded by the State of South Carolina +to the United States were used to expel a vessel of the United +States in the pursuit of its lawful commerce. WHen the 'star-spangled +banner' was hoisted to her mast-head, as a sign of nationality, +appealing to all the patriotic recollections which cluster around +it--your flag, my flag, the flag of Virginia, of Ohio, of Kentucky, +of Massachusetts, the flag of every state and of the whole Union, +the rustle of whose folds has so often excited the pride and +patriotic ardor of Americans in every part of the habitable globe +--that flag, invoked for the protection of an unarmed vessel, +carrying provisions to our own troops, was fired upon and dishonored. +An act of war by citizens of the United States, and therefore an +act of treason, was applauded by officers and citizens of that +state, and perhaps by those of other states. It was not an act of +war against you and me merely, but against every loyal and patriotic +citizen of this great republic. Up to that moment we had done +nothing. This government had been more forbearing, more quiet, +more complacent, under this series of offenses, than any government +instituted since the foundation of governments. + +"And now, Mr. chairman, the same lawless violence is breaking out +in other parts of the country. Forts, arsenals, navy yards, and +vessels of war, intrusted without defense to the patriotism of the +people, have, upon one pretext or another, been seized, and are +now held by lawless force. Upon the recommendation of Members of +Congress, Fort Pulaski was seized by troops, under an order from +the Governor of Georgia. I suppose there is not a Member upon the +opposite side who will declare that it would be given up peacefully +to the troops of the United States if it were demanded by our +national authorities. More recently still, the navy yard at +Pensacola was taken by an armed force, under the order of the +Governor of Florida. I have here a telegraphic dispatch sent to +this government: + +'_January 12, 1861_.--Commissioners appointed by the Governor of +Florida with a regiment of armed men at the gate, demanded the +surrender of this navy yard, having previously taken possession of +one of the magazines. I surrendered the place and struck my flag +at half-past one o'clock, p. m., this day.' + +"Mr. chairman, suppose Great Britain, suppose France, suppose all +the powers of the world combined, had thus outraged the flag of +the United States; would not every one of us have demanded men and +money to wipe out the indignity, and to repel further like assaults, +at whatever hand? Yet, sir, the Governor of Florida, before the +State of Florida had seceded, goes with an armed force, seizes upon +our property, and turns the guns of the people of the United States +against the army and the navy of the United States. I am also told +--with what truth I do not know--that cannon are planted upon the +banks of the Mississippi River, at or near the city of Vicksburg, +in the State of Mississippi, and that our steamboats are now +compelled to land there and to give an account of themselves. We +do not know at what moment they may be subject to tribute and +seizure. To whom? To the State of Mississippi? I agree with all +my colleagues from the State of Ohio, from both sides of the House, +that there is one thing immutable--a law that is a higher law. It +is, that the Mississippi River, gathering all the rivulets of the +northwest into one current, must be permitted to float our commerce, +uninterrupted and untrammeled, to the sea, or thousands of men will +float down upon its waters and make it free. + +"No one doubts, I suppose, that the forts at the mouth of the +Mississippi are in the possession, not of the troops of the United +States, but troops that will resist the troops of the United States. +There is no doubt that Baton Rouge has been seized; no doubt, sir, +that act after act of war has been repeated. + +"I ask you, as the representative of a brave people, what shall we +do? The question is not, shall we coerce a state? but shall we +not defend the property of the United States against all enemies, +at home and abroad, here or wherever the flag of our country floats? +Must this government submit to insult and indignity? Must it +surrender its property, its flag, its nationality? Do you, gentlemen +from Virginia, whose great statesman had so large a share in laying +the foundations of our government, desire to see it thus dishonored? +Are you ready to join excited men, who will not listen to reason; +who even spurn your patriotism as timidity; who reject your counsels, +and who would drag you as unwilling victims at the heel of their +car of juggernaut, crushing under its weight all hope of civil +liberty for ages to come? Are you aroused into madness by political +defeat? + +"Sir, it was but the other day that I was told by a distinguished +citizen of an absolute monarchy--and the remark made a deep impression +on my mind--that he deplored the events now transacting around us; +that he deplored what he considered the inevitable fall of this +republic, but, said he, one good will result from it; it will stop +forever the struggle for free institutions in Europe; it will +establish upon a secure basis the existing governments of the Old +World. I felt that the remark was true. If this government cannot +survive a constitutional election; if it cannot defend its property +and protect our flag; if this government crumbles before the first +sign of disaffection, what hope is there for free institutions in +countries where kings and nobles and marshals and hereditary +institutions and laws of primogeniture have existed for ages? Sir, +when the masses of any people, inspired by the love of country, +have demanded in modern times the right of self-government, they +have been pointed to France with its revolution of 1798, to South +America, where changing republics rise and disappear so rapidly +that not ten men in this House can tell me their names, and also +to Mexico. God forbid that the despots of the Old World should +ever adorn their infernal logic by pointing to a disrupted Union +here! It is said, with a poet's license, that-- + + 'Freedom shrieked as Kosciusko fell.' + +"But, sir, freedom will die with the fall of this republic, and +the survivors of the calamity will find springing into existence +military despotisms north, south, east and west. Instead of two +divisions, there will be many divisions. The condition of this +country will be worse than that of Mexico, because we are a braver, +a more powerful, people, who will fight each other with greater +tenacity. If this republic is dissolved, the man now lives who +will be the Napoleon of some section thereof. All history teaches +us that whenever a free government is disrupted a military despotism +of force is substituted for the will of the people; and we have no +right to suppose that our country will be an exception to the +general rule. + +"I appeal to the Representatives of the border states to arrest +the progress of this storm for a little time, at least. Let us +see whether there is any hope for peace and conciliation. If there +is not, then, if we cannot agree, let us fight; but if we can agree, +let us do it like men, and not be hurried off by wild and insane +feelings of rage and disappointment, by the weakest state in this +confederacy. Sirs, if you do calm this storm, peace will again +smile upon our country. If you do not, I see nothing but civil +war before us. My colleague may paint in beautiful language the +blessings of peace; and cry 'peace! peace!' when there is no peace; +but, Mr. chairman, you and I see already rising in the west, where +military feeling is so rife, a spirit which will not brook much +longer the insults already cast upon the flag of our country. I +do not threaten, for I dread--nor for you or me, or the Members of +this House, for I suppose we have the ordinary courage of our race, +and we are but atoms in the storm--but thousands and millions of +men, like us, will regret the day when this government was hurried +into revolution, without opportunity for parley or delay. + +"If your people will not aid the government in maintaining the +public property in the seceding states, then we must do it in spite +of you, or perish in the attempt. We must not allow the government +to crumble at our feet. You can arrest this movement, and you +alone can do it. I ask you, gentlemen from Virginia and the south, +does not your blood boil with indignation when you read of the +surrender of our forts and the dishonor of our flag? Are they not +yours as well as mine? Has the feeling of sectionalism become +stronger than love of country? I ask if the same patriotism which +brought your fathers and mine into common battlefields, amid all +the storms of the Revolution, does not now rebel when you are forced +into a civil war by the madness of a few men in the southern states? +Sir, I do not believe it. For the moment, under the smart of +imaginary wrongs, under the disappointment of political defeat, +your people may be hurried into acts of madness; but when returning +reason comes, woe be to them who have led them astray! Then a +single wave of the star-spangled banner will silence the miserable +party cries with which you have misled them. + +"Let us not deceive ourselves with the idea that this government +can be broken up on Mason and Dixon's line, or upon any other line, +without involving us in all we dread. There is no man, with a head +to reason and a heart to feel, who does not shudder at the idea of +civil war. Do you suppose that this government can be divided into +two, according to the plan of the gentleman from Virginia (Mr. +Garnett), with this capitol, with the mouth of the Mississippi, +with the territories, and a thousand things that unite us, without +provoking civil war? Why, sir, we may do all we can to prevent +it; we may throw ourselves into the breach; we may stand up and +yield everything, or cringe down and yield everything; but I tell +you that will not stop the surging waves. If this government is +divided, though we may agree to separate in peace--though every +man here may sign the bond--we know that events hurriedly running +forward will bring these two sections in hostile array against each +other; and then, what a war is there, my countrymen! I know that +your southern people are brave, spirited, active, quick; no man +doubts that; but if you have made any misapprehension about the +northern people--if you suppose that, because they are cold, because +they are not fired by your hot blood, they will not perform their +duty everywhere, you are very much mistaken. We are the equals of +each other; we are of the same blood, the same parentage, the same +character; your warm sun has quickened your blood, but our cold +climate has steadied our intellects and braced our energies. + +"I again repeat, Mr. chairman, that we should not allow ourselves +to be deceived by words. The question is not whether the United +States will coerce a state, but whether a state shall coerce the +government; whether this noble fabric, devised by our fathers, +shall fall without a blow. I appeal to you again; I appeal to the +Representatives of all the states, whether we shall allow Fort +Sumter, the only place where our flag floats in the harbor of +Charleston, to be surrendered at discretion. + +"For one, I say, NEVER! NEVER! Even if to-morrow I should vote to +give South Carolina license to leave the confederacy, if I had the +power, yet, while that flag floats, it is the bounden and sacred +duty of this government to protect it against all enemies, and at +all hazards. I had fondly hoped, while we disagreed, and while I +knew that our disagreement was marked and decided, that you, +gentlemen of the south, would yourselves take the lead in the +defense of our property and our honor; therefore I sat silent. I +had hoped that, while we were discussing, you would insist upon +the protection of the property of the United States, and that our +flag should not be dishonored until we separated, in peace or in +war. + +"I was much struck by a remark made the other day by the honorable +Senator from Mississippi (Mr. Davis), that if we could not agree +with each other, we ought to separate in peace--that we should take +this old flag, and fold it away, and keep it as a much-loved memento +for us all. But, sir, we cannot do that now. It has been lowered +and tarnished, and we all know and feel it. + +"I was surprised that my colleague (Mr. Pendleton) did not vote +for the resolution offered by the gentleman from New Jersey, in +regard to Major Anderson. I hoped that the Ohio delegation would +unite in favor of the resolution. I was still more surprised, +allow me to say to the Representatives of Kentucky, that when their +own gallant son had but performed his bounden duty they should have +refused to vote to sustain him in his removal from Fort Moultrie +to the strongest point in his command. + +"The resolution simply expressed a desire to enforce the laws and +to preserve the Union--no more. I am willing to stand on this +platform. I can join heartily with all those who made that pledge, +whatever else they may think or believe about the questions that +divide our people. If we can stand by each other, if our constituents +will stand by us in that emphatic declaration, I do believe the +good ship that has borne us thus far on a prosperous voyage will +outlive the storm. But, sir, if we yield too far to the fury of +the waves; if we now surrender, without resistance, the forts, +arsenals, dock-yards, and other property of the government, we only +demonstrate that we are not fit for the duties assigned us; and, +if our names survive our times, they will only be recorded as those +of a degenerate race, who had not the manhood to preserve what +their fathers won. + +"Gentlemen cannot come here and say, 'We demand this; or, we demand +that; stand and deliver.' That is the language of the highwayman. +This is a great tribunal, where men reason and judge and weigh and +doubt and hesitate and talk--and we have a good deal of that. No +section and no state can, because the presidential election has +gone against it, say, 'We will have this change in the constitution, +or we will fire upon your flag; we will have that change in the +constitution, or we will seize upon your forts.' That is not the +principle upon which this government was founded. Mr. Jefferson, +when elected President in 1801, declared the true principle. He +said it was the duty of all good citizens to obey the constitution; +to submit to a constitutional election; and he congratulated the +country that the Federalists were willing to give the Democrats a +fair trial. . . . + +"Under the grave responsibility upon which we are acting, I feel +it to be my duty to you, my fellow Members, and to my countrymen, +north and south, to say frankly, that, in voting for this army +bill, I vote with the expectation that the army will be used in +protecting the acknowledged property of the United States, in +recovering that which has been unlawfully taken, and in maintaining +the Union. + +"It may be said that the gravity of the events that surround us +demands a greater force than is provided by this bill. The regular +army is a mere skeleton. The present force will scarcely defend +our frontier from Indian incursions; but it forms a nucleus capable +of any re-enforcement demanded by the exigencies of the times. I +do not contemplate, in any event, hostile invasions of the soil of +any state, unless demanded for the defense of the acknowledged +property of the United States. It is the duty of the government +to suppress insurrection in a state; but in this event the military +power can only be used in strict subordination to the civil authority. +If the civil authority refuse to call for such aid, or suppress +the courts, the military power cannot interfere. If the courts +are closed, the duties of postmasters must necessarily be suspended. +No doubt this measure will soon be adopted. If the revenue is +refused, or cannot be collected, then goods cannot be imported, +and ports must be closed. If a state shall, in violation of the +constitution, undertake to regulate commerce, then her commerce +must be suspended. + +"No doubt other measures can be devised that will preserve the +peace of the country until the people of the states may confer in +a constitutional way, unless one or more of the seceding states +shall, by military force, shed the blood of their fellow-citizens, +or refuse to surrender to the proper authorities the acknowledged +property of the government. I know that all the gentlemen around +me must deeply deplore a civil war, especially if that war shall +involve the fate of this capital and the disruption of the government. +No man can contemplate the inevitable results of such a war without +the most serious desire to avert it. It is our duty as Members of +the House, it is the duty of Congress, I am happy to say it is now +the acknowledged duty of the President, as it is of the incoming +administration, to use forbearance to the extremest point. Let +not physical force be arrayed in civil war until the last hope of +peace and conciliation has been exhausted; then let each branch of +the government, acting in concert with each other, perform its +respective duties, though the heavens fall! + +"What can we do for peace and conciliation? I anticipate at once +your reply; you say, 'Let us compromise; yield what we demand of +you. Let us compromise, and we will preserve the Union; civil war +will be averted.' This, I know, is the earnest appeal of patriotic +men in the southern states, who would gladly give their lives to +stop the march of treason in those states. How useless it is to +talk about compromises, concessions, conciliation, adjustment, +when, if everything was conceded, the integrity of the government +may be broken up by a majority of a single state. If we hold this +Union, and all the rights it secures to us, and all the hopes we +have upon it, upon the whim or will of a single state, then, indeed, +it is the weakest government ever devised by man. If a single +state may destroy our nationality, then, indeed, is the wisdom of +our fathers the wisdom of babes. We can no longer talk about the +weakness of the old confederacy or anarchy of Mexico. + +"Sir, we owe it as the most sacred of duties to put down this +heresy. If it now fortifies itself by sectional animosities, if +it rises from party rebellion to sectional and civil war, still it +must, and will, be met with determined resistance. Upon this point, +I am glad to say, the people of Ohio are united, if the unanimous +voice of the legislature of that state is a true indication. + +"Again, I say, what is the use of concession, conciliation, or +compromise, when, if we yield everything you demand, you cannot +say to us 'It will save us from disunion or war?' Are we not in +danger of quarreling about terms of conciliation, when traitors +are overthrowing the government we wish to preserve? Are we not +dividing ourselves for their benefit? What will satisfy South +Carolina and Florida and Mississippi and Alabama? They want +disunion, and not compromise or conciliation. The Democratic party +would not agree to their terms, and they seceded from the Charleston +and Baltimore conventions. Is it likely that we will yield what +our northern Democratic friends could not yield? Can you expect +this 'black Republican party,' as you please to call it, will yield +to you what your northern Democratic associates dare not? It is +utterly idle to talk about any such terms of concession. I do not +believe any terms which our people could yield, and preserve their +own self-respect, would satisfy South Carolina, Florida, or some +of the other southern states, because they are bent upon disunion. + +"We know that gentlemen who represented South Carolina on this +floor, if the newspapers correctly report them, declared in the +Charleston convention, held recently, that they had brooded over +this matter for long years, and that they only sought an opportunity, +an occasion, or, if I may use the word, a pretext, for the secession +of the State of South Carolina and the disruption of the Union. +Some stated that they had brooded over disunion and prayed for its +consummation since boyhood. We know, sir, that the seeds of this +revolution were sowed in the time of Andrew Jackson and John C. +Calhoun. We know that in 1832 the doctrines upon which this +revolution is going forward were initiated, and from that time the +young men of South Carolina have been educated in the school of +disunion. They have cherished these doctrines in their innermost +hearts. All the concessions we might make, all the compromises we +could agree to, all the offerings of peace we could make for the +salvation of the Union, would not be able to secure the desired +end, if South Carolina could prevent it. + +"Again, we might, on this side, properly say we have done nothing +to impair any constitutional right. We propose to do nothing to +infringe yours. We have succeeded in a constitutional way in +electing a President of the United States. All we ask is that he +may be inaugurated in peace, and may develop his policy in the +usual manner. We can add that this is the demand of all our people, +not only of those who voted for Mr. Lincoln, but of every loyal +citizen. You tell us your people are excited and alarmed, that +they apprehend that an overwhelming anti-slavery element is about +to be inaugurated in power that will, directly or indirectly, affect +the constitutional rights of your states. + +"Perhaps you will confess, what you know to be true, that for +political purposes, in the struggle of partisans for ascendancy, +both parties in the south have united to fire the southern mind +against the hated 'black Republicans' of the north. Speeches have +been distorted, single sentences have been torn from their context +and made to deceive and mislead. Garrison, Wendell Phillips, +Seward, Lincoln and latterly Douglas, have been mixed in a hated +conglomerate, and used to excite your people. A philosophic opinion +of Mr. Seward has been construed as the statement of a settled +purpose to overthrow slavery in the states, although in the very +paragraph itself all idea of interference by the people of the free +states with slavery in the slave states is expressly excluded. It +is but a year since you inflamed your constituents because some of +your fellow-Members recommended, without reading, a book written +by one of your own citizens, containing obnoxious opinions about +slavery. Nearly all of you gave birth, vitality, and victory to +the Republican party, by adopting a policy you now join in condemning. +Some of you broke down the only political organization that could +compete with us, and thus gave us an easy victory. You have all +contributed, more or less, in perverting the public mind as to our +principles and purposes. And I tell you, gentlemen, that when you +call the Republican party an abolition party, in the sense you use +the word abolition; when you quote from Garrison, Wendell Phillips, +and from like extreme men, and circulate their opinions all over +the south, telling the people of your states that the people of +the north have been educated in these sentiments, profess them, +and are going to put down slavery in the states, you do a great +injustice to the intelligence and the safety of your people. + +"I have heard here, over and over again, this course of agitation, +pursued only the other day in the Senate of the United States. +Mr. Douglas quoted from one of the speeches of Mr. Lincoln that +passage so familiar to us all, that, in his opinion, that states +would at some day be all slave or all free. Sir, in this time when +the people of the southern states are in a storm of excitement, +that speech of the Senator from Illinois is sent over those states +as tending to show that Mr. Lincoln would in some way interfere +with slavery in the states. Mr. Lincoln answered this inference +with a solemn disclaimer over and over again on the same 'stump' +with that Senator. I ask whether it was just to quote the opinion +without giving the disclaimer? It certainly was not. We might +answer all you say by declaring that the Republican party does not +propose to interfere with your constitutional rights. I have no +doubt that the administration of Mr. Lincoln will carry out the +doctrines of the Chicago platform; but not the platform as you +pervert it. Sir, it will convince the southern people that all +the things said about us are unfounded. What, then, will be the +fate of hundreds of politicians in the southern states who have +stirred their people up to the present intense excitement? + +"Yet the baptism of misrepresentation, through which this Republican +party has thus far advanced, does not excuse us from doing all in +our power to produce conciliation, harmony, peace, quiet, a fair +and honest adjustment of all the difficulties that surround us. . . . + +"Now, Mr. chairman, I have gone over the whole field. I have given +my views, speaking for no other man, frankly and fearlessly, and +I will stand by them now and in the future. I have given you my +opinion upon all these points. I tell you that this whole controversy +was fought and won by us two years ago, and all you have to do now +is to admit Kansas. That is the only act of power now needed. +There let it stand. Let us live together like a band of brothers. +If we cannot agree with you about slavery, why, you do not agree +with us. I know there has been a great deal of intemperance of +language on this subject; but I ask, if it has been used upon our +side, has it not been used upon yours? If there has been harsh +and violent words used, I have not uttered them that I know of. +If I have, I beg every man's pardon; because I think that violent +language, calculated to stir up excitement and agitation, ought +not be used in a deliberative assembly. I ask you if you have not +sins to repent of, if we have? Let us be at peace. Let us go on +with the administration of the government kindly, harmoniously, +hopefully, trusting in that providence of Almighty God which has +thus far guided and guarded us, until this nation has become a +marvel to the world. Can we not go on in the same way in which we +have gone on in the past? Why not let the Republican administration +be inaugurated in peace and quiet? Try it in the name of God! +Are you cowards, that you would flee from an apprehension? I know +you are not. Stand by the old ship of state! Give the Republican +administration a fair chance. If it does not do right, you will +find thousands--ay, millions--in the northern states who will stand +by you. I believe it will do right. Give it a trial. That is +all we ask, and what we demand at all hazards." + +The delegation from Ohio, during this Congress, was regarded as a +very strong one. I do not disparage any by a brief reference to +a few. + +Thomas Corwin was, by far, the most distinguished member of the +delegation. I have already referred to his eminence as a popular +orator. His speech against the Mexican War, though unfortunate as +a political event, has always been regarded as one of the most +eloquent ever made in either House of Congress. His speech in +reply to Crary, of Michigan, is still remembered as the best specimen +of humorous satire in our language. He had served in the legislature +of Ohio, as a Member of Congress for ten years, as Governor of +Ohio, as a Member of the Senate, and as Secretary of the Treasury. +After an absence from public life for six years, he was elected a +Member of the 36th Congress. Here he was regarded as the "peacemaker" +of the House. In the contest for speaker, he made a long speech, +in which he exhibited marked ability, humor, pathos and persuasive +eloquence. As chairman of the committee of thirty, he did all that +man could do to quiet the storm, to compromise and soothe the +contending factions, but this was beyond human power. He was re- +elected to the 37th Congress, but in 1861 was appointed minister +to Mexico by Mr. Lincoln. In December, 1865, he attended a party +of his Ohio friends, at which I was present. He was the center of +attraction, and, apparently, in good health and spirits. He was +telling amusing anecdotes of life in Ohio "in the olden times," to +the many friends who gathered around him, when, without warning, +he suffered a stroke of apoplexy and died within two or three days, +leaving behind him none but friends. Tom Corwin, "the wagon-boy," +had traveled through all the gradations of life, and in every stage +was a kind friend, a loving father, a generous, noble and honest +man. + +The life of George H. Pendleton was a striking contrast to that of +Corwin. He was a favorite of fortune. His father was a distinguished +lawyer and a Member of Congress. George had the advantage of a +good education and high social position, a courtly manner, a handsome +person and a good fortune. He served several terms in the House +of Representatives and six years in the Senate. He was the candidate +for Vice President on the Democratic ticket with McClellan, and a +prominent candidate for nomination as President in 1868. He was +minister to Germany during the first term of Cleveland as President. +He died November 24, 1889. My relations with him were always +pleasant. + +Samuel S. Cox was an active, industrious and versatile Member of +Congress for more than twenty years. He was born in Ohio, graduated +at Brown University, was admitted to the bar, but, I believe, rarely +practiced his profession. His natural bent was for editorial and +political conflicts, in which most of his life was spent. He was +a good debater, overflowing with humor without sarcasm. In the +campaign of 1860, he and I had a running debate at long range. In +a speech at Columbus, then his residence, I spoke of his erratic +course on the Lecompton bill. He replied at Mansfield with +shrewdness, humor and ability. I reviewed his speech at the same +place, and we kept up a running fire during that canvass, but this +did not disturb our friendly relations. Some years later, he +removed to New York, where he was soon taken into favor, and was +elected several times to Congress. He was the author of several +books of merit, and was the champion of a measure establishing the +life-saving service of the country upon its present footing. He +may be classified as a leading Member of the House of Representatives, +a bright and successful speaker and a copious author. He died +September 10, 1889. + +John A. Bingham was regarded, next to Mr. Corwin, as the most +eloquent member of the Ohio delegation, and, perhaps with one or +two exceptions, of the House of Representatives. He studied law +and was admitted to the bar in 1840. He served for sixteen years +in the House of Representatives on the judiciary and other important +committees, and took an active and leading part in all the debates +during this long period. He was a man of genial, pleasing address, +rather too much given to flights of oratory, but always a favorite +with his colleagues and associates. He was subsequently appointed +United States minister to Japan, where he remained for many years. +He still lives at a ripe old age at Cadiz, Ohio. + +During the existence of the 36th Congress, I do not recall any +political divisions in the committee of ways and means, unless the +tariff is considered a political measure. It was not so treated +by the committee. The common purpose was to secure sufficient +revenue for the support of the government. The incidental effect +of all duties was to encourage home manufactures, but, as the rule +adopted was applied impartially to all productions, whether of the +farm, mine, or the workshop, there was no controversy except as to +the amount or rate of the duty. The recent dogma that raw materials +should not have the benefit of protection did not enter the mind +of anyone. The necessity of economy limited the amount of +appropriations, but if the war had not changed all conditions, the +revenues accruing would have been sufficient for an economical +administration of the government. + +In a retrospect of my six years as a Member of the House of +Representatives, I can see, and will freely admit, that my chief +fault was my intense partisanship. This grew out of a conscientious +feeling that the repeal of the Missouri Compromise was an act of +dishonor, committed by a dominating party controlled by slaveholders +and yielded to by leading northern Democrats, headed by Douglas, +with a view on his part to promote his intense ambition to be +President of the United States. I felt that this insult to the +north should be resented by the renewed exclusion, by act of +Congress, of slavery north of the line of latitude 36 degrees 30 +minutes. This feeling was intensified by my experience in Kansas +during the investigation of its affairs. The recital by the Free +State men of their story, and the appearance and conduct of the +"border ruffians," led me to support extreme measures. The political +feebleness of Mr. Buchanan, and the infamy of the Dred Scott +decision, appeared to me conclusive evidence of the subserviency +of the President and the Supreme Court to the slave power. The +gross injustice to me personally, and the irritating language of +southern Members in the speakership contest, aroused my resentment, +so that in the campaign of 1860 I was ready to meet the threats of +secession with those of open war. + +It was unfortunate that the south at this time was largely represented +in Congress by men of the most violent opinions. Such men as Keitt, +Hindman, Barksdale, and Rust, were offensive in their conduct and +language. They were of that class in the south who believed that +the people of the north were tradesmen, hucksters, and the like, +and therefore were cowards; that one southern man was equal in a +fight to four northern men; that slavery was a patent of nobility, +and that the owner of slaves was a lord and master. It is true +that among the southern Members there were gentlemen of a character +quite different. Such men as Letcher, Aiken and Bocock entertained +no such opinions, but were courteous and friendly. But even these +shared in the opinions of their people that, as slavery was recognized +by the constitution, as an institution existing in many of the +states, it should not be excluded from the common territory of the +Union, except by the vote of the people of a territory when assuming +the dignity and power of a state. It would appear that as in 1860 +the exclusion of slavery from Kansas was definitely settled by the +people of that state, and that as the only region open to this +controversy was New Mexico, from which slavery was excluded by +natural conditions, there was no reason or ground for an attempt +to disrupt the Union. In fact, this pretense for secession was +abandoned by South Carolina, and the only ground taken for attempting +it was the election of Mr. Lincoln as President of the United +States. If this was conceded to be a just cause for secession, +our government would become a rope of sand; it would be worse than +that of any South American republic, because our country is more +populous, and sections of it would have greater strength of attack +and defense. This pretense for secession would not have been +concurred in by any of the states north of South Carolina, but for +the previous agitation of slavery, which had welded nearly all the +slaveholding states into a compact confederacy. This was done, +not for fear of Lincoln, but to protect the institution of slavery, +threatened by the growing sentiment of mankind. Upon this question +I had been conservative, but I can see now that this contest was +irrepressible, and that I would soon have been in favor of the +gradual abolition of slavery in all the states. This could not +have been effected under our constitution but for the Rebellion, +so that, in truth, South Carolina, unwittingly, led to the only +way by which slavery could be abolished in the present century. + +The existence of slavery in a republic founded upon the declaration +that all men are created equal, that they are endowed by their +creator with certain inalienable rights, and that among them are +life, liberty and the pursuit of happiness, is an anomaly so pregnant +with evil that it is not strange that while it existed it was the +chief cause of all the serious contentions that threatened the life +of the republic. The framers of the constitution, finding slavery +in existence in nearly all the states, carefully avoided mention +of it in that instrument, but they provided against the importation +of slaves after a brief period, and evidently anticipated the +eventual prohibition of slavery by the voluntary action of the +several states. This process of prohibition occurred until one- +half of the states became free, when causes unforeseen made slavery +so profitable that it dominated in the states where it existed, +and dictated the policy of the United States. The first controversy +about slavery was happily settled by the Missouri Compromise of +1820. But a greater danger arose from the acquisition of territory +from Mexico. This, too, was postponed by the compromise of 1850, +but unhappily, within four years, the repeal of the Missouri +Compromise re-opened the controversy that led to the struggle in +Kansas. Douglas prescribed the doctrine of popular sovereignty. +Davis contended that slaves were property and must be protected by +law like other property. Lincoln declared that "a house divided +against itself cannot stand," that slavery must be lawful or unlawful +in all the states, alike north as well as south. Seward said that +an irrepressible conflict existed between opposing and enduring +forces, that the United States must and would become either entirely +a slaveholding nation or entirely a free labor nation. Kansas +became a free state in spite of Buchanan and then the conflict +commenced. The southern states prepared for secession. Lincoln +became President. The war came by the act of the south and ended +with the destruction of slavery. This succession of events, +following in due order, was the natural sequence of the existence +of slavery in the United States. + + "God moves in a mysterious way, + His wonders to perform." + + +CHAPTER X. +THE BEGINNING OF LINCOLN'S FIRST ADMINISTRATION. +Arrival of the President-Elect at Washington--Impressiveness of +His Inaugural Address--I am Elected Senator from Ohio to Succeed +Salmon P. Chase--Letters Written to and Received from My Brother +William Tecumseh--His Arrival at Washington--A Dark Period in the +History of the Country--Letter to General Sherman on the Attack +Upon Fort Sumter--Departure for Mansfield to Encourage Enlistments +--Ohio Regiments Reviewed by the President--General McLaughlin +Complimented--My Visit to Ex-President Buchanan--Meeting Between +My Brother and Colonel George H. Thomas. + +Abraham Lincoln, the President elect, arrived in the city of +Washington on the 23rd day of February, 1861, and, with Mrs. Lincoln, +stopped at Willard's Hotel where I was then living. On the evening +of his arrival I called upon him, and met him for the first time. +When introduced to him, he took my hands in both of his, drew +himself up to his full height, and, looking at me steadily, said: +"You are John Sherman! Well, I am taller than you; let's measure." +Thereupon we stood back to back, and some one present announced +that he was two inches taller than I. This was correct, for he +was 6 feet 3˝ inches tall when he stood erect. This singular +introduction was not unusual with him, but if it lacked dignity, +it was an expression of friendliness and so considered by him. +Our brief conversation was cheerful, and my hearty congratulations +for his escape from the Baltimore "roughs" were received with a +laugh. + +It was generally understood when Mr. Lincoln arrived that his +cabinet was definitely formed, but rumors soon prevailed that +dissensions existed among its members, that Seward and Chase were +rivals, that neither could act in harmony with the other, and that +both were discontented with their associates. I became satisfied +that these rumors were true. I do not feel at liberty, even at +this late day, to repeat what was said to me by some of the members +selected, but I was convinced that Lincoln had no purpose or desire +to change the cabinet he had selected in Springfield, and that he +regarded their jealousies (if I may use such a word in respect to +the gentlemen so distinguished) as a benefit and not an objection, +as by that means he would control his cabinet rather than be +controlled by it. + +Mr. Lincoln delivered his inaugural address from the east steps of +the capitol, on the 4th day of March, 1861. I sat near him and +heard every word. Douglas stood conspicuous behind him and suggesting +many thoughts. I have witnessed many inaugurations, but never one +so impressive as this. The condition of the south already organized +for war, the presence of United States troops with general Scott +in command, the manifest preparation against threatened violence, +the sober and quiet attention to the address, all united to produce +a profound apprehension of evils yet to come. The eloquent peroration +of Mr. Lincoln cannot be too often repeated, and I insert it here: + +"In _your_ hands, my dissatisfied fellow-countrymen, and not in +_mine_, is the momentous issue of civil war. The government will +not assail you. You can have no conflict, without being yourselves +the aggressors. _You_ have no oath registered in Heaven to destroy +the government, while _I_ shall have the most solemn one to 'preserve, +protect, and defend' it. + +"I am loth to close. We are not enemies, but friends. We must +not be enemies. Though passion may have strained, it must not +break, our bonds of affection. The mystic chords of memory, +stretching from every battlefield and patriot grave, to every living +heart and hearthstone, all over this broad land, will yet swell +the chorus of the Union, when again touched, as surely they will +be, by the better angels of our nature." + +Salmon P. Chase, then Senator, was appointed Secretary of the +Treasury. I know with what doubt and reluctance he accepted this +office. On the 7th of March his resignation as Senator was +communicated to the Senate. In anticipation of it the legislature +of Ohio was canvassing for his successor. My name was mentioned +with many others. I was in doubt whether I ought to be a candidate, +or even to accept the position if tendered. I had been elected as +a Member of the next Congress and was quite certain of election as +speaker of the House of Representatives. The Republicans had a +decided majority in that body and a feeling was manifest that I +should have, without opposition, the position to which I had been +unjustly deprived by the previous House. This was to me a coveted +honor. I, therefore, did not follow the advice of my friends and +go to Columbus. A ballot was taken in the caucus of Republican +members of the general assembly, and I received a plurality but +not a majority, the votes being scattered among many other candidates +of merit and ability. My name was then withdrawn. Several ballots +were taken on a number of days without result. I was then telegraphed +to come to Columbus. I went and was nominated on the first vote +after my arrival, and promptly elected as Senator, to fill the +vacancy occasioned by the resignation of Mr. Chase. + +I received many letters of congratulation, among which were two +which I insert: + + "Dubuque, March 23, 1861. +"Hon. John Sherman:--Allow me to sincerely congratulate you upon +your signal triumph at Columbus. I can assure you that no recent +event has given me so much sincere gratification as your election, +which I think a most worthy reward to a faithful public servant. +Republics are not so ungrateful as I supposed when I was defeated +for Dist. Atty. + + "Sincerely your friend, + "Wm. B. Allison." + + "Strafford, April 1, 1861. +"Hon. John Sherman, Mansfield, Ohio. + +"My Dear Sir:--I congratulate you upon your election to the Senate +of the U. S., but still I regret that you have left the House where +I think you might have rendered more important services to your +country than you will find opportunity to do in the Senate. You +could without doubt, I think, have been Speaker, had you possessed +any ambition for the position. That would have been for two years +only, but it would be at a crisis that will figure in our history. +Then you are greatly needed in economical questions with our party +--many of whom have no just idea of the responsibility of the +Republican party or a Republican Representative. I see no material +worth mentioning for leaders in our House, and though I am glad to +have you suited, I do much regret your translation to the higher +branch. I suppose we may be called back by Seward about the 1st +of June. + +"Our tariff bill is unfortunate in being launched at this time, as +it will be made the scape-goat of all difficulties. In fact the +southern Confederacy would have made a lower tariff had we left +the old law in force and precisely the same troubles would have +been presented. + + "Yours, very sincerely, + "Justin S. Morrill." + +The Senate being then in special session, the oath prescribed by +law was administered to me, and on the 23rd of March, 1861, I took +my seat in that body. I had, however, before my election, witnessed, +with deep humiliation, the Senate debates, feeling that the Republican +Senators were too timid in the steps taken to purge that body of +persons whom I regarded as traitors. I cannot now read the debates +without a feeling of resentment. Breckenridge, Mason, Hunter and +Powell still retained their seats as Senators from Kentucky and +Virginia, and almost daily defended the secession of the southern +states, declaring that the states they represented would do likewise. +These and other declarations I thought should have been promptly +resented by the immediate expulsion of these Senators. Wigfall, +of Texas, though his state had seceded, was permitted to linger in +the Senate and to attend executive sessions, where he was not only +a traitor but a spy. His rude and brutal language and conduct +should have excluded him from the Senate in the early days of the +session, but he was permitted to retire without censure, after a +long debate upon the terms of his proposed expulsion. I took no +part in the debates of that session, which closed March 28, 1861, +five days after my becoming a Member. I remained in Washington +until after the fall of Sumter in April following. + +During this period my brother, William Tecumseh, came to Washington +to tender his services in the army in any position where he could +be useful. I had corresponded with him freely in regard to his +remaining in Louisiana, where he was president of the Louisiana +State Seminary of Learning and Military Academy. He had been +embarrassed in his position by my attitude in Congress, and, +especially, by the outcry against me for signing the Helper book. +He was very conservative in his opinions in regard to slavery, and +no doubt felt that I was too aggressive on that subject. In the +summer of 1860 he made his usual visit to Lancaster, and, finding +that I was engaged in the canvass and would on a certain day be at +Coshocton, he determined to go and hear me "to see whether I was +an Abolitionist." He was greatly embarrassed by a memorable speech +made by Mr. Corwin, the principal speaker on that occasion. We +sat upon the stand together, and he very excitedly said: "John, +you must not speak after Corwin." He was evidently impressed with +the eloquence of that orator and did not wish me to speak, lest +the contrast between our speeches would be greatly to my disparagement. +I told him that he need not trouble himself, that I was to speak +in the evening, though I might say a few words at the close of Mr. +Corwin's address. He remained and heard me in the evening, and +concluded on the whole that I was not an Abolitionist. + +After the election of Mr. Lincoln I wrote him a letter, which will +speak for itself, as follows: + + "Mansfield, Ohio, November 26, 1860. +"My Dear Brother:--Since I received your last letter, I have been +so constantly engaged, first with the election and afterwards in +arranging my business for the winter, that I could not write you. + +"The election resulted as I all along supposed. Indeed, the division +of the Democratic party on precisely the same question that separated +the Republican party from the Democratic party made its defeat +certain. The success of the Republicans has saved the country from +a discreditable scramble in the House. The disorders of the last +winter, and the fear of their renewal, have, without doubt, induced +a good many citizens to vote for the Republican ticket. With a +pretty good knowledge of the material of our House, I would far +prefer that any one of the candidates be elected by the people +rather than allow the contest to be determined by Congress. Well, +Lincoln is elected. No doubt, a large portion of the citizens of +Louisiana think this is a calamity. If they believe their own +newspapers, or, what is far worse, the lying organs of the Democratic +party in the free states, they have just cause to think so. But +you were long enough in Ohio, and heard enough of the ideas of the +Republican leaders, to know that the Republican party is not likely +to interfere, directly or indirectly, with slavery in the states +or with the laws relating to slavery; that, so far as the slavery +question is concerned, the contest was for the possession of Kansas +and perhaps New Mexico, and that the chief virtue of the Republican +success was in its condemnation of the narrow sectionalism of +Buchanan's administration and the corruption by which his policy +was attempted to be sustained. Who doubts but that, if Buchanan +had been true to his promises in submitting the controversy in +Kansas to its own people, and had closed it by admitting Kansas as +a free state, that the Democratic party would have retained its +power? It was his infernal policy in that state (I can hardly +think of the mean and bad things he allowed there without swearing) +that drove off Douglas, led to the division of the Democratic party +and the consequent election of Lincoln. + +"As a matter of course, I rejoice in the result, for in my judgment +the administration of Lincoln will do much to dissipate the feeling +in the south against the north, by showing what are the real purposes +of the Republican party. In the meantime, it is evident we have +to meet in a serious way the movements of South Carolinian +Disunionists. These men have for years desired this disunion; they +have plotted for it. They drove Buchanan from his Kansas policy; +they got up this new dogma about slave protection, they broke up +the Charleston convention merely to advance secession; they are +now hurrying forward excited men into acts of treason, without +giving time for passion to cool or reason to resume its sway. God +knows what will be the result. If, by a successful revolution, +they can go out of the Union, they establish a principle that will +break the government into fragments. Some local disaffection or +temporary excitement will lead one state after another out of the +Union. We shall have the Mexican Republic over again, with a +fiercer race of men to fight with each other. Secession is +revolution. They seem bent upon attempting it. If so, shall the +government resist? If so, then comes civil war, a fearful subject +for Americans to think of. + +"Since the election I have been looking over the field for the +purpose of marking out a course to follow this winter, and I have, +as well as I could, tested my political course in the past. There +has been nothing done by the Republican party but what merits the +cordial approval of my judgment. There have been many things said +and done by the Republican leaders that I utterly detest. Many of +the dogmas of the Democratic party I like, but their conduct in +administering the government, and especially in their treatment of +the slavery question, I detest. I know we shall have trouble this +winter, but I intend to be true to the moderate conservative course +I think I have hitherto undertaken. Whatever may be the consequences, +I will insist on preserving the unity of the states, and all the +states, without exception and without regard to consequences. If +any southern state has really suffered any injury or is deprived +of any right, I will help reduce the injury and secure the right. +These states must not, merely because they are beaten in election, +or have failed in establishing slavery where it was prohibited by +compromise, attempt to break up the government. If they will hold +on a little while, they will find no injury can come to them, +unless, by their repeated misrepresentation of us, they stir up +their slaves to insurrection. I still hope that no state will +follow in the wake of South Carolina; then the weakness of her +position will soon bring her back again or subject her to ridicule +and insignificance. + +"It may be supposed by some that the excitement in the south has +produced a corresponding excitement in the north. This is true in +financial matters, especially in the cities. In political circles +it only strengthens the Republican party. Even Democrats of all +shades say, 'The election is against us; we will submit and all +must submit.' Republicans say, 'The policy of the government has +been controlled by the south for years, and we have submitted; now +they must submit.' And why not? What can the Republicans do half +as bad as Pierce and Buchanan have done? + +"But enough of this. You luckily are out of politics, and don't +sympathize with my Republicanism, but as we are on the eve of +important events, I write about politics instead of family matters, +of which there is nothing new. + + "Affectionately yours, + "John Sherman." + +In December I received this letter from him: + + "Louisiana State Seminary of Learning and Military Academy,} + "Alexandria, December 1, 1860. } +"Dear Brother:--. . . The quiet which I thought the usual acquiescence +of the people was merely the prelude to the storm of opinion that +now seems irresistible. Politicians, by heating the prejudices of +the people and running with the current, have succeeded in destroying +the government. It cannot be stopped now, I fear. I was in +Alexandria all day yesterday, and had a full and unreserved +conversation with Dr. S. A. Smith, state senator, who is a man of +education, property, influence, and qualified to judge. He was, +during the canvass, a Breckenridge man, but, though a southerner +in opinion, is really opposed to a dissolution of our government. +He has returned from New Orleans, where he says he was amazed to +see evidences of public sentiment which could not be mistaken. + +"The legislature meets December 10, at Baton Rouge. The calling +of a convention forthwith is to be unanimous, the bill for army +and state ditto. The convention will meet in January, and only +two questions will be agitated,--immediate dissolution, a declaration +of state independence, and a general convention of southern states, +with instructions to demand of the northern states to repeal all +laws hostile to slavery and pledges of future good behavior. . . . +When the convention meets in January, as they will assuredly do, +and resolve to secede, or to elect members to a general convention +with instructions inconsistent with the nature of things, I must +quit this place, for it would be neither right for me to stay nor +would the governor be justified in placing me in this position of +trust; for the moment Louisiana assumes a position of hostility, +then this becomes an arsenal and fort. . . . + +"Let me hear the moment you think dissolution is inevitable. What +Mississippi and Georgia do, this state will do likewise. + + "Affectionately, + "W. T. Sherman." + +On the 15th of December I wrote him: + +"I am clearly of the opinion that you ought not to remain much +longer at your present post. You will, in all human probability, +be involved in complications from which you cannot escape with +honor. Separated from your family and all your kin, and an object +of suspicion, you will find your position unendurable. A fatal +infatuation seems to have seized the southern mind, during which +any act of madness may be committed. . . . If the sectional +dissensions only rested upon real or alleged grievances, they could +be readily settled, but I fear they are deeper and stronger. You +can now close your connection with the seminary with honor and +credit to yourself, for all who know you speak well of your conduct, +while be remaining you not only involve yourself, but bring trouble +upon those gentlemen who recommended you. + +"It is a sad state of affairs, but it is nevertheless true, that +if the conventions of the southern states make anything more than +a paper secession, hostile collisions will occur, and probably a +separation between the free and the slave states. You can judge +whether it is at all probable that the possession of this capital, +the commerce of the Mississippi, the control of the territories, +and the natural rivalry of enraged sections, can be arranged without +war. In that event, you cannot serve in Louisiana against your +family and kin in Ohio. The bare possibility of such a contingency, +it seems to me, renders your duty plain, to make a frank statement +to all the gentlemen connected with you, and with good feeling +close your engagement. If the storm shall blow over, your course +will strengthen you with every man whose good opinion you desire; +if not, you will escape humiliation. + +"When you return to Ohio, I will write you freely about your return +to the army, not so difficult a task as you imagine." + +General Sherman then wrote me as follows: + + "Alexandria, La., December, 1861. +"Events here seem hastening to a conclusion. Doubtless you know +more of the events in Louisiana than I do, as I am in an out-of- +the-way place. But the special session of the legislature was so +unanimous in arming the state and calling a convention that little +doubt remains that Louisiana will, on the 23rd of January, follow +the other seceding states. Governor Moore takes the plain stand +that the state must not submit to a 'black Republican President.' +Men here have ceased to reason; they seem to concede that slavery +is unsafe in a confederacy with northern states, and that now is +the time; no use of longer delay. All concessions, all attempts +to remonstrate, seem at an end. + +"A rumor says that Major Anderson, my old captain (brother of +Charles Anderson, now of Texas, formerly of Dayton and Cincinnati, +Larz, William and John, all of Ohio), has spiked the guns of Fort +Moultrie, destroyed it, and taken refuge in Sumter. This is right. +Sumter is in mid-channel, approachable only in boats, whereas +Moultrie is old, weak, and easily approached under cover. If Major +Anderson can hold out till relieved and supported by steam frigates, +South Carolina will find herself unable to control her commerce, +and will feel, for the first time in her existence, that she can't +do as she pleases. . . . + +"A telegraph dispatch, addressed to me at Alexandria, could be +mailed at New Orleans, and reach me in three days from Washington." + +I wrote him the following letter on the 6th of January, 1861: + +"Dear Brother:--. . . I see some signs of hope, but it is probably +a deceptive light. The very moment you feel uncomfortable in your +position in Louisiana, come away. Don't for God's sake subject +yourself to any slur, reproach, or indignity. I have spoken to +General Scott, and he heartily seconds your desire to return to +duty in the army. I am not at all sure but that, if you were here, +you could get a position that would suit you. I see many of your +friends of the army daily. + +"As for my views of the present crisis, I could not state them more +fully than I have in the inclosed printed letter. It has been very +generally published and approved in the north, but may not have +reached you, and therefore I send it to you. + + "Affectionately your brother, + "John Sherman." + +Later he wrote me: + + "Alexandria, January 16, 1861. +"My Dear Brother:--I am so much in the woods here that I can't keep +up with the times at all. Indeed, you in Washington hear from New +Orleans two or three days sooner than I do. I was taken aback by +the news that Governor Moore had ordered the forcible seizure of +the Forts Jackson and St. Philip, at or near the mouth of the +Mississippi; also of Forts Pike and Wood, at the outlets of Lakes +Bogue and Pontchartrain. All these are small forts, and have rarely +been occupied by troops. They are designed to cut off approach by +sea to New Orleans, and were taken doubtless to prevent their being +occupied, by order of General Scott. But the taking the arsenal +at Baton Rouge is a different matter. It is merely an assemblage +of store-houses, barracks, and dwelling-houses, designed for the +healthy residence of a garrison, to be thrown into one or the other +of the forts in case of war. The arsenal is one of minor importance, +yet the stores were kept there for the moral effect, and the garrison +was there at the instance of the people of Louisiana. To surround +with the military array, to demand surrender, and enforce the +departure of the garrison, was an act of war. It amounted to a +declaration of war and defiance, and was done by Governor Moore +without the authority of the legislature or convention. Still, +there is but little doubt but that each of these bodies, to assemble +next week, will ratify and approve these violent acts, and it is +idle to discuss the subject now. The people are mad on this +question. + +"I had previously notified all that in the event of secession I +should quit. As soon as knowledge of these events reached me, I +went to the vice president, Dr. Smith, in Alexandria, and told him +that I regarded Louisiana as at war against the federal government, +and that I must go. He begged me to wait until some one could be +found to replace me. The supervisors feel the importance of system +and discipline, and seem to think that my departure will endanger +the success of this last effort to build up an educational +establishment. . . . You may assert that in no event will I forego +my allegiance to the United States as long as a single state is +true to the old constitution. . . . + + "Yours, + "W. T. Sherman." + +And again: + + "Louisiana State Seminary of Learning and Military Academy,} + "Alexandria, January 18, 1861. } +"Dear Brother:--Before receiving yours of the 6th, I had addressed +a letter to Governor Moore at Baton Rouge, of which this is a copy:-- + +'_Sir:_--As I occupy a quasi military position under the laws of +the state, I deem it proper to acquaint you that I accepted such +position when Louisiana was a state in the union and when the motto +of this seminary was inscribed in marble over the main door: "By +the liberality of the General Government. The Union Esto perpetua." +Recent events foreshadow a great change, and it becomes all men to +choose. If Louisiana withdraw from the federal Union, I prefer to +maintain my allegiance to the old constitution as long as a fragment +of it survives, and my longer stay here would be wrong in every +sense of the word. In that event, I beg that you will send or +appoint some authorized agent to take charge of the arms and +munitions of war here belonging to the state, or advise me what +disposition to make of them. And furthermore, as president of the +board of supervisors, I beg you to take immediate steps to relieve +me as superintendent the moment the state determines to secede; +for on no earthly account will I do any act or think any thought +hostile to, or in defiance of, the United States. + + 'With respect, etc., + 'W. T. Sherman.' + +"I regard the seizure by Governor Moore of the United States arsenal +as the worst act yet committed in the present revolution. I do +think every allowance should be made to southern politicians for +their nervous anxiety about their political powers and the safety +of slaves. I think that the constitution should be liberally +construed in their behalf, but I do regard this civil war as +precipitated with undue rapidity. . . . It is inevitable. All +legislation now would fall powerless on the south. You should not +alienate such states as Virginia, Kentucky, Tennessee, and Missouri. +My notice is that this war will ruin all politicians, and that +military leaders will direct the events. + + "Yours + "W. T. S." + +On the first of February he wrote as follows: + +"I have felt the very thoughts you have spoken. It is war to +surround Anderson with batteries, and it is shilly-shally for the +south to cry 'Hands off! No coercion!' It was war and insult to +expel the garrison at Baton Rouge, and Uncle Sam had better cry +'Cave!' or assert his power. Fort Sumter is not material save for +the principle; but Key West and the Tortugas should be held in +force at once, by regulars if possible, if not, by militia. Quick! +They are occupied now, but not in force. While maintaining the +high, strong ground you do, I would not advise you to interpose an +objection to securing concessions to the middle and moderate states, +--Virginia, Kentucky, Tennessee and Missouri. Slavery there is +local, and even if the world were open to them, its extension would +involve no principle. If these states feel the extreme south wrong, +a seeming concession would make them committed. The cotton states +are gone, I suppose. Of course, their commerce will be hampered. . . . + +"But of myself. I sent you a copy of my letter to the Governor. +Here is his answer: + +'_Dear Sir:_--It is with the deepest regret I acknowledge the +receipt of your letter of the 18th instant. In the pressure of +official business I can only request you to transfer to Professor +Smith the arms, munitions, and funds in your hands, whenever you +conclude to withdraw from the position you have filled with so much +distinction. You cannot regret more than I do the necessity which +deprives us of your services, and you will bear with you the respect, +confidence, and admiration of all who have been associated with you. + + 'Very truly, your friend and servant, + 'Thos. D. Moore.' + +"This is very handsome, and I do regret this political imbroglio. +I do think it was brought about by politicians. The people in the +south are evidently unanimous in the opinion that slavery is +endangered by the current of events, and it is useless to attempt +to alter that opinion. As our government is founded on the will +of the people, when that will is fixed, our government is powerless, +and the only question is whether to let things slide into general +anarchy, or the formation of two or more confederacies which will +be hostile sooner or later. Still, I know that some of the best +men of Louisiana think this change may be effected peacefully. +But even if the southern states be allowed to depart in peace, the +first question will be revenue. + +"Now, if the south have free trade, how can you collect revenues +in the eastern cities? Freight from New Orleans to St. Louis, +Chicago, Louisville, Cincinnati, and even Pittsburg, would be about +the same as by rail from New York, and importers at New Orleans, +having no duties to pay, would undersell the east if they had to +pay duties. Therefore, if the south make good their confederation +and their plan, the northern confederacy must do likewise or +blockade. Then comes the question of foreign nations. So, look +on it in any view, I see no result but war and consequent changes +in the form of government." + +These letters, written at their dates, on the spur of the moment, +present the condition of affairs as viewed by General Sherman and +myself when they occurred. + +With the conviction just stated General Sherman came to Washington +about the time of my election to the Senate. He was deeply impressed +with the certainty of war and of its magnitude, and was impelled +by the patriotic sentiment that, as he had been educated at the +expense of the government for military service, it was his duty, +in the then condition of the country, to tender his services. I +therefore escorted him to the White House. His statement of the +interview given in his "Memoirs" is not very full, for, while Mr. +Lincoln did say, in response to his tender, "I guess we will manage +to keep house," he also expressed a hope, which General Sherman +knew to be delusive, that the danger would pass by and that the +Union would be restored by a peaceful compromise. This was, +undoubtedly, the idea then uppermost in the minds of both the +President and Mr. Seward. At this time the public mind in the +north was decidedly in favor of concessions to the south. The +Democrats of the north would have agreed to any proposition to +secure peace and the Union, and the Republicans would have acquiesced +in the Crittenden Compromise, or in any measure approved by Lincoln +and Seward. + +The period between the 4th of March and the 12th of April was the +darkest one in the history of the United States. It was a time of +humiliation, timidity and feebleness. Fortunately for the future +of our country the rebels of the south were bent upon disunion; +they were hopeful and confident, and all the signs of the times +indicated their success. They had possession of all the forts of +the south, except Fortress Monroe, Fort Sumter, and two remote +forts in Florida. They had only to wait in patience, and Fort +Sumter would necessarily be abandoned for want of supplies. Fortress +Monroe could not be held much longer by the regular army, weakened +as it was by the desertion of officers and men, and public sentiment +would not justify a call for troops in advance of actual war. The +people of South Carolina were frenzied by their success thus far, +and, impatient of delay, forced an attack on Fort Sumter, then held +by a small garrison under command of Major Robert Anderson. The +first gun fired on the 12th of April, 1861, resounded throughout +the United States and the civilized world, touching an electric +chord in every family in the northern states and changing the whole +current of feeling. From this time forth, among the patriotic +people of the loyal states, there was no thought or talk of +compromise. That this insult to our flag must be punished, "that +the Union must and shall be preserved," were the resolves of millions +of men, without respect to party, who but the day before were eager +for compromise. The cold and cautious men of the north were at +last awakened from their indifference. + +The impression made upon my mind by the attack on Fort Sumter is +expressed in a letter I wrote from Washington to my brother, General +Sherman, as he was then called, at midnight of the 12th of April: + + "Washington, April 12, 1861. +"Dear Brother:--I was unexpectedly called here soon after receiving +your letter of the 8th, and at midnight write you. The military +excitement here is intense. Since my arrival I have seen several +officers, many citizens, and all the heads of departments except +Blair. There is a fixed determination now to preserve the Union +and enforce the laws at all hazards. Civil war is actually upon +us, and, strange to say, it brings a feeling of relief; the suspense +is over. I have spent much of the day in talking about you. There +is an earnest desire that you go into the war department, but I +said this was impossible. Chase is especially desirous that you +accept, saying that you would be virtually Secretary of War, and +could easily step into any military position that offers. + +"It is well for you seriously to consider your conclusion, although +my opinion is that you ought not to accept. You ought to hold +yourself in reserve. If troops are called for, as they surely will +be in a few days, organize a regiment or brigade, either in St. +Louis or Ohio, and you will then get into the army in such a way +as to secure promotion. By all means take advantage of the present +disturbances to get into the army, where you will at once put +yourself in a high position for life. I know that promotion and +every facility for advancement will be cordially extended by the +authorities. You are a favorite in the army and have great strength +in political circles. I urge you to avail yourself of these +favorable circumstances to secure your position for life; for, +after all, your present employment is of uncertain tenure in these +stirring times. + +"Let me now record a prediction. Whatever you may think of the +signs of the times, the government will rise from this strife +greater, stronger, and more prosperous than ever. It will display +energy and military power. The men who have confidence in it, and +do their full duty by it, may reap whatever there is of honor and +profit in public life, while those who look on merely as spectators +in the storm will fail to discharge the highest duty of a citizen, +and suffer accordingly in public estimation. . . . + +"I write this in great hurry, with numbers around me, and exciting +and important intelligence constantly repeated, even at this hour; +but I am none the less in earnest. I hope to hear that you are on +the high road to the 'General' within thirty days. + + "Affectionately your brother, + "John Sherman." + +Two days later I wrote him: + + "Washington, Sunday, April 14, 1861. +"Dear Brother:--. . . The war has really commenced. You will have +full details of the fall of Sumter. We are on the eve of a terrible +war. Every man will have to choose his position. You fortunately +have a military education, prominence, and character, that will +enable you to play a high part in the tragedy. You can't avoid +taking such a part. Neutrality and indifference are impossible. +If the government is to be maintained, it must be by military power, +and that immediately. You can choose your own place. Some of your +best friends here want you in the war department; Taylor, Shiras, +and a number of others, talk to me so. If you want that place, +with a sure prospect of promotion, you can have it, but you are +not compelled to take it; but it seems to me you will be compelled +to take some position, and that speedily. Can't you come to Ohio +and at once raise a regiment? It will immediately be in service. +The administration intends to stand or fall by the Union, the entire +Union, and the enforcement of the laws. I look for preliminary +defeats, for the rebels have arms, organization, unity; but this +advantage will not last long. The government will maintain itself +or our northern people are the veriest poltroons that ever disgraced +humanity. + +"For me, I am for a war that will either establish or overthrow +the government and will purify the atmosphere of political life. +We need such a war, and we have it now. . . . + + "Affectionately yours, + "John Sherman." + +He wrote in reply: + +"The time will come in this country when professional knowledge +will be appreciated, when men that can be trusted will be wanted, +and I will bide my time. I may miss the chance; if so, all right; +but I cannot and will not mix myself in this present call. . . . + +"The first movements of the government will fail and the leaders +will be cast aside. A second or third set will rise, and among +them I may be, but at present I will not volunteer as a soldier or +anything else. If Congress meet, or if a national convention be +called, and the regular army be put on a footing with the wants of +the country, if I am offered a place that suits me, I may accept. +But in the present call I will not volunteer." + +He criticised the call for 75,000 militia for three months, saying +that the best of men could only be made indifferent soldiers in +three months, and that the best of soldiers could accomplish nothing +in three months in such a country as ours. He therefore would not +volunteer for such a service, but his mind was occupied with military +plans. The correspondence between us shows that he had a better +conception of the magnitude and necessities of the war than civilians +like myself. + +He wrote to Mr. Cameron, Secretary of War, from St. Louis, on May +8, 1861: + +"I hold myself now, as always, prepared to serve my country in the +capacity for which I was trained. I did not and will not volunteer +for three months, because I cannot throw my family on the cold +support of charity, but for the three years' call made by the +President an officer could prepare his command and do good service. +I will not volunteer, because, rightfully or wrongfully, I feel +myself unwilling to take a mere private's place, and having for +many years lived in California and Louisiana, the men are not well +enough acquainted with me to elect me to my appropriate place. +Should my services be needed, the record or the war department will +enable you to designate the station in which I can render best +service." + +When Mr. Lincoln was elected President, there was no general feeling +among the northern people that war would result from his election. +It was not believed, although it had been threatened, that the +southern states would take up arms to resist the accession of a +President not of their choice. The love of Union and the orderly +obedience to constituted authority had been so well established +among our people that, while politicians might threaten, but few +really believed that war, of which they knew nothing, was to come +upon us. The result was that when the southern states, one by one, +seceded, and Fort Sumter was fired upon, and the forts and arsenals +of the south were captured, a new inspiration dawned upon the people +of the north, a determination became general that, cost what it +would, the Union should be preserved to our children and our +children's children. That feeling was not confined to party lines. +I am bound to say that the members of the Democratic party in the +loyal States, in the main, evinced the same patriotic determination +to maintain the cause of the Union, as those of the Republican +party. Their sons and their kindred formed part of every regiment +or force raised in the United States. + +At this distance of time from the opening of the Civil War, I have +endeavored to take an impartial retrospect of the causes that led +the south to engage therein. Undoubtedly, the existence of negro +slavery in the south was the governing excitement to war. The +owners of slaves knew that the tenure of such property was feeble. +Besides the danger of escape, there was the growing hostility to +slavery in a preponderance of the people of the United States, +restrained only by its recognition by the constitution. The slave +owners believed that, by secession, they could establish a republic, +founded on slavery, with an ample field in Mexico and Central +America for conquest and expansion. They had cultivated a bitter +sectional enmity, amounting to contempt, for the people of the +north, growing partly out of the subserviency of large portions of +the north to the dictation of the south, but chiefly out of the +wordy violence and disregard of constitutional obligation by the +Abolitionists of the north. They believed in the doctrine of an +irrepressible conflict long before it was announced by Seward. + +South Carolina, far in advance of other southern states, led in +promulgating the legal rights of secession, until they came to be +acquiesced in by all these states. They committed themselves to +it in the Charleston convention. Their speakers declared, during +the canvass, that if Lincoln was elected, their states would secede. +When elected, the first gun was fired on Fort Sumter, in South +Carolina, where all the people were determined on war. The struggle +once commenced, the natural sympathy of the southern states was +with South Carolina. The States of Virginia, North Carolina and +Tennessee, where a strong Union sentiment prevailed, hesitated and +delayed, but the young and active spirits were with the south, and +these carried the states named into the general conflict. Once in +the war, there was no way but to fight it out. I have no sympathy +with secession, but I can appreciate the action of those who were +born and reared under the influence of such teachings. Who of the +north can say, that in like conditions, he would not have been a +rebel? + +Looking back from my standpoint now, when all the states are re- +united in a stronger Union, when Union and Confederate soldiers +are acting together in both Houses of Congress in legislating for +the common good, when, since 1861, our country has more than doubled +its population and quadrupled its resources, when its institutions +have been harmonized by the abolition of slavery, when the seceding +states are entering into a friendly and hopeful rivalry, in the +development of their great resources, when they have doubled or +trebled their production of cotton, when they are producing the +greater part of their food, when they are developing their manufactures +of iron and steel, and introducing the spindle and loom into the +cities and villages, it seems to me that men of the south surely +will appreciate, if they do not approve, what I said in the Senate +early in the war: + +"I would stake the last life, the last dollar, the last man, upon +the prosecution of the war. Indeed, I cannot contemplate the +condition of my country if it shall be dissevered and divided. +Take the loyal states as they now stand and look at the map of the +United States, and regard two hostile confederacies stretching +along for thousands of miles across the continent. Do you not know +that the normal condition of such a state of affairs would be +eternal, everlasting war? Two nations of the same blood, of the +same lineage, of the same spirit, cannot occupy the same continent, +much less standing side by side as rival nations, dividing rivers +and mountains for their boundary. No, Mr. president, rather than +allow this war to terminate except upon the restoration of the +Union intact in all its breadth and length, I would sacrifice the +last man and see the country itself submerged. + +"Rather than yield to traitors or the intervention of foreign +powers, rather than bequeath to the next generation a broken Union, +and an interminable civil war, I would light the torch of fanaticism +and destroy all that the labor of two generations has accumulated. +Better a desert and universal poverty than disunion; better the +war of the French Revolution than an oligarchy founded upon the +labor of slaves. But, sir, there is no need of this. The resources, +wealth, and labor of twenty millions of freemen are amply sufficient +to meet not only the physical, but financial, difficulties of the +war. Thank God! the test to which all nations in the course of +their history are subjected, is applied to us when we have a +insignificant national debt; when our resources were never more +manifest; when the loyal states are so throughly united; when our +people are filled with a generous enthusiasm that will make the +loss of life and burden of taxation easy to bear. If we conquer +a peace by preserving the Union, the constitution, our nationality, +all our ample territories, the rebound of prosperity in this country +will enable a single generation easily to pay the national debt, +even if the war is protracted until desolation is written upon +every rebel hearthstone." + +This, I believe, expressed the spirit and determination of the +loyal states of the north, at the beginning of the war. With +opinions so widely divergent in the two sections, and with a fixed +purpose of each to stand by them, there was no way that poor frail +human nature could devise to decide the controversy except to fight. + +From the graves of the dead, who fought on opposite sides for their +country of their state, there has been a resurrection, honorable +to both sections, a Union stronger, more united and glorious than +the Union established by our fathers, and with a rebound of prosperity +greater than we could conceive of in 1862. This war, though fearful +in the sacrifice of property and life, has resulted in a better +understanding among the people of both sections. Each has for the +other a higher respect and regard. I sincerely hope and believe +in the good time coming when sectional lines will not divide +political parties, and common interests and a broader nationality +will have destroyed sectional feeling and jealousy. + +As the result of the war we command the respect of all foreign +nations. The United States, as a great republic, has become an +example already followed by European nations. It has at least +secured the respect and forbearance of the ruling class in Great +Britain, who never forgot or forgave the rebellion of our ancestors +against King George III and the parliament of Great Britain. It +has stamped the language, the laws, and the boasted freedom of +Englishmen, upon a population double that in the mother country, +and they, in turn, are taking lessons from us in extending to their +people equality of rights and privileges. + +I remained in Washington a few days and then started for my home +at Mansfield, to encourage enlistments, but found that no help was +needed; that companies were enlisted in a day. One was recruited +by William McLaughlin, a gallant soldier in the war in Mexico, a +major general of the Ohio militia who had arrived at the age of +sixty years. He dropped his law books and in twelve hours had a +company of one hundred men ready to move at the command of the +governor. A like patriotism was aroused in all parts of the state, +so that in a very short time two full regiments, numbering 2,000 +men, were organized under the command of Colonel A. McD. McCook, +of the United States army, and were on the way to Washington, then +blockaded by the roughs of Baltimore. I met them at Harrisburg +and went with them to Philadelphia. They were camped at Fairmount +Park, and were drilled with other regiments by Colonel Fitz John +Porter, the entire force being under the command of General +Patterson. + +When the blockade was opened, by the skill and audacity of General +Benjamin F. Butler, the two Ohio regiments were ordered to Washington +and were there reviewed by President Lincoln, at which time a +pleasant incident occurred which may be worthy of mention. I +accompanied the President to the parade, and passed with him down +the line. He noticed a venerable man with long white hair and +military bearing, standing in position at the head of his company +with arms presented, and inquired his name. I said it was General +McLaughlin and hurriedly told him his history, his politics and +patriotism. The President, as he came opposite him, stopped, and +leaving his party advanced to McLaughlin and extended his hand. +McLaughlin, surprised, had some difficulty in putting his sword +under his left arm. They shook hands and Lincoln thanked him, +saying when men of his age and standing came to the rescue of their +country there could be no doubt of our success. McLaughlin highly +appreciated this compliment. He afterwards enlisted for the war +and died in the service of his country. + +These two regiments were subsequently ordered to Harrisburg, to +which place they went, accompanied by me, and there they formed a +part of the command of General Patterson, which was to advance on +Martinsburg and Winchester to aid in a movement of General McDowell +against the enemy at Bull Run. I was serving on the staff of +General Patterson as a volunteer aid without pay. While at Harrisburg +it was suggested to me that ex-President Buchanan, then at his +country home near that city, had expressed a wish to see me. As +our personal relations had always been pleasant, though our political +opinions were widely different, I called upon him, I think with +Colonel Porter, and we were cordially received. I was surprised +at the frankness and apparent sincerity of the opinions expressed +by him in relation to the war. He said he had done all he could +to prevent the war, but now that it was upon us it was the duty of +all patriotic people to make it a success, that he approved all +that had been done by Mr. Lincoln, of whom he spoke in high terms +of praise. I believe he was sincere in the opinions he then +expressed, and know of nothing said or done by him since that time +that could create a doubt of his sincerity. + +About the middle of June the command of General Patterson moved +slowly to Chambersburg, where it remained several days under constant +drill, then to Hagerstown and to the village of Williamsport on +the Potomac. While at the latter place General Sherman, who had +been at Washington and received his commission as colonel of the +13th United States infantry, then being recruited, came to visit +me at my lodgings in a country tavern. He then met for the first +time in many years his old classmate, Colonel, afterwards Major- +General, George H. Thomas, who then commanded a regular regiment +of the United States army in the force under the command of General +Patterson. The conversation of these two officers, who were to be +so intimately associated in great events in the future, was very +interesting. They got a big map of the United States, spread it +on the floor, and on their hands and knees discussed the probable +salient strategic places of the war. They singled out Richmond, +Vicksburg, Nashville, Knoxville and Chattanooga. To me it has +always appeared strange that they were able confidently and correctly +to designate the lines of operations and strategic points of a war +not yet commenced, and more strange still that they should be +leading actors in great battles at the places designated by them +at this country tavern. + +The next day General Thomas crossed the river into Virginia, but +the order was soon countermanded, it is said, by General Scott, +and General Thomas returned to the north bank of the Potomac. +General Sherman returned to Washington to drill his raw troops for +the battle of Bull Run. I soon after returned by stage to Frederick, +Maryland, to take my seat in the Senate, Congress having been +convened to meet in special session on the 4th of July. + + +CHAPTER XI. +SPECIAL SESSION OF CONGRESS TO PROVIDE FOR THE WAR. +Condition of the Treasury Immediately Preceding the War--Not Enough +Money on Hand to Pay Members of Congress--Value of Fractional Silver +of Earlier Coinage--Largely Increased Revenues an Urgent Necessity +--Lincoln's Message and Appeal to the People--Issue of New Treasury +Notes and Bonds--Union Troops on the Potomac--Battle of Bull Run-- +Organization of the "Sherman Brigade"--The President's Timely Aid +--Personnel of the Brigade. + +To understand the measures to be submitted to Congress at its +approaching session, it is necessary to have a clear conception of +the condition of the treasury at that time, and of the established +financial policy of the government immediately before the war. + +On the meeting of Congress in December, 1860, the treasury was +empty. There was not enough money even to pay Members of Congress. +The revenues were not sufficient to meet the demands for ordinary +expenditures in time of peace. Since 1857 money had been borrowed +by the sale of bonds and the issue of treasury notes bearing +interest, to meet deficiencies. The public debt had increased +during the administration of Mr. Buchanan about $70,000,000. The +Secretary of the Treasury, Howell Cobb, resigned on the 10th of +December, 1860, declaring that his duty to Georgia required such +action. He had aided in every possible way to cripple the department +while in charge of it. + +On the 16th of the same month Congress authorized the issue of +$10,000,000 treasury notes, to bear interest at the lowest rate bid. +On the 18th Secretary Philip F. Thomas, Mr. Cobb's successor, +invited bids for $5,000,000 of treasury notes, part of the $10,000,000 +authorized, at the rate of interest offered by the lowest bidder. +Offers at 12 per cent. or less were made for $1,831,000 (the bulk +of the offers being at 12 per cent.) which were accepted and +additional offers were received at interest varying from 15 to 36 +per cent., but were refused. Immediately after the decision of +the department on these offers was announced, the assistant treasurer +at New York advised the secretary that certain parties would take +the residue of the $5,000,000 offered, through the Bank of Commerce, +at 12 per cent. This proposition was accepted, on condition that +the amount required to make up the five millions should be deposited +without delay. The whole amount was applied to the payment of +overdue treasury notes and other pressing demands on the treasury. + +Secretary Thomas resigned on the 11th of January, 1861, and John +A. Dix became Secretary of the Treasury. In answer to my inquiry +Secretary Dix, in an official letter, dated January 18, 1861, stated +the terms of the sale of treasury notes and that: "The amount +required to meet the outstanding current and accruing dues before +the close of the present fiscal year, besides any additional charges +on the treasury created by legislation during the present session +of Congress, is $44,077,524.63." He recommended a further issue +of $25,000,000 of bonds, and suggested that the states which had +received deposits under the act for the distribution of surplus +revenue in General Jackson's time might be called upon to return +such deposits, and added: "If, instead of calling for these +deposits, it should be deemed advisable to pledge them for the +repayment of any money the government might find it necessary to +borrow, a loan contracted on such a basis of security, superadding +to the plighted faith of the United States that of the individual +states, could hardly fail to be acceptable to capitalists." + +In this connection I received the following note: + + "Treasury Department, February 6, 1861. +"Hon. John Sherman. + +"Dear Sir:--I send a preamble and resolution, and a letter to your +governor. Will you read and send them at once? You, as a Member +of Congress, can say what I cannot with propriety--that no states +which guarantee bonds of the United States to the amount of the +public moneys in its hands, will be likely to be called on to repay +these moneys--at all events during the twenty years the bonds of +the United States will run. + + "I am truly yours, + "John A. Dix. +"P. S.--I cannot put out my notice for a loan till your state acts, +and the time is very short." + +Subsequently I received the following letter: + + "Treasury Department, February 11, 1861, 7 p. m. +"Dear Sir:--My plan for raising money to meet the outstanding +liabilities of the government, and to enable the incoming administration +to carry on its financial operations without embarrassment till it +shall have time to mature a plan for itself, has met with an obstacle +quite unexpected to me. The committee of ways and means in the +House has declined to report a bill to authorize me to accept the +guaranties voluntarily tendered by the states. Mr. Spaulding, of +New York, and Mr. Morrill, of Vermont, I learn, have objections. +Unless they withdraw their opposition the bill cannot be reported, +and the plan must fail. In that case I shall not deem it proper +to ask for a loan of more than two millions to meet the redemption +of treasury notes, which fall due before the 4th of March. The +state of the country is such that a larger amount thrown on the +market would have a most disastrous influence on the public credit. +I do not think I can borrow two millions at more than 90 per cent. +With a guaranty such as the states have offered, I can get eight +millions at par. The alternative is to authorize me to accept the +guaranty, or leave the treasury with scarcely anything in it and +with outstanding demands, some of them very pressing, of at least +six millions of dollars, for you and your political friends to +provide for. If anything is done it should be to-morrow, as I +ought to publish the notice on Wednesday. Perhaps you can see the +gentlemen referred to to-night and remove their objections. I am, +very truly, your obedient servant, + + "John A. Dix." + +On the 8th of February, 1861, a bill became a law providing for +the sale of $20,000,000 six per cent. bonds, and these were sold +at the rate of $89.10 for $100, yielding $18,415,000. + +Such was the humiliating financial condition of the government of +the United States at the close of Mr. Buchanan's administration. +The expenditures of the government for the fiscal year ending June +30, 1861, were $84,577,258.60, of which $42,064,082.95 was procured +from loans and treasury notes, leaving a balance in the treasury, +at the close of the fiscal year 1861, of $2,395,635.21. This +condition still existed when Congress subsequently met in special +session. + +Under the sub-treasury laws then in force, the revenues of the +government were received and held only in the treasury at Washington, +and in sub-treasuries located in a few of the principal cities of +the United States, and could be paid out only upon the draft of +the treasurer of the United States, drawn agreeably to appropriations +made by law. No money could be received into the treasury except +gold and silver coin of the United States, and such treasury notes +as were receivable for bonds. State bank notes were not received +for government dues. This exclusion grew out of the general failure +of banks after the War of 1812 and the panic of 1837, and had caused +the outcry in 1840 of: "Gold for the office holders; rags for the +people." But this policy of the government to receive only its +own coin or notes was sustained by popular opinion. + +Silver dollars were not in circulation in 1861. Their issue was +provided for at the beginning of our government, but, as they were +most of the time more valuable than gold coin of like face value, +they were hoarded or exported. Their coinage was suspended by an +order of President Jefferson in 1805, and after this order only +1,300 silver dollars were coined by the United States prior to +1836. From 1836 to 1861 silver dollars were coined in small +quantities, the aggregate being less than one and one-half million, +and they were generally exported. It is probable that when Mr. +Chase became Secretary of the Treasury, there was not in the United +States one thousand silver dollars. In 1853, and prior to that +year, fractional silver coins were worth for bullion more than +their face value, and, therefore, did not circulate. Small change +was scarce, and fractional notes, called "shinplasters," were issued +in many parts of the United States. Mexican coin, debased and +worn, was in circulation. To remedy this evil Congress, by the +act of February 21, 1853, during Pierce's administration, prescribed +the weight of the silver half dollar as 192 grains instead of 206ź +grains, fixed by the coinage act of 1792, and the weight of the +quarter, dime and half dime of silver was reduced in the same +proportion. As these new coins were less valuable than gold at +the rate coined, they were made a legal tender in payment of debts +only for sums not exceeding five dollars. The silver bullion for +these coins was purchased at market value, and the privilege +theretofore granted to a depositor of silver bullion to have it +coined for him was repealed. This law had the beneficial effect +of driving out of circulation "shinplasters" and worn coins, and +supplied in ample quantity new full weight silver coins of handsome +device, the government receiving the profit of the difference +between the market value of the silver and its coinage value. +Under this law the coinage of silver rapidly increased, so that, +within two years after the passage of the act of 1853, more silver +was converted into fractional coins and was in active use among +the people than was contained in all the silver dollars coined +under "free coinage" from the beginning of the government to 1878. + +While silver was thus made useful to the fullest extent possible, +it was, from its weight and bulk, inadequate and inconvenient for +the vast demands of the government during the war. Silver and gold +together could not meet this demand. There was known to be in the +country at that time, of specie in circulation, $250,000,000, of +state bank notes, $180,000,000, in all $430,000,000. This amount, +experience had shown, was necessary to meet exchanges in ordinary +times of peace. The disturbance of a civil war would likely +stimulate production for a time and require even more circulation +for current business. This circulation, if drawn from its ordinary +channels, would bring no end of confusion and distress to the +people, and the government, to meet the demand occasioned by carrying +on a war, must look elsewhere for a circulating medium with which +to meet its enormous disbursements which must necessarily be made +almost wholly in actual cash--checks being, from the character of +payments, of little avail. + +There was no escaping the issue of credit money in some form, and +of whatever form adopted we knew that gold and silver would soon +disappear under the shadow of war--that they would be hoarded or +exported. + +This is the universal result of great wars long protracted. It +was our experience during our Revolution and the War of 1812, and +of Great Britain and all European nations during the Napoleonic +wars. What should take the place of gold and silver for currency? +The only answer was to substitute for the time the notes of the +United States, with all the sanction and credit which the republic +could confer, in the place of coin. We could not, with safety, +accept bank notes issued by state corporations, varying in terms +and credit according to the laws of twenty-three separate states. + +To establish a credit of our bonds and notes these measures at +least were necessary: First, to increase largely the revenues from +customs duties to be paid in coin; second, impose all forms of +internal taxes authorized by the constitution; third, create a +national currency redeemable in coin, with no fixed time for +redemption, but made a legal tender for all debts, public and +private, except customs duties; fourth, borrow any moneys needed +on the most favorable terms possible. + +On the 4th of July, 1861, the Senate convened in compliance with +the proclamation of the President, from whom it received a message +containing a clear statement of the events that followed his +inaugural address. He described the attack upon Fort Sumter and +said: + +"By the affair at Fort Sumter, with its surrounding circumstances, +that point was reached. Then and thereby the assailants of the +government began the conflict of arms, without a gun in sight or +in expectancy to return their fire, save only the few in the fort, +sent to that harbor years before for their own protection, and +still ready to give that protection in whatever was lawful. In +this act, discarding all else, they have forced upon the country +the distinct issue, 'immediate dissolution or blood.' + +"And this issue embraces more than the fate of these United States. +It presents to the whole family of man the question, whether a +constitutional republic, or democracy--a government of the people +by the same people--can or cannot maintain its territorial integrity +against its own domestic foes. It presents the question, whether +discontented individuals, too few in number to control administration +according to organic law in any case, can always, upon the pretenses +made in this case, or on any other pretenses, or arbitrarily, +without any pretense, break up their government, and thus practically +put an end to free government upon the earth. It forces us to ask: +'Is there, in all republics, this inherent and fatal weakness?' +'Must a government, of necessity, be too _strong_ for the liberties +of its own people, or too _weak_ to maintain its own existence?' + +"So viewing the issue, no choice was left but to call out the war +power of the government; and so to resist force employed for its +destruction, by force for its preservation." + +He closed with this appeal to the people: + +"It was with the deepest regret that the Executive found the duty +of employing the war power in defense of the government forced upon +him. He could but perform this duty, or surrender the existence +of the government. No compromise by public servants could in this +case be a cure; not that compromises are not often proper, but that +no popular government can long survive a marked precedent that +those who carry an election can only save the government from +immediate destruction by giving up the main point upon which the +people gave the election. The people themselves, and not their +servants, can safely reverse their own deliberate decisions. + +"As a private citizen, the Executive could not have consented that +those institutions should perish; much less could he, in betrayal +of so vast and so sacred a trust as these free people have confided +to him. He felt that he had no moral right to shrink, or even to +count the chances of his own life, in what might follow. In full +view of his great responsibility, he has, so far, done what he has +deemed his duty. You will now, according to your own judgment, +perform yours. He sincerely hopes that your views and your action +may so accord with him as to assure all faithful citizens who have +been disturbed in their rights of a certain and speedy restoration +of them, under the constitution and the laws. + +"And having thus chosen our course, without guile and with pure +purpose, let us renew our trust in God, and go forward without fear +and with manly hearts." + +Secretary Chase also submitted to Congress, on the first day of +the session, a clear statement of the financial condition of the +United States. He estimated the sum needed for the fiscal year +ending June 30, 1862, at $318,519,581. He recommended a large +increase of duties on imports, especially upon such articles as +were then free from duty; also a direct tax of $20,000,000, to be +apportioned among the states according to population; also a tax +on distilled spirits, ale, beer, tobacco, bank notes, and other +articles of domestic production. He also suggested the property +of those engaged in insurrection or in giving aid and comfort to +insurgents should be made to contribute to the expenditures made +necessary by their criminal misconduct. As the receipts from +taxation would still be inadequate to meet the expenses of the war, +he discussed the best mode and form of borrowing money, including +bonds running for a long period with a fixed rate of interest, and +treasury notes bearing interest, payable on demand. + +Kansas having recently been admitted into the Union, twenty-three +states were represented in the Senate by forty-six Senators. Eleven +states being in open war against the United States, twenty-one of +their Senators withdrew, but Andrew Johnson, of Tennessee, remained +in the Senate, making the total of Senators forty-seven. Some of +these Senators were new in congressional life, and some had been +transferred from the House of Representatives. This transfer of +a Member, though eagerly sought, is not for a time agreeable. +However conspicuous the Member may have been in the House, he must +take his place in the Senate at the bottom of the ladder, and, +according to Senatorial usage, must be reasonably modest in expressing +his opinions. The withdrawal of so many Senators in 1861, however, +gave the new Members better positions than usual. I was assigned +to the committee on finance and on naval affairs. + +At that time the committee on finance had charge of all bills +appropriating money for the support of the government, all tax or +revenue bills, all loan and coinage bills, and, generally, all +bills relating to the treasury department, and to the finances of +the government. It was soon manifest that, in view of the war, +and the enormous sums required to conduct it, the task of the +committee would be a Herculean one, and that the labor required +would fall chiefly on Mr. Fessenden, the chairman of the committee, +and, I may with due modesty add, myself. My former position in +the House of Representatives, as chairman of the committee of ways +and means, and my personal association with Secretary Chase, with +whom I was intimate, led to my taking an active part in financial +legislation, which was considered my specialty. Congress, in +substantial conformity with the recommendations of Secretary Chase, +passed the act to authorize a loan which was approved July 17, +1861, providing for the issue of $250,000,000 of bonds running +twenty years, bearing not exceeding seven per cent. interest, or +treasury notes for not less than fifty dollars each, bearing interest +at not less than seven and three-tenths per cent. annually, and +payable in three years, and treasury notes of less denomination +than fifty dollars, not bearing interest and not exceeding $50,000,000, +payable on demand, and commonly known as demand notes. We knew +that this act was entirely inadequate for the great struggle before +us. The problem was not whether we could muster men, but whether +we could raise money. We had to create a system of finance that +would secure an enlarged revenue, unquestioned credit, absolute +certainty of payment of interest in coin, a national currency, and +such economy as is possible during war. + +The first feeble attempt to create a national currency was the +issue of demand notes under the act of July 17, 1861, described as +follows: + +"And the Secretary of the Treasury may also issue, in exchange for +coin, and as part of the above loan, or may pay for salaries or +other dues from the United States, treasury notes of a less +denomination then fifty dollars, not bearing interest, but payable +on demand by the assistant treasurer of the United States, at +Philadelphia, New York or Boston." + +The fatal defect of these notes was the promise to pay on demand. +How could they be paid? In what kind of money? They could not be +paid out of the current revenue, for that was insufficient to meet +current expenses. No reserve was provided for their payment, and, +when paid, there was no authority for their re-issue. All other +forms of securities bore interest, and these notes, not bearing +interest, were convertible into bonds and that was the end of them. +If that was the process why issue them at all? They did not prevent, +but rather expedited, the disappearance of gold. Of American silver +dollars there were none. Even the new fractional silver coins rose +to a premium, and were hoarded or exported. Still, the necessity +existed for some form of paper money that would be available for +circulation. The solution of this problem was properly left to +the next regular session of Congress. + +Congress did not act upon the recommendations for internal taxes, +but this subject was also left over until the next session. It +did provide, however, for a large increase of revenue from imports, +mainly upon articles that were then free from taxation and upon +articles regarded as luxuries; also for a direct tax on the states +of $20,000,000, and for a graded tax, from and after the first day +of January, 1862, upon the annual income of every person residing +in the United States, from whatever source the income should be +derived; if such annual income should exceed the sum of $800 a tax +of three per cent. on the excess above that limit. A provision +was made reducing the tax on incomes from treasury notes and other +securities of the United States one-half. The tax on incomes of +citizens of the United States residing abroad was placed at five +per cent., except on that portion derived from interest on treasury +notes and other securities of the United States, which was taxed +one and one-half per cent. + +While Congress was engaged in legislative duties in Washington, +the military forces of the Confederate States were gathering in +Virginia, with the principal force at Manassas, about twenty-five +miles southwest of Washington, under the command of General +Beauregard. The Union troops, composed mainly of three months' +volunteers, were in camp occupying the region about Washington on +both banks of the Potomac River, under the immediate command of +General McDowell, but with Lieutenant General Scott in full command. +I frequently visited the Union camps where the soldiers, fresh from +civil life and confident of easy success over the "rebels," were +being drilled. The cry was, "On to Richmond!" They could not +foresee the magnitude of the task they had undertaken. I will not +attempt to narrate the incidents of the Battle of Bull Run. I knew +it was to be fought on Sunday, the 21st of July. Soon after noon +of that day I mounted my horse, and with James Rollins, a Member +of Congress from Missouri, called on General Scott, and inquired +for news of the battle then going on. He told us he was quite sure +of a favorable result, but feared the loss of his gallant officers +as, the troops being raw, it would be necessary for their officers +to lead them. We crossed the pontoon bridge from Georgetown, and +then, passing by Arlington, we went to a new fort on the main road +from the Long Bridge. As we approached we could hear the distant +firing of cannon. We asked a sentinel on duty if he had heard the +sound all day. He said, "Yes, but not so loud as now." This was +significant but not encouraging. We returned to my lodgings on +Fifteenth street. Everywhere there was an uneasy feeling. At +eight o'clock in the morning I started for the residence of the +Secretary of War to get information of the battle. As I approached +I was seized by the arm, and, turning, saw Secretary Cameron. I +asked about the battle, but, without answering, he hurried me into +the house and said: "Our army is defeated, and my brother is killed." +He then gave way to passionate grief. His brother, Colonel Cameron, +had been killed, and the Union army was in full retreat. I was +enjoined to say nothing until morning. I obeyed his injunction. +At eleven o'clock that night I heard the clatter of a horse's feet +in full gallop. My nephew, Robert McComb, a boy about nineteen, +a private soldier in an Ohio regiment, but detailed as an orderly, +had been sent to the rear with a message. He saw the army in +retreat, and, being well mounted and believing that discretion was +the better part of valor, rode rapidly to my lodgings in Washington. +It is uncertain whether he or "Bull-Run" Russell, an English +reporter, made the best time to the Long Bridge. McComb gave me +a doleful account of the battle and retreat. The official reports +from both armies show that it was a drawn battle. General Sherman, +in his "Memoirs," gives a graphic history of the battle and expresses +the same opinion. + +Still, the battle of Bull Run was an important event. It dispelled +the illusion of the people of the north as to the duration and +gravity of the war. It demonstrated the folly of ninety days' +enlistments. It brought also, to every intelligent mind, the +dangers that would inevitably result from disunion. On the 22nd +of July, the day after the battle, the bill to authorize the +employment of 500,000 volunteers became a law. + +On the 29th of July two bills, one for the increase of the military +establishment of the United States, and one to provide for the +suppression of the rebellion, were passed. On the 5th of August +an act passed for the better organization of the military establishment. +Armed with the largest military power ever conferred upon a President, +with the almost unlimited power of taxation, the administration of +Mr. Lincoln entered upon the task before it. + +Having passed these provisions in aid of the government, the special +session of Congress closed on the 6th of August, 1861. + +I immediately returned to my home at Mansfield. Regiments were +being organized but it seemed to me that the mode of enlistment +was too slow. The people, though still resolute, were somewhat +troubled by the failure of military operations. I felt this so +strongly that I determined at once to adopt some plan to raise a +brigade to be composed of two regiments of infantry, one battery +of artillery and one squadron of cavalry. When I made application +to Governor Dennison for the requisite authority, he feared my plan +might interfere with existing organizations then being enlisted in +the different parts of the state, and I was persuaded to wait until +after the 15th regiment was recruited and in the field, and the +42nd was well under way. I also made up my mind to delay actual +recruiting until after the election in October of that year, so +that no political bias might enter into it. + +On the 24th of September I addressed a letter to the Hon. Simon +Cameron, Secretary of War, as follows: + + "Mansfield, Ohio, September 24, 1861. +"Hon. Simon Cameron, Secretary of War: + +"Dear Sir:--I respectfully ask for an order granting me leave to +recruit and organize, in this part of Ohio, a brigade of two +regiments of infantry, one squadron of cavalry, and two companies +of artillery. I know I can do it promptly. The squadron of cavalry +authorized to Major McLaughlin may, if desired, be considered as +part of the brigade. + +"For reasons that are probably unjust the governor and state military +authorities are less successful than I hoped, and I know that I +can get you recruits that they cannot. I wish no rank, pay, or +expenses for myself, and will freely act without compensation. I +care not who are the field officers, so I know they are men of +honor, honesty and experience. I will only ask of the department +the usual rations, pay and armament and equipage for the men; I +ask nothing for myself, will undertake upon my individual responsibility +to purchase any of them desired, receiving in return government +securities therefor. + +"I will so execute the order as not to interfere with the state +authorities, and will act in subordination to them. I will freely +confer with the government as to details, but would rather be left +as free as practicable in the selection of officers. + +"I hope, my dear sir, this application will receive your sanction, +and I will stake my reputation and property that what I offer shall +be accomplished. + + "Very truly yours, + "John Sherman." + +On the same day, in order to secure the active co-operation of +Secretary Chase, I wrote him as follows: + + "Mansfield, Ohio, September 24, 1861. +"Hon. S. P. Chase, Secretary of the Treasury: + +"My Dear Sir:--I have to-day written to General Cameron, asking an +order allowing me to recruit a brigade in this part of Ohio. I +know I can do it. I ask no office, rank, pay, or expenses for +myself, and will undertake to recruit this force in subordination +to the state and general government, and within such limits as may +be allowed. Whatever may be the reason, it is manifest that +voluntary enlistment needs the spur of active exertion and +solicitation. This I am willing to give, and, from offers freely +made to me by personal acquaintances, know that I can enlist hundreds +whom the state authorities cannot reach. + +"Can I ask your favorable influence and co-operation? I will pay +my own expenses, and ask only rations, tents and armament for the +men. Any of these I am willing to purchase upon my individual +credit, receiving in payment government securities. I pledge you +my reputation and all I am worth to accomplish what I offer. + +"If it is objected that my operation will interfere with state +enlistments, I will agree to subordinate my movements to the orders +of the governor, but for the good of the service I hope to be left +as free as possible. In the selection of officers I should want +to be especially consulted, so as to insure the honor, probity and +personal habits of such officers. Further than this I have no +choice. + +"If this meets your approbation promptly say so to General Cameron, +and let him set me to work. + + "Very truly yours, + "John Sherman." + +About the same time I had arranged with Governor Dennison for a +plan of enlistment which enabled the recruits to select their +officers, by allowing persons securing a certain number of recruits +to be captains, a less number first lieutenants, and a less number +second lieutenants. The governor very kindly agreed that he would +commission the persons selected in this way, leaving the regimental +organization to be composed of the best material that could be +found anywhere. On the 28th of September I issued and distributed, +mainly in the region near the line of the Pittsburg, Fort Wayne & +Chicago railroad, this circular: + +"TO THE YOUNG MEN OF OHIO. + +"I am authorized by the governor of Ohio to raise at once two +regiments of infantry and a battery of artillery, and a squadron +of cavalry. + +"I am also authorized to recommend one lieutenant for each company, +who shall at once receive their commissions and be furnished with +proper facilities for enlisting. I am now ready to receive +applications for such appointments, accompanied with evidence of +good habits and character, the age of applicant, and his fitness +and ability to recruit a company. + +"Major Wm. McLaughlin will command the squadron of cavalry. + +"The company officers will be designated by the soldiers of each +company, subject to the approval of the governor. + +"The field officers are not yet designated, but shall be men of +experience, and, if possible, of military education. + +"The soldiers shall have, without diminution, all they are entitled +to by law. + +"Danger is imminent. Promptness is indispensable. Let the people +of Ohio now repay the debt which their fathers incurred to the +gallant people of Kentucky for the defense of Ohio against the +British and Indians. They now appeal to us for help against an +invasion more unjustifiable and barbarous. + +"Letters can be addressed to me, marked 'Free,' at Mansfield, Ohio. + + "John Sherman. +"Mansfield, Ohio, September 28, 1861." + +The matter thus rested until after the election on the 9th of +October, when squads rapidly formed into companies, and within +twenty days Camp Buckingham was opened near Mansfield. + +In the performance of this self-imposed duty, I encountered but +one difficulty, and at one time a very serious one, the selection +of regimental officers, and especially of commanders of regiments. +I knew that military warfare was an art, a trade, an occupation, +where education, experience and preparation are absolutely essential +to effective service. The materials for soldiers abound everywhere, +but without discipline, order, obedience, and severe drilling men +are not soldiers. It was my desire to secure for the commanders +of regiments two graduates of West Point. I made application direct +to Washington for various details of officers of the regular army, +so that the soldiers in Camp Buckingham might have experienced +drill masters from the beginning. I failed to receive an answer, +and went to Washington, earnestly impressed with the importance of +my mission, and determined, if possible, that these men enlisted +by me should not be placed in the front of the enemy until they +had had all the benefit they could derive from military discipline +and drilling. When I arrived I found that Secretary Cameron was +indisposed to interfere with the purely military details of the +army, while General Scott, a brave old soldier whom I always loved +and admired, was firmly of the opinion that the favorable result +of the war depended upon strengthening the regular army, maintaining +its force and discipline, and especially retaining its valuable +officers. The regular army, almost disbanded at the beginning of +the war, was gradually filling up upon the basis of a new organization +and long enlistments, but it was idle, it seemed to me, to expect +that the young men of the country would enlist in the regular +service. While ready to respond to the call of their country in +its actual peril, they had no purpose to become regular soldiers +for life. It appeared to me, therefore, that the manifest policy +of the government should be to allow the regular army to be gradually +absorbed into the volunteer service, where the young officers +educated at the expense of the government might impart instruction +to regiments and brigades, instead of to squads and companies. I +spoke to General Scott about this, and the result of my interview +was very unpleasant. I fear we both lost our temper, though I +never ceased to respect the old general for the great service he +had rendered his country; but his day was past. + +After consulting Major Garesche, Assistant Adjutant-General, as to +the names of officers, I then applied to the President, explained +to him fully the situation of affairs, my promise, the gathering +of the soldiers in Camp Buckingham, their inexperience, and want +of drill masters, their ardent patriotism, stated my interview with +General Scott, and appealed to him to help me out of the dilemma. + +I never shall forget the interview with Mr. Lincoln, for he did +not hesitate, but sent for Major Garesche, and gave me the coveted +order before I left him, directing the Secretary of War to detail +two second lieutenants, James William Forsyth, of Ohio, and Charles +Garrison Harker, of New Jersey, and Sergeants Bradley and Sweet, of +the regular army, for service in the Ohio Volunteers, under my +direction. This order was the key that unlocked the difficulty +and gave to the force the elements of military discipline. At the +same time the requisite orders were given for uniforms, arms of +the best pattern, cannon, horses and various equipments. + +I then procured the detail of Major Robert S. Granger, of the United +States army, to command the camp and to organize the force. He +had graduated as a cadet from Ohio, was one of the officers of the +regular army surrendered by General Twiggs to the State of Texas +before the beginning of the war, and had given his parole not to +serve in the army until exchanged. Though this was not held to +apply to the enlistment of volunteers he so construed his parole +as to prevent him from serving in his regiment until duly exchanged. +When this was done he entered the service and was rapidly promoted +to Major General of Volunteers. + +Within sixty days 2,340 young men of Ohio were formed into the 64th +and 65th regiments, the 6th battery of artillery, and McLaughlin's +squadron of cavalry, armed with the best arms then in the service, +uniformed, equipped and partly drilled as soldiers, ready to march, +and actually marching, to the seat of war. No better material for +soldiers, and no better soldiers in fact, ever enlisted in any +cause or any service. + +I insert a letter from General Garfield written when he was in +command of this brigade: + + "Headquarters, 20th Brigade, } + "In the Field, 6 Miles from Corinth, Miss., May 17, 1862.} +"Hon. John Sherman, Washington, D. C. + +"Dear Sir:--I am now in command of the 20th Brigade, composed of +the 64th and 65th Ohio (the regiments raised by yourself) and the +13th Michigan and 51st Indiana Regiments. I have sent forward to +Washington the name of Lt. D. G. Swain (65th Ohio) of Salem, O., +for appointment as A. A. Gen. on my staff. He is an excellent +officer, and his nomination has been approved by Gen. Buell. I +will be particularly obliged to you if you will aid in securing +his appointment as soon as possible. The whole army advances toward +Corinth this morning. + + "Very respectfully yours, + "J. A. Garfield, + "Brig. Gen. Vols. U. S. A." + +When General Sherman was in Louisville in October, 1861, he was +called upon by Secretary Cameron, and they engaged in a general +discussion of the military situation. General Sherman said that +for aggressive movements, the United States would require 200,000 +men. This was so far beyond the ideas of the time that he was +regarded as crazy, and was soon after relieved from his command by +General Buell. Secretary Cameron was blamed for this, but his +letter to me, here inserted, shows that he was absent from Washington +when the order was made: + + "War Department, Nov. 14, 1861. +"Sir:--Your letter of the 10th inst. is received. General Sherman +was recalled from the command in Kentucky during my absence at the +north on official business. Since my return on the 11th, I have +not had time to make any inquiries concerning the cause of the +change, but I feel certain it was not from any want of confidence +in the patriotism or capacity of your brother. He has been ordered +to Missouri, under the immediate command of Major General Halleck, +of the regular army, and the fact that he has been so assigned is +evidence of the confidence reposed in him. + + "Very respectfully, your obedient servant, + "Simon Cameron, Secretary of War." + + +CHAPTER XII. +PASSAGE OF THE LEGAL TENDER ACT IN 1862. +My Interview with Lincoln About Ohio Appointments--Governmental +Expenses Now Aggregating Nearly $2,000,000 Daily--Secretary Chase's +Annual Report to Congress in December, 1861--Treasury Notes a Legal +Tender in Payment of Public and Private Debts--Beneficial Results +from the Passage of the Bill--The War Not a Question of Men, but +of Money--Proposed Organization of National Banks--Bank Bills Not +Taxed--Local Banks and Their Absorption by the Government--The 1862 +Issue of $150,000,000 in "Greenbacks"--Legal Tender Act a Turning +Point in Our Financial History--Compensation of Officers of the +Government. + +About this time I had an interview with Mr. Lincoln which may be +of interest. In making the local appointments in Ohio he was +naturally governed largely by his strong affinities for old Whig +associates in Congress, of one of whom, General Schenck, he was +especially fond. I thought some of his appointments in Ohio were +not judicious, and concluded I would go to him and make a general +complaint of the distribution of these offices. I felt that he +failed to consider the fact that the Republican party contained +many men who had not belonged to the Whig party. I requested an +interview with him which was promptly granted, and called at his +office one evening. He was seated in an easy chair and seemed to +be in excellent humor. I proceeded to complain of some of his +appointments in Ohio and as I progressed the expression of his face +gradually changed to one of extreme sadness. He did not say a +word, but sank in his chair, placing his feet upon the table, and +looking, as I thought, the picture of despair. I proceeded with +my complaint until I began mentally to reproach myself for bothering +the President of the United States with so unimportant a matter as +the choice of persons to fill local offices in Ohio, when the +country was in the throes of revolution. Finally I told him I felt +ashamed to disturb him with such matters and would not bother him +again with them. His face brightened, he sat up in his chair and +his whole manner changed, until finally he almost embraced me. He +then told me many interesting stories of his short service in +Congress and of the men with whom he was brought in contact. The +close of the interview was very pleasant and I kept my promise to +him about his appointments. + +When Congress convened on the 2nd of December, 1861, the financial +condition of the government was more alarming than at any other +period during the war. + +The Secretary of the Treasury had ample and complete authority, +given him by the act of July, 1861, to borrow money on the credit +of the government, but he could not deal with the system of state +banks then existing in the several states. He was forbidden, by +the sub-treasury act of 1846, to receive notes of state banks and +was required to receive into and pay from the treasury only the +coin of the United States; but by the act of August 5, 1861, he +was permitted to deposit to the credit of the Treasurer of the +United States, in such solvent specie-paying banks, as he might +select, any of the moneys obtained from loans, the moneys thus +deposited to be withdrawn only for transfer to the regularly +authorized depositaries, or for the payment of public dues, including +certain notes payable on demand, as he might deem expedient. He +had, however, no authority to receive from individuals or banks +any money but coin. + +The coin received from the Boston, New York, and Philadelphia banks, +in payment of their subscriptions to the government loans, to the +amount of nearly $150,000,000, had to be sent to every point in +the United States to meet public obligations, and, when thus +scattered, was not readily returned to the banks, thus exhausting +their resources and their ability to loan again. + +The demand notes, authorized by the act of July 17, 1861, were also +paid out by the treasury; but from time to time were presented for +redemption in coin or in payment of customs duties to the exclusion +of coin, and thus both the banks and the government were greatly +crippled, the banks suspending specie payments on the 30th day of +December, 1861. + +At this time an army of 500,000 Union soldiers was in the field, +and a powerful navy, with vast stores of artillery and ammunition, +had been created. In providing for their sustenance, comfort and +equipment the government had been obliged to incur expenses far +exceeding in magnitude any which had been hitherto known in its +history, aggregating nearly $2,000,000 per day. + +It was apparent that a radical change in existing laws relating to +our currency must be made, or the government would practically be +unable to make the current disbursements on account of the war, +and the destruction of the Union would be unavoidable, notwithstanding +the immense resources of the country which had then hardly been +touched. + +The annual report of Secretary Chase reached Congress on the 10th +of December, having been delayed by the press of business. So much +of it as related to the currency was the basis of the long debates +that followed. The circulation of the banks of the United States +on the 1st of January, 1861, was reported at $202,000,767. Of this +$152,000,000, in round numbers, was in the loyal states, including +West Virginia, and $50,000,000 in the rebel states, the whole +constituting a loan without interest from the people to the banks, +costing the latter only the expense of issue and redemption and +the interest on the specie kept in hand for the latter purpose. +The secretary called especial attention to the organization and +nature of these banks, and questioned whether a currency of banks +issued by local institutions under state laws was not in fact +prohibited by the national constitution. He said: + +"Such emissions certainly fall within the spirit, if not within +the letter, of the constitutional prohibition of the emission of +'bills of credit' by the states, and of the making by them of +anything except gold and silver coin a legal tender in payment of +debts. However this may be, it is too clear to be reasonably +disputed that Congress, under its constitutional powers to lay +taxes, to regulate commerce, and to regulate the value of coin, +possesses ample authority to control the credit circulation which +enters so largely into the transaction of commerce, and affects in +so many ways the value of coin. In the judgment of the secretary, +the time has arrived when Congress should exercise this authority." + +He described with great force the weakness of the state banking +system, and the repeated losses by the people of the United States +on account of the failure of such banks. He recommended two plans +by either of which he held that these banks might be absorbed, and +a national currency be substituted in the place of their issues. +One plan proposed the gradual withdrawal from circulation of the +notes of private corporations, and the issue in their stead of +United States notes, payable in coin on demand, in amounts sufficient +for the useful ends of a representative currency. The other proposed +a system of national banks authorized to issue notes for circulation +under national direction, to be secured as to prompt convertibility +into coin by the pledge of United States bonds and other needful +regulations. He discussed these two plans at length, but concluded +by recommending a system of national banks, the advantages of which +would be uniformity in currency, uniformity in security, an effectual +safeguard against depreciation, and protection from losses from +discounts and exchanges. He expressed the opinion that such notes +would give to the government the further advantage of a large demand +for government securities, of increased facilities for obtaining +the loans required for the war, a reduction of interest, and a +participation by the government in the profit of circulation without +risking the perils of a great money monopoly. It will be noticed +that the secretary nowhere suggested the suspension of coin payments, +or making the notes a legal tender in payment of public and private +debts, or the redemption in coin of the bank notes to be issued. + +These recommendations were referred to the committee of ways and +means of the House, and by it to a sub-committee, of which Elbridge +G. Spaulding, of New York, was chairman. Undoubtedly we owe to +him, more than to any other individual Member, the important and +radical changes made in our currency system by the act reported by +him to the House and amended in the Senate. Mr. Spaulding perceived +the objection to the recommendations of Secretary Chase that they +did not provide for any payments but in coin, or call for a suitable +provision that the notes when issued should be a legal tender for +public and private debts, or for their reissue in case of payment, +nor did they provide for the absorption of the demand notes +outstanding, which were, on their face, payable on demand, an +obligation that could not be ignored without severely impairing +the public credit. It was also apparent that the system of national +banks proposed by the secretary could not be organized and put in +effective force for a year or more, and that in the meantime the +state banks would be in a condition of suspension, without coin or +the possibility of obtaining it, and, with no effective money which +the people were bound to receive, or which the government could +receive, it would have been difficult to carry on the operations +of the war. + +The first bill introduced by Mr. Spaulding, on the 30th of December, +met some of these difficulties. It provided for the issue of +$50,000,000 treasury notes, payable on demand, the notes to be +receivable for all debts and demands due to or by the United States, +to be a legal tender in payment of all debts, public or private, +within the United States, and exchangeable at their face value, +the same as coin, at the treasury of the United States, and the +offices of the assistant treasurers in New York, Boston, Philadelphia, +St. Louis and Cincinnati, for any of the coupon or registered bonds +which the secretary was authorized to issue. It also contained +this provision: "Such treasury notes may be reissued from time to +time as the exigencies of the public service may require," the +first authority ever given for the reissue of treasury notes after +redemption. + +On the 7th of January, 1862, Mr. Spaulding reported the bill to +the House with some important changes, and it soon became the +subject of a long and interesting debate. On the 22nd of January, +Secretary Chase returned Mr. Spaulding's bill to him and suggested +some modifications, referring to the legal tender clause as follows, +being his first reference to that clause: + +"Regretting exceedingly that it is found necessary to resort to +the measure of making fundable notes of the United States a legal +tender, but heartily desiring to co-operate with the committee in +all measures to meet existing necessities in the most useful and +least hurtful to the general interest, I remain," etc. + +In a letter to the committee of ways and means, on the 29th of +January, the secretary said: + +"The condition of the treasury certainly needs immediate action on +the subject of affording provision for the expenditures of the +government, both expedient and necessary. The general provisions +of the bill submitted to me seem to me well adapted to the end +proposed. There are, however, some points which may, perhaps, be +usefully amended. + +"The provision making United States notes a legal tender has +doubtless been well considered by the committee, and their conclusion +needs no support from any observation of mine. I think it my duty, +however, to say, that in respect to this provision my reflections +have conducted me to the same conclusion they have reached. It is +not unknown to them that I have felt, nor do I wish to conceal that +I now feel, a great aversion to making anything but coin a legal +tender in payment of debts. I has been my anxious wish to avoid +the necessity of such legislation. It is, however, at present +impossible, in consequence of the large expenditures entailed by +the war, and the suspension of the banks, to procure sufficient +coin for disbursements; and it has, therefore, become indispensably +necessary that we should resort to the issue of United States notes. +. . . Such discrimination should, if possible, be prevented; and +the provision making the notes legal tender, in a great measure at +least, prevents it, by putting all citizens, in this respect, on +the same level, both of rights and duties." + +On the 3rd of February the secretary wrote to Mr. Spaulding as +follows: + +"Mr. Seward said to me on yesterday that you observed to him that +my hesitation in coming up to the legal tender proposition embarrassed +you, and I am very sorry to observe it, for my anxious wish is to +support you in all respects. + +"It is true that I came with reluctance to the conclusion that the +legal tender clause is a necessity, but I came to it decidedly, +and I support it earnestly. I do not hesitate when I have made up +my mind, however much regret I may feel over the necessity of the +conclusion to which I come." + +On the 5th of February the secretary became more urgent, and wrote +to Mr. Spaulding the following brief note: + +"My Dear Sir:--I make the above extract from a letter received from +the collector of New York this morning. It is very important the +bill should go through to-day, and through the Senate this week. +The public exigencies do not admit of delay. + + "Yours truly, + "S. P. Chase. +"Hon. E. G. Spaulding." + +It will thus be perceived that, whatever may have been the +constitutional scruples of Secretary Chase in respect to the legal +tender clause, he yielded to it under the pressure of necessity, +and expressed no dissent from it until, as chief justice, his +opinion was delivered in the case of Hepburn vs. Griswold, in the +Supreme Court of the United States. + +The bill, much modified from the original, passed the House of +Representatives by the decided vote of yeas 93, nays 59. As it +passed the House it contained authority to issue, on the credit of +the United States, United States notes to the amount of $150,000,000, +not bearing interest, payable to bearer at the treasury of the +United States, at Washington or New York. It provided that +$50,000,000 of said notes should be in lieu of the demand treasury +notes authorized by the act of July 17, 1861, and that said demand +notes should be taken up as rapidly as practicable. It provided +that the treasury notes should be receivable in payment of all +taxes, duties, imports, excise, debts and demands of all kinds due +to the United States, and all debts and demands owing by the United +States to individuals, corporations and associations within the +United States, and should be lawful money and a legal tender, in +payment of all debts, public and private, within the United States. + +This bill came to the Senate on the 7th of February. It was followed +on the same day by a letter from Secretary Chase to Mr. Fessenden, +as follows: + +"Sir:--The condition of the treasury requires immediate legislative +provision. What you said this morning leads me to think that the +bill which passed the House yesterday will hardly be acted upon by +the Senate this week. Until that bill shall receive the final +action of Congress, it seems advisable to extend the provisions of +the former acts, so as to allow the issue of at least $10,000,000 +in United States notes, in addition to the $50,000,000 heretofore +authorized. I transmit a bill framed with that object, which will, +I trust, meet your approval and that of Congress. Immediate action +on it is exceedingly desirable." + +The request for authority to issue $10,000,000 additional demand +notes was immediately granted, and the bill was passed without +opposition. + +The currency bill was considered in the committee on finance of +the Senate, and four important and radical amendments were reported +by that committee. These amendments were as follows: + +First--That the legal tender notes should be receivable for all +claims and demands against the United States, of every kind +whatsoever, "_except for interest on bonds and notes, which shall +be paid in coin_." + +Second--That the secretary might dispose of United States bonds, +"at the market value thereof, for coin or treasury notes." + +Third--A new section authorizing deposits in the sub-treasuries at +five per cent., for not less than thirty days, to the amount of +$25,000,0000, for which certificates of deposit might be issued. + +Fourth--An additional section, No. 5, "that all duties on imported +goods and proceeds of the sale of public lands," etc., should be +set apart to pay coin interest on the debt of the United States; +and one per cent. for a sinking fund, etc. + +It was felt that if no provision was made for the payment of the +interest on the bonds in coin, they would depreciate more and more, +while such payment would tend, as it did, to maintain them nearer +to their specie standard. In order to obtain coin for the payment +of interest, provision was made that all duties on imported goods, +and the proceeds of the sale of public lands, should be payable in +coin and be set apart to pay coin interest on the debt of the United +States, and one per cent. for a sinking fund to provide for ultimate +redemption of the bonds. These amendments were considered of prime +importance. It was felt that the duty on imported goods should +not be lessened by any depreciation of our local currency. Such +importations were based upon coin values, and the tax levied upon +them was properly required to be paid in coin. This security of +coin payment enabled the government to sell bonds at a far higher +rate than they would have commanded without it, and tended also to +limit the depreciation of United States notes. The bill and +amendments were reported on the 12th, and became the subject of +what was regarded as a very able debate. + +There was decided opposition in the Senate to the legal tender +clause, headed by Mr. Fessenden. Mr. Collamer, who also was opposed +to it, made a motion to strike it out. Upon that subject I made +my first lengthy speech in the Senate, a few extracts from which +I insert: + +"The motion of the Senator from Vermont now for the first time +presents to the Senate the only question upon which the members of +the committee of finance had any material difference of opinion, +and that is, whether the notes provided for in this bill shall be +made a legal tender in payment of public and private debts. Upon +this point I will commence the argument where the Senator from +Maine left it. + +"In the first place, I will say, every organ of financial opinion +--if that is a correct expression--in this country agrees that +there is such a necessity, in case we authorize the issue of demand +notes. You commence with the Secretary of the Treasury, who has +given this subject the most ample consideration. He declares, not +only in his official communications here, but in his private +intercourses with the members of the committee, that this clause +is indispensably necessary to the security and negotiability of +these demand notes. We all know from his antecedents, from his +peculiar opinions, that he would probably be the last man among +the leading politicians of our country to yield to the necessity +of substituting paper money for coin. He has examined this question +in all its length and breadth. He is in a position where he feels +the necessity. He is a statesman of admitted ability, and +distinguished in his high opinion. He informs us that, without +this clause, to attempt to circulate as money the proposed amount +of demand notes of the United States, will prove a fatal experiment. + +"In addition to his opinion, we have the concurring opinion of the +Chamber of Commerce of the city of New York. With almost entire +unanimity they have passed a resolution on the subject, after full +debate and consideration. That resolution has been read by your +secretary. You have also the opinion of the committee of public +safety of the city of New York, composed of distinguished gentlemen, +nearly all of whom are good financiers, who agree fully in the same +opinion. I may say the same in regard to the Chambers of Commerce +of the city of Boston, of the city of Philadelphia, and of almost +every recognized organ of financial opinion in this country. They +have said to us, in the most solemn form, that this measure was +indispensably necessary to maintain the credit of the government, +and to keep these notes anywhere near par. In addition, we have +the deliberate judgment and vote of the House of Representatives. +After a full debate, in which the constitutionality, expediency +and necessity of this measure were discussed, in which all the +objections that have been made here, and many more, were urged, +the House of Representatives, by a large vote, declared that it +was necessary to issue United States notes, and that this clause +was indispensable to their negotiation and credit. . . . + +"A hard necessity presses the government. $100,000,000 is now +due the army, and $250,000,000 more up to July first. The banks +of New York, Boston and Philadelphia, have exhausted their capitals +in making loans to the government. They have already tied up their +capital in your bonds. Among others, Mr. Vail, the cashier of the +Bank of Commerce, the largest bank corporation in the United States, +and one that has done much to sustain the government, appeared +before the finance committee, and stated explicitly that the Bank +of Commerce, as well as other banks of New York, could aid the +government no further, unless your proposed currency was stamped +by, and invested with, the attributes of lawful money, which they +could pay to others as well as receive themselves. + +"Bonds cannot be sold except at a great sacrifice, because there +is no money to buy them. As soon as the banks suspended, gold and +silver ceased to circulate as money. You cannot sell your bonds +for gold and silver, which is the only money that can now be received +under the sub-treasury law. This currency made a legal tender was +necessary to aid in making further loans. I insisted that the bill +was constitutional. The Senator from Vermont has read extracts +from the debates in the national convention, and from Story's +'Commentaries,' tending to show that Congress cannot authorize the +issue of bills of credit. But I submit to him that this question +has been settled by the practice of the government. We issued such +bills during the War of 1812, during the war with Mexico, and at +the recent session of Congress. We receive them now for our +services; we pay them to our soldiers and our creditors. These +notes are payable to bearer; they pass from hand to hand as currency; +they bear no interest. If the argument of the Senator is true, +then all these notes are unauthorized. The Senator admits that +when we owe a debt and cannot pay it, we can issue a note. But +where does he find the power to issue a note in the constitution? +Where does he find the power to prescribe the terms of the note, +to make it transferable, receivable for public dues? He draws all +these powers as incidents to the power to borrow money. According +to his argument, when we pay a soldier a ten dollar demand bill, +we borrow ten dollars from the soldier; when I apply to the secretary +of the Senate for a month's pay, I loan the United States $250. +This certainly is not the view we take of it when we receive the +money. On the other hand, we recognize the fact that the government +cannot pay us in gold. We receive notes as money. The government +ought to give, and has the power to give, to that money, all the +sanction, authority, value, necessary and proper, to enable it to +borrow money. The power to fix the standard of money, to regulate +the medium of exchanges, must necessarily go with, and be incident +to, the power to regulate commerce, to borrow money, to coin money, +to maintain armies and navies. All these high powers are expressly +prohibited to the states and also the incidental power to emit +bills of credit, and to make anything but gold and silver a legal +tender. But Congress is expressly invested with all these high +powers, and, to remove all doubt, is expressly authorized to use +all necessary and proper means to carry these powers into effect. + +"If you strike out the legal tender clause you do so with the +knowledge that these notes will fall dead upon the money market of +the world. When you issue demand notes, and announce to the world +your purpose not to pay any more gold and silver, you then tender +to those who have furnished you provisions and services this paper +money. What can they do? They cannot pay their debts with it; +they cannot support their families with it, without a depreciation. +The whole then depends on the promise of the government to pay at +some time not fixed on the note. Justice to our creditors demands +that it should be a legal tender; it will then circulate all over +the country, and it will be the lifeblood of the whole business of +the country, and it will enable capitalists to buy your bonds. +The only objection to the measure is that too much may be issued. +He did not believe the issue of $150,000,000 would do any harm. +It is only a mere temporary expedient. . . . + +"I have thus, Mr. president, endeavored to reply to the constitutional +argument of the Senator from Vermont. Our arguments must be +submitted finally to the arbitration of the courts of the United +States. When I feel so strongly the necessity of this measure, I +am constrained to assume the power, and refer our authority to +exercise it to the courts. I have shown, in reply to the argument +of the Senator from Maine, that we must no longer hesitate as to +the necessity of this measure. That necessity does exist, and now +presses upon us. I rest my vote upon the proposition that this is +a necessary and proper measure to furnish a currency--a medium of +exchange--to enable the government to borrow money, to maintain an +army and support a navy. Believing this, I find ample authority +to authorize my vote. We have been taught by recent fearful +experience that delay and doubt in this time of revolutionary +activity are stagnation and death. I have sworn to raise and +support your armies; to provide for and maintain your navy; to +borrow money; to uphold your government against all enemies, at +home and abroad. That oath is sacred. As a Member of this body, +I am armed with high powers for a holy purpose, and I am authorized +--nay, required--to vote for all laws necessary and proper for +executing these high powers, and to accomplish that purpose. This +is not the time when I would limit these powers. Rather than yield +to revolutionary force, I would use revolutionary force. Here it +is not necessary, for the framers of the constitution did not assume +to foresee all the means that might be necessary to maintain the +delegated powers of the national government. Regarding this great +measure as a necessary and proper one, and within our power to +enact, I see plain before me the path of duty, and one that is easy +to tread." + +The motion to strike out the legal tender clause in the bill was +defeated by a vote of yeas 17, nays 22. The amendments proposed +by the finance committee were agreed to substantially as reported +by the committee. The bill finally passed by a vote of yeas 30, +nays 7. The House agreed to the amendment providing for the payment +of the interest on bonds and notes in coin, and disagreed to the +remaining amendments, and these were referred to a committee of +conference, composed of Messrs. Fessenden, Sherman and Carlisle, +of West Virginia, of the Senate and Messrs. Stevens, Horton, and +Sedgwick, of the House. The conference met, and, after two or +three days of full discussion, the material parts of the disagreements +between the two Houses were settled. The provision that coin only +be received for duties on imports, and that it be held as a fund +to pay the interest on the bonded debt, was retained. The report +of the conference was agreed to by both Houses, and on the same +day the bill was approved by the President. Thus, the legal tender +act, after a most able and determined opposition, became a law on +the 25th of February, 1862. + +It would be difficult to measure the beneficial results that rapidly +followed the passage of this bill. The public credit was greatly +strengthened by the provision for the payment of interest in coin +furnished by duties on imported goods. The legal tender clause +was acquiesced in by all classes, and we had, for the first time, +in circulation national paper money as the actual standard of value. +It was silent as to time of its payment, but each note contained +a promise of the United States to pay a specific sum, and the +implied obligation was to pay in coin as soon as practicable. + +On the 11th of July, 1862, a further issue of $150,000,000 United +States treasury notes (or "greenbacks," as they were commonly called +from their color) of the same description was authorized, and +subsequent issues increased the total amount to $450,000,000, the +extreme limit. By the act of March 31, 1863, fractional currency +was authorized to an amount not exceeding $50,000,000, to take the +place of fractional silver coins, which had entirely disappeared +from circulation, and this amount was issued. + +The passage of the legal tender act was the turning point of our +physical and financial history. Less than a year before the +government was bankrupt; our bonds bearing six per cent. interest +were sold at a discount; our national expenditures exceeded our +receipts; loans could only be made upon the basis of coin, and this +coin was disappearing from circulation. We had to appeal to the +patriotism of bankers to accept the demand notes of the United +States as money, with no prospect of being able to pay them. Our +regular army was practically disbanded by the disloyalty of many +of its leading officers. Washington was then practically in a +state of siege, forcing me, in May, 1861, to go there at the heels +of the 7th regiment of New York militia, avoiding the regular +channels of travel. The city of Baltimore was decked under the +flag of rebellion. Through the State of Maryland, loyal citizens +passed in disguise, except by a single route opened and defended +by military power. The great State of Kentucky, important as well +from its central position as from the known prowess and courage of +its people, hung suspended in doubt between loyalty and secession. +In the State of Missouri, St. Louis was the only place of unquestioned +loyalty, and even there we regarded it a fortunate prize that we +were able to take the public arms from a government arsenal. The +whole State of Virginia, with the single exception of Fortress +Monroe, was in the possession of the revolutionary force. + +But from the passage of the legal tender act, by which means were +provided for utilizing the wealth of the country in the suppression +of the rebellion, the tide of war turned in our favor. Delaware, +after a short hesitation, complied with the proclamation of the +President. Maryland had, by clear and repeated votes and acts, +arrayed herself on the side of the Union. Her rebellious sons who +fought against the old flag could not tread in safety on a single +foot of the soil of that state. Western Virginia, the eastern +peninsula, and many ports on the eastern coast, were securely +reclaimed. The State of Kentucky had distinctly, by the vote of +her people, and by the action of all her constituted authorities, +proclaimed her loyalty, and her sons were fighting side by side +with the soldiers of other states to expel traitors who, in her +days of doubt, had seized upon a small portion of her soil, which +they still occupied. In the State of Missouri the constituted +authorities, organized by a convention of the people duly elected, +were sustained by physical power in nearly all the state, and the +rebellion there was subsiding into bands of thieves, bridge burners, +and small parties of guerillas, who could soon be readily controlled +by local militia. In nearly every rebellious state, the government +had secured a foothold, and an army of half a million men, armed, +organized and disciplined, impatiently awaited the word of command +to advance the old banner of our country against every foe that +stood in its way. Where does the history of nations present an +example of greater physical weakness followed so soon by greater +physical strength? When have results more wonderful been accomplished +in eight months? + +At the beginning of the year 1862 we were physically strong but +financially weak. Therefore, I repeat, the problem of this contest +was not as to whether we could muster men, but whether we could +raise money. There was great wealth in the country but how could +it be promptly utilized? To that question the diligent attention +of Congress was applied. The banks which had aided us with money +were crippled and had suspended coin payments. The Secretary of +the Treasury was begging at the doors of both Houses for means to +meet the most pressing demands. On the 15th of January, 1862, the +London "Post," the organ of Lord Palmerston, said: + +"The monetary intelligence from America is of the most important +kind. National bankruptcy is not an agreeable prospect, but it is +the only one presented by the existing state of American finance. +What a strange tale does not the history of the United States for +the past twelve months unfold? What a striking moral does it not +point? Never before was the world dazzled by a career of more +reckless extravagance. Never before did a flourishing and prosperous +state make such gigantic strides towards effecting its own ruin." + +The legal tender act, with its provision for coin receipts to pay +interest on bonds, whatever may be said to the contrary by theorists, +was the only measure that could have enabled the government to +carry on successfully the vast operations of the war. Our annual +expenditures at that time were four times the amount of our currency; +were three times the aggregate coin of the country; were greater +than any ever borne by any nation in ancient or in modern times. +The highest expenditure of Great Britain during her war with +Napoleon, at a time when her currency was inflated, when she made +the Bank of England notes a legal tender, was but Ł100,000,000. + +Anticipating these enormous expenditures I introduced a bill which +became a law on the 31st of July, 1861, which provided for a +commission to examine and report as to the compensation of all +offices for the government, the commission to be composed of two +Members of the Senate, three Members of the House of Representatives, +one officer of the navy, and one officer of the army, who were +directed to examine and report, as soon as practicable, a fair and +just compensation for each officer of the government, and such +regulations as would secure a more economical collection of the +revenue. When this bill was pending I stated its purpose and my +hope to accomplish a reduction of the expenditures of the government, +or, at least, an equalization of the salaries then paid to the +different officers. We sought economy by the reduction of expenses. +I was chairman of this commission, and Senator Clark, of New +Hampshire, was my associate. The commission collected a mass of +information, and upon it based several bills introduced in the +second session of the 37th Congress. Some of these were made +nugatory by the rise of prices, measured in most cases by the fall +in value of our currency, but many of their provisions were ingrafted +into other bills that became laws. + +The organization of national banks, authorized to issue circulating +notes, is so intimately connected with legal tender United States +notes that I think it proper to consider them in connection, though +the banking law did not pass until 1863. The two forms of currency, +one issued directly by the government as lawful money of the United +States and a legal tender, and the other issued by private +corporations, but secured by bonds of the United States, constitute +a system of national currency which, organized in the midst of war, +was an important aid to the government in its great struggle, and +when placed at par with coin by the resumption act has proven to +be the best paper money created by legislation in this or any other +country. + +The issue of circulating notes by state banks had been the fruitful +cause of loss, contention and bankruptcy, not only of the banks +issuing them, but of all business men depending upon them for +financial aid. Inflation and apparent prosperity were often followed +by the closing of one bank and distrust of all others. The notes +of a broken bank were rarely paid, the assets of such bank being +generally applied to the payment of other liabilities, leaving the +loss to fall on the holders of the notes, mostly innocent persons +of limited means. This led to the adoption in 1846 of the sub- +treasury system, by which all payments to the treasury were required +to be in coin, to be held until required for disbursements on +government account. This protected the United States, but it did +not save the people from loss, as, from necessity, they were +compelled to use bank bills authorized by the several states, +varying in value and security, and chiefly limited in circulation +to the state in which issued. With a narrow view of the powers of +the national government, Congress had repeatedly refused to authorize +a national bank, a policy I heartily approve, not from a doubt of +the power of Congress to grant such a charter, but from the danger +of intrusting so vast a power in a single corporation, with or +without security. This objection did not lie against the organization +of a system of national banks extending over the country, which +required every dollar of notes issued to be secured by a larger +amount of bonds of the United States, to be deposited in the treasury +of the United States, thus saving the note holder from all possibility +of loss. + +Secretary Chase, in his report of December 9, 1861, recommended +that a tax be imposed upon notes issued by state banks and also +that Congress should exercise its authority to establish a system +of national banks, with proper safeguards and limitations. A bill +was introduced for the latter purpose in the House of Representatives +in 1861, but, owing to the urgency for legislation on war measures, +it was not acted upon. + + +CHAPTER XIII. +ABOLISHMENT OF THE STATE BANKS. +Measures Introduced to Tax Them out of Existence--Arguments That +Induced Congress to Deprive Them of the Power to Issue Their Bills +as Money--Bill to Provide a National Currency--Why Congress Authorized +an Issue of $400,000,000, of United States Notes--Issue of 5-20 +and 10-40 Bonds to Help to Carry on the War--High Rates of Interest +Paid--Secretary Chase's Able Management of the Public Debt--Our +Internal Revenue System--Repeal of the Income Tax Law--My Views on +the Taxability of Incomes. + +Long before I became a Member of Congress I had carefully studied +the banking laws of the several states. The State of Ohio adopted, +in 1846, an improved system of banking. My study and experience +as a lawyer in Ohio convinced me that the whole system of state +banks, however carefully guarded, was both unconstitutional and +inexpedient and that it ought to be overthrown. When I entered +Congress I was entirely prepared, not only to tax the circulation +of state banks, but to tax such banks out of existence. But, while +this feeling prevailed in the west, the opposite feeling prevailed +in the New England and Middle States, where their banking system +had been so improved that bank failures were rare, and bank bills +were protected by mutual guaranties. + +The Secretary of the Treasury had, in two annual messages, proposed +a tax on the circulation of bank bills. He believed that the +existing bank circulation prevented or embarrassed the process of +funding, by which alone the bonds of the United States could be +absorbed. He was forbidden by law to receive bank bills in exchange +for bonds or for any purpose, so that the current money of the +people was not available for the purchase of bonds. This was an +additional argument for taxing the state banks out of existence. +I introduced a measure for this purpose as an amendment to the +revenue bill, but it was postponed to save it from defeat. + +I introduced a bill in January, 1863, containing two sections, the +first to levy a tax of two per cent. per annum on the circulation +of all bank bills, and the second to provide for a tax of ten per +cent. on all fractional currency under one dollar issued by +corporations or individuals. Upon this bill I made a carefully +prepared speech, not only defending the proposed tax, but declaring +my purpose to urge a gradual increase of the tax until all state +bank bills were excluded from circulation. As the reversal of this +policy is threatened I feel justified in briefly restating the +argument that induced Congress to deprive all state banks of the +power to issue their bills as money. + +I drew the distinction between the ordinary powers of banking and +the issue of bank bills. I said that the business of banking proper +consisted in loaning money, discounting bills, facilitating exchanges +of productions by the agency of commercial paper, and in receiving +and disbursing the deposits of individuals. The issue of bank +bills was an exclusive privilege conferred only on a few corporations. +It was a privilege that an individual could not enjoy. No person +could issue his bills in the form of paper money without a corporate +franchise granted him and his associates, either by a general +banking law, or by an act of incorporation. All the business of +banking might be exercised by private individuals except this +franchise. There was no reason why any one individual or a +partnership might not carry on all the business incident to banking +except this one of issuing bills to circulate as money. The largest +banking houses in the world did not exercise the privilege of +issuing bills. The strongest banks in the United States, such as +the Bank of Commerce of New York, had but little or no circulation, +while the weakest banks supported themselves and made profit by +issuing the largest quantity of bills authorized. The law then +existing taxed heavily the business of banking proper. All commercial +paper--checks, drafts, orders, bills of exchange, protests, bonds +--every instrument that was used in the ordinary process of banking +--was heavily taxed, while bank bills were not taxed at all. A +private banker doing business had to pay a license of $100, but a +bank of circulation was expressly exempted from the necessity of +procuring a license. The tax law, as it stood, had this significant +provision: "But not to include incorporated banks legally authorized +to issue notes as circulation." Every commercial instrument was +required to pay a stamp tax, but this did not attach to a bank +bill. Bank notes issued for circulation were expressly excepted. +The only tax levied upon banks of circulation was a tax of three +per cent. on the net income. This tax could be deducted from the +dividend of the stockholders. The discrimination in favor of banks +of circulation ran through all the tax laws, while other corporations, +such as railroad companies, insurance companies and the like, were +subject to heavy taxes. + +The profits of banking were then very great. The average profits +of the banks of New York were twelve and one half per cent. per +annum. The burdens imposed upon the banks by their charters were +lessened by the suspension of specie payments. When the banks had +to keep in their vaults coin to the amount of one-third of their +circulation, and were liable to be called upon any day for the +redemption of their notes in gold and silver, they might claim +exemption from taxes on their circulating notes. But during the +suspension of coin payment there ws no such liability. Whether +right or wrong the banks suspended specie payments, and increased +their currency without paying either principal of it or interest, +or tax on it, though in direct violation of law in some states. + +I referred in my speech to an interview which was sought by the +banks of our chief commercial cities with the Secretary of the +Treasury, to which they invited the financial committees of the +two Houses to hear their propositions for carrying on the financial +operations of the government. We all went to the office of the +Secretary of the Treasury, and the proposition was there made that +the United States should issue no paper money whatever, that the +specie clause, as it is called, of the sub-treasury act should be +repealed, and that we should carry on the war upon the basis of +the paper money of the banks, legalizing the suspension of specie +payments, and that the government should issue no paper except upon +an interest of six per cent., or higher if the money markets of +the world demanded more. That was their plan of finance, the plan +substantially adopted in the War of 1812, and which had been +condemned by every statesman since that time, a plan of carrying +on the operations of our government by an association of banks over +which Congress had no control, and which could issue money without +limit so far as national laws affected it. That was the scheme +presented to us by very intelligent gentlemen engaged in the banking +business. They were honest and in earnest, but it appeared to me +as pretentious and even ludicrous. + +It was claimed that a tax on banks interfered with vested rights. +I said that all taxes that were levied by the government were to +maintain vested rights, liberty and life. All these corporate +franchises were held subject to the power of taxation in Congress, +which was sometimes necessary to be exercised in the most potent +manner in order to maintain the government. The state could not, +by an act of incorporation, place their property beyond the power +of Congress. The only question was what rate of taxation ought to +be adopted. The rate proposed--two per cent.--I insisted was not +too high, because it was only one-third of the profit derived from +the issue of paper money without interest, the principal of which +was not paid in coin. I stated distinctly that the purpose of the +bill was not merely to levy a reasonable tax on the banks, but also +to induce them to withdraw their paper, in order to substitute for +it a national currency. I then reviewed in considerable detail +the history of our currency legislation, from the act chartering +the first bank of the United States to the beginning of our Civil +War, showing the view taken by the most eminent statesmen of our +country in favor of the establishment of uniform national currency +as the highest object of legislation. Mr. Madison said in his +message: + +"It is, however, essential to every modification of the finances +that the benefits of a uniform national currency should be restored +to the community. The absence of the precious metals will, it is +believed, be a temporary evil; but, until they can again be rendered +the general medium of exchange, it devolves on the wisdom of Congress +to provide a substitute which shall equally engage the confidence +and accommodate the wants of the citizens throughout the Union." + +I said that when coin, the best of currency, was driven out of +circulation, by the existence of war or extraneous circumstances, +it was the duty of Congress to provide a substitute. In 1816 +Congress did this by establishing the Bank of the United States. +Most of the state banks shortly afterward exploded, and almost +their entire issue outstanding at the time fell as a loss to the +people of the United States. The Bank of the United States did +furnish for a while a stable currency. After its charter expired +in 1836, the controversy was between gold and silver, and paper +money as a currency. Nearly all the statesmen of that time believed +it was necessary to have a national currency in some form, but +there was a part in the country that believed the only true national +currency was gold and silver coin. After a controversy that I +would not review, the sub-treasury system was finally adopted. +The government had then no occasion to borrow money. Its debt was +paid off and there was a large surplus in the treasury, which was +distributed among the states. The agency of a United States bank +was no longer necessary to sustain the public credit. The object +then was to secure a safe deposit and custody of the public revenues. +The state banks failed to furnish a safe redeemable currency. In +1837 their notes were in the hands of the people, depreciated and +dishonored, if not entirely worthless. Therefore, I thought wisely, +the sub-treasury system was adopted, by which gold and silver coin +was the only money received or paid out by the government. I +believed that such was a true policy in the absence of national +banks. I also stated that if peace were restored to our country, +we ought, as soon as possible, to go back to the basis of gold and +silver coin, but, in the meantime, we must meet the exigencies of +the hour. Paper money was then a necessity. Gold and silver were +hoarded. War always had led, and always would lead, to the hoarding +of the precious metals. Gold and silver flee from a state of war. +All nations in the midst of great wars have been compelled to resort +to paper money. It was resorted to by our fathers during the +Revolution. It was only by the use of paper money that England +maintained her wars with Napoleon. At several periods during these +wars gold and silver were at a greater premium in England than they +were in this country. + +I then proceeded to discuss the power of Congress to issue paper +money. I quoted an extract from the report of Mr. Dallas, in +December, 1815, in which he stated: + +"By the constitution of the United States, Congress is expressly +vested with the power to coin money, to regulate the value of +domestic and foreign coin in circulation, and (as a necessary +implication from positive provisions) to emit bills of credit; +while it is declared by the same instrument that 'no state shall +coin money, or emit bills of credit.' The constitutional authority +to emit bills of credit has also been exercised in a qualified and +limited manner. . . . + +"The constitutional and legal foundation of the monetary system of +the United States is thus distinctly seen; and the power of the +federal government to institute and regulate it, whether the +circulating medium consist of coin or of bills of credit, must, in +its general policy, as well as in the terms of its investment, be +deemed an exclusive power." + +These extracts from a document of great ability, state the whole +question in a few words. Congress has the power to regulate +commerce; Congress has the power to borrow money, which involves +the power to emit bills of credit; Congress has the power to regulate +the value of coin. These powers are exclusive. When, by the force +of circumstances beyond our control, the national coin disappears, +either because of war or of other circumstances, Congress alone +must furnish the substitute. No state has the power to interfere +with this exclusive authority in Congress to regulate the national +currency, or, in other words, to provide a substitute for the +national coin. + +I next stated the objections to local banks. The first was the +great number and diversity of bank charters. There were 1,642 +banks in the United States, established by the laws of twenty-eight +different states, and these laws were as diverse, I might say, as +the human countenance. We had the state bank system with its +branches. We had the independent system, sometimes secured by +local bonds, sometimes by state bonds, sometimes by real estate, +sometimes by a mixture of these. We had every diversity of the +bank system in this country that has been devised by the wit of +man, and all these banks had the power to issue paper money. With +this multiplicity of banks, depending upon different organizations, +it was impossible to have a uniform national currency, for its +value was constantly affected by their issues. There was no common +regulator; they were dependent on different systems. The clearing +house system adopted in the city of New York applied only to that +city. There was no check or control over these banks. There was +a want of harmony and concert among them. Whenever a failure +occurred, such as that of the Ohio Life Insurance and Trust Company, +it operated like a panic in a disorganized army; all of the banks +closed their doors at once and suspended specie payments. + +Another objection to these local banks was that of their unequal +distribution among the states. In New England the circulation of +the banks was about $50,000,000, while in Ohio, a state with three- +fourths of the population of all New England, it was but $9,000,000. +The contrast, if made with other states, was still more marked. +I called attention to the fact that the circulation of banks in +the eastern states had then reached about $130,000,000, and of that +amount, $40,000,000 was circulating in the west. If these notes +were driven out of circulation and the United States notes substituted, +a contribution would be made to the treasury of the United States +of $2,400,000 a year, for the mere interest of a currency which +the west did not prefer, but was compelled to use. + +I called attention to the loss to the people by counterfeiting, +which could not be avoided when we had such a multitude of banks. +It then required experts to detect counterfeits. It was impossible +to prevent counterfeiting. An expert could save the banks, but +the loss fell upon the people. By the substitution of national +currency we substantially could lose nothing by counterfeiting. +The notes would be few in kind, only three or four of them, all +issued by the United States, all of a uniform character, that could +not be counterfeited. I described, with some detail, the loss to +the people of the United States by bills of broken banks, computed +them to be equivalent to five per cent. per annum of all the bills +issued. On an average, every twenty years the entire bank circulation +ceased to exist or deteriorated. + +The loss of exchange from the west to the east on local currency +was one per cent. This loss was usually made a gain to themselves +by the bankers and "shavers." Under the most favorable state of +trade between the east and west an exchange of one per cent. was +demanded from drafts and bills of exchange. With a national +currency, uniform and equal throughout the country, this cost for +exchange would not exist or would be greatly reduced. I called +attention to the then increasing volume of local currency in the +United States. When the United States had issued $250,000,000 of +notes, the banks had largely increased their circulation. This +tended to depreciate both United States and bank notes. + +I discussed at similar length the proposition that, as the states +were forbidden by the constitution to authorize the issue of bills +of credit, they were equally forbidden to authorize corporations +to issue circulating notes, which were bills of credit. Upon this +point it seemed to me that the authorities were absolutely conclusive. +That position was taken by the most eminent members of the +constitutional convention, by Joseph Story in his "Commentaries," +by Daniel Webster, and other great leaders of both parties since +that time. It was in reference to these bills that Mr. Webster +used the language often quoted: + +"A disordered currency is one of the greatest of political evils. +It undermines the virtues necessary for the support of the social +system, and encourages propensities destructive of its happiness. +It wars against industry, frugality, and economy; and it fosters +the evil spirits of extravagance and speculation. Of all the +contrivances for cheating the laboring classes of mankind, none +has been more effectual than that which deludes them with paper +money. This is the most effectual of inventions to fertilize the +rich man's field by the sweat of the poor man's brow. Ordinary +tyranny, oppression, excessive taxation, these bear lightly on the +happiness of the mass of the community, compared with a fraudulent +currency, and the robberies committed by depreciated paper." + +In speaking of the bank circulation then afloat in the country, he +further said: + +"It is further to be observed that the states cannot issue bills +of credit; not that they cannot make them a legal tender, but that +they cannot issue them at all. Is not this a clear indication of +the intent of the constitution to restrain the states, as well from +establishing a paper circulation as from interfering with the +metallic circulation? Banks have been created by states with no +capital whatever, their notes being put into circulation simply on +the credit of the state or the state law. What are the issues of +such banks but bills of credit issued by the state? I confess, +Mr. president, that the more I reflect on this subject, the more +clearly does my mind approach the conclusion that the creation of +state banks, for the purpose and with the power of circulating +paper, is not consistent with the grants and prohibitions of the +constitution." + +I insisted that if there was no money in this country but United +States notes, the process of funding would be going on day by day. +Whenever there was too great an accumulation of these notes they +would be converted into bonds; the operation would go on quietly +and silently. I quoted the authority of Secretary Chase that it +was his deliberate judgment, after watching this process with all +his conceded ability, that but for the influence of this local bank +paper he would be able to carry on the war without the issue of +more paper money, that the currency then outstanding and that which +by law he was authorized to issue would be sufficient to carry it +on. Such a currency would lead to the conversion of the notes into +bonds, and by this process the people would absorb the national +loan and enable him to carry on the government without any sacrifice +to them. + +It was not strange that Mr. Jefferson, near the close of the War +of 1812, stated more clearly than I could do the conflict between +local bank paper and United States notes. He, who during his whole +life was so mindful of the rights of the states, and so jealous of +paper money, in brief and terse language designated the only way +in which our country could carry on war. In his letter to Mr. +Cooper, dated September 10, 1814, just at the close of the war, he +said: + +"The banks have discontinued themselves. We are now without any +medium, and necessity, as well as patriotism and confidence, will +make us all eager to receive treasury notes, if founded on specific +taxes. + +"Congress may now borrow of the public, and without interest, all +the money they may want, to the amount of a competent circulation, +by merely issuing their own promissory notes of proper denominations +for the larger purposes of circulation, but not for the small. +Leave that door open for the entrance of metallic money. . . . +Providence seems, indeed, by a special dispensation, to have put +down for us, without a struggle, that very paper enemy which the +interest of our citizens long since required ourselves to put down, +at whatever risk. + +"The work is done. The moment is pregnant with futurity, and if +not seized at once by Congress, I know not on what shoal our bark +is next to be stranded. The state legislatures should be immediately +urged to relinquish the right of establishing banks of discount. +Most of them will comply, on patriotic principles, under the +convictions of the moment, and the non-complying may be crowded +into concurrence by legitimate devices." + +I also quoted another extract to show that this matter filled the +mind of Mr. Jefferson. He said: + +"Put down the banks, and if this country could not be carried +through the longest war, against her most powerful enemy, without +ever knowing the want of a dollar, without dependence on the +traitorous classes of her citizens, without bearing hard on the +resources of the people, or loading the public with an indefinite +burthen of debt, I know nothing of my countrymen. Not by any novel +project, not by any charlatanry, but by ordinary and well-experienced +means; by the total prohibition of all paper at all times, by +reasonable taxes in war, aided by the necessary emissions of public +paper of circulating size, this bottomed on special taxes, redeemable +annually as this special tax comes in, and finally within a moderate +period--even with the flood of private paper by which we were +deluged--would the treasury have ventured its credit in bills of +circulating size, as of five or ten dollars, etc., they would have +been greedily received by the people in preference to bank paper." + +On the 26th of January, 1863, I introduced in the Senate a bill to +"provide a national currency, secured by a pledge of United States +stocks, and for the circulation and redemption thereof." This bill +took the usual course, was referred to the committee on finance, +was reported favorably with a number of amendments, and was fully +debated in the Senate. On the 9th of February, 1863, a cursory +debate occurred between Mr. Collamer, of Vermont, and myself, which +indicated a very strong opposition to the passage of the banking +bill. Various amendments were proposed and some adopted. I became +satisfied that if a strong effort was not made the bill would either +be defeated or postponed. I then, without preparation, made a +long, and as I think, a comprehensive, speech covering the general +subject and its principal details. It was the only speech of +considerable length that was made in favor of the bill in the +Senate. There seemed to be a hesitancy in passing a measure so +radical in its character and so destructive to the existing system +of state banks. + +I said the importance of the subject under consideration demanded +a fuller statement than had as yet been made of the principle and +object of the bill. It was the misfortune of war that we were +compelled to act upon matters of grave importance without that +mature deliberation that would be secured in peaceful times. The +measure affected the property of every citizen of the United States, +and yet our action for good or evil must be concluded within a few +days or weeks of that session. We were to choose between a permanent +system designed to establish a uniform national currency based on +the public credit, limited in amount, and guarded by all the +restraints which the experience of men had proved necessary, and +a system of paper money without limit as to amount, except for the +growing necessities of war. + +I narrated the history of the bill, of its introduction in December, +1861, its urgent recommendation by the Secretary of the Treasury +in two annual reports, and the conditions that then demanded +immediate action upon it. I stated the then financial condition +of the country. Gold was at a premium of between fifty and sixty +per cent. and was substantially banished from circulation. We were +in the midst of war, when the necessities of the government required +us to have large sums of money. We could not choose as to the mode +in which we should get that money. If we pursued the ordinary +course, the course that had been sufficient in times of peace to +raise money, of putting our bonds into the market and selling them +for what they would bring, it would be at a great sacrifice. We +knew this from the history of other nations and from our own +experience. We therefore must look for some system of finance that +would give us all the aid possible, either in the form of paper +money or by the agencies of associated banks. We knew very well +that after the war was over the government would still be largely +in need of money. + +I then reviewed the various financial measures since the commencement +of the war. We were then in the peculiar condition of a nation +involved in a war without any currency whatever which by law could +be used in the ordinary transactions of public business. Gold was +withdrawn by the suspension of specie payments. The money of the +banks could not be used because the laws of the United States +forbade it, and we were without any currency whatever. Under these +circumstances, Congress had authorized the issue of $400,000,000 +of United States notes. That this measure was wise but few would +controvert. We were compelled, by a necessity as urgent as could +be imposed upon any legislature, to issue these notes. To the +extent to which they were issued they were useful; they were a loan +by the public and without interest; they were eagerly sought by +our people; they were taken by our enemies in the south, by our +friends in the north; they were taken in the east and the west. +They furnished the best substitute for gold and silver that could +then be devised, and if we could limit United States notes to the +amount then authorized by law they would form a suitable and valuable +currency. + +We had but four expedients from which to choose. First, to repeal +the sub-treasury act and use the paper of local banks as a currency; +second, to increase largely the issue of United States notes; third, +to organize a system of national banking, and fourth, to sell the +bonds of the United States in the open market. I discussed each +of these expedients in considerable detail. The practical objection +to the further issue of United States notes was that there was no +mode of redemption; they were safe; they were of uniform value, +but there was no mode pointed out by which they were to be redeemed. +No one was bound to redeem them. They were receivable but not +convertible. They were debts of the United States but could not +be presented anywhere for redemption. No man could present them +except for the purpose fo funding them into the bonds of the United +States. They were not convertible into coin. They lacked that +essential element in currency. + +Another objection was that they were made the basis of state bank +issues. Under the operation of the act declaring United States +notes to be a legal tender, the state bank circulation had increased +from $120,000,000 to $167,000,000. The banks sold their gold at +a large premium, and placed in their vaults United States notes +with which to redeem their own notes. While the government had +been issuing its paper money some of the banks were inflating the +currency, by issuing paper money on the basis of United States +money. Illustrations of this inflation were given of existing +banks, showing enormous issues based upon a comparatively small +amount of legal tender notes. The issue of United States notes by +the government, and the making them a legal tender, was made the +basis of an inflated bank circulation in the country, and there +was no way to check this except by uniting the interest of the +government, the banks, and the people, together, by one uniform +common system. + +I said that during war local banks were the natural enemies of a +national currency. They were in the War of 1812. Whenever specie +payment was suspended, the power to issue a bank note was the same +as the power to coin money. The power granted to the Bank of France +and the Bank of England to issue circulating notes was greatly +abused during the period of war. It was a power that ought never +to be exercised except by the government, and only when the state +was in danger. It was the power to coin money, because when a bank +issued its bill without the restraint of specie payments, it +substantially coined money and false money. This was a privilege +that no nation could safely surrender to individuals or banks. +Upon this point I cited a number of authorities, not only in our +own country, but in Europe. While I believed that no system of +paper money should depend upon banks, I was far from objecting to +their agency. They were useful and necessary mediums of exchange, +indispensable in all commercial countries. The only power they +derived from corporation not granted to all citizens was to issue +notes as money, and this power was not necessary to their business +or essential to their profit. Their business connected them with +the currency, and whether it should be gold or paper they were +deeply interested in its credit and value. Was it not then possible +to preserve to the government the exclusive right to issue paper +money, and yet not injuriously affect the local banks? This was +the object of that bill. + +But, it was asked, why look at all to the interest of the banks, +why not directly issue the notes of the government, and thus save +to the people the interest on the debt represented by the notes in +circulation? The only answer to this was that history taught us +that the public faith of a nation alone is not sufficient to maintain +a paper currency. There must be a combination between the interests +of private individuals and the government. Our revolutionary +currency, continental money, depreciated until it became worthless. +The assignats of France, issued during her revolutionary period, +shared the same fate. Other European countries which relied upon +government money alone had a similar experience. An excessive +issue of paper money by the government would produce bankruptcy +and repudiation, not only of the notes abroad, but of bonds also. +The government of the United States had in circulation nearly +$400,000,000 United States notes. We had a bank circulation of +$160,000,000. If we increased our circulation, as was then proposed, +it would create an inflation that would evidently lead to the +derangement of all business affairs in the country. Whatever might +be the hazards, we had to check this over expansion and over issue. +If a further issue of United States notes were authorized, it would +be at once followed by the issue of more bank paper, and then we +would have the wildest speculation. Hitherto the inflation had +not extended to many articles. Real estate had not been much +affected by it. + +The question then occurred whether the bank bill proposed by the +Secretary of the Treasury, and introduced by me into the Senate, +would tend to secure a national currency beyond the danger of +inflation. This, the principal question involved, was discussed +at length. I contended that the notes issued would be convertible +into United States notes while the war lasted, and afterwards into +coin; that the currency would be uniform, of universal credit in +every part of the United States, while the bank bills, which it +would supersede, were current only in the states in which they were +issued. It would furnish a market for our bonds by requiring them +to be held as the security for bank notes, and thus advance the +value of the bonds. The state bank bills would be withdrawn, and +the state banks would be converted into national banks with severe +restrictions as to the amount of notes issued, and these only issued +to them by the general government upon ample security. The similarity +of notes all over the United States would give them a wider +circulation. I insisted that the passage of the bill would promote +a sentiment of nationality. + +The policy of this country ought to be to make everything national +as far as possible. If we were dependent on the United States for +a currency and a medium of exchange, we would have a broader and +more prosperous nationality. The want of such nationality, I then +declared, was one of the great evils of the times; and it was that +principle of state rights, that bad sentiment that had elevated +state authority above the great national authority, that had been +the main instrument by which our government was sought to be +overthrown. Another important advantage the banks would derive +from this system, I urged, would be that their notes would be +guarded against all frauds and all alterations. There would be +but five or six kinds of notes in the United States, instead of +the great diversity there was then. In 1862 the number of banks +existing was 1,500, and the number whose notes were not counterfeited +was 253. The number of kinds of "imitations" was 1,861. The number +of kinds of "alterations" was 3,039. The number of kinds of +"spurious" was 1,685. This was the kind of currency that was +proposed to be superseded. Under the new system, the banks would +be relieved from all this difficulty. + +Other advantages to the banks would be that they might become +depositaries of the public money, that their notes, being amply +secured, would be received in all payments due to or from the United +States, while the notes of state banks could not be so received, +as they were dishonored and disgraced from the beginning, being +refused by the national government. + +This is an imperfect view of the question as it was then presented +to my mind. I knew the vote upon the passage of the bill would be +doubtful. The New England Senators, as a rule, voted for the bill, +but Senators Collamer and Foote had taken decided grounds against +it, and it was believed that Mr. Anthony and his colleague would +do likewise. I informed Secretary Chase of my doubt as to the +passage of the bill, and especially whether Mr. Anthony would vote +for it; without his vote I did not think it would pass. Mr. Chase +called at the Senate and had an interview with Mr. Anthony, in my +presence, in which he urged him strongly, on national grounds, to +vote for the bill, without regard to local interests in his own +state. His remarks made an impression upon Mr. Anthony who finally +exclaimed that he believed it to be his duty to vote for the bill, +although it would be the end of his political career. When the +vote was taken his name was the first recorded in favor of the +bill. It passed by a vote of 23 yeas and 21 nays, so that I was +entirely correct that if he had voted against the bill it would +have been defeated by a tie vote. + +These two measures, the absorption of the state banks, and the +establishment of the system of national banks, taken in connection +with the legal tender act, were the most important financial measures +of the war, and, tested by time, have fully realized the anticipations +and confident assurance of their authors. + +This system of national banks has furnished to the people of the +United States a currency combining the national faith with the +private stock and private credit of individuals. They have a +currency that is safe, uniform, and convertible. Not one dollar +of the notes issued by national banks has been lost to any person +through the failure of a bank. We have a currency limited in +amount, restrained and governed by law, checked by the power of +visitation and by the limitation of liabilities, safe, uniform, +and convertible in every part of the country. Every one of these +conditions prophesied by me has been literally realized. + +Next in importance to a national currency was the problem of the +public debt. The issue of $50,000,000, demand notes, authorized +in 1861, was a forced expedient to meet immediate demands. A +prudent man, engaged in business, would not borrow money payable +on call unless he had securities which he could immediately convert +into money. Such liabilities are proper in a stock exchange or in +a gambling operation, to be settled by the receipt or payment of +balances on the rise or fall in the market of stocks or produce. +These demand notes gave Secretary Chase more trouble than any other +security, and they were finally absorbed in the payment of customs +duties. + +On the 17th of July, 1861, Congress authorized the Secretary of +the Treasury to borrow, on the credit of the United States, within +twelve months, $250,000,000, for which he was authorized to issue +bonds, coupon or registered, or treasury notes, the bonds to bear +interest not exceeding seven per cent., payable semi-annually, +irredeemable for twenty years. The treasury notes were to be of +any denominations fixed by the Secretary of the Treasury, not less +than fifty dollars, and to be payable three years after date, with +interest at the rate of seven and three-tenths per cent. per annum, +payable semi-annually. He was also authorized to issue, in exchange +for coin, as a part of the loan of $250,000,000, treasury notes +payable on demand, already referred to, or treasury notes bearing +interest at the rate of three and sixty-five hundredths per cent. +per annum, and payable in one year from date and exchangeable at +any time for treasury notes of fifty dollars and upwards. These +forms of security were the most burdensome that were issued by the +government during the war. The terms of these securities were +somewhat altered by the act approved August 5, 1861. + +These laws were superseded by the act of February 28, 1862, which +may be regarded as the most important loan law passed during the +war. It authorized the Secretary of the Treasury to issue, on the +credit of the United States, $150,000,000 of United States notes, +commonly called greenbacks, already described. Of these, $50,000,000 +were to be in lieu of the demand treasury notes authorized to be +issued by the act of July, 1861, above referred to. It also +authorized the Secretary of the Treasury to issue $500,000,000 of +coupon, or registered, bonds, redeemable at the pleasure of the +United States after five years, and payable twenty years from date, +bearing interest at the rate of six per cent. per annum, payable +semi-annually. These are what were known as the 5-20 bonds. In +reference to these securities, Secretary Chase, in his report of +December 4, 1862, said: + +"These measures have worked well. Their results more than fulfilled +the anticipations of the secretary. The rapid sale of the bonds, +aided by the issue of United States notes, furnished the means +necessary for the conduct of the war during that year." + +On the 3rd of March, 1863, the Secretary of the Treasury was +authorized to borrow, from time to time, on the credit of the United +States, a sum not exceeding $300,000,000 for the current fiscal +year, and $600,000,000 for the next fiscal year, payable in coin, +at the pleasure of the government, after such periods as may be +fixed by the secretary, not less than ten, or more than forty, +years from date. These bonds, known as the 10-40's, bearing five +per cent. interest, were exempt from taxation by or under state or +municipal authority. This act also provided for the issue of a +large increase of non-interest bearing treasury notes, which were +made lawful money and a legal tender in payment of all debts, public +or private, within the United States, except for duties on imported +goods and interest on the public debt. Additional 10-40 bonds were +authorized by the act of June 30, 1864. But it may be said that +the 5-20 and 10-40 bonds became the well-known, recognized securities +of the United States, the sale of which at par, in connection with +the treasury notes of different forms, furnished the United States +the money to carry on the war. In the sale of these securities +the secretary was actively assisted by the banks and bankers of +the United States, and especially by Jay Cooke, who was the most +effective agent of the government in the sale of 5-20 bonds. + +Secretary Chase, in his report of December 10, 1863, discussed at +length the objects to be kept studiously in view in the creation +of debt by negotiations of loans or otherwise: First, moderate +interest; second, general distribution; third, future controllability; +and, fourth, incidental utility. + +The first loans were made upon the extravagant rate of interest of +seven and three-tenths per cent. The reason for this was the fact +that there was no currency the secretary could receive in exchange +for bonds. As already stated, specie payments were suspended by +the banks December 31, 1861. He was forbidden by law to receive +bank bills, and he knew that Congress would not and ought not to +repeal this law. After such suspension coin was scarce and difficult +to obtain. Afterwards, when the legal tender notes were authorized +and issued, he sold his bonds bearing six per cent. interest at +par for notes, but these notes had already largely depreciated +compared with coin. Still, they were money, readily taken for all +supplies, and enabled him to sell securities running a shorter +period. A diversity of securities maturing at different times were +exchanged for notes, and finally he was able to sell five per cent. +bonds at par, so that, on the 30th of September, 1863, two months +previous to his report, securities and notes then outstanding +amounted to $1,222,113,559. The fist bonds were irredeemable for +twenty years. The second bonds were redeemable in five, but payable +in twenty, years. The third bonds, bearing five per cent. interest, +were redeemable after ten years. It will be perceived that under +this arrangement the rate of interest on securities issued was +constantly reduced. The notes received in payment of bonds +depreciated or advanced in sympathy with the progress of our armies +and the prospects of success. The general purpose was to secure +as low a rate of interest as possible, to distribute the securities +among the largest number of persons possible, to provide the best +mode, time and terms for redemption, and to put the securities in +such form as to be used as a currency. No one can question the +wisdom of the management of the public debt by Secretary Chase. + +The origin and development of the present system of internal taxes +must be interesting to every student of finance. The policy of +the government had been to confine, as far as possible, national +taxes to duties on imports, and, in ordinary times, this source of +revenue, exclusively vested in the United States, together with +the proceeds of the sale of public lands, was ample to defray the +current expenses of the government. During and shortly after the +War of 1812 resort was had to direct taxes apportioned among the +states respectively, and to internal taxes authorized by the +constitution under the name of excises, but the necessities of the +treasury becoming more urgent, and the reliance on the public credit +becoming more hazardous, Congress, at the special session which +convened in May, 1813, determined to lay the foundations of a system +of internal revenue, selecting in particular those subjects of +taxation which would be least burdensome. These taxes were at +first limited to one year, but were extended from time to time, so +that they acquired the name of "war taxes." A direct tax of +$3,500,000 was laid upon the United States, and apportioned among +the states respectively for the year 1814. Taxes were imposed on +sugar refined in the United States, on carriages, on licenses to +distillers of spirituous liquors, and other forms of internal +production. It was estimated that the internal taxes and the direct +tax would yield $3,500,000. For the fiscal year ending June 30, +1815, internal taxes yielded $5,963,000. In 1816 they yielded +$4,396,000. In 1817 they yielded $2,676,000, after which there +was no revenue from internal taxes except from the collection of +arrears, amounting in 1818 to $947,946, the law providing for such +taxes having expired by limitation. A comparison between the +receipts from this source then and the receipts subsequently derived +from internal revenue, is a significant indication of the difference +in population and wealth between 1812 and 1862. + +When the Civil War commenced and the necessity of a large increase +of revenue became apparent, Secretary Chase, in his report to +Congress of the date of July 4, 1861, called attention to the +necessity of provision for a gradual increase in the revenue to +maintain the public credit, and to meet the current demands. His +recommendation as to internal taxes has already been referred to. +The act of August 5, 1861, previously mentioned, levied a direct +tax of $20,000,000 and an income tax. This act proved to be a +crude and imperfect measure, and it was modified or superseded by +the act of July 1, 1862. This act, carefully framed, was the basis +of the present system of internal revenue. It created a new office +in the treasury department, to be called the office of commissioner +of internal revenue. No less than thirteen acts of Congress were +passed prior to August 1, 1866, enlarging and defining the duties +of the office, and prescribing the taxes imposed by these several +laws. When this act was first framed we anticipated much greater +difficulties in the collection of the tax than actually occurred. +We had doubts whether the taxation imposed by this law would be +patiently submitted to by our constituents, but these misgivings +soon disappeared and the taxes imposed by that act were cheerfully +and promptly paid. I gave to the study and consideration of this +act, and the various amendatory acts, a large portion of my time. +At the end of the war internal taxes were cheerfully paid by the +people, and yielded far more revenue to the government than the +customs duties and all other sources of revenue combined. + +The receipts from internal revenue for the first four years under +this law were as follows; + + For the year ending June 30, 1863 . . . . $37,640,787 + For the year ending June 30, 1864 . . . . 117,145,748 + For the year ending June 30, 1865 . . . . 211,129,529 + For the year ending June 30, 1866 . . . . 310,906,984 + +These taxes were mainly upon spirits, tobacco and beer, but they +also included stamp taxes of various kinds, special taxes on +particular industries, and income taxes, so that practically nearly +all forms of domestic manufactures were subject to a greater or +less tax, according to the nature of the article. So sweeping were +the provisions that it was frequently a matter of joke as well as +comment. + +Some one remarked to Senator Collamer that everything was taxed +except coffins. He rejoined: "Don't say that to Sherman or he +will have them on the tax list before night!" + +The general prosperity that existed during the war under such a +burden of taxation was frequently a matter of surprise. The truth +is that all productive industries were active because of the enormous +demand made by the army for supplies of all kinds, and everyone +who was willing to work could find plenty of employment. The +depreciation of the currency caused by the war did not embarrass +anyone, as the interest on securities was promptly paid in coin, +and greenbacks were the favorite currency of the people. The people +did not stop to inquire the causes of the nominal advance in prices; +they only knew that the United States note was cheerfully received +in every part of the United States as the current money of the +country. At the beginning the tax on whisky was 20 cents per +gallon, but it was gradually increased until it reached $2 a gallon, +when frauds and illicit distilling became serious evils. The tax +was then reduced to 90 cents a gallon. + +When I became Secretary of the Treasury, I was impressed with the +magnitude of illicit distilling, even after the rate was reduced. +At that time several hundred men, mostly in the mountain regions +of North Carolina and Tennessee, were under arrest for violation +of the laws against illicit distilling. A delegation of them, +accompanied by Senator Ransom, appeared before me, and I heard +their apologies for distilling, and their complaints against the +officers. We entered into a formal engagement by which they agreed +to stop illicit distilling upon condition that they should be +relieved of punishment for their past acts, and, so far as I could +learn, they substantially observed their obligation. As a rule, +they were rough mountaineers who regarded whisky as a prime necessity +of life, and thought they ought to be allowed to convert their +grain into something better. + +As the necessity for excessive taxation diminished after the war +was over, taxes on various articles were gradually repealed, until, +in 1894, they consisted of practically four items, spirits, tobacco, +fermented liquors, and oleomargarine. These are the figures for +two years: + + Receipts during fiscal years + Objects of Taxation. ended June 30-- + 1893. 1894. + Spirits . . . . . . $94,720,260.55 $85,259,252.25 + Tobacco . . . . . . 31,889,711.74 28,617,898.62 + Fermented Liquors . 32,548,983.07 31,414,788.04 + Oleomargarine . . . 1,670,643.50 1,723,479.90 + +In respect to these taxes, that on oleomargarine was not intended +as, nor is it, a very material revenue tax. The purpose was +especially to prevent the fraudulent imitation of butter by using +an extract of beef. The tax on spirits, tobacco and beer ought to +be retained as the best objects of taxation either of domestic or +imported goods. Neither of these is an article of necessity, but +all are used purely to gratify an appetite, in many cases indulged +to excess. + +All civilized nations have come to regard these articles as the +best subjects of taxation. To the extent that whisky is used as +a beverage it is hurtful in its influence upon the individual and +upon society at large. It is the cause of innumerable crimes, of +poverty and distress in the family and home. Still, it is an +appetite that will be gratified, however severe may be the laws +against its use, and while this habit exists the tax upon whisky, +by limiting the quantity consumed, is beneficial to society at +large. It is true that alcohol, the base of whisky, is useful in +the arts and in the preparation of medicines and vinegar. If some +feasible plan could be prescribed by which alcohol or spirits thus +used could be freed from tax, it would be right to exempt it, but +no such plan has been found that includes security against frauds +being practiced to evade the tax on whisky. The tax on tobacco +and cigars is a moderate one, but the consumption of them is far +less dangerous than that of spirits in their influence upon society. +The tax on the cheaper form of tobacco and cigars is comparatively +small and does not add materially to the cost of tobacco in any of +its forms. No complaint is made of it. Its consumption is so +general that the tax is fairly distributed and falls mainly on the +richer classes, as the tax is increased in proportion to the value +of the tobacco. Beer, a beverage of almost universal use, yields +the large sum of $30,000,000 a year, at the rate of one dollar a +barrel. This does not cause a perceptible increase of the cost to +the consumer, but rather tends to maintain the good quality of beer +by the surveillance of the officers of internal revenue. No general +complaint has been made of this tax. All internal taxes are +collected at less cost than any other form of taxation devised, +and should be maintained as long as the expenses growing out of +the war shall remain unpaid. + +The patience and even cheerfulness with which the people of the +United States submitted to this severe taxation on their domestic +productions, was a matter of surprise, not only among our own +people, but in European countries. In 1867, accompanied by Mr. +Adams, our minister to England, I had the pleasure of breakfasting +with Mr. Gladstone at his official residence, and he referred to +the ease with which we collected, without complaint, taxes so +burdensome as ours then were. He asked me if it was true that we +had collected $1,600,000 annually from a tax on matches. I told +him that we not only did so but that I had never heard a word of +complaint, and the quality of matches was vastly improved while +their price was actually reduced. He threw up his hands and said +that the people of England would not submit to such tax and if any +ministry would propose it, it would soon be out of power. Strange +to say an administration of which Mr. Gladstone was at the head +did subsequently propose such a tax, but it was so severely arraigned +that it was at once abandoned. + +The income tax, varied somewhat in terms from year to year, continued +in force until 1870, when it was proposed to repeal it as no longer +necessary. By the terms of the then existing law it expired in +1872. I urged as strongly as I could its retention at least until +the time expired, but it was repealed. I then believed, and now +believe, that a moderate income tax, levied on all incomes above +the sum of $1,000, or above a sum that will supply the ordinary +wants of an average family in the United States with the necessaries +of life, should be levied, according to the exigencies of the public +service. In the present condition of affairs, I doubt the expediency +of such a tax, especially in view of the decision of the Supreme +Court of the United States recently rendered. + +The distinction made by that court between incomes from the rent +of land and other incomes seems narrow and technical. A tax upon +the value of land is a direct tax, and must be apportioned among +the states according to population, but it does not follow that a +tax on incomes from land is a direct tax. An income means that +gain which results from business, or property, of any kind, from +the proceeds of a farm, the profits derived from trade and commerce, +and from any occupation or investment. In common language the word +income applies to money received from any source. It may be +qualified as gross income and net income. It may be limited by +words defining the source of the income, as, from land, merchandise +or banking, but, in its general sense, it means gross savings from +all sources. When received in money it is an income and not until +then. An income tax was paid, and cheerfully paid, by American +citizens during and since the war, in vast sums, and it did not +occur to citizen, lawyer or judge that the constitution of the +United States made a distinction between incomes from rents and +income from notes or bonds. The states tax both land and bonds. +Why may not the United States tax income from each alike? Many of +the largest incomes in the United States are derived from rents. +To except them by technical reasoning from a general tax on incomes +will tend to disparage the Supreme Court among "plain people." If +incomes from rents must be excepted, then no income tax ought to +be assessed. This decision, if adhered to, may cripple the government +in times of emergency. If made when the income tax was first +imposed, it would have reduced the national revenue $347,000,000, +for no income tax would have been enacted if rents were excluded +from taxable incomes. + +I do not propose to narrate the numerous internal revenue laws, +which have been enacted and modified at every session of Congress +since 1861, or the innumerable objects of taxation embraced in +them, for such a narrative would fill too much space. The discussion +of these laws occupied a large portion of the time of Congress. +The articles or productions subject to taxation included for a time +nearly everything for the use of man. I trust the time is far +distant when such sweeping internal taxation will be required again, +but if it should come, the Congress of that day can find in our +experience resources more bountiful than Aladdin's lamp. + +Direct taxes, to be apportioned among the states, are not likely +to be again assessed after the experience we had as to the last +direct tax. Besides the difficulty of collecting it, there is the +palpable objection that it is an unequal, and therefore an unjust, +tax. New states, and especially agricultural states, have not the +same ability to pay direct taxes as older commercial and manufacturing +states, having within them great cities with accumulated wealth, +in the form of stocks, bonds and patents. + +The office of commissioner of internal revenue has fortunately been +filled, as a rule, by gentlemen of standing and character of a high +order of intelligence, and their work has been of great service to +the United States. This important bureau ought to be, and no doubt +will be, retained as a part of the organized machinery of the +government, and the taxes collected by it will be necessary as long +as our public debt remains, and until the list of pensioners will +be obliterated by the hand of time. + + +CHAPTER XIV. +LINCOLN'S EMANCIPATION PROCLAMATION. +Slavery in the District of Columbia Abolished--Law Goes Into Effect +on April 10, 1862--Beginning of the End of Slavery--Military Measures +in Congress to Carry on the War--Response to the President's Call +--Beneficial Effects of the Confiscation Act--Visits to Soldiers' +Camps--Robert S. Granger as a Cook--How I Came to Purchase a +Washington Residence--Increase of Compensation to Senators and +Members and Its Effect--Excitement in Ohio over Vallandigham's +Arrest--News of the Fall of Vicksburg and Defeat of Lee at Gettysburg +--John Brough Elected Governor of Ohio--Its Effect on the State. + +Another question of grave political significance was presented to +the 37th Congress early in this session, that of the abolition of +slavery in the District of Columbia. I had from the beginning +declared my opposition to any interference with slavery in the +District, but the changed condition of the country demanded a change +of public policy in this respect. Slavery was made the pretext +for, and, I believe, was, the real cause of the war. It had a +foothold in the District of Columbia, but it existed there in its +mildest form. By the census of 1860 there were, in the District +of Columbia, 11,107 free negroes, 3,181 slaves, and 60,785 white +people. It was considered the paradise of free negroes, where they +were almost exclusively employed as laborers in household service. + +When the war broke out a considerable number of slaves ran away +from disloyal masters in Virginia and Maryland, seeking safety +within our lines and finding employment in the District of Columbia. +As the war approached, most of the slaves in the District were +carried away by their owners into Virginia, and other southern +states, so that in 1862 it was estimated there were not more than +1,500, and probably not 1,000, slaves in the District, while the +number of free negroes increased to 15,000. As a matter of course, +when Virginia seceded no attempt was made to recapture runaway +slaves from that state, and they became practically free. It was +known that there was at that time a strong disposition in Maryland +to try the experiment of emancipation, and it was believed that +after the war was over Virginia would adopt the same policy. Little +doubt was felt as to the power of Congress to abolish slavery in +the District, should such a course be deemed expedient. By the +constitution Congress was invested with express "power to exercise +exclusive legislation, in all cases whatsoever, over such district +as may, by cession of particular states, and the acceptance of +Congress, become the seat of government of the United States." +This power had been recognized by the most eminent statesmen of +our country, and also by the Supreme Court of the United States. +Until Mr. Calhoun doubted or denied the power it was not questioned +by any considerable number. The real question was whether that +was the time for emancipation. I endeavored to give to the subject +careful consideration, and came to the conclusion that it was +expedient then to emancipate the very few slaves in the District, +fewer than there had been at any time within forty years, and fewer +than would likely be in case the war should end. I believed also +that the social influence of Washington, and the wealth and property +controlled and owned in a great measure by slaveholding residents +there, had been always against the government of the United States +and in favor of the Rebellion. While slavery existed it was a +constant source of annoyance and irritation. The great mass of +our constituents were opposed to slavery, morally, socially and +politically. They felt it was wrong and would not change their +opinion. As long as slavery existed in the District, where Congress +had the power to abolish it, agitation and excitement would be +ceaseless. The great body of the people of the northern states +were opposed to the institution theoretically, as were very many +of the most intelligent people of the southern states. I felt that +now was the time when this moral conviction should be heard and +heeded by the national legislature. I felt that we were bound to +consult the material interest of the people of the District, and +that emancipation would add to the value of their property and also +add to the population of the city. The abolition of slavery would +bring to the city intelligent mechanics and laboring men who would +never compete with the labor of slaves, and who, finding none there +but freemen, would develop the great advantages of the city. In +a speech I made upon the subject I enlarged upon this consideration +and said: + +"I see no reason why Washington, with a free population and as a +free city, situated here at the head of the Potomac, with remarkable +facilities of navigation, with great conveniences of communication, +reaching to the west by the Baltimore and Ohio Railroad, the +political capital of the country, might not be a great free city, +illustrating by its progress the operation of free institutions. +But it can only be done by the active, interested labor of free +people. Simply as a municipal regulation it would be wise to +abolish slavery in this district, because slavery is opposed to +the moral convictions of the great mass of the people of this +country, and the existence of slavery here keeps out of this District +an active, loyal, true, manly, generous body of laborers, who will +never compete in their labor with the labor of slaves." + +There was another reason why the experiment of emancipation could +be best tried in the District of Columbia. Emancipation was +evidently the ultimate end of this question. We had the power to +try the experiment. It would be an example likely to be followed +at the close of the war by many of the border states. I therefore +made up my mind in favor of the measure, made a long speech for +the bill and voted for it. It became a law on April 10, 1862. + +At that early day, I believed that it was the duty of Congress to +confiscate the slaves in the seceding states as the natural result +of the war. These states had placed themselves in a position by +rebellion where they had no constitutional rights which we were +bound to observe. The war being open and flagrant to break up the +Union, they were not entitled to the benefit of any stipulation +made in their favor as states in the Union. I also favored the +granting of aid to any policy of emancipation that might be adopted +in the border states of Maryland, Kentucky and Missouri, but Congress +was indisposed to extend the provisions of the then pending measure +beyond the District of Columbia. + +The President of the United States, on September 22, 1862, issued +his proclamation containing the following declaration: + +"That on the first day of January, in the year of our Lord one +thousand eight hundred and sixty-three, all persons held as slaves +within any state of designated part of a state, the people whereof +shall be in rebellion against the United States, shall be then, +thenceforward, and forever, free; and the executive government of +the United States, including the military and naval authority +thereof, will recognize and maintain the freedom of such persons, +and will do no act or acts to repress such persons, or any of them, +in any efforts they may make for their actual freedom." + +This was carried out in a subsequent proclamation of January 1, +1863, in which the President declared: + +"And by virtue of the power and for the purpose aforesaid, I do +order and declare that all persons held as slaves, within said +designated states and parts of states, are, and henceforward shall +be, free; and that the executive government of the United States, +including the military and naval authorities thereof, will recognize +and maintain the freedom of said persons." + +This was the beginning of the end of slavery. + +In following the important financial measures of the 37th Congress, +I have purposely passed by, in their order of time, other measures +of vital interest that were acted upon in that Congress. The +military measures adopted were on the same grand scale as the +financial measures I have referred to. In 1861 the United States +contained a population of 32,000,000 people, of whom about 10,000,000 +were in the seceding states, some of whom were opposed to secession, +but a greater number living in states that did not secede were in +hearty sympathy with the rebellion. No preparation for war had +been made in any of the loyal states, while in the disloyal states +preparations had been made by the distribution of arms through the +treachery of Secretary Floyd. When the seceding states organized +a confederate government, the executive branch of the general +government was under the management and control of those who favored +the rebellion, or were so feeble or indifferent that they offered +no resistance whatever to such organization. The President of the +United States declared, in an executive message, that the general +government had no power to coerce a state. On the accession of +President Lincoln, the confederate government was better organized +for resistance than the Union was for coercion. When war actually +commenced, the capital at Washington was practically blockaded, +and in the power of the Confederates. + +The response of the loyal states to the call of Lincoln was perhaps +the most remarkable uprising of a great people in the history of +mankind. Within a few days the road to Washington was opened, but +the men who answered the call were not soldiers, but citizens, +badly armed, and without drill or discipline. The history of their +rapid conversion into real soldiers, and of the measures adopted +by Congress to organize, arm and equip them, does not fall within +my province. The battles fought, the victories won, and the defeats +suffered, have been recorded in the hundred or more volumes of "The +Records of the Rebellion," published by the United States. The +principal events of the war have been told in the history of Abraham +Lincoln by Nicolay and Hay, and perhaps more graphically by General +Grant, General Sherman, General Sheridan, Alexander H. Stephens, +Fitz Hugh Lee, and many others who actively participated in the +war, and told what they saw and knew of it. + +The military committees of the two Houses, under the advice of +accomplished officers, formulated the laws passed by Congress for +the enlistment, equipment and organization of the Union armies. +Henry Wilson, of Massachusetts, was chairman of the committee on +military affairs of the Senate, and he is entitled to much of the +praise due for the numerous laws required to fit the Union citizen +soldiers for military duty. His position was a difficult one, but +he filled it with hearty sympathy for the Union soldiers, and with +a just regard for both officers and men. + +Among the numerous bills relating to the war, that which became +the act to suppress insurrection, to punish treason and rebellion, +and to seize and confiscate the property of rebels, excited the +greatest interest, giving rise to a long debate. It was founded +on the faulty idea that a territorial war, existing between two +distinct parts of the country, could be treated as an insurrection. +The law of nations treats such a war as a contest between two +separate powers, to be governed by the laws of war. Confiscation +in such a war is not a measure to be applied to individuals in a +revolting section, but if the revolt is subdued, the property of +revolting citizens is subject to the will of the conqueror and to +the law of conquest. The apparent object of the law referred to +was to cripple the power of the Confederate States, by emancipating +slaves held in them, whenever such states fell within the power of +the federal army. This object was accomplished in a better and +more comprehensive way by the proclamation of the President. The +confiscation act had but little influence upon the result of the +war, except that it gathered at the wake of our armies in the south +a multitude of negroes called "contrabands," who willingly performed +manual labor, but were often an incumbrance and had to be fed and +protected. + +The freedom of these "contrabands" was the result of the war, and +not of the confiscation act. In the later period of the war, they, +in common with the free negroes from the north, were organized into +regiments commanded by white men, and rendered valuable service to +the Union cause. + +When the confiscation bill was pending, on the 23rd of April, 1862, +I made a speech in support of an amendment offered by me and in +substance adopted. A few extracts of my speech will show my opinions +on this subject: + +"Confiscation is not only justified by the laws of war, by the +practice of many nations, but it is practiced by our enemies in +the most obnoxious way. They seize all kinds of property of loyal +citizens; they destroy contracts; confiscate debts. All the property +of citizens of loyal states which is within a disloyal state is +seized without exception, and that whether such citizen has aided +the government or not. They also seize the property of all citizens +in disloyal states who will not commit an act of treason by aiding +them. Yet they profess to be governed by a constitution similar +to the constitution of the United States, so far as it relates to +the rights of person and property. They draw the distinction +between the laws of war and the laws of peace. . . . + +"Sir, it is time there was an end of this. We are at war. We must +destroy our enemies or they will destroy us. We must subdue their +armies and we must confiscate their property. The only question +with me is as to the best measure of confiscation. That some one +should be enacted, and that speedily, is not only my conviction of +duty, but it will be demanded by those who will have to bear the +burdens of the war. Now, it is the interest of every citizen in +a seceding state to be a rebel. If a patriot, his property is +destroyed. If a rebel, his property is protected alike by friend +and foe. Now, the burdens of war will fall, by heavy taxation, +upon loyal citizens, but rebels are beyond our reach. How long +can we conduct such a war? Sir, we have been moderate to excess. +War is a horrible remedy, but when we are compelled to resort to +it, we should make our enemies feel its severity as well as +ourselves. . . . + +"If too much is attempted in the way of confiscation, nothing will +be accomplished. If nothing is confiscated, you array against you +all who wish in a civil war merely to preserve their property and +to remain quiet. This is always a large class in every community. +If rebellion will secure their property from rebels and not endanger +it to the government, they are rebels. Those whose position or +character have secured them offices among the rebels can only be +conquered by force. Is it not, therefore, possible to frame a bill +which will punish the prominent actors in the rebellion, proclaim +amnesty to the great mass of citizens in the seceding states, and +separate them from their leader? This, in my judgment, can be done +by confining confiscation to classes of persons. The amendment I +propose embraces five classes of persons." + +The confiscation act was more useful as a declaration of policy +than as an act to be enforced. It was denounced by the Confederates +and by timid men in the north, but the beneficial results it aimed +at were accomplished, not by law, but by the proclamation of the +President and by the armed forces of the United States. + +The several acts providing for enrolling and calling out the national +forces gave rise to much debate, partly upon sectional lines. The +policy of drafting from the militia of the several states, the +employment of substitutes and the payment of bounties, were contested +and defended. I insisted that if a special fund for hiring +substitutes was raised, it ought to be by a tax upon all wealthy +citizens, and not confined to the man who was drafted. These and +numerous questions of a similar character occupied much time, and +created much feeling. It is now hardly worth while, in view of +the results of the war, to revive old controversies. It is sufficient +to say that all the laws passed to organize the national forces +and call out the militia of the several states in case of emergency +contributed to the success of the Union armies. I do not recall +any example in history where a peaceful nation, ignorant of military +discipline, becoming divided into hostile sections, developed such +military power, courage and endurance as did the United States and +Confederate States in our Civil War. Vast armies were raised by +voluntary enlistments, great battles were fought with fearful losses +on both sides, and neither yielded until the Confederates had +exhausted all their resources and surrendered to the Union armies +without conditions, except such as were dictated by General Grant +--to go home and be at peace. + +During the entire war Washington was a military camp. Almost every +regiment from the north on the way to the army in Virginia stopped +for a time in Washington. This was especially the case in 1861. +It was usual for every new regiment to march along Pennsylvania +Avenue to the White House. Among the early arrivals in the spring +of 1861 was a regiment from New Hampshire, much better equipped +than our western regiments. My colleague, Ben Wade, and I went to +the White House to see this noted regiment pass in review before +Mr. Lincoln. As the head of the line turned around the north wing +of the treasury department and came in sight, the eyes of Wade fell +upon a tall soldier, wearing a gaudy uniform, a very high hat, and +a still higher cockade. He carried a baton, which he swung right +and left, up and down, with all the authority of a field marshal. +Wade, much excited, asked me, pointing to the soldier: "Who is +that?" I told him I thought that was the drum major. "Well," he +said, "if the people could see him they would make him a general." +So little was then known of military array by the wisest among our +Senators. + +It was quite a habit of Senators and Members, during the war, to +call at the camps of soldiers from their respective states. +Secretary Chase often did this and several times I accompanied him. +The "boys," as they preferred to be called, would gather around +their visitors, and very soon some one would cry out "a speech, a +speech," and an address would usually be made. I heard very good +speeches made in this way, and, in some cases, replied to by a +private soldier in a manner fully as effective as that of the +visitor. + +In the early period of the war the private soldier did not forget +that he was as good as any man. One evening Major, afterwards +Major-General, Robert S. Granger and I were strolling through "Camp +Buckingham," near Mansfield, Ohio, and came to a young soldier +boiling beans. He was about to take them off the fire when Granger +said: "My good fellow, don't take off those beans; they are not +done." The young soldier squared himself and with some insolence +said: "Do you think I don't know how to boil beans?" Granger, +with great kindness of manner, said: "If you had eaten boiled +beans in the army as many years as I have you would know it is +better to leave them in the pot all night with a slow fire." The +manner of Granger was so kindly that the soldier thanked him and +followed his advice. General Granger died at Zanesville, Ohio, +April 25, 1894, after having been on the retired list for over +twenty-one years. He was a gallant, as well as a skillful, officer. +Peace to his memory. + +It was my habit, while Congress was in session during the war, to +ride on horseback over a region within ten miles of Washington, +generally accompanied by some army officer. I became familiar with +every lane and road, and especially with camps and hospitals. At +that time it could be truly said that Washington and its environs +was a great camp and hospital. The roads were generally very muddy +or exceedingly dusty. The great army teams cut up and blocked the +roads which were either of clay or sand, but the air was generally +refreshing and the scenery charming. I do not know of any city +that has more beautiful environs, with the broad Potomac at the +head of tide water, the picturesque hills and valleys, the woodland +interspersed with deciduous and evergreen trees, the wide landscape, +extending to the Blue Ridge on the west, the low lands and ridges +of Maryland and the hills about Mt. Vernon. The city of Washington, +however, was then far from attractive. It was an overgrown village, +with wide unpaved avenues and streets, with 61,000 inhabitants +badly housed, hotels and boarding houses badly kept, and all +depending more or less upon low salaries, and employment by the +government. All this has been changed. The streets and avenues +have been paved and extended. The old site is now well filled with +comfortable mansions and business blocks, and a large portion of +the District outside the city is being occupied with villas and +market gardens. The mode of living has greatly changed. Before +and during the war, Senators and Members lived in boarding houses +in messes, formed of families of similar tastes and opinions. +Society, if it may be so called, was chiefly official, of which +justices of the Supreme Court and cabinet officers were the head, +and Senators and Members of Congress were the most numerous guests. + +When I entered Congress my pay as a Member was $8 a day during the +season, and it was said we had "roast beef;" but we paid for it if +we had it. At the close of the 34th Congress the compensation was +increased to $3,000 a year. During the latter part of the war and +afterwards, prices of food, board and lodging were considerably +advanced. + +In 1864 I offered the proprietor of Willard's Hotel my monthly pay +of $250 for board and lodgings, in very modest quarters, for my +wife and myself, but he demanded $300 a month. This led me to +purchase a house in which to live, a change which I have never +regretted. It was quite the fashion then for the old families, +who were in full sympathy with the Confederates, to underrate +property (even their own) in Washington, on the ground that when +the Confederacy was acknowledged the capital would be removed, and +real estate could, therefore, be obtained upon very reasonable +terms. + +After the war the feverish revival of business growing out of our +expanded currency led to such reckless extravagance in improvements +by public officials in Washington that for a time it threatened +the bankruptcy of the city, but, as this leads me in advance of +events, I will recur hereafter to the Washington of to-day. + +During 1870 Congress passed a law increasing the compensation of +Senators and Members from $3,000 to $5,000 a year, and justified +this increase by the inflated prices of everything measured by a +depreciated currency. There would have been but little complaint +of this by the people had not the law been made retroactive. It +was made to take effect at the beginning of that Congress, though +when the law was passed Congress was nearly ended. This "back +pay," amounting to over $3,000, was very unpopular, and led to the +defeat of many Members who voted for it. At home they were called +"salary grabbers." Several Senators and Members, I among the +number, declined to receive the back pay. But it was said that +the Congressmen could apply for it at any time in the future when +the excitement died away. This led me to write Francis E. Spinner, +Treasurer of the United States, to ascertain how I could cover into +the treasury my back pay. His answer was characteristic, and is +here inserted. Spinner, long since dead, was a peculiar character. +He was with me in the House of Representatives, was appointed +Treasurer of the United States by President Lincoln, and continued +as such until 1875. He was a typical officer, bold, firm and +honest. He was also a true friend, a model of fidelity and courage. + + "Treasury of the United States,} + "Washington, July 3, 1873. } +"My Dear Sir:--Your letter of the 28th ultimo has been received. + +"I sympathize with you most fully. I too have had my share of lies +told on me, by Dana and his 'Sun,' and shall be disappointed if +the libels are not continued, especially if I do right. Really +you have a white elephant on your hands. You can neither take the +back pay, nor leave it where it is, nor draw it and redeposit it, +without subjecting yourself to the yelping of the damned curs, that +bark at the heels of every honest man. + +"If you will turn to the proviso in Section 5, of the General +Appropriation Bill, approved July 12, 1870, at page 251, volume +16, of the Statutes at Large, you will, I think, be satisfied that +your back pay would never lapse to the treasury. Should you leave +it, as it now is, I think it would at all times be subject to your +order, and to the order of your heirs afterwards. The department +has decided that the appropriations for the pay of Members of +Congress is _permanent_. The papers say that the Comptroller has +decided that the back pay would lapse in two years. I called on +him to-day, and he furnished me with a copy of his opinion, which +is herewith inclosed you, and wrote me a note, a copy of which is +also inclosed, in which he says--'it could not be carried back +until after two years; whether it can be carried back is another +question, which I do not intend to decide.' There are two ways +that the amount can be carried back into the treasury: First, by +drawing out the amount, and redepositing it; and second, by directing +the secretary of the senate, by written order, to turn the amount +into the treasury. I, of course, can't advise you what to do. + + "Very respectfully yours, + "F. E. Spinner, Tr., U. S. +"Hon. John Sherman, Mansfield, Ohio." + +In the spring of 1863, the financial operations of the government +were eminently successful. In the fall of 1862, Secretary Chase +endeavored to sell the $500,000,000 5-20 six per cent. bonds, +authorized by the act of February 25, 1862, through experienced +officers in New York, and could not get par for them. He then +employed Jay Cooke, of Philadelphia, to take charge of this loan, +and within a year it was sold by him, to parties all over the +country, at par. The entire cost of placing the loan was less than +three-eighths of one per cent. It furnished the greater part of +the means necessary to conduct the war during 1863. + +The early victories of Grant and Forts Henry and Donelson had +rescued Kentucky, and opened up the Cumberland and Tennessee Rivers +to the heart of the south. The battle of Shiloh, though won at a +great sacrifice, inspired the western army with confidence, and +gave General Sherman his first opportunity to prove his ability as +a soldier. The timid handling of that army by Halleck and its +subsequent dispersion by his orders, and the general operations of +both the armies in the west and in Virginia, created a feeling of +despondency in the loyal states which was manifested in the election +in the fall of 1862. The military operations in the early part of +1863 did not tend to restore confidence. + +At this period I received the following letter from Secretary +Stanton, which evidenced his appreciation of General Sherman: + + "Washington, D. C., December 7, 1862. +"Hon. John Sherman. + +"Dear Sir:--The general's letter is returned herewith, having been +read with much interest and great admiration of his wisdom and +patriotism. If our armies were commanded by such generals we could +not fail to have a speedy restoration of the authority of the +government, and an end of the war. + +"I beg you to give him my warmest regards, and no effort of mine +will be spared to secure to the government the fullest exercise of +his abilities. With thanks for the favor, I am, + + "Yours truly, + "Edwin M. Stanton." + +The attack by General Sherman upon the defenses of Vicksburg had +been repulsed, but the effect of this had been counteracted by the +capture of Arkansas post with over 5,000 prisoners. General Grant +had failed in his operations in Mississippi. General Hooker had +been defeated at Chancellorsville, and Lee was preparing to make +an advance into Maryland and Pennsylvania. + +On May 1, 1863, Clement L. Vallandigham, for several years a Member +of Congress from Ohio, in a speech made at Mount Vernon, denounced +the government with great violence, and, especially, an order issued +by General Ambrose E. Burnside, commanding the department of the +Ohio, announcing that "all persons, found within our lines, who +commit acts for the benefit of the enemies of our country, will be +tried as spies or traitors, and if convicted will suffer death." +Burnside enumerated among the things which came within his order, +the writing or carrying of secret letters, passing the lines for +treasonable purposes, recruiting for the Confederate service. He +said: "The habit of declaring sympathy for the enemy will not be +allowed in this department; persons committing such offenses will +be at once arrested, with a view to being tried or sent beyond our +lines into the lines of their friends." + +Vallandigham denounced this order as a base usurpation of arbitrary +power; said that he despised it, and spat upon it, and trampled it +under his foot. He denounced the President, and advised the people +to come up together at the ballot box and hurl the tyrant from his +throne. Many of his hearers wore the distinctive badges of +"copperheads" and "butternuts," and, amid cheers which Vallandigham's +speech elicited, was heard a shout that Jeff. Davis was a gentleman, +which was more than Lincoln was. + +This speech was reported to General Burnside. Early on the 4th of +May a company of soldiers was sent to arrest Vallandigham, and the +arrest was made. Arriving at Cincinnati, he was consigned to the +military prison and kept in close confinement. This event caused +great excitement, not only in Cincinnati, but throughout the State +of Ohio. On the evening of that day a great crowd assembled at +Dayton, and several hundred men moved, hooting and yelling, to the +office of the Republican newspaper, and sacked and then destroyed +it by fire. Vallandigham was tried by a military commission, which +promptly sentenced him to be placed in close confinement in some +fortress of the United States, to be designated by the commanding +officer of the department, there to be kept during the continuance +of the war. Such an order was made by General Burnside, but it +was subsequently modified by Mr. Lincoln, who commuted the sentence +of Vallandigham, and directed that he be sent within the Confederate +lines. This was done within a fortnight after the court-martial. +Vallandigham was sent to Tennessee, and, on the 25th of May, was +escorted by a small cavalry force to the Confederate lines near +Murfreesboro, and delivered to an Alabama regiment. + +Vallandigham made a formal protest that he was within the Confederate +lines by force, and against his will, and that he surrendered as +a prisoner of war. His arrest for words spoken, and not for acts +done, created great excitement throughout Ohio and the country. +A public meeting was held in New York on May 16, which denounced +this action as illegal--as a step towards revolution. The Democratic +leaders of Ohio assumed the same attitude, and made a vigorous +protest to the President. It is not necessary to state this incident +more fully. Nicolay and Hay, in their history of Lincoln, narrate +fully the incidents connected with this arrest, and the disposition +of Vallandigham. The letters of the President in reply to Governor +Seymour, and to the meeting in Ohio, are among the most interesting +productions of Mr. Lincoln. He doubted the legality of the arrest. +He quoted the provision of the constitution that the privilege of +the writ of habeas corpus "should not be suspended unless, in cases +of invasion or rebellion, the public safety may require it." He +had suspended the privileges of that writ upon the happening of +contingencies stated in the constitution and, therefore, the +commanding officer was justified in making the arrest, and he did +not deem it proper to interfere with the order of the commanding +officer. + +This incident was made more important when, on the 11th of June, +the Democratic convention of the State of Ohio met at Columbus and +there formally nominated Vallandigham as the candidate of that +party for Governor of Ohio. This presented directly to the people +of that state the question of the legality and propriety of the +arrest of Vallandigham. The Republican party subsequently met and +nominated for governor John Brough, a lifelong Democrat, but in +through sympathy with the Union cause. + +It is difficult, now, to describe the intense excitement in Ohio +over the issue thus made--at times breaking into violence. +Vallandigham was received with great favor in the different cities +of the south, and finally, embarking on board of a vessel which +ran the blockade at Wilmington, he arrived at Bermuda on the 22nd +of June, from which place he took passage to Canada, arriving at +Niagara Falls about the middle of July. + +The feeling of anger and excitement among the loyal people of Ohio +increased, so that it was manifest that if Vallandigham entered +the state he would be in great danger, and a quasi civil war might +have arisen. I heard men of character and influence say distinctly +that if Vallandigham came into the state he would be killed, and +they, if necessary, would kill him. It was then understood that +Mr. Lincoln was disposed to allow him to enter the state. Senator +Wade and I met at Washington and had a conversation with Mr. Lincoln. +We told him the condition of feeling in Ohio, and of our confident +belief that if his order of banishment was revoked, it would result +in riots and violence, in which Vallandigham would be the first +victim. He gave us no positive assurance, but turned the conversation +by saying that he thought Vallandigham was safer under British +dominion, where he would have plenty of friends. + +In June, 1863, my health was somewhat impaired, and Mrs. Sherman +and I concluded to visit New England for a change of scene, and +for the benefit of the ocean air. We visited Newport in advance +of the season and found it deserted. We went to Boston, and there +heard of the advance of Lee in Pennsylvania, and the fierce contest +going on in the rear of Vicksburg. I became uneasy and started +for home with the intention of proceeding to Vicksburg, but at +Cleveland we heard the glad tidings of great joy, the fall of +Vicksburg and the defeat of Lee at Gettysburg. + +These victories, occurring on the same day, aroused the enthusiasm +and confidence of the loyal people of the United States, especially +the people of Ohio. Instead of a trip to Vicksburg I was soon +enlisted in the political canvass, and this for three months occupied +my attention. Meetings were held in every county and in almost +every township of the state. All on either side who were accustomed +to speak were actively engaged. My opening speech was made at +Delaware on the 29th of July. I was intensely interested in the +canvass, and therefore insert a few paragraphs from that speech, +as an indication of the state of feeling existing at that time: + +"The political campaign in Ohio this season presents some singular +features. We are in the midst of a great civil war, in which it +is safe to say that one million of men are now arrayed in arms +against each other. There are, perhaps, now, from Ohio, one hundred +thousand of her best and bravest citizens in the field, in hospitals +or camps, sharing the burdens of war. The immediate stake involved +is nothing less than national existence; while the ultimate stake +involves nothing less than civil liberty for generations yet to +come. In the midst of this contest the Democratic party, through +its most eloquent orators, endeavor to make a personal issue. They +propose to withdraw our armies, to abandon the war, and to try the +question whether their candidate for governor has been legally +convicted as a traitor to his country. + +"We are assured by Mr. Pugh, the Democratic candidate for lieutenant +governor, who is one of the most eloquent and able young men in +the state, that here in Ohio we have been subjected to a tyranny +as intolerable as that of King Bomba of Naples. When we ask for +evidence of this tyranny, we are told that Clement L. Vallandigham +has been illegally convicted and illegally banished; and that if +we are fit to be free we must stop and examine the record in his +case, and not be turned from it by clamors about prosecuting the +war, or of concluding peace. And we are told that if we don't do +all this we are helpless slaves and deserve no better fate. Now, +as I do not desire to be a slave, and do not wish the people of my +native state to be slaves, I will so far depart from my usual course +in political discussion as to examine the personal issue thus made. + +"I had supposed, fellow-citizens, that nowhere in the wide world +did people live as free from oppression as in the State of Ohio. +But the Democratic party has sounded the alarm that our liberties +were jeopardized in that Mr. Vallandigham has been, as they assert, +illegally convicted and banished. Before alluding to matters of +more general interest I propose to consider that question. + +"The candidate of the Democratic party was convicted by a military +tribunal for aiding the enemy with whom we are at war. For this +he was expelled beyond our lines, and was within the lines of the +enemy when nominated for governor of Ohio. By the judgment of a +military tribunal, composed mainly of his political friends, approved +by General Burnside, the chief military officer within the state, +sanctioned by Judge Leavitt--a judge selected by Vallandigham +himself--of the United States court, he was convicted and sentenced +to imprisonment during the war. By the mercy of the President he +was released from imprisonment and sent beyond our lines. While +thus banished as a convicted traitor, by military authority, the +Democratic party of the State of Ohio nominated this man as a +candidate for governor, and you are called upon to ratify and +confirm that nomination, to intrust this man, convicted as a traitor, +with the chief command of our militia, the appointment of all its +officers, and the management of the executive authority of the +state; and that, too, in the midst of a war with the rebels he was +convicted of aiding. . . . + +"And here is the marked distinction between the two parties. The +Union party strikes only at the rebels. The Democratic party +strikes only at the administration. The Union party insists upon +the use of every means to put down the rebels. The Democratic +party uses every means to put down the administration. I read what +is called the Democratic Platform, and I find nothing against the +rebels who are in arms against the best government in the world; +but I find numerous accusations against the authorities of the +government, who are struggling to put down the rebels. I find no +kindly mention of the progress of our arms, no mention of victories +achieved and difficulties overcome; no mention of financial measures +without a parallel in their success; no promise of support, no word +of encouragement to the constituted authorities; no allowance made +for human error; not a single patriotic hope. It is a long string +of whining, scolding accusations. It is dictated by the spirit of +rebellion, and, before God, I believe it originated in the same +malignant hate of the constituted authorities as has armed the +public enemies. I appeal to you if that is the proper way to +support your government in the time of war. Is this the example +set by Webster and Clay, and the great leaders of the Whig party +when General Jackson throttled nullification; or is it the example +of the tories of the Revolution?" + +Brough visited, I think, every county in the state. Everywhere +his meetings were large and enthusiastic, but it must be said also +that the Democratic meetings, which were equally numerous, were +very largely attended. The people were evidently anxious to hear +both sides. + +Towards the close of the campaign I accompanied Mr. Brough through +the populous central counties of the state. We spoke, among other +places, in Newark, Zanesville and Lancaster. The meetings were +not merely mass meetings, but they were so large that no human +voice could reach all those present, and speeches were made from +several stands in the open air, each surrounded by as many as could +hear. This indication of public feeling was somewhat weakened by +the fact that the Democratic meetings were also very large, and +the ablest members of that party were actively engaged in the +canvass. The "martyr" in Canada was the hero of these meetings, +and his compulsory arrest and absence from the state, but near its +border, was the constant theme of complaint. It was observed that +the rival meetings were attended by men of both parties in nearly +equal numbers, so that it was difficult to form an opinion of the +result. Mr. Brough kept a memorandum book containing the names of +the counties in the state and the estimated majorities for or +against him in each county. At night, when the crowds dispersed, +he would take out his book, and, upon the information received that +day, would change the estimate of his majorities. In view of the +enormous attendance at, and interest in, the Democratic meetings, +he was constantly lowering his estimated majority on the home vote, +until finally it declined to 5,000, with the army vote known to be +very largely in his favor. At Lancaster, where he had lived and +published a strong Democratic paper for many years, and where I +was born, he carefully analyzed his list, and, throwing his book +upon the table, emphatically said that he would not reduce his +majority of the home vote one vote below 5,000. The Democratic +party, however, seemed confident of Vallandigham's election. The +result was that Brough was elected by the unprecedented majority +of 101,000, of which 62,000 was on the home vote and 39,000 on the +vote of the soldiers in the field, they having the privilege of +voting. + +This settled once for all the position of Ohio, not only on the +question of the war, but on the determination of its people to +support Mr. Lincoln in the use of all the powers granted by the +constitution as construed by him, and to prosecute the war to final +success. Vallandigham remained in Canada until June, 1864, when +he returned quietly to Ohio, where he was permitted to remain. +His presence injured his party. His appearance in the national +convention at Chicago in 1864, and active participation in its +proceedings, and his support of General McClellan, greatly, I think, +diminished the chances of the Democratic ticket. He died seven +years later by an accidental wound inflicted by himself. + +I have always regarded Brough's election in Ohio upon the issue +distinctly made, not only as to the prosecution of the war, but in +support of the most vigorous measures to conduct it, as having an +important influence in favor of the Union cause equal to that of +any battle of the war. The results of all the elections in the +several states in 1863 were decidedly victories for the Union cause, +and especially in New York, Pennsylvania, Ohio and Maryland. + + +CHAPTER XV. +A MEMORABLE SESSION OF CONGRESS. +Dark Period of the War--Effect of the President's Proclamation-- +Revenue Bill Enacted Increasing Internal Taxes and Adding Many New +Objects of Taxation--Additional Bonds Issued--General Prosperity +in the North Following the Passage of New Financial Measures--Aid +for the Union Pacific Railroad Company--Land Grants to the Northern +Pacific--13th Amendment to the Constitution--Resignation of Secretary +Chase--Anecdote of Governor Tod of Ohio--Nomination of William P. +Fessenden to Succeed Chase--The Latter Made Chief Justice--Lincoln's +Second Nomination--Effect of Vallandigham's Resolution--General +Sherman's March to the Sea--Second Session of the 38th Congress. + +The 38th Congress met on the 7th of December, 1863. The Members +of the House of Representatives were elected in the fall of 1862, +perhaps the darkest period of the war for the Union cause. The +utter failure of McClellan's campaign in Virginia, the defeat of +Pope at the second battle of Bull Run, the jealousies then developed +among the chief officers of the Union army, the restoration of +McClellan to his command, the golden opportunity lost by him at +Antietam, the second removal of McClellan from command, the slow +movement of Halleck on Corinth, the escape of Beauregard, the +scattering of Halleck's magnificent army, the practical exclusion +of Grant and his command, and the chasing of Bragg and Buell through +Kentucky--these, and other discouraging events, created a doubt in +the public mind whether the Union could be restored. It became +known during the happening of these events that Mr. Lincoln had +determined upon the emancipation of slaves in states in rebellion +by an executive act. He said to the artist, F. B. Carpenter: + +"It had got to be midsummer, 1862; things had gone on from bad to +worse, until I felt that we had reached the end of our rope on the +plan of operations we had been pursuing; that we had about played +our last card, and must change our tactics, or lose the game. I +now determined upon the adoption of the emancipation policy; and +without consultation with, or the knowledge of, the cabinet, I +prepared the original draft of the proclamation." + +Of the cabinet, Blair deprecated this policy on the ground that it +would cost the administration in the fall elections. Chase doubted +the success of the measure and suggested another plan of emancipation, +but said that he regarded this as so much better than inaction on +the subject that he would give it his entire support. Seward +questioned the expediency of the issue of the proclamation at that +juncture. The depression of the public mind consequent upon repeated +reverses was so great that he feared the effect of so important a +step. + +In consequence of the opposition, the proclamation was postponed. +On the 22nd of September, the President, having fully made up his +mind, announced to the cabinet his purpose to issue the proclamation +already quoted. What he did, he said, was after full deliberation +and under a heavy and solemn sense of responsibility. + +The effect of this proclamation upon the pending elections in Ohio +was very injurious. I was then actively engaged in the canvass +and noticed that when I expressed my approbation of the proclamation, +it was met with coldness and silence. This was especially so at +Zanesville. The result was the election in Ohio of a majority of +Democratic Members of Congress. This, following the overwhelming +Republican victory in 1861, when Tod was elected governor by a +majority of 55,203, was a revolution which could only be ascribed +to the events of the war and to the issue of the proclamation. It +may be also partially ascribed to the discontent growing out of +the appointments, by Governor Tod, of officers in the volunteers. +The same discontent defeated the renomination of Governor Dennison +in 1861. Such is the usual result of the power of appointment, +however prudently exercised. + +The House of Representatives was promptly organized on the 7th of +December, 1863, by the election of Schuyler Colfax as speaker. +The session of Congress that followed was perhaps the busiest and +most important one in the history of our government. The number +of measures to be considered, the gravity of the subject-matter, +and the condition of the country, demanded and received the most +careful attention. The acts relating to the organization of the +army and the one increasing the pay of soldiers, made imperative +by the depreciation of our currency, as well as the draft and +conscription laws, received prompt attention. The enrollment act, +approved February 24, 1864, proved to be the most effective measure +to increase and strengthen the army. The bounty laws were continued +and the amount to be paid enlarged. The laws relating to loans, +currency, customs duties and internal taxes required more time and +occupied a great portion of the session. The revenue bill enacted +at that session was far more comprehensive and the rates much higher +than in any previous or subsequent law. It provided for an increase +of all internal taxes contained in previous laws, and added many +new objects of taxation, so as to embrace nearly every source of +revenue provided for by American or English laws, including stamp +duties upon deeds, conveyances, legal documents of all kinds, +certificates, receipts, medicines and preparations of perfumery, +cosmetics, photographs, matches, cards, and indeed every instrument +or article to which a stamp could be attached. It also provided +for taxes on the succession to real estate, legacies, distributive +shares of personal property, and a tax of from five to ten per +cent. on all incomes above $600, upon all employments, upon all +carriages, yachts, upon slaughtered cattle, swine and sheep, upon +express companies, insurance companies, telegraph companies, +theaters, operas, circuses, museums and lotteries, upon all banks +and bankers, brokers, and upon almost every article of domestic +production. It placed a heavy tax upon licenses, upon dealers in +spirits, upon brokers, lottery-ticket dealers and almost every +employment of life. + +It largely increased the tax on spirits, ale, beer, porter, and +tobacco in every form. Not content with this, on the last day of +the session, Congress levied a special income tax of five per cent., +to provide for the bounties promised to Union soldiers. This +drastic bill occupied the attention of both Houses during a +considerable portion of the session, and became a law only on the +30th of June, 1864, within four days of the close of the session. +It was greatly feared that the law could create discontent, but it +was received with favor by the people, few if any complaints being +made of the heavy burden it imposed. The customs duties were +carefully revised, not in the interest of protection but solely +for revenue. Nearly all the articles formerly on the free list +were made dutiable, and they proved to be copious sources of revenue, +especially the duties on tea, coffee, spirits of all kinds, wines, +cigars, and tobacco in every form. + +During that session Congress passed two important loan bills, which +practically confided to the Secretary of the Treasury the power to +borrow money in almost any form that could be devised. The first +act, approved March 3, 1864, authorized him to borrow, on the credit +of the United States, $200,000,000 during the current fiscal year, +redeemable after any period not less than five years, and payable +at any period not more than forty years from date, in coin, and +bearing interest at six per cent. per annum. It also provided for +the issue of $11,000,000 5-20 bonds which had been sold in excess +of the $500,000,000 authorized by law. By the act approved June +30, 1864, the Secretary of the Treasury was authorized to borrow, +on the credit of the United States, $400,000,000, on bonds redeemable +at the pleasure of the United States after a period of not less +than five, nor more than forty, years from date, bearing an annual +interest of not exceeding six per cent., payable semi-annually in +coin. He was authorized to receive for such bonds lawful money of +the United States, or, at his discretion, treasury notes, certificates +of indebtedness or certificates of deposit, issued under any act +of Congress. These bonds were similar in general description to +the 5-20 bonds already provided for, but bore interest at five per +cent. instead of six. + +By these measures the people of the United States had placed in +the power of the government almost unlimited sources of revenue, +and all necessary expedients for borrowing. Strange as it may +appear, under the operation of these laws the country was very +prosperous. All forms of industry hitherto conducted, and many +others, were in healthy operation. Labor was in great demand and +fully occupied. This will account for the passage of several laws +that would not be justified except in an emergency like the one +then existing. Among these was an act to encourage immigration, +approved July 4, 1864. This act grew out of the great demand for +labor caused by the absence of so many men in the army. A commission +of immigration was provided. Immigrants were authorized to pledge +their wages, for a term not exceeding twelve months, to repay the +expense of their immigration. These contracts were declared to be +valid in law and might be enforced in the courts of the United +States or of the several states and territories. It provided that +no immigrant should be compulsorily enrolled for military service +during the existing insurrection, unless such immigrant voluntarily +renounced, under oath, his allegiance to the country of his birth, +and declared his intention to become a citizen of the United States. +This law could only be justified by the condition of affairs then +existing. + +Another law, alike indefensible, but considered important at the +time, regulating the sale of gold, was approved June 17, 1864. +It declared unlawful a contract for the purchase or sale and delivery +of any gold coin or bullion, to be delivered on any day subsequent +to the making of the contract. It also forbade the purchase or +sale and delivery of foreign exchange, to be delivered at any time +beyond ten days subsequent to the making of such contract, or the +making of any contract for the sale and delivery of any gold coin +or bullion, of which the person making such contract was not at +the time of making it in actual possession. It also declared it +to be unlawful to make any loans of money or currency to be repaid +in coin or bullion or to make any loan of coin or bullion to be +repaid in currency. All these provisions were made to prevent what +were regarded as bets on the price of gold. This law, however, +proved to be ineffective, as all such laws interfering with trade +and speculation must be, and was soon repealed. + +The national banking act, which passed at the previous session, +was carefully revised and enacted in a new form, and it still +remains in force, substantially unchanged by subsequent laws. By +this new act the office of comptroller of the currency was created. +Under its provisions, aided by a heavy tax on the circulating notes +of state banks, such banks were converted into national banks upon +such conditions as secured the payment of their circulating notes. + +The financial measures, to which I have referred, were the work of +the committees of ways and means of the House and on finance in +the Senate. They occupied the chief attention of both Houses, and +may fairly be claimed by the members of those committees as successful +measures of the highest importance. I was deeply interested in +all of them, took a very active part in their preparation in +committee, and their conduct in the Senate, and, with the other +members of the committee, feel that the measures adopted contributed +largely to the final triumph of the Union cause. Certainly, the +full power of the United States, its credit and the property of +its people were by these laws intrusted to the executive authorities +to suppress the rebellion. + +In addition to military and financial measures, that session was +prolific in many other measures of primary importance. The Union +Pacific Railroad Company, which had been chartered by the previous +Congress, found itself unable to proceed, and appealed to Congress +for additional aid. This was granted by the act of July 2, 1864. +Under this act, the first lien of the United States for bonds +advanced to the company, provided for by the act of 1862, was made +subordinate to the lien of the bonds of the company sold in the +market--a fatal error, which led to all the serious complications +which followed. The proceeds of the sale of the first mortgage +bonds of the company, with a portion of those issued by the United +States in aid of the company, built both the Union and Central +Pacific, so that the constructors of those roads, who were mainly +directors and managers of the company, practically received as +profit a large portion of the bonds of the United States issued in +aid of the work, and almost the entire capital stock of the company. +If the act had been delayed until after the war, when the securities +of the United States rapidly advanced in value, it could not have +passed in the form it did. The construction of the road was +practically not commenced until the war was over. The constructors +had the benefit of the advancing value of the bonds and of the +increasing purchasing power of United States notes. + +It was unfortunate that the bill for the construction of the Northern +Pacific Railroad came up at the same time. It was a faulty measure, +making excessive grants of public lands to aid in the construction +of a railroad and telegraph line from Lake Superior to Puget Sound. +It was an act of incorporation with broad and general powers, +carelessly defined, and with scarcely any safeguards to protect +the government and its lavish grants of land. Some few amendments +were made, but mostly in the interest of the corporation, and the +bill finally passed the Senate without any vote by yeas and nays. + +These two bills prove that it is not wise during war to provide +measures for a time of peace. + +During the same session the Territories of Colorado, Nebraska and +Nevada were authorized to form state governments for admission into +the Union, and a government was provided for each of the Territories +of Montana and Idaho. The great object of organizing all the Indian +country of the west into states and territories was to secure the +country from Indian raids and depredations. + +By far the most beneficial action of Congress at this session was +the passage of the 13th article of the constitution of the United +States, viz., "Neither slavery nor involuntary servitude, except +as a punishment for crime, whereof the party shall have been duly +convicted, shall exist within the United States, or any place +subject to their jurisdiction." + +It was thoroughly debated, and passed the Senate by the large vote +of 38 yeas and 6 nays. It subsequently received the sanction of +the House and of the requisite number of states to make it a part +of the constitution. This was the natural and logical result of +the Civil War. In case the rebellion should fail, it put at an +end all propositions for compensation for slaves in loyal states, +and all question of the validity of the emancipation proclamation +of Abraham Lincoln. + +The following letter of Secretary Chase shows the extremity of the +measures deemed to be necessary at this period of the war: + + "Treasury Department, May 26, 1864. +"My Dear Sir:--I inclose two drafts of a national bank taxation +clause--one marked 'A,' providing for the appropriation of the +whole tax to the payment of interest or principal of the public +debt and repealing the real estate direct tax law, and another +marked 'B,' dividing the proceeds of the tax between the national +and the loyal states. In either form the clause will be vastly +more beneficial to the country than in the form of the bill, whether +original or amended. + +"I also inclose a draft of a section providing for a tax on banks +not national in the internal revenue act. It substantially restates +the House proposition limiting it to banks of the states. Some +discrimination in favor of the national system which affords +substantial support to the government as compared with the local +system, which circulates notes in competition with those issued by +the government, seems to me indispensably necessary. It is impossible +to prevent the depreciation of the currency unless Congress will +assume its constitutional function and control it; and it is idle +to try to make loans unless Congress will give the necessary support +to the public credit. I am now compelled to advertise for a loan +of fifty millions, and, to avoid as far as practicable the evils +of sales below par, must offer the long bonds of '81. Should the +provisions I ask for be denied, I may still be able to negotiate +the loan on pretty fair terms; but I dread the effects on future +loans. + +"Hitherto I have been able to maintain the public credit at the +best points possible with a surcharged circulation. My ability to +do so is due mainly to the legislation of the session of 1862-63. +I must have further legislation in the same direction if it is +desired to maintain that ability. + + "Yours truly, + "S. P. Chase. +"Hon. John Sherman." + +A few days before the close of the session, on the 29th of June, +1864, Mr. Chase tendered his resignation as Secretary of the +Treasury. This created quite a sensation in political circles. +It was thought to be the culmination of the feeling created by the +nomination of Lincoln and the alleged rivalry of Chase, but the +statements made in the "History of Lincoln," by Nicolay and Hay, +and the "Biography of Chase," by Schuckers, clearly show that the +cause of the resignation arose long anterior to this event and +gradually produced a condition of affairs when either Mr. Lincoln +had to yield his power over appointments or Mr. Chase retire from +his office. No good would result from analyzing the events which +led to this resignation. The cause was perhaps best stated by Mr. +Lincoln in accepting it, as follows: + +"Your resignation of the office of Secretary of the Treasury, sent +me yesterday, is accepted. Of all I have said in commendation of +your ability and fidelity I have nothing to unsay, and yet you and +I have reached a point of mutual embarrassment in our official +relation which it seems cannot be overcome or longer sustained +consistently with the public service." + +The nomination of David Tod, of Ohio, as Secretary of the Treasury +to succeed Mr. Chase, was not well received in either House. If +the Members had known Tod as well as I did, they would have known +that he was not only a good story teller, but a sound, able, +conservative business man, fully competent to deal with the great +office for which he was nominated. His declination, however, +prevented a controversy which would have been injurious, whatever +might have been the result. An anecdote frequently told by him +may, perhaps, explain his nomination. + +When he was elected Governor of Ohio, he went to Washington to see +Mr. Lincoln, to find out, as he said, what a Republican President +wanted a Democratic Governor of Ohio to do in aid of the Union +cause. He called at the White house, sent in his card, and was +informed that the President was engaged, but desired very much to +see Governor Tod, and invited him to call that evening at 7 o'clock. +Promptly on time Governor Tod called and was ushered into the room +where, for the first time, he saw Mr. Lincoln. Mutual salutation +had scarcely been exchanged before the announcement was made that +David K. Cartter was at the door. Mr. Lincoln asked the governor +if he had any objection to Cartter hearing their talk. The governor +said no, that Cartter was an old friend and law partner of his. +Soon after Governor Nye of Nevada was announced. The same inquiry +was made and answered, and Nye joined the party, and in the same +way Sam. Galloway, of Ohio, and a famous joker from New York, whose +name I do not recall, came in. Then grouped around the table, Nye +led off with a humorous description of life in the mines in the +early days of California, and the others contributed anecdotes, +humor and fun, in which Lincoln took the lead, "and I" (as Tod told +the story), "not to be behindhand, told a story;" and so the hours +flew on without any mention of the grave matters he expected to +discuss with the President. When the clock announced the hour of +eleven, Mr. Lincoln said he made it a habit to retire at eleven +o'clock, and, turning to Tod, said: "Well, Governor, we have not +had any chance to talk about the war, but we have had a good time +anyway; come and see me again." It then dawned upon the governor +that this little party of kindred spirits, all friends of his, were +invited by the President to relive him from an interview about the +future that would be fruitless of results. Neither could know what +each ought to do until events pointed out a duty to be done. +Lincoln knew that Tod was a famous story teller, as were all the +others in the party, and availed himself of the opportunity to +relieve his mind from anxious care. + +Governor Tod told me this anecdote and related many of the stories +told at that symposium. + +The nomination of William P. Fessenden as Secretary of the Treasury +was a natural one to be made, and received the cordial support of +Members of the Senate, even of those who did not like his occasional +ill temper and bitterness. And here I may properly pause to notice +the traits of two men with whom I was closely identified in public +life, and for whom I had the highest personal regard, although they +widely differed from each other. + +Mr. Fessenden was an able lawyer, a keen incisive speaker, rarely +attempting rhetoric, but always a master in clear, distinct statement +and logical argument. He had been for a number of years dyspeptic, +and this, no doubt, clouded his temper and caused many of the bitter +things he said. When I entered the Senate, I was, at his request, +placed on the committee on finance, of which he was chairman. He +was kind enough to refer to my position in the House as chairman +of the committee of ways and means, and my action there, and to +express the hope that I would be able to aid him in dealing with +financial question, in which he had no training and but little +interest. I accepted the position with pleasure, and in general +co-operated with him, though on many important subjects we widely +differed. His appointment as Secretary of the Treasury left me +chairman of the committee on finance, but my intercourse with him +continued while he was secretary. During the short period in which +he held that office, I had many conferences with him in respect to +pending questions. When he returned to the Senate, on the 4th of +March, 1865, he resumed his old place as chairman of the committee +on finance, and continued in that position nearly two years, when, +his health becoming more feeble, he resigned his membership of that +committee, and I again took his place as chairman and held it until +appointed Secretary of the Treasury in 1877. His health continued +to fail and he died at Portland, Maine, September 8, 1869. + +With Mr. Chase I had but little acquaintance and no sympathy during +his early political career. His edition of the "Statutes of Ohio" +was his first work of any importance. He was at times supposed to +be a Whig and then again classed as a Democrat. Later he became +a member of the national convention of Free Soilers held at Buffalo, +August 9, 1848, over which he presided. This convention was composed +of delegates from eighteen states, and included in its active +members many of the most eminent Whigs and Democrats of a former +time. It nominated Martin Van Buren for the Presidency, and Charles +Francis Adams for Vice President. General Taylor, the nominee of +the Whig party, was elected President, but Mr. Van Buren received +291,342 votes, being nearly one-eighth of the whole number of votes +cast. + +It so happened that when the Ohio legislature met in December, +1848, it was composed of an equal number of Whigs and Democrats +and of two members, Townsend and Morse, who classed themselves as +Free Soilers. They practically dictated the election of Mr. Chase +as United States Senator. They secured his election by an +understanding, express or implied, with the Democratic members, +that they would vote for Democrats for all the numerous offices, +which, under the constitution of the state as it then stood, were +appointed by the legislature. This bargain and sale--so-called-- +created among the Whigs a strong prejudice against Chase. But +events in Congress, especially the act repealing the Missouri +Compromise, practically dissolved existing parties, and left Mr. +Chase in the vantage ground of having resisted this measure with +firmness. He was universally regarded as a man of marked ability +and honest in his convictions. In the election for Members of +Congress in 1854, he supported what were known as the anti-Nebraska +candidates, and, no doubt, contributed to their election. When he +was nominated for governor, I was naturally brought into friendly +relations with him, and these, as time advanced, were cordial and +intimate. Our correspondence was frequent, mostly of a personal +character, and our intimacy continued while he lived. When he was +Secretary of the Treasury I was frequently consulted by him, and +had, as I believe, his entire confidence. I have a great number +of letters from him written during that period. + +In September, 1864, Mr. Chase was my guest at Mansfield for a day +or two. He was evidently restless and uneasy as to his future. +I spoke to him about the position of chief justice, recently made +vacant by the death of Taney. He said it was a position of eminence +that ought to satisfy the ambition of anyone, but for which few +men were fitted. Early in October I received a letter from him +which shows he was actively engaged in the canvass, and that the +common belief that he did not desire the election of Mr. Lincoln +was without foundation. He wrote as follows: + + "Louisville, October 2, 1864. +"My Dear Sir:--Some days since I informed the secretary of the +state central committee that I would, as far as possible, fill the +appointments which ill-health had obliged Gov. Tod to decline. +Seeing afterwards, however, that he had determined to meet them +himself, I acceded to requests from other quarters to given them +what help I could. The first intimation I had that he would fail +in any of them was your letter, put into my hands just as I was +leaving Cincinnati for New Albany last Friday. It was then too +late to recall my own appointments, and, of course, I cannot be at +Mansfield. I should be glad to be there; but regret the impossibility +of it the less since I should not meet you. I am really glad you +are going to Logansport. The election of Gov. Morton is of vast +importance to our cause. And, then, Colfax, I feel most anxious +for him. I hope you can go to his district. I wanted to go myself; +but was urged to other parts of Indiana, and was left no chance to +reach it till this week; which must be given to Ohio in aid of +Stevenson and Bundy, except that I speak here to-morrow (Monday), +and Tuesday night in Covington. + +"There has been a very large accumulation of troops here, for +Sherman. Col. Hammond telegraphed the department at Washington +yesterday that, communications being now re-established from +Nashville to Atlanta, he could commence sending them forward +immediately; and doubtless the movement will begin tomorrow. I +congratulate you most heartily of his splendid success thus far +and on the certainty that no effort will be spared to maintain his +army at the highest possible point of efficiency. + +"There appears to be no truth in the report of a co-operative +movement in aid of Sheridan for Tennessee. Burbridge's expedition +is for a point beyond Abingdon where there are important salt works, +and he intends returning thence through Knoxville. So I learn from +one who ought to know; but don't understand it. _That game_ seems +hardly worth the candle. + +"We had a splendid meeting in Aurora yesterday and our friends are +confident of Gov. Morton's re-election. Thousands of people stood +in a pouring rain to hear me and Gov. Lane talk to them, and +profounder or more earnest attention I never witnessed. It will +gratify you, I am sure, to know that I receive, wherever I go, +unequivocal manifestations of a popular confidence and appreciation, +which I did not suppose I possessed. + +"There is not now the slightest uncertainty about the re-election +of Mr. Lincoln. The only question is, by what popular and what +electoral majority. God grant that both may be so decisive as to +turn every hope of rebellion to despair! + +"You ask about Mr. Fessenden's remaining in the cabinet. He will +be a candidate for re-election to the Senate; and if successful +will leave his present post in March, or sooner if circumstances +allow. He has been in communication with me since he took charge, +and in every step, with perhaps one slight exception, his judgment +has corresponded with mine. He sees several matters now in quite +a different light from that in which they appeared to him when +Senator. He would now, for example, _cordially support_ your +proposition for a heavy discriminating tax upon all unnational +circulation. And he is more than just--he is very generous in his +appreciation of the immense work of organization and effective +activity to be found in the department. + +"How signally are events confirming my views as to the value of +gold, compared with national currency. How clear it is now that +if Congress had come boldly to the act of marked discriminative +taxation on all non-national circulation and final prohibition +after a few years, say two--or at most three--gold would now have +been at not more than fifty per cent. premium and that resumption +of specie payments might have been effected within a year. I trust +the next session will witness bolder and better legislation. It +will be one of your brightest honors that you so clearly saw and +so boldly followed the path of reform; for certainly no greater +boon--except liberty itself--can be conferred upon a nation than +a truly national and thoroughly sound currency. + + "Yours most truly, + "S. P. Chase. +"Hon. John Sherman." + +After the election he wrote me the following letter, in which he +referred to the appointment of a chief justice, with an evident +desire for the office: + + "Cincinnati, November 12, 1864. +"My Dear Sir:--The papers still state you are in Washington. I am +glad of it, and hope you may be able to render good service to our +friend, Fessenden. The task of preparing a report is no light one. +At least it always made me sweat and keep late hours. May he find +a safe deliverance from the labor. + +"All sorts of rumors are afloat about everything. Those which +concern me most relate to the vacant seat on the bench; but I give +little heed to any of them. My experience in Washington taught me +how unreliable they are. If what I hear is any index to the state +of opinion, Mr. Lincoln must be satisfied that in acting on the +purpose expressed in your letters, he will have the almost, if not +quite, unanimous approval of the Union men throughout the country. +So I 'possess my soul in patience,' and urge nothing. + +"If it did not seem to me a sort of indelicacy even to allow to +anyone the slightest occasion to say that I solicit or even ask +such an appointment as a favor or as a reward for political service, +I should now be on my way to Washington; but I think it due to +myself as well as the President to await his decision here; though, +if appointed, I hope the appointment will be considered as made +from the country at large rather than from Ohio alone. My legal +residence is here; but my actual domicile is still in the District. + +"Please write me, if you can, when the President will act. Let me +know too how the military and political aspects at Washington appear +to you. We have achieved a glorious political victory, which must +greatly help our military prospects and possibilities. + +"Mr. Miller has just come in and says he goes to Washington to- +night. Had he come before I began, I should have spared you this +letter; only asking him to make verbally the inquiries I have just +set down; but I will send it with 'answer respectfully solicited.' + + "Yours very cordially, + "S. P. Chase. +"Hon. John Sherman." + +Early in December I received the following letter, which indicates +very clearly that Mr. Chase was anxious for the position of chief +justice, and wished his appointment made, if at all, before his +arrival in Washington: + + "Cleveland, December 2, 1864. +"My Dear Sir:--Yours of the 27th of November reached me here to- +day. Yesterday I fulfilled my appointment to make an address on +the dedication of the college edifice recently erected at Mount +Union, under the patronage of the Pittsburg conference of the +Methodist church. A number of leading men of the denomination were +present and assured me of the profound wishes of themselves and +the most influential men of the connection for my appointment. +These indeed seem to be universal except with an inconsiderable +number whom various circumstances have made unfriendly personally. +So that I cannot doubt that the President's adherence to his declared +intention is more important to our cause and to his administration +than it is to me personally. Not to be appointed after such +declaration and such expressions would, no doubt, be a mortification; +but it would not, I think, be any serious injury to me. + +"I expect to be in Washington, Tuesday or Wednesday. I should have +been there long since had this appointment been determined either +way; but I must come now. My personal duties, unconnected with +it, have required and now require my attention, and though I hated +to come before I knew that there remains nothing to hope or fear +concerning it, I must. I will be at the Continental, Philadelphia, +Tuesday morning. + +"Our news from Tennessee is important and encouraging. Garfield's +success against Forrest was brilliant. I hope Thomas will succeed +as well against Hood. + +"General Sherman must now be near the coast. His enterprise is +full of hazard, but a hazard wisely incurred as it seems to me. +I ardently hope that 'out of the nettle, danger, he will pluck the +flower, safety.' + +"Our majority on the presidential election in Ohio turns out much +less than I anticipated. It will hardly, if at all, exceed fifty +thousand. + + "Faithfully yours, + "S. P. Chase. +"Hon. John Sherman." + +When I returned to Washington at the beginning of the next session +I called upon the President and recommended the appointment of Mr. +Chase. We had a brief conversation upon the subject in which he +asked me pointedly the question whether if Chase was appointed he +would be satisfied, or whether he would immediately become a +candidate for President. I told him I thought his appointment to +that great office ought to and would satisfy his ambition. He then +told me that he had determined to appoint him and intended to send +the nomination to the Senate that day and he did so, December 6, +1864. After Mr. Chase had become chief justice he still had a +lingering interest in the financial policy of the country. On +March 1, 1865, I received from him the following letter. The +portion which refers to the legal tender laws will naturally excite +some interest in view of his decision against the power of Congress +to make the notes of the United States a legal tender. He wrote: + + "At Home, March 1, 1865. +"My Dear Sir:--More to fulfill a promise than with the hope of +service I write this note. + +"Your speech on the finances is excellent. There are one or two +points on which I shall express myself otherwise; but, in the main, +it commands the fullest assent of my judgment. + +"Your appreciation of the currency question exactly corresponds +with my own; only I would not give up the national currency even +if we must endure for years depreciation through the issues of +state banks before getting rid of them. + +"The clause in the bill, as it came from the House, imposing a tax +of ten per cent. on all notes not authorized by Congress which may +be paid out after this year by any bank, whether state or national, +will do much towards making our currency sound. + +"I will briefly indicate what I should prefer and what I should +most zealously labor to have sanctioned by Congress if I were at +the head of the treasury department. + +"1. Let the monthly tax on state bank circulation be increased to +one-half of one per cent. + +"2. Provide that any bank may pay into the national treasury the +amount of its circulation in United States notes or national currency +and that on such payment the bank making it shall be exempt from +taxation on circulation. + +"3. Provide for the application to the redemption of the circulation +represented by such payments, of the United States notes or national +currency so paid in, and strictly prohibit the paying out of such +notes for any other purpose. + +"This measure contemplates: + +"1. An exclusive national currency. + +"2. Relief of the state banks from taxation upon circulation which +they cannot get in. + +"3. The assumption of the duty of redemption by the national +treasury with means provided by the state banks. + +"4. Reduction in the amount in circulation while the payments into +the treasury are being made and opportunity of some provision for +redemption which will not again increase it. + +"The effect will be: + +"1. Healthful condition of currency and consequent activity in +production and increase of resources. + +"2. Gradual restoration of national notes to equality with specie +and the facilitating of resumption of specie payments. + +"3. Improvement of national credit. + +"4. Diminution of national expenditures and possible arrest of +the increase of national debt. + +"Half measures are better than no measures; but thorough measures +are best. + +"I will only add, that while I have never favored legal tender laws +in principle, and never consented to them except under imperious +necessity, I yet think it unwise to prohibit the making of any of +the treasury notes authorized by the bill now before Congress legal +tenders. The compound interest legal tender notes have then +fulfilled all my expectations for their issue and use; and may be +made most useful helps in gradual reduction of the volume of +circulation by substituting them for legal tenders bearing no +interest. + +"I cannot elaborate this now. You will see how the thing will work +without any suggestion of mine. Faithfully your friend, + + "S. P. Chase. +"Hon. John Sherman." + +From my long and intimate acquaintance with Chief Justice Chase I +am quite sure that the duties of the great office he then held were +not agreeable to him. His life had been a political one, and this +gave him opportunity for travel and direct communion with the +people. The seclusion and severe labor imposed upon the Supreme +Court were contrary to his habits and injurious to his health. It +took him some years to become accustomed to the quiet of judicial +life. He presided over the Senate while acting as a court of +impeachment during the trial of Andrew Johnson in 1868. While +strongly opposed to the impeachment, he manifested no sign of +partiality. He died in New York city on the 7th of May, 1873, at +the age of sixty-five. + +While Congress was in session, the Republican national convention +met at Baltimore on the 7th day of June, 1864, to nominate candidates +for President and Vice President of the United States, and to +announce the principles and policy of the Republican party of the +United States. The nomination of Mr. Lincoln had already been made +by state legislatures and by the loyal people of the United States +in every form in which popular opinion can be expressed. The feeble +expressions of dissent were but a whisper compared with the loud +proclamations coming from every loyal state in favor of Lincoln. +The convention, with unanimous assent, ratified and confirmed the +popular choice. + +The nomination for Vice President was dictated by the desire to +recognize the loyalty and patriotism of those who, living in states +in rebellion, remained true and loyal to the Federal Union. Though +Mr. Johnson disappointed the expectations of those who nominated +him, yet at that time his courage and fidelity and his services +and sacrifices for the cause of the Union fully justified his +nomination. + +More important, even, than the choice of candidates, was the +declaration by the convention of the policy of the Republican party. +The key-note of that policy was the third resolution, as follows: + +"_Resolved_, that as slavery was the cause, and now constitutes +the strength of this rebellion, and as it must be always and +everywhere hostile to the principles of republican government, +justice and the national safety demand its utter and complete +extirpation from the soil of the republic; and that we uphold and +maintain the acts and proclamations by which the government, in +its own defense, has aimed a deathblow at the gigantic evil. We +are in favor, furthermore, of such an amendment to the constitution, +to be made by the people in conformity with its provisions, as +shall terminate and forever prohibit the existence of slavery within +the limits or the jurisdiction of the United States." + +This was the logical result of the war. If it was carried into +full execution, it would settle on a just and sure foundation the +only danger that ever threatened the prosperity of the Union. This +was happily carried into full effect by the constitutional amendment +to which I have already referred. + +The Democratic convention met at Chicago on the 29th of August, +1864, and nominated George B. McClellan as the candidate for +President and George H. Pendleton as Vice President; but far more +important and dangerous was the second, and the only material +resolution of the platform which was drawn by Vallandigham and was +as follows: + +"_Resolved_, that this convention does explicitly declare, as the +sense of the American people, that after four years of failure to +restore the Union by the experiment of war, during which, under +the pretense of a military necessity of a war power higher than +the constitution, the constitution itself has been disregarded in +every part, and public liberty and private right alike trodden +down, and the material prosperity of the country essentially +impaired, justice, humanity, liberty and the public welfare demand +that immediate efforts be made for a cessation of hostilities with +a view to an ultimate convention of all the states, or other +peaceable means, to the end that, at the earliest practicable +moment, peace may be restored on the basis of the federal union of +all the states." + +This was a false declaration, and was also a cowardly surrender to +enemies in open war. These two resolutions made the momentous issue +submitted to the American people. From the moment it was made the +popular mind grew stronger and firmer in favor of the prosecution +of the war and the abolition of slavery, and more resolute to resist +the surrender proposed to rebels in arms. Prior to the adoption +of this resolution, there was apparent languor and indifference +among the people as to who should be President, but after its +adoption there could be no doubt as to the trend of popular opinion. +Every sentiment of patriotism, the love of flag and country, the +pride of our people in the success of our soldiers, and the resentment +of the soldiers themselves at this slur on their achievements--all +contributed to the rejection of the candidates and the platform of +the Democratic party, and the overwhelming victory of the Republican +party. + +I had already entered into the canvass when this resolution of +Vallandigham was adopted. It was only necessary to read it to the +people of Ohio to arouse resentment and opposition. The scattered +opposition to Mr. Lincoln, much of it growing out of his conservatism, +at once disappeared. The discontented Republicans who met in +convention at Cleveland again became active in the Republican ranks. +The two parties that grew out of factional politics in New York, +the Blair party and its opponents in Missouri, and the army of +disaffected office-seekers, waived their dissensions and griefs. +Horace Greeley and the extreme opponents of slavery, represented +by Wendell Phillips, not satisfied with the slow, but constitutional +process of emancipation proposed by Lincoln, when compelled to +choose between that plan of abolition and unconditional surrender +to slavery, naturally voted for Lincoln. The great body of patriotic +Democrats in all the states, who supported the war, but were still +attached to their party, quietly voted for Lincoln. In Ohio, +especially, where a year before they voted against Vallandigham +for his disloyalty, they naturally voted against his resolution +for surrender to the rebels. + +During the campaign I accompanied Johnson to Indiana where he made +patriotic speeches to great audiences. His arraignment of the +autocracy of slaveholders in the south was very effective. The +current of opinion was all in favor of Lincoln. The result of the +election for Members of Congress in the states voting in October +was a decisive indication of the result in November. All the +central states elected a large majority of Republican Members of +Congress. In Ohio the Union party had a majority of over 50,000 +and elected 17 Republican and 2 Democratic Members of the House of +Representatives. In 1862 Ohio elected 14 Democratic and 5 Republican +Members. The presidential election that followed on the 8th of +November, 1864, resulted in an overwhelming victory for Lincoln. +He received 212 and McClellan 21 electoral votes, the latter from +the States of New Jersey, Delaware and Kentucky. This political +victory had a more decisive effect in defeating the rebellion than +many battles. I returned to Washington soon after the election. + +I was naturally deeply interested in the movements of General +Sherman's march to the sea. Towards the close of November we had +all sorts of rumors from the south, that General Sherman was +surrounded by Confederate troops, that his supplies were cut off, +that successful attacks had been made upon his scattered forces. +I naturally became uneasy, and went to President Lincoln for +consolation and such news as he could properly give me. He said: +"Oh, no, we have no news from General Sherman. We know what hole +he went in at, but we do not know what hole he will come out of," +but he expressed his opinion that General Sherman was all right. +Soon after, authentic information came that General Sherman had +arrived at Savannah, that Fort McAllister was taken, and the army +was in communication with the naval forces. The capture of Savannah +and the northward march of General Sherman's army is part of the +familiar military history of the country. + +The second session of the 38th Congress convened on the 5th of +December, 1864. It was a busy and active session confined mainly +to appropriations, loan and currency bills. The necessary expenditures +had been so greatly increased by the war that the aggregate amounts +appropriated naturally created some opposition and alarm, but there +was no help for it. As chairman of the committee on finance I did +all I could to reduce the appropriations for civil expenses, but +in respect to military expenditures there could scarcely be any +limit, the amount necessary being dependent upon military success. +The hopeful progress of the war gave encouragement that in a brief +period the power of the Confederate States would be exhausted and +peace would follow. We had, however, to legislate upon the basis +of the continued prosecution of the war, and it therefore became +necessary to increase the revenues in every possible way, and to +provide for new loans. The act approved March 3, 1865, authorized +the Secretary of the Treasury to borrow not exceeding $600,000,000, +and to issue therefore bonds or treasury notes of the United States +in such form as he might provide. This was the last great loan +authorized during the war. An act to provide internal revenue to +support the government was approved on the same day, which modified +many of the provisions of the previous act, but added subjects of +taxation not embraced in previous laws. It especially increased +the taxes on tobacco in its various forms. The 6th section +provided: + +"That every national banking association, state bank, or state +banking association, shall pay a tax of ten per centum on the amount +of notes of any state bank or state banking association, paid out +by them after the first day of July, eighteen hundred and sixty- +six." + +This tax on state bank circulation was a practical prohibition of +all state bank paper, and before the time fixed for the commencement +of the tax, this circulation entirely disappeared. Additional +duties were placed upon certain foreign importations. Provisions +were also made for the collection in the insurrectionary districts +within the United States of the direct taxes levied under the act +of 1862. During the entire season my labor was excessive, and when +it closed my health and strength were greatly impaired. + + +CHAPTER XVI. +ASSASSINATION OF ABRAHAM LINCOLN. +Johnson's Maudlin Stump Speech in the Senate--Inauguration of +Lincoln for the Second Term--My Trip to the South--Paying off a +Church Debt--Meetings to Celebrate the Success of the Union Army-- +News of the Death of Lincoln--I Attend the Funeral Services--General +Johnston's Surrender to General Sherman--Controversy with Secretary +Stanton Over the Event--Review of 65,000 Troops in Washington--Care +of the Old Soldiers--Annual Pension List of $150,000,000--I am Re- +elected to the Senate--The Wade-Davis Bill--Johnson's Treatment of +Public Men--His Veto of the Civil Rights Bill--Reorganization of +the Rebel States and Their Final Restoration to the Union. + +On the 4th of March, 1865, at the inauguration of the President +and Vice President elect, a scene occurred in the Senate chamber, +which made a serious impression, and was indicative of what was to +occur in the future. About eleven o'clock of that day Andrew +Johnson, Vice President, was shown into the room in the capitol +assigned to the Vice President. He complained of feeling unwell +and sent for either whisky or brandy, and must have drunk excessively +of it. A few minutes before twelve o'clock he was ushered into +the Senate to take the oath of office and to make the usual brief +address. He was plainly intoxicated and delivered a stump speech +unworthy of the occasion. Before him were assembled all the +principal officers of the government and the diplomatic corps. He +went on in a maudlin and rambling way for twenty minutes or more, +until finally he was suppressed by the suggestion of the secretary +that the time for the inauguration had arrived, and he must close. + +The procession was formed for the inauguration at the east front +of the capitol, where a great multitude was gathered. There Mr. +Lincoln delivered his memorable inaugural address. Referring to +the condition of the controversy at the time of his former inaugural, +he said: + +"Both parties deprecated war; but one of them would _make_ war +rather than let the Union survive; and the other would _accept_ +war rather than let it perish. And the war came." + +He hopefully predicted the result of the war, but he said: + +"Yet, if God wills that it continue until all the wealth piled by +the bondsman's two hundred and fifty years of unrequited toil shall +be sunk, and until every drop of blood drawn with the lash shall +be paid by another drawn with the sword, as was said three thousand +years ago, so still it must be said, 'The judgments of the Lord +are true and righteous altogether.'" + +His peroration will always be remembered for its impressive +eloquence: + +"With malice towards none, with charity for all, with firmness in +the right, as God gives us to see the right, let us strive on to +finish the work we are in; to bind up the nation's wounds; to care +for him who shall have borne the battle, and for his widow, and +his orphan; to do all which may achieve and cherish a just and +lasting peace among ourselves and with all nations." + +Soon after the adjournment I was invited by Secretary Stanton, with +many other Senators and our families, to take a trip to the south +in the steamer "Baltic." Among those on board were Senators Simon +Cameron, Wade, Zach. Chandler, and Foster, of Connecticut, then +president _pro tempore_ of the Senate. The sea was exceedingly +boisterous. Nearly all on board were sea sick, but none so badly +as Wade and Chandler, both of whom, I fear, violated the third +commandment, and nearly all the party were in hearty sympathy with +them. I was a good sailor and about the only one who escaped the +common fate. We visited the leading places of interest along the +coast, but especially Charleston, Beaufort and Savannah. Charleston +had but recently been evacuated. General Sherman was then on his +march through North Carolina. In Charleston everything looked +gloomy and sad. I rode on horseback alone through different parts +of the city, and was warned by officers not to repeat the ride, +as, if my name was known, I would be in danger of being shot. + +We arrived in Beaufort on Sunday morning. The town was then full +of contrabands. We remained there that day and received an invitation +from a negro preacher to attend religious services at his new +meeting-house. About fifteen or twenty of the party went to the +"meeting-house," a new unfinished skeleton-frame house of considerable +size without any plastering--a mere shell. We were shown to seats +that had been reserved for us. The rest of the congregation were +negroes in every kind of dress and of every shade of color. The +scene was very interesting, but the sermon of the preacher was +little better than gibberish. He was a quaint old man, wearing +goggles and speaking a dialect we could hardly understand. At the +close of his sermon he narrated how the meeting-house had been +built; that John had hauled the logs, Tom, Dick and Harry, naming +them, had contributed their labor, but they were in debt something +over $200, and, with a significant glance at our little party, he +thought this was a good time to take up a collection. No sooner +was this said than Cameron, whispering to me, said: "Let's pay +it; I'll give twenty dollars," and when the hat came around, instead +of the usual dimes and quarters in ragged currency, it received +greenbacks of good denominations. In the meantime the old preacher, +highly elated, called upon the audience to sing "John Brown's Body." +A feeble, piping voice from an old negro woman started the singing +and the rest of the negroes, with loud melodious voices, joined +in, and, before it was through, the rest of us joined in. The hat, +when returned to the preacher, was found to contain more than fifty +dollars in excess of the amount necessary to pay off the debt. +Then, with many thanks to us by the preacher, the audience was +requested to remain standing until their visitors left. + +Our visit at Savannah was very interesting. We there found many +leading citizens of the town who were social and kind, treating us +in a friendly way by rides around the city. + +In the latter part of March, I was invited by General Sherman, then +on a visit to Grant near Petersburg, Virginia, to go with him to +Goldsboro, North Carolina, where his army was then encamped. +Secretary Stanton was my next door neighbor, and our families were +intimately associated. I invited his eldest son, Edwin, then a +young man studying law, to accompany me, an invitation which he +gladly accepted. We joined General Sherman at Fortress Monroe and +accompanied him on the steamer "Bat" to Newbern and thence by rail +to Goldsboro. There was a sense of danger in traveling by rail +through a country mostly unoccupied, but we reached the army at +Goldsboro safely. There I had my first view of a great army in +marching garb. Most of the troops had received their new uniforms +and equipments, but outlying regiments were constantly coming in, +ragged, with tattered hats, shoes and boots of every description, +almost black from exposure and the smoke of the pine woods, and as +hardy a looking set of men as one could conceive of. They had +picked up all kinds of paraphernalia, "stove pipe" hats being the +favorite, and had all sorts of wagons gathered in their march. +Their appearance was rapidly changed by new uniforms. After a +brief visit I returned to Washington, and thence to my home in +Mansfield. + +I was invited soon after, on the 14th of April, to attend a mass +meeting at Columbus to celebrate the success of the Union army. +I accepted the invitation and attended an immense meeting in the +open air on the capitol grounds, and there Samuel Galloway and +myself made addresses. Meetings were held, congratulations uttered +in the evening of that day. The whole city was in holiday attire, +ornamented with flags, and everywhere and with everybody, there +was an expression of joy. I retired late at night to my room in +the hotel, and after my fatigue slept soundly. + +Early the next morning Rush Sloane, a personal friend, rapped at +my door and announced to me the news of the assassination of Lincoln, +and, as then reported, that of Seward. The change from joy to +mourning that day in Columbus was marked and impressive. No event +of my life created a more painful impression than this news following +the rejoicings of the day before. I returned to Washington and +attended the funeral services over the body of Mr. Lincoln, then +about to be carried on the long journey to his old home in Springfield, +Illinois. + +On the 6th of May, in response to the invitation of my neighbors +in Mansfield, I made an address upon the life and character of the +dead President. It expressed the opinion and respect I then +entertained for him, and now I could add nothing to it. As time +moves on his name and fame become brighter, while most of his +contemporaries are one by one forgotten. + +Soon after the death of Mr. Lincoln, the terms of the surrender of +General Johnston to General Sherman became the subject of a violent +controversy. On the 21st of April, Secretary Stanton issued an +order to General Grant to proceed immediately to the headquarters +of General Sherman and direct operations against the enemy. He +issued a bulletin in which he intimated that Davis and his partisans +were on their way to escape to Mexico or Europe with a large amount +of gold plundered from the Richmond banks and from other sources, +and that they hoped to make terms with General Sherman by which +they would be permitted with their effects, including their gold +plunder, to go to Mexico or Europe. The most violent and insulting +paragraphs were published in the newspapers, substantially arraigning +General Sherman as a traitor and imputing to him corrupt motives. +I felt myself bound at once, not to defend the terms of surrender, +but to repel the innuendoes aimed at General Sherman. This led me +into a controversy with Mr. Stanton, not worth while to recall. + +I believed then and still believe that he was under the influence +of perhaps a well-grounded fear that his life was in danger. The +atmosphere of Washington seemed to be charged with terror, caused +by the assassination of Lincoln, the wounding of Seward and the +threats against all who were conspicuous in political or military +life in the Union cause. Now, since we are fully informed of all +the surrounding circumstances connected with the surrender, and +the belief of General Sherman that he was strictly carrying out +the policy of President Lincoln, it is plain that he acted in what +he supposed was the line of duty. He did not comprehend that the +fatal crime in Washington changed the whole aspect of affairs. +His agreement with Johnston was on its face declared to be inoperative +until approved by the authorities at Washington, and, while the +political features of the surrender could not be approved, a simple +notification of disapproval would have been cheerfully acted upon +and the orders of the President would have been faithfully carried +out. + +General Sherman, when he received notice of the disapproval of his +action, at once notified Johnston, and new terms were arranged in +exact accordance with those conceded by General Grant to General +Lee. + +I remained in Washington until the arrival, on the 19th of May, of +General Sherman's army, which encamped by the roadside about half +way between Alexandria and the Long Bridge. I visited the general +there and found that he was still smarting under what he called +the disgrace put upon him by Stanton. I advised him to keep entirely +quiet, said the feeling had passed away and that his position was +perfectly well understood. I persuaded him to call on the President +and such members of the cabinet as he knew, and accompanied him. +He was dressed in full uniform, well worn, was bronzed and looked +the picture of health and strength. As a matter of course he +refused to call on Stanton and denounced him in unmeasured terms, +declaring that he would insult him whenever the opportunity occurred. +When he came in contact with his fellow officers and found that +they sympathized with him his anger abated, and by the time the +great review took place, he seemed to have recovered his usual +manner. + +The review of General Meade's army was to occur on Tuesday, May +23, and that of General Sherman's, as it was called, on the 24th. +General Sherman, with his wife and her father, Hon. Thomas Ewing, +and myself, were present on the reviewing stand on the first day +of the review. He received on the stand the congratulations of +hundreds of people and seemed to enjoy every moment of time. He +was constantly pointing out to Mr. Ewing and myself the difference +between the eastern and western armies, in which he evidently +preferred the Army of the West. On the next day, prompt to the +time stated, attended by a brilliant staff, he rode slowly up +Pennsylvania avenue at the head of his column, and was followed by +a magnificent army of 65,000 men, organized into four army corps, +and marching with that precision only possible with experienced +troops. His description of the scene in his "Memoirs" proves his +deep interest in the appearance of his army and his evident pride +in it. When he arrived at the grand stand, where the President +reviewed the troops, he dismounted, left the line, came upon the +stand and took his place by the side of the President. Everyone +knew his relations to Stanton, and was curious to see the result +of their meeting. I stood very near the general, and as he approached +he shook hands with the President and the members of the cabinet, +but when Stanton partially reached out his hand, General Sherman +passed him without remark, but everyone within sight could perceive +the intended insult, which satisfied his honor at the expense of +his prudence. However, it is proper to say that these two men, +both eminent in their way, became entirely reconciled before the +death of Mr. Stanton. General Sherman always stopped with me when +he was temporarily in Washington, and I know that in a brief period +they met and conversed in a friendly way. When Mr. Stanton lay +upon his death bed, General Sherman not only called upon him, but +tendered his services, and exhibited every mark of respect for him. + +The great body of the volunteer forces was disbanded, the officers +and soldiers were returning to their homes. To most of them the +war was a valuable lesson. It gave them a start in life and a +knowledge and experience that opened to door to all employment, +especially to official positions in state and nation. In all +popular elections the soldier was generally preferred. This was +a just recognition for his sacrifices and services. I hope and +trust that while a single survivor of the War of the Rebellion is +left among us, he will everywhere be received with honor and share +all the respect which the boys of my generation were so eager to +grant and extend to the heroes of the Revolutionary War. The +service of one was as valuable as the other, rendered on a broader +field, in greater numbers, with greater sacrifices, and with the +same glorious results of securing the continuance of an experiment +of free government, the most successful in the history of mankind +and which is now, I profoundly trust, so well secured by the heroism +and valor of our soldiers, that for generations and centuries yet +to come no enemy will dare to aim a blow at the life of the republic. +For the wounded and disabled soldiers and the widows and orphans of +those who fell, a larger provision of pensions was freely granted +than ever before by any nation in ancient or modern times. +Provision was made by the general government, and by most of the +loyal states, for hospitals and homes for the wounded. The bodies +of those who died in the service have been carefully collected into +cemeteries in all parts of the United States. If there has been +any neglect or delay in granting pensions, it has been caused by +the vast number of applications--more than a million--and the +difficulty as time passes in securing the necessary proof. The +pension list now, thirty years after the war, requires annually +the sum of more than $150,000,000, or three times the amount of +all the expenses of the national government before the war. No +complaint is made of this, but Congress readily grants any increase +demanded by the feebleness of age or the decay of strength. I +trust, and believe, that this policy will be continued until the +last surviving soldier of the war meets the common fate of all. + +I participated in the canvass of 1865, when General Jacob D. Cox, +the Republican candidate for governor of Ohio, and a Republican +legislature were elected with but little opposition. The first +duty of this legislature was to elect a Senator. There was a +friendly contest between General Robert C. Schenck, Hon. John A. +Bingham and myself, but I was nominated on the first ballot and +duly elected. + +I received many letters from Horace Greeley, in the following one +of which he showed great interest in my re-election to the Senate: + + "New York, February 7, 1865. +"Hon. John Sherman: + +"My Dear Sir:--Yours of the 5th inst. at hand. I can assure you +that the combination to supplant you in the Senate is quite strong +and confident of success. I did not mean to allude to the controversy, +but was compelled to by the dispatch which got into our columns. +I observe J. W. wrote 'locality' as he says, but the change to +'loyalty' was a very awkward one in these days; so I felt compelled +to correct it. + +"I fear more the raids of Thad. Stevens on the treasury than those +of Mosby on our lines. + + "Yours, + "Horace Greeley." + +When Congress met on the 4th of December, 1865, it had before it +two important problems which demanded immediate attention. One +was a measure for the reconstruction of the states lately in +rebellion and the other was a plan for refunding and paying the +public debt. It was unfortunate that no measure had been provided +before the close of the war defining the condition of the states +lately in rebellion, securing the freedmen in their new-born rights, +and restoring these states to their place in the Union. Therefore, +during the long vacation, from April to December, the whole matter +was left to executive authority. If Lincoln had lived, his action +would have been acquiesced in. It would have been liberal, based +upon universal emancipation of negroes, and pardon to rebels. It +was supposed that President Johnson would err, if at all, in imposing +too harsh terms upon these states. His violent speeches in the +canvass of 1864, and his fierce denunciation of the leaders in the +Rebellion, led us all to suppose that he would insist upon a +reconstruction by the loyal people of the south and that reasonable +protection would be extended to the emancipated negroes. The +necessity of legislation for the reconstruction of the Confederate +states was foreseen and provision had been made by Congress, during +the war, by what was known as the Wade-Davis bill, to provide for +the reorganization of these states. During the 37th Congress, +Henry Winter Davis, though not then a Member of the House of +Representatives, prepared a bill to meet this exigency. It was a +bill to guarantee to each state a republican form of government. +It embodied a plan by which these states, then declared by Congress +to be in a state of insurrection, might, when that insurrection +was subdued or abandoned, come back freely and voluntarily into +the Union. It provided for representation, for the election of a +convention and a legislature, and of Senators and Members of +Congress. It was a complete guarantee to the people of the +insurrectionary states that upon certain conditions these states +might resume their place in the Union when the insurrection had +ceased. This bill he handed to me. I introduced it at his request. +It was referred to the judiciary committee, but was not acted upon +by it. + +Afterwards Mr. Davis came into the 38th Congress as a Member of +the House of Representatives. Among the first acts performed by +him after taking his seat was the introduction of this same bill. +On the 15th of December, 1863, it was debated in the House of +Representatives and passed by a very decided vote, and was sent to +the Senate. It was reported to the Senate favorably, but in place +of it was substituted a proposition offered by B. Gratz Brown, of +Missouri. This substitute provided a mode by which the eleven +Confederate states might, when the Rebellion was suppressed within +their limits, be restored to their old places in the Union. The +bill was sent back to the House with the proposed substitute. A +committee of conference was appointed, and the House preferring +the original bill, the Senate receded from its amendment, and what +was known as the Wade-Davis bill passed. It went to President +Lincoln, who did not approve it, and it did not become a law, but +on the 8th of July, 1864, after the close of the session, he issued +the following proclamation: + +"Whereas, at the late session Congress passed a bill to guaranty +to certain states, whose governments have been usurped or overthrown, +a republican form of government, a copy of which is hereunto annexed; +and whereas the said bill was presented to the President of the +United States for his approval less than one hour before the _sine +die_ adjournment of said session, and was not signed by him; and +whereas the said bill contains, among other things, a plan for +restoring the states in rebellion to their proper practical relation +in the Union, which plan expresses the sense of Congress upon that +subject, and which plan it is now thought fit to lay before the +people for their consideration: + +"Now, therefore, I, Abraham Lincoln, President of the United States, +do proclaim, declare, and make known, that while I am (as I was in +December last, when by proclamation I propounded a plan for +restoration) unprepared, by a formal approval of this bill, to be +inflexibly committed to any single plan of restoration; and while +I am also unprepared to declare that the free state constitutions +and governments already adopted and installed in Arkansas and +Louisiana shall be set aside and held for naught, thereby repelling +and discouraging the loyal citizens who have set up the same as to +further effort, or to declare a constitutional competency in Congress +to abolish slavery in states, I am at the same time sincerely hoping +and expecting that a constitutional amendment abolishing slavery +throughout the nation may be adopted." + +He added his reasons for not approving the Wade-Davis bill. He +did not entirely disapprove of it, but said it was one of numerous +plans which might be adopted. Mr. Sumner stated, on the floor of +the Senate, that he had had an interview with President Lincoln +immediately after the publication of that proclamation, and it was +the subject of very minute and protracted conversation, in the +course of which, after discussing the details, Mr. Lincoln expressed +his regret that he had not approved the bill. I have always thought +that Mr. Lincoln made a serious mistake in defeating a measure, +which, if adopted, would have averted many if not all the difficulties +that subsequently arose in the reconstruction of the rebel states. + +The next and closing session of that Congress neglected to provide +for the reorganization of these states, and, thus, when Mr. Johnson +became President, there was no provision of law to guide him in +the necessary process of reconstruction. Thus, by the disagreement +between Congress and President Lincoln, which commenced two years +before the close of the war, there was no law upon the statute book +to guide either the President or the people of the southern states +in their effort to get back into the Union. It became imperative +during the long period before the meeting of Congress that President +Johnson should, in the absence of legislation, formulate some plan +for the reconstruction of these states. He did adopt substantially +the plan proposed and acted upon by Mr. Lincoln. After this long +lapse of time I am convinced that Mr. Johnson's scheme of reconstruction +was wise and judicious. It was unfortunate that it had not the +sanction of Congress and that events soon brought the President +and Congress into hostility. Who doubts that if there had been a +law upon the statute book by which the people of the southern states +could have been guided in their effort to come back into the Union, +they would have cheerfully followed it, although the conditions +had been hard? In the absence of law both Lincoln and Johnson did +substantially right when they adopted a plan of their own and +endeavored to carry it into execution. Johnson, before he was +elected and while acting as military governor of Tennessee, executed +the plan of Lincoln in that state and subsequently adopted the same +plan for the reorganization of the rebel states. In all these +plans the central idea was that the states in insurrection were +still states, entitled to be treated as such. They were described +as "The eleven states which have been declared to be in insurrection." +There was an express provision that: + +"No Senator or Representative shall be admitted into either branch +of Congress from _any of said states_ until Congress shall have +declared _such state_ entitled to such representation." + +In all the plans proposed in Congress, as well as in the plan of +Johnson, it was declared that states had no right while in insurrection +to elect electors to the electoral college; they had no right to +elect Senators and Representatives. In other words they could not +resume the powers, rights and privileges conferred upon states by +the Constitution of the United States, except by the consent of +Congress. Having taken up arms against the United States, they by +that act lost their constitutional powers within the United States +to govern and control our councils. They could not engage in the +election of a President, or of Senators or Members of Congress; +but they were still states. The supreme power of Congress to +change, alter or modify the acts of the President and to admit or +reject these states and their Senators and Representatives at its +will and pleasure, and the constitutional right of the respective +Houses to judge of the election, returns and qualifications of its +own Members were recognized. When Mr. Johnson came into power he +found the Rebellion substantially subdued. His first act was to +retain in his confidence, and in his councils, every member of the +cabinet of Abraham Lincoln, and, so far as we know, every measure +adopted by him had the approval and sanction of that cabinet. +Every act passed by Congress, with or without his assent, upon +every subject whatever, connected with reconstruction, was fairly +and fully executed. He adopted all the main features of the Wade- +Davis bill--the only one passed by Congress. In his proclamation +of May 9, 1865, he provided: + +"First, That all acts and proceedings of the political, military, +and civil organizations which have been in a state of insurrection +and rebellion within the State of Virginia against the authority +and laws of the United States, and of which Jefferson Davis, John +Letcher, and William Smith were late the respective chiefs, are +declared null and void." + +Thus, with a single stroke, he swept away the whole superstructure +of the Rebellion. He extended the tax laws of the United States +over the rebel territory. In his proclamation of May 29, he says: + +"To the end, therefore, that the authority of the government of +the United States may be restored, and that peace, order, and +freedom may be established, I, Andrew Johnson, President of the +United States, do proclaim and declare that I hereby grant to all +persons who have directly or indirectly participated in the existing +Rebellion, _except as hereinafter excepted_, amnesty and pardon, +with restoration of all rights of property, _except as to slaves_, +and except in cases where legal proceedings, under the laws of the +United States providing for the confiscation of property of person +engaged in rebellion, have been instituted, &c." + +He enforced in every case full and ample protection to the freedmen +of the southern states. No complaint from them was ever brought +to his knowledge in which he did not do full and substantial justice. +The principal objection to his policy was that he did not extend +his proclamation to all the loyal men of the southern states, +including the colored as well as the white people. It must be +remembered in his justification that in every one of the eleven +states before the Rebellion the negro was, by the laws, excluded +from the right to vote. In Ohio, Pennsylvania and New York that +right was limited. In a large majority of the states, including +the most populous, negro suffrage was then prohibited. It would +seem to be a great stretch of power on his part, by a simple +mandatory proclamation or military order, to confer the franchise +on a class of people, who were then prohibited from voting not only +in the eleven southern states, but in a majority of the northern +states. Such a provision, if it had been inserted, could not have +been enforced, and, in the condition in which slavery left the +negro race, it could hardly be defended. I cannot see any reason +why, because a man is black, he should not vote, and yet, in making +laws, as the President was then doing, for the government of the +community, he had to regard the prejudices, not only of the people +among whom the laws were to be executed, but also of the army and +the people who were to execute those laws, and no man can doubt +but what at that time there was a strong and powerful prejudice in +the army and among all classes of citizens against extending the +right of suffrage to negroes, especially down in the far south, +where the great body of the slaves were in abject ignorance. + +It must be also noted that in the Wade-Davis bill Congress did not +and would not make negro suffrage a part of its plan. Even so +radical an anti-slavery man as my colleague, Senator Wade, did not +propose such a measure. The effort was made to give emancipated +negroes the right to vote, and it was abandoned. By that bill the +suffrage was conferred only upon _white_ male loyal citizens. And +in the plan of the President, he adopted in this respect the very +same conditions for suffrage as those proposed by Congress. I +believe that all the acts and proclamations of President Johnson +before the meeting of Congress were wise and expedient, and that +there would have been no difficulty between Congress and the +President but for his personal conduct, and, especially, his +treatment of Congress and leading Congressmen. The unfortunate +occurrence, already narrated, at his inauguration, was followed by +violent and disrespectful language, unbecoming the President, +especially, his foolish speech made on the 22nd of February, 1866, +in which he selected particular persons as the objects of denunciation. +He said: + +"I fought traitors and treason in the south. I opposed the Davises, +the Toombses, the Slidells, and a long list of others, which you +can readily fill without my repeating the names. Now, when I turn +round, and at the other end of the line find men, I care not by +what name you call them, who still stand opposed to the restoration +of the Union of these states, I am free to say to you that I am +still in the field." + +And again he said: + +"I am called upon to name three at the other end of the line; I am +talking to my friends and fellow-citizens, who are interested with +me in this government, and I presume I am free to mention to you +the names of those whom I look upon as being opposed to the +fundamental principles of this government, and who are laboring to +pervert and destroy it." + +Voices: "Name them!" "Who are they!" + +He replied: + +"You ask me who they are. I say Thaddeus Stevens, of Pennsylvania, +is one; I say Mr. Sumner, of the Senate, is another; and Wendell +Phillips is another." + +The violence of language, so unlike that of Abraham Lincoln, added +to the hostility to Mr. Johnson in Congress, and, I think, more +than any other cause, led to his impeachment by the House of +Representatives. + +In the beginning of the controversy between Congress and the +President, I tried to act as a peacemaker. I knew Mr. Johnson +personally, his good and his bad qualities. I sat by his side in +the Senate chamber during the first two years of the war. I was +with him in his canvass in 1864. I sympathized with him in his +struggles with the leaders of the Rebellion and admired his courage +during the war, when, as Governor of Tennessee, he reorganized that +state upon a loyal basis. The defect of his character was his +unreasoning pugnacity. He early became involved in wordy warfare +with Sumner, Wade, Stevens and others. In his high position he +could have disregarded criticism, but this was not the habit of +Johnson. When assailed he fought, and could be as violent and +insulting in language and acts as anyone. + +Under these circumstances I made a long and carefully considered +speech in the Senate on the 26th of February, 1866, in which I +stated the position of Congress on the reconstruction measures, +and the policy adopted by Johnson from Lincoln. Either of these +plans would have accomplished the provisional restoration of these +states to the Union, while all agreed that, when admitted, they +would be armed with all the powers of states, subject only to the +constitution of the United States. I believed then, and believe +now, that the quarrel with Johnson did much to weaken the Republican +party. In consequence of it several Republican Senators and Members +severed their connection with that party and joined the Democratic +party. Johnson, irritated by this antagonism, drifted away from +the measures he had himself advocated and soon after was in open +opposition to the party that elected him. I here insert passages +from my speech, which expressed my views at the time, and which I +now feel were justified by the then existing opinions and conditions +of political life: + +"Sir, I can imagine no calamity more disgraceful than for us by +our divisions to surrender, to men who to their country were enemies +in war, any or all of the powers of this government. He, who +contributes in any way to this result, deserves the execrations of +his countrymen. This may be done by thrusting upon the President +new issues on which the well-known principles of his life do not +agree with the judgment of his political associates. It may be +done by irritating controversies of a personal character. It may +be done by the President turning his back upon those who trusted +him with high power, and thus linking his name with one of the most +disgraceful in American history, that of John Tyler. I feel an +abiding confidence that Andrew Johnson will not and cannot do this; +and, sir, who will deny that the overbearing and intolerant will +of Henry Clay contributed very much to the defection of John Tyler? +But the division of the Whig party was an event utterly insignificant +in comparison with the evil results of a division in the Union +party. + +"Where will be the four million slaves whom by your policy you have +emancipated? What would be their miserable fate if now surrendered +to the custody of the rebels of the south? Will you, by your demand +of universal suffrage, destroy the power of the Union party to +protect them in their dearly purchased liberty? Will you, by new +issues upon which you know you have not the voice of the people, +jeopard these rights which you can by the aid of the Union party +secure to these freedmen? We know that the President can not and +will not unite with us upon the issues of universal suffrage and +dead states, and he never agreed to. No such dogmas were contemplated, +when, for his heroic services in the cause of the Union, we placed +him, side by side, with Mr. Lincoln as our standard-bearer. Why, +then, present these issues? Why decide upon them? Why not complete +the work so gloriously done by our soldiers in securing union and +liberty to all men without distinction of color, leaving to the +states, as before, the question of suffrage. + +"Sir, the curse of God, the maledictions of millions of our people, +and the tears and blood of new-made freedmen will, in my judgment, +rest upon those who now for any cause destroy the unity of the +great party that has led us through the wilderness of war. We want +now peace and repose. We must now look to our public credit. We +have duties to perform to the business interests of the country, +in which we need the assistance of the President. We have every +motive for harmony with him and with each other, and for a generous +and manly trust in his patriotism. If ever the time shall come +when I can no longer confide in his devotion to the principles upon +which he was elected, I will bid farewell to Andrew Johnson with +unaffected sorrow. I will remember when he stood in this very +spot, five years ago, repelling with unexampled courage the assaults +of traitors. He left in their hands wife, children, property, and +home, and staked them all on the result. I will remember that when +a retreating general would have left Nashville to its fate, that +again, with heroic courage, he maintained his post. I will remember +the fierce conflicts and trials through which he and his fellow- +compatriots in east Tennessee maintained our cause in the heart of +the Confederacy. I will remember the struggles he had with the +aristocratic element of Tennessee, never ashamed of his origin and +never far from the hearts of the people. + +"Sir, you must not sever the great Union party from this loyal +element of the southern states. No new theories of possible utopian +good can compensate for the loss of such patriotism and devotion. +Time, as he tells you in his message, is a great element of reform, +and time is on your side. I remember the homely and encouraging +words of a pioneer in the anti-slavery cause, an expelled Methodist +preacher from the south, who told those who were behind him in his +strong anti-slavery opinions: 'Well, friends, I'll block up awhile; +we must all travel together.' So I say to all who doubt Andrew +Johnson, or who wish to move more rapidly than he can, to block up +awhile, to consolidate their great victory with the certainty that +reason and the Almighty will continue their work. All wisdom will +not die with us. The highest human wisdom is to do all the good +you can, but not to sacrifice a possible good to attempt the +impracticable. God knows that I do not urge harmony and conciliation +from any personal motive. The people of my native state have +intrusted me with a position here extending four years beyond the +termination of the President's term of office. He can grant me no +favor. + +"If I believed for a moment that he would seek an alliance with +those who, by either arms or counsel or even apathy, were against +their country in the recent war, and will turn over to them the +high powers intrusted to him by the Union party, then, sir, he is +dishonored, and will receive no assistance from me; but I will not +force him into that attitude. If he shall prove false to the +declaration made by him in his veto message, that his strongest +desire was to secure to the freedmen the full enjoyment of their +freedom and property, then I will not quarrel with him as to the +means used. And while, as he tells us in this same message, he +only asks for states to be represented which are presented in an +attitude of loyalty and harmony and in the persons of representatives +whose loyalty cannot be questioned under any constitutional or +legal test, surely we ought not to separate from him until, at +least, we prescribe a test of their loyalty, upon which we are +willing to stand. We have not done it yet. I will not try him by +new creeds. I will not denounce him for hasty words uttered in +repelling personal affronts. + +"I see him yet surrounded by the cabinet of Abraham Lincoln, pursuing +Lincoln's policy. No word from me shall drive him into political +fellowship with those who, when he was one of the moral heroes of +this war, denounced, spit upon him, and despitefully used him. +The association must be self-sought, and even then I will part with +him in sorrow, but with the abiding hope that the same Almighty +power that has guided us through the recent war will be with us +still in our new difficulties until every state is restored to its +full communion and fellowship, and until our nation, purified by +war, will assume among the nations of the earth the grand position +hoped for by Washington, Clay, Webster, Lincoln, and hundreds of +thousands of unnamed heroes who gave up their lives for its glory." + +I received many letters in commendation of this speech, among others +the following from Thurlow Weed, who was in full sympathy with +Secretary Seward: + + "Albany, N. Y., February 28, 1866. +"Dear Sherman:--You have spoken words of wisdom and patriotism-- +spoken them boldly at the right time. They will help save the +Union--and they will save the Union particularly if fanatics and +despots will allow it to be saved. Just such a speech at the moment +it was made is worth more than all that has been said in Congress +since the session commenced. I thank you gratefully for it. + + "Yours truly, + "Thurlow Weed." + +I still hoped that the pending civil rights bill would be approved +by the President, and that then the controversy would end. On the +17th of March, 1866, I made a speech at Bridgeport, Conn., in which +I said: + +"Now, I say, that upon all these various propositions, upon the +necessity of a change in the basis of representation, upon the +necessity for protecting the negroes, upon this question of suffrage +--upon all these questions that have arisen in our politics of +late, the differences between Andrew Johnson and Congress are not +such as need excite the alarm of any patriotic citizen. No, my +friends, we have a great duty to perform to our country. Every +man in public life now has a heavy responsibility resting upon him, +in the discharge of which he is bound to follow the dictates of +his own conscience, given to him by Almighty God. There are, there +must be, differences of opinion; God has so made us that we must +differ; it is the established nature of the human mind to disagree. +It is only by discussion and comparison of views that the highest +human wisdom is elicited. Therefore, I say again, that no Union +man need feel anxious or uneasy because of the differences between +the President and Congress. Let me tell you, as the solemn conviction +with which I address you to-night, that Andrew Johnson never will +throw the power we have given him into the hands of the Copperhead +party of the United States. + +"I have many reasons for this faith. One is that no nomination +has ever been sent by Andrew Johnson to the Senate of the United +States of any man of that stripe of politics. No flattery, no +cajolery can draw him from that line. He is a man who fights his +own battles, and whether they are old friends or foes that assail +him he fights them with equal freedom and boldness, and sometimes, +perhaps indiscreetly; but that is a fault of his character, which +need excite no uneasiness in the minds of the people. + +"On Thursday, the day that I left Washington, we sent to him a bill +which secures to all the colored population of the southern states +equal rights before the law, the civil rights bill. It declares +that no state shall exclude any man on account of his color from +any of the natural rights which, by the Declaration of Independence, +are declared to be inalienable; it provides that every man may sue +and be sued, may plead and be impleaded, may acquire and hold +property, may purchase, contract, sell and convey; all those rights +are secured to the negro population. That bill is now in the hands +of the President. If he sign it, it will be a solemn pledge of +the law-making power of the nation that the negroes shall have +secured to them all these natural and inalienable rights. I believe +the President will sign it." + +Unfortunately at the end of ten days the President sent to the +Senate the civil rights bill, referred to, with his message vetoing +it. It passed both Houses with the requisite two-thirds majority, +and thus became a law. This veto was followed by other vetoes, +and, practically, the President abandoned his party. From this +time forth, I heartily joined with my political associates in the +measures adopted to secure a loyal reorganization of the southern +states. I was largely influenced by the harsh treatment of the +freedmen in the south under acts adopted by the reconstructed +legislatures. The outrages of the Ku-Klux-Klan seemed to me to be +so atrocious and wicked that the men who committed them were not +only unworthy to govern, but unfit to live. The weakness of the +position of Congress in the controversy with Mr. Johnson, was, that +it had furnished no plan of reconstruction and he was compelled to +act upon the urgency of events. Many efforts were made to provide +legislation to take the place of the proclamations and acts of the +President, but a wide divergence of opinion in the Republican party +manifested itself, and no substantial progress was made until near +the close of the second session of the 39th Congress. Several +bills were then pending in each House to provide governments for +the insurrectionary states. On the 13th of February, 1867, during +the short session, a bill with that title came from the House of +Representatives. It was manifest unless this bill could be acted +upon, that, in the then condition of Congress, all legislation +would fail. It was kept before the Senate and thoroughly debated. +On the 16th of February, after consultation with my political +colleagues, I moved a substitute for the House bill. The fifth +section of this substitute embodied a comprehensive plan for the +organization of the rebel states with provision for elections in +said states, and the conditions required for their administration +and restoration to the Union and the exercise by them of all the +powers of states, and provided for the election of Senators and +Members of Congress. In presenting this substitute, I briefly +stated my reasons for it, as follows: + +"The principle of this bill is contained in the first two lines of +the preamble. It is founded upon the proclamation of the President +and Secretary of State made just after the assassination of President +Lincoln, in which they declared specifically that the Rebellion +had overthrown all civil governments in the insurrectionary states, +and they proceeded by an executive mandate to create governments. +They were provisional in their character, and dependent for their +validity solely upon the action of Congress. These are propositions +which it is not now necessary for me to demonstrate. These +governments have never been sanctioned by Congress, nor by the +people of the states where they exist. Taking that proclamation +and the acknowledged fact that the people of the southern states, +the loyal people, whites and blacks, are not protected in their +rights, but that an unusual and extraordinary number of cases occur +of violence, and murder, and wrong, I do think it is the duty of +the United States to protect these people in the enjoyment of +substantial rights. + +"Now, the first four sections of this substitute contain nothing +but what is the present law. There is not a single thing in the +first four sections that does not now exist by law. + +"The first section authorizes the division of the rebel states into +military districts. That is being done daily. + +"The second section acknowledges that the President is the commanding +officer of the army, and it is made his duty to assign certain +officers to those districts. That is clearly admitted to be right. + +"The third section does no more than what the Supreme Court in +their recent decision have decided could be done in a state in +insurrection. The Supreme Court in their recent decisions, while +denying that a military tribunal could be organized in Indiana +because it never had been in a state of insurrection, expressly +declared that these tribunals might have been, and might now be, +organized in insurrectionary states. There is nothing in this +third section, in my judgment, that is not now and has not been +done every month within the last twelve months by the President of +the United States. The orders of General Sickles, and many other +orders I might quote, have gone further in punishment of crime than +this section proposes. + +"Now, in regard to the fourth section, that is a limitation upon +the present law. Under the present law many executions of military +tribunals are summarily carried out. This section requires all +sentences of military tribunals which affect the liberty of the +citizen to be sent to the commanding officer of the district. They +must be approved by the commanding officer of the district; and so +far as life is concerned the President may issue his order at any +moment now, or after this bill passes, directing that the military +commander of the district shall not enforce a sentence of death +until it is submitted to him, because the military officer is a +mere subordinate of the President, remaining there at the pleasure +of the President. + +"There is nothing, therefore, in these sections, that ought to +alarm the nerves of my friend from Pennsylvania, or anybody else. +I cannot think that these gentlemen are alarmed about the state of +despotism that President Johnson is to establish in the southern +states. I do not feel alarmed; nor do I see anything in these +sections as they now stand that need endanger the rights of the +most timid citizen of the United States. They are intended to +protect a race of people who are now without protection. + +"Now, in regard to the fifth section, which is the main and material +feature of this bill, I think it is right that the Congress of the +United States, before its adjournment, should designate some way +by which the southern states may reorganize loyal state governments +in harmony with the constitution and laws of the United States, +and the sentiment of the people, and find their way back to these +halls. My own judgment is that the fifth section will point out +a clear, easy, and right way for these states to be restored to +their full power in the government. All that it demands of the +people of the southern states is to extend to all their male +citizens, without distinction of race or color, the elective +franchise. It is now too late in the day to be frightened by this +simple proposition. Senators can make the most of it as a political +proposition. Upon that we are prepared to meet them. But it does +point out a way by which the twenty absent Senators, and the fifty +absent Representatives can get back to these halls, and there is +no other way by which they can justly do it. + +"It seems to me that this is the whole substance of the bill. All +there is material in the bill is in the first two lines of the +preamble and the fifth section, in my judgment. The first two +lines may lay the foundation adopting the proclamation issued first +in North Carolina, that the Rebellion had swept away all the civil +governments in the southern states; and the fifth section points +out the mode by which the people of those states in their own +manner, without any limitations or restrictions by Congress, may +get back full representation in Congress. That is the view I take +of this amended bill; and taking that view of it I see no reason +in the world why we should not all vote for it." + +The substitute was adopted on the same day and the bill, thus +amended, was passed by a vote of yeas 29, nays 10. In the House +it was agreed to with slight amendments, which were finally concurred +in by the Senate, on February 20, 1867. It was sent to the President +and was not approved by him, but was, on the 2nd of March, passed +over his veto by a vote of two-thirds of both Houses. + +Upon the law, long deferred, the several states mentioned in it +were organized and restored to their place in the Union. The +preamble and fifth and sixth sections of this law are as follows: + +"An Act to Provide for the More Efficient Government of the Rebel +States. + +"Whereas, no legal state governments or adequate protection for +life or property now exists in the rebel states of Virginia, North +Carolina, South Carolina, Georgia, Mississippi, Alabama, Louisiana, +Florida, Texas, and Arkansas; and whereas it is necessary that +peace and good order should be enforced in said states until loyal +and republican state governments can be legally established: +Therefore, + +"_Be it enacted by the Senate and House of Representatives of the +United States of America in Congress assembled:_ . . . + +"Sec. 5. _And be it further enacted_, That when the people of any +one of said rebel states shall have formed a constitution of +government in conformity with the constitution of the United States +in all respects, framed by a convention of delegates elected by +the male citizens of said state, twenty-one years old and upward, +of whatever race, color, or previous condition, who have been +resident in said state for one year previous to the day of such +election, except such as may be disfranchised for participation in +the Rebellion, or for felony at common law, and when such constitution +shall provide that the elective franchise shall be enjoyed by all +such persons as have the qualifications herein stated for electors +of delegates, and when such constitution shall be ratified by a +majority of the persons voting on the question of ratification who +are qualified as electors for delegates, and when such constitution +shall have been submitted to Congress for examination and approval, +and Congress shall have approved the same, and when said state, by +a vote of its legislature, elected under such conditions, shall +have adopted the amendment to the constitution of the United States, +proposed by the 39th Congress, and known as article fourteen, and +when said article shall have become a part of the constitution of +the United States, said state shall be declared entitled to +representation in Congress, and Senators and Representatives shall +be admitted therefrom on their taking the oath prescribed by law, +and then and thereafter the preceding sections of this act shall +be inoperative in said state: _Provided_, That no person excluded +from the privilege of holding office by said proposed amendment to +the constitution of the United States shall be eligible to election +as a member of the convention to frame a constitution for any of +said rebel states, nor shall any such person vote for members of +such convention. + +"Sec. 6. _And be it further enacted_, That, until the people of +said rebel states shall be by law admitted to representation in +the Congress of the United States, any civil government which may +exist therein shall be deemed provisional only, and in all respects +subject to the paramount authority of the United States at any time +to abolish, modify, control, or supersede the same; and in all +elections to any office under such provisional governments all +persons shall be entitled to vote, and none others, who are entitled +to vote, under the provisions of the fifth section of this act; +and no person shall be eligible to any office under any such +provisional governments who would be disqualified from holding +office under the provisions of the third article of said constitutional +amendment." + +At the same time, the financial question, embracing the currency, +the public debt and the national revenue were of the highest +importance and demanded immediate consideration. Hugh McCulloch, +the Secretary of the Treasury, had been during most of his life a +banker in the State of Indiana, of acknowledged ability as such, +but with little or no experience as a financier dealing with public +questions. He was the first comptroller of the currency under the +banking act, and rendered valuable service in organizing the system +of national banks, though he had not originally favored the system, +but was, at the time of its adoption, a strong supporter of sound +state banks. In his first report to Congress on the 4th of December, +1865, he, as Secretary of the Treasury, took strong ground against +United States notes as a circulating medium and their being made +a legal tender as money. He regarded the legal tender acts as war +measures, and, while he did not recommend their repeal, he expressed +his opinion that they ought not to remain in force one day longer +than would be necessary to enable the people to prepare for a return +to the constitutional currency. He denied the authority of Congress +to issue these notes except in the nature of a loan, and affirmed +that the statute making them a legal tender for all debts, public +and private, was not within the scope of the duties or the +constitutional powers of Congress; that their issue as lawful money +was a measure necessary in a great emergency, but, as this emergency +did not then exist, the government should, as speedily as possible, +withdraw them, and he recommended that the work of retiring the +notes should be commenced without delay and carefully and persistently +continued until all were retired. He proposed to do this by the +sale of bonds for United States notes outstanding and their withdrawal +and cancellation. He recommended as a substitute the notes of +national banks, but even these notes he thought redundant, and said: + +"There is no fact more manifest that the plethora of paper money +is not only undermining the morals of the people by encouraging +waste and extravagance, but is striking at the root of our material +prosperity by diminishing labor . . . and if not speedily checked, +will, at no distant day, culminate in widespread disaster. The +remedy, and the only remedy within the control of Congress, is, in +the opinion of the secretary, to be found in the reduction of the +currency." + +The chief part of his report was devoted to the danger of inflation +and the necessity of contraction. He said the longer contraction +was delayed the greater must the fall eventually be, and the more +serious its consequences. + +In accordance with the recommendations of Secretary McCulloch, a +bill was introduced in the House by Justin S. Morrill, which +authorized the Secretary of the Treasury, at his discretion, to +sell any of the description of bonds authorized by the act of March +3, 1865, the proceeds to be used only to retire treasury notes or +other obligations issued under any act of Congress. This bill as +reported would have placed in the power of the secretary the +retirement of all United States notes at his discretion. An +amendment was made in the House which provided: + +"That of United States notes not more than ten millions of dollars +may be retired and canceled within six months from the passage of +this act, and thereafter not more than four millions of dollars in +any one month." + +The bill as it came to the Senate was as follows: + +"An act to amend an act entitled 'An act to provide ways and means +to support the government,' approved March third, eighteen hundred +and sixty-five. + +"_Be it enacted by the Senate and House of Representatives of the +United States of America in Congress assembled_, That the act +entitled 'An act to provide ways and means to support the government,' +approved March third, eighteen hundred and sixty-five, shall be +extended and construed to authorize the Secretary of the Treasury, +at his discretion, to receive any treasury notes or other obligations +issued under any act of Congress, whether bearing interest or not, +in exchange for any description of bonds authorized by the act to +which this is an amendment; and also to dispose of any description +of bonds authorized by said act, either in the United States or +elsewhere, to such an amount, in such manner, and at such rates, +as he may think advisable, for lawful money of the United States, +or for any treasury notes, certificates of indebtedness, or +certificates of deposit, or other representatives of value, which +have been or which may be issued under any act of Congress, the +proceeds thereof to be used only for retiring treasury notes or +other obligations issued under any act of Congress; but nothing +herein contained shall be construed to authorize any increase of +the public debt: _Provided_, That of United States notes not more +than ten millions of dollars may be retired and canceled within +six months from the passage of this act, and thereafter not more +than four millions of dollars in any one month: _And provided +further_, That the act to which this is an amendment shall continue +in full force in all its provisions, except as modified by this act. + +"Sec. 2. _And be it further enacted_, That the Secretary of the +Treasury shall report to Congress at the commencement of the next +session the amount of exchanges made or money borrowed under this +act, and of whom and on what terms; and also the amount and character +of indebtedness retired under this act, and the act to which this +is an amendment, with a detailed statement of the expense of making +such loans and exchanges." + +This bill, without change, became a law April 12, 1866. I believed +then, and now know, that the passage of this law was a great +misfortune. It enabled the Secretary of the Treasury to retire at +a rapid rate United States notes and to largely increase the bonded +indebtedness of the United States. It would no doubt have brought +us abruptly to the specie standard and made us dependent for +circulating notes upon the issues of national banks. + +At this time there was a wide difference of opinion between Secretary +McCulloch and myself as to the financial policy of the government +in respect to the public debt and the currency. He was in favor +of a rapid contraction of the currency by funding it into interest +bearing bonds. I was in favor of maintaining in circulation the +then existing volume of currency as an aid to the funding of all +forms of interest-bearing securities into bonds redeemable within +a brief period at the pleasure of the United States, and bearing +as low a rate of interest as possible. Both of us were in favor +of specie payments, he by contraction and I by the gradual advancement +of the credit and value of our currency to the specie standard. +With him specie payments was the primary object, with me it was a +secondary object, to follow the advancing credit of the government. +Each of us was in favor of the payment of the interest of bonds in +coin, and the principal, when due, in coin. A large proportion of +national securities were payable in lawful money, or United States +notes. He, by contraction, would have made this payment more +difficult, while I, by retaining the notes in existence, would +induce the holders of currency certificates to convert them into +coin obligations bearing a lower rate of interest. + + +CHAPTER XVII. +INDEBTEDNESS OF THE UNITED STATES IN 1865. +Organization of the Greenback Party--Total Debt on October 31st +amounts to $2,805,549,437.55--Secretary McCulloch's Desire to +Convert All United States Notes into Interest Bearing Bonds--My +Discussion with Senator Fessenden Over the Finance Committee's Bill +--Too Great Powers Conferred on the Secretary of the Treasury--His +Desire to Retire $10,000,000 of United States Notes Each Month-- +Growth of the Greenback Party--The Secretary's Powers to Reduce +the Currency by Retiring or Canceling United States Notes is +Suspended--Bill to Reduce Taxes and Provide Internal Revenue--My +Trip to Laramie and Other Western Forts with General Sherman-- +Beginning of the Department of Agriculture. + +During this period a party sprang up composed of men of all parties +called the Greenback party, who favored an increase of United States +notes, and the payment of all United States bonds and securities +in such notes. This difference of opinion continued until the +resumption of specie payments, in January, 1879. + +I propose to state here the measures adopted in respect to the +national currency and debt during the rest of the administration +of President Johnson. + +The total debt of the United States on the 31st of October, 1865, +was $2,808,549,437.55 in twenty-five different forms of indebtedness +of which, $1,200,000,000 was payable at the option of the Secretary +of the Treasury, or within a brief period. The amount of United +States notes outstanding was then $428,160,569, and of fractional +currency $26,057,469, in all $545,218,038. All of this money was +in active circulation, in great favor among the people, worth in +use as much as national bank notes, and rapidly rising in value +compared with coin. It was the least burdensome form of indebtedness +then existing. The treasury notes and compound interest notes were +in express terms payable in this lawful money, and, therefore, bore +a higher rate of interest than the bonds, which, by their express +terms or necessary implication, were payable in coin only. + +It was insisted that the amount of United States notes was in excess +of what was needed for currency in time of peace and might safely +be gradually reduced. This effort to contract the currency was +firmly resisted by several Senators, myself among them. The Supreme +Court decided that Congress had full power to make these notes a +legal tender. They were far better than any form of currency +previously existing in the United States. During the war, when +the expenditures of the government reached nearly $1,000,000,000 +a year they were indispensable. Those most opposed to irredeemable +paper money acknowledged this necessity. The only objection to +them was that they were not equivalent to coin in purchasing power. +After the war was over, the general desire of all was to advance +these notes nearer to par with coin, but not to withdraw them. +The rising credit and financial strength of the United States would, +it was believed, bring them to par without injustice to the debtor, +but the rapid withdrawal of the notes would add to the burden of +debts and cripple all forms of industry. It would convert the +compound interest notes and treasury notes bearing seven and three +tenths per cent. interest, amounting to over $1,000,000,000 expressly +payable in United States notes, into coin liabilities. The bill +prepared at the treasury department contemplated the conversion of +all United States notes into bonds. In that form the bill was +defeated in the House of Representatives, but it was reconsidered +and an amendment was then made limiting the retirement of notes to +$4,000,000 a month. This gained for the bill enough votes to secure +its passage. Even the withdrawal of $48,000,000 a year was soon +found to be oppressive and was subsequently repealed. + +When this bill came before the committee on finance, I found myself +alone in opposition to it. I could not impress my colleagues of +the committee with the grave importance of the measure, and its +wide-reaching influence upon our currency, debt and credit. They +regarded it simply as a bill to change the form of our securities. +I felt confident that without the use of United States notes we +could not make this exchange. When the bill was brought before +the Senate by Mr. Fessenden, chairman of the committee, he made no +statement of its terms, but only said: + +"I have merely to say that this bill is reported by the committee +on finance without amendment as it came from the House of +Representatives. The committee on finance, on careful examination +of it, came to the conclusion that the bill was well enough as it +stood, and did not deem it advisable to make any amendment. It +has been before the Senate a considerable time, and I presume every +Senator understands it. I ask, therefore, for the question." + +I replied: + +"I regret very much that I differ from the committee on finance in +regard to this bill. This is the only bill on the subject of the +public debt on which I have not been able to concur with that +committee. . . . + +"If Senators will read this bill they will find that it confers on +the Secretary of the Treasury greater powers than have ever been +conferred, since the foundation of this government, upon any +Secretary of the Treasury. Our loan laws, heretofore, have generally +been confined to the negotiation of a single loan, limited in +amount. As the war progressed, the difficulties of the country +became greater, and we were more in the habit of removing the +limitations on the power of the Secretary of the Treasury; but +generally the power conferred was confined to a particular loan +then in the market. This bill, however, is more general in its +terms. This bill authorizes the Secretary of the Treasury to sell +any character of bonds without limit, except as to the rate of +interest. The authority conferred does not limit him to any form +of security. It may run for any period of time within forty years. +He may sell the securities at less than par, without limitation as +to rate. He may sell them in any form he chooses. He may put them +in the form of treasury notes or bonds, the interest payable in +gold or in paper money. He may undertake, under the provisions of +this bill, to fund the whole debt of the United States. The only +limit as to amount is the public debt, now $2,700,000,000. The +power conferred on the Secretary of the Treasury is absolute. It +is not only for this year, or during the current fiscal year, or +for the next year, but it is for all time, until the act shall be +repealed. It gives him absolute power to negotiate bonds of the +United States to the amount of $2,700,000,000, without limiting +the rate at which they shall be sold, and only limiting the rate +of interest inferentially. The description of the bonds in the +act of March 3, 1865, referred to here, would probably limit the +rate of interest to six per cent. in coin, and seven and three- +tenths per cent. in currency; but with this exception there is no +limitation. + +"It seems to me that in the present condition of our finances there +is no necessity for conferring these large powers on the Secretary +of the Treasury. The people are not generally aware of the favorable +condition of our finances. The statement of the public debt laid +on our tables the other day does not show fully the condition of +the finances. It is accurate in amounts, but does not give dates +of the maturity of our debts. But a small portion of the debt of +the United States will be due prior to August, 1867, that will give +the secretary any trouble. But little of the debt which he will +be required to fund under the provisions of this bill matures before +August, 1867. The temporary or call loan, now over one hundred +millions, may readily be kept at this sum even at a reduced rate +of interest. The certificates of indebtedness, amounting to sixty- +two millions, may easily be paid from accruing receipts, or, if +necessary, may be renewed or funded at the pleasure of the secretary. +None of the compound interest notes or the seven-thirty notes mature +until August, 1867. . . . + +"There is, therefore, no immediate necessity for these vast powers. +The question then naturally occurs, why grant them? I have carefully +considered this question, and I do not think there is now any +immediate necessity for granting these powers. No debt is maturing +that is likely to give the government any trouble; and yet we are +now about to confer upon the Secretary of the Treasury, powers that +we cannot, in the nature of things, recall. It is true we may +repeal this law next year, but we know very well that when these +large powers are granted they are very seldom recalled; they are +made the precedents of further grants of powers and are very rarely +recalled. It seems to me that the whole object of the passage of +this bill is to place it within the power of the Secretary of the +Treasury to contract the currency of the country, and thus, as I +think, to produce an unnecessary strain upon the people. This +power I do not think ought to be given to him. The House of +Representatives did not intend to give him this power. They debated +the bill a long time, and it was defeated on the ground that they +would not confer on the secretary this power to reduce the currency, +and finally it was only passed with a proviso contained in the bill +which I will now read: + +'_Provided_, That of United States notes not more than $10,000,000 +may be retired and canceled within six months from the passage of +this act, and thereafter not more than $4,000,000 in any one month.' + +"The purpose of the House of Representatives was, while giving the +secretary power to fund the debt as it matured or even before +maturity, giving him the most ample power over the debt of the +United States, to limit his power over the currency, lest he might +carry to an extreme the view presented by him in his annual report. +If this proviso would accomplish the purpose designed by the House +of Representatives, I would cease all opposition to this bill; but +I know it will not, and for the very obvious reason, that there is +no restraint upon the power of the Secretary of the Treasury to +accumulate legal tender notes in the treasury. He may retire +$200,000,000 of legal tender notes by retaining them in his possession +without cancellation, and thus accomplish the very purpose the +House of Representatives did not intend to allow him to accomplish. +He may sell the bonds of the United States, at any rate he chooses, +for legal tenders, and he may hold those legal tenders in his +vaults, thus retiring them from the business of the country, and +thus produce the very contraction which the House of Representatives +meant to deny him power to do. Therefore, this proviso, which only +limits the power of canceling securities or notes, does not limit +his power over the currency, and he may, without violating this +bill, in pursuance of the very terms of this bill, contract the +currency according to his own good will and pleasure. + +"My own impression is, that the Secretary of the Treasury, in +carrying out his own policy, will do so. He says he will not +contract it unreasonably or too rapidly, but I believe he will +contract the currency in this way. He has now in the vaults of +the treasury $60,000,000 in currency and $62,000,000 in gold--a +larger balance, I believe, than was ever before kept in the treasury +until within the last two or three months; a larger balance than +was ever found in the treasury during the war. What is the object +of accumulating these vast balances in the treasury? Simply to +carry out his policy of contraction. With this power of retaining +in the treasury the money that comes in, what does he care for the +limitation put upon this bill by the House of Representatives? +That says that he shall not retire and cancel more than $10,000,000 +of United States notes within six months, and not more than $4,000,000 +in any one month thereafter; but why need he retire and cancel them +when he can retain them in the vaults of the treasury, and thus +contract the currency? . . . + +"I do not doubt in the least either the integrity or the capacity +of the present incumbent of the treasury department. I have as +much confidence in him as anyone; but this question of the currency +is one that affects so intimately all the business relations of +life, the property of every man in this country, his ability to +pay taxes, his ability to earn food and acquire a living, that no +man ought to have the power to vary the volume of currency. It +ought to be regulated by law, and the law ought to be so fixed and +so defined that every business man may transact his business with +full knowledge of the amount of the currency, with all its limits +and qualifications. I ask you, sir, how any prudent or judicious +man can now engage in any important business, in which he is +compelled to go into debt, with this large power hanging over him. +It would be unsafe for him to do so. The amount of the currency +ought to be fixed by law, whether much or little. There ought to +be a limit, and no man ought to have the power at pleasure to +enlarge or contract that limit. . . . + +"Then there is the further power to reduce the currency, a power +that has not heretofore been granted to any Secretary of the +Treasury. The amount heretofore has been fixed and limited by law. +By the first clause of this bill the secretary is authorized to +receive treasury notes, or United States notes of any form or +description, and there is no limitation to this power, except the +clause which I have read to you. That limits his power to retire +and cancel the United States notes, but not to accumulate the +enormous balances on hand. My own impression has been, and when +this bill was before the committee on finance I believed, it would +be better for that committee to report to the Senate a financial +project to fund the debt of the United States. I believe that now +is the favorable time to do it. If a five per cent. bond, a long +bond of proper description and proper guarantee, was now placed +upon the market, with such ample powers to negotiate it as ought +to be given to the Secretary of the Treasury, such a loan as was +authorized two years ago, at a reduced rate of interest, to be +exempt from taxation, I have no doubt whatever, the Secretary of +the Treasury could fund every portion of the debt of the United +States as it matured. . . . + +"I do not like to embarrass a bill of this kind with amendments, +because I know it is difficult to consider amendments of this sort, +requiring an examination of figures and tables. I have prepared +a bill very carefully, with a view to meet my idea, but I will not +present it now in antagonism to this bill passed by the House of +Representatives and the view taken by the finance committee, because +I know, in the present condition of the Senate, it would not probably +be fully considered. My only purpose now is to point out the fact +that is perfectly clear to the mind of every sensible man who has +examined this bill, that the bill as it stands does not carry out +the manifest intention of the House of Representatives when they +passed it, and that the proviso, limiting the power of the secretary +over the legal tender currency, does not accomplish the purpose +which they designed, and without which I know the bill never could +have passed the House of Representatives." + +Mr. Fessenden: "If the House of Representatives did not understand +what they were doing when they passed this bill, it arises from +the fact that they did not give the rein to their imagination, as +the honorable Senator from Ohio seems to have done to his, and take +it for granted that the Secretary of the Treasury had a purpose to +accomplish, and that he would not hesitate to take any means in +his power to accomplish it, improperly against the manifest will +of Congress, against the interests of the country, and against his +own interests as Secretary of the Treasury." + +I replied: + +"I appeal to the Senator whether that is a fair statement of my +argument?" + +Mr. Fessenden: "That is the way precisely that I understand it." + +I said: + +"That is precisely as no gentleman could have understood me. I +never said that the secretary improperly would do so and so by any +means. It is one of the honorable Senator's modes of stating +propositions." + +Mr. Fessenden: "I certainly did not mean to say that the honorable +Senator supposed he designed to do so, but such seems to be the +result of his argument--that the Secretary of the Treasury having +the power, as he says, there is danger that he might abuse it in +that precise way; else his argument amounts to nothing at all as +against the bill. I certainly acquit my friend of any sort of +desire or intention to throw any imputation on the Secretary of +the Treasury. That he did not mean to do. . . ." + +I said: + +"I do not think it wise to confer on the Secretary of the Treasury +the power to meet the indebtedness not accruing for a year, or two, +or three years. I do not think it is necessary, in our present +financial condition, to authorize him to go into market now and +sell bonds at current market rates with a view to pay debts that +do not mature for a year or two. I have no doubt before the five- +twenty loans are due we shall retire every dollar of them at four +or five per cent. interest. No one who heeds the rapid developments +of new sources of wealth in this country, the enormous yield of +gold now, the renewal of industry in the south, the enormous yield +of cotton, the growing wealth of this country, and all the favorable +prospects that are before us, doubts the ability of this government +before this debt matures to reduce it to four or five per cent. +interest. . . . + +"The Secretary of the Treasury may sell bonds at any rate to meet +debts as they accrue, but that is not the purpose of this bill." + +Mr. Fessenden: "That is all the purpose there is in it." + +I said: + +"Then there is no necessity for it." + +Mr. Fessenden: "Yes, there is. I differ from you." + +I continued: + +"We have here the tables before us. The honorable Senator and I +know when this debt matures. . . . + +"That is the power now given, and he will use the power. He may +think it to his interest to retire the whole of the seven-thirties +or the ten-forties; but is it wise for us to give him that power +now, at the heel of the war and before things have settled down? +I do not think it is. + +"I repeat, I do not wish to call in question the integrity of the +Secretary of the Treasury. The Senator interjects by saying we +must look ahead. I have done so. The difference between us is +that I anticipate that the future of this country will be hopeful, +buoyant, joyous. We shall not have to beg money of foreign nations, +or even of our own people, within two or three years. Our national +debt will be eagerly sought for, I have no doubt. I take a hopeful +view of the future. I do not wish now to cripple the industry of +the country by adopting the policy of the Secretary of the Treasury, +as he calls it, by reducing the currency, by crippling the operations +of the government, when I think that under any probability of +affairs in the future, all this debt will take care of itself. I +believe that if the Secretary of the Treasury would do nothing in +the world except simply sit in his chair, meet the accruing +indebtedness, and issue his treasury warrants, this debt will take +care of itself, and will fund itself at four or five per cent. +before very long. All that I object to in this bill is the power +it gives the Secretary of the Treasury over the currency, to affect +the currency of the country now and to anticipate debts that are +not yet due. . . . + +"That is what I am afraid of, his interference to contract the +currency. The honorable Senator from Maine, however, would seem +to think that I impute to him a wrong motive, and therefore I +corrected him when he made the remark that I seemed to suppose the +secretary was doing this improperly. I think not. The Secretary +of the Treasury informed us that he desired to reduce the currency, +and he has been doing it as far as he could. He has been accumulating +large balances. He was opposed to the proviso which has been +inserted in this bill, and yielded to it only with reluctance. +That is admitted on all hands, and he is not precluded either in +honor or propriety from carrying out his policy if you gave him +the power to do it." + +This bill became a law on the 12th of April, 1866. President +Johnson relied entirely upon McCulloch, and had no opinions upon +financial topics. + +Now, nearly thirty years after the passage of this act, it is +manifest that it was far the most injurious and expensive financial +measure ever enacted by Congress. It not only compelled the United +States to pay the large war rates of interest for many years, but +postponed specie payments until 1879. It added fully $300,000,000 +of interest that might have been saved by the earlier refunding of +outstanding bonds into bonds bearing four or five per cent. interest. +Mr. Fessenden, then chairman of the committee on finance, committed +a grave error in hastily supporting the bill, an error which I +believe he greatly regretted and which, in connection with his +failing health, no doubt led him to resign his position as chairman +of that committee. Although our debate was rather sharp, it did +not disturb our friendly relations. With McCulloch in the treasury +department, nothing could be done. + +If the funding clauses of this act had been limited to the conversion +of compound interest notes, treasury notes bearing interest, +certificates of indebtedness, and temporary loans into bonds +redeemable at the pleasure of the United States after a brief time, +bearing not exceeding five per cent. interest, retaining in +circulation during this process of refunding all the then outstanding +United States notes, the result would have been greatly beneficial +to the United States, but this was not the chief object of the +Secretary of the Treasury. His primary object was to convert United +States notes into interest-bearing bonds, and thus force the +immediate resumption of specie payments or the substitution of +national bank notes for United States notes. The result of his +refunding was largely to increase the amount of six per cent. bonds, +the most burdensome form of security then outstanding. In October, +1865, the amount of six per cent. bonds was $920,000,000; on the +1st of July, 1868, the six per cent. bonds outstanding were +$1,557,844,600. The increase of these bonds under the operation +of this law was thus over $637,000,000. + +The result of this policy of contraction was not only to increase +the burden of the public debt, but it created serious derangement +of the business of the country. It excited a strong popular +opposition to the measures adopted. + +The Greenback party, as it was called, grew out of this policy of +contraction, and for a time threatened to carry the election of a +majority of the Members of Congress. It contended practically for +an unlimited issue of legal tender United States notes, and the +payment of all bonds and securities in United States notes. This, +however, did not disturb Secretary McCulloch. In his annual report +of December 3, 1866, he again urged the policy of a further reduction +of United States notes. He was not satisfied with the reduction +already provided for, and recommended that the reduction should be +increased from $4,000,000 a month, as contemplated by the act of +April 12, 1866, to $6,000,000 a month for the fiscal year, and to +$10,000,000 a month thereafter. He said: + +"The _policy_ of contracting the circulation of the government +notes should be definitely and unchangeably established, and the +_process_ should go on just as rapidly as possible without producing +a financial crisis or seriously embarrassing those branches of +industry and trade upon which our revenues are dependent. That +the policy indicated is the true and safe one, the secretary is +thoroughly convinced. If it shall not be speedily adopted and +rigidly, but judiciously, enforced, severe financial troubles are +in store for us." + +He insisted that the circulation of the country should be further +reduced, not by compelling the national banks to retire their notes, +but by the withdrawal of United States notes. When reminded of +the great saving of interest in the issue of $400,000,000 United +States notes, he answered: + +"Considerations of this nature are more than counterbalanced by +the discredit which attaches to the government by failing to pay +its notes according to their tenor, by the bad influence of this +involuntary discredit upon the public morals, and the wide departure, +which a continued issue of legal tender notes involves, from the +past usages, if not from the teachings of the constitution itself." + +He said: + +"The government cannot exercise powers not conferred by its organic +law or necessary for its own preservation, nor dishonor its own +engagements when able to meet them, without either shocking or +demoralizing the sentiment of the people; and the fact that the +indefinite continuance of the circulation of an inconvertible but +still legal tender currency is so generally advocated indicates +how far we have wandered from old landmarks both in finance and in +ethics." + +The growing opposition of the people at large to the contraction +of the currency seemed to have no effect upon his mind. + +He again recurs to the same subject in his annual report to Congress, +in December, 1867. After stating that the United States notes, +including fractional currency, had been reduced from $459,000,000 +to $387,000,000, and the funded debt had been increased $684,548,800, +he urged as a measure regarded by him as important, if not +indispensable for national prosperity, the funding or payment of +the balance of interest-bearing notes, and a continued contraction +of the paper currency. He urged that the acts authorizing legal +tender notes be repealed, and that the work of retiring the notes +which had been issued under them should be commenced without delay, +and carefully and persistently continued until all were retired. + +This policy of contraction, honestly entertained and persistently +urged by Secretary McCulloch in spite of growing stringency, led +Congress, by the act of February 4, 1868, to suspend indefinitely +the authority of the Secretary of the Treasury to make any reduction +of the currency by retiring or canceling United States notes. + +Who can doubt that if he had availed himself of the power given +him to refund the interest-bearing notes and certificates of the +United States into bonds bearing a low rate of interest, leaving +the United States notes bearing no interest to circulate as money, +he would have saved the government hundreds of millions of dollars? +If irredeemable notes were a national dishonor, why did he not urge +their redemption in coin at some fixed period and then reissue +them, and maintain their redemption by a reserve in coin? + +The act of February 25, 1862, under which the original United States +notes were issued, provided that: + +"Such United States notes shall be received the same as coin, at +their par value, in payment for any loans that may be hereafter +sold or negotiated by the Secretary of the Treasury, and may be +reissued from time to time as the exigencies of the public interest +shall require." + +This provision would have maintained the parity of United States +notes at par with bonds, but under the pressure of war it was deemed +best by Congress, upon the recommendation of Secretary Chase, to +take from the holder of United States notes the right to present +them in payment for bonds after the first day of July, 1863. If +this privilege, conferred originally upon United States notes, had +been renewed in 1866, with the right of reissue, bonds and notes +would together have advanced to par in coin. But this is what the +contractionists especially opposed. They demanded the cancellation +of the notes when presented, a contraction of the currency when +offering our bonds. It is easy now to perceive that a conservative +use of United States notes, convertible into four per cent. bonds, +would have steadily advanced both notes and bonds to par in coin. +But the equally erroneous opposing opinions of contractionists and +expansionists delayed for many years the coming of coin resumption +upon a fixed quantity of United States notes. + +Among the acts of this Congress of chief importance is the act +approved July 13, 1866, to reduce taxes and provide internal revenue. +The passage of such an act required much labor in both Houses, but +especially so in the House of Representatives, where tax bills must +originate. It was a compromise measure, and, unlike previous acts, +did not reach out for new objects of taxation, but selected such +articles as could bear it best, and on some of these the tax was +increased. A great number of articles that enter into the common +consumption of the people and are classed as necessities of life +were relieved from taxation. The general purpose of the bill was +in time to concentrate internal taxes on such articles as spirits, +tobacco and beer. The tax on incomes was continued but limited to +the 30th of June, 1870. I have already stated the marked development +of internal taxation, and this measure was one of the most important +in the series to produce great revenue at the least cost, and of +the lightest burden to the taxpayer. + +Soon after the passage of the act, approved April 12, 1866, to +contract the currency, I introduced a bill, "To reduce the rate of +interest on the national debt and for funding the same." In view +of the passage of that act I did not expect that a funding bill +would meet with success, but considered it my duty to present one, +and on the 22nd of May, 1866, made a speech in support of it. The +bill provided for the voluntary exchange of any of the outstanding +obligations of the United States for a bond running thirty years, +but redeemable at the pleasure of the United States after ten years +from date, bearing interest at the rate of five per cent., payable +annually. On reading that speech now I find that, though I was +much more confident than others of converting our maturing securities +into five per cent. bonds, the general opinion then prevailing, +and acted upon by the Secretary of the Treasury, was to issue six +per cent. bonds as already stated. I soon found that it was idle +to press the funding bill upon Congress, when it was so much occupied +with reconstruction and with Andrew Johnson. The refunding and +many other measures had to be postponed until a new administration +came into power. Congress had unfortunately authorized the issue +of six per cent. bonds for accruing liabilities, and thus postponed +refunding at a lower rate of interest. + +The long and exciting session of Congress that ended on the 28th +day of July, 1866, left me in feeble strength and much discouraged +with the state of affairs. I had arranged with General Sherman to +accompany him in an official inspection of army posts on the western +plains, but did not feel at liberty to leave Washington until +Congress adjourned. The letter I wrote him on the 8th of July +expresses my feelings as to the political situation at that time: + + "United States Senate Chamber,} + "Washington, July 8, 1866. } +"Dear Brother:--It is now wise for you to avoid all expressions of +political opinion. Congress and the President are now drifting +from each other into open warfare. Congress is not weak in what +it has done, but in _what it has failed to do_. It has adopted no +unwise or extreme measures. The civil rights bill and constitutional +amendments can be defended as reasonable, moderate, and in harmony +with Johnson's old position and yours. As Congress has thus far +failed to provide measures to allow legal Senators and Representatives +to take their seats, it has failed in a plain duty. This is its +weakness, but even in this it will have the sympathy of the most +of the soldiers, and the people who are not too eager to secure +rebel political power. As to the President, he is becoming Tylerized. +He was elected by the Union party for his openly expressed radical +sentiments, and now he seeks to rend to pieces this party. There +is a sentiment among the people that this is dishonor. It looks +so to me. What Johnson is, is from and by the Union party. He +now deserts it and betrays it. He may varnish it up, but, after +all, he must admit that he disappoints the reasonable expectations +of those who intrusted him with power. He may, by a coalition with +copperheads and rebels, succeed, but the simple fact that nine- +tenths of them who voted for him do not agree with him, and that +he only controls the other tenth by power intrusted to him by the +Union party, will damn him forever. Besides, he is insincere; he +has deceived and misled his best friends. I know he led many to +believe he would agree to the civil rights bill, and nearly all +who conversed with him until within a few days believed he would +acquiesce in the amendments, and even aid in securing their adoption. +I almost fear he contemplates civil war. Under those circumstances +you, Grant and Thomas ought to be clear of political complications. +As for myself, I intend to stick to finance, but wherever I can I +will moderate the actions of the Union party, and favor conciliation +and restoration. + + "Affectionately yours, + "John Sherman." + +After the adjournment I proceeded to St. Louis, and with General +Sherman and two staff officers, went by rail to Omaha. This handsome +city had made great progress since my former visit. We then went +by the Central Pacific railroad to Fort Kearney, as far as the +rails were then laid. There our little party started through the +Indian Territory, riding in light wagons with canvas covers, each +drawn by two good army mules, escorted by a squad of mounted +soldiers. We traveled about thirty miles a day, camping at night, +sleeping in our wagons, turned into ambulances, the soldiers under +shelter tents on blankets and the horses parked near by. The camp +was guarded by sentinels at night, and the troopers lay with their +guns close at hand. Almost every day we met Indians, but none that +appeared to be hostile. In this way we traveled to Fort Laramie. +The country traversed was an unbroken wilderness, in a state of +nature, but singularly beautiful as a landscape. It was an open +prairie, traversed by what was called the North Platte River, with +scarcely water enough in it to be called a creek, with rolling +hills on either side, and above, a clear sky, and air pure and +bracing. It was the first time I had been so far out on the plains, +and I enjoyed it beyond expression. I was soon able to eat my full +share of the plain fare of bread and meat, and wanted more. + +After many days we reached Fort Laramie, then an important post +far out beyond the frontier. We remained but a few days, and then, +following south along the foot hills, we crossed into the Laramie +plains to Fort Sanders. This was the last post to the west in +General Sherman's command. From thence we followed the course of +the Cache la Poudre. On the way we camped near a station of the +Overland Stage Company, for change of horses and for meals, in a +charming and picturesque region. The keeper of the station soon +called and inquired for me, and I found that he was a former resident +of Mansfield, who married the daughter of an old friend. He invited +our party to his house, and there I met his wife, who, in this +region without any neighbors or habitations near, seemed to be +perfectly happy and fearless, though often disturbed by threatened +Indian outbreaks. We were handsomely entertained. It was a great +relief to sleep one night in a comfortable bed, after sleeping for +many nights with two in a narrow wagon. We then proceeded to +Greeley, where we found a small settlement of farmers. From thence +to Denver, we found a few cabins scattered over a vast open plain +stretching as far as the eye could reach to the east, with the +mountains on the west rising in grandeur and apparently presenting +an insurmountable barrier. I have seen many landscapes since that +were more bold and striking, but this combination of great mountains +and vast plains, side by side, made an impression on my mind as +lasting as any natural landscape I have seen. + +At Denver, General Sherman and I were handsomely entertained by +the citizens, many of whom General Sherman knew as soldiers under +his command during the war, and some of whom I knew as former +residents of Ohio. They were enthusiastic in their praise of +Colorado. It seemed to me the air was charged with a superabundance +of ozone, for everyone was so hopeful of the future of Denver, that +even the want of rain did not discourage them and some of them +tried to convince me that irrigation from the mountains was better +than showers from the sky. Denver was then a town of less than +5,000 inhabitants and now contains more than 110,000. Colorado +had less than 50,000 inhabitants in 1870, and in 1890 it had 412,198, +an increase of nearly ten fold in twenty years. But this marvelous +growth does not spring from the invigorating air and flowing springs +of Colorado, but from the precious metals stored in untold quantities +in her mountains. From Denver General Sherman had to continue his +inspection to the southern posts, and I was called home to take +part in the pending canvass. I started in a coach peculiar to the +country, with three or four passengers, over a distance of about +four hundred miles to Fort Riley, in Kansas. We had heard of many +Indian forays on the line we were to travel over and there was some +danger, but it was the only way to get home. Each of the passengers, +I among the number, had a good Winchester rifle, with plenty of +ammunition. The coach was a crude rattle-trap, noisy and rough, +but strong and well adapted to the journey. It was drawn by four +horses of the country, small but wiry. We had long reaches between +changes. The stations for meals had means of defense, and the food +set before us was substantial, mainly buffalo beef, chickens and +bread. A good appetite (always a sure thing on the plains) was +the best sauce for a substantial meal, and all the meals were +dinners with no change of courses. We saw on the way many evidences +of Indian depredations, one of which was quite recent, and two or +three settlers had been killed. We met no Indians on the way, but +we did meet myriads of buffaloes, scattered in vast herds to the +north and south of us as far as the eye could reach. It is sad to +reflect that all these animals have been exterminated, mainly in +wanton sport by hunters who did not need their flesh for food or +their hides for leather or robes. This destruction of buffaloes +opened the way for herds of domestic cattle, which perhaps in equal +numbers now feed upon the native grass of the prairies. + +In a recent visit to western Nebraska and South Dakota, I saw these +cattle in great numbers in good condition, cheaply cared for and +sold for four cents a pound on the hoof. The owners of these cattle +purchased land from settlers who had acquired title under the +homestead or pre-emption laws, as suitable sites for ranches, +including a permanent lake or pond for each, an indispensable +requisite for a ranch. This being secured, they built houses to +live in and sheds for the protection of their cattle in winter, +and thus obtained practical possession, without cost or taxes, of +all the government land needed for their ranges. Sad experience +has convinced settlers in all the vast rainless region of the west, +that they cannot produce grain with any certainty of harvesting a +crop, and thousands who have made the experiment in western Kansas +and Nebraska and in eastern Colorado and Wyoming have recently +abandoned their improvements and their claims. It seems now that +this part of our country must be given up to the herders of cattle. +The Indians and buffaloes have disappeared and the "cowboys" and +domestic cattle and horses have taken their place, to give way, no +doubt, in time, to the farmer, when the water will be drawn from +the earth by artesian wells, and life and vitality will thus be +given to a soil as rich as the Kansas valley. + +We reached the end of our stage ride at Fort Riley, and were glad +to enter into the cars of the Kansas Pacific railroad, though they +were as dirty and filthy as cars could well be. All this has been +changed. Now the ride over the plains from Kansas City to Denver +can be made, in a comparatively few hours, in comfort and safety. + +I returned to Ohio to take my usual part in the canvass in the fall +of 1866, and returned to Washington in time for the meeting of +Congress on the first Monday in December. + +Prior to 1862 but little attention was given by Congress to the +greatest and most important industry of mankind, that of agriculture. +This is especially true of the United States, where the majority +of its inhabitants are engaged in farming. Agriculture has furnished +the great body of our exports, yet this employment had no representative +in any of the departments except a clerk in the Patent Office. +The privileges granted by that bureau to inventors had no relation +to work on the farm, though farming was greatly aided by invention +of farm implements during the period of the war, when a million of +men were drawn from their occupations into the army. This anomaly +led to the passage, on the 15th of May, 1862, of the act to establish +the department of agriculture. Though called a department its +chief officer was a commissioner of agriculture, who was not for +many years a member of the cabinet. The first commissioner, Isaac +Newton, appointed by Lincoln, was a peculiar character, a Quaker +of Philadelphia, a gardener rather than a farmer, but he was an +earnest and active officer. The appropriations for his department +were very small, but enabled him to distribute valuable seeds and +cuttings, which were in great demand and of real service to farmers. +I early took an active part in promoting his efforts and especially +in producing him appropriations and land where he could test his +experiments. He applied for authority to use that portion of +Reservation No. 2 between 12th and 14th streets of the mall in +Washington, then an unsightly waste without tree or shrub, but he +was notified that the use of it was essentially necessary to the +war department as a cattle yard. When the war was over Congress +appropriated it for the use of his department. He took possession +of it about the middle of April, 1865, and, though the ground was +an unbroken soil of tenacious clay, he fertilized and pulverized +a part of it and planted a great variety of seeds for propagation, +and covered the remaining portions of it with grass and cereals. +His reports increased in interest and were in great demand. His +office work was done in inconvenient parts of the Patent Office, +and the necessity of better accommodations was constantly pressed +upon Members of Congress. I took an active interest in the subject, +and offered an amendment to the civil appropriation bill to +appropriate $100,000 for a suitable building for the department of +agriculture on the reservation mentioned. There was a disposition +in the Senate to ridicule Newton and his seeds, and Mr. Fessenden +opposed the appropriation as one for an object not within the +constitutional power of Congress. The amendment, however, was +adopted on the 28th day of February, 1867. Newton died on the 19th +of June of that year, but on the 22nd of August, John W. Stokes, +as acting commissioner, entered into a contract for the erection +of the building, and Horace Capron, as commissioner, completed the +work within the limits of his appropriation, a rare result in the +construction of a public building. The building is admirably +adapted for the purposes designed. The unsightly reservation has +been converted by Mr. Capron and his successors in office into one +of the most beautiful parks in Washington. The department of +agriculture is now represented in the cabinet, and in practical +usefulness to the country is equal to any of the departments. + + +CHAPTER XVIII. +THREE MONTHS IN EUROPE. +Short Session of Congress Convened March 4, 1867--I Become Chairman +of the Committee on Finance, Succeeding Senator Fessenden--Departure +for Europe--Winning a Wager from a Sea Captain--Congressman Kasson's +Pistol--Under Surveillance by English Officers--Impressions of John +Bright, Disraeli and Other Prominent Englishmen--Visit to France, +Belgium, Holland and Germany--An Audience with Bismarck--His Sympathy +with the Union Cause--Wonders of the Paris Exposition--Life in +Paris--Presented to the Emperor Napoleon III and the Empress Eugenie +--A Dinner at the Tuileries--My Return Home--International Money +Commission in Session at Paris--Correspondence with Commissioner +Ruggles--His Report--Failure to Unify the Coinage of Nations-- +Relative Value of Gold and Silver. + +During the last session of the 39th Congress the relations between +President Johnson and Congress became such that it was deemed +advisable to provide by law for a session of the new Congress on +the 4th of March, 1867, that being the commencement of the term +for which the Members were elected. + +The law, in my opinion, ought to be a permanent one, so that the +will of the people, as evidenced by the elections, may be promptly +responded to. But such was not the purpose of this act. The reason +was that, under the claim of authority made by the President, there +was a fear that he might recognize the states in insurrection before +they had complied with the conditions prescribed by law for +reconstruction. + +In pursuance of this law the 40th Congress met on the day named. + +I took the oath as Senator, my colleague, Benjamin F. Wade, president +_pro tem._ of the Senate, administering it. I became chairman of +the committee on finance by the voluntary retirement of Mr. Fessenden. +I knew this had been his purpose during the session just closed. +He complained of his health, and that the confinement and labor of +the position he held added to his infirmity. At the same time it +was agreed that the duties of the committee should be divided by +referring all appropriations to a committee on appropriations, and +I was to choose between the two committees. The House of +Representatives had already divided the labors of the committee of +ways and means, a corresponding committee to that on finance, among +several committees, and the experiment had proved a success. I +preferred the committee on finance, and remained its chairman until +I became Secretary of the Treasury. Mr. Fessenden took the easy +and pleasant position of chairman of the committee on public +buildings and grounds, and held that position until he died in +September, 1869. I have already expressed my opinion of his +remarkable ability as a debater and as a statesman of broad and +conservative views. His only fault was a hasty temper too often +displayed, but as often regretted by him. + +Congress adjourned on the 30th of March, to meet again on the 3rd +of July. The Senate was called to a special session by proclamation +of the President on the 1st day of April, 1867. It remained in +session until the 20th of April and then adjourned _sine die_. + +I did not remain until the close of the session, but about the 10th +of April sailed from New York for Europe in the steamer "City of +Antwerp." I went for needed rest, a change of air and scene, and +had in view, as one of the attractions of the voyage, a visit to +the exposition at Paris in that year. My associates on the ocean +were Colonel Morrow, United States Army, and John A. Kasson, Member +of Congress from Iowa, and we remained together until I left London. + +I had no plan, route or business, except to go where I drifted with +such companions as I met. The only limitation as to time was the +duty of returning to meet the adjourned session of the Senate in +July. I have no memoranda in respect to the voyage and preserved +no letters about it. Still, the principal scenes and events are +impressed on my mind and I will narrate them as I now recall them. + +The passage on the ocean was a favorable one. We had some rain +but no winds that disturbed my digestion. But few on the vessel +were seasick, and these mainly so from imagination. The captain, +whose name I do not recall, was a jolly Englishman, but a careful, +prudent and intelligent officer. I sat by his side at his table. +After leaving port we soon took our places at table for our first +meal on board. He inquired of me if I was a good sailor. I told +him I would be as regular in my attendance at meals as he. He +laughed and said he would like to wager some wine on that. I +cheerfully accepted his bet, and, true to my promise, I did not +miss a meal during the voyage, while he three or four times remained +at his post on deck when the air was filled with fog or the waves +were high. He paid the bet near the end of the voyage, and a number +of his passengers, including Morrow and Kasson, shared in the treat. + +I can imagine no life more pleasing than a tranquil, but not too +tranquil, sea, with a good ship well manned, with companions you +like, but not too many. The quiet and rest, the view of the ocean, +the sense of solitude, the possibility of danger, all these broken +a little by a quiet game of whist or an interesting book--this I +call happiness. All these I remember to have enjoyed on this, my +fifth trip on the ocean. + +In due time we arrived at Queenstown in Ireland. It was about the +time a party of Irishmen, in some town in England rescued some of +their countrymen from a van in charge of English constables, one +or more of whom were killed or wounded. Morrow, Kasson and I +concluded we would spend a few days in "Ould Ireland." Morrow and +Kasson believed they were of Irish descent, though remotely so as +their ancestors "fought in the Revolution." We remained in and +about Cork for two or three days. We visited and kissed the Blarney +Stone, saw the Lakes of Killarney, and drove or walked about the +interesting environs of Cork and Queenstown. We sought no acquaintance +with anyone. + +We were all about the age of forty, physically sound, and both +Morrow and Kasson had the military air and step of soldiers. We +soon became conscious that we were under surveillance. One day an +officer called at our lodgings and frankly told us that there was +so much excitement about Fenian disturbances in England, and such +political ferment in Ireland, that an examination of the baggage +of passengers was required and he wished to examine ours. I told +him who we were, and introduced him to Morrow and Kasson, and +offered my trunk for inspection. They did the same, Kasson producing +also a small pistol from his valise. The officer had heard of that +pistol. Kasson had fired it at the birds hovering about the vessel. +This had been reported to the police. The officer took the pistol +and it was returned to Kasson some days after at Dublin. Morrow +ridiculed the pistol and told the officer that Kasson could not +hit or hurt him at ten paces away, but the officer was only half +satisfied. We soon after went to Dublin, but we felt that we were +under suspicion. All Americans were then suspected of sympathizing +with the Irish. We told our consul at Dublin of our adventures at +Cork, and he said we were lucky in not being arrested. We went to +a steeple chase a few miles from Dublin, where gentlemen rode their +own horses over a long and difficult route, leaping barriers and +crossing streams. We enjoyed the scene very much and mingled freely +in the great crowd, but always feeling that we were watched. The +next day we started to cross the channel to Holyhead. + +We took the steamer at Dublin Bay and found aboard a large company +of well-dressed passengers, such as we would find on a summer +excursion from New York. Morrow, who was a handsome man of pleasing +manners and address, said he could pick out Americans from the +crowd. I doubted it. He said: "There is an American," pointing +out a large, well-built man, who seemed to be known by the passengers +around him. I said he was an Englishman. Morrow stepped up to +him and politely said that he had a wager with a friend that he +was an American. "Not by a d----d sight," replied the Englishman. +Morrow apologized for the intrusion, but the gentleman changed his +tone and said that his abrupt answer was caused by a letter he had +lately received from a nephew of his whom he had sent to America +to make his fortune. His nephew had written him now that the rebels +were put down, the next thing to do would be to put down "old +England." Morrow said there was too much of that kind of gasconade +in America, and that after our desperate struggle at home we would +not be likely to engage in one with England. + +We arrived safely in London. In my first visit in 1859, with my +wife, we were sight-seers. Now I sought to form acquaintance with +men whose names were household words in all parts of the United +States. By the courtesy of our consul general at Liverpool, Thomas +H. Dudley, I met John Bright, Disraeli, and many others less +conspicuous in public life. I have already mentioned my breakfast +with Gladstone during this visit. Mr. Dudley, then in London, +invited Mr. Bright to a dinner as his principal guest. Of all the +men I met in London, Mr. Bright impressed me most favorably. Finely +formed physically, he was also mentally strong. He was frank and +free in his talk and had none of the hesitation or reserve common +with Englishmen. He was familiar with our war and had no timidity +in the expression of his sympathy for the Union cause. If we ever +erect a monument to an Englishman, it should be to John Bright. +I heard Disraeli speak in the House of Commons and was introduced +to him at a reception at Lord Stanley's. In the ten days I spent +in London I saw as much of social life as could be crowded into +that time. Charles Francis Adams was then United States minister +at London, and I am indebted to him for many acts of kindness. +When we were Members of the House of Representatives together he +had the reputation of being cold and reserved and he was not popular +with his fellow Members, but in London he was distinguished for +his hospitality to Americans. He certainly was very kind to me, +entertaining me at dinner and taking pains to introduce me to many +peers and members whose names were familiar to me. While receptions +are very common in London during the session, the Englishman prefers +dinners as a mode of entertainment. It is then he really enjoys +himself and gives pleasure to his guests. The sessions of parliament, +however, interfere greatly with dinners. The great debates occur +during dining hours, so that, as Mr. Adams informed me, it was +difficult to arrange a dinner that would not be broken up somewhat +by an unexpected debate, or a division in the House of Commons. +The precedence of rank had to be carefully observed. The unsocial +habit of not introducing guests to each other tended to restrain +conversation and make the dinner dull and heavy. Still the forms +and usages in social life in London are much like those in Washington. +But here the ordinary sessions of each House of Congress terminate +before six o'clock, leaving the evening hours for recreation. + +The presidential mansion is the natural resort of all who visit +Washington. The doors are always open to visitors at stated hours, +and the President is easy of access to all who call at such hours. +Formerly presidential receptions were open to all comers, and the +result was a motley crowd, who formed in line and shook hands with +the President, bowed to the attending ladies, passed into the great +east room and gradually dispersed. In late years these receptions +have become less frequent, and in their place we have had diplomatic, +military and navy, and congressional receptions, for which invitations +are issued. During the usual period before Lent card receptions +are given by the cabinet, by many Senators and Members, and by +citizens, for which invitations are issued. I know of no place +where the entrance into society is so open and free as in +Washington. + +From London I went, by way of Dieppe and Rouen, to Paris, where my +first call was on General Dix and his family. Next I visited the +exposition, and wandered through and about and around it. I have +attended many exhibitions, but never one before or since that +combined such magnitude and completeness in size, form and location, +and such simplicity in arrangement and details, as the Paris +Exposition of 1867. I spent ten days in this inspection, and in +walking and driving around Paris and its environs. Through the +kindness of General Dix, then envoy extraordinary and minister +plenipotentiary, I received invitations to many meetings and +receptions given by Mayor Haussman and other officers of the French +government to visitors from abroad connected with the exposition. +I accepted some of them, but purposely postponed this social part +of my visit until I returned from Berlin. + +From Paris I went to Antwerp via Brussels. At this latter place +I met Doctor John Wilson, then United States consul at Antwerp. +He was an old friend at Washington, where he served during the +greater part of the war as an army surgeon. He was a man of +remarkable intelligence, familiar with nearly every part of Europe, +and especially with France, Belgium and Prussia. He readily +acquiesced in my invitation to accompany me to Berlin. On the +invitation of Henry S. Sanford, our minister to Brussels, I returned +to that city, and met at dinner the principal officers of Belgium, +such as we designate cabinet ministers. I drove with Mr. Sanford +to Waterloo and other famous historic places in and about that +beautiful city. + +From Brussels we went to the Hague, where General Hugh Ewing, a +brother-in-law of General Sherman, was United States minister. +After a brief stay in Holland, General Ewing, Doctor Wilson and +myself went to Berlin. Prussia was then a kingdom of rising power, +and Berlin was a growing city, but not at all the Berlin of to-day. +Bismarck was recognized as a great statesman and, although far less +prominent than he afterwards became, he was the one man in Germany +whom I desired to see or know. Mr. Joseph A. Wright, late United +States minister at Berlin, had recently died, and his son, John C. +Wright, who was in charge of the legation, had no difficulty in +securing me an audience with Bismarck, accompanying me to the +official residence, where I was introduced to him. Bismarck spoke +English with a German accent, but was easily understood. When I +spoke of recent events in Europe he would turn the conversation to +the United States, asking me many questions about the war and the +principal generals in the opposing armies. He was in thorough +sympathy with the Union cause, and emphatically said that every +man in Prussia, from the king to his humblest subject, was on the +side of the Union, and opposed to the Rebellion. What a pity, he +said, it would have been if so great a country as the United States +had been disrupted on account of slavery. I mentioned my visit to +the international fair at Paris and my intention to return, and he +said he would be there. + +This interview, which lasted, perhaps, forty minutes, was as informal +and frank as the usual conversation of friends. Bismarck was then +in full health and strength, about fifty years old, more than six +feet high, and a fine specimen of vigorous manhood in its prime. + +I found the same feeling for the United States expressed by a +popular meeting in the great exposition hall in Berlin. Our little +party was escorted to this place on Sunday afternoon by Mr. Kreismann, +our consul at Berlin. As we entered the hall, Mr. Kreismann advanced +to the orchestra, composed of several military bands, and said +something to the leader. When we took our seats at one of the +numerous tables he told me to pay attention after the first item +of the second part of the programme before me, and I would hear +something that would please me. At the time stated, a young man +advanced to the front of the stage, with a violin in his hand, and +played exquisitely the air "_Yankee Doodle Is the Tune_," and soon +after the entire band joined in, filling the great hall with American +music. The intelligent German audience, many of whom knew the +national airs of all countries, realized at once that this addition +to the programme was a compliment to the Americans. They soon +located our little party and then rose, and fully two thousand +persons, men, women and children, waved their handkerchiefs and +shouted for America. + +The feeling in favor of the United States was then strong in all +parts of Europe, except in France and England. In these countries +it was somewhat divided--in France by the failure of Maximilian, +and in England by the rivalry of trade, and sympathy with the south. +Generally, in referring in Europe to the people of the United +States, the people speak of us as Americans, while those of other +parts of America are Canadians, Mexicans, etc. + +After a pleasant week in Berlin I went by way of Frankfort, Wiesbaden +and Cologne to Paris. The exposition was then in full operation. +It may be that greater numbers attended the recent exposition at +Chicago, but, great as was its success, I think, for symmetry, for +plans of buildings, and arrangement of exhibits, the fair at Paris +was better than that at Chicago. The French people are well adapted +for such exhibits. The city of Paris is itself a good show. Its +people almost live out of doors six months of the year. They are +quick, mercurial, tasteful and economical. A Frenchman will live +well on one-half of what is consumed or wasted by an American. I +do not propose to describe the wonderful collection of the productions +of nature or the works of men, but I wish to convey some idea of +life in Paris during the thirty days I spent in it. + +Louis Napoleon Bonaparte was then Emperor of the French, and Haussman +was mayor of the city of Paris. General Dix, as before stated, +was United States minister plenipotentiary and envoy extraordinary +at the court of France. Upon my arrival, I hired what in Paris is +called an apartment, but which includes several rooms, comprising +together a comfortable residence. Many similar apartments may be +in the same building, but with them you need have no communication, +and you are detached from them as fully as if each apartment was +a separate house. The concierge, generally a woman, takes charge +of your room, orders your breakfast if you require one, and keeps +the key of your apartment when you are absent. It is a charming +mode of living. You can dine or lunch when you will, and are master +of your time and your apartment. I employed a neat, light carriage +and one horse, with a driver who knew a smattering of several +languages, and found him trusty and faithful--all this at a cost +that would disgust the ordinary hotel proprietor in the United +States, and especially the hack driver of any of our cities. This, +in Paris, was the usual outfit of a gentleman. + +General Dix advised me on whom and when and how I should make my +calls. My card in the usual form announced that I was "Sénateur +des États Unis d'Amérique." A Parisian could not pronounce my name. +The best he could do was to call me "Monsieur le Sénateur." With +a few words of French I acquired, and the imperfect knowledge of +English possessed by most French people, I had no difficulty in +making my way in any company. I received many invitations I could +not accept. I attended a reception at the Palais Royal, the +residence of the mayor, dressed in the ordinary garb for evening +parties, a dress coat and trousers extending to the knees, and +below black silk stockings and pumps. I felt very uncomfortable +in this dress when I entered the reception room, but, as I found +every gentleman in the same dress, we become reconciled to it. +Subsequently I attended a reception at the Tuileries, at which I +was presented by General Dix to the emperor and empress. + +One feature of this presentation I shall always remember. The +general company had been gathered in the great hall. The diplomatic +representatives of many countries were formed in line according to +their rank, attended by the persons to be presented. Soon a door +was opened from an adjoining room and the Emperor of the French, +escorting, I think, the Empress of Russia, passed along the line +and saluted the ambassadors and ministers in their order, and the +ladies and gentlemen to be presented were introduced by name to +the emperor. General Dix presented Fernando Wood, of New York, +and myself. Following the French emperor came the Emperor of Russia +escorting the Empress Eugenie of France, and the same mention of +our names was made to her. Following them came kings, the Prince +of Wales and others of like rank, each accompanied by distinguished +peers of his country. Third or fourth in this order came the King +of Prussia, Prince Bismarck, and General Von Moltke. When Bismarck +passed he shook hands with Dix and recognized me with a bow and a +few words. If the leaders in this pageant could have foreseen what +happened three years later--that King William would be an emperor, +that Bonaparte would be his prisoner and Eugenie a refugee from +republican France--the order of the march would have been reversed. + +Soon after this reception, I was invited by the emperor to attend, +with General Dix and his daughter, a dinner at the Tuileries. Such +an invitation is held to be in the nature of a command. I accompanied +them, and was agreeably surprised to find that the dinner was quite +informal, though more than forty sat at table. When I entered the +room one of the ladies in waiting came to me and introduced me to +a lady whom I was to escort to the table. Presently she returned +and said: "Oh, I understand monsieur does not speak French, and +marquise does not speak English. Will monsieur allow me to be a +substitute?" I agreed with great pleasure. Both the guests and +the hosts were promptly on time. I was introduced to the emperor +and empress. She was very gracious to her guests, passing from +one to another with a kindly word to all. I noticed her greeting +to Miss Dix was very cordial. The emperor engaged in a conversation +with me that continued until the dinner was announced,--fully ten +minutes. He asked many questions about the war, and especially +about General Sherman. I answered his questions as I would to any +gentleman, but felt uneasy lest I was occupying time that he should +bestow on others. General Dix was by my side, and encouraged the +conversation. When the dinner was announced each guest knew his +place from the card furnished him, and the party was seated without +confusion. + +I need not say that the young lady I escorted was a charming woman. +I did not learn whether she was married or not, but have always +regarded her action in relieving me from a silent dinner as the +highest mark of politeness. She was bright and attractive, and I +certainly did and said all I could to amuse her, so what I expected +to be a dull dinner turned out to be a very joyful one. + +It is impossible for an American to visit Paris without enjoyment +and instruction. The people of Paris are always polite, especially +to Americans. The debt of gratitude for the assistance of France +in our War of the Revolution is never forgotten by a true American, +and Frenchmen are always proud of their share in establishing the +independence of America. The two Bonapartes alone did not share +in this feeling. The Americans are liberal visitors in Paris. +They spend their money freely, join heartily in festivities, and +sympathize in the success and prosperity of the French republic. +If I was not an American I certainly would be a Frenchman. I have +visited Paris three times, remaining in it more than a month at +each visit, and always have been received with civility and kindness. +Though it is a great manufacturing city, chiefly in articles of +luxury requiring the highest skill, yet it is also a most beautiful +city in its location, its buildings, public and private, its museums +and opera houses, its parks and squares, its wide streets and +avenues, and especially the intelligence of its people. Science +and art have here reached their highest development. We may copy +all these, but it will require a century to develop like progress +in America. + +I returned to England for a few days and then took the steamer +"City of Paris" for New York, where I arrived on the 13th of July. +I took the cars for Washington and arrived ten days after the +session had commenced. + +While I was in Paris a special international commission, composed +of delegates from seventeen nations, was sitting to consider, and, +if possible, agree on a common unit of money for the use of the +civilized world. Mr. Samuel B. Ruggles, a gentleman of the highest +standing and character, was the representative of the United States +on this commission. It should be remembered that at this time the +only currency in circulation in the United States was the legal +tender notes of the United States and the notes of national banks. +Neither gold nor silver coin was in circulation, both being at a +premium in currency. At this time silver bullion was at a premium +over gold bullion, the legal ratio being sixteen to one. In other +words, sixteen ounces of silver were worth, in the open market, +three to five cents more than one ounce of gold. All parties in +the United States were then looking forward to the time when United +States notes would advance in value to par with gold, the cheaper +metal. + +The question before the commission was how to secure a common coin +that would be the measure of value between all nations, and thus +avoid the loss by exchange of the coins of one nation for those of +another. Mr. Ruggles knew that I had studied this question, and +therefore wrote this letter: + + "Paris, May 17, 1867. +"My Dear Sir:--You are, of course, aware that there is a special +committee now in session, organized by the Imperial Commission of +France, in connection with the 'Paris Exposition,' composed of +delegates from many of the nations therein represented. Its object, +among others, is to agree, if possible, on a common unit of money, +for the use of the civilized world. + +"I perceive that the opinions of the committee are running strongly +in favor of adopting, as the unit, the existing French five-franc +piece of gold. + +"May I ask what, in your opinion, is the probability that the +Congress of the United States, at an early period, would agree to +reduce the weight and value of our gold dollar, to correspond with +the present weight and value of the gold five-franc piece of France; +and how far back such a change would commend itself to your own +judgment? + +"I would also ask the privilege of submitting your answer to the +consideration of the committee. + + "With high respect, faithfully your friend, + "Samuel B. Ruggles, + "U. S. Commissioner to the Paris Exposition and Member of the + Committee. +"Hon. John Sherman, + "Chairman of the Finance Committee of the Senate of the United + States, etc., etc., etc., now in Paris." + +To this letter I made the following reply: + + "Hotel Jardin des Tuileries, May 18, 1867. +"My Dear Sir:--Your note of yesterday, inquiring whether Congress +would probably, in future coinage, make our gold dollar conform in +value to the gold five-franc piece, has been received. + +"There has been so little discussion in Congress upon the subject +that I cannot base my opinion upon anything said or done there. + +"The subject has, however, excited the attention of several important +commercial bodies in the United States, and the time is now so +favorable that I feel quite sure that Congress will adopt any +practical measure that will secure to the commercial world a uniform +standard of value and exchange. + +"The only question will be, how can this be accomplished? + +"The treaty of December 23, 1865, between France, Italy, Belgium, +and Switzerland, and the probable acquiescence in that treaty by +Prussia, has laid the foundation for such a standard. If Great +Britain will reduce the value of her sovereign two pence, and the +United States will reduce the value of her dollar something over +three cents, we then have a coinage in the franc, dollar and +sovereign easily computed, and which will readily pass in all +countries; the dollar as five francs and the sovereign as 25 francs. + +"This will put an end to the loss and intricacies of exchange and +discount. + +"Our gold dollar is certainly as good a unit of value as the franc; +and so the English think of their pound sterling. These coins are +now exchangeable only at a considerable loss, and this exchange is +a profit only to brokers and bankers. Surely each commercial nation +should be willing to yield a little to secure a gold coin of equal +value, weight, and diameter, from whatever mint it may have been +issued. + +"As the gold five-franc piece is now in use by over 60,000,000 of +people of several different nationalities, and is of convenient +form and size, it may well be adopted by other nations as the common +standard of value, leaving to each nation to regulate the divisions +of this unit in silver coin or tokens. + +"If this is done France will surely abandon the impossible effort +of making two standards of value. Gold coins will answer all the +purpose of European commerce. A common gold standard will regulate +silver coinage, of which the United States will furnish the greater +part, especially for the Chinese trade. + +"I have thought a good deal of how the object you propose may be +most readily accomplished. It is clear that the United States +cannot become a party to the treaty referred to. They could not +agree upon the silver standard; nor could we limit the amount of +our coinage, as proposed by the treaty. The United States is so +large in extent, is so sparsely populated, and the price of labor +is so much higher than in Europe, that we require more currency +per capita. We now produce the larger part of the gold and silver +of the world, and cannot limit our coinage except by the wants of +our people and the demands of commerce. + +"Congress alone can change the value of our coin. I see no object +in negotiating with other powers on the subject. As coin is not +now in general circulation with us, we can readily fix by law the +size, weight, and measure of future issues. It is not worth while +to negotiate about that which we can do without negotiation, and +we do not wish to limit ourselves by treaty restrictions. + +"In England many persons of influence and different chambers of +commerce are earnestly in favor of the proposed change in their +coinage. The change is so slight with them that an enlightened +self-interest will soon induce them to make it, especially if we +make the greater change in our coinage. We have some difficulty +in adjusting existing contracts with the new dollar; but as contracts +are now based upon the fluctuating value of paper money, even the +reduced dollar in coin will be of more purchasable value than our +currency. + +"We can easily adjust the reduction with public creditors in the +payment or conversion of their securities, while private creditors +might be authorized to recover upon the old standard. All these +are matters of detail to which I hope the commission will direct +their attention. + +"And now, my dear sir, allow me to say in conclusion that I heartily +sympathize with you and the others in your efforts to secure the +adoption of the metrical system of weights and measures. + +"The tendency of the age is to break down all needless restrictions +upon social and commercial intercourse. Nations are now as much +akin to each other as provinces were of old. Prejudices disappear +by contact. People of different nations learn to respect each +other as they find that their differences are the effect of social +and local custom, not founded upon good reasons. I trust that the +industrial commission will enable the world to compute the value +of all productions by the same standard, to measure by the same +yard or meter, and weigh by the same scales. + +"Such a result would be of greater value than the usual employments +of diplomatists and statesmen. + + "I am very truly yours, + "John Sherman." + +As the result of its investigation the commission agreed, with +entire unanimity, that the gold five-franc piece should be adopted +as the unit of value, and that the coins of all nations represented +should be based upon that unit or multiples thereof. This would +require a slight change in the quantity of gold in the dollar of +the United States, amounting to a reduction of about three cents, +a reduction in the pound sterling of England of about one penny, +and a slight reduction or increase in the gold coins of other +countries. + +Mr. Ruggles reported the proceedings and recommendation of the +commission to the President, and his report was referred to +Congress. + +A private letter to me from Mr. Ruggles, dated December 30, 1867, +shows the nature of the opposition to the measure proposed, being +entirely from British opposition to a change in the pound sterling. +He wrote: + + "New York, December 30, 1867. +"My Dear Mr. Sherman:--You may have perceived, within the last +week, articles in the 'New York Evening Post,' the 'New York Times' +and the 'World,' on the subject of the proposed monetary unification; +the first denying its _propriety_, the second its _practicability_, +and the third underrating its _importance_. + +"The articles are hastily and ignorantly and, in some respects, +bitterly written. My first impulse was to briefly answer each of +them in its respective newspaper. On further reflection, it seemed +more decorous that, as a member of the 'conference,' I should first +appear before the Senate committee now in possession of all the +papers, and there render any proper explanations, and not obtrude +myself as a combatant in the newspapers, prematurely and only +partially defending my official action. If, however, you should +think that the articles should be answered without delay, I could +readily cause it to be done, by other persons. + +"I cannot but think that the dignity of the subject, formally +presented as it now is, to our national authorities, by a diplomatic +assemblage representing nearly all the civilized nations of the +Christian world, entitles it to a full discussion before the Senate +committee, to be followed by a maturely considered report, fairly +weighing and presenting to the country all the merits and demerits, +facilities and difficulties of the measure. + +"I am just at the moment confined to my house by an 'influenza,' +but if I can be of any service, either before the committee or +elsewhere, I shall hold myself subject to your official call, for +any duty, after the 7th or 8th of January, which you may indicate. + +"You must have perceived that my report to the department of state, +having in view the possibility of European readers, abstained from +some considerations which might properly be brought to the notice +of the committee of the American Senate. + +"It is strange, indeed, to see American newspapers eagerly maintaining +the inviolability of the 'pound sterling,' when it has become +entirely evident that the great monetary struggle of the future +must lie between the British pound and the American dollar. In +truth, this was virtually admitted in the 'conference' by Mr. +Graham, one of the British delegates, and master of the royal mint. + + "With high regard, faithfully yours, + "Samuel B. Ruggles. +"Hon. John Sherman, + "Chairman Senate Finance Comittee, etc., etc., etc." + +We were called upon to legislate upon the subject. The French +government promptly acquiesced in the coin proposed. Mr. Ruggles' +report said that several governments had already assented to it. +The report was referred to the committee on finance of the Senate, +who submitted a favorable report with a bill to carry out the +recommendations, and that report was published. There was no +dissent from the plan except that Senator Morgan, of New York, +thought it would interfere with the profit of New York brokers in +changing dollars into pounds. As a matter of course, it would have +interfered with the exchanges of New York and London, the great +money centers of the world. It would have interfered with bullion +dealers who make profit in exchanging coins; but the whole of it +was for the benefit of each country. + +No man can estimate the benefit it would have conferred upon our +own people. It was only defeated by the refusal of Great Britain +to assent to the change of her pound sterling by the reduction of +its value about one penny. But pride in the existing coins, so +strong in that country, defeated the measure, although it had been +assented to by her representatives in that monetary congress; and +so the thing ended. + +It is easy now to perceive that if this international coin had been +agreed to it would have passed current everywhere, as it could +rapidly be exchanged at sight without going through the hands of +brokers. I do not believe that Mr. Morgan would have insisted on +his opposition, as the only ground of his objection was, it would +have destroyed the business of the money changers of New York. +Even his resistance would have been ineffectual, as the committee +and the Senate were decidedly in favor of the bill and the opposition +of New York brokers would have added strength to the measure. + +The greatest statesmen of Europe and America have sought for many +years to unify the coinage of nations, and to adopt common standards +of weights and measures, so that commerce may be freed from the +restrictions now imposed upon it, but Great Britain has steadily +opposed all these enlightened measures, and thus far has been able +to defeat them. + +My report from the committee on finance, made to the Senate June +7, 1868, contains a full statement of the acts of the monetary +conference at Paris, and of the approval of its action by many of +the countries there represented, and of the support given to the +plan in Great Britain by many of her ablest statesmen and the great +body of her commercial classes, but the party then in power in +parliament refused its sanction, and thus, as already stated, the +measure failed. + +It has been quite common, during recent discussion about silver, +to attribute the alleged demonetization of that metal to the action +of the Paris monetary conference. In 1867, when this conference +was in session, as already stated, sixteen ounces of silver were +worth more than one ounce of gold. Fifteen and one-half ounces of +silver were the legal equivalent of one ounce of gold in all European +countries. No suggestion was made or entertained to disturb the +circulation of silver. The only object sought was to secure some +common coin by which other coins could be easily measured. As gold +was the most valuable metal in smallest space, and the five-franc +gold piece of France was the best _unit_ by which other coins could +be measured, other gold coins were to be multiples of the unit, so +that five francs would be a dollar and five dollars would be a +pound. The coins of other nations would be made to conform to +multiples of this unit. + +It was perfectly understood that, while silver was the chief coin +in domestic exchanges in every country, it was not convenient for +foreign commerce, owing to its bulk. The ratio between gold and +silver was purely a domestic matter, to be determined by each +country for itself. It is apparent that the chief cause of the +fall of the market value of silver is its increased production. +This affects the price of every commodity, cotton, corn, or wheat +as well as silver. The law of supply and demand regulates value. +It is the "higher law" more potent than acts of Congress. If the +supply is in excess of demand the price will fall, in spite of +legislation. The most striking evidence of this was furnished by +our recent legislation by which we purchased over 400,000,000 ounces +of silver at its market value and hoarded it, and yet the price of +it steadily declined. We can coin it into silver dollars, but we +can keep these dollars at par with gold only be receiving them as +the equal of gold when offered. + + +CHAPTER XIX. +IMPEACHMENT OF ANDREW JOHNSON. +Judiciary Committee's Resolution Fails of Adoption by a Vote of 57 +Yeas to 108 Nays--Johnson's Attempt to Remove Secretary Stanton +and Create a New Office for General Sherman--Correspondence on the +Subject--Report of the Committee on Impeachment, and Other Matters +Pertaining to the Appointment of Lorenzo Thomas--Impeachment +Resolution Passed by the House by a Vote of 126 Yeas to 47 Nays-- +Johnson's Trial by the Senate--Acquittal of the President by a Vote +of 35 Guilty to 19 Not Guilty--Why I Favored Conviction--General +Schofield Becomes Secretary of War--"Tenure of Office Act." + +During the spring and summer of 1867 the question of impeaching +Andrew Johnson, President of the United States, was frequently +discussed in the House of Representatives. The resolutions relating +to his impeachment were introduced by James M. Ashley, of Ohio, on +the 7th of March, 1867, and they were adopted on the same day. +These resolutions instructed the judiciary committee, when appointed, +to continue the inquiry, previously ordered, into certain charges +preferred against the President of the United States, with authority +to sit during the sessions of the House, and during any recess the +Congress might take. + +On the 25th of November, 1867, a majority of the committee on the +judiciary reported a resolution of impeachment, as follows: + +"_Resolved_, That Andrew Johnson, President of the United States, +be impeached of high crimes and misdemeanors." + +This resolution was accompanied by a long report and the testimony, +all of which was ordered to be printed, and made the special order +for Wednesday, December 4, 1867. James F. Wilson, of Iowa, made +a minority report against the resolution of impeachment, signed by +himself and Frederick E. Woodbridge, of Vermont. Samuel S. Marshall, +of Illinois, also made a minority report in behalf of himself and +Charles A. Eldridge, of Wisconsin. + +On the 7th of December, the resolution of impeachment reported by +the committee on the judiciary at the previous session was disagreed +to by a vote of 57 yeas and 108 nays. This decision of the House +of Representatives against an impeachment on the charges then made +was entirely justified. This imposing process was not authorized +for misconduct, immorality, intoxication or neglect of duties, such +as were alleged in the report of the committee, but only for high +crimes or misdemeanors. The House properly made this distinction, +and here the accusations against the President would have ended, +but for his attempt, in violation of the constitution and law, to +place General Lorenzo Thomas in an important office without the +advice and consent of the Senate, then in session. + +In the latter part of 1867, and the early part of 1868, I became +involved in a controversy, between President Johnson, General Grant +and General Sherman, which caused the last-named serious embarrassment. +As much of the correspondence between these parties has been +published in the "Sherman Letters," I at first thought it best not +to make any reference to the matter, but upon reflection, and to +explain subsequent events, I insert the letters in their order. + +General Sherman was summoned to Washington, by the President, and +upon his arrival there wrote me the following letter: + + "Washington, October 11, 1867. +"Dear Brother:--I have no doubt that you have been duly concerned +about my being summoned to Washington. + +"It was imprudently done by the President without going through +Grant. But I think I have smoothed it over so that Grant does not +feel hurt. I cannot place myself in a situation even partially +antagonistic with Grant. We must work together. Mr. Johnson has +not offered me anything, only has talked over every subject, and +because I listen to him patiently, and make short and decisive +answers, he says he would like to have me here. Still he does not +oppose my going back home. . . . + +"On Monday I will start for St. Louis by the Atlantic and G. W. +road, and pass Mansfield Tuesday. Can't you meet me and ride some +miles? I have been away from home so much, and must go right along +to Fort Laramie, that I cannot well stop at Cleveland or Mansfield, +and would like to see you for an hour or so to hear your views of +the coming events. . . . + + "Yours affectionately, + "W. T. Sherman." + +And on his return to St. Louis he continues: + +. . . "I have always talked kindly to the President, and have +advised Grant to do so. I do think that it is best for all hands +that his administration be allowed to run out its course without +threatened or attempted violence. Whoever begins violent proceedings +will lose in the long run. Johnson is not a man of action but of +theory, and so long as your party is in doubt as to the true mode +of procedure, it would be at great risk that an attempt be made to +displease the President by a simple law of Congress. This is as +much as I have ever said to anybody. I have never, by word or +inference, given anybody the right to class me in opposition to, +or in support of, Congress. On the contrary, I told Mr. Johnson +that from the nature of things he could not dispense with a Congress +to make laws and appropriate money, and suggested to him to receive +and make overtures to such men as Fessenden, Trumbull, Sherman, +Morgan, and Morton, who, though differing with him in abstract +views of constitutional law and practice, were not destructive. +That if the congressional plan of reconstruction succeeded, he +could do nothing, and if it failed or led to confusion, the future +developed results in his favor, etc.; and that is pretty much all +I have ever said or done. At the meeting of the society of the +army of the Tennessee on the 13th inst., I will be forced to speak, +if here, and though I can confine myself purely to the military +events of the past, I can make the opportunity of stating that in +no event will I be drawn into the complications of the civil politics +of this country. + +"If Congress could meet and confine itself to current and committee +business, I feel certain that everything will work along quietly +till the nominations are made, and a new presidential election will +likely settle the principle if negroes are to be voters in the +states without the consent of the whites. This is more a question +of prejudice than principle, but a voter has as much right to his +prejudices as to his vote. . . ." + +I answered: + + "Mansfield, Ohio, November 1, 1867. +"Dear Brother:-- . . . I see no real occasion for trouble with +Johnson. The great error of his life was in not acquiescing in +and supporting the 14th amendment of the constitution in the 39th +Congress. This he could easily have carried. It referred the +suffrage question to each state, and if adopted long ago the whole +controversy would have culminated; or, if further opposed by the +extreme radicals, they would have been easily beaten. Now I see +nothing short of universal suffrage and universal amnesty as the +basis. When you come on, I suggest that you give out that you go +on to make your annual report and settle Indian affairs. Give us +notice when you will be on, and come directly to my house, where +we will make you one of the family. + +"Grant, I think, is inevitably the candidate. He allows himself +to drift into a position where he can't decline if he would, and +I feel sure he don't want to decline. My judgment is that Chase +is better for the country and for Grant himself, but I will not +quarrel with what I cannot control. + + "John Sherman." + +And later I wrote:-- + +"If you can keep free from committals to Johnson, you will surely +as you live be called upon to act as President. The danger now is +that the mistakes of the Republicans may drift the Democratic party +into power. If so, the Rebellion is triumphant, and no man active +in suppressing it will be treated or honored. Grant is not injured +by his correspondence with Johnson, but no doubt feels annoyed. . . ." + +At this time President Johnson had come to open disagreement with +Mr. Stanton, his Secretary of War, and wished to force him from +the cabinet. Mr. Stanton had refused to resign and had been upheld +by Congress. The President then turned for help in his difficulties +to General Grant, commanding the army; but the latter found that +any interference on his part would be illegal and impossible. + +Mr. Johnson then planned to create a new office for General Sherman, +that of brevet general of the army, in order to bring him to +Washington. + +The following letters and telegrams refer to this difficulty: + + "(Confidential.) + "Library Room, War Department, } + "Washington, D. C., January 31, 1868.} +"To the President:--Since our interview of yesterday I have given +the subject of our conversation all my thoughts, and I beg you will +pardon my reducing the result to writing. + +"My personal preferences, if expressed, were to be allowed to return +to St. Louis to resume my present command, because my command was +important, large, suited to my rank and inclination, and because +my family was well provided for there, in house facilities, schools, +living, and agreeable society. + +"Whilst, on the other hand, Washington was for many (to me) good +reasons highly objectionable. Especially because it is the political +capital of the country and focus of intrigue, gossip, and slander. +Your personal preferences were, as expressed, to make a new department +east adequate to my rank, with headquarters at Washington, and to +assign me to its command--to remove my family here, and to avail +myself of its schools, etc.; to remove Mr. Stanton from his office +as Secretary of War, and have me to discharge the duties. + +"To effect this removal two modes were indicated: To simply cause +him to quit the war office building and notify the treasury department +and the army staff departments no longer to respect him as Secretary +or War; or to remove him, and submit my name to the Senate for +confirmation. Permit me to discuss these points a little, and I +will premise by saying that I have spoken to no one on the subject, +and have not even seen Mr. Ewing, Mr. Stanbery, or General Grant +since I was with you. + +"It has been the rule and custom of our army, since the organization +of the government, that the officer of the army second in rank +should be in command at the second place in importance, and remote +from general headquarters. To bring me to Washington would put +three heads to an army,--yourself, General Grant, and myself,--and +we would be more than human if we were not to differ. In my judgment +it would ruin the army, and would be fatal to one or two of us. + +"Generals Scott and Taylor proved themselves soldiers and patriots +in the field, but Washington was fatal to them both. This city +and the influences that centered here defeated every army that had +its head here from 1861 to 1865, and would have overwhelmed General +Grant at Spottsylvania and Petersburg, had he not been fortified +by a strong reputation already hard earned, and because no one then +living coveted the place. Whereas in the west we made progress +from the start, because there was no political capital near enough +to poison our minds and kindle into light that craving itching for +fame which has killed more good men than battles. I have been with +General Grant in the midst of death and slaughter--when the howls +of people reached him after Shiloh; when messengers were speeding +to and fro, between his army and Washington, bearing slanders to +induce his removal before he took Vicksburg; in Chattanooga, when +the soldiers were stealing the corn of the starving mules to satisfy +their own hunger; at Nashville, when he was ordered to the 'forlorn +hope' to command the army of the Potomac, so often defeated--and +yet I never saw him more troubled than since he has been in +Washington, and has been compelled to read himself a 'sneak and +deceiver,' based on reports of four of the cabinet, and apparently +with your knowledge. If this political atmosphere can disturb the +equanimity of one so guarded and so prudent as he is, what will be +the result with one so careless, so outspoken, as I am? Therefore, +with my consent, Washington never. + +"As to the Secretary of War, his office is twofold. As cabinet +officer he should not be there without your hearty, cheerful consent, +and I believe that is the judgment and opinion of every fair-minded +man. As the holder of a civil office, having the supervision of +money appropriated by Congress, and of contracts for army supplies, +I do think Congress, or the Senate by delegation from Congress, +has a lawful right to be consulted. At all events, I would not +risk a suit or contest on that phase of the question. The law of +Congress of March 2, 1867, prescribing the manner in which orders +and instructions relating to 'military movements' shall reach the +army, gives you, as constitutional commander in chief, the very +power you want to exercise, and enables you to prevent the secretary +from making any such orders and instructions, and consequently he +cannot control the army, but is limited and restricted to a duty +that an auditor of the treasury could perform. You certainly can +afford to await the result. The executive power is not weakened, +but, rather, strengthened. Surely he is not such an obstruction +as would warrant violence or even a show of force which could +produce the very reaction and clamor that he hopes for, to save +him from the absurdity of holding an empty office 'for the safety +of the country.' + + "With great respect, yours truly, + "W. T. Sherman." + + + "Headquarters Military Division of the Missouri,} + "St. Louis, Mo., February 14, 1868. } +"To the President: + +"Dear Sir:--It is hard for me to conceive you would purposely do +me an unkindness, unless under the pressure of a sense of public +duty, or because you do not believe me sincere. + +"I was in hopes, since my letter to you of the 31st of January, +that you had concluded to pass over that purpose of yours, expressed +more than once in conversation, to organize a new command for me +in the east, with headquarters in Washington; but a telegram, from +General Grant, of yesterday, says that 'the order was issued ordering +you' (me) 'to Atlantic division;' and the newspapers of this morning +contain the same information, with the addition that I have been +nominated as 'brevet general.' I have telegraphed to my own brother +in the Senate to oppose my nomination, on the ground that the two +higher grades in the army ought not to be complicated with brevets, +and I trust you will conceive my motives aright. If I could see +my way clear to maintain my family, I should not hesitate a moment +to resign my present commission and seek some business wherein I +would be free from those unhappy complications that seem to be +closing about me, in spite of my earnest efforts to avoid them; +but necessity ties my hands, and I submit with the best grace I +can, till I make other arrangements. + +"In Washington are already the headquarters of a department, and +of the army itself, and it is hard for me to see wherein I can +render military service there. Any staff officer with the rank of +major could surely fill any gap left between those two military +offices; and by being placed at Washington I shall be universally +construed as a rival to the general in chief, a position damaging +to me in the highest degree. Our relations have always been most +confidential and friendly, and if, unhappily, any cloud of difficulty +should arise between us, my sense of personal dignity and duty +would leave me no alternative but resignation. For this I am not +yet prepared, but I shall proceed to arrange for it as rapidly as +possible, that when the time does come (as it surely will if this +plan is carried into effect), I may act promptly. + +"Inasmuch as the order is now issued, I cannot expect a full +revocation of it, but I beg the privilege of taking post at New +York, or at any point you may name, within the new military division, +other than Washington. + +"This privilege is generally granted to all military commanders, +and I can see no good reasons why I, too, may not ask for it; and +this simple concession, involving no public interest, will much +soften the blow which, right or wrong, I construe as one of the +hardest I have sustained in a life somewhat checkered with +adversity. + + "With great respect, yours truly, +(Signed) "W. T. Sherman, Lieutenant General." + + + "Headquarters Military Division of Missouri,} + "St. Louis, February 14, 1868. } +"Dear Brother:-- . . . I am again in the midst of trouble, occasioned +by a telegram from Grant saying that the order is out for me to +come to the command of the military division of the Atlantic, +headquarters at Washington. The President repeatedly asked me to +accept of some such position, but I thought I had fought it off +successfully, though he again and again reverted to it. + +"Now, it seems, he has ordered it, and it is full of trouble for +me. I wrote him one or two letters in Washington, which I though +positive enough, but have now written another, and if it fails in +its object I might as well cast about for new employment. The +result would be certain conflict, resulting in Grant's violent +deposition, mine, or the President's. + +"There is not room on board of one ship for more than one captain. + +"If Grant intends to run for President I should be willing to come +on, because my duties would then be so clearly defined that I think +I could steer clear of the breakers--but now it would be impossible. +The President would make use of me to beget violence, a condition +of things that ought not to exist now. + +"He has no right to use us for such purposes, though he is commander +in chief. I did suppose his passage with Grant would end there, +but now it seems he will fight him as he has been doing Congress. +I don't object if he does so himself and don't rope me in. . . . + +"If the President forces me into a false position out of seeming +favor, I must defend myself. It is mortifying, but none the less +inevitable. + + "Affectionately, + "W. T. Sherman." + + + (Telegram.) + "Washington, February 14, 1868. + "From St. Louis, February 14, 1868. +"To General U. S. Grant, Commander U. S. Army: + +"Your dispatch informing me that the order for the Atlantic division +was issued, and that I was assigned to its command, is received. + +"I was in hopes I had escaped the danger, and now, were I prepared, +should resign on the spot, as it requires no foresight to predict +such must be the inevitable result in the end. + +"I will make one more desperate effort by mail, which please await. + +(Signed) "W. T. Sherman, Lieutenant General." + + + (Telegram.) + "Dated St. Louis, February 14, 1868. + "Received at House of Representatives, February 14. +"To Hon. John Sherman: + +"Oppose confirmation of myself as brevet general on ground that it +is unprecedented, and that it is better not to extend the system +of brevets above major general. If I can't avoid coming to Washington +I may have to resign. + + "W. T. Sherman, Lieutenant-General." + +This correspondence, some of which was published, excited a great +deal of attention, and I received many letters in regard to it, +one of which I insert: + + "Washington, D. C., February 17, 1868. +"Dear Sherman:--How nobly and magnanimously your gallant brother +has acted. If A. J. was not callous to all that would affect +gentlemen generally, he would feel this rebuke stingingly. But +since he has betrayed the men who elected him he is proof against +such things. + + "Yours very truly, + "Schuyler Colfax." + +Upon the receipt of General Sherman's telegram I requested the +committee on military affairs to take no action upon his nomination, +as he did not desire, and would not accept, the proposed compliment. +This correspondence then followed: + + "Headquarters Military Division of the Missouri.} + "St. Louis, Mo., February 17, 1868. } +"Dear Brother:-- . . . I have not yet got the order for the Atlantic +division, but it is coming by mail, and when received I must act. +I have asked the President to let me make my headquarters at New +York, instead of Washington, making my application of the ground +that my simply being in Washington will be universally construed +as rivalry to General Grant, a position which would be damaging to +me in the extreme. + +"If I must come to Washington, it will be with a degree of reluctance +never before experienced. I would leave my family here on the +supposition that the change was temporary. I do not question the +President's right to make the new division, and I think Congress +would make a mistake to qualify his right. It would suffice for +them to nonconfirm the brevet of general. I will notify you by +telegraph when the matter is concluded. + + "Affectionately, + "W. T. Sherman." + + + (Telegram.) + "Received Washington, February 20, 1868. + "From St. Louis, Mo., February 20, 1868. +"To General U. S. Grant: + +"The President telegraphs that I may remain in my present command. +I write him a letter of thanks through you to-day. Congress should +not have for publication my letters to the President, unless the +President himself chooses to give them. + +(Signed) "W. T. Sherman, Lieut. General." + + + "Headquarters Army of the United States.} + "Washington, February 21, 1868. } +"Dear Sir:--By General Grant's direction I inclose a copy of a +dispatch from General Sherman, seeming to indicate his preference +that the correspondence in question should not now be made public. + + "Respectfully yours, + "C. B. Comstock, B. B. S. +"Hon. John Sherman, United States Senate." + +A few days after this, General Sherman went to Washington in response +to the President's order, and while there had several interviews +with the President relating to the change of his command. He +objected very strongly, as has been seen, to any such change, +because he felt that he could not hold a command in Washington +without interfering with Grant's interests, and because he had a +rooted objection to living in Washington in the midst of the turmoil +of politics. These objections were embodied in three letters which +General Sherman wrote and showed to Grant before he sent them to +the President. One of them found its way into the public press, +and created a disturbance which called forth the following letters: + + "Headquarters Army of the United States,} + "Washington, D. C., February 22, 1868. } +"Hon. J. Sherman, United States Senate. + +"Dear Sir:--The 'National Intelligencer' of this morning contains +a private note which General Sherman sent to the President whilst +he was in Washington, dictated by the purest kindness and a +disposition to preserve harmony, and not intended for publication. +It seems to me that the publication of that letter is calculated +to place the general in a wrong light before the public, taken in +connection with what correspondents have said before, evidently +getting their inspiration from the White House. + +"As General Sherman afterwards wrote a semi-official note to the +President, furnishing me a copy, and still later a purely official +one sent through me, which placed him in his true position, and +which have not been published, though called for by the 'House,' +I take the liberty of sending you these letters to give you the +opportunity of consulting General Sherman as to what action to take +upon them. In all matters where I am not personally interested, +I would not hesitate to advise General Sherman how I would act in +his place. But in this instance, after the correspondence I have +had with Mr. Johnson, I may not see General Sherman's interest in +the same light that others see it, or that I would see it in if no +such correspondence had occurred. I am clear in this, however, +the correspondence here inclosed to you should not be made public +except by the President, or with the full sanction of General +Sherman. Probably the letter of the 31st of January, marked +'confidential,' should not be given out at all. + + "Yours truly, + "U. S. Grant." + +The following letter was addressed to the "National Intelligencer," +a Washington newspaper: + + "United States Senate Chamber, } + "Washington, February 22, 1868.} +"Gentlemen:--The publication in your paper yesterday of General +Sherman's note to the President, and its simultaneous transmission +by telegraph, unaccompanied by subsequent letters withheld by the +President because they were 'private,' is so unfair as to justify +severe censure upon the person who furnished you this letter, +whoever he may be. Upon its face it is an informal private note +dictated by the purest motives--a desire to preserve harmony--and +not intended for publication. How any gentleman receiving such a +note could first allow vague but false suggestions of its contents +to be given out, and then print it, and withhold other letters +because they were 'private,' with a view to create the impression +that General Sherman, in referring to ulterior measures, suggested +the violent expulsion of a high officer from his office, passes my +comprehension. Still I know that General Sherman is so sensitive +upon questions of official propriety in publishing papers, that he +would rather suffer from this false inference than correct it by +publishing another private note, and as I know that this letter +was not the only one written by General Sherman to the President +about Mr. Stanton, I applied to the President for his consent to +publish subsequent letters. This consent was freely given by the +President, and I therefore send copies to you and ask their +publication. + +"These copies are furnished me from official sources; for while I +know General Sherman's opinions, yet he did not show me either of +the letters to the President, during his stay here, nervously +anxious to promote harmony, to avoid strife, and certainly never +suggested or countenanced resistance to law--or violence in any +form. He no doubt left Washington with his old repugnance to +politics, politicians, and newspapers very much increased by his +visit here. + + "John Sherman." + + + "United States Senate Chamber, February 23, 1868. +"Dear Brother:--I received your letters and telegrams, and did not +answer because events were moving so rapidly that I could say +nothing but might be upset before you got the letter. + +"Now you can congratulate yourself upon being clear of the worst +complications we have ever had. Impeachment seems to be a forgone +conclusion so far as the House of Representatives is concerned, +based upon the alleged _forcible_ expulsion of Stanton. No one +disputes the right of the President to raise a question of law upon +his right to remove Stanton, but the forcible removal of a man in +office, claiming to be in lawfully, is like the forcible ejectment +of a tenant when his right of possession is in dispute. It is a +trespass, an assault, a riot, or a crime, according to the result +of the force. It is strange the President can contemplate such a +thing, when Stanton is already stripped of power, and the courts +are open to the President to try his right of removal. The President +is acting very badly with respect to you. He creates the impression +that you acted disingenuously with him. He has published your +short private note before you went to Annapolis, and yet refuses +to publish your formal one subsequently sent to him, because it +was 'private.' The truth is, he is a slave to his passions and +resentments. No man can confide in him, and you ought to feel +happy at your extrication from all near connection with him. . . . +Grant is anxious to have your letters published, since the note +referred to was published. I will see Grant and the President this +evening, and if the latter freely consents, I will do it informally; +but if he doubts or hesitates, I will not without your expressed +directions. In these times of loose confidence, it is better to +submit for a time to a wrong construction, than to betray confidential +communications. Grant will, unquestionably, be nominated. Chase +acquiesces, and I see no reason to doubt his election. . . . + + "Affectionately, + "John Sherman." + + + "Headquarters Military Division of the Missouri.} + "St. Louis, Mo., February 25, 1868. } +"Dear Brother:-- . . . I am in possession of all the news up to +date--the passage of the impeachment resolution, etc.--but I yet +don't know if the nomination of T. Ewing, Senior, was a real thing +or meant to compromise a difficulty. + +"The publication of my short note of January 18, is nothing to me. +I have the original draft which I sent through Grant's hands, with +his indorsement back to me. At the time this note must have been +given to the reporter, the President had an elaborate letter from +me, in which I discussed the whole case, and advised against the +very course he has pursued, but I don't want that letter or any +other to be drawn out to complicate a case already bad enough. + +"You may always safely represent me by saying that I will not make +up a final opinion until called on to act, and I want nothing to +do with these controversies until the time comes for the actual +fight, which I hope to God may be avoided. If the Democratic party +intend to fight on this impeachment, which I believe they do not, +you may count 200,000 men against you in the south. The negroes +are no match for them. On this question, the whites there will be +more united than on the old issue of union and secession. I do +not think the President should be suspended during trial, and, if +possible, the Republican party should not vote on all side questions +as a unit. They should act as judges, and not as partisans. The +vote in the House, being a strictly party vote, looks bad, for it +augurs a prejudiced jury. Those who adhere closest to the law in +this crisis are the best patriots. Whilst the floating politicians +here share the excitement at Washington, the people generally +manifest little interest in the game going on at Washington. . . . + + "Affectionately yours, + "W. T. Sherman." + + + "United States Senate Chamber.} + "Washington, March 1, 1868. } +"Dear Brother:--Your letter of the 25th is received. I need not +say to you that the new events transpiring here are narrowly watched +by me. So far as I am concerned, I mean to give Johnson a fair +and impartial trial, and to decide nothing until required to do +so, and after full argument. I regard him as a foolish and stubborn +man, doing even right things in a wrong way, and in a position +where the evil that he does is immensely increased by his manner +of doing it. He clearly designed to have first Grant, and then +you, involved in Lorenzo Thomas' position, and in this he is actuated +by his recent revolt against Stanton. How easy it would have been, +if he had followed your advice, to have made Stanton anxious to +resign, or what is worse, to have made his position ridiculous. +By his infernal folly we are drifting into turbulent waters. The +only way is to keep cool and act conscientiously. I congratulate +you on your lucky extrication. I do not anticipate civil war, for +our proceeding is unquestionably lawful, and if the judgment is +against the President, his term is just as clearly _out_ as if the +4th of March, 1869, was come. The result, if he is convicted, +would cast the undivided responsibility of reconstruction upon the +Republican party, and would unquestionably secure the full admission +of all the states by July next, and avoid the dangerous questions +that may otherwise arise out of the southern vote in the Presidential +election. It is now clear that Grant will be a candidate, and his +election seems quite as clear. The action of North Carolina removed +the last doubt of his nomination. + + "Affectionately yours, + "John Sherman." + + + "Headquarters Military Division of the Missouri,} + "St. Louis, March 14, 1868. } +"Dear Brother:--I don't know what Grant means by his silence in +the midst of the very great indications of his receiving the +nomination in May. Doubtless he intends to hold aloof from the +expression of any opinion, till the actual nomination is made, +when, if he accepts with a strong radical platform, I shall be +surprised. My notion is that he thinks that the Democrats ought +not to succeed to power, and that he would be willing to stand a +sacrifice rather than see that result. . . . I notice that you +Republicans have divided on some of the side questions on impeachment, +and am glad that you concede to the President the largest limits +in his defense that are offered. I don't see what the Republicans +can gain by shoving matters to an extent that looks like a foregone +conclusion. + +"No matter what men may think of Mr. Johnson, his office is one +that ought to have a pretty wide latitude of opinion. Nevertheless, +the trial is one that will be closely and sternly criticised by +all the civilized world. . . . + + "Your brother, + "W. T. Sherman." + +At this time I wrote from Washington: + +"You notice the impeachment proceedings have commenced. As a matter +of course, I have nothing to say about them. It is strange that +they have so little effect on prices and business. The struggle +has been so long that the effect has been discounted. . . . + +"The President was very anxious to send you to Louisiana, and only +gave it up by reason of your Indian command. He might think that +your visit to Europe now was not consistent with the reason given +for your remaining at St. Louis. Still, on this point you could +readily ask his opinion, and if that agrees with Grant's you need +feel no delicacy in going. No more favorable opportunity or time +to visit Europe will likely occur. . . ." + +General Sherman replied: + +"I hardly know what to think of the impeachment. Was in hopes Mr. +Johnson would be allowed to live out his term, and doubt if any +good will result by a change for the few months still remaining of +his term. A new cabinet, and the changes foreshadowed by Wade's +friends, though natural enough, would have insufficient time to do +any good. I have a private letter from Grant as late as March 18, +but he says not a word of his political intentions. So far as I +know, he would yet be glad of a change that would enable him to +remain as now. . . ." + +On the 27th of February, 1868, Mr. Stevens made the following +report: + +"The committee on reconstruction, to whom was referred, on the 27th +of January last, the following resolution: + +'_Resolved_, That the committee on reconstruction be authorized +to inquire what combinations have been made or attempted to be made +to obstruct the due execution of the laws; and to that end the +committee have powers to send for persons and papers, and to examine +witnesses on oath, and report to this House what action, if any, +they may deem necessary; and that said committee have leave to +report at any time.' + +"And to whom was also referred, on the 21st day of February, instant, +a communication from Hon. Edwin M. Stanton, Secretary of War, dated +on said 21st day of February, together with a copy of a letter from +Andrew Johnson, President of the United States, to the said Edwin +M. Stanton, as follows: + + 'Executive Mansion, } + 'Washington, D. C., February 21, 1868.} +'Sir:--By virtue of the power and authority vested in me, as +President, by the constitution and laws of the United States, you +are hereby removed from office as secretary for the department of +war, and your functions as such will terminate upon the receipt of +this communication. + +'You will transfer to Brevet Major General Lorenzo Thomas, Adjutant +General of the Army, who has this day been authorized and empowered +to act as Secretary of War _ad interim_, all records, books, papers, +and other public property now in your custody and charge. + + 'Respectfully yours, + 'Andrew Johnson. +'Hon. Edwin M. Stanton, Washington, D. C.' + +"And to whom was also referred by the House of Representatives the +following resolution, namely: + +'_Resolved_, That Andrew Johnson, President of the United States, +be impeached of high crimes and misdemeanors.' + +"Have considered the several subjects referred to them, and submit +the following report: + +"That in addition to the papers referred to the committee, the +committee find that the President, on the 21st day of February, +1868, signed and issued a commission or letter of authority to one +Lorenzo Thomas, directing and authorizing said Thomas to act as +Secretary of War _ad interim_, and to take possession of the books, +records, and papers, and other public property in the war department, +of which the following is a copy: + + 'Executive Mansion, } + 'Washington, February 21, 1868.} +'Sir:--Hon. Edwin M. Stanton having been this day removed from +office as secretary for the department of war, you are hereby +authorized and empowered to act as Secretary of War _ad interim_, +and will immediately enter upon the discharge of the duties pertaining +to that office. Mr. Stanton has been instructed to transfer to +you all the records, books, papers, and other public property now +in his custody and charge. + + 'Respectfully yours, + 'Andrew Johnson. +'To Brevet Major General Lorenzo Thomas, Adjutant General of the + United States Army, Washington, District of Columbia. + +'Official copy respectfully furnished to Hon. Edwin M. Stanton. + + 'L. Thomas + 'Secretary of War _ad interim_.' + +"Upon the evidence collected by the committee, which is herewith +presented, and in virtue of the powers with which they have been +invested by the House, they are of the opinion that Andrew Johnson, +President of the United States, be impeached of high crimes and +misdemeanors. They therefore recommend to the House the adoption +of the accompanying resolution: + + "Thaddeus Stevens, + "George S. Boutwell, + "John A. Bingham, + "C. T. Hulburd, + "John F. Farnsworth, + "F. C. Beaman, + "H. E. Paine. + +"Resolution providing for the impeachment of Andrew Johnson, +President of the United States: + +'_Resolved_, That Andrew Johnson, President of the United States, +be impeached of high crimes and misdemeanors in office.'" + +On the 24th of February the resolution providing for impeachment +was adopted by a vote of 126 yeas and 47 nays. + +On the same day Mr. Stevens introduced the following resolution, +which was agreed to: + +"_Resolved_, That a committee of two be appointed to go to the +Senate and, at the bar thereof, in the name of the House of +Representatives and of all the people of the United States, to +impeach Andrew Johnson, President of the United States, of high +crimes and misdemeanors in office, and acquaint the Senate that +the House of Representatives will, in due time, exhibit particular +articles of impeachment against him and make good the same; and +that the committee do demand that the Senate take order for the +appearance of said Andrew Johnson to answer to said impeachment. + +"2. _Resolved_, That a committee of seven be appointed to prepare +and report articles of impeachment against Andrew Johnson, President +of the United States, with power to send for persons, papers, and +records, and to take testimony under oath." + +The speaker then announced the following committees under these +resolutions: + +"Committee to communicate to the Senate the action of the House +ordering an impeachment of the President of the United States:-- +Thaddeus Stevens, of Pennsylvania, and John A. Bingham, of Ohio. + +"Committee to declare articles of impeachment against the President +of the United States:--George S. Boutwell, of Massachusetts; Thaddeus +Stevens, of Pennsylvania; John A. Bingham, of Ohio; James F. Wilson, +of Iowa; John A. Logan, of Illinois; George W. Julian, of Indiana; +and Hamilton Ward, of New York." + +The trial of this impeachment by the Senate was an imposing spectacle, +which excited profound interest during its continuance. It was +soon developed that the gravamen of the charges was not the removal +of Stanton, but was the attempt of the President to force General +Lorenzo Thomas into a high office without the advice and consent +of the Senate. + +In the trial of this impeachment I wished to be, and I think I was, +absolutely impartial. I liked the President personally and harbored +against him none of the prejudice and animosity of some others. +I knew he was bold and rash, better fitted for the storms of +political life than the grave responsibilities of the chief magistrate +of a great country. His education, such as it was, was acquired +late in life, when his character was formed and his habits fixed. +Still, his mind was vigorous and his body strong, and when thoroughly +aroused he was an able speaker; his language was forcible and apt +and his influence over a popular audience was effective. I disliked +above all things to be a judge in his case. I knew some of my +associates were already against the President, and others were +decided in his favor. I resolutely made up my mind, so far as +human nature would admit, to fairly hear and impartially consider +all the evidence produced and all the arguments made. + +The counsel for the President were Henry Stanbery, B. R. Curtis, +Jeremiah S. Black, William M. Evarts, William S. Groesbeck, and +Thomas A. R. Nelson. The managers on the part of the House of +Representatives were John A. Bingham, George S. Boutwell, James F. +Wilson, John A. Logan, Thomas Williams, Benjamin F. Butler and +Thaddeus Stevens. The trial lasted nearly two months, was ably +conducted on both sides, and ended by the acquittal of the President, +on the eleventh article of impeachment, by a vote of 35 guilty and +19 not guilty. Two-thirds of those voting not having pronounced +"guilty," as required by the constitution, the President was +acquitted upon this article. Two other articles were voted on with +the same result. Thereupon, on the 26th day of May, 1868, the +Senate sitting as a court of impeachment adjourned without day. +Mr. Stanton resigned and General Schofield became Secretary of War. + +I voted for conviction for the reasons stated in the opinion given +by me. I have carefully reviewed this opinion and am entirely +content with it. I stated in the beginning my desire to consider +the case without bias or feeling. I quote in full the opening +paragraphs: + +"This cause must be decided upon the reasons and presumptions which +by law apply to all other criminal accusations. Justice is blind +to the official station of the respondent, and to the attitude of +the accusers speaking in the name of all the people of the United +States. It only demands of the Senate the application to this cause +of the principles and safeguards provided for every human being +accused of crime. For the proper application of these principles +we ourselves are on trial before the bar of public opinion. The +novelty of this proceeding, the historical character of the trial, +and the grave interests involved, only deepen the obligation of +the special oath we have taken to do impartial justice according +to the constitution and laws. + +"And this case must be tried upon the charges now made by the House +of Representatives. We cannot consider other offenses. An appeal +is made to the conscience of each Senator of guilty or not guilty +by the President of eleven specific offenses. In answering this +appeal a Senator cannot justify himself by public opinion, or by +political, personal, or partisan demands, or even grave considerations +of public policy. His conscientious conviction of the truth of +these charges is the only test that will justify a verdict of +guilty. God forbid that any other shall prevail here. In forming +this conviction we are not limited merely to the rules of evidence, +which, by the experience of ages, have been found best adapted to +the trial of offenses in the double tribunal of court and jury, +but we may seek light from history, from personal knowledge, and +from all sources that will tend to form a conscientious conviction +of the truth. And we are not bound to technical definitions of +crimes and misdemeanors. + +"A willful violation of the law, a gross and palpable breach of +moral obligations tending to unfit an officer for the proper +discharge of his office, or to bring the office into public contempt +and derision, is, when charged and proven, an impeachable offense. +And the nature and criminality of the offense may depend on the +official character of the accused. A judge would be held to higher +official purity, and an executive officer to a stricter observance +of the letter of the law. The President, bound as a citizen to +obey the law, and specially sworn to execute the law, may properly, +in his high office as chief magistrate, be held to a stricter +responsibility than if his example was less dangerous to the public +safety. Still, to justify the conviction of the President there +must be specific allegations of some crime or misdemeanor involving +moral turpitude, gross misconduct, or a willful violation of law, +and the proof must be such as to satisfy the conscience of the +truth of the charge. + +"The principal charges against the President are that he willfully +and purposely violated the constitution and the laws, in the order +for the removal of Mr. Stanton, and in the order for the appointment +of General Thomas as Secretary of War _ad interim_. These two +orders were contemporaneous--part of the same transaction--but are +distinct acts, and are made the basis of separate articles of +impeachment." + +I stated the grounds of my conviction that the action of the +President, in placing Lorenzo Thomas in charge of the office of +Secretary of War, without the advice and consent of the Senate, +was a clearly illegal act, committed for the purpose of obtaining +control of that office. I held that the President had the power +to remove Secretary Stanton, but that he had not the power to put +anyone in his place unless the person appointed was confirmed by +the Senate. + +Did the act of March 2, 1867, commonly known as the "tenure of +office act," confer this authority? On the contrary, it plainly +prohibits all temporary appointments except as specially provided +for. The third section repeats the constitutional authority of +the President to fill all vacancies happening during the recess of +the Senate by death or resignation, and provides that if no +appointment is made during the following session to fill such +vacancy, the office shall remain in abeyance until an appointment +is duly made and confirmed, and provision is made for the discharge +of the duties of the office in the meantime. The second session +provides for the suspension of an officer during the recess, and +for a temporary appointment _during the recess_. This power was +exercised and fully exhausted by the suspension of Mr. Stanton +until restored by the Senate, in compliance with the law. No +authority whatever is conferred by this act for any temporary +appointment during the session of the Senate, but, on the contrary, +such an appointment is plainly inconsistent with the act, and could +not be inferred or implied for it. The sixth section further +provides: + +"That every removal, appointment, or employment, made, had, or +exercised, contrary to the provisions of this act, and the making, +signing, sending, countersigning, or issuing of any commission or +letter of authority for, or in respect to, any such appointment or +employment, shall be deemed, and are hereby declared to be, high +misdemeanors, and, upon trial and conviction thereof, every person +guilty thereof shall be punished by a fine not exceeding $10,000, +or by imprisonment not exceeding five years, or both said punishments, +in the discretion of the court." + +This language is plain, explicit, and was inserted not only to +prohibit all temporary appointments except during the recess, and +in the mode provided for in the second section, but the unusual +course was taken of affixing a penalty to a law defining the official +duty of the President. The original bill did not contain penal +clauses; but it was objected in the Senate that the President had +already disregarded mandatory provisions of law, and would this; +and therefore, after debate, these penal sections were added to +secure obedience to the law, and to give to it the highest sanction. + +I quote my view of the action of the President: + +"Was not this act willfully violated by the President during the +session of the Senate? + +"It appears, from the letter of the President to General Grant, +from his conversation with General Sherman, and from his answer, +that he had formed a fixed resolve to get rid of Mr. Stanton, and +fill the vacancy without the advice of the Senate. He might have +secured a new Secretary of War by sending a proper nomination to +the Senate. This he neglected and refused to do. He cannot allege +that the Senate refused to relieve him from an obnoxious minister. +He could not say that the Senate refused to confirm a proper +appointee, for he would make no appointment to them. The Senate +had declared that the reasons assigned for suspending Mr. Stanton +did not make the case required by the tenure of office act, but I +affirm as my conviction that the Senate would have confirmed any +one of a great number of patriotic citizens if nominated to the +Senate. I cannot resist the conclusion, from the evidence before +us, that he was resolved to obtain a vacancy in the department of +war in such a way that he might fill the vacancy by an appointment +without the consent of the Senate, and in violation of the constitution +and the law. This was the purpose of the offer to General Sherman. +This was the purpose of the appointment of General Thomas. If he +had succeeded as he hoped, he could have changed his temporary +appointment at pleasure, and thus have defied the authority of the +Senate and the mandatory provisions of the constitution and the +law. I cannot in any other way account for his refusal to send a +nomination to the Senate until after the appointment of General +Thomas. The removal of Mr. Stanton by a new appointment, confirmed +by the Senate, would have complied with the constitution. The +absolute removal of Mr. Stanton would have created a temporary +vacancy, but the Senate was in session to share in the appointment +of another. An _ad interim_ appointment, without authority of law, +during the session of the Senate, would place the department of +war at his control in defiance fo the Senate and the law, and would +have set an evil example, dangerous to the public safety--one which, +if allowed to pass unchallenged, would place the President above +and beyond the law. + +"The claim now made, that it was the sole desire of the President +to test the constitutionality of the tenure of office act, is not +supported by reason or by proof. He might, in August last, or at +any time since, without an _ad interim_ appointment, have tested +this law by a writ of _quo warranto_. He might have done so by an +order of removal, and a refusal of Mr. Stanton's requisitions. He +might have done so by assigning a head of department to the place +made vacant by the order of removal. Such was not his purpose or +expectation. He expected by the appointment of General Sherman at +once to get possession of the war department, so when General Thomas +was appointed there was no suggestion of a suit at law, until the +unexpected resistance of Mr. Stanton, supported by the action of +the Senate, indicated that as the only way left." + +It is difficult to convey, by extracts, a correct idea of a carefully +prepared opinion, but this statement shows my view of the case, +and, entertaining it, I felt bound, with much regret, to vote +"guilty" in response to my name, but I was entirely satisfied with +the result of the vote, brought about by the action of several +Republican Senators. There was some disposition to arraign these +Senators and to attribute their action to corrupt motives, but +there was not the slightest ground for the imputations. Johnson +was allowed to serve out his term, but there was a sense of relief +when General Grant was sworn into office as President of the United +States. + + +CHAPTER XX. +THE FORTIETH CONGRESS. +Legislation During the Two Years--Further Reduction of the Currency +by the Secretary Prohibited--Report of the Committee of Conference +--Bill for Refunding the National Debt--Amounted to $2,639,382,572.68 +on December 1, 1867--Resumption of Specie Payments Recommended-- +Refunding Bill in the Senate--Change in My Views--Debate Participated +in by Nearly Every Senator--Why the Bill Failed to Become a Law-- +Breach Between Congress and the President Paralyzes Legislation-- +Nomination and Election of Grant for President--His Correspondence +with General Sherman. + +During the 40th Congress, extending from the 4th of March, 1867, +to the 4th of March, 1869, the chief subjects of debate were the +contraction of the currency, the refunding of the public debt, the +payment of United States notes in coin, and a revision of the laws +imposing internal taxation and duties on imported goods. + +Early in the first session of this Congress, the opposition of the +people to the policy of contraction, constantly pressed by Secretary +McCulloch, became so imperative that both Houses determined to take +from him all power to diminish the volume of currency then in +circulation. On the 5th of December, 1867, Robert C. Schenck, +chairman of the committee of ways and means, reported a bill in +the following words: + +"_Be it enacted, etc._, That so much of an act entitled 'An act to +amend an act to provide ways and means to support the government,' +approved April 12, 1866, as authorizes the Secretary of the Treasury +to retire United States notes to an amount not exceeding $4,000,000 +in any one month, is hereby repealed. + +"Sec. 2. _And be it further enacted_, That from and after the +passage of this act the further reduction of the currency by retiring +or canceling United States notes shall be, and hereby is, +prohibited." + +This bill was taken up for consideration on the 7th of December, +and, after a brief debate, with little opposition, passed the House +by the vote of 127 yeas and 32 nays. It was sent to the Senate, +referred to the committee on finance, and was carefully considered. +That committee, with but two dissenting voices, directed me to +report the bill to the Senate with a single amendment. On the 9th +of January, 1868, I called up the bill for consideration, and made +a brief explanation, in which I said the committee, after full +reflection, had thought proper to recommend the passage of the bill +of the House of Representatives, in substance as it was sent to +us, only changing the phraseology. I said that the bill contemplated +further legislation during that session. It was understood by all +that some more comprehensive measures must be adopted during that +session, but until further legislation there should be no more +contraction of the currency. I thus stated the reasons which, in +my opinion, justified the passage of the bill: + +"_First_. It will satisfy the public mind that no further contraction +will be made when industry is in a measure paralyzed. We hear the +complaint from all parts of the country, from all branches of +industry, from every state in the Union, that industry for some +reason is paralyzed, and that trade and enterprise are not so well +rewarded as they were. Many, perhaps erroneous, attribute all this +to the contraction of the currency--a contraction that I believe +is unexampled in the history of any nation. $140,000,000 has been +withdrawn out of $737,000,000 in less than two years. There is no +example, that I know of, of such rapid contraction. It may be +wise, it may be beneficial, but still it has been so rapid as to +excite a stringency that is causing complaint, and I think the +people have a right to be relieved from that. + +"_Second_. This bill will restore to the legislature their power +over the currency, a power too important to be delegated to any +single officer of the government. I do not wish to renew the +discussion that occurred here two years ago on the passage of the +law of April 12, 1866; but it is still my opinion, as it has been +always, that the question of the amount of currency ought to be +fixed by Congress. We have the power to coin money, and to regulate +the value thereof. We have coined money in the form of paper money, +and certainly the power of Congress in this respect ought not to +be delegated to any single officer. If contraction ought to be +established as a policy it should be by Congress, not by the +Secretary of the Treasury, and it is not wise to confer upon any +officer of the government a power of this kind, which can be and +may be properly controlled and limited by Congress. + +"_Third_. This will strongly impress upon Congress the imperative +duty of acting wisely upon financial measures, for the responsibility +will then rest entirely upon Congress, and will not be shared with +them by the Secretary of the Treasury. + +"_Fourth_. It will encourage business men to continue old, and +embark in new, enterprises, when they are assured that no change +will be made in the measure of value without the open and deliberate +consent of their representatives. + +"These considerations are amply sufficient to justify this measure, +but it is only preliminary to others of far greater importance that +must command our attention. These involve-- + +"1. The existence of the banking system of the United States. + +"2. The time and manner of resuming specie payments. + +"3. The mode of redeeming the debt of the United States and the +kind of money in which it may be redeemed; and, in this connection, +the taxes, if any, that may be levied upon the public creditors. + +"4. Such a reduction of our expenditures and taxes as will relieve +our constituents, as far as practicable, from the burdens resulting +from the recent war." + +This led to a long debate, which continued until the 15th of January, +when the bill, as amended, passed by a vote of 33 years and 4 nays. + +These decisive votes against contraction definitely settled the +policy of the government to retain in circulation the then existing +volume of United States notes. The disagreement between the two +Houses was referred to a committee of conference, and the conferees +reported the bill in the following form: + +"_Be it enacted by the Senate and House of Representatives of the +United States of America in Congress assembled_, + +"That, from and after the passage of this act, the authority of +the Secretary of the Treasury to make any reduction of the currency, +by retiring or canceling United States notes, shall be, and is +hereby, suspended; but nothing herein contained shall prevent the +cancellation and destruction of mutilated United States notes, and +the replacing of the same with notes of the same character and +amount." + +This bill was sent to the President, and, not having been returned +by him within ten days, it became a law without his approval, under +the constitution of the United States. + +On the 17th of December, 1867, I reported from the committee on +finance a bill for refunding the national debt and for a conversion +of the notes of the United States. This bill was accompanied by +an elaborate report. This report was carefully prepared by me, +and met, I believe, the general approval of the committee on finance. +In that Congress there were but five Democratic Senators, and it +so happened that all the members of the committee on finance were +Republicans, but these represented widely different opinions on +financial subjects. I undertook, in this report, to deal in a +general way with these topics. Upon a careful reading of it now +I find but little that I do not approve. The general policy set +out in this report was subsequently embodied into laws, but the +measures relating to refunding the debt and the resumption of specie +payments were not adopted until several years after the date of +the report. + +The ascertained debt on the first day of December, 1867, as stated +by the Secretary of the Treasury, was $2,639,382,572.68, divided +as follows: + +Debt bearing coin interest. +5 per cent. bonds, 10-40's, and old fives $205,532,580.00 +6 per cent. bonds of 1867 and 1868 . . . . 14,690,941.80 +6 per cent. bonds, 1881 . . . . . . . . . 282,731,550.00 +6 per cent. 5-20 bonds . . . . . . . . . . 1,324,412,550.00 +Navy pension fund . . . . . . . . . . . . 13,000,000.00 + ---------------- + $1,840,367,891.80 +Debt bearing currency interest. +6 per cent. bonds . . . . . . . . . . . . $18,601,000.00 +3-year compound interest notes . . . . . . 62,249,360.00 +3-year 7-30 notes . . . . . . . . . . . . 285,587,100.00 +3 per cent. certificates . . . . . . . . . 12,855,000.00 + ---------------- + $379,292,460.00 +Matured debt not presented for payment. +3 year 7-30 notes, due August 15, 1867 . . $2,855,400.00 +Compound interest notes, matured June 10, + July 15, August 15, and October 15, 1867 7,065,750.00 +Bonds, Texas indemnity . . . . . . . . . . 260,000.00 +Treasury notes, acts July 17, 1861 and + prior thereto . . . . . . . . . . . . . 163,011.64 +Bonds, April 15, 1842 . . . . . . . . . . 54,061.64 +Treasury notes, March 3, 1863 . . . . . . 868,240.00 +Temporary loan . . . . . . . . . . . . . . 2,880,900.55 +Certificates of indebtedness . . . . . . . 31,000.00 + ---------------- + $14,178,363.83 +Debt bearing no interest. +United States notes . . . . . . . . . . . $356,212,473.00 +Fractional currency . . . . . . . . . . . 30,929,984.05 +Gold certificates of deposit . . . . . . . 18,401,400.00 + ---------------- + $405,543,857.05 + Total debt . . . . . . . . . . . . . . . . . . . . . . . + $2,639,382,572.68 +Amount in treasury, coin . . . . . . . . . $100,690,645.69 +Amount in treasury, currency . . . . . . . 37,486,175.24 + Amount of debt less cash in treasury . . . . . . . . . . . + $2,501,205,751.75 + +Besides the amounts thus stated there were large balances due to +loyal states, upon accounts not then rendered or ascertained, and +to individuals for losses sustained during the war. + +The ascertained debt consisted of twenty different forms of liability, +some payable in coin and some in lawful money. Much of this debt +was due on demand, but the great body of it was payable in from +one to twenty years, while the unascertained debt was being stated +from time to time and had to be met from accruing revenues. Nearly +$300,000,000 of debt had been paid out of current revenue since +the close of the war. The first recommendation of the committee +was that the debt should be refunded as rapidly as practicable into +bonds bearing as low a rate of interest as possible, payable in +twenty or thirty years, but redeemable at the pleasure of the United +States in five or ten years. This recommendation was based on the +fixed policy of the government to limit the duration of a bond +within its lifetime, and thus leave it to the option of the government +to pay its indebtedness and to reduce the rate of interest after +a brief period, if the condition of the public revenues and of the +money market should enable it to do so. + +Here the question arose whether the bonds known as the 5-20 bonds +could be paid in lawful money after the period of five years, when, +by their terms, they were redeemable. These bonds promised to pay +so many dollars. Other bonds were specifically payable in coin, +and still other bonds were payable in lawful money; that is, in +United States notes. These notes were then at a discount, being +worth in the market about 88 cents in coin. But the notes were +obligations of the United States, and it was the duty, and then +within the power of the United States, to advance these notes to +par in coin. + +The majority of the committee, I among them, believed that the +United States should not take advantage of its own wrong, in not +redeeming its notes in coin, but should either advance these notes +to par in coin, or pay its bonds in coin. The committee, therefore, +recommended that both the notes and bonds should be received in +exchange for the funding bonds, and that the notes should be reissued +and maintained at par with coin, and be supported by a reserve of +coin ample to maintain the notes at par with coin. In other words, +the United States would resume specie payments. The committee +expressed the opinion that, with the system of taxation then in +existence, this policy of refunding and resumption could be +maintained, and that the rate of interest then paid could be reduced +to four or five per cent., and the money then in circulation would +be kept at par with coin at the cost only of the interest on the +bullion and coin held to meet any notes presented for redemption. +The committee also recommended that the internal and tariff taxes +be revised to correct irregularities or defects, and to repeal such +as were oppressive. + +While the committee opposed any contraction of the currency it also +opposed any increase of it. The general theory of the report was +to advance both bonds and notes to par in coin, and to issue bonds +in such form and terms that the government could redeem them, or +renew them at lower rates of interest. + +The report states: + +"Your committee are therefore of opinion that no legal tender notes, +beyond the amount now limited by law, should be issued under any +pressure of financial or political necessity until they are +convertible into gold and silver. Our duty is to elevate the +'greenback,' the standard of national credit, to the standard of +gold, the money of the world. Until then we are not on a substantial +foundation. Let us make the dollar of our promise in the pocket +of a laboring man equal to the dollar of our mint. The rapidity +of the process is a question of public policy. It may be by +gradually diminishing the volume of currency, or be left at its +present amount until increased business or improved credit bring +it up to the specie standard." + +The refunding bill was taken up by the Senate on the 27th of +February, 1868, and was fully discussed by me. After stating its +general objects I said: + +"It is with this view, and actuated by this principle, that the +committee on finance have endeavored to make this a bill of relief, +reducing, if possible, consistent with the public faith, the interest +of the public debt, and giving increased value to United States +notes. We have endeavored in this bill to accomplish three results: +First, to reduce the rate of interest with the voluntary consent +of the holders of our securities; second, to make a distinct +provision for the payment of the public debt; and third, to give +increased value to United States notes, and to provide for a gradual +resumption of specie payments. All these are objects admitted to +be of the highest importance. The only question is, whether the +measure proposed tends to accomplish them." + +I then quoted the example of the United States and Great Britain +in reducing the rate of interest on public securities. I do not +approve all I said in that speech. It has been frequently quoted +as being inconsistent with my opinions and action at a later period. +It is more important to be right than to be consistent. I then +proposed to use the doubt expressed by many people as to the right +of the government to redeem the 5-20 bonds in the legal tender +money in circulation when the bonds were sold, as an inducement to +the holders of bonds to convert them into securities bearing a less +rate of interest but specifically payable in coin. Upon this policy +I changed my opinion. I became convinced that it was neither right +nor expedient to pay these bonds in money less valuable than coin, +that the government ought not to take advantage of its neglect to +resume specie payments after the war was over, by refusing the +payment of the bonds with coin. I acted on this conviction when +years afterwards the resumption act was adopted, and the beneficial +results from this action fully justified my change of opinion. + +The debate on this bill was participated in by nearly every Senator, +and was conceded to be the most comprehensive and instructive debate +on financial questions for many years. + +The bill, as it then stood, authorized the Secretary of the Treasury +to issue registered or coupon bonds of the United States, in such +form and of such denominations as he might prescribe, payable, +principal and interest, in coin, and bearing interest at the rate +of five per cent. per annum, payable semi-annually, such bonds to +be payable forty years from date and to be redeemable in coin after +ten years. + +It authorized the exchange of the bonds commonly known as the 5-20 +bonds for the bonds authorized by that bill. It also authorized +the holders of United States notes to the amount of $1,000, or any +multiple of that sum, to convert them into the five per cent. bonds +provided for by the bill. This bill passed the Senate on the 14th +of July, 1868. It passed the House of Representatives soon after, +with amendments that were disagreed to by the Senate. The bill +and amendments were referred to a conference committee which reported +a modified bill which passed both Houses and was sent to President +Johnson, but at so late a period of the session that it was not +approved by him and thus failed to become a law. + +The committee on finance at the next and closing session of that +Congress deemed it useless to report another funding bill, and on +the 16th of December, 1868, I reported, by direction of that +committee, the following resolution: + +"_Resolved by the Senate_, That neither public policy nor the good +faith of the nation will allow the redemption of the 5-20 bonds +until the United States shall perform its primary duty of paying +its notes in coin or making them equivalent thereto; and measures +shall be adopted by Congress to secure the resumption of specie +payments at as early a period as practicable." + +This resolution was the foundation of the act "to strengthen the +public credit," the first act subsequently adopted in General +Grant's administration. Neither this nor any other financial +measure was pressed to a conclusion, as we knew that any measure +that would be sanctioned by Congress would probably be vetoed by +the President. This, however, did not stop the almost continuous +financial debate which extended to the currency, banking, funding +and taxation. The drift of opinion was in favor of resumption +without contraction, and funding at low rates of interest on a coin +basis. The wide breach between Congress and the President paralyzed +legislation. But one vital question had been settled, that no +further contraction of the currency should occur; and it was well +settled, though not embodied in law, that no question would be made +as to the payment of bonds in coin. + +While Congress was drifting to a sound financial policy, the +President and his Secretary of the Treasury were widely divergent, +the former in favor of repudiation, and the latter in favor of +paying and canceling all United States notes. + +President Johnson, in his last annual message to Congress, on the +9th of December, 1868, substantially recommended a repudiation of +the bonds of the United States, as follows: + +"Upon this statement of facts it would seem but just and equitable +that the six per cent. interest now paid by the government should +be applied to the reduction of the principal in semi-annual +installments, which in sixteen years and eight months would liquidate +the entire national debt. Six per cent. in gold would, at present +rates, be equal to nine per cent. in currency, and equivalent to +the payment of the debt one and half times in a fraction less than +seventeen years. This, in connection with the other advantages +derived from their investment, would afford to the public creditors +a fair and liberal compensation for the use of their capital, and +with this they should be satisfied. The lessons of the past admonish +the lender that it is not well to be over anxious in exacting from +the borrower rigid compliance with the letter of the bond." + +While the President wished to apply the interest on the United +States bonds to the redemption of the principal, the Secretary of +the Treasury was pressing for the restoration of the specie standard. +I quote from his report to Congress, made on the same day the +message of the President was sent us: + +"The first and most important of these measures are those which +shall bring about, without unnecessary delay, the restoration of +the specie standard. The financial difficulties under which the +country is laboring may be traced directly to the issue, and +continuance in circulation, of irredeemable promises as lawful +money. The country will not be really and reliably prosperous +until there is a return to specie payments. The question of a +solvent, convertible currency, underlies all the other financial +and economical questions. It is, in fact, a fundamental question; +and until it is settled, and settled in accordance with the teachings +of experience, all attempts in other financial and economical +reforms will either fail absolutely, or be but partially successful. +A sound economy is the lifeblood of a commercial nation. If this +is debased the whole current of its commercial life must be disordered +and irregular. The starting point in reformatory legislation must +be here. Our debased currency must be retired or raised to the +par of specie, or cease to be lawful money, before substantial +progress can be made with other reforms." + +Under these circumstances, it was manifest that no wise financial +legislation could be secured until General Grant should become +President of the United States. + +The Republican national convention met at the city of Chicago, on +the 20th of May, 1868. It declared its approval of the reconstruction +policy of Congress, denounced all forms of repudiation as a national +crime, and pledged the national good faith to all creditors at home +and abroad, to pay all public indebtedness, not only according to +the letter, but the spirit, of the law. It favored the extension +of the national debt over a fair period for redemption, and the +reduction of the rate of interest whenever it could be honestly +made. It arraigned, with severity, the treachery of Andrew Johnson, +and deplored the tragic death of Abraham Lincoln. The entire +resolutions were temperate in tone; they embodied the recognized +policy of the Republican party, and made no issue on which Republicans +were divided. + +The real issue was not one of measures, but of men. The nomination +of General Grant for President, and Schuyler Colfax for Vice +President, upon the basis of reconstruction by loyal men, was +antagonized by the nomination, by the Democratic convention, of +Horatio Seymour for President, and Francis P. Blair for Vice +President, upon the basis of universal amnesty, and immediate +restoration to power, in the states lately in rebellion, of the +men who had waged war against the government. + +In this contest, Grant was the representative Union soldier of the +war, and Seymour was the special representative of the opponents +in the north to the war. Grant received 197 electoral votes, and +Seymour 72. + +A few hours in advance of the meeting of the national convention, +there was a great mass meeting of soldiers and sailors of the war, +a delegation from whom, headed by General Lucius Fairchild, of +Wisconsin, entered the convention after its organization and +presented this resolution: + +"_Resolved_, That as the soldiers and sailors, steadfast now as +ever to the Union and the flag, fully recognize the claims of Gen. +Ulysses S. Grant to the confidence of the American people, and +believing that the victories won under his guidance in war will be +illustrated by him in peace by such measures as will secure the +fruits of our exertions and restore the Union upon a loyal basis, +we declare our deliberate conviction that he is the choice of the +soldiers and sailors of the Union for the office of President of +the United States." + +This resolution was received with great applause. Henry S. Lane, +of Indiana, leaped upon a chair, and moved to nominate Grant by +acclamation. This was done without rules and amid great excitement. + +I need not say that I gave to General Grant my cordial and active +support. From the beginning of the canvass to the end, there was +no doubt about the result. I spoke on his behalf in several states +and had frequent letters from him. Assuming that his election was +already foreordained, I invited him to stop with me in Mansfield, +on his way to Washington, and received from him the following +autograph letter, which, though dated at Headquarters Army of the +United States, was written at Galena, Illinois: + + "Headquarters Army of the United States,} + "Washington, D. C., October 26, 1868. } +"Dear Senator:--Your invitation to Mrs. Grant and myself to break +our journey east and spend a day or two with you was duly received, +and should have been sooner acknowledged. I thank you for the +invitation and would gladly accept it, but my party will be large +and having a special car it will inconvenience so many people to +stop over. Mrs. Grant too and her father are anxious, when they +start, to get through to Washington before they unpack. + + "Yours truly, + "U. S. Grant. +"Hon. J. Sherman, U. S. S." + +On the same day he wrote a letter to General Sherman, which was +referred to me by the latter. I regard this letter, which exhibits +closely the cordial relations existing, at the time, between the +two men, as of sufficient interest to justify its publication: + + "Headquarters Army of the United States,} + "Washington, D. C., October 26, 1868. } +"Dear General:--Your letter inclosing one from your brother was +duly received. As I did not want to change your determination in +regard to the publication of the correspondence between us, and am +getting to be a little lazy, I have been slow in answering. I had +forgotten what my letter to you said but did remember that you +spoke of the probable course the Ewings would take, or something +about them which you would not probably want published with the +letters. The fact is, general, I never wanted the letters published +half so much on my own account as yours. There are a great many +people who do not understand as I do your friendship for me. I do +not believe it will make any difference to you in the end, but I +do fear that, in case I am elected, there will be men to advocate +the 'abolition of the general' bill who will charge, in support of +their motion, lack of evidence that you supported the Union cause +in the canvass. I would do all I could to prevent any such +legislation, and believe that without my doing anything the confidence +in you is too genuine with the great majority of Congress for any +such legislation to succeed. If anything more should be necessary +to prove the falsity of such an assumption the correspondence +between us heretofore could then be produced. + +"I agree with you that Sheridan should be left alone to prosecute +the Indian War to its end. If no treaty is made with the Indians +until they can hold out no longer we can dictate terms, and they +will then keep them. This is the course that was pursued in the +northwest, where Crook has prosecuted war in his own way, and now +a white man can travel through all that country with as much security +as if there was not an Indian in it. + +"I have concluded not to return to Washington until after the +election. I shall go very soon after that event, however. My +family are all well and join me in respects to Mrs. Sherman and +the children. + + "Yours truly, + "U. S. Grant. +"Lt. Gen. W. T. Sherman, U. S. Army." + +In the spring of 1871 there was a good deal of feeling against +Grant, and some opposition indicated to his renomination for the +presidency. Several influential papers had recommended the nomination +of General Sherman, who then, as always afterwards, had resolutely +announced his purpose not to allow his name to be used in connection +with the office of President. This suggestion arose out of the +feeling that injustice had been done to General Sherman by the +Secretary of War, Mr. Belknap, who practically ignored him, and +issued orders in the name of the President, greatly interfering +with the personnel of the army. This led to the transfer of General +Sherman from Washington to St. Louis. General Sherman made no +complaint of Grant, who had the power to control the action of the +Secretary of War, but the general impression prevailed that the +friendly relations that had always subsisted between the President +and General Sherman had been disturbed, but this was not true. I +have no doubt that Grant, in the following letter, stated truthfully +his perfect willingness that General Sherman should, if he wished, +be made his successor as President: + + "Long Branch, N. J., June 14, 1871. +"Dear Senator:--Being absent at West Point until last evening, for +the last week, your letter of the 5th inst., inclosing one to you +from General Sherman, is only just received. Under no circumstances +would I publish it; and now that the 'New York Herald' has published +like statements from him it is particularly unnecessary. I think +his determination never to give up his present position a wise one, +for his own comfort, and the public, knowing it, will relieve him +from the suspicion of acting and speaking with reference to the +effect his acts and sayings may have had upon his claims for +political preferment. If he should ever change his mind, however, +no one has a better right than he has to aspire to anything within +the gift of the American people. + + "Very truly yours, + "U. S. Grant. +"Hon. J. Sherman, U. S. S." + + +CHAPTER XXI. +BEGINNING OF GRANT'S ADMINISTRATION. +His Arrival at Washington in 1864 to Take Command of the Armies of +the United States--Inaugural Address as President--"An Act to +Strengthen the Public Credit"--Becomes a Law on March 19, 1869-- +Formation of the President's Cabinet--Fifteenth Amendment to the +Constitution--Bill to Fund the Public Debt and Aid in the Resumption +of Specie Payments--Bill Finally Agreed to by the House and Senate +--A Redemption Stipulation Omitted--Reduction of the Public Debt-- +Problem of Advancing United States Notes to Par with Coin. + +President Grant entered into his high office without any experience +in civil life. In his training he was a soldier. His education +at West Point, his services as a subordinate officer in the Mexican +War, and as the principal officer in the Civil War of the Rebellion, +had demonstrated his capacity as a soldier, but he was yet to be +tested in civil life, where his duties required him to deal with +problems widely differing from those he had successfully performed +in military life. I do not recall when I first met him, but was +confident it was before his coming to Washington, in March, 1864, +to take command of the armies of the United States. His arrival +in Washington then was not generally known until he entered the +dining hall at Willard's hotel. He came in alone, and was modestly +looking for a vacant seat when I recognized him and went to him +and invited him to a seat at my table. He quietly accepted, and +then the word soon passed among the many guests to the tables, that +General Grant was there, and something like an ovation was given +him. His face was unknown, but his name and praise had been sounded +for two years throughout the civilized world. His coming to take +full command of the Union forces was an augury of success to every +loyal citizen of the United States. His personal memoirs, written +in the face of death, tell the story of his life in a modest way, +without pretension or guile. I am not sure that he added to his +fame by his eight years of service as President of the United +States, but what he did in subduing the Rebellion will always keep +his name among those of the greatest benefactors of his country. +He was elected because of his military services, and would have +been elected in 1868 by any party that put him in nomination, +without respect to platform or creed. + +He opened his inaugural address with these words: + +"Your suffrages, having elected me to the office of President of +the United States, I have, in conformity with the constitution of +our country, taken the oath of office prescribed therein. I have +taken this oath without mental reservation and with the determination +to do to the best of my ability all that it requires of me. The +responsibilities of the position I feel but accept them without +fear. The office has come to me unsought. I commence its duties +untrammeled. I bring to it a conscientious desire and determination +to fill it to the best of my ability to the satisfaction of the +people. + +"On all leading questions agitating the public mind I will always +express my views to Congress, and urge them according to my judgment; +and when I think it advisable will exercise the constitutional +privilege of interposing a veto to defeat measures which I oppose. +But all laws will be faithfully executed whether they meet my +approval or not. + +"I shall on all subjects have a policy to recommend, but none to +enforce against the will of the people. Laws are to govern all +alike, those opposed as well as those who favor them. I know no +method to secure the repeal of bad or obnoxious laws so effective +as their stringent execution." + +And closed with these words: + +"In conclusion I ask patient forbearance one toward another throughout +the land, and a determined effort on the part of every citizen to +do his share toward cementing a happy Union; and I ask the prayers +of the nation to Almighty God in behalf of this consummation." + +I believe he strictly performed what he thought was his duty, and +if he erred, it was from a want of experience in the complicated +problems of our form of government. The executive department of +a republic like ours should be subordinate to the legislative +department. The President should obey and enforce the laws, leaving +to the people the duty of correcting any errors committed by their +representatives in Congress. + +The first act of the 41st Congress, entitled "An act to strengthen +the public credit," was introduced in the House of Representatives +by General Schenck, on the 12th of March, 1869, and was passed the +same day. It came to the Senate on the 15th of March, and, on my +motion, was substituted for a similar bill, reported from the +committee on finance, and, after a brief debate, was passed by the +decisive vote of 42 yeas and 13 nays, as follows: + +"That in order to remove any doubt as to the purpose of the government +to discharge all just obligations to the public creditors, and to +settle conflicting questions and interpretations of the law by +virtue of which said obligations have been contracted, it is hereby +provided and declared that the faith of the United States is solemnly +pledged to the payment in coin, or its equivalent, of all obligations +of the United States not bearing interest, known as United States +notes, and of all interest-bearing obligations of the United States, +except in cases where the law authorizing the issue of any such +obligations has expressly provided that the same may be paid in +lawful money or other currency than gold and silver. But none of +said interest-bearing obligations not already due shall be redeemed +or paid before maturity, unless at such time United States notes +shall be convertible into coin at the option of the holder, or +unless at such time bonds of the United States bearing a lower rate +of interest than the bonds to be redeemed can be sold at par in +coin. And the United States also solemnly pledges its faith to +make provision, at the earliest practicable period, for the redemption +of United States notes in coin." + +It was approved by the President and became a law on the 19th of +March. Thus the controversy as to the payment of bonds in coin +was definitely decided. + +But little else of importance was done by Congress during this +session. The usual general appropriation bill for the Indian +department having failed in the previous Congress, a bill for that +purpose was introduced in the House of Representatives and became +a law on the 10th of April. The bill to provide for deficiencies +was passed on the same day. A change was made in the tax on +distilled spirits and tobacco, and provision was made for submitting +the constitutions of Virginia, Mississippi and Texas to a vote of +the people. A number of measures of local importance were passed, +and, on the 10th of April, the Congress adjourned without day. + +The Senate convened in pursuance of a proclamation of the President +immediately on the adjournment of Congress, and after a few days, +confined mainly to executive business, adjourned. + +The early movements of Grant as President were very discouraging. +His attempt to form a cabinet without consultation with anyone, +and with very little knowledge, except social intercourse with the +persons appointed, created a doubt that he would not be as successful +as a President as he had been as a general, a doubt that increased +and became a conviction in the minds of many of his best friends. +The appointments of Stewart and Borie were especially objectionable. +George S. Boutwell was well fitted for the office of Secretary of +the Treasury, to which he was appointed after Stewart was excluded +by the law. Washburne was a man of ability and experience, but he +was appointed Secretary of State only for a brief time, and was +succeeded by Hamilton Fish. Mr. Fish was eminently qualified for +the office, and during both of the terms of Grant discharged the +duties of it with great ability and success. Jacob D. Cox, of +Ohio, was an educated gentleman, a soldier of great merit, and an +industrious and competent Secretary of the Interior. + +The impression prevailed that the President regarded these heads +of departments, invested by law with specific and independent +duties, as mere subordinates, whose function he might assume. This +is not the true theory of our government. The President is intrusted +by the constitution and laws with important powers, and so by law +are the heads of departments. The President has no more right to +control or exercise the powers conferred by law upon them than they +have to control him in the discharge of his duties. It is especially +the custom of Congress to intrust to the Secretary of the Treasury +specific powers over the currency, the public debt and the collection +of the revenue. If he violates or neglects his duty he is subject +to removal by the President, or impeachment by the House of +Representatives, but the President cannot exercise or control the +discretion reposed by law in the Secretary of the Treasury, or in +any head or subordinate in any department of the government. This +limitation of the power of the President, and the distribution of +power among the departments, is an essential requisite of a republican +government, and it is one that an army officer, accustomed to give +or receive orders, finds it difficult to understand and to observe +when elected President. + +Congress convened on the 6th of December, 1869. The chief +recommendations submitted to Congress by the President related to +the gradual reconstruction of the states lately in rebellion, to +the resumption of specie payments and the reduction of taxation. +The relations of Great Britain and the United States growing out +of the war were treated as a grave question, and a hope was expressed +that both governments would give immediate attention to a solution +of the just claims of the United States growing out of the Civil +War. The message was brief, modest, conservative and clear. He +closed by saying that on his part he promised a rigid adherence to +the laws and their strict enforcement. + +The most important measure consummated during this Congress was +the adoption of the 15th amendment of the constitution of the United +States, declared, in a proclamation of the Secretary of State, +dated March 30, 1870, to have been ratified by the legislatures of +twenty-nine of the thirty-seven states, as follows: + +"The right of citizens of the United States to vote shall not be +denied or abridged by the United States, or by any state, on account +of race, color, or previous condition of servitude." + +It is a question of grave doubt whether this amendment, though +right in principle, was wise or expedient. The declared object +was to secure impartial suffrage to the negro race. The practical +result has been that the wise provisions of the 14th amendment have +been modified by the 15th amendment. The latter amendment has been +practically nullified by the action of most of the states where +the great body of this race live and will probably always remain. +This is done, not by an express denial to them of the right of +suffrage, but by ingenious provisions, which exclude them on the +alleged ground of ignorance, while permitting all of the white +race, however ignorant, to vote at all elections. No way is pointed +out by which Congress can enforce this amendment. If the principle +of the 14th amendment had remained in full force, Congress could +have reduced the representation of any state, in the proportion +which the number of the male inhabitants of such state, denied the +right of suffrage, might bear to the whole number of male citizens +twenty-one years of age, in such state. This simple remedy, easily +enforced by Congress, would have secured the right of all persons, +without distinction of race or color, to vote at all elections. +The reduction of representation would have deterred every state +from excluding the vote of any portion of the male population above +twenty-one years of age. As the result of the 15th amendment, the +political power of the states lately in rebellion has been increased, +while the population, conferring this increase, is practically +denied all political power. I see no remedy for this wrong except +the growing intelligence of the negro race, which, in time, I trust, +will enable them to demand and to receive the right of suffrage. + +The most important financial measure of that Congress was the act +to refund the national debt. The bonds known as the 5-20's, bearing +interest at six per cent., became redeemable, and the public credit +had so advanced that a bond bearing a less rate of interest could +be sold at par. The committee on finance of the Senate, on the +3rd day of February, 1870, after more care and deliberation, than, +so far as I know, it has ever bestowed on any other bill, finally +reported a bill to fund the public debt, to aid in the resumption +of specie payments, and to advance the public credit. + +The first section authorized the issue of $400,000,000 of bonds, +redeemable in coin at the pleasure of the United States, at any +time after ten years, bearing interest at five per cent. + +The second section authorized the issue of bonds to the amount of +$400,000,000, redeemable at the pleasure of the government, at any +time after fifteen years, and bearing interest at four and a half +per cent. + +The third section authorized the issue of $400,000,000 of bonds, +redeemable at any time after twenty years, and bearing interest at +the rate of four per cent. + +The proceeds of all these bonds were to be applied to the redemption +of 5-20 and 10-40 bonds, and other obligations of the United States +then outstanding. + +It will be perceived that this bill provided for the issue of +securities, all of which were redeemable within twenty years, and +two-thirds of which were redeemable within fifteen years, so that +if the bill, as reported by the committee on finance, had become +the law, no such difficulty as we labored under eighteen years +later, when we had a large surplus revenue, would have existed. + +The bill passed the Senate, in substantially the form reported from +the committee on finance, by the large vote of 33 to 10, and was, +perhaps, the most carefully prepared of any of the financial measures +of the government. + +In opening the debate, I called the attention of the Senate to the +great advantage the government had derived from making its bonds +redeemable at brief periods, like the 5-20 bonds, the 10-40 bonds, +and the treasury notes. I also called attention to the fact that +the same principle of maintaining the right to redeem had been +ingrafted in the bill then before the Senate, that the duration of +the bonds was divided into three periods of ten, fifteen, and twenty +years, during which time, by the gradual application of the surplus +revenue, the whole debt might be paid. This was the bill sent by +the Senate to the House of Representatives, and if it had been +adopted by the House, there would have been no trouble about the +application of the surplus revenue, but by common consent it would +have been used in the speedy extinction of the public debt. + +The bill was sent to the House of Representatives on the 11th of +March, and there seems to have slept for nearly three months without +any action on the part of the House. + +On the 6th of June the committee on ways and means reported House +bill 2167, covering the same subject-matters as were contained in +the Senate bill. The consideration of this bill was commenced, by +sections, on the 30th of June. The material part of the first +section of this bill is as follows: + +"That the Secretary of the Treasury is hereby authorized to issue, +in a sum or sums not exceeding in the aggregate $1,000,000,000, +coupon or registered bonds of the United States, in such form as +he may prescribe, and of denomination of $50, or some multiple of +that sum, redeemable in coin of the present standard value at the +pleasure of the United States after thirty years from the date of +their issue, and bearing interest payable semi-annually in such +coin at the rate of four per cent. per annum." + +Thus it will be perceived that instead of the three series of bonds +provided by the Senate, the House proposed to authorize the issue +of $1,000,000,000, redeemable in coin after thirty years from the +date of their issue, with interest at four per cent. This difference +in the description of the bonds was the chief difference between +the propositions of the House and the Senate. To emphasize this +difference I quote what was said by the chairman of the House +committee, Mr. Schenck, in reporting the bill: + +"It is a proposition to refund a portion of the public debt of the +country at a very much lower rate of interest. It is a proposition +that $1,000,000,000 of that debt shall take the form of bonds, upon +which the United States will agree to pay only four per cent. per +annum. But, in order to make those bonds acceptable to capitalists +at home and abroad, further provision is made that the bonds +themselves shall have a longer time to run, not merely for thirty +years, but that they shall only be redeemable after thirty years; +thus giving them, without the objections, the advantages which in +a great degree attach to a perpetual loan." + +This bill, with a very limited debate, passed the House on the 1st +of July, and then immediately was offered as a substitute for the +Senate bill, and was adopted. + +Those two rival propositions, differing mainly upon the question +of the character of the bonds to be issued, were sent to a committee +of conference, composed on the part of the Senate of Messrs. Sherman, +Sumner and Davis. The chief controversy in the conference was as +to the description of funding bonds to be provided for. After many +meetings it was finally agreed that the bonds authorized should be +$200,000,000 five per cent. bonds, $300,000,000 four and a half +per cent. bonds, of the character described in the Senate bill, +and $1,000,000,000 of four per cent. bonds, as described in the +House bill. In other words, it was a compromise which, like many +other compromises, was in its results an injury of great magnitude, +but it was an honest difference of opinion between the Senate and +the House, in which, tested by the march of time, the Senate was +right and the House was wrong. But it was perfectly manifest that +without this concession by the Senate to the House, the bill could +not have passed, and even with this concession, the first report +of the committee of conference was disagreed to by the House, +because of certain provisions requiring the national banks to +substitute the new bonds as the basis of banking circulation. + +This disagreement by the House compelled a second committee of +conference, in which the contested banking section was stricken +out, and the bill agreed to as it now stands on the statute books. + +And thus thirty-year securities, subsequently at a premium of more +than twenty-five per cent., were forced into the law by the determined +action of the House. + +This proved to be an error. No bonds should have been authorized +that did not contain a stipulation that the government might pay +them at pleasure, after a brief period and before they became due. +This stipulation during the war was inserted in the 5-20 and the +10-40 bonds. Its wisdom and importance were demonstrated by the +early substitution of bonds bearing a lower rate of interest for +the 5-20 six per cent. bonds. When this precedent was cited, and +its saving to the government shown, it was strongly urged by the +House conferees that such a provision would prevent the sale of +bonds, and that there was no probability that bonds bearing less +than four per cent. could be sold at any time at par. This was +proven to be an error within a short period, for securities of the +United States bearing three per cent. interest have been sold at +par. + +Some years later, Senator Beck, of Kentucky, arraigned me for +consenting to the issue of bonds running thirty years, but I was +able to show by the public records that I resisted this long duration +of the four per cent. bonds, that the House insisted upon it, and +that Mr. Beck, then a Member of the House, voted for it. The same +objection was made by the Senate conferees to the bonds bearing +four and a half and five per cent., that no stipulation was made +authorizing the government to anticipate the payment of these bonds. +Under the Senate bill the bonds would have been redeemable in a +brief period, and would, no doubt, have been redeemed by bonds +bearing four, three and a half, or three per cent. interest. + +The bill, as it passed, authorized the conversion of all forms of +securities, then outstanding, into the bonds provided for by the +refunding act at par one with the other. The Secretary of the +Treasury could sell the bonds provided for by the refunding act at +par, and with the proceeds pay off the then existing securities as +they became redeemable. In the discussion of this bill in the +Senate, on the 28th of February, 1870, I made a carefully prepared +speech, giving a detailed history of the various securities +outstanding, and expressed the confident opinion that the existing +coin bonds bearing six per cent. interest, and other securities +bearing interest in lawful money, could be refunded into bonds +running for a short period, bearing a reduced rate of interest. +I said: + +"After a long and memorable debate of over two months in both Houses +of Congress, the act of February 25, 1862, was adopted. That was +a revolutionary act. It was a departure from every principle of +the financial policy of this government from its foundation. It +overthrew, not only the mode and manner of borrowing money, but +the character of our public securities, and was the beginning of +a new financial system, unlike anything that had been ventured upon +by any people in the world before. This new policy was adopted +under the pressure of the severest necessities, and only because +of those necessities, and was intended to meet a state of affairs +never foreseen by the framers of the constitution. + +"Now, sir, it is important to understand the principles of this +act; for this act was the foundation of all the financial measures +during the war. It was upon the basis of this act, enlarged and +modified from time to time, that we were enabled to borrow +$3,000,000,000 in three years and to put down the most formidable +rebellion in modern history. This act was based upon certain +fundamental conditions. + +"Extraordinary power was conferred upon the Secretary of the Treasury +to borrow money in almost any form, at home or abroad, practically +without limitation as to amount, or with limits repeatedly enlarged. +Every form of security which the ingenuity of man could devise was +provided for by this act or the acts amending it. Under these acts +bonds were issued, payable in twenty years, treasury notes were +issued, certificates of indebtedness, compound-interest notes, and +other forms of indebtedness, with varying rates of interest. There +were, however, distinct limitations upon the nature and character +of these loans. It was stipulated first, that more than six per +cent. interest in gold should not be paid on the bonds issued, nor +more than seven and three-tenths interest in currency should be paid +on the notes issued; and _second, all the loans provided by this +act were short loans_, redeemable within a short period of time at +the pleasure of the United States. Thus the gold bonds were +redeemable after five years, the treasury notes were redeemable +after three years, and all forms of security were within the power +of the United States at the end of five years at furthest. And +third, no securities were to be sold at less than par. Their +unavoidable depreciation was measured, not by the rate of their +discount, but by the depreciation of the currency. We held our +bonds at par in paper money, though at times they were worth only +forty per cent. of gold. . . . + +"Now, Mr. president, it may be proper to state the reasons for this +policy. Short loans were adopted that we might not bind the future +to the payment of usurious rates of interest. We recognized the +existence of a great pressing necessity that would tend to depreciate +the public credit; and we took care, therefore, not to make these +loans for a long period, so as to bind the future to the payment +of the rates which we were then compelled to pay. + +"We provided for gold interest and gold revenue, to avoid the +extreme inflations of an irredeemable currency. We wished to rest +our paper fabric on a coin basis, and to keep constantly in view +ultimate specie payments. I believe but for that provision in the +loan act of February 25, 1862, that in 1864 our financial system +would have been utterly overthrown. There was nothing to anchor +it to the earth except the collection of duties in coin and the +payment of the interest on our bonds in coin. + +"But, sir, the most important and the most revolutionary principle +of the act of February 25, 1862, was the legal tender clause. This +was a measure of imperious and pressing necessity. I can recall +very well the debates in the Senate and in the House of Representatives +upon the legal tender clause. We were then standing in the face +of a deficit of some $70,000,000 of unpaid requisitions to our +soldiers. Creditors in all parts of the country, among them the +most powerful corporations of this country, had refused our demand +notes, then very slightly depressed. We were under the necessity +of raising two or three million dollars per day. We were then +organizing armies unheard of before. We stood also in the presence +of defeat, constant and imminent, which fell upon our armies in +all parts of the country. It was before daylight was shed upon +any part of our military operations. We adopted the legal tender +clause then as an absolute expedient. Remembering the debate, I +know with what slow steps the majority of the Senate came to the +necessity of adopting legal tenders." + +The debt of the United States on the 31st of August, 1866, when it +reached its maximum, amounted to $2,844,649,627. On the 1st of +March, 1870, the debt had been reduced to less than $2,500,000,000, +of which about $400,000,000 was in United States notes, for the +redemption of which no provision was made. It was the confident +expectation of Congress, which proved to be correct, that before +the refunding operations were complete, the debt would be gradually +reduced, so that the sum of $1,500,000,000, provided for in the +law, would be sufficient to refund all existing debts, except United +States notes, into the new securities. + +The process of refunding progressed slowly, was confined to the +five per cent. bonds, and was somewhat interrupted by the financial +stringency of 1873. + +By the act approved January 20, 1871, the amount of five per cent. +bonds authorized by the act approved July 14, 1870, was increased +to $500,000,000, but the act was not to be construed to authorize +any increase of bonds provided for by the refunding act. + +Prior to the 24th of August, 1876, there had been sold, for refunding +purposes, the whole of the $500,000,000 five per cents. authorized +by that act, and on that day Lot M. Morrill, Secretary of the +Treasury, entered into a contract for the sale of $40,000,000 of +the four and a half per cent. bonds authorized by the refunding +act. By this process of refunding an annual saving had been made +of $5,400,000 a year, by the reduction of interest in the sale of +$540,000,000 bonds. On the 9th day of June, 1877, I, as Secretary +of the Treasury, terminated the contract made by Mr. Morrill, my +predecessor, and placed on the market the four per cent. bonds +provided for by the refunding act. The subsequent proceedings +under this act will be more appropriately referred to hereafter. + +The more difficult problem remained of advancing United States +notes to par in coin. This could be accomplished by reducing the +amount of these notes outstanding, and, thus, by their scarcity, +add to their value. They were a legal tender in payment for all +debts, public and private, except for duties on imported goods and +interest on the public debt. As long as these notes were at a +discount for coin they could circulate only in the United States, +and until they were at par with coin, coin would not circulate as +money in the United States, except to pay coin liabilities. The +notes were a dishonored, depreciated promise, the purchasing power +of which varied day by day, the football of "bulls and bears." In +many respects these notes were better than any other form of +depreciated paper money, for the people of the United States had +full confidence in their ultimate redemption. They were much better +and in higher favor with the people than the state bank notes which +they replaced and which were not only depreciated like United States +notes but had been often proven worthless in the hands of innocent +holders. They were as good as national bank notes, however well +secured, for these notes were not payable in coin, but could be +redeemed by United States notes. Still, with all their defects +the United States notes were the favorite money of the people, and +any attempt to contract their volume was met by a strong popular +opposition. + +As already stated, the gradual reduction of the volume of United +States notes, urged so strongly by Secretary McCulloch, and provided +for by the resumption act, met with popular opposition and was +repealed by Congress. Under these conditions it became necessary +to approach the specie standard of value without a contraction of +the currency. The act to strengthen the public credit, already +referred to, was the beginning of this struggle. The government +was, by this act, committed to the payment of the United States +notes in coin or its equivalent. But when and how was not stated +or even considered. The extent to which Congress would then go, +and to which popular opinion would then consent, was the declaration +that the "United States solemnly pledges its faith to make provision +at the earliest practicable period for the redemption of United +States notes, in coin." Many events must occur before the fulfillment +of this promise could be attempted. + + +CHAPTER XXII. +OUR COINAGE BEFORE AND AFTER THE WAR. +But Little Coin in Circulation in 1869--General Use of Spanish +Pieces--No Mention of the Dollar Piece in the Act of 1853--Free +Circulation of Gold After the 1853 Act--No Truth in the "Demonetization" +Charge--Account of the Bill Revising the Laws Relative to the Mint, +Assay Offices and Coinage of the United States--Why the Dollar was +Dropped from the Coins--Then Known Only as a Coin for the Foreign +Market--Establishment of the "Trade Dollar"--A Legal Tender for +Only Five Dollars--Repeated Attempts to Have Congress Pass a Free +Coinage Act--How It Would Affect Us--Controversy Between Senator +Sumner and Secretary Fish. + +At the date of the passage of the act "to strengthen the public +credit," on March 19, 1869, there was but little coin in circulation +in the United States except gold coin, and that was chiefly confined +to the Pacific coast, or to the large ports of entry, to be used +in payment of duties on imported goods. Silver coins were not in +circulation. The amount of silver coined in 1869 was less than +one million dollars and that mainly for exportation. Fractional +notes of different denominations, from ten to fifty cents, were +issued by the treasury to the amount of $160,000,000, of which +$120,000,000 had been redeemed, and $40,000,000 were outstanding +in circulation or had been destroyed. These fractional notes +superseded silver coin as United States notes superseded gold coin. +The coinage laws as they then existed were scattered through the +laws of the United States from 1793 to 1853, and were in many +respects imperfect and conflicting. + +The ratio fixed by Alexander Hamilton, of fifteen ounces of silver +as the equivalent of one ounce of gold, was, at the time it was +adopted, substantially the market ratio, but the constant tendency +of silver to decline in relative value to gold had been going on +for years and it continued to decline, almost imperceptibly perhaps, +and the legal ratio in France having been fixed at fifteen and a +half to one, there was an advantage in shipping gold to that country +from this, and consequently very little if any of our gold, even +if coined, came into circulation. By the act of 1793 foreign coins +were made a legal tender for circulation in this country, and the +Spanish silver dollar, on which ours was founded, with the 8th or +"real" pieces, found great favor. Singularly enough, in Mexico +and the West Indies, the Spanish population would exchange their +dollars for ours, dollar for dollar, although their pieces, if not +worn, were each three grains heavier. This led to an exchange of +our dollars for the Spanish ones, which were promptly recoined at +the mint at a fair profit to the depositor. + +This put upon the government the expense of manufacturing coins +with no advantage. The evil grew so great that in 1806 the further +coinage of our silver dollars was prohibited by President Jefferson, +in an order issued through the state department, as follows: + + "Department of State, May 1, 1806. +"Sir:--In consequence of a representation from the director of the +Bank of the United States, that considerable purchases have been +made of dollars coined at the mint for the purpose of exporting +them, and as it is probable further purchases and exportations will +be made, the President directs that all the silver to be coined at +the mint shall be of small denominations, so that the value of the +largest pieces shall not exceed half a dollar. + + "I am, etc., + "James Madison. +"Robert Patterson, Esq., Director of the Mint." + +The coinage of the silver dollar at our mint was not resumed until +1836. The small and worn Spanish pieces, being legal tender, also +drove from circulation our fractional coins coming bright and plump +from the mint. Bank notes and these worn pieces furnished the +circulation of the country. + +The condition of the currency became so objectionable that in 1830 +the subject was taken up by a special committee of the House of +Representatives, appointed for the purpose. Three reports were +submitted, in one of which the committee stated that of $37,000,000 +coined at our mints only $5,000,000 remained in circulation. A +bill was submitted to the House fixing the ratio at 15.625 to one, +and was strongly urged. There appeared no special opposition to +the measure for a time, but the feeling of opposition to the +circulation of bank bills had become very strong among the people +and was reflected by the administration. + +In the Senate the opposition to bank bills was headed by Thomas H. +Benton, who openly advocated so changing the coinage ratio that +gold would circulate to the exclusion of the notes, and perhaps +incidentally of silver also. The matter of providing for silver, +however, received little attention. The ratio was changed to +sixteen to one, John Quincy Adams and Daniel Webster joining with +Calhoun and Benton in bringing it about. It was well understood +at the time that the operation of this act would banish silver. +The object of the change was distinctly stated, especially by Mr. +Benton, who said: + +"To enable the friends of gold to go to work at the right place to +effect the recovery of that precious metal, which their fathers +once possessed; which the subjects of European kings now possess; +which the citizens of the young republics to the south all possess; +which even the free negroes of San Domingo possess; but of which +the yeomanry of America have been deprived for more than twenty +years, and will be deprived forever, unless they discover the cause +of the evil and apply the remedy to its root." + +By the act of 1834, superadded to by the act of 1837, the ratio of +sixteen to one instead of fifteen to one was adopted. The result +was that gold coins were largely introduced and circulated; but as +sixteen ounces of silver were worth more than one ounce of gold, +the silver coins disappeared, except the depreciated silver coin +of other countries, then a legal tender. To correct this evil, +Congress, on the 21st of February, 1853, provided for the purchase +of silver bullion by the government, to be coined by it and not +for the owners of the bullion. That was the first time the government +had ever undertaken to buy bullion for coinage purposes. It provided +for the purchase of silver bullion and the coinage of subsidiary +silver coins at the ratio of less than fifteen to one. No mention +was made of the dollar in the act of 1853. It had fallen into +disuse and when coined was exported, being more valuable as bullion +than as coin. + +As the value of the minor coins was less that gold at the coinage +ratio, they were limited as a legal tender to five dollars in any +one payment. They were, in fact, a subsidiary coin made on government +account, and, from their convenience and necessity, were maintained +in circulation. They were similar to the coins now in use, revived +and re-enacted by the resumption act of 1875. + +It was not the intention of the framers of this law to demonetize +silver, because they were openly avowed bimetallists, but it limited +coinage to silver bought by the government at market price. They +saw, in this expedient, a way in which silver could be more generally +utilized than in any other. Mr. R. M. T. Hunter, an avowed +bimetallist, in a report to the United States Senate, said: + +"The mischief would be great indeed if all the world were to adopt +but one of the precious metals as the standard of value. To adopt +gold alone would diminish the specie currency more than one-half; +and the reduction the other way, should silver be taken as the only +standard, would be large enough to prove highly disastrous to the +human race." + +He evidently did not consider the purchase of silver bullion at +its coinage value by the government, instead of the free coinage +of silver, as monometallism. + +After the passage of the act of 1853, gold in great quantities, +the produce of the mines of California, was freely coined at the +ratio of sixteen to one, and was in general circulation. If, then, +the purchase of silver, instead of the free coinage of silver, is +the demonetization of silver, it was demonetized practically in +1834, and certainly in 1853, when the purchase of silver and its +use as money increased enormously. In 1852 the coinage of silver +was less than $1,000,000. In the next year the coinage of silver +rose to over $9,000,000, and reached the aggregate of nearly +$50,000,000 before the beginning of the Civil War. Then, as now, +the purchase of silver bullion led to a greater coinage than free +coinage. + +This was the condition of our coinage until the war, like all other +great wars in history, drove all coins into hoarding or exportation, +and paper promises, great and small, from five cents to a thousand +dollars, supplanted both silver and gold. + +When, therefore, it became necessary to prepare for the coinage of +gold and silver to meet the requirements of the act of 1869, "to +strengthen the public credit," it was deemed by the treasury +department advisable to revise and codify the coinage laws of the +United States. Mr. Boutwell, then Secretary of the Treasury, with +the assistance of John Jay Knox, deputy comptroller, afterwards +comptroller, of the currency, and the officers of the mints of the +United States, prepared a complete code of the coinage laws. It +was submitted to experts, not only to those in the treasury but +also to all persons familiar with the subject. The bill was +entitled, "An act revising and amending the laws relative to the +mint, assay offices, and coinage of the United States." + +The law, tested by experience, is conceded to be an excellent +measure. A single provision of the bill has been the subject of +charges and imputations that the silver dollar was, in a fraudulent +and surreptitious way, "demonetized" by this act. There is not +the slightest foundation for this imputation. The bill was sent +to me as chairman of the committee on finance, and submitted to +the Senate with this letter: + + "Treasury Department, April 25, 1870. +"Sir:--I have the honor to transmit herewith a bill revising the +laws relative to the mint, assay offices, and coinage of the United +States, and accompanying report. The bill has been prepared under +the supervision of John Jay Knox, deputy comptroller of the currency, +and its passage is recommended in the form presented. It includes, +in a condensed form, all the important legislation upon the coinage, +not now obsolete, since the first mint was established, in 1792; +and the report gives a concise statement of the various amendments +proposed to existing laws and the necessity for the change recommended. +There has been no revision of the laws pertaining to the mint and +coinage since 1837, and it is believed that the passage of the +inclosed bill will conduce greatly to the efficiency and economy +of this important branch of the government service. + + "I am, very respectfully, your obedient servant, + "Geo. S. Boutwell, Secretary of the Treasury. +"Hon. John Sherman, + "Chairman Finance Committee, United States Senate." + +Section 15 of the original bill omitted the silver dollar. It was +as follows: + +"Sec. 15. _And be it further enacted_, That of the silver coin, +the weight of the half dollar, or piece of 50 cents, shall be 192 +grains; and that of the quarter dollar and dime shall be, respectively, +one-half and one-fifth of the weight of said half dollar. That +the silver coin issued in conformity with the above section shall +be a legal tender in any one payment of debts for all sums less +than one dollar." + +Section 18 prohibited all coins except those named, as follows: + +"Sec. 18. _And be it further enacted_, That no coins, either gold, +silver, or minor coinage, shall hereafter be issued from the mint +other than those of the denominations, standards, and weights herein +set forth." + +Special attention was called to the dropping out of the silver +dollar, both by Secretary Boutwell and Mr. Knox, and the opinion +of experts was invited and given on this special matter and +communicated to Congress. These sections, in the three years that +the bill was pending in Congress, were changed either in the House +or Senate in only one or two unimportant particulars. + +Accompanying the report of Mr. Knox were the statements of Robert +Patterson, of Philadelphia, confessedly one of the ablest scientists +and metallists in the United States, in favor of dropping from our +coinage the silver dollar. Dr. Linderman, the director of the +mint, made the same recommendation. In the report accompanying +the introduction of the bill, under date of April 25, 1870, +Comptroller Knox gives the history of the silver dollar and the +reasons for its discontinuance as follows: + +"The dollar unit, as money of account, was established by the act +of Congress April 2, 1792, and the same act provides for the coinage +of a silver dollar, 'of the value of a Spanish milled or pillar +dollar, as the same is now current.' The silver dollar was first +coined in 1794, weighing 416 grains, of which 371ź grains were pure +silver, the fineness being 892.4. The act of January 18, 1837, +reduces the standard weight to 412˝ grains, but increases the +fineness to 900, the quantity of pure silver remaining 371ź grains +as before, and at these rates it is still coined in limited +amounts." + +He then says: + +"The coinage of the silver dollar piece, the history of which is +here given, is discontinued in the proposed bill. It is, by existing +law, the dollar unit, and assuming the value of gold to be fifteen +and one-half times that of silver, being about the mean ratio for +the past six years, is worth in gold a premium of about three per +cent. (its value being 103.12) and intrinsically more than seven +per cent. premium in our other silver coin, its value thus being +107.42. The present laws consequently authorize both a gold dollar +unit and a silver dollar unit, differing from each other in intrinsic +value. The present gold dollar piece is made the dollar unit in +the proposed bill, and the silver dollar piece is discontinued. +If, however, such a coin is authorized, it should be issued only +as a commercial dollar, not as a standard unit of account, and of +the exact value of the Mexican dollar, which is the favorite for +circulation in China and Japan and other oriental countries. + +"Note.--Assuming the value of gold to be fifteen and one-half times +that of silver, the French 5-franc piece is worth about 96˝ cents +(96.4784); the standard Mexican dollar 104.90, our silver dollar +piece 103.12, and two of our half-dollar pieces 96 cents." + +The finance committee carefully examined the bill. We were not in +any hurry about it. It was sent to us in April, 1870, and was +printed and sent, by order of the Senate, to everyone who desired +to read it or look over it. + +That committee was composed of Messrs. Sherman, Williams, Cattell, +Morrill, Warner, Fenton and Bayard. + +The bill was reported unanimously to the Senate December 19, 1870, +after lying in the committee room for eight months. + +The dollar was dropped from the coins in the bill framed in the +treasury department. It was then an unknown coin. Although I was +quite active in business which brought under my eye different forms +of money, I do not remember at that time ever to have seen a silver +dollar. Probably if it had been mentioned to the committee and +discussed it would have been thought, as a matter of course, scarcely +worthy of inquiry. If it was known at all, it was known as a coin +for the foreign market. + +No one proposed to reissue it. The Pacific coast had six intelligent, +able, and competent Senators on the floor of the Senate. They +would have carefully looked out for the interest of silver, if the +bill affected them injuriously. The authority given in the bill +as it finally passed for coining the so-called trade dollar, met +all the demands of the silver producing states. But the silver +dollar at that time was worth more than the gold dollar. California +and Nevada were on the gold standard. + +The bill was printed over and over again, finally reported, and +brought before the Senate. It was debated there for three days. +Every Senator from the Pacific coast spoke upon the measure. +Representing the committee, I presented the questions as they +occurred from time to time, until finally we differed quite seriously +upon the question of a charge for the coinage of gold. The only +yea and nay vote in the Senate on the passage of that bill, after +two days debate, occurred on the 10th of January, 1871. Those who +voted in favor of the bill were Messrs. Bayard, Boreman, Brownlow, +Casserly, Cole, Conkling, Corbett, Davis, Gilbert, Hamlin, Harlan, +Jewett, Johnston, Kellogg, McCreary, Morton, Nye, Patterson, Pomeroy, +Pool, Ramsey, Rice, Saulsbury, Spencer, Stewart, Stockton, Sumner, +Thurman, Tipton, Trumbull, Vickers, Warner, Willey, Williams, Wilson +and Yates--36. + +Every one of the six members of the Pacific coast voted for the +bill after full debate. + +Against this bill were Messrs. Abbott, Ames, Anthony, Buckingham, +Carpenter, Chandler, Fenton, Hamiliton, of Texas, Harris, Howell, +Morrill, of Vermont, Pratt, Scott and Sherman--14. + +So on the only yea and nay vote which was ever taken upon the bill +I voted against it. It was not on account of demonetizing the +silver dollar. I did not do it because of that, but I did it +because gold was then only coined for the benefit of private +depositors; we were not using gold except for limited purposes. +Gold was the standard in California, and we thought the people of +that state ought to continue to pay the old and reasonable rate +for coinage of one-fifth of one cent to the dollar. No action was +taken on the bill in the House of Representatives, and it failed +to pass during that Congress. At the beginning of the next Congress +the bill was introduced by Wm. D. Kelley, and reported by him +favorably to the House of Representatives. It gave rise to +considerable debate, especially the section defining the silver +coins. No one proposed to restore the old silver dollar, but the +House inserted a coin precisely the equivalent of five francs, or +two half dollars of our subsidiary coin, and this franc dollar, as +it was called, was made, like other subsidiary coins, a legal tender +only for five dollars. On the 9th of April, 1872, Mr. Hooper, +having charge of the bill, called especial attention to the dropping +of the old dollar and the substitution of the French dollar. He +said, on April 9, 1872: + +"Section 16 re-enacts the provisions of existing laws defining the +silver coins and their weights, respectively, except in relation +to the silver dollar, which is reduced in weight from 412˝ to 384 +grains; thus making it a subsidiary coin in harmony with the silver +coins of less denomination, to secure its concurrent circulation +with them. The silver dollar of 412˝ grains, by reason of its +bullion and intrinsic value being greater than its nominal value, +long since ceased to be a coin of circulation, and is melted by +manufacturers of silverware. It does not circulate now in commercial +transactions with any country, and the convenience of those +manufacturers, in this respect, can better be met by supplying +small stamped bars of the same standard, avoiding the useless +expense of coining the dollar for that purpose. The coinage of +the half dime is discontinued for the reason that its place is +supplied by the copper nickel five-cent piece, of which a large +issue has been made, and which, by the provisions of the act +authorizing its issue, is redeemable in United States currency." + +When the bill was sent to the Senate it, in compliance with the +memorial of the legislature of the State of California, inserted +in place of the French dollar, of 384 grains of standard silver, +a dollar containing 420 grains of standard silver, called the "trade +dollar." This was urged upon the ground that, as the Mexican dollar +contained 416 grains, or 3˝ grains more than the old silver dollar, +it had an advantage in trade with China and Japan over our dollar, +and that a coin containing a few grains more than the Mexican dollar +would give our people the benefit of this use for silver. This +dollar was, in conference, agreed to by the House, but was a legal +tender for only five dollars. On final action on that bill, the +conferees on the part of the Senate were Messrs. Sherman, Scott +and Bayard. The amendment of the Senate adopting the trade dollar +was agreed to by the House, and the bill passed in both Houses +without a division. + +There never was a bill proposed in the Congress of the United States +which was so publicly and openly presented and agitated. I know +of no bill in my experience which was printed, as this was, thirteen +times, in order to invite attention to it. I know no bill which +was freer than any immoral or wrong influence than this act of 1873. + +During the pendency of this bill, the Senators and Representatives +from the Pacific coast were in favor of the single standard of gold +alone. This was repeatedly shown during the debates, but now they +complain that the silver dollar was demonetized, and that, though +present, taking the most active interest in the consideration of +the bill, they did not observe that the silver dollar was dropped +from the coinage. The public records are conclusive against this +pretense. Mr. Stewart, Senator from Nevada, and all the Senators +from the Pacific coast, who took an active part in the debate on +the bill, must have known of the dropping of the silver dollar from +the coinage. It appears from the "Congressional Record" that, on +the 11th of February, 1874, Mr. Stewart said: + +"I want the standard gold, and no paper money not redeemable in +gold; no paper money the value of which is not ascertained; no +paper money that will organize a gold board to speculate in it." + +Again, only a few days after this, on the 20th of February, when +he was speaking in favor of the resolution, instructing the committee +on finance to report a bill providing for the convertibility of +treasury notes into gold coin of five per cent. bonds, he said: + +"By this process we shall come to a specie basis, and when the +laboring man receives a dollar it will have the purchasing power +of a dollar, and he will not be called upon to do what is impossible +for him or the producing classes to do, figure upon the exchanges, +figure upon the fluctuations, figure upon the gambling in New York; +but he will know what his money is worth. Gold is the universal +standard of the world. Everybody knows what a dollar in gold is +worth." + +To review the history of the act of 1873: It was framed in the +treasury department after a thorough examination by experts, +transmitted to both Houses of Congress, thoroughly examined and +debated during four consecutive sessions, with information called +for by the House of Representatives, printed thirteen times by +order and broadly circulated, and many amendments were proposed, +but no material changes were made in the coinage clause from the +beginning to the end of the controversy. It added the French dollar +for a time, but that was superseded by the trade dollar, and neither +was made a legal tender but for five dollars. It passed the Senate +on the 10th of January, 1871--36 yeas and 14 nays--every Senator +from the Pacific coast voting for it. + +It was introduced in the House of Representatives by Mr. Kelley, +at the next session. It was debated, scrutinized, and passed +unanimously, dropping the silver dollar, as directly stated by Mr. +Hooper. It was reported, debated, amended, and passed by the Senate +unanimously. In every stage of the bill, and every print, the +dollar of 412˝ grains was prohibited, and the single gold standard +recognized, proclaimed, and understood. It was not until silver +was a cheaper dollar that anyone demanded it, and then it was to +take advantage of a creditor. + +It has always been within the power of Congress to correct this +error, if error was made; but Congress has refused over and over +again to do it. When the controversy arose, in 1878, on the Bland +bill, and the House of Representatives proposed the free coinage +of silver, the Senate rejected it after a deliberate contest, and +substituted in place of it what is called the Bland-Allison act, +which required the purchase, by the government, of silver bullion +at its market value, and its coinage to a limited amount. Every +effort has been made, from that time to this, to have the Congress +of the United States pass a free coinage act. + +If this is done, it will be to secure a cheaper dollar of less +purchasing power, with the view to enable debtors to pay debts, +contracted on the basis of gold coin, with silver coins, worth, +with free coinage, less than one-half of gold coins. + +In reviewing, at this distance of time, the legislation of 1873, +in respect to the coinage of silver, I am of the opinion that it +was fortunate that the United States then dropped the coinage of +the old silver dollar. No one then contemplated the enormous yield +of silver from the mines, and the resulting fall in the market +value of silver, but, acting upon the experience of the past, that +a parity between silver and gold could not be maintained at any +fixed value, Congress adopted gold as the standard of value, and +coined silver as a subsidiary coin, to be received and maintained +at a parity with gold, but only a legal tender for small sums. +This was the principle adopted in the act of 1853, when silver was +more valuable than gold at the legal ratio. Silver was not then +coined into dollars, because it was then worth more as bullion than +as coin. It was needed for change, and, under the law of 1853, it +was furnished in abundance. Similar laws are now in force in all +countries where gold is the sole standard. Under these laws, a +larger amount of silver is employed as subsidiary coins than when +the coinage of silver was free. + +The same condition of coinage now exists in the United States. +While silver is reduced in market value nearly one-half, silver +coins are maintained at par with gold at the old ratio, by fiat of +the government. It is true that the purchase of silver, under +recent laws, involved a heavy loss to the government, but the free +coinage of silver, under the ratio of sixteen to one, would exclude +gold from our currency, detach the United States from the monetary +standard of all the chief commercial nations of the world, and +change all existing contracts between individuals and with the +government. In view of these results, certain to come from the +free coinage of silver, I am convinced that until some international +arrangement can be made, the present system of coinage should +continue in force. This has now became a political, or, rather a +monetary question, to be decided sooner or later, by popular opinion, +at the polls. This subject will be further discussed at a later +period, when efforts were made to adopt the free coinage of silver +at the old ratio. + +Prior to the meeting of Congress in December, 1870, a controversy +had arisen between Senator Sumner and Secretary Fish, which created +serious embarrassment, and I think had a very injurious influence +during that and succeeding sessions of Congress. Mr. Sumner had +long been chairman of the committee on foreign relations, and no +doubt exercised a domineering power in this branch of the public +service. Mr. Fish and Mr. Sumner had differed widely in respect +to the annexation of San Domingo and certain diplomatic appointments +and former treaties, among them the highly important English +negotiations for the settlement of claims growing out of the war. +On these topics the President and Mr. Sumner could not agree. Mr. +Sumner insisted that the hasty proclamation by Great Britain of +neutrality between the United States and the Southern Confederacy +was the gravamen of the Alabama claims. The President and Mr. Fish +contended that this proclamation was an act of which we could not +complain, except as an indication of an unfriendly spirit by Great +Britain, and that the true basis of the Alabama claims was that +Great Britain, after proclaiming neutrality, did not enforce it, +but allowed her subjects to build cruisers, and man, arm and use +them, under cover of the rebel flag, to the destruction of our +commercial navy. + +This difference of opinion between the President and Mr. Sumner +led to the removal of John L. Motley, our minister to England, who +sided with Sumner, and unquestionably intensified the feeling that +had arisen from the San Domingo treaty. + +As to that treaty it was a conceded fact that before the President +had become publicly committed to it he had, waiving his official +rank, sought the advice and counsel of Mr. Sumner, and was evidently +misled as to Mr. Sumner's views on this subject. The subsequent +debating, in both open and executive session, led to Mr. Sumner's +taking the most extreme and active opposition to the treaty, in +which he arraigned with great severity the conduct of the naval +officers, the Secretary of the Navy, Mr. Fish and the President. +This was aggravated by alleged public conversations with Mr. Sumner +by "interviewers," in which the motives of the President and others +were impugned. + +In the meantime, social relations between the Secretary of State +and Mr. Sumner had become impossible; and--considering human passion, +prejudice and feeling--anything like frank and confidential +communication between the President and Mr. Sumner was out of the +question. + +A majority of the Republican Senators sided with the President. We +generally agreed that it was a false-pretended neutrality, and not +a too hasty proclamation of neutrality, that gave us an unquestionable +right to demand indemnity from Great Britain for the depredations +of the Alabama and other English cruisers. And as for the San +Domingo treaty, a large majority of Republican Senators had voted +for it--though I did not; and nearly all of us had voted for the +commission of inquiry of which Mr. Wade was the chief member. + +When we met in March, it was known that both these important subjects +would necessarily be referred to the committee on foreign relations, +and that, aside from the hostile personal relations of Mr. Sumner +and the Secretary of State, he did not, and could not, and would +not, represent the views of a majority of his Republican colleagues +in the Senate, and that a majority of his committee agreed with +him. Committees are and ought to be organized to represent the +body, giving a majority of the members to the prevailing opinion, +but fairly representing the views of the minority. It has been +the custom in the Senate to allow each party to choose its own +representatives in each committee, and in proportion to its numbers. + +In the Republican conference the first question that arose was as +to Mr. Sumner. He was the oldest Senator in consecutive service. +He was eminent not only as a faithful representative of Republican +principles, but as especially qualified to be chairman of our +foreign relations. He had long held that position, and it was not +usual in the Senate to change the committees, but to follow the +rule of seniority, placing Senators of the majority party in the +order of their coming into the Senate and those of the minority at +the foot of the list. + +In deciding Mr. Sumner's case, in view of the facts I have stated, +two plans were urged; + +First--To place him at the head of the new and important committee +of privileges and elections, leaving the rest of the committee on +foreign relations to stand in the precise order it had been, with +one vacancy to be filled in harmony with the majority. + +Second--To leave Mr. Sumner to stand in his old place as chairman, +and to make a change in the body of the committee by transferring +one of its members to another committee, and fill the vacancy by a +Senator in harmony with the majority. + +My own opinion was that the latter course was the most polite and +just; but the majority decided, after full consideration and debate, +upon the first alternative. + +Simon Cameron was next to Mr. Sumner on the list of Republican +members of the committee, and, by uniform usage, became its +chairman. + +This affair created feeling in the Senate which it is difficult +now to realize, but it was decided in a Republican caucus, in which +there was an honest difference of opinion. We foresaw, whichever +way it should be decided, that it would create--and it did create +--bad feeling among Senators, which existed as long as Mr. Sumner +lived. I think it proper to make this statement of my own views +at the time, though by the happening of great events this incident +has almost passed out of memory. + +Mr. Sumner died in Washington, March 11, 1874. He was distinguished +for his literary attainments, and his strong opposition to the +institution of slavery and his severe arraignment of it. The brutal +attack made upon him by Preston S. Brooks created profound sympathy +for him. + + +CHAPTER XXIII. +SOME EVENTS IN MY PRIVATE LIFE. +Feuds and Jealousies During Grant's Administration--Attack on Me +by the Cincinnati "Enquirer"--Reply and Statement Regarding My +Worldly Possessions--I Am Elected to the Senate for the Third Term +--Trip to the Pacific with Colonel Scott and Party--Visit to the +Yosemite Valley--San Diego in 1872--Return via Carson City and Salt +Lake--We call on Brigham Young--Arrival Home to Enter Into the +Greeley-Grant Canvass--Election of General Grant for the Second +Term. + +I have purposely followed the legislation of Congress on financial +questions until the passage of the act of 1873, passing over other +events in my personal history and that of President Grant. + +It can hardly be said that we had a strictly Republican administration, +during his two terms. While Republicans were selected to fill the +leading offices, the policy adopted and the controlling influence +around him were purely personal. He consulted but few of the +Senators or Members, and they were known as his personal friends. +Mr. Conkling, by his imperious will, soon gained a strong influence +over the President, and from this came feuds, jealousies and +enmities, that greatly weakened the Republican party and threatened +its ascendency. This was a period of bitter accusations, extending +from the President to almost everyone in public life. During the +entire period of Grant's administration, I was chairman of the +committee on finance of the Senate, and had to act upon all questions +of taxation, debt, banking or finance, and had occasion to talk +with the President upon such measures, but he rarely expressed any +opinion or took any interest in them. His veto of the bill to +increase the amount of United States notes, on the 22nd of April, +1874, was an exception, but on this he changed his mind, as he had +expressed his approval of the bill when pending. He was charged +with being in a whisky ring and with other offensive imputations, +all of which were without the slightest foundation. General Grant +was, in every sense of the word, an honest man. He was so honest +that he did not suspect others, and no doubt confided in, and was +friendly with, those who abused his confidence. It was a period +of slander and scandal. + +I did not escape the general crimination. I usually met accusations +with silence, as my accusers were answered by others. In March, +1871, the Cincinnati "Enquirer" contained the following imputation: + +"We are informed that a gentleman who lately filled a responsible +office in this city, who has recently returned from Washington, +says that the Southern Railroad bill would have passed the United +States Senate if it had not, unfortunately, happened that Senator +Sherman had no direct pecuniary interest in it. In these days, +and with such Congresses, it takes grease to oil the wheels of +legislation." + +On the 12th of March I wrote to the editors of the "Enquirer" the +following note, after quoting the editorial: + + "United States Senate Chamber,} + "Washington, March 12, 1871. } +"To the Editors of the 'Enquirer:' + +"Gentlemen:--Some one, perhaps in your office, sends me the following +editorial, cut from your paper: + +* * * * * + +"All I can say in reply is that it contains a falsehood and a +calumny. I introduced the bill for the Southern Railroad; am +strongly in favor of it, and pressed it at every stage as rapidly +as the rules of the Senate and the strong opposition to it would +allow. This is known by every Senator, and I am quite sure Judge +Thurman and Mr. Davis would say so. I alone took an active interest +in the bill, and at the very moment your editorial was received I +was pressing a Republican caucus to make it an exception to a +resolution not to take up general legislation at this session. +Everyone familiar with our rules knew that it was the sheerest +folly to try to pass the bill on the last day of the session, +especially as against our appropriation bills. When it does pass +it will take days of debate, and will not receive support from any +of your political associates, who think Kentucky can block up all +intercourse between the north and south. Still I yielded to the +earnest desire of the trustees to try to get a vote, but failed to +get the floor at 3 o'clock in the morning, the only moment it was +possible to submit even the motion to take it up. The bill to +abolish the duty of coal was taken up and was not acted on, nor +would the railroad bill, or any other contested bill, have passed +at that stage of the session. + +"As to the base imputation you attribute to 'a gentleman who lately +filled a responsible office in this city,' I can only say that, +whether it originates with you or anyone else, it is utterly false. +Neither in this nor in any measure that has passed Congress, or is +pending, have I had any direct pecuniary interest. I respectfully +ask that you print this, and also the name of the 'gentleman' you +refer to. + +"I intend, in the interests of the city of Cincinnati and of the +whole country, to press the Southern Railroad bill, and to secure +its passage as soon as possible, but it is rather poor encouragement +to read such libels in a prominent paper in your city. + + "Yours etc., + "John Sherman." + +This was followed by an article in the "Enquirer" embodied in my +reply, as follows: + + "Washington, March 20, 1871. +"Gentlemen:--In your editorial in the 'Enquirer' of March 17, in +commenting on my card to you as to my action on the Cincinnati +Southern Railroad bill, you repeat my statement that 'neither in +this nor in any measure that has passed Congress, or is pending, +have I any pecuniary interest,' and you say: + +'If this is true, he has certainly been a very badly slandered +gentleman. Somehow or other there is a popular impression that +Mr. Sherman has contrived to make his connection with politics a +highly lucrative business, and that he has exhibited, since he has +been in Congress, a worldly thrift that is remarkable. There is +a further impression that he is now a very rich man, whereas, a +few years ago, before he was in public affairs, his circumstances +were decidedly moderate. Perhaps our senatorial friend may not be +aware of the existence of these derogatory reports, and will thank +us for giving him an opportunity, now that he knows of their +existence, to disprove them.' + +"I have not been ignorant that there has been a studied effort-- +ascribed by me to the common tactics of political warfare--to create +the impression, by vague innuendo, that I have used my official +position to make money for myself. I know that this charge or +imputation is without the slightest foundation, and I now repeat +that I never was pecuniarily interested in any question, bill or +matter before Congress; that I never received anything in money, +or property, or promise, directly or indirectly, for my vote or +influence in Congress or in the departments; that I have studiously +avoided engaging in any business depending upon legislation in +Congress. The only enterprise in which I ever engaged, which rests +upon an act of Congress, is that in 1862, after the bill passed +authorizing the construction of a street railroad in this city, I, +with others, openly subscribed stock, and undertook to build it in +pursuance of the act of Congress. + +"From the position assigned me here, I have had to deal with great +questions involving our financial system of currency, taxes and +debt, and I can appeal to all my associates in Congress, to each +of the eminent men with whom, as Secretaries of the Treasury, I +have been intimate, and to every man of the multitude with whom I +have been brought into contact, to say whether I have ever been +influenced in my course by pecuniary interest. + +"But you say that the impression is that I am a very rich man, +whereas, before I was in public affairs, my circumstances were +decidedly moderate. This allegation contains two gross exaggerations. +When I entered public life, I was largely engaged in my profession +and other lucrative business. If I had not engaged in politics, +I might have been the rich man you suppose. I am not this day +relatively richer, considering the changed value of property, than +I was when I entered the Senate. Some time ago it was stated in +your paper that I was worth millions. A very small fraction, +indeed, of one million dollars will cover all I am worth. My +property consists mainly of real estate, palpable to the eye, and +the rest of it is chiefly in a railroad with which I was connected +before I entered public life. + +"I have managed my business affairs with reasonable care, prudence, +economy and success. What I have is the result of this. + +"You kindly offer me an opportunity to disprove to you these reports. +Well, how can I? What charge is made against me? How can I fight +shadows? How can a man prove himself innocent against an innuendo? + +"But as you offer me the opportunity, I now invite Mr. Faran to +come to my home at Mansfield, and I will show him all I possess +there, and render him a full account of all I have elsewhere, and +if I can't fairly account for it without being suspected of receiving +bribes, or gifts, or stealing, then he can repeat these baseless +accusations with an easy conscience. + +"You may ask why I have not met these derogatory reports before. +Perhaps I ought, but I feel the humiliation of such a controversy, +and thought it time enough when a specific charge was made. And +I am told by Mr. Hedges, my former law partner, that in my absence, +last summer, he corrected some gross misstatements in your paper +about me, and that you refused or neglected to publish it--even to +notice it. As, however, you now, in a courteous way, invite this +letter, I take great pleasure in accepting your offer. + + "Very truly yours, + "John Sherman. +"Messrs. Faran & McLean, editors of the 'Enquirer.'" + +I doubted the policy of my publishing such a letter, or of taking +any notice of so indefinite a charge, but the response from the +press was fair, especially from the "Shield and Banner," a Democratic +paper printed in Mansfield, as follows: + +"We publish a letter of Hon. John Sherman to the editors the +Cincinnati 'Enquirer.' It is hardly necessary that we should say +that we have no sympathy with the political creed of John Sherman. +Between him and us there is a vast and wide difference; but we are +not, we trust, so much of the partisan that we cannot do justice +to a neighbor, if that neighbor differs with us. We have known +John Sherman, not only during all his public life, but from the +time we became a resident of Mansfield, now covering a period of +thirty years, and we have always known him as industrious, prudent +and careful in his profession, and economical and thrifty in his +business. We placed very little credence in the rumors that he +was a man of immense wealth. His property is mostly in real estate. +He was fortunate in getting hold of very desirable property in and +around our city, and the advance in that has doubtless given him +a competence; but it is folly to charge him with being a millionaire. +We have, in common with our neighbors, enjoyed his hospitality, +and his style of living is neither extravagant nor ostentatious. + +"Mr. Sherman is one of our townsmen, and although all wrong as a +politician and statesman, and holding to a creed we utterly +disapprove, he is a highminded and honorable man, and we are bound +to accept his statement about his pecuniary affairs as true." + +I have often since been accused of the crime of "being rich," but +as nearly all my possessions are visible to the naked eye, and +their history and acquisition are known to so many, I think I am +not required to prove that I have not made them as the result of +legislation or my holding public trusts. + +My second term in the Senate expired on the 4th of March, 1873. +The election of my successor devolved upon the legislature that +convened on the first Monday of January, 1872. + +The canvass in Ohio, in the summer and fall of 1871, was an active +and exciting one and attracted great interest in other states. +The result would indicate the strength or weakness of Grant's +administration. I felt it was necessary, not only for my re- +election, but for the success of the Republican party, that every +effort should be made to elect a Republican majority in the +legislature, and I, therefore, at the state convention and in most +of the congressional districts of Ohio, made earnest speeches in +behalf of the state ticket and members of the legislature. I +received many letters of encouragement, one of which, from Senator +Carpenter in reference to my speech in the convention, I insert: + + "Washington, D. C., July 20, 1871. +"Hon. John Sherman. + +"Dear Sir:--I have just read your speech to the state convention +of Ohio. _It is splendid_. The only fault I have to find with it +is, that you have covered the whole ground and reduced us 'lesser +lights' to the necessity of repeating and elaborating. This is +_very mean of you;_ you might have left some topic of the next +campaign untouched, for us to dwell upon. But you have pre-empted +everything and we must follow after. + + "Very truly yours, + "Matt H. Carpenter." + +The legislature was elected in October, 1871, but the majority for +the Republicans was so small that the election of a Republican +Senator was in doubt. + +I received many hearty letters of congratulation on our success in +Ohio from my colleagues in the Senate, among them one from Senator +Conkling as follows: + + "Utica, N. Y., October 13, 1871. +"Hon. John Sherman, Mansfield, Ohio. + +"My Dear Sir:--Having waited for certainties touching your election +and the legislature, and having watched the canvass with sincere +solicitude, I congratulate you most heartily upon the result. + +"Your own speeches have been among the best you ever made, and your +canvass has been full of the pluck without which no canvass and no +political contest is thorough or truthful. + +"This state is ours unless the people are discouraged from voting +in the country by the belief that with Tammany to count, it matters +not what majority rolls up above the Highlands. + +"Notwithstanding the grievous statements of the 'Tribune' and inspired +by the 'Tribune,' we have done nothing harsh to the anti-administration +minority, but the least and mildest thing which would prevent a +split in our organization with trouble for the future, and probably +a double delegation in the next national convention. + + "Yours sincerely, + "Roscoe Conkling." + +It was conceded that a decided majority of the Republican members +of the legislature were in favor of my re-election, but it was +believed that an effort would be made by five Republican members +to combine with the Democratic members and thus secure the election +of ex-Governor Jacob D. Cox. + +A Republican legislative caucus was convened on the evening of +January 4th, to nominate a candidate. The first and informal ballot +gave me 61 votes to 14 scattering and the second ballot 71 votes +to 4 scattering. This settled the matter unless the few dissenting +votes could combine with the solid Democratic vote upon some other +candidate. It was soon found that this attempt would be abortive, +as several Democrats, and especially those from Richland and +Fairfield counties, would vote for me it the choice came between +Cox and myself. Every effort was made by General Ashley and the +few others who were opposed to my nomination to combine upon anyone +who could defeat me. They offered their support to Governor Hayes, +but this was promptly refused by him. The same effort was made +with Governor Dennison, General Garfield and General Schenck, and +failed. + +The joint convention for the election of a Senator was held on the +second Tuesday of January. It was an open meeting. The voting +was soon over on roll call, and the result was as follows: Sherman +73; Morgan 64; Cox 1; Schenck 1; Perry 1. Thus I was elected by +six majority over all. When this result was known five Democrats +changed from Morgan to Cox, and others were preparing to do so when +Lieutenant Governor Mueller announced the result of the vote. He +was an educated German of high standing, but his English was very +imperfect. His decision that I, having received a majority of the +votes cast, was duly elected, was clearly right, and this was +conceded, but his imperfect English created great noise and merriment. +It was printed in the "Ohio Statesman," on the same day, as follows: + +"John Sherman, having received seventy-three votes for President +in Congress [laughter], I mean for Senator in Congress, which being +a majority over all them others, I declares John Sherman duly +elected Senator in Congress from Ohio." + +If the changing of the minority vote had proceeded, some of the +Democratic votes would have been cast for me, and my majority would +have been increased, but I preferred the election as it occurred. +My election for the third term was after a hot political contest, +but it left no wounds unhealed. Most of the gentlemen opposed to +me became afterwards my warm friends. + +In July, 1872, two months after the close of the session of Congress, +I received the following letter from Thomas A. Scott, President of +the Texas and Pacific Railroad Company: + + "Philadelphia, July 19, 1872. +"Hon. John Sherman, Mansfield, Ohio. + +"My Dear Sir:--A few gentlemen connected with the Texas and Pacific +road, and myself, propose to go to the Pacific coast, leaving +Philadelphia about the 12th to the 15th of August. + +"If your engagements will permit, I shall be very glad indeed to +have you go with us. + +"I am going from San Francisco to San Diego, and shall return by +way of San Francisco; the trip will occupy about thirty days. + +"Please let me hear from you, and, if possible, let me have the +pleasure of your company. + + "Very truly yours, + "Thomas A. Scott, President." + +I accepted the invitation, and with a very agreeable party of ladies +and gentlemen, among whom were Mr. W. T. Walters, of Baltimore, +and his daughter, made my first voyage to the Pacific coast. Mr. +Scott, as president of the Pennsylvania Railroad Company, had +command, by courtesy, of every convenience of travel. We had a +dining car which we could attach to any train, with ample room for +beds, and a full supply of provisions. The journey to San Francisco +was broken by several stops on the way at places that we thought +interesting. + +Great changes had occurred in the brief period since my trip in an +ambulance with General Sherman. The Indians and buffaloes had +disappeared from the plains, the former placed on reservations +distant from the railroad, and the latter by gradual extinction. +When we crossed the Laramie plains I was in, to me, a "terra +incognita." The great basin of Salt Lake, with the varied and +picturesque scenery to the east and west of it, attracted our +attention, but the want of water, the dry air, the dust and the +absence of tress and vegetation of any kind, condemn all that +country to waste and desolation, except in a few places where +irrigation can be had. The Nevada range of mountains was crossed +at night, but we were to explore them on our return. When the +broad valley of the Sacramento opened to our view, we could hardly +express our delight. Here, indeed, was the land of gold, with its +clear air, its grand mountains, its rich plains. + +Aside from the wonderful variety of its scenery, the history of +California has always excited poetic interest--its long settlement +by mixed races living in quiet peaceful harmony, mainly as herdsmen +and shepherds, suddenly disturbed and conquered without firing a +gun, by an aggressive race who soon revolutionized the habits of +the natives, and planted a new civilization, with all the bad as +well as the good elements of our race. Then the discovery of gold, +immediately following the conquest of California, drew to it, from +all parts of the United States, the most restless and adventurous +of our population, some of the worst and many of the best. The +rapid admixture of these diverse elements threatened for a time +hostile conflicts, in which criminals, under cover of law, committed +murder and other crimes, and peaceful, law-abiding citizens were +compelled to appeal to force and mob law to preserve civilization. + +The railway soon brought us through Sacramento to San Francisco, +where we remained several days. We were kindly received and +entertained. The enterprise of Scott was not then favored in San +Francisco, but this did not prevent our hearty welcome. Here I +met Mr. Hollister, whom I had known in Ohio. He was the great +shepherd of California. I was informed that he owned 100,000 sheep, +divided into flocks of about 3,000 each. These flocks were wintered +at a large ranch near the Pacific coast belonging to him. The +climate was mild, and the sheep could live without shelter during +the winter. The flocks would start eastwardly over the great +valley, each flock cared for by a shepherd, a boy and a dog, feeding +in the open country, some of the flocks reaching the Mariposa +valley, one hundred miles away. When the grass failed they were +turned to the west to their home. Whether this tale is an exaggeration +I cannot say, but certain it is that at that time sheep raising +and the production of wool was one of the chief industries of +California. Hollister was also interested in woolen manufacture, +especially of blankets, equal to any in the world. When I knew +him in Ohio, he and his brother were the owners, by inheritance, +of a large and valuable farm in Licking county. When gold was +discovered in California, Hollister sold to his brother one-half +of the farm, and with the proceeds purchased a large flock of the +best Ohio sheep, and drove them to California, taking two years +for the journey. He was fond of telling his adventures, and proud +of his success. He died a few years since in California, but +whether his good fortune followed him to the close of his life I +do not know. He was very kind to our party and accompanied us to +San Diego. + +From San Francisco we made a trip to the Mariposa Grove, and the +Yosemite valley. We traveled by rail to a small station nearest +the grove. Then by stage we rode to the terminus of the line. +From there we went but a short distance to the grove. This majestic +survivor of the forest has been so often been described that details +are not necessary. We measured the trees, and rode on horseback +nearly one hundred feet through one of the fallen monsters. We +also attempted to form a ring with hands and arms extended around +one of these trees, but our party was not numerous enough to encircle +it. I felt a sense of insignificance when I realized the long life +of some of these trees, estimated to span forty generations of men, +and still in health and strength. We returned to the stage station +and again mounted our horses and mules for the perilous adventure +of a descent into the Yosemite valley. It so happened that Mr. +Bell, the keeper of the station, was a former resident of Bellville, +in Richland county, Ohio, in which I live. He knew me well, and +his wife I knew as the daughter of a leading farmer of that county. +I thought I might utilize this acquaintance by asking him to see +that I was well mounted to descend to the valley. Much to my +surprise a spirited horse, well accoutered, was brought out for +Colonel Scott, and a shaggy short-legged mule, with a California +saddle and a common but stout bridle, was brought out for me. I +felt that Bell had disregarded the obligation of "auld acquaintance," +but said nothing. + +My mount started at the heels of the cavalcade in a steady walk, +but I noticed he was sure-footed, and that, at the end of two or +three weary hours, he had passed most of the party and soon after +was close in the wake of Colonel Scott. In the meantime, I had +noticed that I was the subject of merriment. My feet were in close +proximity to the ground. The length of my legs was out of proportion +to that of the legs of the mule. When we came to descend the +mountain, however, at an angle of nearly forty-five degrees, on a +very narrow path, I found that my mule could turn the bends of the +track, and, by a peculiar gathering of his feet, could slide down +difficult places, while Colonel Scott, on his already jaded horse, +was troubled and worried. He dismounted when the path widened and +asked me to go ahead. He then followed me, leading his horse. +After that, I made up my mind that my Richland county friend had +not failed me in my hour of need. + +As for the scenery through which we were passing, no language could +describe it. We saw, four thousand feet below, a beautiful little +valley about half a mile wide at the widest part, with what appeared +to be a very small stream dancing along from side to side of the +valley, and surrounded by precipitous mountains in every direction. +The eye and mind can now vividly recall the picture of the scenes +than around me. My mule had my confidence, but I feared lest some +fatal mishap might befall some of my companions, and especially I +feared for a lady who ventured the journey, but she fortunately +displayed pluck and coolness, and at the end of the day we all +arrived at the hut in the valley safe and sound, but very weary. +Since that time, I understand that a good road has been made up +the valley, by which tourists can enjoy the grandest scenery in +nature, without the risk we took. + +We enjoyed a hearty supper of plain food, and a sound sleep on corn- +husk mattresses. The next day we explored the valley, and enjoyed +the changing views of near and distant mountains. These have often +been described, but they can only be appreciated by a personal +visit. We left the valley by another route to the north, and +reached the railroad by a different line of stages. + +Returning to San Francisco, we took the boat for San Diego, stopping, +on the way, at Santa Barbara and San Pedro. From this place we +drove to Los Angeles, then a typical Mexican town of great interest. +The good people hoped for the railroad, but Colonel Scott expected +the road of which he was president would be able to reach San Diego. + +Our arrival at San Diego was an event of interest to the few people +of that town. We inspected the remarkable harbor and the surrounding +country. It was apparently a good site for a great city. Fresh +water was the great want and rain-falls were rare, but it was +claimed that an ample supply of water could be had from the hills. +The real obstacle to that site, as a terminus for the railroad, +was the mountains east of San Diego, which, upon a survey, were +found to be extremely difficult, and this turned the route to Los +Angeles, over natural passes and through the beautiful region of +San Bernardino. + +We returned, by boat, to San Francisco, and soon after turned our +way eastward. We stopped at Reno, and went by rail to Carson City, +the capital of Nevada. It was then an embryo town. From there we +went to Lake Tahoe, one of the finest bodies of water on the earth. +Its clear, cold waters filled a natural basin in the midst of the +Nevada range of mountains, which was supplied by the melting snows. +We then returned to Carson City, ascended, by rail, an inclined +plane of high grade, to Virginia City. Most of the party descended +into the mines, but I was prevented from doing so by an attack of +neuralgia, a complaint from which I never suffered before or since, +caused, as it was said, by the high altitude and thin air. Here +I met several natives of Ohio, who had sought their fortunes in +the far west. They were very kind to the party and to myself. It +got to be a common remark, that Ohio has everything good in the +west. I could answer that they all seemed to deserve what they +had. I was disposed to be proud of them and of my native state, +but soon after, on the way east, we heard of an atrocious murder +committed by two Ohio men. This turned the tables on my native +state, and I was compelled to confess that bad men came from Ohio +as well as from other states; but, if so, Ohio people excelled in +the atrocity of their crimes as well as in the excellence of their +merits! + +Our next stopping place was at Salt Lake City. Whatever opinion +we may have of the religious creed and dogmas of the Mormons, we +cannot deny the industry and courage of that sect in building up +a city in a wilderness where natural conditions seemed to forbid +all hope of success in such an enterprise. And yet there it was, +a well-ordered city laid out with squares, avenues, streets, and +reservations for schools, churches and other public uses, with +water introduced in great abundance. All the needs of city life +were provided, such as stores, markets and shops. We were invited +by the delegate to Congress, from Utah, to call on Brigham Young, +and did so. He was a large, well-built man, then about sixty years +old. He took great interest in the enterprise of Colonel Scott +and seemed familiar with all the railways built or projected in +the western country. There was nothing in his conversation or +manner that indicated the "crank," nor did he exhibit any of the +signs of a zealot or fanatic. He made no allusions to his creed +or the habits of his followers and betrayed no egotism or pride. +He has died since but the organization he left behind him is still +in existence, and the Mormon faith is still the creed and guide of +the great body of those who followed Brigham Young into the +wilderness, and of their numerous descendants. It is to be hoped +that the government and people of the United States will let the +Mormons severely alone, allowing them to believe what they will, +and to do in the way of worship what they choose. In this way only +can their confidence in alleged revelations be shaken, and Mormonism +will disappear among the many vain attempts of humanity to explore +the mysteries of life and death. Persecution never weakens delusions, +nor disturbs faith, however ignorant and groundless. + +From Salt Lake our party went to Cheyenne and thence to Denver. +This city was growing rapidly and was plainly destined to be the +principal center of the mineral development of several states. I +had, on a previous trip, visited the interesting region of the +"Garden of the Gods," Colorado Springs and Pike's Peak. Our party +left Denver for home. On the long stretch via Kansas City, St. +Louis and Indianapolis we saw nothing new, as we were traveling +over familiar ground. It was early in September, when corn, the +great western staple, was approaching maturity, and the earth was +giving forth its increase. We were crossing the largest and perhaps +most fertile valley of the world. All of it had been redeemed from +nature and the Indians, within one hundred years. During our trip +we had passed through great cities, prosperous towns and amidst +wonderful scenery. All of the route except through the Yosemite +valley was passed over in a palace car. The ocean voyage was in +a steamboat even more luxurious then the palace car. All this +rapid development did not satisfy the desire of Colonel Scott and +Mr. Walters. Their minds were occupied with vast railroad projects, +some of which were accomplished before their death. I also had my +dreams but they related to public policies rather than internal +improvements and some of these have been realized. + +I was awakened one bright morning in September and told that the +car was in Ohio. This was enough to drive sleep from my eyelids. +I looked out upon the rich lands of the Miami valley, the comfortable +homesteads on every farm, the fat cattle and herds of sheep, the +broad fields of yellow corn, and every sign of fertility. All +these, and perhaps a little admixture of state pride, led me to +say that, after all, the people of Ohio need not go beyond the +bounds of that state with any hope to improve their condition or +to secure a better opportunity for a happy life. I soon parted +with my friends with sincere regrets, for in our journeyings we +were in truth a happy family. + +The canvass in Ohio was then progressing for the election of a +President and Members of Congress, in which I was expected, as +usual, to take a part. The strange anomaly of Horace Greeley +running on a Democratic ticket was enough in itself to excite +opposition, especially in the southern states. The result was that +General Grant, in November, 1872, was elected President by 31 states +with 286 electoral votes. Greeley died after the election, and +before the electors voted, so that no electoral vote was counted +for him. If he had lived he would probably have received 60 +electoral votes. + + +CHAPTER XXIV. +THE PANIC OF 1873 AND ITS RESULTS. +Failure of Jay Cooke and Co.--Wild Schemes "for the Relief of the +People"--Congress Called Upon for Help--Finance Committee's Report +for the Redemption of United States Notes in Coin--Extracts from +My Speech in Favor of the Report--Bill to Fix the Amount of United +States Notes--Finally Passed by the Senate and House--Vetoed by +President Grant and Failure to Pass Over His Objection--General +Effect Throughout the Country of the Struggle for Resumption-- +Imperative Necessity for Providing Some Measure of Relief. + +During the first four years of General Grant's administration the +financial condition of the United States was eminently prosperous. +The total reduction of the national debt, from the 1st of March, +1869, to the 1st of November, 1873, was $383,629,783, the annual +saving of interest resulting therefrom being $27,432,932. During +this period the value of United States notes compared with coin +steadily increased. The funding of the six per cent. bonds into +five per cent. bonds, under the refunding act, continued at the +rate of about $85,000,000 a year. The credit of the United States +steadily advanced during this period, so that the Secretary of the +Treasury, in his report of 1873, stated that it had not stood higher +since the close of the Rebellion than it did at that time. This +improvement of the public credit was accompanied with a large +reduction of internal taxes and duties on imported goods. The +business of the country was prosperous, the increase and extension +of railroads and the development of new industries was marked, +indicating great prosperity. + +All this was subsequently changed by the happening of a panic in +September, 1873. The cause of this was attributed to over-trading, +to the expansion of credits, and to rash investment made in advance +of public needs. This panic commenced by the failure of Jay Cooke +& Co., of Philadelphia, an enterprising firm of high standing, then +engaged in selling the bonds of the Northern Pacific Railroad +Company. I was engaged at that time, with a committee of the +Senate, of which William Windom was chairman, in examining many +plans of public improvements, especially in the increase of facilities +for water transportation at the mouth of the Mississippi river, +and at the great lakes on our northern boundary, improvements since +then made with great benefit to the commerce of the United States. +Roscoe Conkling, of New York, was a member of that committee. We +were at Buffalo when the failure of Cooke & Co. was announced. We +all felt that for the present, at least, our duties as a committee +were at an end. The panic spread so that in a month all industries +were in a measure suspended. The wildest schemes for relief were +proposed, in and out of Congress. The panic spread to the banks, +which were compelled in self-defense to call in their loans, to +withhold their circulating notes, and contract their business. As +usual on the happening of such a panic, an appeal was made to the +treasury for relief, a demand was made for an increase in the volume +of the United States notes, and that the Secretary of the Treasury +should use the money of the government to buy exchange. + +The New York Produce Exchange applied to the Secretary of the +Treasury on the 29th of September, 1873, in resolutions, as follows: + +"Whereas, The critical condition of the commercial interests of +the country requires immediate relief by the removal of the block +in negotiating foreign exchange; therefore be it + +"_Resolved_, That we respectfully suggest to the Secretary of the +Treasury the following plans for relief in this extraordinary +emergency: + +"First, That currency be immediately issued to banks or bankers, +upon satisfactory evidence that gold has been placed upon special +deposit in the Bank of England, by their correspondents in London, +to the credit of the United States, to be used solely in purchasing +commercial bills of exchange. + +"Second, That the President of the United States and the Secretary +of the Treasury are respectfully requested to order the immediate +prepayment of the outstanding loan of the United States due January +1, 1874." + +This request had, as a matter of course, to be denied. But the +secretary did purchase $13,000,000 of bonds for the sinking fund, +to the full extent the condition of the treasury allowed. It is +difficult to realize or to convey by description the wild ideas +developed by such a panic. The government for the time being is +expected to provide a remedy for a condition it did not create, +but, instead of aiding, the government is most likely to need aid. +The revenues from importations fell off and the value of United +States notes declined. + +When Congress convened in December, 1873, the wildest schemes for +relief to the people were proposed. A large increase of United +States notes was demanded. More than sixty bills, resolutions and +propositions were introduced in the Senate in respect to the +currency, the public debt and national banks, all bearing upon the +financial condition of the country, expressing every variety of +opinion, from immediate coin payments to the wildest inflation of +irredeemable paper money. All these were referred to the committee +on finance, then composed as follows: Messrs. Sherman (chairman), +Morrill, of Vermont, Scott, Wright, Ferry, of Michigan, Fenton and +Bayard. + +The several measures referred to the committee were taken up and +considered, but the same wide divergence of opinion was developed +in the committee as existed outside of Congress among the people. + +The majority of the committee reported to the Senate the following +resolution: + +"_Resolved_, That it is the duty of Congress during its present +session to adopt definite measures to redeem the pledge made in +the act approved March 18, 1869, entitled 'An act to strengthen +the public credit,' as follows: 'And the United States also pledges +its faith to make provision, at the earliest practicable period, +for the redemption of United States notes in coin;' and the committee +on finance is directed to report to the Senate, at as early a day +as practicable, such measures as will not only redeem the pledge +of the public faith, but will also furnish a currency of uniform +value, always redeemable in gold or its equivalent, and so adjusted +as to meet the changing wants of trade and commerce." + +Mr. Ferry, of Michigan, a member of the committee, offered the +following substitute for the pending resolution: + +"That the committee on finance is directed to report to the Senate, +at as early a day as practicable, such measures as will restore +commercial confidence and give stability and elasticity to the +circulating medium through a moderate increase of currency." + +Upon these adverse propositions a long debate followed without +practical results. I made a long speech on the 16th day of January, +1874, in favor of the resolution of the committee. I then said: + +"At the outset of my remarks I wish to state some general propositions +established by experience, and the concurring opinions of all +writers on political economy. They may not be disputed, but are +constantly overlooked. They ought to be ever present in this +discussion as axioms, the truth of which has been so often proven +that proof is no longer requisite. + +"The most obvious of these axioms, which lies at the foundation of +the argument I wish to make to-day, is that a specie standard is +the best and the only true standard of all values, recognized as +such by all civilized nations of our generation, and established +as such by the experience of all commercial nations that have +existed from the earliest period of recorded time. While the United +States, as well as all other nations, have for a time, under the +pressure of war or other calamity, been driven to establish other +standards of value, yet they have all been impelled to return to +the true standard; and even while other standards of value have +been legalized for the time, specie has measured their value as it +now measures the value of our legal tender notes. + +"This axiom is as immutable as the law of gravitation or the laws +of the planetary system, and every device to evade it or avoid it +has, by its failure, only demonstrated the universal law that specie +measures all values as certainly as the surface of the ocean measures +the level of the earth. + +"It is idle for us to try to discuss with intelligence the currency +question until we are impressed with the truth, the universality, +and the immutability, of this axiom. Many of the crude ideas now +advanced spring from ignoring it. The most ingenious sophistries +are answered by it. It is the governing principle of finance. It +is proved by experience, is stated clearly by every leading writer +on political economy, and is now here, in our own country, proving +its truth by measuring daily the value of our currency and of all +we have or produce. I might, to establish this axiom, repeat the +history of finance, from the shekels of silver, 'current money with +the merchant,' paid by Abraham, to the last sale of stock in New +York. I might quote Aristotle and Pliny, as well as all the writers +on political economy of our own time, and trace the failure of the +innumerable efforts to establish some other standard of value, from +the oxen that measured the value of the armor of Homeric heroes to +the beautifully engraved promise of our day; but this would only +be the hundred-times-told tale which every student may find recorded, +not only in schoolbooks, but in the writings of Humboldt, Chevalier, +Adam Smith, and others of the most advanced scientific authorities. +They all recognize the precious metals as the universal standard +of value. Neither governments, nor parliaments, nor congresses +can change this law. It defies every form of authority, but silently +and surely asserts itself as a law of necessity, beyond the +jurisdiction of municipal law. + +* * * * * + +"Of late years much difficulty has grown out of the slightly varying +value of silver and gold, as compared with each other, and the +tendency of opinion has been to adopt gold alone as the standard +of value. The United States has twice changed the relative value +of these metals, and other modern nations have been driven to +similar expedients. At the Paris monetary conference, held in +1867, which I had the honor to attend, the delegates of twenty +nations represented agreed to recommend gold alone as the standard +of value. The United States, and nearly all the commercial nations, +have adopted this standard, and reduced the use of silver to a mere +token coinage of less intrinsic value than gold, but maintained at +par with gold by the right to be converted into gold at the will +of the holder. So that for all practical purposes we may regard +gold as the only true standard, the true money of the world, by +which the value of all property, of all productions, of all credits, +and of every medium of exchange, and especially of all paper money, +is tested. + +"Specie, in former times, was not only the universal standard of +value, but it was the general medium of all exchanges. In modern +times this is greatly changed. Specie is still the universal +standard of value, but it has ceased to be even the usual medium +of exchange. The failure to distinguish between the standard of +value and the medium of exchanges occasions many of the errors into +which so many fall, and nearly every Senator who has spoken on one +side of the question has fallen into this error. Specie has lost +a portion of its sovereign power, for with the enormous increase +of exchanges it was found that, valuable as it is, it is too heavy +to transport from place to place as a medium of exchange. The +perils of the sea, the dangers of theft and robbery, led to devices +to substitute promises to pay gold in place of the actual gold. + +* * * * * + +"Mr. president, thus far my remarks are founded upon the experience +of ages, applicable to all countries and to all commercial nations +of our time. I present them now as axioms of universal recognition. +And yet I have heard these axioms denounced in this debate as +'platitudes,' useless for this discussion in the Senate of the +United States. The wisdom of ages, the experience of three thousand +years, the writings of political economists, are whistled down the +wind as if we in the Senate were wiser than all who have reasoned +and thought and legislated upon financial problems--that all this +accumulated wisdom consists of 'platitudes' unworthy to influence +an American Senate in the consideration of the affairs of our day +and generation. + +"Sir, I do not think so. If we disregard these 'platitudes,' we +only demonstrate our own ignorance and punish our constituents with +evils that we ought to avoid. I purpose now to pursue the argument +further, and to prove that we are bound, both by public faith and +good policy, to bring our currency to the gold standard; that such +a result was provided for by the financial policy adopted when the +currency was authorized; that a departure from this policy was +adopted after the war was over, and after the necessity for a +depreciated currency ceased; and that we have only to restore the +old policy to bring us safely, surely, and easily to a specie +standard. + +"First, I present to you the pledge of the United States to pay +these notes in coin 'at the earliest practicable period.' In the +'act to strengthen the public credit,' passed on the 18th day of +March, 1869, I find this obligation: + +'And the United States also solemnly pledges its public faith to +make provision, at the earliest practicable period, for the redemption +of the United States notes in coin.' + +* * * * * + +"The Congress of the United States, in order to put into form its +sense of this obligation, passed the act 'to strengthen the public +credit,' and the last and most important clause of this act is the +promise which I have just read, that these notes should be paid, +'at the earliest practicable period,' in coin. + +* * * * * + +"On the day we made that promise, the 18th of March, 1869, the +greenbacks, the notes of the United States, were worth 75ž cents +in gold; or in other words, gold was at a premium of thirty-two +per cent. . . . What was the result? After you enacted that law-- +the faith of the people of the United States that you would redeem +this pledge--the value of your greenbacks advanced, not rapidly, +but gradually, and in one year, to within twelve per cent. of par +in gold. + +* * * * * + +"Mr. president, we see, then, the effect of this promise. And I +here come to what I regard as a painful feature to discuss--how +have we redeemed our promise? It was Congress that made it, in +obedience to the public voice; and no act of Congress ever met with +a more hearty and generous approbation. But I say to you, with +sorrow, that Congress has done no single act the tendency of which +has been to advance the value of these notes to a gold standard; +and I shall make that clearer before I get through. Congress made +this promise five years ago. The people believed it and business +men believed it. Four years have passed away since then, and your +dollar in greenbacks is worth no more to-day than it was on the +18th of March, 1870; and no act of yours has even tended to advance +the value of that greenback to par in gold, while every affirmative +act of yours since that time has tended to depreciate its value +and to violate your promise. + +* * * * * + +"Every bond that was issued was issued only upon the sacred pledge +contained in this act, that the interest of that bond should be +paid in coin; and the principal should be paid, when due, in coin. +The fifth section of the act provides that all duties on imported +goods shall be paid in coin; and that this money shall be set aside +as a special fund to pay the interest on the bonded debt in coin. +Then, in order to secure the greenbacks, it authorized any holder +of greenbacks to pay any government debt with them; it authorized +the holder of greenbacks to pay any debt, public or private, with +them; and every citizen of the United States was bound to take +them. Then it authorized them to be converted into six per cent. +bonds of the United States--those bonds payable, principal and +interest, in gold. If the policy provided for by this act had been +maintained, we would long since have been at specie payments, +without any serious disturbance of our monetary affairs. + +* * * * * + +"Now, Mr. president, I come to show the Senate how this provision, +the convertible clause of the act of February 25, 1862, was repealed. +On the 3rd of March, 1863, Congress passed 'An act to provide ways +and means for the support of the government.' This act was passed +during the dark hours of the war. The currency of the country did +not flow into the treasury rapidly enough to pay our army. I +remember that at about the time this act was passed there were very +large unpaid requisitions. The Secretary of the Treasury, instead +of issuing any more six per cent. bonds, desired to float a 10-40 +five per cent. bond; in other words, to reduce the burden of interest +upon the public debt. At this time there were three hundred millions +of circulation outstanding, and with all the rights, and all the +privileges, conferred upon the greenbacks, they did not flow into +the treasury fast enough to furnish means to carry on the operations +of the war. + +* * * * * + +"In other words, the suspension of this convertibility clause was +passed with a view to promote conversion; to encourage conversion; +to induce conversion; and, if possible, to induce a conversion into +a five per cent. gold bond instead of into a six per cent. bond. +When the Secretary of the Treasury presented this view to Congress +he was at once met with the pledge of the public faith; with the +promise printed upon the back of the greenbacks that they could be +converted into six per cent. bonds at the pleasure of the holder; +and that we could not take away that right. This difficulty was +met by the ingenuity of the then Senator from Vermont (Mr. Collamer). +He said that no man ever exercised a right which could not properly +be barred by a statute of limitations; and if this right was +injurious to the people of the United States, and prevented the +conversion of these notes into bonds, we might require the holder +of these notes to convert them within a given time; that we could +give them a reasonable time within which they could convert them +into six per cent. bonds, and after that take away the right. + +"The act of March 3, 1863, was amended by inserting this clause: + +'And the holders of United States notes, issued under or by virtue +of said acts, shall present the same for the purpose of exchanging +the same for bonds, as therein provided, on or before the 1st day +of July, 1863; and thereafter the right so to exchange the same +shall cease and determine.' + +* * * * * + +"Now, Mr. president, I have shown you that the greenbacks were +based upon coin bonds; that they had the right to be converted into +coin bonds; that that right was taken away as to the 5-20 bonds; +but that, in practice and in effect, the greenback was convertible +into an interest-bearing bond of the United States up to 1866, and +until the passage of the law to which I will now refer. + +* * * * * + +"If this act had contained a simple provision restoring to the +holder of the greenback the right to convert his note into bonds +there would have been no trouble. Why should it not have been +done? Simply because the then Secretary of the Treasury believed +that the only way to advance the greenbacks was by reducing the +amount of them; that the only way to get back to specie payments +was by the system of contraction. If the legal tender notes could +have been wedded to any form of gold bond by being made convertible +into it, they would have been lifted, by the gradual advance of +our public credit, to par in gold, leaving the question of contraction +to depend upon the amount of notes needed for currency. Sir, it +was the separation of our greenbacks from the funding system that +created the difficulty we have upon our hands to-day; and I say +now that, in my judgment, the only true way to approach specie +payments is to restore this principle, and give to the holder of +the greenback, who is your creditor, the same right that you give +to any other creditor. If he has a note which you promised to pay +and cannot, and he desires interest on that note by surrendering +it, why should you not give it to him? No man can answer that. +It is just as much a debt as any other portion of the debt of the +United States." + +Finally, after more than three months study and debate, a majority +of the committee agreed upon a measure and directed me to report +it to the Senate. It fixed the maximum limit of the United States +notes at $382,000,000. It provided for a gradual payment of these +notes in coin or in five per cent. bonds, at the option of the +Secretary of the Treasury, from the 1st of January, 1876. It was +entitled "An act to provide for the redemption and reissue of United +States notes and for free banking." + +In obedience to the instructions of the committee, on the 23rd of +March, 1874, I reported the bill as an original measure, and said: + +"It is due to the members of the committee on finance that I should +say that the bill which I have just reported, as it appears on its +face, is in the nature of a compromise measure, which is more or +less acceptable all around, but at the same time there are certain +features of the bill which members of the committee on finance will +feel at liberty to express their opposition to, and also to propose +amendments to. It is due to them that I should make this statement. +The bill itself, as appears on its face, is the result of great +labor, long consideration, and the consequence of compromise. In +many cases we were not able, however, to reconcile conflicting +opinions; and on those points, of course, members of the committee +will feel themselves at liberty to oppose certain features of the +bill." + +Mr. Thurman said: + +"I should like to inquire of my colleague whether he proposes to- +day or to-morrow, when he makes the motion that he indicated, to +state what, in the opinion of the committee reporting this bill, +will be its practical effect, so that we may have the views of the +committee as to the workings of the bill should it become a law. +I am sure I, for one, should like very much to know what the +committee, who have devoted so much time to this subject, think +will be the practical working of the measure, at any time that it +suits the convenience of the chairman of the committee to make such +statement." + +I replied: + +"When the subject is introduced, if it be convenient, to-morrow, +I propose to make a very brief statement of the effect of each +section, as we understand it; but I do not intend, by any long +speeches or any remarks, to prolong this matter unnecessarily. I +have expressed my own individual views, and each member of the +committee, I suppose, stands to the opinion expressed by him in +the speeches he has made in the Senate--speeches that were carefully +considered, and by which the position of each Senator was stated; +but undoubtedly I shall feel it my duty, when the bill is called +up, to state what I regard as the actual practical effect of these +different propositions; and some of them, I will now say, I assented +to with great reluctance." + +On the next day the bill was taken up in the Senate, and I then +stated the general provisions of the bill. I insert extracts from +my speech, which indicate the difficulties we encountered: + +"Mr. president, some complaint has been made in the Senate and in +the country at the delay in the presentation, by the committee on +finance, of some bill covering the financial question; but a moment's +reflection will, I am sure, convince every Senator that there has +been no fault on the part of that committee. From the beginning +of the session to this hour that committee, under the direction of +the Senate, has been studying and discussing the various plans and +propositions which were referred to the committee; and I may say +that over sixty different propositions, either coming in the form +of petitions or in the form of bills, have been sent to the committee, +all of these suggesting different plans and ideas. It was impossible +to consider all these and to agree upon any comprehensive measures +until within a day or two. + +"There was another consideration. The committee found itself +divided in opinion, precisely as the country is, and precisely as +the Senate is, into as many as three different classes of opinion. +There were, first, those who desired to take a definite and positive +step toward the resumption of specie payments. There were, second, +those who desired an enlargement of the currency, or what we commonly +call an inflation of the currency. There were, third, those who, +while willing to see the amount of bank notes increased and the +question of the legal tender settled in some form, were also desirous +that some definite step should be taken toward a specie standard. +There were these differences of opinion. + +"For the purpose of ascertaining the views of the Senate, and not +involving ourselves in reporting a bill that would be defeated as +the bill of the last session was, we presented, early in the session, +resolutions of a general character which stated these three ideas: +First, the resolution of the majority of the committee that some +definite step should be taken toward specie payments. Then there +was the amendment offered by the gentleman who now occupies the +chair [Mr. Ferry, of Michigan], that there ought to be an increase +of the currency without reference to any plan of redemption. Third, +there was the proposition made by the Senator from Delaware [Mr. +Bayard], that measures should be taken at once looking to the +resumption of specie payments. + +"These propositions were discussed, and the committee were enlightened +by that discussion; at least they obtained the opinions of Members +of the Senate. Subsequently, in the course of our investigation, +a question about the $25,000,000 section (section 6 of the act of +July 12, 1870) came up, and the committee deemed it right, by a +unanimous vote, to ascertain the sense of the Senate as to whether +they wished this section carried into execution. As it stood upon +the statute book it was a law without force. It was a law so +expressed that the comptroller said he could not execute it. +Therefore the committee reported a bill which would have provided +the necessary details to carry into execution that section of the +existing law. But in the present temper of the public mind, in +the Senate and in the country, that bill was discussed, and has +been discussed day after day, without approaching the question at +all. During all this time the committee have been pursuing their +inquiries, and finally they have reported the bill which is now +before us. + +"The measure that is reported is not a satisfactory one to any of +us in all its details. Probably it is not such as the mind of any +single Member of the Senate would propose. It is in the nature of +a compromise bill, and therefore, while it has the strength of a +compromise bill, it has also the weakness of a compromise bill. +There are ideas in it which, while meeting the views of a majority, +taken separately will be opposed by others. I am quite sure I say +nothing new to the Senate when I say it does not in all respects +meet my own views. But there is a necessity for us to yield some +of our opinions. We cannot reconcile or pass any measure that will +be satisfactory to the country unless we do so. Any positive +victory by either extreme of this controversy will be an absolute +injury to the business of the country. Therefore, any measure that +is adopted ought to be so moderate, pursuing such a middle course, +such a middle ground, that it will give satisfaction to the country. +It must be taken as a whole; and therefore the effect of amending +this proposition will be simply to destroy it. If an amendment in +the direction of expansion is inserted, it will drive away some +who would be willing to support it as is. If an amendment in the +way of contraction is proposed and carried by a majority of the +Senate, it will drive away those who might be willing to take this +measure as a compromise. The only question before the Senate now +is, whether this is a fair compromise between the ideas that have +divided the people of this country and the Members of the Senate; +whether it will surely improve our currency while giving the relief +that is hoped for by a moderate increase of the currency. Now I +ask the secretary to read the first section of the bill." + +The chief clerk read section 1, as follows: + +"_Be it enacted by the Senate and House of Representatives of the +United States of America in Congress assembled_, That the maximum +limit of United States notes is hereby fixed at $382,000,000, at +which amount it shall remain until reduced as hereinafter provided." + +I then continued: + +"It is manifest to every Senator that the initial step in this +controversy is to fix the aggregate limit of United States notes. +The United States notes, although they are very popular, and justly +so, in this country, are at this moment inconvertible; they are +irredeemable, and they are depreciated. These are facts admitted +on all hands. In making that statement I do not intend at all to +deny that the United States notes have served a great and useful +purpose; and though I was here at the birth of them and advocated +them in all stages of their history, yet I am compelled to say at +this moment, twelve years after their issue, that they are +inconvertible; they are irredeemable; and they are depreciated this +day at the rate of twelve per cent. They have been legally +inconvertible since July 1, 1863, and practically inconvertible +since the close of the war; that is, the government refuses to +receive them, either in payment of customs or in payment at par of +any bond of the United States offered by it. They are irredeemable +on their very face. They have depreciated almost from the date of +their issue, at one time being worth only forty cents in gold, and +to-day only worth ninety cents. That is the condition of the United +States notes. + +"Now, there is another thing admitted by all Senators. I do not +trespass on any disputed ground when I say that every addition to +the volume of these notes, while they thus stand depreciated, +irredeemable, and inconvertible, is as certain to further depreciate +them, as it is that to pour water into an overflowing bucket will +cause it still more to overflow; as certain as the law of gravitation; +as certain as anything human or divine. It is equally true that +any contraction of this currency, any withdrawal of the amount of +it, is undoubtedly an appreciation of its value, making it nearer +and nearer to the standard of gold. + +"This is so plain a proposition that it is not necessary to discuss +it; and the whole people of the country understand it; the plainest +and simplest people understand it as well as the wisest. Those +who desire to increase prices, to start and put in operation new +enterprises, desire an increase of the currency without any plan +of redemption. Those, on the other hand, who want to get back to +the specie standard, to appreciate the value of these notes, desire +to withdraw them, get them out of the way, or give new uses and +new values to them so as to advance them nearer and nearer the +standard of gold. Therefore it is that I say the very first step +at the outset of this controversy is to settle what is the legal +limit of these notes; how many are there now authorized by law; +how many are there outstanding. And here it is a strange thing +that on this very point, a purely legal question, the most important +one in our financial discussion, there is a great difference of +opinion. There ought not to be uncertainty or room for a difference +of opinion upon a question of this kind. It ought to be settled. +On the one hand it is insisted by Senators who compose the majority +of the committee on finance that the legal limit of United States +notes is $356,000,000; that the amount which has been already +issued, of what is known as the $44,000,000 reserve, was unlawfully +issued, although under great press of circumstances and without +any intention on the part of the secretary to do more than he +thought he had a lawful right to do. On the other hand it is +insisted by other Senators that the legal limit of United States +notes is $400,000,000; and here is a margin of $44,000,000 upon +which there is a dispute of law as to the power of the secretary +to issue it. That dispute ought to be settled at once. It is a +question that ought not to be in doubt a moment, because the power +to issue that $44,000,000 places it in the discretion of the +Secretary of the Treasury either to advance or to lower the value +of all property in the United States, of all debts in the United +States, of everything that is measured by United States notes. + +"Should we undertake to say that the secretary did wrong in exceeding +the limit at $356,000,000? A majority of the committee believe +that that is now the legal limit, and believe it conscientiously. +But should be undertake to fix that as the legal limit? Twenty- +six million dollars of the $44,000,000 are outstanding. They are +now issued; they are now a part of the currency of the country. +They are just as much the currency as that which was issued before. +You cannot distinguish between them. You cannot say which of the +$382,000,000 now outstanding is legal and which is illegal. So +far as the United States are concerned, they are all debts of the +United States which we are bound to pay, whether they have been +issued legally or illegally. I do not understand even my friend +from Delaware to dispute the duty and obligation of the United +States to pay these notes, even if they have been illegally issued. +There can be no question about it. It is impossible to distinguish +between them. The only question is whether our agent exceeded his +authority or not. Therefore, without raising the question as to +the legality of this issue, reserving to each Senator his own +opinion on the subject, we have adopted as the _status quo_ +$382,000,000, the amount now outstanding; and we recognize that +amount as the maximum legal obligation of the United States in the +form of notes, and we propose upon that basis to erect our +superstructure. We therefore say that we will raise no question +as to the mode of retiring the $26,000,000; we will simply say that +the amount now outstanding shall never be exceeded. That is a +recognition, at least, that they are outstanding lawfully and +properly; at any rate, so far as the obligation of the United States +to pay them is concerned. + +"Mr. president, a limit ought to be fixed. But there is a difference +of opinion as to what should be the limit. If I had the power to +fix this limit I should say that the limit which was fixed by the +old law should remain at $356,000,000; and I would provide a mode +and manner of issuing United States bonds to retire the $26,000,000 +slowly and gradually, without disturbing the ordinary business of +the country. I would thereby seek to recover the ground we have +lost by what has occurred since the panic, and go back to the +standard prior to that time. But I know that would be very difficult; +that would involve an increase of the bonded debt. Our revenues +are not sufficient to call in this $26,000,000. We have no surplus +revenue now as we had a year or two ago. We could only do it by +the issue of bonds, and the process itself would be a very hard +one. Besides, it is probable that public opinion and the judgment +of Congress would not sustain such a proposition; and therefore it +is hardly worth while to recommend it. We assume, therefore, that +the $382,000,000 is the present limit, and we say that shall be +the maximum limit. + +* * * * * + +"I said it was a compromise by the committee. I speak of a majority +of the committee. As a matter of course my friend is at liberty +to dissent from any of its propositions. On question of this kind +committees are very rarely unanimous; but I will say that on this +point a very decided majority of the committee concurred in the +section. + +"To the second section I wish to invite the careful and earnest +attention of the Senate. This section is an honest effort to deal +with the great problem of redemption. Every Senator who has spoken +contemplates that a time must come when all the United States notes +must be redeemed in coin. The public faith of the United States +is so pledged. The notes were issued with the understanding that +they should be paid in coin. No man could survive politically in +this country who would declare that it was his purpose never to +pay these notes in coin. My friend who now presides [Mr. Ferry, +of Michigan], speaks always of his measure of inflation as a means +of bringing about at some time specie payments; and I will say that +in the Senate I have not heard any Senator deny that it is the duty +of the United States at some time to pay these notes in coin. In +all this discussion there is at least that one point agreed upon. +If I state this too strongly I hope I will be here corrected. + +"Now, Mr. president, how shall it be done, and when shall it be +done? I say that now, nine years after the close of our Civil War, +twelve years after these notes have been authorized and issued, +five years after the dominant party has declared its purpose to +pay them at the earliest day practicable, there should be no longer +delay. The United States ought to do something toward the fulfillment +of that pledge and the performance of that duty. There must be +something very peculiar in the condition of our country that will +justify a longer delay; a longer procrastination in the performance +of this solemn pledge, this public policy--our own political +obligation. + +"Mr. president, this section is the result of the patient consideration +of the committee on finance as to how this result is to be brought +about; and upon this very section there is most likely to be a +contrariety and difference of opinion among Senators, because the +mode and manner of redemption is the thing which has excited the +public mind and upon which men all over the country differ. I +wish, therefore, to deal with this question. We have got to pay +these notes in coin. The time when is not defined by the law. +Are we prepared now to fix a day when we will pay these notes in +coin? If the condition of our country was such as to justify it, +I would greatly prefer fixing the time when these notes should be +paid in coin; but I am disposed to agree with what has been stated +by the Senator from Indiana, and by other Senators, that in the +present condition of our coinage, the present condition of our +foreign trade, we are not prepared to fix a definite day when we +will pay in coin. Why? I find, by reference to official documents, +that we now have in gold and silver coin in this country about +$140,000,000. This statement of Dr. Linderman does not include +the bullion on hand. How much that is I am not prepared to state. +The whole amount of gold and silver coin in the country, however, +is about $140,000,000. Some of that is in circulation in the +Pacific states, but the bulk of it is in the treasury of the United +States, the property of individuals and the property of the United +States. The total annual production of gold and silver in this +country cannot be estimated at over $70,000,000; and heretofore, +at least $50,000,000 of this has been exported over and above the +amount that has been imported. The balance of trade has been +against us; and although I do not regard that as entering much into +the calculation, yet it is a fact that until recently, perhaps, +the balance of trade has been against us. The annual coinage of +the United States for the last year or two has been largely +increasing, and last year the coinage of the United States was +$38,689,183, besides stamping into fine bars, which operate as a +kind of coinage, of $27,517,000. So that there has been in fact +converted, of gold and silver, into coin, or bars stamped by the +United States, $66,000,000 during the last year, showing a use and +employment of gold in this country that is now rapidly increasing. + +"But still this state of affairs would not justify us in saying +that we are prepared to declare a resumption of specie payments +absolutely upon the basis of $800,000,000 of paper money, including +our fractional currency. I am, therefore, not prepared to say that +the United States can, on a fixed day, within a reasonable time-- +within such a time as would give confidence in our ability to +perform it--say that we will absolutely redeem our notes in coin. + +"I know that Senators here, for whose opinion I have the highest +respect, who are probably more sanguine of our ability and capacity +to do this than I am--many of those who have agreed with me and co- +operated with me--think we are able and strong enough to fix the +time for the absolute resumption of specie payments; but I have +always doubted it. Indeed I have thought there was a better way +to reach the great result. But if we cannot fix the time when we +will redeem in coin, can we not give additional value to our United +States noes, so as to gradually appreciate them to the coin standard, +and thus advance toward specie payments if we cannot reach the +goal? Because we cannot accomplish all that we have agreed to do +in a given time, does that relieve us from the necessity of +progressing in that direction? When we have before us a long +journey that will take months to pass, perhaps years, shall we +delay starting on that journey because we cannot reach the end of +it in a year or two? Not at all. I therefore say that the time +has arrived this moment when the United States ought to do something +to advance its notes to the specie standard. + +"Now what is that something? There are two propositions, and only +two propositions, that have been made, aside from absolute coin +redemption, that have had any strength whatever. One is to allow +the United States notes to be received in payment of customs duties, +the other is to allow United States notes to be converted into +bonds. In regard to the first, I agree entirely that if the matter +was open now to our choice and selection, one of the best methods +we could adopt to advance our notes to par in gold would be by +repealing that restriction which prevents the receiving of them +for customs duties; but we are met there by the sacred pledge of +the United States; we are met there by the fact that customs duties +are, by the law of 1862, agreed to be collected in coin." + +Mr. Bayard inquired: + +"Does not the law provide that the customs duties shall be paid in +coin or in notes of the United States? Is not the alternative +given by the law?" + +I replied: + +"O, no. If the Senator will look at section 5 of the act of February +25, 1862--my friend from Vermont can turn to it in a moment--he +will find that there is an express stipulation that the customs +duties shall be collected in coin, and that this coin shall be set +aside as a pledge--legal language is used--and shall only be applied, +first, to the payment of the interest on the public debt, and, +secondly, to the establishment of a sinking fund of one per cent. +That was the basis of the obligation of the United States to pay +in coin, and but for the fact that we collected our customs duties +in coin during the war we could not have paid the interest on our +public debt in coin, and therefore our bonds would have sunk out +of sight. That pledge we cannot now violate; and I never have yet +been able to bring my mind to the consideration of any proposition +whatever which would ever shock or excite the fear of the public +creditors in that respect. The safety of the public creditors +consists in having a specific fund for the payment of their interest; +the principal will take care of itself; and that fund has always +been maintained in the darkest hours of the war. Except the +propositions that have been made here and there to impair that fund +by allowing a portion of the customs duties to be paid in currency, +it has never been either invaded or threatened; but all such +propositions have been voted down. I, therefore, while I see the +policy and the expedience of allowing these notes to be used in +payment of customs duties, simply say we are precluded from that +remedy because we have mortgaged that fund, and we have no power +to take them for any purpose except that which the mortgage +stipulates. + +* * * * * + +"We then come to the redemption in bonds. There is the moral +obligation, on the part of the United States, which has issued its +notes payable in coin, but for reasons of public policy does not +pay in coin, to give to its creditors its notes bearing interest +in place of coin. The United States cannot plead inability to pay +interest on its notes if it will not or cannot pay the principal. +Why should not the United States give its obligation bearing interest +just as any individual would have to do? There is a moral obligation +which rests upon the United States every day of the year to every +holder of these notes, because, although the United States has not +said when it will redeem these notes in coin, yet it is bound to +do what it can to give them additional value. Although it may not +receive these notes for customs duties, why can it not receive +these notes in payment of bonds? Why discriminate against these +notes in the sale of bonds? The answer is, that during the war we +were compelled to do it; and so we were. I very reluctantly yielded +to that necessity. We were compelled to do it; but, sir, it was +only expected that that would continue to the close of the war; +and, practically, during the whole of the war these notes were +received at par for bonds at par. + +"If, therefore, we are to take any step toward specie payments, +why not give to the holder of United States notes who demands it, +a bond of the United States bearing a reasonable rate of interest +in exchange for his notes? This should only be done after a +reasonable time, so as to prevent any injury to the private contracts +between debtor and creditor. When we cannot pay the coin, we are +honorably and sacredly bound to pay in a bond of the United States, +which in ordinary times would approximate to par in gold. In other +words, this is a qualified redemption. The Senator from Indiana +calls it a 'half-way measure.' It is a half-way measure in the +right direction, and indeed it is practical specie payment." + +The bill led to a long continuous debate which extended to the 6th +of April, 1874. Several amendments were offered and adopted which +enlarged the maximum of notes to $400,000,000, and greatly weakened +the bill as a measure of resumption of specie payments. By reason +of these amendments many of those who would have supported the bill +as introduced voted against it on its passage, I among the number. +The bill, however, passed the Senate by a vote of yeas 29 and nays +24. The title of the bill was changed to "A bill to fix the amount +of United States notes and the circulation of national banks, and +for other purposes." This change of title indicates the radical +change in the provisions of the bill. Instead of a return to specie +payments, it provided for an expansion of an irredeemable currency. + +The bill, as it passed the Senate, was as follows: + +"_Be it enacted, etc.,_, That the maximum amount of United States +notes is hereby fixed at $400,000,000. + +"Sec. 2. That forty-six millions in notes for circulation, in +addition to such circulation now allowed by law, shall be issued +to national banking associations now organized and which may be +organized hereafter, and such increased circulation shall be +distributed among the several states as provided in section 1 of +the act entitled 'An act to provide for the redemption of the three +per cent. temporary loan certificates and for an increase of national +bank notes,' approved July 12, 1870. And each national banking +association, now organized or hereafter to be organized, shall keep +and maintain, as a part of its reserve required by law, one-fourth +part of the coin received by it as interest on bonds of the United +States deposited as security for circulating notes or government +deposits; and that hereafter only one-fourth of the reserve now +prescribed by law for national banking associations shall consist +of balances due to an association available for the redemption of +the circulating notes from associations in cities of redemption, +and upon which balances no interest shall be paid." + +The bill was taken up in the House of Representatives on the 14th +of April, 1874, and, without any debate on its merits, was passed +by the vote of 140 yeas and 102 nays. + +On the 22nd of April, President Grant returned the bill to the +Senate with his veto, and the Senate, upon the question, "Shall +the bill pass notwithstanding the objections of the President of +the United States," voted 34 yeas and 30 nays. I voted nay. The +president of the Senate declared "that two-thirds of the Senators +present not having voted in the affirmative the Senate refuses to +pass the bill." + +Thus, for that session, the struggle for resumption ended; but the +debate in both Houses attracted popular discussion, and tended in +the right direction. The evil effects of the stringency in monetary +affairs, the want of confidence, the reduction of the national +revenue, the decline of domestic productions, all these contributed +to impress Congress with the imperative necessity of providing some +measure of relief. Instead of inflation, of large issues of paper +money by the United States and the national banks, there grew up +a conviction that the better policy was to limit and reduce the +volume of such money to an amount that could be maintained at par +with coin. + +During the canvass that followed I spoke in many parts of Ohio, +confining myself chiefly to financial questions. The stringency +of the money market which occurred the preceding year still continued, +and great interest was manifested in the measures proposed during +the preceding session, especially in the defeat of the bill to +prevent the contraction of the currency. At the request of General +Garfield I spoke in Warren in his Congressional district, where he +met, for the first time, a decided opposition. I insert his +autograph letter, the original being in his familiar hand writing: + + "Hiram, Ohio, September 25, 1874. +"Dear Senator:--In accordance with the arrangement which I made +with you and with the central committee, we have posted you for a +mass meeting at Warren, on Saturday afternoon, October 10. I hope +I shall not embarrass you by suggesting that in your speech you +take occasion to say a few words in reference to my standing and +public service as a representative. It will do much to counteract +the prejudice that a small knob of persistent assailants have +created against me. I write also to inquire if you will be willing +to speak at another place the same evening. If so, we are very +anxious to have you do so. Please telegraph me to Garrettsville, +Ohio, and oblige, + + "Very truly yours, + "J. A. Garfield." + + +CHAPTER XXV. +BILL FOR THE RESUMPTION OF SPECIE PAYMENTS. +Decline in Value of Paper Money--Meeting of Congress in December, +1874--Senate Committee of Eleven to Formulate a Bill to Advance +United States Notes to Par in Coin--Widely Differing Views of the +Members--Redemption of Fractional Currency Readily Agreed to--Other +Sections Finally Adopted--Means to Prepare for and Maintain Resumption +--Report of the Bill by the Committee on Finance--Its Passage by +the Senate by a Vote of 32 to 14--Full Text of the Measure and an +Explanation of What It Was Expected to Accomplish--Approval by the +House and the President. + +When Congress met in December, 1874, the amount of United States +notes outstanding was $382,000,000. The fractional notes outstanding +convertible into legal tenders amounted to $44,000,000, and the +amount of national bank notes redeemable in lawful money was +$354,000,000, in all $780,000,000. Each dollar was worth a fraction +less than 89 cents in coin. While these notes were at a discount +coin did not and could not circulate as money. The government +exacted coin for customs duties and paid coin for interest on its +bonds. If there was an excess of coin received from customs to +pay interest then the excess was sold at a premium. If the receipts +from customs were insufficient to pay the interest on bonds, the +government had to buy the coin and pay the premium. The people +who were demanding more money to relieve the stringency did not +see that the best way to get more money into circulation was to +adopt measures that would make United States notes and bank notes +equal to coin, when all three forms of money would enter into +circulation and thus give them more money and all kinds of equal +value. + +While our paper money was depreciated the gold and silver bullion +from our mines went abroad and was converted into foreign coin, +while a large portion and perhaps a majority of our people demanded +more paper money, which declined in value in exact proportion to +its increase. During the war vast expenditures compelled us to +use paper money; the return of peace and the excess of revenue over +expenditures should have been promptly followed by coin payments +or notes payable in coin. We delayed this process so long that +the popular mind rested content with depreciated money, but the +panic of 1873, and the feverish speculation which preceded it, +convinced the great body of our business men that there was no +remedy for existing evils but a return to specie payments. + +Another bill concerning currency and free banking was reported by +Horace Maynard, of Tennessee, on the 29th of January, 1874, from +the committee on banking and currency of the House of Representatives, +which provided for free banking and a gradual reduction and +cancellation of United States notes by the issue of notes payable +in gold in two years from the passage of the bill. This was fully +debated in the House of Representatives and amended and passed. +In the Senate it was reported by me from the committee on finance, +with a substitute which provided for free banking and that on and +after the 1st of January, 1877, and holder of United States notes +might present them for payment either in coin or five per cent. +bonds of the United States, at the suggestion of the Secretary of +the Treasury. This substitute was amended in the Senate by striking +out all provisions for the redemption of United States notes, +leaving the measure one for free banking alone. The House disagreed +to the amendments and a committee of conference was appointed, +which resulted in a measure fixing the amount of United States +notes outstanding at $382,000,000, and making no provision for +their redemption. It was a crude and imperfect measure. I voted +for it because it provided for a redistribution of national banks +among the states. I said: "Because I cannot get a majority of +both Houses of Congress to agree to specie resumption I ought not +therefore to refuse to vote for a bill on the subject of banking +and currency." The bill was approved by the President on the 20th +of June, 1874. This long struggle prepared the way for the result +accomplished at the next session. + +When Congress met in December, 1874, the feeling that the remedy +for existing evils was the return to specie payments, was general +among Republican Senators and Members. The abortive efforts of +the previous session and the veto of President Grant of one of the +bills referred to contributed to it. At the first Republican +conference I called attention to the necessity of our uniting, if +possible, on some measure that would advance United States notes +to par in coin and moved that a committee of eleven Senators be +created to formulate a bill for that purpose. It was agreed to, +and, as the names of the Senators composing the committee have +already been published, I feel justified in repeating them: The +committee consisted of Senators John Sherman (chairman), William +B. Allison, George S. Boutwell, Roscoe Conkling, George F. Edmunds, +Thomas W. Ferry, F. T. Freylinghuysen, Timothy O. Howe, John A. +Logan, Oliver P. Morton, and Aaron A. Sargent. + +When the committee met it was agreed that each member should state +how far he would go in the direction of specie resumption. When +these statements were made it was manifest that the divergence of +opinion was so great that an agreement was almost impossible. Yet, +the necessity of an agreement was so absolute that a failure to +agree was a disruption of the Republican party. + +The first section of the act to provide for the resumption of specie +payments, which related to the coinage and issue of fractional +silver under the act of February 21, 1853, and the redemption of +an equal amount of fractional currency outstanding should be +redeemed, and was readily agreed to. This fractional currency was +so worn and filthy, and it cost so much to reissue, that by general +consent its destruction was agreed to, and its replacement by bright +new silver coin, which followed, was heartily welcomed. + +The second section was an unjust concession to the miners of gold. +It repealed the coinage charge for converting standard gold bullion +into coin. This charge had been maintained, not only to cover the +cost of coining, but to prevent the exportation of American coins. +If the coins were of less value than the bullion of which they were +made, however small the difference, they would not be exported +while bullion could be had for exportation. The concession was +made and the charge for coinage of gold was prohibited. + +The free banking provisions in the third section were not seriously +contested. The contraction of the volume of United States notes +as national bank notes increased, was one of the chief subjects of +disagreement. It was finally agreed that this contraction should +extend only to the retirement of United States notes in excess of +$300,000,000. + +The most serious dispute was upon the question whether United States +notes presented for redemption and redeemed could be reissued. On +the one side it was urged that, being redeemed, they could not be +reissued without an express provision of law. The inflationists, +as all those who favored United States notes as part of our permanent +currency were called, refused to vote for the bill if any such +provision was inserted, while those who favored coin payments were +equally positive that they would vote for no bill that permitted +notes once redeemed to be reissued. This appeared to be the rock +upon which the party in power was to split. I had no doubt under +existing law, without any further provision, but that United States +notes could be reissued. It was finally agreed that no mention +should be made by me for or against the reissue of notes, and that +I must not commit either side in presenting the bill. + +The date for general resumption of specie payments on all United +States notes was fixed on the first of January, 1879, four years +from the framing of this bill. The important and closing clause +of the bill was referred to Mr. Edmunds and myself. It provided +the means to prepare for and to maintain resumption. It placed +under the control of the Secretary of the Treasury all the surplus +revenue in the treasury, and gave him full power to issue, sell +and dispose of, at not less than par in coin, any of the bonds +described in the refunding act. We were careful to select phraseology +so comprehensive that all the resources and credit of the government +were pledged to redeem the notes of the United States, as fully +and completely as our Revolutionary fathers pledged to each other +their lives, their fortunes, and their sacred honor, in support of +the declaration of American independence. + +After every sentence and word of this bill had been carefully +scrutinized, I was authorized by every member of the committee to +submit it to the committee on finance, and to report it from that +committee as the unanimous act of the Republican Senators. We +naturally expected some support from Mr. Bayard and other Democratic +Senators, who, no doubt, were in favor of specie payments, but they +perhaps thought it best not to share the risk of the measure. + +I reported the bill from the committee on finance on the 21st of +December, 1874, and gave notice that on the next day I would call +it up with a view to immediate action. On the 22nd, after the +morning business, I moved to proceed to the consideration of the +bill, and gave notice that I intended to press it to its passage, +from that hour forward, at the earliest moment practicable. It +was well understood that the bill was the result of a Republican +conference. It was taken up by the decisive vote of 39 yeas to 18 +nays. + +It was not my purpose to do more than to present the provisions of +the bill. My brief statement led to a desultory debate, participated +in almost exclusively by Democratic Senators, the Republican Senators +remaining silent. Several votes were taken, each showing a majority +of more than two-thirds in favor of the bill and against all +amendments. It passed the Senate without change by the vote of 32 +yeas to 14 nays. + +I here insert the bill as introduced and passed, with my statement +in support of its provisions: + + "AN ACT TO PROVIDE FOR THE RESUMPTION OF SPECIE PAYMENTS. +"_Be it enacted by the Senate and House of Representatives of the +United States of America in Congress assembled_, That the Secretary +of the Treasury is hereby authorized and required, as rapidly as +practicable, to cause to be coined, at the mints of the United +States, silver coins of the denominations of ten, twenty-five, and +fifty cents, of standard value, and to issue them in redemption of +an equal number and amount of fractional currency of similar +denominations, or, at his discretion, he may issue such silver +coins through the mints, the sub-treasuries, public depositaries, +and post offices of the United States; and, upon such issue, he is +hereby authorized and required to redeem an equal amount of such +fractional currency, until the whole amount of such fractional +currency outstanding shall be redeemed. + +"Sec. 2. That so much of section three thousand five hundred and +twenty-four of the Revised Statutes of the United States as provides +for a charge of one-fifth of one per centum for converting standard +gold bullion into coin is hereby repealed; and hereafter no charge +shall be made for that service. + +"Sec. 3. That section five thousand one hundred and seventy-seven +of the Revised Statutes, limiting the aggregate amount of circulating +notes of national banking associations, be, and hereby is, repealed; +and each existing banking association may increase its circulating +notes in accordance with existing law, without respect to said +aggregate limit; and new banking associations may be organized in +accordance with existing law, without respect to said aggregate +limit; and the provisions of law for the withdrawal and redistribution +of national bank currency among the several states and territories +are hereby repealed. And whenever, and so often, as circulating +notes shall be issued to any such banking association, so increasing +its capital or circulating notes, or so newly organized as aforesaid, +it shall be the duty of the Secretary of the Treasury to redeem +the legal tender United States notes in excess only of three hundred +millions of dollars, to the amount of eighty per centum of the sum +of national bank notes so issued to any banking association as +aforesaid, and to continue such redemption as such circulating +notes are issued until there shall be outstanding the sum of three +hundred million dollars of such legal tender United States notes, +and no more. And on and after the first day of January, anno Domini +eighteen hundred and seventy-nine, the Secretary of the Treasury +shall redeem in coin the United States legal tender notes then +outstanding, on their presentation for redemption at the office of +the assistant treasurer of the United States in the city of New +York, in sums of not less than fifty dollars. And to enable the +Secretary of the Treasury to prepare and provide for the redemption +in this act authorized or required, he is authorized to use any +surplus revenues from time to time in the treasury not otherwise +appropriated, and to issue, sell, and dispose of, at not less than +par in coin, either of the descriptions of bonds of the United +States described in the act of Congress approved July fourteenth, +eighteen hundred and seventy, entitled 'An act to authorize the +refunding of the national debt,' with like qualities, privileges, +and exemptions, to the extent necessary to carry this act into full +effect, and to use the proceeds thereof for the purposes aforesaid. +And all provisions of law inconsistent with the provisions of this +act are hereby repealed." + +I said: + +"Mr. president, I do not intend to reopen the debate on financial +topics of last session. That debate was carried to such great +length that it was not only exhaustive, but it was exhausting, not +only mentally but physically. The Senate is composed of the same +persons who shared in that debate, and it is utterly idle for us, +in this short session, to reopen it and to invite the discussion +of the various topics presented in that debate. The Senate is now +within less than three months, a little more than two months, of +its adjournment, and there is a general feeling throughout the +country, shared by all classes of people, that this Congress ought +to give some definite notice to the people of this country as to +their purpose in the important topics embraced in this bill; and +I say to Senators on all sides of the House that this bill contains +enough to accomplish the important object declared by the title of +the bill, and this without reviving all the troublesome and difficult +questions which were discussed at the last session. It contains +a few simple propositions which may be separated from the mass of +financial topics discussed at the last session. Its purpose is +declared upon the title of the bill, 'An act to provide for the +resumption of specie payments.' Every word, every line, and every +provision, of this bill is in harmony with that title. It will +tend to promote the resumption of specie payments. It may fall +short in many particulars of the desire of some Senators; and it +does go further in that direction than some Senators were willing +to support at the last session. It is a bill which demands reasonable +concession from every Member of the Senate. If we undertake now +to seek to carry out the individual views of any Senator, we cannot +accomplish the passage of any bill to promote this object, and +therefore this bill has demanded of everyone who has consented to +it thus far a surrender of some portions of his opinions as to +measures and means to accomplish the great purpose. I will consider +my duty done, so far as this bill is concerned, by simply stating +its provisions and calling attention to the character of those +provisions, without entering into a single topic that gave rise to +the long discussion at the last session. + +"The bill is intended to provide for the resumption of specie +payments. The first section of the bill provides for the resumption +of specie payments on the fractional currency. It is confined to +that subject alone. It so happens that at this particular period +of time the state of the money market, the state of the demand for +silver bullion, and more especially the recent action of the German +Empire, which has demonetized silver and thus cheapened that product, +enables us now, without any loss of revenue, without any sacrifice, +to enter the market for the purchase of bullion and resume specie +payments on our fractional currency. The market price of bullion +to-day will justify the government of the United States, without +any sacrifice, at a price about equivalent to, or perhaps a trifle +above, our fractional currency--scarcely a shadow above our fractional +currency--to purchase silver bullion in the money markets of the +world, mostly of our own production, perhaps entirely of our own +production. This bill simply directs that the Secretary of the +Treasury shall purchase this bullion and shall coin silver coin +and substitute that in the place of fractional currency. This +section is recommended not only by the Secretary of the Treasury +and the President of the United States, but I believe will meet +the general concurrence of every Member of the Senate, and we +fortunately are enabled to embrace the present time to commence +this operations without any loss to the government, except perhaps +the cost of the coinage of this silver may have to be paid out of +the treasury of the United States. That coinage may be done in +the ordinary course of business without any increase of expenditures. +The mints of the United States are now prepared, immediately upon +the passage of this bill, to resume the coinage of silver coins +of all the legal denominations. Therefore the committee has provided +that the Secretary of the Treasury shall proceed to coin the silver +coins, and in one of several ways to issue them in place of fractional +currency. + +"I need not dwell further upon this section, because I believe it +will meet with the general assent of the Senate. It provides for +the immediate resumption of specie payments upon the fractional +currency, or at least as immediate as possible; that is, as soon +as the government of the United States can, in the mints of the +United States, coin the silver coin. That process may continue +one, two, or three years, how long we cannot tell, depending entirely +upon the force that may be employed in that direction. It takes +a much longer time to coin these small coins than gold coins, and +the operation will probably take more time than it would to coin +any considerable amount of gold coin." + +Mr. Hamilton, of Maryland, inquired: + +"I would ask the Senator if there is authority to reissue that +fractional currency?" + +I said: + +"I will come to that in a moment. The second section of this bill +simply removes an inducement that now exists to export our gold +bullion from the United States to Great Britain, where, by the long +established laws of that country, they coin money free of charge. +This section involves the surrender of about $85,000 a year of +revenue; that is, the government of the United States received last +year for coining gold coins, $85,000, or one-fifth of one per cent. +on forty-five millions of gold coined. The only sacrifice of +revenue, therefore, by the second section of the bill, is the +sacrifice or surrender of $85,000, which heretofore has been levied +upon those who produce gold bullion in order to convert it into +coin. In the opinion of many men, among them the Secretary of the +Treasury, the director of the mint, and perhaps a large number of +Senators heretofore, this will tend, in a slight degree at any +rate, to prevent the exportation of the gold of our own country +into foreign parts, because when the government of the United States +undertakes to put gold bullion in the form of gold coin without +additional charge the tendency will inevitably be for the gold +bullion to flow into the mints for coinage, and being put into the +form of American coin, it is thought by a great many people that +this will tend to prevent its exportation. To the extent it does +so it prepares us for specie payments. That is the whole of the +second section. + +"The third section of the bill contains only two or three affirmative +propositions. The first is that after the passage of this act +banking shall be free. Perhaps there is no idea stronger in the +minds of the American people than a feeling of hostility against +a monopoly--a privilege that one man or set of men can enjoy which +is denied to another man or set of men. Under the law as it now +stands banking is substantially free in the southern and some of +the western states; but banking is not free in the great commercial +states, in the older states, where wealth has accumulated for ages. +This may be a mere sentimental point, but it is well enough to meet +it; and by the operation of this bill banking is made free, so that +there will be no difficulty hereafter for any corporation organized +as a national bank either to increase its circulation or for banks, +to be organized under the provisions of existing law, to issue +circulating notes to any extent within the limits and upon the +terms and provisions of the banking law. This section, therefore, +by making banking free, provides for an enlargement of the currency +in case the business of the community demands it, and in case any +bank in the United States may think it advisable or profitable to +issue circulating medium in the form of bank notes, under the +conditions and limitations of the banking law. Coupled with that +is a provision, an undertaking, on the part of the United States, +that as banks are organized or as circulating notes are issued, +either by old or new banks, the government of the United States +undertakes to retire eighty per cent. of that amount of United +States notes. In other words, it proposes to redeem the United +States notes to the extent of eighty per cent. of the amount of bank +notes that may be issued; and here is the first controversial +question that arises on this bill and the first that is settled. + +"It may be asked if we provide for the issue of circulating notes +to banks, why not provide for the retirement of an equal amount of +United States notes. The answer is that under the provisions of +the banking act, by the law as it now stands, a bank cannot be +organized and maintained in existence unless the reserve which is +in that bank, or required for that bank in the ordinary course of +business, either on its deposits or circulation, is at least equal +to twenty per cent. of the amount of its circulating notes, so that +it was believed, according to the judgment of the best business +men of the country, and I may say with the comptroller of the +currency, that the retirement of eighty per cent. of the amount of +bank notes is fully equivalent to keeping the amount of circulating +medium in actual circulation on the same footing, so that this +provision of the bill neither provides for a contraction nor +expansion of the currency, but leaves the amount to be regulated +by the business wants of the community, so that when notes are +issued to a bank eighty per cent. of the amount in United States +notes is redeemed, and this process continued until United States +notes are reduced to three hundred millions." + +Mr. Schurz asked: + +"Will the Senator permit me to ask him a question in reference to +this section? When the eighty per cent. of greenbacks are retired +will they be destroyed and never used again?" + +I replied: + +"I will speak of that in a moment in connection with other sections. +Now, Mr. president, that is all there is in regard to banking in +this bill and also in regard to the retirement of the United States +notes until the time for the resumption of specie payments comes, +when this bill provides for actual redemption in coin of all notes +presented. It has always been a question in the minds of many +people as to whether it is wise to fix a day for specie payments. +That matter was discussed at the last session of Congress by many +Senators, and the general opinion seemed to be that if we would +provide the means by which specie payments would be resumed it +might not be necessary to fix the day; but, on the other hand, it +is important to have our laws in regard to the currency fix a +probable time, or a certain time, when everybody may know that his +contracts will be measured by the coin standard. We also know, by +the example of other nations which have found themselves in the +condition in which we are now placed, and by some of the states +when specie payments were suspended, that they have adopted a +specific day for the resumption of specie payments. In England, +by the bank act of 1819, they provided for the resumption of specie +payments in 1823, making four years. In our own states--in New +York, in Ohio, in nearly all the states--when there has been a +temporary suspension of specie payments a time has been fixed when +the banks were compelled to resume, and this bill simply follows +the example that has been set by the states, by England, and by +other nations, when they have been involved in a like condition. + +"This bill also provides ample means to prepare for and to maintain +resumption. I may say the whole credit and money of the United +States is placed by this bill under the direction of the proper +executive officers, not only to prepare for but to maintain +resumption, and no man can doubt that if this bill stands the law +of the land from this time until the 1st day of January, 1879, +specie payments will be resumed, and that our United States notes +will be converted at the will of the holder into gold and silver +coin. + +"These are all the provisions contained in this bill. They are +simple and easily understood, and every Senator can pass his judgment +upon them readily. + +"Now I desire to approach a class of questions that are not embraced +in this bill. Many such, and I could name fifty, are not included +in this bill, and I may say this: That if there should be a +successful effort, by the Senate of the United States, to ingraft +any of this multitude of doubtful or contested questions upon the +face of this bill it would inevitably tend to its defeat. I am +free to say that if I were called upon to frame a bill to accomplish +the purpose declared in the title of this bill, I would have provided +some means of gradual redemption between this and the time fixed +for final specie payments. All these means are open to objection. + +"There have been three different plans proposed to prepare for +specie payments, and only three. They are all grouped in three +classes. One is what is called the contraction plan. The simplest +and most direct way to specie payments is, undoubtedly, the gradual +withdrawal of United States notes or the contraction of the currency. +Now, we know very well the feeling with which that idea is regarded, +not only in this Senate, but all through the country. It is believed +to operate as a disturbing element in all the business relations +of life; to add to the burden of the debtor by making scare that +article in which he is bound to pay his debts; and there has been +an honest, sincere opposition to this theory of contraction. +Therefore, although it may be the simplest and the best way to +reach specie payments, it is entirely omitted from this bill. + +"The second plan, that I have favored myself often, and would favor +now, if I had my own way, and had no opinion to consult but my own, +is the plan of converting United States notes into a bond that would +gradually appreciate our notes to par in gold. That has always +been a favorite idea of mine. There is nothing of that kind in +this bill, except those provisions which authorize the Secretary +of the Treasury to issue bonds to retire the greenbacks as bank +notes are issued; and it also authorizes the Secretary of the +Treasury to issue bonds to provide for and to maintain resumption. +I therefore have been compelled to surrender my ideas on this bill +in order to accomplish a good object without using these means that +have been held objectionable by many Senators. + +"The third plan of resumption has been favored very extensively in +this country, which is the plan of a graduated scale for resumption +in coin or bullion; what I call the English plan. That is, that +we provide now for the redemption, at a fixed rate or scale or +rates, of so much gold for a specific sum of United States notes. +At present rates we would give about $90 of gold for $100 of +greenbacks, and then provide for a graduated scale by which we would +approach specie payments constantly, and reach it at a fixed day. +This may be called a gradual redemption. This, also, is objectionable +to many persons, from the idea that it compels us to enter the +money markets of the world to discount our own paper. It is an +ideal objection, but a very strong objection; an objection that +has force with a great many people. We have undertaken to redeem +these notes in coin, and it is at least a question of doubtful +ethics whether we ought to enter into the markets of the world and +buy our own notes at a discount. Although that plan has been +adopted in England and successfully carried into execution, yet +there is a strong objection to it in this country, and therefore +that mode is abandoned. + +"Either of these plans I could readily support; but they have met +and will meet with such opposition that we cannot hope to carry +them or ingraft them in this bill without defeating it. We have +then fallen back on these gradual steps: First, to retire the +fractional currency; second, to reduce United States notes as bank +notes are increased; and then to rest our plan of redemption upon +the declaration, made on the faith of the United States, that at +the time fixed by the bill we will resume the payment of the United +States notes in coin at par. That is the whole of this bill." + +On the 7th of January, 1875, the bill was considered in the House +of Representatives and, after a very brief conversational debate, +passed by the vote of yeas 136, nays 98. + +On the 14th day of January, 1875, the President sent a message to +the Senate approving the bill but also containing recommendations +of further legislation upon matters that had been carefully excluded +from the bill. He added at the close of the message this paragraph: + +"I have ventured upon this subject with great diffidence, because +it is so unusual to approve a measure--as I most heartily do this, +even if no further legislation is attainable at this time--and to +announce the fact by message. But I do so, because I feel that it +is a subject of such vital importance to the whole country, that +it should receive the attention of, and be discussed by, Congress +and the people, through the press and in every way, to the end that +the best and most satisfactory course may be reached of executing +what I deem most beneficial legislation on a most vital question +to the interests and the prosperity of the nation." + +Thus, after a memorable debate, extending through two sessions of +Congress, a measure of vital importance became a law, and when +executed completely accomplished the great object proposed by its +authors. The narrative of the steps leading to resumption under +this act will be more appropriate hereafter. + + +CHAPTER XXVI. +RESUMPTION ACT RECEIVED WITH DISFAVOR. +It Is Not Well Received by Those Who Wished Immediate Resumption +of Specie Payments--Letter to "The Financier" in Reply to a Charge +That It Was a "Political Trick," etc.--The Ohio Canvass of 1875-- +Finance Resolutions in the Democratic and Republican Platforms--R. +B. Hayes and Myself Talk in Favor of Resumption--My Recommendation +of Him for President--A Democrat Elected as Speaker of the House-- +The Senate Still Republican--My Speech in Support of Specie Payments +Made March 6, 1876--What the Financial Policy of the Government +Should Be. + +The resumption act was generally received with disfavor by those +who wished the immediate resumption of specie payments. It was +the subject of much criticism in the financial journals, among +others "The Financier," which described it as a political trick, +an evasion of a public duty, and as totally inadequate for the +purpose sought to be accomplished. I took occasion to reply to +this article in the following letter: + + "United States Senate Chamber,} + "Washington, January 10, 1875.} +"Dear Sir:--As I am a subscriber to 'The Financier,' you will +probably allow me to express my surprise at the course you have +pursued in respect to the finance bill recently passed by Congress. +Claiming as you do to be a 'monetary and business' journal, you +might be expected to treat fairly a measure affecting so greatly +the interests you represent; but you have not done so. You have +treated it as a political trick, an evasion, a disgrace to Congress. +You complained that it was passed without debate and that its +inception and passage were shameful. But as you say in your last +number 'that it is well to examine it hopefully, to find _what good +may have been done, if any_, although from a _bad motive_,' I take +the liberty to correct errors even in your 'hopeful' view of the +law, so that you may be more hopeful still. You assume that the +Secretary of the Treasury is not authorized to issue five per cent. +gold bonds to prepare for and to maintain resumption, because the +amount of five per cent. bonds authorized in the act of 1870 is +nearly exhausted. This is an error. The secretary can issue either +four and a half or five per cent. gold bonds to an amount sufficient +to execute the law. The act of 1870 is only referred to for the +'description' of the bonds to be issued, and the only limit to +their amount is the sum necessary, and the only limit to their sale +is that they must not be sold at less than par in coin. + +"You say that _one trick_ of the bill is 'that there is no provision +for carrying on the withdrawal of legal tenders after their maximum +reaches $300,000,000.' Now this 'trick' was advocated by you one +year ago; it was voted for by every specie paying Member of Congress +at the last session, and nearly every writer on the subject has +contended that if the legal tenders were reduced to $300,000,000, +and the treasury was supported by a reasonable reserve, specie +payments could be resumed and maintained. Besides, no one believes +that $100,000,000 of bank notes will be issued under this act, and +this provision only relieves some people from an idle fear of an +improbable event. You must have noticed that when banks retire +their notes, as they have done and will do rapidly, this is a +reduction of the currency, while every issue of notes to new or +old banks involves a retirement of a ratable amount of United States +notes. What you say about playing with a movable 'reserve' is +equally wrong. Neither the fractional currency nor the 'eighty- +two million' redeemed can be reissued, and I stated so when the +bill was pending under debate, and no lawyer could put a different +construction upon the bill. As to United States notes, a part of +the $300,000,000 redeemed after resumption of specie payments, we +did refuse to provide whether they could be reissued or not, and +we acted wisely. When the question is hereafter determined by +Congress, the controversy will be whether the notes _when reissued_ +shall have the _legal tender_ quality, or be simple treasury notes +receivable for public dues. + +"Last session the public press scolded at our long and fruitless +debate on finances, and I agreed with the press. This session the +same Senators, enlightened by the long debate and heeding the call +of the press, gave to the subject the most careful and deliberate +consideration, and agreed upon this bill without much debate, and +yet the press is not happy. The act does not go as far as I wished, +but everything in it is right in itself, and is in the right +direction. Its chief merit is that it establishes a public policy +which no political party or faction will be strong enough to +overthrow, and which if it had not been adopted now, the Democratic +party in the next Congress would have defeated. The pretense that +the Democratic party, as represented in the next House, would have +favored any bill for specie payments is utterly false. Therefore +the measure grants to the Secretary of the Treasury powers enough +to execute it, but if we can secure the aid of a Democratic House +we can make it certain and effective. + + "Very truly yours, + "John Sherman. +"Editor of 'Financier.'" + +In the Ohio canvass of 1875 the resumption act became the chief +subject of controversy. R. B. Hayes, after having previously served +for four years as governor of the state, was against nominated for +that office. William Allen, then governor, was renominated upon +the Democratic ticket, in opposition to the resumption act and in +favor of fiat money, upon which issue the election mainly turned. + +The eighth resolution of the Democratic platform was as follows; + +"That the contraction of the currency heretofore made by the +Republican party, and the further contraction proposed by it, with +a view to the forced resumption of specie payment, have already +brought disaster to the business of the country, and threaten it +with general bankruptcy and ruin. We demand that this policy be +abandoned, and that the volume of currency be made and kept equal +to the wants of trade, leaving the restoration of legal tenders to +par with gold, to be brought about by promoting the industries of +the people and not by destroying them." + +The Republican convention in their second resolution declared: + +"That a policy of finance be steadily pursued, which, without +unnecessary shock to business or trade, will ultimately equalize +the purchasing capacity of the coin and paper dollar." + +Ex-Governor Hayes and I opened the state canvass in the county of +Lawrence on July 31, 1875, and took strong ground in favor of the +resumption act. At the beginning it appeared that the people were +not quite prepared for any measure looking to resumption, but as +the contest progressed and the subject was fully and boldly presented +by Mr. Hayes and myself, the tide of opinion ran in our favor and +Hayes was elected by a small majority. The ex-governor did not +evade the issue, but in every speech supported and urged the policy +of resumption as a matter of the highest interest. + +In the approaching nomination for President, Governor Hayes was +frequently spoken of as a candidate to succeed General Grant, and +I also was mentioned in the same connection, but, feeling confident +that Mr. Hayes would be a stronger candidate than myself, and fully +determined not to stand in his way, on the 21st of January, 1876, +I wrote a letter to a personal friends, and the Member of the Senate +from the district in which I live, in which I urged the nomination +of Governor Hayes as the most available candidate in the approaching +presidential canvass. This letter no doubt contributed to his +strength and prevented any possibility of the division of the vote +of Ohio in the convention. The letter I give in full: + + "Washington, D. C., January 21, 1876. +"Dear Sir:--Your letters of the 2nd and 10th inst. were duly +received, and I delayed answering the first sooner partly from +personal reasons, but mainly that I might fully consider the +questions raised by you as to the approaching presidential contest, +the importance of which cannot be overstated. The election of a +Democratic President means a restoration to full power in the +government of the worst elements of the rebel Confederacy. + +"The southern states are to be organized, by violence and intimidation, +into a compact political power only needing a small fragment of +the northern states to give it absolute control where, by a majority +rule of the party, it will govern the country as it did in the time +of Pierce and Buchanan. + +"If it should elect a President and both Houses of Congress, the +constitutional amendments would be disregarded, the freedmen would +be nominally citizens but really slaves; innumerable claims, swollen +by perjury, would be saddled upon the treasury, the power of the +general government would be crippled, and the honors won by our +people in subduing rebellion would be a subject of reproach rather +than of pride. The only safeguard from these evils is the election +of a Republican President, and the adoption of a liberal Republican +policy which should be fair and even generous in the south, but +firm in the maintenance of all the rights won by the war. Our +election in Ohio last fall shows that even under the most adverse +circumstances we can win on this basis. + +"Every movement made by this Democratic House of Representatives +is an appeal to every man who ever voted with the Republican party +to rally to its support again, and to every man who fought in the +Union army to vote with us to preserve the results of his victory. + +"All we need is such a presidential ticket as will give assurance +that we mean to stand by our principles, and that will administer +the government honestly and economically. + +"As to candidates, the drift of public opinion is rapidly reducing +the list and has already settled adversely the chances of many of +them. Above all, it has positively closed the question of a third +term. The conviction that it is not safe to continue in one man +for too long a period the vast powers of a President, is based upon +the strongest reasons, and this conviction is supported by so many +precedents set by the voluntary retirement at the end of a second +term of so many Presidents that it would be criminal folly to +disregard it. I do not believe General Grant ever seriously +entertained the thought of a third term, but even if he did, the +established usage against it would make his nomination an act of +suicide. + +"It would disrupt our party in every Republican state. + +"Happily for us we do not need to look for the contingency of his +nomination. + +"Among the candidates now generally named, I have no such preference +that I could not heartily support either of them. They are men of +marked ability, who have rendered important public services, but, +considering all things, I believe the nomination of Governor Hayes +would give us the more strength, taking the whole country at large, +than any other man. He is better known in Ohio than elsewhere, +and is stronger there than elsewhere, but the qualities that have +made him strong in Ohio will, as the canvass progresses, make him +stronger in every state. He was a good soldier, and, though not +greatly distinguished as such, he performed his full duty, and I +noticed, when traveling with him in Ohio, that the soldiers who +served under him loved and respected him. As a Member of Congress +he was not a leading debater, or manager in party tactics, but he +was always sensible, industrious, and true to his convictions and +the principles and tendencies of his party, and commanded the +sincere respect of his colleagues. As a governor, thrice elected, +he has shown good executive abilities and gained great popularity, +not only with Republicans but with our adversaries. On the currency +question, which is likely to enter largely into the canvass, he is +thoroughly sound, but is not committed to any particular measure, +so as to be disabled from co-operating with any plan that may +promise success. On the main questions, protection for all in +equal rights, and the observance of the public faith, he is as +trustworthy as any one named. He is fortunately free from the +personal enmities and antagonisms that would weaken some of his +competitors, and he is unblemished in name, character or conduct, +and a native citizen of our state. + +"I have thus, as you requested, given you my view of the presidential +question, taken as dispassionately as if I were examining a +proposition in geometry, and the result drawn from these facts, +not too strongly stated, is that the Republican party in Ohio ought, +in their state convention, to give Governor Hayes a united delegation +instructed to support him in the national convention, not that we +have any special claim to have the candidate taken from Ohio, but +that in General Hayes we honestly believe the Republican party of +the United States will have a candidate for President who can +combine greater popular strength and a greater assurance of success +than other candidates, and with equal ability to discharge the +duties of President of the United States in case of election. Let +this nomination be thus presented, without any wire pulling or +depreciation of others and as a conviction upon established facts, +and I believe Governor Hayes can be and ought to be nominated. +But if our state is divided or is not in earnest in this matter it +is far better for Governor Hayes and the state that his name be +not presented at all. We have never sufficiently cultivated our +state pride, with every reason for indulging it, and thus our proper +influence has been wasted and lost. Now we have a good opportunity +to gratify it, and at the same time contribute to the common good. +Remember me kindly to personal friends in the Senate. + + "Very truly yours, + "John Sherman. +"Hon. A. M. Burns." + +The election of Members of Congress in 1874 resulted in the choice +of a large majority of Democrats in the House of Representatives +of the 44th Congress, the term of which commenced on the 4th of +March, 1875. A majority of the Senate being still largely Republican, +it became difficult to pass any measure of a political character +during that Congress. President Grant, on the 17th of February, +1875, issued his proclamation convening the Senate at 12 o'clock +on the 5th of March following, to receive and act upon such +communications as might be made to it on the part of the Executive. +The session continued until the 24th of March. It was largely +engaged in questions affecting the State of Louisiana, which had +been the scene of violent tumult and almost civil war. As these +events are a part of the public history of the country I do not +deem it necessary to refer to them at length. These disturbances +continued during the whole of that Congress, and, in 1876, approached +the condition of civil war. + +The regular meeting occurred on the 6th of December, 1875, when +Thomas W. Ferry, of Michigan, was elected president _pro tempore_ +of the Senate, and Michael C. Kerr, a Democratic Representative +from the State of Indiana, was elected by a large majority as +speaker of the House. + +This political revolution was no doubt caused largely by the +financial panic of 1873, and by the severe stringency in monetary +affairs that followed and continued for several years. Many +financial measures of the highest importance in respect to the +public credit were acted upon, but were generally lost by a +disagreement between the two Houses. I do not deem it necessary +to refer to the political questions that greatly excited the public +mind during that session. Congress was largely occupied in political +debate on questions in respect to the reconstruction of the states +lately in rebellion, upon which the two Houses disagreed. Among +other measures which failed was the act amendatory of the acts +authorizing the refunding of the national debt, which passed the +Senate but was not considered by the House. + +During this session of Congress all sorts of financial plans were +presented in each House, but all were aimed, directly or indirectly, +at the resumption act, although that act itself was adopted as a +remedy for existing financial evils, and especially to deal with +and prevent the recurrence of such a panic as that of 1873. I took +occasion, on the presentation of the resolution of the New York +Chamber of Commerce in favor of the resumption of specie payments, +at the time provided by the resumption act, to discuss the policy +of that measure more fully than I thought it expedient to do so +when, as a bill, it was pending in the previous Congress. This +speech was made in the Senate on the 6th of March, 1876. It was +the result of great labor and care, and was intended by me to be, +and I believe it is now, the best presentation I have ever been +able to offer in support of the financial policy of the government, +and especially in support of the resumption of specie payments. +I said: + +"Mr. president, I have taken the unusual course of arresting the +reference to the committee of finance of the memorial of the Chamber +of Commerce of New York, in order to discuss, in an impersonal and +nonpartisan way, one of the questions presented by that memorial, +and one which now fills the public mind and must necessarily soon +occupy our attention. That question is, 'Ought the resumption act +of 1875 be repealed?' The memorial strongly opposes such repeal, +while other memorials, and notably those from the boards of trade +of New York and Toledo, advocate it. These opposing views are +supported in each House of Congress, and will, when our time is +more occupied than now, demand our vote. + +"And, sir, we are forced to consider this question when the law it +is proposed to repeal is only commencing to operate, now, three +years before it can have full effect--during all which time its +operation will be under your eye and within your power--and while +the passions of men are heated by a presidential combat, when a +grave questions, affecting the interests of every citizen of the +United States, will be influenced by motives entirely foreign to +the merits of the proposition. And the question presented is not +as to the best means of securing the resumption of a specie standard, +but solely whether the only measure that promises that result shall +be repealed. We know there is a wide and honest diversity of +opinion as to the agency and means to secure a specie standard. + +"When any practicable scheme to that end is proposed I am ready to +examine it on its merits; but we are not considering the best mode +of doing the thing, but whether we will recede from the promise +made by the law as it stands, as well as refuse all means to execute +that promise. If the law is deficient in any respect it is open +to amendment. If the powers vested in the secretary are not +sufficient, or you wish to limit or enlarge them, he is your servant, +and you have but to speak and he obeys. It is not whether we will +accumulate gold or greenbacks or convert our notes into bonds, nor +whether the time to resume is too early or too late. All these +are subjects of legislation. But the question now is whether we +will repudiate the legislative declaration, made in the act of +1875, to redeem the promise made and printed on the face of every +United States note, a promise made in the midst of war, when our +nation was struggling for existence, a promise renewed in March, +1869, in the most unequivocal language, and finally made specific +as to time by the act of 1875. + +"And let us not deceive ourselves by supposing that those who oppose +this repeal are in favor of a purely metallic currency, to the +exclusion of paper currency, for all intelligent men agree that +every commercial nation must have both; the one as the standard of +value by which all things are measured, which daily measures your +bonds and notes as it measures wheat, cotton, and land; and also +a paper or credit currency, which, from its convenience of handling +or transfer, must be the medium of exchanges in the great body of +the business of life. Statistics show that in commercial countries +a very large proportion of all transfers is by book accounts and +notes, and more than nine-tenths of all the residue of payments is +by checks, drafts, and such paper tools of exchange. + +"Of the vast business done in New York and London not five per +cent. is done with either paper money or gold or silver, but by +the mere balancing of accounts or the exchange of credits. And +this will be so whether your paper money is worth forty per cent. +or one hundred per cent. in gold. The only question is whether, +in using paper money, we will have that which is as good as it +promises, as good as that of Great Britain, France, or Germany; as +good as the coin issued from your mints; or whether we will content +ourselves with depreciated paper money, worth ten per cent. less +than it promises, every dollar of which daily tells your constituents +that the United States in not rich enough to pay more than ninety +per cent. on the dollar for its three hundred and seventy millions +of promises to pay, or that you have not courage enough to stand +by your promise to do it. + +"Nor are we to decide whether our paper money shall be issued +directly by the government or by banks created by the government; +nor whether at a future time the legal tender quality of United +States notes shall continue. I am one of those who believe that +a United States note issued directly by the government, and +convertible on demand into gold coin, or a government bond equal +in value to gold, is the best currency we can adopt; that it is to +be the currency of the future, not only in the United States, but +in Great Britain as well; and that such a currency might properly +continue to be a legal tender, except when coin is specifically +stipulated for it. + +"But these are not the questions we are to deal with. It is whether +the promise of the law shall be fulfilled, that the United States +shall pay such of its notes as are presented on and after the 1st +day of January, 1879, in coin; and whether the national banks will, +at the same time, redeem their notes either in coin or United States +notes made equal to coin; or whether the United States shall revoke +its promise and continue, for an indefinite period, to still longer +force upon the people a depreciated currency, always below the +legal standard of gold, and fluctuating daily in its depreciation +as Congress may threaten or promise, or speculators may hoard, or +corner, or throw out your broken promises. It is the turning point +in our financial history, which will greatly affect the life of +individuals and the fate of parties, but, more than all, the honor +and good faith of our country. + +"At the beginning of our national existence, our ancestors boldly +and hopefully assumed the burden of a great national debt, formed +of the debts of the old confederation and of the states that composed +it; and, with a scattered population and feeble resources, honestly +met and paid, in good solid coin, every obligation. After the War +of 1812, which exhausted our resources, destroyed our commerce, +and greatly increased our debt, a Republican administration boldly +funded our debt, placed its currency upon the coin basis, promptly +paid its interest, and reduced the principal; and within twenty +years after that war was over, under the first Democratic President, +paid in coin the last dollar, both principal and interest, of the +debt. And now, eleven years after a greater war, of grander +proportions, in which, not merely foreign domination threatened +us, but the very existence of our nation was at stake, and after +our cause has been blessed with unexampled success, with a country +teeming with wealth, with our credit equal to that of any nation, +we are debating whether we will redeem our promises, according to +their legal tenor and effect, or whether we will refuse to do so +and repeal and cancel them. + +"I would invoke, in the consideration of this question, the example +of those who won our independence and preserved it to us, to inspire +us so to decide this question that those who come after us may +point to our example of standing by the public faith now solemnly +pledged, even though to do so may not run current with the temporary +pressure of the hour, or may entail some sacrifice and hardship. + +"What then is the law it is proposed to repeal? I will state its +provisions fully in detail, but the main proposition--the essential +core of the whole--is the promise, to which the public faith is +pledged, that the United States will redeem in gold coin any of +its notes that may be presented to the treasury on and after the +1st day of January, 1879. This is the vital object of the law. +It does not undertake to settle the nature of our paper money after +than, whether it shall be reissued again, whether it shall thereafter +be a legal tender, nor whether it shall or shall not supersede bank +notes. All this is purposely left to the future. But it does say +that on and after that day the United States note promising to pay +one dollar shall be equal to the gold dollar of the mint. + +"The questions then arise-- + + "First. Ought this promise be performed? + "Second. Can we perform it? + "Third. Are the agencies and measures prescribed in the law +sufficient for the purpose? + "Fourth. If not, what additional measures should be executed? + +"Let us consider these questions in their order, with all the +serious deliberation that their conceded importance demands. + +"And first, ought this promise be fulfilled? + +"To answer this we must fully understand the legal and moral +obligations contained in the notes of the United States. The +purport of the note is as follows: + + 'THE UNITED STATES PROMISES TO PAY THE BEARER ONE DOLLAR.' + +"This note is a promise to pay one dollar. The legal effect of +this note has been announced by the unanimous opinion of the Supreme +Court of the United States, the highest and final judicial authority +in our government. + +"The legal tender attribute given to the note has been the subject +of conflicting decisions in that court, but the nature and purport +of it is not only plain on its face, but is concurred in by every +judge of that court and by every judicial tribunal before which +that question has been presented. + +"In the case of Bank vs. Supervisors, 7 Wallace, 31, Chief Justice +Chase says: + +'But, on the other hand, it is equally clear that these notes are +obligations of the United States. Their name imports obligation. +Every one of them expresses upon its face an engagement of the +nation to pay to the bearer a certain sum. The dollar note is an +engagement to pay a dollar, and the dollar intended is the _coined_ +dollar of the United States, a certain quantity in weight and +fineness of gold or silver, authenticated as such by the stamp of +the government. No other dollars had before been recognized by +the legislation of the national government as lawful money.' + +"Again, in the case of Bronson vs. Rhodes, 7 Wallace, 251, Chief +Justice Chase says: + +'The note dollar was the promise to pay a coined dollar.' + +"In the Legal Tender Cases, 12 Wallace, 560, Justice Bradley says: + +'It is not an attempt to _coin_ money out of a valueless material, +like the coinage of leather, or ivory, or cowrie shells. _It is +a pledge of the national credit_. It is a _promise_ by the government +to _pay dollars;_ it is not an attempt to _make_ dollars. The +standard of value is not changed. The government simply demands +that its credit shall be accepted and received by public and private +creditors during the pending exigency. . . . + +'No one supposes that these government certificates are never to +be paid, that the day of specie payments is never to return. And +it matters not in what form they are issued. . . . Through whatever +changes they pass, their ultimate destiny is _to be_ paid.' + +"In all these legal tender cases there is not a word in conflict +with these opinions. + +"Thus, then, it is settled that this note is not a dollar, but a +debt due; a promise to pay a dollar in gold coin. Congress may +define the weight and fineness of a dollar, and it has been done +so by providing a gold coin weighing twenty-five and eight-tenths +grains of standard gold nine-tenths fine. The promise is specific +and exact, and its nature is fixed by the law and announced by the +court. Here I might rest as to the nature of the United States +note; but it is proper that I state the law under which it was +issued and the subsequent laws relating to it. + +"The act of February 25, 1862, gave birth to this note as well as +the whole financial policy of the war. The first section of that +act authorizes the Secretary of the Treasury to issue, upon the +credit of the United States, United States notes to the amount of +$150,000,000, payable to bearer at the treasury of the United +States. The amount of these notes was subsequently increased during +the war to the maximum sum of $450,000,000, but the nature and +character of the notes was the same as the first ones. The +enlargement of the issue did not in the least affect the obligation +of the United States to pay them in coin. This obligation was +recognized in every loan law passed during the war; and to secure +the note from depreciation the amount was carefully limited, and +every quality was given to it to maintain its value that was possible +during the exigencies of the war. I might show you, from the +contemporaneous debates in Congress, that at every step of the war +the notes were regarded as a temporary loan, in the nature of a +forced loan, but a loan cheerfully borne, and to be redeemed soon +after the war was over. + +"It was not until two years after the war, when the advancing value +of the note created an interest to depreciate it in order to advance +prices for the purpose of speculation, that there was any talk +about putting off the payment of the note. The policy of a gradual +contraction of the currency with a view to specie payments was, in +December, 1865, concurred in by the almost unanimous vote of the +House of Representatives, and the act of April 12, 1866, authorized +$4,000,000 of notes a month to be retired and canceled. No one +then questioned either the policy, the duty, or the obligation of +the United States to redeem these notes in coin. + +"Why has not this obligation been performed? How comes it that +fourteen years after these notes were issued, and eleven years +after the exigency was over, we are debating whether they shall be +paid, and when they shall be paid? We may well pause to examine +how this plain and positive obligation has so long been deferred +by a nation always sensitive to the public honor. + +"The fatal commencement of this long delay was in this provision +of the act, approved March 3, 1863, as follows: + +'And the holders of United States notes issued under, and by virtue +of, said acts, shall present the same, for the purpose of exchanging +the same for bonds as therein provided, on or before the 1st day +of July, 1863, and thereafter the right so to exchange the same +shall cease and determine.' + +"Thus, under the pressure of war, and the plausible pretext of a +statute of limitations, the most essential legal attribute of the +note was taken away. This act, though convenient in its temporary +results, was a most fatal step, and for my part in acquiescing in, +and voting for it, I have felt more regret than for any act of my +official life. But it must be remembered that the object of this +provision was not to prevent the conversion of notes into bonds, +but to induce their conversion. It was the policy and need of the +government to induce its citizens to exchange the notes freely for +the bonds, so that the notes might again be paid out to meet the +pressing demands of the war. It was believed that if this right +to convert them was limited, in time this would cause them to be +more freely funded; and Mr. Chase, then Secretary of the Treasury, +anxious to prevent a too large increase of the interest of the +public debt, desired to place in the market a five per cent. bond +instead of a six per cent. bond. The fatal error was in not changing +the right to convert the note into a five per cent. bond instead +of a six per cent. bond. This was, in fact, proposed in the +committee on finance, but it was said that a right to convert a +note into a bond at any time, was not so likely to be exercised as +if it could only be exercised at the pleasure of the government. +And this plausible theory to induce the conversion of notes into +bonds was made the basis, after the war was over, for the refusal +of the United States to allow the conversion of its notes into +bonds, and has been the fruitful cause of the continued depreciation +and dishonor of United States notes for the last five years, during +which, our five per cent. bonds have been at par with gold, while +our notes rise and fall in the gamut of depreciation from six to +twenty per cent. below gold. + +"Notwithstanding that the right to convert notes into bonds was +taken away, yet, in fact, they were, during the war, received par +for par for bonds; and after the war was over all the interest- +bearing securities were converted into bonds; but the notes--the +money of the people--the artificial measure of value, the most +sacred obligation, because it was past due, was refused either +payment or conversion, thus cutting it off from the full benefit +of the advancing credit of the government, and leaving to it only +the forced quality of legal tender in payment of debts. + +"Shortly after the war was over, and notably during the presidential +campaign of 1868, the question arose whether the bonds of the United +States were payable in coin or United States notes. Both notes +and bonds were then below par in coin, the notes ranging from sixty- +seven to seventy-five cents in coin; and five per cent. bonds from +seventy-two to eighty cents in coin. Here again the opportunity +was lost to secure the easy and natural appreciation of our notes +to the gold standard. Had Congress then authorized the conversion +of notes into bonds, when both were depreciated, both would have +advanced to par in gold; but, on the one hand, it was urged that +this would cause a rapid contraction, and, on the other, that the +right to convert the note into a bond was not specie payment; it +was only the exchange of one promise for another. It was specie +payment they very much favored, but did not have the wisdom then +to secure. If the advocates for specie payment had then supported +a restoration of the right to convert notes into bonds, they would +have secured their object with but little opposition. But all +measures to fund the notes at the pleasure of the holder were +defeated, and, instead, there was ingrafted into the act to strengthen +the public credit-- + +"First, a declaration 'that the faith of the United States is +already pledged to the payment in coin, or its equivalent, of all +the obligations of the United States not bearing interest, known +as United States notes, and of all the interest-bearing obligations +of the United States,' except such as by the law could be paid in +other currency than gold and silver. + +"Second, 'and the United States also solemnly pledges its faith to +make provision, at the earliest practicable period, for the redemption +of the United States notes in coin.' + +"Here again, the obligation of the government to pay these notes +in coin was recognized, its purpose declared, and the time fixed +'as early as practicable.' What was the effect of this important +act of Congress? Without adding one dollar to the public debt, or +the burden of the debt, both bonds and notes rose in value. Within +one year, the bonds rose to par in gold, making it practicable to +commence the refunding of six per cent. bonds into five per cent. +bonds. The notes rose under the stimulus of this new promise, in +one year, from seventy-six cents to eighty-nine cents in gold, but +no steps whatever were made to redeem them. + +"The amount of bank notes authorized was increased fifty-four +millions. The executive department pursued the policy of redeeming +debts not due, and did, from an overflowing treasury, reduce very +largely the public debt, but no steps whatever were taken to advance +the value of our notes. The effect of the act of 1869 was exhausted +on the adjournment of Congress in March, 1870, when the United +States notes were worth eighty-nine cents in gold; and thereabouts, +up and down, with many fluctuations, they have remained to this +day. The bondholder, secure in the promise to him, is happy in +receiving his interest in gold, with his bond above par in gold. +The note holder, the farmer, the artisan, the laborer, whose labor +and production is measured in greenbacks, still receives your +depreciated notes, worth ten per cent. less than gold you promised +him 'at the earliest day practicable.' The one has a promise +performed and the other a promise postponed. + +"Thus we stood when the panic of 1873 came upon us; with more paper +money afloat than ever circulated before in any country of the +world. Even then, had we stood firmly, the hoarding tendency of +the panic would have advanced our notes toward the gold standard, +and, in fact, did so during the months of September and October, +until the premium on gold had fallen to eight per cent. But, sir, +at this critical moment, the Secretary of the Treasury, acting, no +doubt, in good faith, but I think without authority of law, issued +twenty-six millions more United States notes--part of the notes +retired and canceled under previous acts. And now, notwithstanding +all the talk about the contraction of the currency, we have not +withdrawn one-half of this illegal issue. On the 1st of September, +1873, we had three hundred and fifty-six million notes outstanding. +Three months afterward, we had three hundred and eighty-two million; +and now we have three hundred and seventy-one million. + +"Sir, it was under the light of these events, after the fullest +discussion ever given in Congress, of any question--after debate +before the people during the recess of Congress, and full deliberation +last winter--this act was passed. There was and is now great +difference of opinion as to the details, but the vital promise made +to the note holder to make his note as good as gold in January, +1879, was concurred in by a large majority of both Houses, and by +many who opposed the bill as too slow in its operation. This act +of honor and public faith was applauded by the civilized world and +concurred in by our constituents, the doubts only being as to the +machinery to carry it into effect. The time was fixed by those +who most feared resumption, and no one proposed a longer time. My +honorable friend from Indiana [Mr. Morton] truly said (in the recent +campaign in Ohio) that he participated in framing it; and he and +those who agreed with him fixed the time so remote as to excite +the unfounded charge that the bill was a sham, a mere contrivance +to bridge an election. + +"And now, sir, to recapitulate this branch of the question, it is +shown that the holder of these notes has a promise of the United +States, made in February, 1862, to pay him one dollar in gold coin; +that the legal purport of this promise has been declared by the +Supreme Court; that we have taken away from this note one of the +legal attributes given it, which would long since have secured its +payment in coin--that when the note was authorized and issued, it +was understood as redeemable in coin when the war was over; that +our promise to pay it was renewed in 1869--'at as early a day as +practicable;' that by reason of our failure to provide for its +payment, it is still depreciated below par more than one-tenth of +its nominal value; that we renewed this promise, and made it definite +as to time, by act of 1875; that it is a debt due from the United +States, and in law and honor due now in coin. Yet it is proposed +to recall our promise to redeem this note in coin three years hence. +I say, sir, this would be national dishonor. It would destroy the +confidence with which the public creditor rests upon the promises +contained in your bonds. It would greatly tend to arrest the +process by which the interest on your bonds is reduced. It would +accustom our people to the substitution of a temporary wave of +popular opinion for its written contract or promise. It would +weaken in the public mind that keen sense of honor and pride which +has always distinguished the English-speaking nations in dealing +with public obligations. + +"An old writer thus describes 'public credit:' + +'Credit is a consequence, not a cause; the effect of a substance, +not a substance; it is the sunshine, not the sun; the quickening +_something_, call it what you will, that gives life to trade, gives +being to the branches and moisture to the root; it is the oil of +the wheel, the marrow in the bones, the blood in the veins, and +the spirits in the heart of all the negoce, trade, cash, and commerce +in the world.' + +'It is produced, and grows insensibly from fair and upright dealing, +punctual compliance, honorable performance of contracts and covenants; +in short, it is the offspring of universal probity. + +'It is apparent even by its nature; it is no way dependent upon +persons, parliament, or any particular men or set of men, as such, +in the world, but upon their conduct and just behavior. Credit +never was chained to men's names, but to their actions; not to +families, clans, or collections of men; no, not to nations. It is +the honor, the justice, the fair dealing, and the equal conduct of +men, bodies of men, nations, and people, that raise the thing called +credit among them. Wheresoever this is found, credit will live +and thrive, grow and increase; where this is wanting, let all the +power and wit of man join together, they can neither give her being +nor preserve her life. + +'Arts have been tried on various occasions in the world to raise +credit; art has been found able with more ease to destroy credit +than to raise it. The force of art, assisted by the punctual, +fair, and just dealing abovesaid, may have done much to form a +credit upon the face of things, but we find still the honor would +have done it without the art, but never the art without the honor. +Nor will money itself, which, Solomon says, answers all things, +purchase this thing called credit or restore it when lost. . . . + +'Our credit in this case is a public thing. It is rightly called +by some of our writers _national credit_. The word denominates +its original. It is produced by the nation's probity, the honor +and exact performing national engagements.' + +"And, sir, passing from considerations of public honor, there are +many reasons of _public policy_ which forbid the repeal of the act +of 1875. That act was generally regarded as the settlement of a +financial policy by which at least the party in power is bound, +and upon the faith of which business men have conducted their +affairs and made their contracts. Debts have been contracted and +paid with the expectation that at the time fixed the gold standard +would measure all obligations, and a repeal of the act would now +reopen all the wild and dangerous speculation schemes that feed +and fatter upon depreciated paper money. The influence that secures +this repeal will not stop here. If we can recall our promise to +pay our notes outstanding why should we not issue more? If we can +disregard our promise to pay them, why shall we regard our promise +not to issue more than $400,000,000, as stipulated for by the act +of 1864? If we can reopen the question of the payment of our notes, +why may we not reopen the question as to the payment of our bonds? +Is the act of 1869 any more sacred than the act of 1875? And if +we can reopen these questions, why not reopen the laws requiring +the payment of either interest or principal of the public debt? +They rest upon acts of Congress which we have the power to repeal. +If the public honor cannot protect our promise to the note holder, +how shall it protect our promise to the bondholder? Already do we +see advocated in high places, by numerous and formidable organizations, +all forms of repudiation, which, if adopted, would reduce our nation +to the credit of a robber chief--worse than the credit of an Algerine +pirate, who at least would not plunder his own countrymen. And if +the public creditor had no safety, what chance would the national +banks--creations of our own and subject to our will--have in +Congress? It has already been proposed to confiscate their bonds, +premium and all, as a mode of paying their notes with greenbacks. +What expedient so easy if we would make money cheap and abundant? +Or, if so extreme a measure could be arrested, what is to prevent +the permanent dethronement of gold as a measure of value, and the +substitution of an interconvertible currency bond, bearing three +and sixty-five hundredths per cent. interest, as a standard of +value; and when it become too expensive to print the notes to pay +the interest, reduce the rate. Why not? Why pay three and sixty- +five hundredths per cent., when it is easier to print three? It is +but an act of Congress. And when the process of repudiation goes +so far that your notes will not buy bread, why then declare against +all interest, and then, after passing through the valley of +humiliation, return again to barter, and honor, and gold again. + +"Sir, if you once commence this downward course of repudiation then +there is but one ending. You may, like Mirabeau and the Girondists, +seek to stem the torrent, but you will be swept away by the spirit +you have evoked and the instrument you have created. You complain +now of a want of confidence which makes men hoard their money. +Will you, then, destroy all confidence? No, sir, no; the way to +_restore_ confidence is to _inspire_ it by fulfilling your obligations. +You cannot make men lend you; you cannot make men sell you anything +--either bread, or meat, or wool, or iron, or anything that is or +that can be created--except for that which they choose to take. +You may depreciate the money which you offer, but it will only take +more of it to buy what you want. It is true that the creditor may, +by your laws, be compelled to take your money however much you +depreciate it, but he cannot buy back that which he sold, or its +equivalent in other necessaries of life, and thus he is cheated of +part of what he sold. During the war, when money was depreciating, +many a simple man gladly counted his gains as he sold his goods or +crops at advancing prices, but he found out his mistake when, with +his swollen pile, he tried to replace his stock in trade or laid +in his supplies. Sir, this policy exhausts itself in cheating the +man who buys or sells or loans on credit, who produces something +to sell on credit; whether that something be food or clothing; +whether it be a necessity or a luxury of life. Productive labor, +honest toil, whether of the farmer or the artisan, is deeply +interested in credit. It is credit that gives life and competition +to trade; and credit is destroyed by every scheme that impairs, +delays, or even clouds an obligation. + +"Again, sir, an irredeemable and fluctuating currency always raises +the rate of interest on money, while a stable currency or an +improving currency always reduces the rate of interest. This is +easily shown by statistics, but the reason is so obvious that proof +is not needed. If a man lends his money he wants it back again +with its increase; but if the money, when it is to be paid back, +is like to be worth less than when he thinks of loaning it, he will +not loan it except at such rates as will cover the risk of +depreciation. He will prefer to buy land or something of stable +value. If money is at the gold standard, or is advancing toward +that standard, he will loan it readily at a moderate interest, for +he knows he will receive back money of at least equal value to that +he loaned. Again, sir, with a depreciated currency great domestic +productions are cut off from the foreign market; for it is impossible +that with such a currency we can compete on equal terms with rival +nations, whose industry rests upon a specie standard. As we approach +such a standard, we are now able, as to a few articles, to compete +with foreign industry; but it is only as to articles in the +manufacture of which we have peculiar advantages. Let us rest our +industries on that standard, and soon we could compete in the +markets of the world in all the articles produced from iron, wood, +leather, and cotton, the raw basis of which are our national +productions. And it must be remembered that all the countries with +which we compete are specie-paying countries. + +"A country that does not rest her industry upon specie is necessarily +excluded from the great manufacturing industries of modern +civilization, and is self-condemned to produce only the raw basis +for advanced industry. Cheap food, climate, soil, or natural +advantages, such as cheap land, vast plains for pasture, or rich +mines, may give to a country wealth and prosperity in spite of the +evils of depreciated paper money; but when we come in competition +with the world in the advanced grades of production which give +employment to the skilled mechanic, we must rest such industry upon +the gold basis, or we enter the lists like a knight with his armor +unbound. + +"Again, sir, a depreciated and fluctuating currency is a premium +and bounty to the broker and money changer. Under his manipulation +our paper standard of value goes up and down, and he gambles and +speculates, with all the advantages in his favor. Good people look +on and think that it is gold that is going up and down; that their +money is a dollar still, and trade and traffic in that belief. +But the shrewd speculator calculates daily the depreciation of our +note, the shortening of the yard stick, the shrinkage of the acre, +the lessening of the ton, and thus it is that he daily adds to his +gains from the indifference or delusion of our people. + +"Sir, it is an old story, often repeated in our day, and most +eloquently epitomized by Daniel Webster in the often-quoted passage +of his speech, in which he said: + +'A disordered currency is one of the greatest of political evils. +It undermines the virtues necessary for the support of the social +system and encourages propensities destructive of its happiness. +It wars against industry, frugality, and economy; and it fosters +the evil spirit of extravagance and speculation. Of all contrivances +for cheating the laboring classes of mankind, none has been more +effectual than that which deluded them with paper money. Ordinary +tyranny, oppression, excessive taxation, these bear lightly upon +the happiness of the mass of the community, compared with the +fraudulent currencies and the robberies committed by depreciated +paper. Our own history has recorded for our instruction enough, +and more than enough, of the demoralizing tendency, the injustice, +and the intolerable oppression of the virtuous and well-disposed, +of a degraded paper currency authorized by law or in any way +countenanced by government.' + +"Sir, we must meet this question of specie payments, not only +because the public honor is pledged to do so, but also for the +lesser reason that it is our interest to do so. The only questions +we should permit ourselves to discuss are the means and measures +of doing so. + +"And now, sir, let us examine the reasons that have been given for +the repeal of the resumption act by those who, though favoring +resumption, yet think the act should be repealed for one or other +of the following reasons: + + "First. That it is not advisable to fix a day for resumption. + "Second. Or at least until the balance of trade is in our favor. + "Third. That it produces a contraction of the currency. + "Fourth. That it injuriously adds to the burden of existing +debts. + +"Let us glance at these objections. + +"First. As to fixing a day for resumption. + +"If it was possible to agree upon measures that would secure +resumption without fixing a time, I agree it would not be indispensable, +though not unadvisable, to fix a time; but such agreement is utterly +impossible. Of the multitude of schemes that have been presented +to me by intelligent men trying to solve this problem, many could +have been selected that in my opinion would be practicable; but of +all of them not one ever has or is likely to secure the assent of +a majority of a body so numerous as Congress. One difficulty we +have encountered is that the Democratic party, though in the +minority, has never presented in any form, through any leading +member, a plan for resumption, but with widely differing opinions +has joined in opposing any and every measure from the other side. +I understand from the papers that our Democratic friends, through +a caucus, and through a caucus committee of which my colleague is +chairman, have been laboring to agree upon a plan for specie +payments. After his frequent speeches to us about secret conclaves, +about shams and deceptions, and such like polite and friendly +comments upon the work of the Republican party, I might greet my +colleague with such happy phrases about _his_ caucus; but I will +not, but, on the contrary, I commend his labors, and sincerely hope +that he and his political friends may agree upon some plan to reach +a specie standard, and not one to avoid to, to prevent it, to defer +it. Under color of intending to prepare for it, I hope they will +not make their measure the pretext for repealing the law as it +stands, which fixes a day for resumption and will secure the end +we both aim at. + +"I frankly state for the Republican party that, while we could +agree to fixing the time for specie payments and upon conferring +the ample and sufficient powers upon the Secretary of the Treasury +contained in the law, we could not agree in prescribing the precise +mode in which the process should be executed. Nor, in my opinion, +was it at all essential that we should. Much must be left to the +discretion of the officer charged with the execution of such a law. +The powers conferred, as I shall show hereafter, are ample; and +the discretion given will be executed under the eye of Congress. + +"And, sir, there is a strong force in the fact that in every example +we have of the successful resumption of specie payments, in this +and other countries, a fixed day has been named by legislative +authority, and the details and power of execution have been left +to executive authority. Thus, in Great Britain, the act of parliament +of July 2, 1819, fixed the time for full resumption at the 1st day +of May, 1823, and for a graduated resumption in gold at intermediate +dates; and for fractional sums under forty shillings to be paid in +silver coin; and the governor and directors of the Bank of England +were charged with its execution, and authorized at their discretion +to resume payment in full on the 1st day of May, 1822. France is +now successfully passing through the same process of resumption, +the time being fixed (two years ago) for January 1, 1878, and now +practically attained. + +"In our own country many of the states have presented similar laws +in case of suspended bank payments, and in some cases the suspended +banks have, by associated action, fixed a time for general resumption, +and each bank adopted its own expedient for it. Sir, the light of +experience is the lamp of wisdom. I can recall no case of successful +resumption where a fixed future time has not been presented +beforehand, either by law or agreement; while the historical examples +of repudiation of currency have come by the drifting process, by +a gradual decline of value, by increased issues, and a refusal to +provide measures of redemption, until the whole mass disappeared, +dishonored and repudiated. + +"This concurrence in the mode of resumption by so many governments +was the strongest possible instruction to Congress when fixing a +plan of resumption for the United States, and should satisfy +reasonable men of its wisdom. + +"Besides, it would seem to be but fair that everyone should have +plain notice of so important a fact. If the measures only were +presented and no time fixed it would be a matter of speculation, +and the discretionary powers of the Secretary of the Treasury could +be exercised with a view to hasten or postpone the time to the +injury of individuals. + +"As to the date selected, I can only repeat it was placed as remote +as any one suggested; far more so than is necessary to secure the +object, and so that the fluctuations of value will scarcely exceed +in four years what they have frequently been in a single year. It +allows ample time to arrange all the relations of debtor and +creditor, and to enable Congress to provide any additional measure +in aid of redemption, or, if events make it expedient, to postpone +the time." + + +CHAPTER XXVII. +MY CONFIDENCE IN THE SUCCESS OF RESUMPTION. +Tendency of Democratic Members of Both Houses to Exaggerate the +Evil Times--Debate Over the Bill to Provide for Issuing Silver Coin +in Place of Fractional Currency--The Coinage Laws of the United +States and Other Countries--Joint Resolution for the Issue of Silver +Coins--The "Trade Dollar" Declared Not to Be a Legal Tender--My +Views on the Free Coinage of Silver--Bill to Provide for the +Completion of the Washington Monument--Resolution Written by Me on +the 100th Anniversary of the Declaration of Independence--Unanimously +Passed in a Day by Both Houses--Completion of the Structure Under +the Act. + +It seemed to be the policy of a majority of the Democratic Members +of both the Senate and the House to exaggerate the evils and +discouragements of the times, while in fact the people were rapidly +recovering from the results of the panic of 1873, and all branches +of industry were, to a greater or less extent, starting into life +anew, and to prevent the resumption of specie payments, and, if +possible, to repeal the act providing for such resumption. This +policy undoubtedly checked the process of refunding the public +debt, which progressed slowly, and was confined to an exchange of +bonds bearing five per cent. interest for those bearing six per +cent. + +I took a much more hopeful view of the situation, and in the many +speeches I made in that Congress, I stated my confidence, not only +in the process of resumption and refunding, but in the rapid +improvement of all branches of industry as we progressed towards +specie payments. In a speech I made in the Senate on the 6th of +January, 1876, on a bill "to further provide for the redemption of +legal tender United States notes in accordance with existing law," +I said: + +"Sir, we ought to take a hopeful view of things in this centennial +year of our country. Look at the aggregate results. A century +ago we were three million people; now forty million; then we had +a little border on the Atlantic; we are now extended to the Pacific. +See what has been accomplished in a hundred years. During that +time there have been periods of darkness and doubt. Every seven +or ten or twelve years, periodically, there have been times of +financial distress. We have lived through them all. I believe, +and I trust in God, that this very year is the beginning of another +period of prosperity, and that all these dark clouds, which gentlemen +are trying to raise up from the memory of the past two or three +years and from their own clouded imaginations, will entirely +disappear. I believe that even now we are in the sunshine of +increasing prosperity, and that every day and every hour will add +to our wealth and relieve us from our distress. + +"Sir, things are not so unhopeful as Senators seem to think. We +have made a promise to be executed three years hence, and every +step of our legislation, if any is had, should look in that direction. +We may not adopt any measure or may not deem that any is necessary; +but, if any be adopted, it ought to look to the execution of that +promise, and we ought to enter on the performance of this duty with +hopeful trust in the continued prosperity of our country. All this +gloom and doubt, all this arraignment of official statements, this +doubt of our sufficient revenues, this doubt of our ability to meet +and advance our destiny, always falls upon my ear with painful +surprise. Senators, the task we have before us may be a difficult +one, as it has always proved to be difficult to resume the specie +standard whenever, for any reason, a nation has fallen from it, +but it is a duty that must be executed, and it ought to be executed +without the spirit of party warfare, without these appeals, directly +or indirectly, to party tactics. The pledges made one year ago, +although not voted for by the Democratic party, are pledges binding +upon their honor and their faith as they are upon mine, and I trust +in God that we shall join together in all the proper steps to carry +out those pledges." + +This bill was referred to the committee on finance, but no action +was taken upon it, as the committee preferred to await the action +of the House. + +The resumption act provided for the payment and destruction of the +fractional currency then in circulation, to the amount of $40,000,000, +and the substitution of silver coins in all respects, such as were +defined by the coinage act of 1853. This was to be the first step +in preparation for the general resumption of coin payments in +January, 1879. It became necessary to provide for the coinage of +fractional silver coins, and a bill for this purpose, entitled "A +bill to provide for a deficiency in the Printing and Engraving +Bureau, and for the issue of the silver coin of the United States, +in place of the fractional currency," was reported by Mr. Randall, +on the 2nd of March, 1876, from the committee on appropriations of +the House. It was subsequently considered, amended and passed by +the House, after a long debate, participated in by many of the +leading Members. Much to my surprise, Mr. Hewitt and Mr. Ward, +prominent Members from New York, opposed the measure, denounced +the resumption act, and prophesied its failure. Mr. Hewitt, in +support of his position, quoted passages from the reports of Mr. +Bristow, then Secretary of the Treasury, and predicted the utter +failure of resumption, unless the United States notes were entirely +withdrawn. He insisted that if silver coin was issued to replace +fractional currency, the coin would disappear from circulation, +leaving the people without any currency for the smaller necessities +of life. In the progress of the debate, it became manifest that +the larger portion of the Democratic Members would vote against +every measure proposed to aid in the execution of the resumption +act. + +The bill passed the House on the 31st of March by the vote of 123 +yeas and 100 nays. In the Senate it was referred to the committee +on finance, and reported back with amendments. The third section +of the bill, as it came from the House, provided for the coinage +of the silver dollar, of the weight of 412.8 grains troy, standard +silver, and made that dollar a legal tender at its nominal value, +to an amount not exceeding twenty dollars in any one payment, except +for customs duties and interest on the public debt, and that the +"trade dollar" should not, thereafter, be a legal coin. This +section was stricken out. + +In the remarks made by me, upon this bill, on the 10th day of April, +1876 , I gave, in detail, the history of each of the coinage laws +of Great Britain, France, Belgium, Germany, Switzerland and Italy. +I had taken great pains to collect this information and to procure +translations of the laws of the several countries named. The then +recent changes, made by Germany, and their effect upon the coinage +of other nations, were carefully stated. The general conclusion +which I drew from a reference to these statutes of various countries, +were: + +"First. It is impossible, in the nature of things, to fix the +precise value of silver and gold. We have tried it three times +and failed. + +"Second. Whenever either coin is worth more in the market than +the rate fixed by the law, it flees from the country. That we have +twice proved. That is the admitted economic law. It is the Gresham +law; a law of currency named from the name of its discoverer. He +wrote a book to show that always the poorer currency would drive +out of circulation a superior currency; and his book gave name to +the theory that is called the law of Gresham. It is the universal +law of political economy that, whenever two metals or two moneys +are in circulation, the least valuable will drive out the most +valuable; the latter will be exported. + +"The third proposition is that the example of several great European +nations, as well as of the United States, proves that to prevent +the depreciation of silver the tendency of modern nations is to +issue it as a token coinage somewhat less in intrinsic value than +gold, and maintain its value by issuing it only as needed, at par +with the prevailing currency, and to make it a limited legal tender. +I may say that has been acted upon by every great Christian nation. +Russia and Austria have not yet gold coinage at all, but still they +have their values based upon gold. + +"Fourth. That the demonetization of silver tends to add to the +value of gold, and that though the relative value ebbs and flows +it is more stable compared to gold than any other metal, grain, or +production. Its limit of variation for a century is between fifteen +to seventeen for one in gold. + +"Fifth. That both coins are indispensable, one for small and the +other for large transactions. + +"Sixth. That the causes of the decline of silver are temporary. +It is still used by a great majority of mankind as the standard of +value. Its use in France and the United States will, on resumption, +more than counteract its decline in Germany. + +"Seventh. The general monetizing of silver now, when it is +unnaturally depreciated, would be to invite to our country, in +exchange for gold or bonds, all the silver of Europe, and at last +it would leave us with a depreciated currency. + +"Eighth. The decline of silver enables us now to exchange silver +coin of the old standard for fractional currency, leaving the +exchange optional with the holder, until we have the courage, as +we now have the ability, to redeem it in gold. + +"Ninth. More silver can be maintained at par than we have now of +fractional currency. + +"Tenth. The redemption of a part of our currency would advance +its purchasing power, while the silver in circulation will counteract +the contraction of the currency." + +This bill became a law on the 17th of April, 1876. The second +section provided: + +"That the Secretary of the Treasury is hereby directed to issue +silver coins of the United States of the denomination of ten, +twenty, twenty-five and fifty cents of standard value, in redemption +of an equal amount of fractional currency, whether the same be now +in the treasury awaiting redemption, or whenever it may be presented +for redemption; and the Secretary of the Treasury may, under +regulations of the treasury department, provide for such redemption +and issue by substitution, at the regular sub-treasuries and public +depositaries of the United States, until the whole amount of +fractional currency outstanding shall be redeemed. And the fractional +currency redeemed under this act shall be held to be a part of the +sinking fund provided for by existing law, the interest to be +computed thereon as in the case of bonds redeemed under the act +relating to the sinking fund." + +A joint resolution for the issue of silver coin was introduced in +the House by Mr. Frost, of Massachusetts, on the 1st of May, 1876. +The object of this resolution was to expedite the issue of minor +coin and the retirement of fractional currency. It was referred +to the committee on finance, reported favorably and passed with +amendments June 21. The House disagreed to the amendments of the +Senate, and a committee of conference was appointed composed of +John Sherman, George S. Boutwell, and Louis V. Bogy, managers on +the part of the Senate, and H. B. Payne, and Samuel J. Randall, +managers on the part of the House. The report of the conferees +was agreed to, and the bill having passed both Houses it was approved +by the President on the 22nd of July. It provided: + +"That the Secretary of the Treasury, under such limits and regulations +as will best secure a just and fair distribution of the same through +the country, may issue the silver coin at any time in the treasury +to an amount not exceeding ten million dollars, in exchange for an +equal amount of legal tender notes; and the notes so received in +exchange shall be kept as a special fund, separate and apart from +all other money in the treasury, and be reissued only upon the +retirement and destruction of a like sum of fractional currency +received at the treasury in payment of dues to the United States; +and said fractional currency, when so substituted, shall be destroyed +and held as part of the sinking fund, as provided in the act approved +April seventeen, eighteen hundred and seventy-six." + +It also provided: "That the trade dollar shall not hereafter be +a legal tender, and the Secretary of the Treasury is hereby authorized +to limit, from time to time, the coinage thereof to such an amount +as he may deem sufficient to meet the export demand for the same." + +It also provided that the amount of subsidiary silver coin authorized +should not exceed $50,000,000. The silver bullion was to be +purchased from time to time at market price by the Secretary of +the Treasury from any money in the treasury not otherwise appropriated, +and any gain or seigniorage arising from the coinage was to be paid +into the treasury. + +These provisions in respect to subsidiary coin were in a large +measure executed prior to the 4th of March, 1877, and tended, in +my opinion, to facilitate the progress of the resumption of specie +payments on the 1st of January, 1879. The debate on these measures +occupied a large portion of the time of both Houses of Congress, +and presented in every possible aspect all the financial questions +involved in coinage, resumption and refunding. Anyone desiring a +full knowledge of the view then taken of the act revising the laws +in respect to coins and coinage, approved February 12, 1873, will +find in the debate a full history of that act, given at a time when +it was fresh in the memory of the great body of Senators and +Members. + +I supported the coinage of the old silver dollar in a speech in +the Senate made on the 8th of June, 1876, two years before the +appearance of the "Bland bill," or the "Allison bill." Silver +bullion was then declining in market value. The resumption act +provided for the gradual replacement of fractional currency by +silver coins of the character and form provided for by the coinage +act of 1853. When that act passed the old silver dollar was not +coined or in circulation. It was more valuable in the market than +a dollar in gold, and, if coined, would have been exported as +bullion. In the revision of the coinage laws of 1873, it was +dropped from the list of coins, and its further coinage was prohibited +by a clause providing that no coins should be made at the mint +except those provided for in that act. The history of this act +and the reasons for prohibiting the coinage of the old dollar have +been fully stated in a previous chapter of this work. In place of +the old dollar the trade dollar, containing 420 grains of silver, +was provided for. This trade dollar, coined for, and at the expense +of, the owner of the bullion deposited at the mint, was, in the +revision of the laws of the United States, unintentionally made a +legal tender for five dollars, the same as the minor coins issued +by the mint on government account. As silver declined in value, +the trade dollar became less valuable than a dollar in gold, and +the owners of bullion deposited it in the mint, and received in +exchange trade dollars costing less than a dollar in gold, but, +being a legal tender for five dollars, it could be forced upon the +people of California, then upon the gold standard, at a profit to +the owner of the bullion. Mr. Sargent, a Senator from California, +early in the session introduced a bill enlarging the limit of legal +tender of minor coins, and repealing the legal tender quality of +the trade dollar. This bill was referred to the committee on +finance, and was reported with an amendment to strike out all after +the enacting clause, and insert: + +"That section 3586 of the Revised Statutes of the United States +be, and hereby is, amended to read as follows: + +"The silver coins of the United States, except the trade dollar, +shall be a legal tender at their nominal value for any amount not +exceeding five dollars in any one payment." + +This simple bill was made the text of a long debate in the Senate +that continued during the greater part of that session. The +provision that "the trade dollar shall not hereafter be a legal +tender" was transferred to the joint resolution already mentioned +which became a law on the 22nd of July. + +In my speech on Mr. Sargent's bill I said: + +"This bill proposes to restore the old silver dollar, and with it +and the subsidiary coins of the United States to redeem the United +States notes and fractional currency. The dollar to be restored +is the same dollar that had existed from 1792 to 1873; and the +subsidiary coins to be issued are the same in form and value as +have been issued since 1853. I have already stated in my remarks, +made on the 11th of April last, the history of these silver coins +and the relation of silver and gold to each other, not only in the +United States, but in the countries with which we have the most +extensive commercial relations. + +"The two main questions are: + +* * * * * + +"First. Shall silver coin be exchanged for United States notes as +well as for fractional currency? And, + +"Second. Is it wise to recoin the old silver dollar with a view +to exchange it for United States notes?" + +In this speech I favored the restoration of the silver dollar of +the precise character and description of the dollar that existed +from 1792 to 1873, but, as the market value of the silver in this +dollar had greatly fallen, I insisted that the dollar should be +coined from bullion purchased by the government at market price, +so that the people of the United States would receive the difference +between the cost of the bullion and the face value of the coin, +the same principle that was adopted in what is known as the Bland- +Allison act of 1878. I did not, however, propose the full legal +tender quality that was given to the dollar by the act when adopted, +but that it should be placed among the other silver coins, and be +a legal tender only for twenty dollars. + +The plan proposed by me was to set aside a portion of the surplus +revenue or sinking fund of each year applicable to the payment of +the public debt, for the purchase of silver bullion to be coined +into silver dollars of the old standard. I said: + +"The bill reported by the committee on finance thus provides for +an immediate resumption of specie payments in silver coin, and thus +completes the first and most difficult step of the problem. It +neither disturbs nor deranges business, nor stirs up the phantom +of contraction. It is in exact accordance with existing law, and +leaves the silver coin, as now, a subsidiary coin, a legal tender +only for limited amounts. + +"The next question presented by this bill is, shall we return to +our silver coinage the old silver dollar. And here I am met by +the objections of the Senator from Vermont, but his objections are +rather to the amendments proposed by the Senator from Missouri, +than to the report of the committee. The committee propose the +silver dollar, not as a legal tender for gold contracts, but only +as a tender for currency contracts not exceeding twenty dollars in +any one payment. I would prefer to leave the silver dollar and +stand upon its intrinsic value as a legal tender the same as the +smaller coin; but there is no injustice in enlarging the limit to +twenty dollars, and but for the reasons I will state hereafter +there is no injustice in making it a legal tender for all currency +contracts. The silver dollar has that intrinsic value which in +all periods of our history has made it a favorite coin, not only +for domestic uses but for exportation. It furnishes silver bullion +in a shape and form more convenient for handling than any other +form of coin. + +* * * * * + +"When the old silver dollars are issued at par with the United +States notes, a large amount of them will be taken as a reserve by +the people to meet future needs, with or without a legal tender +quality. As their issue is not peremptory, and the aggregate cannot +exceed the surplus revenue or sinking fund, there is no danger of +an overissue, while their existence among the people will be the +best reserve when gold alone becomes the full standard of value. + +"Every argument already mentioned in favor of subsidiary silver +coins is equally potent in favor of the silver dollar. It will be +eagerly taken in payment of United States notes. It is purely a +voluntary exchange. It is the cheapest mode in which we can redeem +United States notes. It is specie resumption in the old time- +honored standard of silver dollars of full weight and fineness. +It will accustom our people to distinguish between the real dollar +that pays where it goes and a paper dollar which only promises to +pay. It will prepare the way for full resumption in gold. To the +extent proposed by the committee, and to be used as a purely +voluntary approach to a full specie standard, it is open to no +objection or criticism, and should be assented to by gentlemen who +have differed with each other on the present resumption law or on +the merits and dangers of contraction and expansion." + +The vital difference between the free coinage of silver, and the +limited coinage of that metal on government account, is that with +free coinage the standard of value would be the cheaper money. +With silver at its present price in the market the dollar would be +worth but a little over fifty cents. The coinage being free to +the holders of silver bullion no other coins would be made except +the cheaper coins of least purchasing power. On the other hand, +the coinage of silver on government account enables us to maintain +the silver coins at par with gold, without respect to the market +value of the silver bullion. Any nominal profit from this coinage +inures to the benefit of the whole people of the United States and +not merely to the producers of silver bullion. This distinction +has always appeared to me so marked and clear, and the argument so +strong in favor of limiting the coinage of silver to the amount +demanded as a convenience of the people for the smaller transactions +of life, that I cannot sympathize with a policy that aims merely +to secure the cheapest money for the discharge of obligations +contracted upon more valuable money. + +Among the measures that became a law at this session was a concurrent +resolution, introduced by me in the Senate on the 5th of July, +1876, to provide for the completion of the Washington monument. + +On the morning of the 4th of July, 1876, the 100th anniversary of +American independence, I was making some preparation for the +celebration of that day in the vicinity of Washington. Animated +by the patriotic feeling inspired by the day, and sitting in view +of the unfinished monument of George Washington, I felt that the +time had come when this monument should no longer continue a standing +reproach to a patriotic people. Shortly after the death of +Washington, a resolution providing for the erection of a monument +to his memory, was agreed to by both Houses of Congress. Subsequently, +on January 1, 1801, a bill was passed by the House of Representatives +appropriating $200,000 for this purpose, but, in the political +excitements of that day, the Senate failed to concur. In the +absorbing public questions that ensued, resulting in the War of +1812, the subject was dropped in Congress for the time. + +In 1833 the "Washington Monument Society" was formed, with Chief +Justice Marshall as its president. This society proposed to raise +the necessary sum to erect such a monument by voluntary subscriptions +of individuals, and in 1854 it had, by such means, constructed +about one-third of the height of the monument and then suspended +work. Thus it had remained for years for want of means to complete +it, a glaring evidence of failure. The portion of the monument +already reared to the height of 156 feet stood in rude outline, an +abandoned failure in the midst of a reservation partly covered with +water and broken stone. The society was incorporated by Congress +in 1859, but no further progress was made. It was manifest that +the work could not be completed by the existing organization, and +doubts were expressed whether the foundation was sufficient to bear +the superstructure. Under these conditions, on the 100th anniversary +of the declaration of American independence, it occurred to me the +time had arrived when a great country like ours should complete +this unfinished monument to George Washington. Under the inspiration +of this thought I wrote this resolution on the morning of the 4th +of July, and on the next morning offered it for adoption in the +Senate: + +"Whereas, It has pleased Almighty God to guide the United States +of America safely through one hundred years of national life, and +to crown our nation with the highest blessing of civil and religious +liberty, Therefore, + +"The Senate and House of Representatives in Congress assembled, in +the name of the people of the United States, in reverent thankfulness +acknowledge the fountain and source, the author and giver of all +these blessings, and our dependence upon His providence and will; +and, + +"Whereas, We recognize, as our fathers did, that George Washington, +'first in peace, first in war, and first in the hearts of his +countrymen,' was one of the chief instruments of Divine Providence +in securing American independence and in laying broad and deep the +foundations of our liberties in the constitution of the United +States: + +"Therefore, as a mark of our sense of the honor due to his name +and to his compatriots and associates, our revolutionary fathers, + +"We, the Senate and House of Representatives in Congress assembled, +in the name of the people of the United States at this, the beginning +of the second century of national existence, do assume and direct +the completion of the Washington monument in the city of Washington, +and instruct the committees on appropriations of the respective +Houses to propose suitable provisions of law to carry this resolution +into effect." + +In submitting this resolution I said: + +"I desire to offer at this time a concurrent resolution I wish to +say before it is read that I believe if it were passed to-day it +would be a matter of profound satisfaction to the great body of +the people of the United States. I ask that it be read." + +After the resolution was read, there was a pause, when Mr. Edmunds +said: "Let us consider this resolution. It will be agreed to +unanimously, I am sure." + +The resolution was therefore considered and agreed to unanimously. +It was sent to the House of Representatives the next morning, when +Mr. Hopkins, of Pennsylvania, pending a motion to adjourn, asked +unanimous consent to take from the speaker's table the concurrent +resolution in reference to the Washington monument. Upon the +resolution being read, the House seemed to be impressed, as was +the Senate, with the fitness of the time, and the propriety of the +measure proposed, and it was unanimously adopted without debate. + +Thus Congress undertook to execute the unfinished work of the +Washington Monument Society. The requisite appropriations were +subsequently made, and the monument, as completed, is now the most +impressive token of the appreciation, by the American people, of +the name and fame of George Washington. It is visited daily by +nearly every American or stranger who enters the city of Washington. +Its dedication will be hereafter mentioned. + + +CHAPTER XXVIII. +THE HAYES-TILDEN PRESIDENTIAL CONTEST. +Nomination of R. B. Hayes for President--His Fitness for the +Responsible Office--Political Shrewdness of Samuel J. Tilden, His +Opponent--I Enter Actively Into the Canvass in Ohio and Other States +--Frauds in the South--Requested by General Grant to Go to New +Orleans and Witness the Canvassing of the Vote of Louisiana-- +Departure for the South--Personnel of the Republican and Democratic +"Visitors"--Report of the Returning Board--My Letter to Governor +Hayes from New Orleans--President Grant's Last Message to Congress +--Letter from President Hayes--Request to Become his Secretary of +the Treasury. + +The Republican national convention of 1876 met at Cincinnati on +the 14th of June of that year. After the usual organization the +following eight nominations for President were made: Blaine, +Morton, Conkling, Bristow, Hayes, Hartranft, Wheeler and Jewell. +The total number of delegates was 754. Blaine was greatly in the +lead, receiving on the first ballot 285 votes, some from nearly +every state. Morton received 124, Bristow 113, Conkling 99, Hayes +61, Hartranft 58, Jewell 11, and Wheeler 3. There were 7 ballots, +in which Blaine steadily held his vote and slightly gained, receiving +on the final ballot 351 votes. The vote for Hayes increased at +each ballot until on the seventh ballot he received 384 votes, a +majority over all. + +Undoubtedly Blaine was the favorite of the convention, but the +antagonisms that existed between him and Conkling probably defeated +his nomination. I still believe that the nomination of Hayes was +not only the safest, but the strongest, that could be made. The +long possession of power by the Republicans naturally produced +rivalries that greatly affected the election of anyone who had been +constantly prominent in public life, like Blaine, Conkling and +Morton. Hayes had growing qualities, and in every respect was +worthy of the high position of President. He had been a soldier, +a Member of Congress, thrice elected as Governor of Ohio, an +admirable executive officer, and his public and private record was +beyond question. He was not an aggressive man, although firm in +his opinions and faithful in his friendships. Among all the public +men with whom I have been brought in contact, I have known none +who was freer from personal objection, whose character was more +stainless, who was better adapted for a high executive office, than +Rutherford B. Hayes. + +Governor Hayes wrote me the following letter in recognition of my +aid in his nomination. + + "Columbus, O., June 19, 1876. +"My Dear Sir:--I trust you will never regret the important action +you took in the inauguration and carrying out of the movement which +resulted in my nomination. I write these few words to assure you +that I appreciate, and am gratified for, what you did. + +"My kindest regards to Mrs. Sherman. + + "Sincerely, + "R. B. Hayes. +"Hon. John Sherman." + +His opponent, Samuel J. Tilden, was a man of singular political +sagacity, of great shrewdness, a money-making man, who professed +to represent, and perhaps did represent, as fairly as anyone, the +ideas of the New York politicians of the school of Van Buren and +Marcy. I knew Mr. Tilden personally and very favorably, as we were +members of a board of railroad directors which frequently met. He +seemed to take pleasure in talking with me about political events, +and especially of the famous New York politicians, of whom Silas +Wright and Mr. Van Buren were his favorites. He had acquired great +wealth as the attorney of corporations, and was undoubtedly a man +of marked ability and sagacity. He had taken an active part in +defeating the corruption of Tweed in New York politics. He had +been elected governor of the State of New York, as the candidate +of reform and honesty in politics. + +The long and important session of Congress adjourned on the 15th +of August. It had been the arena for long debates, mostly on +political topics growing out of reconstruction, and financial +measures heretofore referred to. The pending presidential contest +also excited much debate in both Houses. The administration of +General Grant had not been entirely satisfactory, and the long +continuance of the Republican party in power was an element of +weakness. The complaints, unavoidable in the most honest +administration, and the disappointments of office-seekers, placed +that party on the defensive. The south had, by reconstruction, +been practically restored to political power, and the body of the +negroes had been substantially disfranchised, though legally entitled +to the suffrage. Riots and crimes of every degree were committed +in the south, notably in Louisiana, South Carolina and Florida. +Organized mobs and violence had deterred many from voting, and in +some cases had prevented even the semblance of a free election. + +I entered actively into this canvass, more so than in any previous +one. Three days before the adjournment, I made my opening speech +at Marietta, Ohio, in which I discussed fully the dangers of the +restoration of the Democratic party to power, the probability of +their failure to enforce the constitutional amendments, and the +protection of the rights of the freedmen. I claimed that the +election of Mr. Tilden would result in the virtual nullification +of the constitutional amendments, and amount to a practical +restoration to power of the old Democratic party. The revival of +the rebel claims, the refunding of the cotton tax, and the damages +done to rebels, were fully commented upon, as were the outrages +committed upon freedmen during the second administration of General +Grant, the organization of Ku-Klux Klans, and the White League, +and the boldness with which the laws were disregarded in the south. +It is difficult now to realize the condition of public affairs in +all the states then lately in rebellion. The people of the south +are certainly entitled to the highest credit for the great change +that has recently been made in the government of their states, but +it cannot be denied that during the ten years after the war their +condition bordered on the despotism of mob rule and violence. +Financial questions, no doubt, entered into the canvass, but in +this respect Governor Tilden and Governor Hayes did not materially +differ, while public opinion in the southern states was almost a +unit in favor of the larger use of paper money. Their bankrupt +condition made this policy almost universal there. + +I continued until the day of election to make speeches, not only +in Ohio, but in several of the states. I engaged in a joint debate +with Senator Voorhees, of Indiana, at Columbia City, in that state, +in September, which probably had more fun and humor in it than +argument. It so happened that appointments were made for each of +us at Columbia City, on the same day, and the managers of the two +parties concluded that they would have a joint debate, and arranged +for it, to which we both assented. There was a great crowd, and +besides Mr. Voorhees and myself, "Blue Jeans" Williams, the candidate +for governor, was to open the meeting in his peculiar way, to which, +as it would not at all interfere with our debate, I did not object. +The debate was fully reported in the Chicago "Inter-Ocean," and is +a very graphic specimen of popular debates in which each side claims +to be the victor. I think it would be safe to say that from the +close of Congress until the day of election I spoke on nearly every +week day in some one of the five or six states which I visited. + +The result of the presidential election in November, 1876, was +extremely doubtful. It was soon asserted that the majority either +way would be very small, and that the probabilities were that Mr. +Tilden was elected. Zachariah Chandler, chairman of the national +Republican committee, however, confidently telegraphed, on the +morning after the election, that Hayes was elected by a majority +of one in the electoral college. Further reports developed that +on account of intimidation, frauds and violence, committed in the +election in Louisiana, South Carolina, and Florida, the vote of +each of those states was doubtful, and could only be ascertained +by the reports of the returning boards. All of their electoral +votes were needed to give Hayes the majority of one. Both parties +claimed in each of the states a majority of the popular vote. In +the heated state of political feeling in those states, it was a +matter of grave doubt whether the count of the vote might not result +in violence, tumult or war. On the evening of November 11, I +received from President Grant the following telegram: + + "Philadelphia, Pa., November 11, 1876. + "Received at Mansfield, O., 8:35 p. m. +"Senator John Sherman. + +"I would be much pleased if you would join other parties, who have +already accepted same invitation, to go to New Orleans to witness +the canvassing of the vote of Louisiana. + + "U. S. Grant." + +I replied that I would go as soon as practicable, and received the +following answer: + + "Washington, D. C., November 12, 1876. + "Received at Mansfield, O., 4 p. m. +"Hon. John Sherman. + +"Unless you can reach there by Friday morning it will be too late. + + "U. S. Grant." + +I at once started for New Orleans, stopping on the way at Columbus +to confer with Governor Hayes, who said he wished I would go to +New Orleans, and witness the count, but expressed, in the strongest +possible language, his opposition to any movement on the part of +anyone to influence the action of the returning board in his favor. +He said that if Mr. Tilden was elected he desired him by all means +to have the office. I proceeded to Cincinnati, where I met some +of the gentlemen whom General Grant had requested to witness the +count. When we arrived in New Orleans I found far less excitement +in respect to the count than in Ohio. I there met the other +gentlemen who had been, like myself, invited by General Grant. +They were Messrs. Stanley Matthews, Ohio; J. A. Garfield, Ohio; E. +W. Stoughton, New York; J. H. Van Alen, New York; Wm. D. Kelley, +Pennsylvania; Job E. Stevenson, Ohio; Eugene Hale, Maine; J. M. +Tuttle, Iowa; J. W. Chapman, Iowa; W. R. Smith, Iowa; W. A. McGrew, +Iowa; Sidney Clarke, Kansas; C. B. Farwell, Illinois; Abner Taylor, +Illinois; S. R. Haven, Illinois; J. M. Beardsley, Illinois; John +Coburn, Indiana; Will Cumback, Indiana; C. Irving Ditty, Maryland. + +At New Orleans I was for the first time introduced to the members +of the returning board, who, under the laws of Louisiana, were +required to verify the count and whose return was final. We met +also a large number of gentlemen who were there at the request of +the national Democratic committee to perform the same duty that +had been imposed upon us by General Grant. These gentlemen were +John M. Palmer, Illinois; Lyman Trumbull, Illinois; William R. +Morrison, Illinois; Samuel J. Randall, Pennsylvania; A. G. Curtin, +Pennsylvania; William Bigler, Pennsylvania; J. R. Doolittle, +Wisconsin; George R. Smith, Wisconsin; J. E. McDonald, Indiana; +George W. Julian, Indiana; M. D. Manson, Indiana; John Love, Indiana; +Henry Watterson, Kentucky; J. W. Stevenson, Kentucky; Henry D. +McHenry, Kentucky; Oswald Ottendorfer, New York; J. B. Stallo, +Ohio; Lewis V. Bogy, Missouri; James O. Brodhead, Missouri; C. +Gibson, Missouri; John Lee Carroll, Maryland; William T. Hamilton, +Maryland; W. G. Sumner, Connecticut; P. H. Watson, Ohio; F. R. +Coudert, New York. + +Before my arrival a correspondence had occurred between what was +called the Democratic visitors and the Republican visitors in regard +to our respective duties. This correspondence, all of which was +reported to President Grant, resulted in the attendance of a certain +number of each of the bodies of visitors at each session of the +returning board, and thus a constant surveillance of the proceedings +of the board was had. At the same time we received from the +returning board the following letter: + + "State of Louisiana, Office Board of Returning-Officers,} + "New Orleans, November 18, 1876. } +"Sir:--At a meeting of the board of returning-officers, held this +day, the following preamble and resolution, introduced by General +Thomas C. Anderson, was unanimously adopted, viz: + +"Whereas, This board has learned with satisfaction that distinguished +gentlemen of national reputation from other States, some at the +request of the President of the United States, and some at the +request of the national executive committee of the Democratic party +are present in this city with a view to witness the proceedings of +this board in canvassing and compiling the returns of the recent +election in this state for presidential electors, in order that +the public opinion of the country may be satisfied as to the truth +of the result and the fairness of the means by which it may have +been attained; and whereas, this board recognizes the importance +which may attach to the result of their proceedings, and that the +public mind should be convinced of its justice by a knowledge of +the facts on which it may be based, therefore, be it + +_Resolved_, That this board does hereby cordially invite and request +five gentlemen from each of the two bodies named, to be selected +by themselves respectively, to attend and be present at the meetings +of the board while engaged in the discharge of its duties, under +the law, in canvassing and compiling the returns, and ascertaining +and declaring the result of said election for presidential electors, +in their capacity as private citizens of eminent reputation and +high character, and as spectators and witnesses of the proceedings +in that behalf of this board. + + "J. Madison Wells, + "Chairman Board of Returning-Officers. +"Hon. John Sherman, St. Charles Hotel, New Orleans." + +On the same day I answered in behalf of my associates as follows: + + "St. Charles Hotel, } + "New Orleans, November 18, 1876.} +"Sir:--I have received your note of to-day, with a copy of the +resolution of the board of returning-officers of the State of +Louisiana, and have communicated the invitation contained in it to +the gentlemen who are here at the request of the President of the +United States to witness the canvassing of the vote at the recent +election in this state for presidential electors, and am instructed +by them to inform you of their acceptance of the invitation, and +that they will designate a committee of five of their number to +attend the meetings of the board. And I take this occasion to +express my thanks for the courteous terms of this invitation, my +deep sense of the importance of your proceedings, and my confident +hope that they will be so conducted as to convince the public mind +of the justice of your finding. + + "John Sherman. +"Hon. J. Madison Wells." + +A similar invitation was extended to the Democratic visitors, and +substantially the same reply made. The returning board then +proceeded to perform its duty under the law. At each session the +Republican and Democratic visitors were present, and I neither know +of nor have ever heard of any act being done or testimony taken by +the board except in the presence of committees of the two bodies +of visitors. The proceedings of the returning board were reported +for each body of visitors and for the returning board, and all the +evidence taken was not only delivered in the presence of the two +visiting bodies, but was reported to the President and was published +by Congress. Whatever opinions may be expressed as to the correctness +of the findings of the returning board, there can be no doubt that +its proceedings were open, fair and impartial. The board arrived +at the conclusion that the Republican electors received a majority +of the votes cast in Louisiana at that election, and were entitled +to cast the vote of the state for President of the United States. + +During the great excitement over this controversy, and also over +that in South Carolina and Florida, exaggerated statements, without +the slightest foundation, of frauds and improper conduct on the +part of the returning officers were made and published. As to the +action of the returning board of Louisiana, I feel bound now, after +a long lapse of time, to repeat what was reported to General Grant +by the Republican visitors, that it made a fair, honest and impartial +return of the result of the election. In concluding our report we +said: + +"The proof of violence and intimidation and armed disturbance in +many other parishes, is of the same general character, although +more general and decisive, as to the five parishes particularly +referred to. In the others, these causes prevailed at particular +polling places, at many of which the Republican vote was, to a +considerable extent, prevented. + +"We hope to be able to furnish full copies of all testimony taken +by the board, that the justice of its conclusions may be appreciated. +It is a tribunal, from which there can be no appeal, and, in view +of the possible consequences of its adjudication, we have closely +observed its proceedings and have carefully weighed the force of +a large mass of the testimony upon which that adjudication has been +reached. + +"The members of the board, acting under oath, were bound by law, +if convinced by the testimony that riot, tumult, acts of violence, +or armed disturbance did materially interfere with the purity and +freedom of election at any poll or voting place, or did materially +change the result of the election thereat, to reject the votes thus +cast, and exclude them from their final return. Of the effect of +such testimony, the board was sole and final judge, and if, in +reaching a conclusion, it exercised good faith and was guided by +an honest desire to do justice, its determination should be respected, +even if, upon like proof, a different conclusion might have been +reached by other tribunals or persons. + +"To guard the purity of the ballot; to protect the citizen in the +free and peaceful exercise of his right to vote; to secure him +against violence, intimidation, outrage, and especially murder, +when he attempts to perform his duty, should be the desire of all +men, and the aim of every representative government. If political +success shall be attained by such violent and terrible means as +were resorted to in many parishes in Louisiana, complaint should +not be made if the votes thus obtained are denounced by judicial +tribunals and all honest men as illegal and void." + +Pending the action of the board I wrote to Governor Hayes the +following letter, giving a general view of the testimony: + + "State of Louisiana, Executive Department,} + "New Orleans, November 23, 1876. } +"My Dear Sir:--I have not written you sooner, for the progress of +our visitation will be known to you through the papers sooner than +from my letters, and the telegraph office here is more public than +a sheriff's sale. We sometimes hear of private telegrams before +they are delivered. The action of the returning board has thus +far been open and fair and only confirms the general result known +before. We are now approaching the contested parishes. To five +of them, viz: Baton Rouge, East and West Feliciana, Morehouse and +Ouachita, the evidence of intimidation is so well made out on paper +that no man can doubt as to the just exclusion of their vote. In +these parishes alone we ought to have a majority of 7,000, but +under the law the entire return must be excluded of all election +districts where intimidation has affected or changed the result. +If this is done the result will give the Hayes electors majorities +aggregating 24,111, and the Tilden electors 22,633, but in almost +every parish the official return varies somewhat from the stated +majorities, and thus far slightly reduces the Republican majority. + +"The vote of each disputed parish has thus far been laid aside, +and among them two parishes where a most foolish blunder, or +something worse, was made in omitting from the Republican tickets +the names of all the electors but the two Senatorial and one district +elector. The Democrats claim this will lose over 2,000 votes, but +our friends, whose information we have generally found confirmed, +say it will lose us at most 1,193 votes. The law seems conclusive +that the defective ballots cannot be counted for any electors but +those named on the ticket; though it is conclusively shown that +the remaining electors were omitted by reason of the mistaken idea +that the district could only vote for one elector. The whole +trouble has grown out of the fact that in these two parishes a +candidate for district judge was not named on the ticket printed +by the state committee. We undertook to correct this by printing +new tickets, which were voted in those parishes. The result of +this blunder will leave the poll so close as to render it probable +that one or more of the Tilden electors would have a majority. + +"There are other parishes where the organized intimidation was not +so general as in the parishes named, though in single election +precincts it was effective. These parishes, where formal protests +have been filed, are Bienville, Bossier, Caldwell, Franklin, Grant, +Iberia, Lincoln, Richland and Sabine. How far the proof in these +parishes will sustain the protests we cannot judge till the evidence +is heard before the returning board. + +"We are now collecting the testimony as to the bulldozed parishes. +It seems more like the history of hell than of civilized and +Christian communities. The means adopted are almost incredible, +but were fearfully effective upon an ignorant and superstitious +people. That you would have received at a fair election a large +majority in Louisiana, no honest man can question; that you did +not receive a majority is equally clear. But that intimidation of +the very kind and nature provided against by the Louisiana law did +enter into and control the election, in more election polls than +would change the result and give you the vote, I believe as firmly +as that I write this. The difficulty of gathering this testimony +and putting it in the legal form has been very great, but I believe +has been fully met. + +"The whole case rests upon the action of the returning board. I +have carefully observed them, and have formed a high opinion of +Governor Wells and Colonel Anderson. They are firm, judicious, +and, as far as I can judge, thoroughly honest and conscientious. +They are personally familiar with the nature and degree of intimidation +in Louisiana. They can see that the intimidation, as organized, +was with a view of throwing out Republican parishes rather than +endangering Democratic parishes. Our little party is now dividing +out the disputed parishes, with the view of a careful examination +of every paper and detail. Many are impatient of the delay, and +some have gone home. We will probably be able to keep about ten +here. We have incurred some liabilities for reporting, printing, +etc., but hope the Republican national committee will make this +good. If not, we must provide for it ourselves. We are in good +hope and spirit. Not wishing the return in your favor, unless it +is clear that it ought to be so, and not willing to be cheated out +of it, or to be 'bulldozed' or intimidated, the truth is palpable +that you ought to have the vote of Louisiana, and we believe that +you will have ti, by an honest and fair return, according to the +letter and spirit of the law of Louisiana. + + "Very truly yours, + "John Sherman." + +To this General Hayes responded as follows: + + "Columbus, O., November 27, 1876. +"My Dear Sir:--I am greatly obliged to you for your letter of the +23rd. You feel, I am sure, as I do about this whole business. A +fair election would have given us about forty electoral votes at +the south--at least that many. But we are not to allow our friends +to defeat one outrage and fraud by another. There must be nothing +crooked on our part. Let Mr. Tilden have the place by violence, +intimidation and fraud, rather than undertake to prevent it by +means that will not bear the severest scrutiny. + +"I appreciate the work doing by the Republicans who have gone south, +and am especially proud of the acknowledged honorable conduct of +those from Ohio. The Democrats make a mistake in sending so many +ex-Republicans. New converts are proverbially bitter and unfair +towards those they have recently left. + +"I trust you will soon reach the end of the work, and be able to +return in health and safety. + + "Sincerely, + "R. B. Hayes." + +I met Governor Hayes on my return and his conversation was to the +same effect, that he wished no doubtful votes and would greatly +prefer to have Mr. Tilden serve as President if there was any doubt +about his (Hayes') election. The Republican visitors did not return +until after the meeting of Congress at its regular session on the +4th of December, 1876. + +President Grant, in the beginning of his annual message of that +date, said: + +"In submitting my eighth and last message to Congress, it seems +proper that I should refer to, and in some degree recapitulate, +the events and official acts of the past eight years. + +"It was my fortune, or misfortune, to be called to the office of +Chief Executive without any previous political training. From the +age of seventeen I had never even witnessed the excitement attending +a presidential campaign but twice antecedent to my own candidacy, +and at but one of them was I eligible as a voter. Under such +circumstances it is but reasonable to suppose that errors of judgment +must have occurred. Even had they not, differences of opinion +between the Executive, bound by an oath to the strict performance +of his duties, and writers and debaters must have arisen. It is +not necessarily evidence of blunder on the part of the Executive +because there are these differences of views. Mistakes have been +made, as all can see and I admit, but, it seems to me, oftener in +the selections made of the assistants appointed to aid in carrying +out the various duties of administering the government, in nearly +every case selected without a personal acquaintance with the +appointee, but upon recommendations of the representatives chosen +directly by the people. It is impossible, where so many trusts +are to be allotted, that the right parties should be chosen in +every instance. History shows that no administration, from the +time of Washington to the present, has been free from these mistakes. +But I leave comparison to history, claiming only that I have acted +in every instance from a conscientious desire to do what was right, +constitutional within the law, and for the very best interests of +the whole people. Failures have been errors of judgment, not of +intent." + +This modest statement by General Grant was appreciated by Congress +and by the country. No one doubted the sincerity and patriotism +of the President. His modest confession of errors did not in the +slightest degree impair the universal confidence in him. + +On the 18th of January, 1877, Mr. Edmunds, of the select committee +of the Senate on the counting of electoral votes, submitted a report +in writing with an accompanying bill. It was, with one exception, +signed by the members of the committees of the two Houses without +distinction of party. The bill provided in full detail a prescribed +manner for counting the electoral vote. It was adopted by both +Houses and voted for by a great majority, but, believing that it +was extra constitutional, I, with other Republicans, did not vote +for it. The history of the electoral commission provided for in +this bill is part of the history of the country, and it is not +necessary to here enter into it in detail. It is sufficient to +say that it resulted in the counting of the votes of Louisiana, +South Carolina and Florida for Mr. Hayes, electing him President +by a majority of one vote. I took an active part in the debates +on the questions involved and gave in detail my view of the action +of the returning board of Louisiana. + +During this period I received a number of personal letters from +Governor Hayes, some of which may be of interest: + + "Columbus, O., December 25, 1876. +"My Dear Sir:--I have your esteemed favor, and have also met Judge +Taft and Governor Dennison. There will not be the slightest +difficulty growing out of the matter you refer to. You know my +general course of conduct. It has always seemed to me wisest, in +case of decided antagonisms among friends, not to take sides--to +heal by compromise, not to aggravate, etc., etc. I wish _you_ to +feel authorized to speak in pretty decided terms for me whenever +it seems advisable--to do this not by reason of specific authority +to do it, but from your knowledge of my general methods of action. + + "Sincerely, + "R. B. Hayes. +"Hon. John Sherman, etc., etc." + + + "Columbus, O., January 5, 1877. +"My Dear Sir:--I have your note of the 3rd. I do not wish to +influence the action of our friends, and do not volunteer opinions. +But _you_ have a right to my opinion. I believe the Vice President +alone has the constitutional power to count the votes and declare +the result. Everything in the nature of a contest as to electoral +votes is an affair of the states. The rest is a mere ministerial +duty. Therefore it is not right, in my judgment, for Congress to +interfere. + + "Sincerely, + "R. B. Hayes. +"Hon. John Sherman, U. S. S." + + + "Columbus, O., February 15, 1877. +"My Dear Sir:--I have two letters from you since I last wrote. It +if becomes my duty to make a cabinet I want your views fully and +specifically. If possible a personal interview would be extremely +desirable. Boynton writes to Smith that an assurance of my views +on the southern question, which are truly set forth in my letter, +with such additions as I could properly make, would be useful. I +prefer to make no new declarations. But you may say if you deem +it advisable that you _know_ that I will stand by the friendly and +encouraging words of that letter and by all that they imply. You +cannot express that too strongly. + + "Sincerely, + "R. B. Hayes. +"Hon. John Sherman." + + + "Columbus, O., February 16, 1877. +"My Dear Sir:--If the issue of the contest is in our favor I shall +want to see you at once if it is at all practicable. Don't you +want to visit Mansfield? I can meet you there or here--or possibly +at a point east of there. + + "Sincerely, + "R. B. Hayes. +"Hon. John Sherman." + + + "Columbus, O., February 19, 1877. +"My Dear Sir:--The more I think of it the more difficult it seems +for me to get ready to come to Washington before Wednesday or +Thursday of next week. I must fix affairs at Fremont, and cannot +begin it until I know the result. Why can't friends be sent or +come here? + +"It seems to me proper now to say that I am extremely desirous that +you should take the treasury department. Aside from my own personal +preference, there are many and controlling reasons why I should +ask you to do this. It will satisfy friends here in Ohio. I +understand Governor Morton and our friends in Washington like it. +The country will approve it. You are by all odds the best fitted +for it of any man in the nation. Your resignation from the Senate +will be a great loss to that body, but it will cause no serious +dissensions or difficulty in Ohio. Do not say no until I have had +a full conference with you. There is no reason why you should not +visit Ohio as soon as you can be spared from Washington. Of course +the public will know of our meeting. But they will be gratified +to know it. No possible harm can come of it. I should have said +all this before, but I did not want to embarrass you in your action +on the presidential question. + + "Sincerely, + "R. B. Hayes. +"Hon. John Sherman." + + + (Telegram.) + "Columbus, O., February 20, 1877. +"Hon. John Sherman. + +"I will be greatly obliged if you can come to Columbus, but will +meet you at Zanesville if you think it important. + + "R. B. Hayes." + + + "Columbus, O., February 28, 1877. +"Hon. John Sherman, Washington, D. C. + +"Dear Sir:--Governor Hayes will be obliged to you if you will be +kind enough to speak to Mr. Evarts with respect to his acceptance +of the place in the cabinet referred to in the interview with you +last week. It was the governor's intention to make this request +at that time, and he may have done so, but not being quite sure of +the fact, desires me to write you with reference to it. + + "Yours very respectfully, + "W. K. Rogers, Secretary." + + +President Hayes frequently, in personal conversation and in writing, +had expressed a strong desire that I should become the Secretary +of the Treasury. I was disinclined to accept this position, as I +was content to serve my constituents in the Senate. It was not +until after his urgent request in his letter of February 19, 1877, +that I seriously considered his desire that I should accept that +office. I went to Columbus to ascertain the views of the legislature, +and whether there would be any difficulty in selecting a Republican +to my place in the Senate. Having found that there would not be, +I, with reluctance, accepted his offer. Stanley Matthews was +elected on the 21st of March to serve out my unexpired term, which +ended on the 3rd of March, 1879. + +President Hayes arrived at Washington a few days before the 4th of +March and was my guest until he was inaugurated as President. The +4th day of March was on Sunday, and to avoid any questions about +an interregnum, he was sworn into office on that day, but took the +formal oath on the next day, the 5th of March, and made his inaugural +address. He nominated the members of his cabinet to the Senate +and they were promptly confirmed. + +I received many letters of congratulation and encouragement in +assuming the duties of Secretary of the Treasury, two of which I +insert: + + "New York, March 6, 1877. +"My Dear Mr. Secretary:--Allow me to congratulate you on having +been selected by President Hayes to administer the financial affairs +of the nation. + +"I deem it a happy augury that the President's choice of members +of his cabinet has fallen upon men who have made their mark as +statesmen, and whose advent to power will, I feel convinced, +inaugurate an era of prosperity for our country. + +"With yourself at the head of the treasury department, there is no +fear of public credit being shaken and commercial interests imperiled +by crude and experimental legislation. + +"With great respect, I remain, my dear Mr. Sherman, + + "Very truly your friend, + "Cyrus W. Field. +"Hon. John Sherman, Washington." + + + "Consulate General of the United States for Great Britain and + Ireland,} + "London, E. C., March 12, 1877.} +"The Hon. John Sherman, Secretary of the Treasury. + +"My Dear Sir:--When I begin to write to you, I am reminded of what +General Sherman said, in my hearing, to General Grant, after the +latter was made General in Chief: 'I cannot congratulate you; the +responsibility is too great.' You have certainly succeeded to the +most difficult post in the government, one in whose successful +administration Americans abroad feel an especial interest, for no +department is more important to foreigners or more discussed by +them. + +"It may not be unsatisfactory to you to know that Americans--both +those long domiciled here and those in transit--applaud the +appointment of the new Chief of the Treasury. + +"I beg to offer my best wishes and belief that the reputation he +has already achieved in the Senate will be increased in the cabinet; +and to say how glad I was that the unanimity of his late compeers +showed that they were of the same mind. + +"With great respect, I am, my dear sir, + + "Very faithfully yours, + "Adam Badeau." + + +CHAPTER XXIX. +I BEGIN MY DUTIES AS SECRETARY OF THE TREASURY. +Legislative Training of Great Advantage to Me in My New Position-- +Loan Contract in Force When I Took the Portfolio--Appointment of +Charles F. Conant as Funding Agent of the Treasury Department in +London--Redeeming Called Bonds--Sale of Four Per Cent. Bonds Instead +of Four and a Half Per Cents.--Popularity of the New Loan--Great +Saving in Interest--On a Tour of Inspection Along the Northern +Atlantic Coast--Value of Information Received on This Trip--Effect +of the Baltimore and Pittsburg Railroad Strikes in 1877 Upon Our +Public Credit. + +When I assumed the office of Secretary of the Treasury I had the +advantage of some of my predecessors in that I was acquainted with +the organization and duties of the treasury department. Ever since +1859 my connection with the committee of ways and means in the +House and with the committee on Finance in the Senate had brought +me into official relations with the head of that department. This +legislative training gave me a full knowledge of the several laws +that were to be executed in relation to public revenue, to all +forms of taxation, to coinage and currency, and to the public debt. +The entire system of national finance then existing grew out of +the Civil War, and I had participated in the passage of all the +laws relating to this subject. My intimate association with +Secretaries Chase, Fessenden and McCulloch, and my friendly relations +with Secretaries Boutwell and Richardson, led me, as chairman of +the Senate committee on finance, to have free and confidential +intercourse with them as to legislation affecting the treasury. +Secretary Bristow had not had the benefit of experience either in +Congress or the department. He was a good lawyer and an able man. +He doubted whether resumption would be effective without a gradual +retirement of United States notes, a measure that Congress would +not agree to. Congress repealed even the limited retirement of +such notes provided for by the resumption act. Secretary Morrill, +of Maine, my immediate predecessor, was in hearty sympathy with +the policy of Congress, of which he had been a useful Senator, and +but for his failing health would have been an efficient secretary. +Upon my assuming the duties of secretary, and for some time before, +he had been confined by illness to his lodgings in Washington. +The treasury department was then well organized. Most of the +principal officers had been long in the service. But few changes +were made by President Hayes or by myself, and only as vacancies +occurred or as incompetency was demonstrated. The following loan +contract was in force at the beginning of my administration of the +treasury department: + +"This agreement, entered into this 24th day of August, in the year +of our Lord, 1876, between the Secretary of the Treasury of the +United States of America, of the first part, and Messrs. August +Belmont & Co., of New York, in behalf of Messrs. N. M. Rothschild +& Sons, of London, England, and associates, and Messrs. J. & W. +Seligman & Co., of New York, for themselves and associates, and +Messrs. Drexel, Morgan & Co., on behalf of Messrs. J. S. Morgan & +Co., of London, England, and Messrs. Morton, Bliss & Co., of New +York, representing the First National Bank of the city of New York, +the American Exchange National Bank of New York, the Merchants' +National Bank of New York, the Third National Bank of New York, +Messrs. Kuhn, Loeb & Co., of New York, the Bank of New York National +Banking Association, and Messrs. Morton, Rose & Co., of London, +and themselves, of the second part: + +"Witnesseth, That the said Messrs. August Belmont & Co. of New +York, on behalf of Messrs. N. M. Rothschild & Sons and associates, +hereby agrees to purchase from the Secretary of the Treasury sixteen +million five hundred thousand dollars ($16,500,000) of the United +States bonds known as the four and a half per cent. funded loan of +1891, issued under the acts of July 14, 1870, and January 20, 1871; +and that Messrs. J. & W. Seligman & Co., for themselves and their +associates, hereby agree to purchase from the Secretary of the +Treasury six million seven hundred and fifty thousand dollars +($6,750,000) of the bonds hereinbefore described; and that Messrs. +Drexel, Morgan & Co., on behalf of Messrs. J. S. Morgan & Co., of +London, England, hereby agree to purchase from the Secretary of +the Treasury six million seven hundred and fifty thousand dollars +($6,750,000) of the bonds hereinbefore described; and that Messrs. +Morton, Bliss & Co., of New York, representing the First National +Bank of the city of New York, to the extent of four million dollars +($4,000,000); the American Exchange National Bank of New York, to +the extent of one million and fifty thousand dollars ($1,050,000); +the Merchants' National Bank of New York, to the extent of six +hundred thousand dollars ($600,000); the Third National Bank of +the city of New York, to the extent of seven hundred and fifty +thousand dollars ($750,000); Messrs. Kuhn, Loeb & Co., of New York, +to the extent of one million and fifty thousand dollars ($1,050,000); +the Bank of New York National Banking Association, to the extent +of three hundred thousand dollars ($300,000); Messrs. Morton, Rose +& Co., of London, to the extent of one million one hundred and +twenty-five thousand dollars ($1,125,000), and Messrs. Morton, +Bliss & Co., of New York, to the extent of one million one hundred +and twenty-five thousand dollars ($1,125,000), hereby agree, to +the extent severally for each as above stated, to purchase from +the Secretary of the Treasury ten million dollars ($10,000,000) in +the aggregate of the bonds hereinbefore described, making a total +aggregate of forty million dollars ($40,000,000), upon the terms +and conditions following, to-wit: + +"First. Of the said aggregate amount, not less than ten million +dollars ($10,000,000) are hereby subscribed for, the subscription +to take effect on the 1st day of September, 1876, and the remaining +amount, namely, thirty million dollars ($30,000,000), may be divided +at the pleasure of the parties of the second part into several +successive subscriptions of not less than five million dollars +($5,000,000) each, to be made prior to the 4th day of March, 1877. + +"Second. The parties of the second part shall have the exclusive +right to subscribe, in the same proportion to each of the subscribers, +for the remainder, namely, two hundred and sixty million dollars +($260,000,000), or any portion of said loan authorized to be issued +by the acts of Congress aforesaid, by giving notice thereof to the +Secretary of the Treasury on or before the 30th day of June, 1877; +but the party of the first part reserves the right to terminate +this contract at any time after March 4, 1877, by giving ten days' +notice thereof to the parties of the second part. + +"Third. That the Secretary of the Treasury shall, when subscriptions +are made by the said parties of the second part, issue calls with +even date with said subscriptions for the redemption of an equivalent +amount of six per cent. 5-20 bonds of the United States, as provided +by said act of July 14, 1870. + +"Fourth. The parties of the second part agree to pay for said four +and a half per cent. bonds par and interest accrued to the date of +application for delivery of said bonds, in gold coin, matured United +States gold coin coupons, or any of the six per cent. 5-20 bonds +called for redemption, or in United States gold certificates of +deposit issued under the act of March 3, 1863, with the understanding +that payment to the extent of the amount of any call shall be made +within the time during which such call shall mature: _Provided_, +That, if the parties of the second part shall elect so to do, they +may have the privilege of making any of said subscriptions payable +specifically in uncalled six per cent 5-20 bonds of the United +States, in which case the Secretary of the Treasury may, to the +extent of such payments, omit the calls mentioned in condition No. 3. + +"Fifth. The parties of the second part shall receive in coin a +commission of one-half of one per cent. on all bonds taken by them, +as allowed by the act of July 14, 1870, and shall assume and defray +all expenses which may be incurred in sending bonds to London upon +their request, or by transmitting bonds, coupons, or coin from +there to the treasury department at Washington, including all cost +of making exchange of bonds, and shall also be charged with the +preparation and issuing of the bonds. + +"Sixth. No bonds shall be delivered to the parties of the second +part, or either of them, until payment shall have been made in full +therefor in accordance with the terms of this contract. + +"Seventh. During the continuance of this contract any sales of +bonds ordered by the Secretary of the Treasury, by authority of +law, except those that it may become necessary to sell to pay +judgments of the Court of Commissioners of Alabama Claims, shall +be made through the parties of the second part, who shall be allowed +thereon a commission of one per cent. in gold coin. And it is +provided that the amount of bonds so ordered shall not exceed in +the aggregate $25,000,000, unless by mutual agreement of the +parties. + + "Lot M. Morrill, Secretary of the Treasury. + "Aug. Belmont & Co., On behalf of N. M. Rothschild & Sons, London. + "J. & W. Seligman & Co., On behalf of Seligman Brothers. + "Drexel, Morgan & Co., On behalf of J. S. Morgan & Co., of London. + "Morton, Bliss & Co., For themselves and associates, as named + above." + +By its terms the contract provided for the sale of $40,000,000, +four and a half per cent. bonds of the United States at par in gold +coin. The contractors had the exclusive right to subscribe for +all or any portion of the remainder of the four and a half per +cent. bonds, amounting to $260,000,000. The right to terminate +this contract at any time after March 4, 1877, after ten days' +notice, was reserved by the United States. The proceeds of the +bonds sold were to be applied solely to the payment of the six per +cent. 5-20 bonds of the United States. No provision was made in +this contract for the accumulation of coin for the redemption of +United States notes. The process of refunding under it progressed +slowly. + +I felt it to be important that I should have some personal +representative in London, to protect the interests of the United +States in the execution of this contract, and, therefore, on the +31st of March, 1877, I appointed Charles F. Conant, as the funding +agent of the treasury department, and directed him to assume the +general management and supervision of all business in London, +arising from the funding of bonds. A letter of instructions +prescribing his duties was given him. He was directed to pursue +the same general plan under which former negotiations had been +conducted, except as modified by these instructions, which were +based upon the contract before mentioned. All bonds, money, or +coupons received by him were to be securely kept in safes, furnished +by the department for that purpose, to be deposited in the vaults +of the Messrs. Rothschild. Combination locks were provided for +each safe, and no safe could be unlocked except by three persons +on distinct combinations, each person using a combination unknown +to the others. He was to keep me fully advised as to the course +of the market, of the price not only of American securities, but +of foreign securities, and was to receive the new bonds and deliver +them to the Rothschilds in exchange for the bonds redeemed. He +proved to be a very competent and faithful agent, and furnished me +important financial information, which aided me greatly in refunding +operations. His compensation and allowances, as well as those of +all persons sent to London in connection with the refunding of the +public debt, were paid by the syndicate, so that no expense whatever +was incurred by the treasury on this account. + +I gave the following notice to the parties to this contract that +I would, on the part of the United States, terminate it. + + "Treasury Department, } + "Washington, D. C., April 6, 1877.} +"Gentlemen:--I received your friendly cable message of the 10th +ultimo, and return my thanks and hearty good wishes. + +"I am very solicitous to promote the funding of our six per cent. +bonds as rapidly as practicable, and feel indebted to you for the +aid you have given in placing the four and a half per cent. bonds. + +"I propose no change at present; but it is my desire, if practicable, +to withdraw the four and a half per cent. bonds from the market +and substitute in their place the four per cent. bonds authorized +by the funding act. + +"These bonds, as you know, are a very desirable investment, running +thirty years from the date of issue, with every guard and security +that has been given to any bond of the United States, and we think +as safe and desirable as the securities of any other nation. It +is probably the bond into which all the debt of the United States +will in time be converted. I hope you and your associates will be +able to engage with me to place this bond on the market when +$200,000,000 of the four and a half per cent. bonds have been sold. + +"The public policy of the United States to resume specie payments +on or before the 1st of January, 1879, is fully established by the +law and by public opinion. It may be that the surplus revenue will +be sufficient to enable me to carry out this policy without the +sale of bonds. I am authorized by the resumption act to sell five, +four and a half, or four per cent. bonds to prepare for resumption, +and it may be desirable to sell through the syndicate, under that +act, a limited amount of bonds, not exceeding, I hope, $30,000,000 +a year. I do not wish in the execution of this duty to disturb +the exchanges between Europe and this country. For this purpose +I desire to sell only the four per cent. bonds and must sell at +par in coin, but could receive in payment coin coupons maturing +within a limited time. I invite from you and your associates such +suggestions and offers as you may think proper to make for the +purchase of such bonds. + +"The operations of the syndicate have become so important that I +have deemed it proper to ask Mr. Charles F. Conant, late Assistant +Secretary of the Treasury, to take charge of the business in London +in connection with the gentlemen already there. He is well informed +as to our laws, and I trust his services may be of advantage to +the government and agreeable to you. + +"I will give my personal attention to this business, and will +receive with pleasure any suggestions from you that will promote +our common object. + + "Very truly, + "John Sherman, Secretary. +"Messrs. N. M. Rothschild & Sons, London, England." + +I received the following letter: + + "New York, April 12, 1877. +"Hon. John Sherman, Secretary of the Treasury, Washington. + +"My Dear Sir:--I had an interview with Messrs. Drexel, Morgan & +Co., and conveyed to them your wishes respecting limiting the sale +of the four and a half and taking the four per cent. bond in hand +with the co-operation of the Messrs. Rothschild. + +"I told Mr. Drexel that you would be happy to see him and Mr. L. +P. Morton in Washington, whenever convenient for them to go, and +that on receipt by you of favorable advices from Mr. Conant after +his arrival in London, you desired that Drexel, Morton and I should +repair to Washington, in company with other leading members of the +syndicate, with a view of entering into a contract with the +government, in conformity with your views as expressed to me, or +perhaps with some slight modifications, which, if suggested by the +London people, through Mr. Conant, you may deem proper to adopt. + +"I shall see Mr. Morton in the course of this day, and have no +doubt but that he, as well as Drexel and myself, will be happy to +aid you in raising the credit of our common country, and assist +the President and you in this patriotic work. I remain, dear Mr. +secretary, yours, very faithfully. + + "Jos. Seligman." + +A month later I wrote to Mr. Conant as follows: + + "Treasury Department, } + "Washington, May 14, 1877.} +"Dear Mr. Conant:-- . . . On Friday last I concluded a modification +of the present syndicate contract, which provides for the sale of +five million four and a half per cent. bonds at par in coin for +resumption purposes. A further negotiation is pending as to the +renewal and modification of the contract, of which I will give you +due notice when completed. In the meantime I wish to keep steadily +in view the sale of the balance of two hundred million four and a +half per cent. bonds, and, if possible, I wish to make the necessary +calls during this month and next. + +"You can assure Messrs. Rothschild of every disposition on the part +of the government to meet their views, and to extend the contract +with the necessary modifications. Their efforts in maintaining +the credit of the bonds and securing this result will be highly +appreciated. + +"I would like to have you write me at least twice a week as fully +as practicable. + + "Very truly, + "John Sherman. +"Mr. C. F. Conant, London." + +As the process of redeeming called bonds required a notice of ninety +days, I postponed the termination of the existing contract until +after that period. My purpose in terminating the contract was to +substitute for sale the four per cent. bonds of the United States +instead of the four and a half per cent. bonds. I believed that +the advancing credit of the United States would justify this +reduction of the rate of interest. Another reason for this step +was that, in addition to refunding at a lower rate of interest, I +wished to commence preparation for the resumption of specie payments +on January 1, 1879, according to law. This could only be done by +the sale of bonds for gold coin. I reserved the remainder of the +four and a half bonds, amounting to $100,000,000, authorized by +the refunding act, for resumption purposes in case the four per +cent. bonds could not be sold at par in coin. + +Another reason for a change in the existing contract was that it +gave to the syndicate a monopoly in the sale of bonds while I wished +to sell the bonds directly to the people. The new contract was as +follows: + +"This agreement, entered into this 9th day of June, 1877, between +the Secretary of the Treasury of the United States, of the first +part, and Messrs. August Belmont & Co., of New York, on behalf of +Messrs. N. M. Rothschild & Sons, of London, England, and associates +and themselves; Messrs. Drexel, Morgan & Co., of New York, on behalf +of Messrs. J. S. Morgan & Co., of London, and themselves; Messrs. +J. & W. Seligman & Co., of New York, on behalf of Messrs. Seligman +Brothers, of London, and themselves; Messrs. Morton, Bliss & Co., +of New York, on behalf of Messrs. Morton, Rose & Co., of London, +and themselves; and the First National Bank of the city of New York-- + +"Witnesseth: That the said Messrs. August Belmont & Co., on behalf +of Messrs. N. M. Rothschild & Sons, and associates and themselves, +hereby agree to purchase from the Secretary of the Treasury +$10,312,500 of the bonds known as the four per cent. consols of +the United States, issued under the acts of July 14, 1870, January +20, 1871, and January 14, 1875, and that Messrs. Drexel, Morgan & +Co., on behalf of Messrs. J. S. Morgan & Co., and themselves, agree +to purchase $4,062,500 of said bonds, and that Messrs. J. & W. +Seligman & Co., on behalf of Messrs. Seligman Brothers, and +themselves, agree to purchase $4,062,500 of said bonds, and that +the First National Bank of the city of New York agree to purchase +$2,500,000 of said bonds, making a total aggregate of $25,000,000 +of said bonds, on the terms and conditions following: + +"First. Of the said aggregate amount not more than $5,000,000 +shall be sold for resumption purposes, the remaining $20,000,000 +to be sold for funding purposes, and subscribed for by the parties +of the second part during the months of July and August, 1877. + +"Second. The parties of the second part shall have the exclusive +right to subscribe in the same proportion to each of the subscribers, +for the remainder of the four per cent. consols of the United +States, or any portion of said consols authorized to be issued by +the acts of Congress aforesaid, by giving notice thereof to the +Secretary of the Treasury on or before the 30th day of June, 1878; +but the party of the first part reserves the right to terminate +this contract at any time after the 31st day of December, 1877, by +giving ten days' notice thereof to the parties of the second part. + +"Third. That the Secretary of the Treasury shall not sell for +resumption purposes exceeding five millions per month during the +continuance of this contract, except by mutual agreement of the +parties hereto. When subscriptions are made for other than resumption +purposes by the parties of the second part, the party of the first +part shall issue calls of even date with said subscriptions for +the redemption of an equal amount of six per cent. 5-20 bonds of +the United States, as provided for in said act of July 13, 1870. + +"Fourth. The parties of the second part agree to pay for said four +per cent. bonds par and interest accrued to the date of application +for delivery of said bonds in gold coin, matured United States gold +coin coupons, or any of the six per cent. 5-20 bonds called for +redemption, or in United States gold certificates of deposit issued +under the act of March 3, 1863, with the understanding that payment +to the extent of the amount of any call shall be made within the +time during which call shall mature: _Provided_, That if the +parties of the second part shall elect so to do, they may have the +privilege of making any of said subscriptions payable specifically +in uncalled six per cent. 5-20 bonds of the United States, in which +case the Secretary of the Treasury may, to the extent of such +payments, omit the calls mentioned in condition No. 3. + +"Fifth. The parties of the second part shall receive in coin a +commission of one-half of one per cent. on all bonds taken by them, +as allowed by the act of July 14, 1870, and shall assume and defray +all expenses which may be incurred in sending bonds to London or +elsewhere upon their request, or by transmitting bonds, coupons, +or coin to the treasury department at Washington, including all +cost of making the exchange of bonds, and shall also be charged +with the cost of the preparation and issuing of the bonds. + +"Sixth. No bonds shall be delivered to the parties of the second +part, or either of them, until payment shall have been made in full +therefor in accordance with the terms of this contract. + +"Seventh. During the continuance of this contract any sales of +bonds ordered by the Secretary of the Treasury, by authority of +law, shall be made through the parties of the second part, who +shall be allowed thereon a commission similar in amount and subject +to the same deductions as prescribed in the fifth clause of this +contract. + +"Eighth. It is also agreed that the parties of the second part +shall offer to the people of the United States, at par and accrued +interest in coin, the four per cent. registered consols and four +per cent. coupon consols of the denominations of fifty dollars and +one hundred dollars, embraced in this contract, for a period of +thirty days from the public notice of such subscriptions, and in +such cities and upon such notice as the Secretary of the Treasury +may prescribe prior to the opening of the lists, and further, to +offer to the subscribers the option of paying in installments, +extending through three months. + + "John Sherman, Secretary of the Treasury. + "August Belmont & Co., On behalf of N. M. Rothschild & Sons, of + London, And associates and themselves. + "Drexel, Morgan & Co., On behalf of J. S. Morgan & Co., of London, + And themselves. + "J. & W. Seligman & Co., On behalf of Seligman Brothers and + themselves. + "Morton, Bliss & Co., On behalf of Morton, Rose & Co., of London, + And themselves. + "The First National Bank of the city of New York, by H. C. + Fahnestock. +"Witnesses as to all: + + "R. C. McCormick. + "E. J. Babcock." + +By this contract the syndicate was to take $25,000,000 of the four +per cent. bonds at par, or in exchange of six per cent 5-20 bonds. +Of this sum $5,000,000 in gold coin was to be paid to the treasury +for resumption purposes. The eighth section was a new provision, +and required the syndicate to offer to the people of the United +States, at par and accrued interest in coin, the four per cent. +bonds, for a period of thirty days, in such cities and upon such +notice as the Secretary of the Treasury might prescribe. + +The result of this contract was not only to save one-half of one +per cent. on the annual interest of the bonds redeemed, but to so +popularize the loan that within a brief period I was able to +terminate the contract according to its terms, and to sell the four +per cent. bonds directly to the people at par, without a commission, +or the aid of a syndicate. + +I wrote to Mr. Conant as follows: + + "Treasury Department, } + "Washington, May 31, 1877.} +"Dear Mr. Conant:--Your letter of the 19th is received. Since its +date matters here have changed greatly for the better, and I have +made two calls for ten millions each. + +"There is a strong, steady demand for our bonds, and I have now no +fear but the two hundred millions four and a halfs will be exhausted +before the 1st of July, when they will be withdrawn. The prospect +of placing the four per cent. bonds, commencing July 1, is very +good. I have submitted to the syndicate a proposition in substance +requiring them to take twenty-five millions four per cents., during +July and August, of which five millions will be for resumption +purposes, with a stipulation that if they take fifty millions +additional in September and October the contract will be extended +to January 1, 1878, five millions a month to be applied for resumption +purposes. I do not propose to vary essentially from the proposition. +I have another offer almost as good from other parties, but I hope +to combine these two offers into a modified syndicate, and, if +possible, reserve the right to sell bonds at par, in coin or 5-20 +bonds, to persons who apply directly to me for exchange, giving, +however, the syndicate the half per cent. commission. We will +considerably reduce the cost of the bonds, I think, to one-tenth +of one per cent., so that the contracting parties will have a +reasonably fair commission. I am already assured of many sales of +the bonds whenever offered, without the aid of the syndicate, so +that I consider myself strong enough to undertake the placing the +bonds even without their aid, if they will not agree to reasonable +terms. If I can secure the active, hearty co-operation of all the +parties who wish to engage in selling the bonds, and they will be +content with a reasonable profit, the operation of funding can go +on so rapidly that they ought to be satisfied with the profit they +will make. + +"I have not overlooked the possibility that some movement of coin +will be made to meet called bonds in Europe in excess of bonds sold +there, but hope to perfect arrangements by which I will secure +American bullion to meet this demand, without stopping accumulations +of coin in the treasury. + +"The prospects here are favorable for a good crop in all the states +of the Mississippi valley, but there will probably be a bad crop +in California. + +"What we must do is push the loan so that it will be an established +success before the meeting of Congress. If you can succeed in +inspiring the Rothschilds to aid this purpose I am sure of success. +My proposition has been sent to them, and I was advised would be +answered by telegram about this time; but by the 15th I hope to +have the arrangements completed. + +"If upon receipt of this letter there is anything of striking +interest affecting the loan you may cable me. + +"All well in the department. Matters are going along quietly and +steadily. + + "Very truly yours, + "John Sherman. +"Hon. Chas. F. Conant, London." + +This letter he received about the time the new contract was executed. +I subsequently sent him the following cable telegram: + + "Washington, June 9, 1877. +"Conant, London: + +"Contract of August 24, 1876, closed new four and a half per cent. +bonds of $200,000,000. New contract twenty-five millions four per +cent. bonds taken firm. Particulars by mail. + + "Sherman." + +Two days later I received a reply, as follows: + + "London, June 11, 1877. +"Sherman, Washington: + +"Congratulations. Rothschilds request me to say that it is important +for this market that the public subscriptions in America for four +per cents. should be a success, and this will make the market for +London. N. M. Rothschild & Sons hope Secretary of the Treasury +will advise that banks subscribe immediately. J. S. Morgan & Co., +N. M. Rothschild & Sons, think subscription should be opened soon, +in view of preparing London market. + + "Conant." + +This new agreement gave at once a great impetus to the new loan in +all parts of the United States, as well as in London. The following +letters received indicate this: + + "Merchants' National Bank, } + "Cleveland, O., June 11, 1877.} +"Hon. John Sherman, Secretary Treasury United States. + +"Dear Sir:--We learn that you propose to offer the public a certain +portion of the new four per cent. loan for a limited time, the +amount subscribed to be paid in gold at the par value of the bonds. + +"This bank, being a public depositary of the government of the +United States, shall be glad to further your plans, and act as +agent for the sale of such portion of the loan as you may suggest, +and endeavor to give it such publicity as would secure the sale of +a portion of these bonds in this part of Ohio. + +"Wishing you success in the effort, I remain, very respectfully +and truly, + + "T. P. Handy, President. + + + "Treasury Department, June 12, 1877. +"John P. Hunt, Esq., Philadelphia, Pa. + +"Sir:--Your note is received. The department will be happy to +receive your subscription in a short time. The bonds are not +prepared, and the treasury regulations for the popular subscription +cannot be issued for a few days, when a copy will be sent you. + +"It is the purpose to give you, and all other citizens of the United +States, an opportunity to subscribe at some convenient place in +the city of your residence, to be designated in due time, requiring +only a small deposit at the time of subscription, and allowing the +privilege of paying at any time within ninety days thereafter. + +"The bonds will bear date the 1st of July, and will be sold at par +in coin and accruing interest to date of payment. + + "Very respectfully, + "John Sherman, Secretary." + +Contemporaneous with this contract for selling the four per cent. +bonds for gold coin, there appeared in the New York "Times" a +suggestion that these bonds could be paid in silver. Henry F. +French, Assistant Secretary of the Treasury, in a published letter +of the date of June 11, asserted his opinion that the bonds issued +under the act of July 14, 1870, for refunding, were redeemable in +coin of the standard value at that date, and that "as it cannot be +known what bonds have been transferred since the act of 1873, all +bonds under the act of 1870 must be paid in gold coin of the standard +value named in the act of 1873." + +I received a letter from Messrs. Seligman & Co., inclosing an +extract from the New York "Times," as follows: + + "New York, June 12, 1877. +"Hon. John Sherman, Secretary of the Treasury, Washington. + +"Dear Mr. Secretary:--We beg to inclose a short editorial article +which appeared in to-day's New York 'Times,' which, coming from a +Republican paper, may frighten investors in our country and abroad. +Intelligent people know that you, sir, as well as President Hayes, +are sound on the silver question, and yet it may appear to you +proper, and highly advantageous to the prompt marketing of the four +per cent. bonds, to disabuse those who have been led to believe +that the President and you favor the remonetizing of silver, with +a view of paying our national debt in a metal so fluctuating as +silver has become since the principal nations of Europe have +demonetized it. We remain, dear Mr. secretary, your obedient +servants, + + "J. & W. Seligman & Co." + +The article in the New York "Times," of June 12, 1877, said: + +"In a dispatch received by the Secretary of the Treasury yesterday +from Mr. Conant, the syndicate agent in London, it was stated that +the contract touching the four per cent. bonds is well received in +London, and the new bond bids fair to be the most popular of American +securities. There is no doubt that the bond has many advantages +both for home and foreign investors. It has only one point of +weakness, and that is, if the silver ring should succeed in getting +an unlimited issue of legal tender silver dollars, this bond would +be payable, principal and interest, in that coin. Shrewd men, who +know what silver has done and is liable to do in the way of ups +and downs, will take this fact into consideration, and the government +will ultimately be compelled to do the same. At present the strength +of the silver movement is estimated to be small, but if this estimate +should prove to be mistaken, the new four per cents. would suffer." + +Mr. August Belmont wrote me a letter upon this subject of the date +of June 14th, in which he said: + +"Permit me to add a few words to the letter of my house of this +day, in order to urge upon you the _vital_ importance of an official +expression of yours _over you own signature_, in the sense of the +letter of Assistant Secretary French, published in this morning's +papers. + +* * * * * + +"You are placed at this moment, by a large portion of your political +friends, in a somewhat similar position as the late Mr. Chase was +by the attempt of Thad. Stevens to have Congress pass a law to +declare the principal of the 5-20 bonds payable in currency. + +"Mr. Chase took the bull by the horns by declaring, over his own +signature, that the principal as well as the interest of the 5-20 +bonds were payable in gold, the faith of the United States being +pledged to this by the tacit understanding of the government and +its creditors. + +"Nothing has reflected more credit and renown upon that great +statesman--then as prominent and favored a son of the noble State +of Ohio as you are to-day--and nothing more effectually paved the +way to the great work of reducing the burden of our people by +lowering our interest one-third than that expression, sanctioned +and confirmed by subsequent enactment of Congress in 1869. + +* * * * * + +"You will, in my opinion, insure the success of your financial +measures, and add greatly to your high and prominent political +position, if you will unequivocally declare that the funded debt +of the government can only be redeemed, principal and interest, in +gold coin, and that until otherwise agreed upon by the mutual +consent of the great commercial nations of the United States, +England, France, and Germany, the silver dollar can only be accepted +as an auxiliary standard for the payment of fractional indebtedness." + +To this I replied as follows: + + "Treasury Department, } + "Washington, June 16, 1877.} +"Dear Sir:--Your private note, the letter of your firm, and one +from Messrs. Seligman & Co., asking me to make a public statement +over my own signature, similar to that of Mr. French, are received. +I have given to this important suggestion the most serious +consideration, and have come to the firm conclusion that such an +act on my part would be inexpedient, and defeat the very object +you have in view. As a purely executive officer, I have no power +to pass upon the question mooted. My attempt to do so would at +once unite all those who are seized with this mania, and those who +oppose executive encroachment upon legislative power. It would +create excitement, personal and political animosities would mingle +with it, and it would tend more than anything else to defeat the +success of the law. I am quite sure this would be the result. + +"As to whether Congress or the people would ever undertake to pay +either principal or interest of the bonded debt, and especially +the bonds sold since 1873, in silver, I have a firm conviction that +the question will never seriously be raised. These bonds will be +paid, principal and interest, in gold coin. The people of the +United States have always been extremely sensitive as to the public +credit. They never have, for the sake of an apparent profit, +yielded any question involving the public honor. + +"The great satisfaction that will arise from the funding of the +loan at a low rate of interest, together with their strong sense +of public honor and public faith, will always secure the payment +of these bonds, principal and interest, in coin. + +"Parties or factions may, for a time, raise and contest questions, +but they are but bubbles, and will pass away, and, like all other +questions involving the public credit, will be rightfully settled, +in due time, by Congress and the people. + +"Nothing would so tend to disturb this result as unauthorized +'theses,' or dogmas, by an executive officer, upon a question purely +legislative or judicial. Indeed, it may be that too much has +already been said about this matter by both the President and +myself, and I assure you that you will have no occasion to be +disturbed by anything truthfully reported of either of us hereafter. +The better way is to move right along, making your own statements, +and if, at any time, I see a proper occasion for a strong expression +of my opinion, I will give it. + +"Please show this to Mr. Seligman, and such of your associates as +you deem proper, as an answer to all. + + "Very truly yours, + "John Sherman. +"Hon. August Belmont, New York." + +The new loan was promptly placed on the market on the 14th of June +by the following circular letter signed by the members of the +syndicate: + +"Under the authority of a contract with the Secretary of the +Treasury, the undersigned hereby give notice that from this date +until July 16, at 3 p. m., they will receive subscriptions for the +four per cent. funded loan of the United States in denominations +as stated below, at par and accrued interest in gold coin. + +"The bonds are redeemable after thirty years from July 1, 1877, +and carry interest from that date, payable quarterly, and are exempt +from the payment of taxes or duties to the United States, as well +as from taxation in any form, by or under state, municipal, or +local authority. + +"The interest on the registered stock will be paid by check, issued +by the treasurer of the United States to the order of the holder, +and mailed to his address. The check is payable on presentation, +properly indorsed, at the offices of the treasurer and assistant +treasurers of the United States. + +"The subscriptions will be for coupon bonds of $50 and $100, and +registered stock in denominations of $50, $100, $500, $1,000, +$5,000, and $10,000. + +"The bonds, both coupon and registered, will be ready for delivery +July 2, 1877. + +"Forms of application will be furnished by the treasurer at +Washington, the assistant treasurers at Baltimore, Boston, Chicago, +Cincinnati, New Orleans, New York, Philadelphia, St. Louis, and +San Francisco, and by the national banks and bankers generally. +The applications must specify the amount and denominations required, +and for registered stock the full name and post office address of +the person to whom the bonds shall be made payable. + +"Two per cent. of the purchase money must accompany the subscription. +The remainder may be paid, at the pleasure of the purchaser, either +at the time of the subscription or at any time prior to October +16, 1877, with interest added at four per cent. to date of payment. + +"The payments may be made in gold coin to the treasurer of the +United States at Washington, or assistant treasurers at Baltimore, +Boston, Chicago, Cincinnati, New Orleans, and St. Louis, and to +the assistant treasurer at San Francisco, with exchange on New +York, or to either of the undersigned. + +"To promote the convenience of subscribers, the undersigned will +also receive, in lieu of coin, United States notes or drafts on +New York, at their coin value on the day of receipt in the city of +New York. + + "August Belmont & Co., New York. + "Drexel, Morgan & Co., New York. + "J. & W. Seligman & Co., New York. + "Morton, Bliss & Co., New York. + "First National Bank, New York. + "Drexel & Co., Philadelphia. +"June 16, 1877." + +A few days later I wrote the following letter: + + "Treasury Department, } + "Washington, D. C., June 19, 1877.} +"Sir:--Your letter of the 18th instant, in which you inquire whether +the four per cent. bonds now being sold by the government are +payable, principal and interest, in gold coin, is received. The +subject, from its great importance, has demanded and received +careful consideration. + +"Under laws now in force, there is no coin issued or issuable in +which the principal of the four per cent. bonds is redeemable, or +the interest payable, except the gold coins of the United States +of the standard value fixed by laws in force on the 14th of July, +1870, when the bonds were authorized. + +"The government exacts, in exchange for these bonds, payment at +par in such gold coin, and it is not to be anticipated that any +future legislation of Congress, or any action of any department of +the government, would sanction or tolerate the redemption of the +principal of these bonds, or the payment of the interest thereon, +in coin, of less value than the coin authorized by law at the time +of the issue of the bonds, being the coin exacted by the government +in exchange for the same. + +"The essential element of _good faith_, in preserving the equality +in value between the coinage in which the government receives and +that in which it pays these bonds, will be sacredly observed by +the government and the people of the United States, whatever may +be the system of coinage which the general policy of the nation +may at any time adopt. + +"This principle is impressed upon the text of the law of July 14, +1870, under which the four per cent. bonds are issued, and requires, +in the opinion of the executive department of the government, the +redemption of these bonds and the payment of their interest in coin +of equal value with that which the government receives from its +issue. + + "Very respectfully, + "John Sherman, Secretary. +"Francis O. French, Esq., 94 Broadway, New York." + +The subscriptions were taken in every part of the United States, +and within thirty days $67,600,000 were taken in this country and +$10,200,000 in Europe, making $77,800,000 sold. This sum, when +applied to the payment of the six per cent. bonds, made an annual +saving to the people of the United States of $1,556,000. Since +the 1st of March, 1877, there had been sold under the refunding +act $135,000,000 four and a half per cent. bonds and that amount +of six per cent. bonds was paid off and canceled, thus saving to +the people of the United States $2,025,000 in coin each year. The +aggregate reduction of interest by both classes of bonds from the +1st of March to the close of the popular loan, was $3,581,000 a +year in coin. This was regarded as a great success. + +Early in July I set out on the revenue cutter "U. S. Grant" on a +visit of inspection along the north Atlantic coast, accompanied by +the chief of the coast survey, the secretary of the lighthouse +board, the superintendent of the life-saving service, and the chief +of the revenue marine service, and also by Webb Hayes, the son of +the President. We visited the life-saving stations along the New +Jersey coast. I was deeply interested in this service, which I +regard as the most deserving humanitarian branch of the public +service. We also visited some of the leading lighthouses along +the coast and the principal customhouses between the Chesapeake +Bay and Eastport, Maine. We were everywhere received with great +kindness and many social courtesies were extended to us, especially +in New York, Boston and Portland. This outing was a great relief +from the close confinement I had undergone since the 4th of March. +The information I gathered as to these branches of the service, +with which I had not previously had much acquaintance, was of great +value to me. Such trips are sometimes treated by the press as +"junketing" at the public expense. This is a great error. Each +of us paid his share of the expenses and the vessel only pursued +its usual course of duty. I was brought into close association +with these subordinate officers of the department and became informed +of their duties, and their fitness for them, and was enabled to +act with intelligence on their recommendations. + +The only unpleasant incident that occurred on the trip was the +running of the cutter upon a rock upon the coast of Maine. This +happened in the afternoon of a beautiful day. All the gentlemen +with me and the officers of the vessel were on deck. The various +buoys were being pointed out and a map of the channel was lying +before us. Some mention was made of a buoy that ought to be near +the place where we were to mark the location of a rock, but none +was found, and suddenly we heard the scraping of the vessel upon +the rock. The cutter trembled and careened over. The captain was +somewhat alarmed and turned the vessel toward the beach, where it +was speedily examined and found to be somewhat injured. We +ascertained afterwards that the buoy had been displaced by a storm +and that a vessel was then on its way to replace it. The sinking +of the revenue cutter "U. S. Grant" was reported in the morning +dispatches and created some excitement; but the vessel did not +sustain any substantial injury. We thought it best to leave it +for a time to be thoroughly examined and repaired and took another +vessel to complete our journey to Eastport, the northeastern port +of the United States. From thence Webb Hayes and myself returned +to Portland and crossed over the Burlington, Vermont, on Lake +Champlain, and from thence went to Saratoga, where we remained a +few days, and then returned to Washington on the 22nd of July. We +passed through Baltimore on the day the riots occurred in that +city, and soon after heard of the much more dangerous outbreak in +Pittsburg. + +On the 6th of August I wrote to Mr. Conant as follows: + +"Your letter of the 26th ultimo is received. You can safely say +to the Messrs. Rothschild that the strikes have been totally +disconnected with the government, but grow purely out of a contract +between the managers of the leading lines of railway and their +employees as to rates of pay. + +"The railroad companies have, for several years, competed with each +other in a very improvident and reckless way, and are now, and have +been for some time, carrying freight for less than cost. This has +caused a large reduction of the net income of roads, has led to +the loss of dividends, and now to the reduction of wages of employees +to rates scarcely sufficient to support life. Hence the strikes. + +"The government has been appealed to by both railroads and strikers, +by states and by cities, for relief, and has promptly extended it +in every proper case, and, without shedding blood, has, in every +case, suppressed the riot, and maintained the peace, so that the +government is really stronger by reason of these unfortunate events +than before. I do not observe that any change has been made by +them, either in the price of bonds or in the price of gold, nor in +the payment of subscriptions to four per cent. bonds. + +"No effort is made to sell the bonds now, nor do I care to press +the home market, until enough bonds are sold abroad to provide for +called bonds abroad. + +"The month of August must necessarily be a languid one, and I do +not advise any unusual efforts to force sales. + +"Your supplemental cipher was received after your telegram, but +was soon found and dispatch made out." + +I no doubt was mistaken in the effect of the strikes upon our public +credit. From that time forward for many months there was scarcely +any sale of government bonds at any price. The contracting parties +informed me that no bonds were then selling in the market and that +in New York they were a trifle below par. Practically, for the +remainder of the year, government securities were greatly affected +in price and value. + + +CHAPTER XXX. +POLICY OF THE HAYES ADMINISTRATION. +Reception at my Home in Mansfield--Given by Friends Irrespective +of Party--Introduced by My Old Friend and Partner, Henry C. Hedges +--I Reply by Giving a Résumé of the Contests in South Carolina and +Louisiana to Decide Who Was Governor--Positions Taken by Presidents +Grant and Hayes in These Contests--My Plans to Secure the Resumption +of Specie Payments--Effects of a Depreciated Currency--Duties of +the Secretary of the Treasury--Two Modes of Resuming--My Mansfield +Speech Printed Throughout the Country and in England--Letters to +Stanley Matthews and General Robinson--Our Defeat in Ohio--An Extra +Session of Congress--Bills Introduced to Repeal the Act Providing +for the Resumption of Specie Payments--They All Fail of Passage-- +Popular Subscription of Bonds All Paid For. + +About the 10th of August I made my usual visit to my home at +Mansfield. Soon after my arrival I received the following invitation, +signed by a great number of my neighbors and friends, without +respect to party, expressing a desire to tender me a reception: + +"Hon. John Sherman. + +"Dear Sir:--The undersigned, your townsmen, and fellow-citizens of +Richland county, desire to give you some manifestation of the very +high regard in which we hold your public services. We are glad to +know that you are permitted to again be at your own home, and for +a week or two mingle with us in all the unrestrained freedom of +friends and townsmen. + +"Financial and other public questions are, however, of importance +to us always, and especially now. We recognize your great ability +and long experience, and cannot but think that an expression of +your views on these questions will be very highly prized by the +people of Ohio, irrespective of party. We therefore desire, with +your sanction, on some day during the next week, to give you a +hearty welcome to your old home, and shall be glad to have you, on +the occasion, give your views on the public questions, now of such +vast importance to all. With our kindest regards, we are, + + "Your friends, etc., etc." + +I replied as follows: + + "Mansfield, O., August 13, 1877. +"Gentlemen:--I received with much pleasure your kindly letter of +the 10th inst., signed by so many of my old friends and neighbors +of Mansfield, and assure you of my high appreciation of your generous +words of courtesy and regard. + +"I always return with satisfaction to my home on the western slope +of our little city, and always enjoy the fresh air and picturesque +country around us, but, more than all, the cordial greetings of +old friends, with whom I have been acquainted since boyhood. It +will give me much pleasure, at any time or place, to meet you, and +to speak to you on current public questions, and I venture to name +next Friday evening. + + "Very truly yours, + "John Sherman." + +The gathering was one of the largest that had come together in +Mansfield for years. The evening was delightful, cool and balmy, +a bright moonlight adding attraction to the scene. A stand decorated +with flags had been erected near the center of the park, with seats +in front, and lights gleamed on either hand. I was introduced to +the audience by my old friend and partner, Henry C. Hedges, whose +remarks were too flattering for me to insert. In closing he said: + +"Regarding you as our friend, our neighbor, our townsman, we are +glad and rejoice. We welcome you home, though your stay may be +only a few days, and we sincerely trust that, rested by your stay, +you may go back to your work reinvigorated, and that frequently we +may have the pleasure of your temporary visits, and in the future, +when your labors are finished, among us you may spend your old age, +honored and happy." + +As my speech expressed my views upon important questions of that +time, I think it well to embody extracts from it as part of the +history of the then recent events, and my anticipations for the +future: + +"The kindly words of welcome uttered by my friend and associate of +many years move me beyond expression. They recall to me the scene +of the early time when I came to Mansfield, then a scattered hamlet +of about 1,100 inhabitants, without pavements and without any of +the modern conveniences of cities and towns. As Mr. Hedges has +told you, very many of those I then met here are dead and gone. +I was a boy then. A generation has passed away, and the sons of +those I met then as citizens of Richland county now fill places of +trust and responsibility. I have every reason in the world for +being strongly attached to this town of Mansfield. You have always +been kind to me. Here I studied law, here I practiced my profession +for several years, here I married my wife, a native of your town, +here I have lived ever since, and when this mortal coil shall be +shuffled off, here, probably, will my body rest with your fathers. +But pardon me, fellow-citizens, if, under the kinds words of welcome +of your spokesman, my old and honored friends, Mr. Hedges, I had +forgotten that we are not here merely to exchange courtesies, but +to discuss grave matters of far more importance than the life or +memories of an individual. + +"In doing so I wish it distinctly understood that I speak for myself +alone, as a citizen of Ohio, to you my fellow-citizens and my +neighbors, to whom I am under the highest obligations of gratitude +and duty. + +"The President authorized me to say one thing, and one thing only, +for him, and in his name, and that is that all reports that impute +to him any participation whatever in the nomination of candidates +on your state ticket, or any desire or purpose to influence in any +way the senatorial contest in Ohio, are utterly groundless. + +"These are your matters, and I can assure you for him, that he does +not and will not, interpose in any such contest between political +friends. + +"You all know that I am now, and have been, warmly attached to the +Republican party. I believe in its principles and honor its work. +With my strong convictions I could not conceal my partisan bias, +or my earnest hope for the success of the Republican party, but +the subjects of which I intend to speak to you to-night will not +lead me to say much of former political struggles, or to fight our +old battles over again, but chiefly to discuss the actual administrative +questions of the day as they have arisen since the 4th of March +last, and in all of which you are alike interested, whether you +may call yourselves Republicans or Democrats. As to those questions +I wish fairly to appeal to the candor and good judgment of honest +men of both parties, only asking for the administration of President +Hayes that considerate charity of judgment which must be extended +to all human agents. + +"When Mr. Hayes was inaugurated as President he found thirty-six +states in the full and uncontested exercise of all the powers of +states in the Union. In two states only there were contests as to +who was governor. Both contests had existed from January to March, +1877, while General Grant was President. + +"In South Carolina Governor Chamberlain claimed to have been elected +on the Republican ticket, and General Hampton on the Democratic +ticket. The President is not made the judge of who is elected +governor of a state, and an attempt to exercise such a power would +be a plain act of usurpation. The constitution of South Carolina +is much like that of Ohio. The count of the vote was to be made +by the general assembly of the state. Unfortunately for Chamberlain +a controlling question in the contest had been decided against him +by a Republican court, and he was only kept in possession of the +state house by the actual presence of United States troops in the +building. He had appealed again and again to President Grant to +recognize him as governor and give him the aid of Federal troops +in the enforcement of his claim, which General Grant had refused, +seeking only to preserve the public peace. + +"When President Hayes was inaugurated both contestants were called +to Washington and both were patiently heard and the questions +presented were patiently and carefully examined. The President +held that a case was not presented in which, under the constitution +and the laws, he was justified in using the army of the United +States in deciding a purely local election contest. The soldiers +and bayonets of the United States were then withdrawn from the +state house--not from the state, nor the capital of the state--but +from the building in which the legislature, that alone could lawfully +decide this contest, must meet. This was all that was done by the +President, and Governor Chamberlain, without further contesting +his claim, abandoned it and left the state. + +"I say to you now that, strongly as I desired the success of Governor +Chamberlain and the Republican party in South Carolina, the President +had not a shadow of right to interpose the power of the army in +this contest, and his attempt to do so would have been rash and +abortive as well as without legal right. + +"The case of Louisiana was far more difficult. The local returning +officers of that state had, after a full examination, certified to +the election of the legislature, showing a Republican majority in +both houses. This had been done by excluding from their return +the votes of certain parishes and counties wherein intimidation, +violence and fraud had prevailed to an extent sufficient to change +the result of the election. I was present, at the request of +General Grant, to witness the count, and I assure you, as I have +said officially, that the proof of this intimidation, violence and +fraud, extending to murder, cruelty, and outrage in every form, +was absolutely conclusive, showing a degree of violence in some of +those parishes that was more revolting and barbarous than anything +I could conceive of. It was plain that the returning officers had +the legal right to pass upon and certify, in the first instance, +who were elected members of the legislature, and that they were +justified by the evidence in excluding bulldozed parishes, but it +was equally clear that their return was not conclusive upon the +members elected, and that each house had the constitutional right +to pass upon the returns and elections of its members, and to set +aside the action of the returning board. The two houses, when +organized, had also the power to pass upon the returns of the +election of governor, and they alone and no one else. Neither the +President of the United States nor the returning board has any +power or right to pass upon the election of governor. And here +the difficulty in the Louisiana case commences. + +"Governor Packard contends that a majority of the two houses, as +duly returned, did pass upon the election of the governor, and did +return that he was duly elected, but this was stoutly denied by +Governor Nichols. This vital point was strongly asserted and denied +by the adverse parties, and the legislature of Louisiana divided +into two hostile bodies, holding separate session, each asserting +its legal power, and denouncing the other as rebels and traitors. +Governor Packard and his legislature called upon President Grant +for the aid of the army to put down insurrection and domestic +violence; and here I confess that if I had been President, instead +of General Grant, I would have recognized Packard and sustained +him with the full power of the general government. My intense +feeling, caused by the atrocities in Louisiana, may have unduly +influenced me. But General Grant did not think this was his duty. +I do not criticise his action, but only state the facts, He would +only maintain the peace. He would not recognize Packard as governor, +but I know, what is now an open secret, the strong bent of his +mind, and at one time his decision was to withdraw the troops, to +recognize Nichols and thus end this dangerous contest. He did not +do this, but kept the peace. + +"But during these two months the whole condition of affairs had +slowly changed in Louisiana. The government of Packard had dwindled +away until it had scarcely a shadow of strength or authority, except +at the state house, where it was upheld by federal bayonets. The +government of Nichols had extended its authority over the state +and was in full existence as the _de facto_ government of Louisiana, +supported by the great body of the white men and nearly all the +wealth and intelligence of the state, and by the tired acquiescence +of a large portion of the colored people, some of whom deserted +Packard's legislature and entered that of Governor Nichols. The +delay and hesitation of General Grant had been fatal to Packard, +and when Hayes became President the practical question was greatly +changed. One thing was clear, that a legislature had been duly +elected in November previous, and was then in existence, though +separated into two parts. If the members lawfully elected could +be convened, they alone could decide the question of who was +governor, without the intervention of troops, and their decision +could be supported, if necessary, by the general government. + +"The most anxious consideration was given to this question. Days +and weeks of anxious deliberation were given to it by the President +and his cabinet. But one way seemed open for a peaceful solution, +and that was to gather, if possible, a single legislature that +could be recognized as the depositary of the representative will +of the people of Louisiana. If this could be done it had the +unquestioned right to decide who had been elected governor, and +all other questions would settle themselves. To aid in this object, +a commission of the most eminent men, high in position, from +different states, and distinguished for judicial impartiality, was +selected and the result is known to all. They went to Louisiana, +and, with great difficulty, brought together these hostile legislatures +which met, organized, promptly settled the question in dispute in +favor of the government of Nichols, and thus ended this most +dangerous controversy. No other change was made, no other act done +except, when the solution was almost accomplished, the few troops +which had then occupied that state house were withdrawn a few +squares away, to their barracks. Thus, in this peaceful appeal to +the legislature of Louisiana, this controversy, which not only +endangered the peace and safety of this state, but the peace and +safety of the whole people of the United States, was settled. This +is the sum and substance of all that was done in the southern +policy, as it is called, of the President. + +"Perhaps I ought to state that his policy has a broader motive than +a mere settlement of a local election contest. It seeks to bring +the north and south again into conditions of harmony and fraternity, +and, by a frank appeal to the generous impulses and patriotic +feeling of all classes of people in the south, to secure, not only +peace among themselves, but the equal protection of the laws to +all, and security in the enjoyment of political and civil rights. + +"No doubt the result in Louisiana caused some disappointment to +many Republicans throughout the United States, who deeply sympathized +with their Republican brethren in that state. In that feeling I +did, and do, share, and yet I feel and know that every step taken +by President Hayes was right, in strict accordance with his +constitutional duty, and from the highest motives of patriotism. +Some are foolish enough to talk of his abandoning the colored people +and their constitutional rights. President Hayes, from his early +manhood, has been an anti-slavery man; his life was imperiled on +many battlefields in the great cause of liberty, he sympathizes +more and will do more for the equal rights of the colored people +than those who falsely accuse him, and I believe this day, that +the policy he has adopted will do more to secure the full practical +enforcement of those rights than the employment of an army tenfold +greater than the army of the United States." + +In this speech I stated the action I proposed to take to secure +the resumption of specie payments. The plan was executed in all +its parts by me, and my remarks may, in one sense, be said to be +a history of resumption. Continuing I said: + +"And now, fellow-citizens, this brings me to the question upon +which there is so much diversity of opinion, so many strange +delusions, and that is the question of specie payments. What do +we mean by this phrase? Is it, that we are to have no paper money +in circulation? If so, I am as much opposed to it as any of you. +Is it that we are to retire our greenback circulation? If so, I +am opposed to it and have often so said. What I mean by specie +payments is simply that paper money ought to be made equal to coin, +so that when you receive it, it will buy as much beef, corn or +clothing as coin. + +"Now the importance of this cannot be overestimated. A depreciated +paper money cheats and robs every man who receives it, of a portion +of the reward of his labor or production, and, in all times, it +has been treated by statesmen as one of the greatest evils that +can befall a people. There are times when such money is unavoidable, +as during war or great public calamity, but it has always been the +anxious care of statesmen to return again to the solid standard of +coin. Therefore it is that specie payments, or a specie standard, +is pressed by the great body of intelligent men who study these +questions, as an indispensable prerequisite for steady business +and good times. + +"Now, most of you will agree to all this, and will only differ as +to the mode, or time, and manner; but there is a large class of +people who believe that paper can be, and ought to be, made into +money without any promise or hope of redemption; that a note should +be printed: 'This is a dollar,' and be made a legal tender. + +"I regard this as a mild form of lunacy, and have no disposition +to debate with men who indulge in such delusions, which have +prevailed to some extent, at different times, in all countries, +but whose life has been brief, and which have ever shared the fate +of other popular delusions. Congress will never entertain such a +proposition, and, if it should, we know that the scheme would not +stand a moment before the Supreme Court. That court only maintained +the constitutionality of the legal tender promise to pay a dollar +by a divided court, and on the ground that it was issued during +the war, as in the nature of a forced loan, to be redeemed upon +the payment of a real dollar; that is, so many grains of silver or +gold. + +"I therefore dismiss such wild theories, and speak only to those +who are willing to assume, as an axiom, that gold and silver, or +coined money, have been proven by all human experience to be the +best possible standards of value, and that paper money is simply +a promise to pay such coined money, and should be made and kept +equal to coined money, by being convertible on demand. + +"Now, the question is as to the time and mode by which this may be +brought about, and on this subject no man should be dogmatic, or +stand, without yielding, upon a plan of his own, but should be +willing to give and take, securing the best expedient that public +opinion will allow to be adopted. The purpose and obligation to +bring our paper money to the standard of coin have been over and +over again announced by acts of Congress, and by the platforms of +the great political parties of the country. If resolutions and +promises would bring about specie payments, we would have been +there long ago; but the diversity of opinion as to the mode now-- +twelve years after the close of the war--still leaves our paper +money at a discount of five per cent. Until this is removed, there +will be no new enterprises involving great sums, no active industries, +but money will lie idle, and watch and wait the changes that may +be made before we reach the specie standard. + +"In 1869, Congress pledged the public faith that the United States +would pay coin for United States notes. Again, in January, 1875, +after more than a year's debate, Congress declared that on and +after the 1st of January, 1879, the United States would pay its +notes in coin. + +"The Secretary of the Treasury is expressly required to prepare +for, and maintain, the redemption of all United States notes +presented at the treasury on and after that date, and for that +purpose he is authorized to use all the surplus revenues, and to +sell bonds of the United States bearing four, four and a half, and +five per cent. interest, at par in coin. It is this law, called +the resumption act, now so much discussed in the papers, that +imposes upon the office I hold most difficult and important duties, +and without replying to any attacks made upon me, I am anxious to +convey to you personally, what I have done, and what I must do, in +obedience to the provisions of this act. It is said that the law +is defective, but, if the great object and policy of the law is +right, the machinery of the law could easily be changed by Congress. +That resumption can be secured, and ought to be secured, under this +law, it will be my purpose to show you, and I shall not hesitate +to point out such defects in the law as have occurred to me in its +execution. + +"There are two modes of resumption; one is to diminish the amount +of notes to be redeemed, which mode is commonly called a contraction +of the currency; the other is to accumulate coin in the treasury, +to enable the secretary to maintain the notes at par." + +Objection had been made that under the first mode resumption would +be a process of converting a non-interest bearing note into an +interest bearing note, and that was true, but what right had we, +as a nation, or had any bank, or individual, to force in to +circulation, as money, its note upon which it paid no interest? +Why ought not anyone who issued a promise to pay on demand be made +to pay it when demanded, or pay interest thereafter? What right +had he, in law or justice, to insist upon maintaining in circulation +his note, which he refused to pay according to his promise, and +which he refused to receive in payment of a note bearing interest? +A certain amount of United States notes could be, and ought to be, +maintained at par in coin, with the aid of a moderate coin reserve +held in the treasury, and to the extent that this could be done +they formed the best possible paper money, a debt of the people +without interest, of equal value with coin, and more convenient to +carry and handle. Beyond this the issue of paper money, either by +the government or by banks, was a dangerous exercise of power, +injurious to all citizens, and should not continue a single day +beyond the necessities that gave it birth. I added: + +"The one practical defect in the law is, that the secretary is not +a liberty to sell bonds of the United States for United States +notes, but must sell them for coin. As coin is not in circulation +among the people, he is practically prohibited from selling bonds +to the people, except by an evasion of the law, or through private +parties. Bonds are in demand and can readily be sold at par in +coin, and still easier at par, or at a premium, in United States +notes. The process of selling for United States notes need not go +far before the mere fact that they are receivable for bonds would +bring them up to par in coin, and that is specie payments. + +"But the reason of the refusal of Congress to grant this authority, +often asked of it, was that it would contract the currency, and +this fear of contraction has thus far prevented Congress from +granting the easiest, plainest, and surest mode of resumption. To +avoid contraction, it provided that national bank notes may be +issued without limit as to amount and that, when issued, United +States notes might be retired to the extent of four-fifths of the +bank notes issued. This was the only provision for redeeming United +States notes that Congress made or would make, and this, it was +supposed, would reduce the United States notes to $300,000,000 +before January 1, 1879. The actual experiment only proves the +folly of the cry we had for more money, more money." + +The second mode of resuming was by accumulating coin gradually, so +that when the time fixed for resumption should arrive, the treasury +might be able to redeem such notes as should be presented. In this +respect the resumption act was as full and liberal as human language +could frame it. The secretary was authorized to prepare for +resumption, and for that purpose to use the surplus revenue and +sell either of the three classes of bonds, all of which in 1877 +were at or above par in coin. I said: "The power can be, ought +to be, and will be, executed if not repealed." + +This speech was printed in the leading papers in the United States +and in England, and was regarded by the public at large as a +declaration of the policy of the administration, to enforce the +resumption law, whatever might be the current of opinion developed +at the approaching elections, which, as they occurred, were generally +against the Republican party. The Democratic party had taken +position against the resumption act, in favor of the enlarged issue +of United States notes and the free coinage of silver. The strikes +led to the organization of labor unions, which, though independent +of political parties, chiefly affected the Republican party then +in power. + +Among many letters received by me, after this speech, I insert one +from Mr. Evarts: + + "Windsor, Vt., Aug. 30, 1877. +"The Hon. John Sherman, Secretary of the Treasury. + +"Dear Mr. Sherman:--I congratulate you upon the excellence and +success of your speech in Ohio. The difficulty of the undertaking +justly enhances the credit of its prosperous treatment. + +"I inclose a remonstrance from an 'Injustice' on the subject of a +new arrangement in the _weighing_ at the customhouse. It was sent +to me at Washington and forwarded from there here. I know nothing +of its source and have no opinion on the subject of the supposed +project. + +"The President's visit has pleased the people in New England +amazingly. I hope to see you all in Washington early next week. + + "I am very truly yours, + "Wm. M. Evarts." + +On the 14th of September, 1877, I sent to Hon. Stanley Matthews +the following letter, giving my view of the position taken by +General Ewing and Mr. Pendleton: + +"At the request of General Robinson I have directed to you, in the +care of Bickham, a number of documents for reference in your debate +with Ewing, and as Robinson says you wish me to make suggestions, +I venture to do so, but without any confidence that they can be of +assistance, though they can do no harm. + +"The most beneficial financial act of the administration is the +reduction of the interest on the public debt. The amount already +accomplished is stated in my printed speech. The rapidity of this +process depends entirely upon the credit of the government. Ewing's +policy would destroy our credit and stop the process. The very +doubts created by him and Pendleton have already damaged the +government very largely. Confidence is so sensitive that when +prominent men like Ewing and Pendleton talk as they do, the injury +is immediate. + +"The whole difference between the amount of silver and gold at this +moment is eight per cent., so that the payment of the debt in silver +would lessen the burden of the debt eight per cent., but under the +funding operations, which would be entirely destroyed by anything +that alarmed the market, we are enabled to save thirty-three per +cent. Whatever may be our right to pay our bonds, either in +greenbacks or in silver, this question of expediency, as you very +properly said in one of your speeches, is to be considered apart +from the question of legal power. + +"Refunding would go on with greatly accelerated speed if we could +sell bonds for greenbacks. We make discrimination against the +greenbacks by refusing to take them in payment of bonds. If I had +the power to sell bonds for greenbacks I could make greenbacks +equal to coin with scarcely a perceptible change. That is the +advice of the most sagacious men in the country. I know it. There +is talk about the bondholder being a privileged person. He ought +to be so no longer, and the moment that a bond could be bought with +currency at par in gold, all discrimination in favor of the bondholder +would disappear. + +"The differences among Republicans about silver will be settled by +the use of the silver dollar to the extent that it can be kept in +circulation at par with greenbacks, and is a pure question of +detail. The difference in the Democratic party about interconvertible +currency is vital, and Ewing's doctrine overthrows the whole +Democratic theory of finance before the war. + +"The existence of the national banks is a question simply of policy +and not a question of principle. The right conferred upon banks +to issue circulation is not conferred for their profit, but for +the public convenience, and all Republicans can agree that that +right should never be permitted to exist except when it is for the +public convenience. The office of bank notes is simply to supply +the ebb and flow of currency made necessary by the wants of business. +The United States cannot lend United States notes, and therefore +cannot meet this want. Ewing proposes to destroy the whole national +bank system, interwoven with all the business of the country. I +send you the last statement of the national banks. You can very +easily show the effect upon the reviving industry of the country +of the withdrawal of these loans and disturbing all this business. +As at present organized the circulation is the vital thing, and if +the bonds held by the banks to secure circulation were thrown upon +the market, it would stop funding and compel also the withdrawal +of loans, and create distress compared with which our present +troubles are mere moonshine. + +"I am afraid you will think I am going on to make a speech for you, +so I will stop abruptly, with the promise that if I can furnish +you any documents or information that may be of service to you I +will do so with pleasure. + +* * * * * + +"I inclose the last statement of the national banks containing many +points that may be of use. + +"Upon the question of resumption I believe we are all agreed that +it must come, and that the only standard of value is gold or silver +coin. The time and manner are the points of disagreement. Ewing +is opposed to all resumption, but believes in printing a dollar +and saying it is a dollar, while all the world would know that the +declaration is a lie. The fact that we have advanced the greenbacks +six per cent. in one year, by the movements made under the resumption +act, shows that it is working pretty well. I send you a statement +showing the changed condition in a year of our finances. + +"While the people differ about the resumption act there is time to +change it if it needs change, but Ewing would go back and commence +the process over again. I am disposed to be tolerant about +differences on the resumption act, for I think it will demonstrate +its success or failure before Congress is likely to tamper with it." + +On the 21st of September I wrote to General J. S. Robinson the +following letter, evincing my anxiety as to the result of the +canvass in Ohio, as it was then conducted: + +"I am so deeply impressed with the importance of the campaign in +Ohio that it makes me uneasy and restless that I cannot participate +in it. + +"What a magnificent chance the Republican party in Ohio now has, +not only to place itself in the vanguard in the United States, but +to do this country a service as great as any victory won by the +Union army during the war. Here it is demonstrated by the cordial +reception of the President in the south, by his hearty indorsement +in Massachusetts, and by a public sentiment now growing and spreading +with amazing rapidity, that in his southern policy he has opened +the means of order, safety, peace and security in all the southern +states. + +"Now, when it is demonstrated that the difficulties in the way of +resumption were myths conjured up by the fantasies of demagogues, +when our notes are worth within three per cent. of gold, when +Providence has favored us with boundless crops, and prosperity is +again coming upon us after a dreary time of distress and trial +caused by inflated paper money, why is it that we cannot see all +these things and avail ourselves of the advantage they give us in +our political contest? It seems to me that we ought to carry the +state by an overwhelming majority, and if we do so we will establish +the beneficial principles of our party beyond danger of overthrow +by reaction, and we will secure the peaceful and orderly development +of industry without a parallel in our previous history. + +"I wish it were in my power to impress every Republican in Ohio +with my earnest conviction about this matter, but here, constantly +occupied by official duties, I can only remain watching and waiting +in anxious suspense lest the great advantages we possess shall be +frittered away or lost by inaction or mistakes. + +"I know you will do your utmost for success, and only write you +this to show you how earnestly I sympathize with you in your +efforts." + +The election in Ohio, in October, resulted in the defeat of William +H. West, Republican, for governor, mainly on account of his position +as to labor unions, but no doubt also because of a feeling of +opposition against the resumption of specie payments. Richard M. +Bishop, Democrat, was elected governor, with a Democratic legislature +in both branches, which subsequently elected George H. Pendleton +as United States Senator. + +The following letter expresses my view of the election, and the +causes which led to our defeat: + + "Washington, October 17, 1877. +"Dear Sir:--Your letter of the 13th inst. is received. + +"Your statement of the causes of our defeat in Ohio seems to me +reasonable, though probably I would not agree with you in many +points stated. + +"It is not worth while now to bother ourselves about what we cannot +help. All we can do is to inquire how far we have been right, and +to that extent pursue the right, whether victory or defeat is the +result. No party can administer a government, that will not take +the risk of temporary defeat when it is pursuing what, in the +opinion of the great masses of it, is a beneficial policy for the +country. + +"So far as the southern question is concerned, I feel that the +President did right. The wisdom of his executive order as to office +holders depends upon the construction given to it, and he is not +responsible for a perverted construction not authorized by its +words or terms. As to the resumption policy, the law is plain and +mandatory, and, more than all, the law is right, and the Republican +party might as well understand first as last, that the question of +resumption is one higher than any party obligations and will be +pursued by our adversaries if we do not. We can gain the credit +of success, but we can gain no credit by retreating on this vital +question. While the law stands nothing is left but to execute it, +and for one I never would aid to alter the law, except to make it +more effective, and would be very willing to retire on this question +rather than to surrender. + +"The only way is for us to go steadily forward, with a certainty +that public opinion in the end will sustain us if we do what is +substantially right. The Republican party has been in this position +many times and has never won success by retreat and cannot do so +now. + + "Very truly yours, + "John Sherman. +"A. P. Miller, Esq., Toledo, Ohio." + +It became necessary for the President to call an extra session of +Congress, on account of the failure of the passage of the army bill +at the previous session. Though the proclamation was issued on +the 5th of May, 1877, Congress was not convened until the 15th of +October following. Both Houses met on the day appointed. The +Senate was organized by the election of Thomas W. Ferry, of Michigan, +as president _pro tempore_, and Samuel J. Randall, a Democratic +Member from Pennsylvania, was elected speaker of the House by a +majority of seventeen over James A. Garfield, the Republican +candidate. + +The message of the President was confined mainly to the circumstances +connected with the failure of the previous Congress to provide for +the support of the army, and to certain deficiencies in appropriations +required for the government, the President stating that as certain +acts of Congress, providing for reports of the government officials, +required their submission at the regular annual session, he deferred +until that time any further reference to subjects of popular +interest. + +Congress, however, not being confined in its powers, and having +full jurisdiction of all legislative questions, proceeded at once +to discuss financial questions and especially the measures taken +for the resumption of specie payments. No less than four bills +were introduced in the Senate and fourteen in the House, providing +for the repeal, in whole or in part, of the act for the resumption +of specie payments. One of these bills was reported from the +committee on banking and currency, by Mr. Ewing, on the 31st of +October. It was the subject of debate during the remaining period +of the session, and finally passed the House on the 23rd of November, +by the vote of 133 yeas and 120 nays. It repealed all that part +of the resumption act which authorized the Secretary of the Treasury +to dispose of United States bonds, and to redeem and cancel the +greenback currency, or practically all the resumption act except +the clauses for the substitution of silver coin for fractional +currency. It was sent to the Senate on the 26th of November, and +referred to the committee on finance. No action was taken upon it +during that session, which adjourned on the 3rd of December. The +regular session convened on the same day, with this bill still +pending in the committee on finance. On the 17th of April, 1878, +Mr. Ferry, from that committee, reported back the bill with an +amendment to strike out all after the enacting clause, and insert +new matter. After a long debate ending on the 13th of June, the +following amendment was adopted as a substitute for Mr. Ferry's +amendment, by a vote of yeas 30, nays 29: + +"That from and after the passage of this act United States notes +shall be receivable the same as coin in payment for the four per +cent. bonds now authorized by law to be issued; and on and after +October 1, 1878, said notes shall be receivable for duties on +imports." + +The bill, as amended, passed the Senate by a large majority. In +this form it had no proper relevancy to the bill as it passed the +House, and the action of the Senate was regarded as a practical +defeat of the bill. It was taken up in the House on the 14th of +June, and the question being taken on concurring in the amendment +of the Senate, the vote was yeas 112, nays 122, so the motion was +disagreed to. On the 17th of June, a motion was made to suspend +the rules and proceed to the consideration of the bill, but as two- +thirds did not vote in favor of the motion it was not adopted, and +the bill was not called up for action until the next session of +Congress, when Mr. Ewing, on February 22, 1879, reported it from +the committee on banking and currency, and moved to concur in the +Senate amendments, with amendments changing the date on which the +act should take effect, and also adding, "that the money hereafter +received from any sale of bonds of the United States shall be +applied only to the redemption of other bonds bearing a higher rate +of interest, and subject to call." + +This motion came too late, as the whole subject-matter had been +disposed of by the resumption of specie payments on the 1st of +January previous. It led, however, to a considerable debate in +which Mr. Garfield participated. He made a humorous allusion to +the revival of controversies that were past and gone since the 1st +of January, and moved to lay the bill and the amendments upon the +table. That was adopted by a vote of yeas 141, nays 118. + +I have given the official history of the efforts to repeal the +resumption act, but it would be beyond the limits of this book to +quote, or even state, the copious speeches for and against resumption. +I felt secure, for if such a bill should pass, the executive veto +would prevent any action by Congress that would interfere with the +execution of the law. My principal effort was to convince Congress +that it ought not to interfere with what the House called a +destructive experiment, but what I regarded as an easy and beneficial +execution of existing law. A large part of the opposition was +purely political. The resumption act was a Republican measure, +voted for only by Republicans. The Democratic party had, by the +elections just previous to its taking effect, secured a majority +in the House, and, with the aid of a few Republican Senators, with +strong "greenback" proclivities, had the control of the Senate on +the financial question. + +This political condition in the fall of 1877 tended to prevent the +sale of four per cent. bonds after the close of the popular loan. +My official correspondence with members of the syndicate, and with +Mr. Conant, published by order of the House of Representatives in +the volume "Specie Resumption and Refunding of the National Debt," +shows fully the earnest effort made by me to sell the four per +cent. bonds. This was successful to a slight degree in August and +September, but sales were substantially suspended after that date, +until it became manifest that the two Houses could not agree upon +the repeal of the resumption act, or the remonetization of silver. +The threatened measure for the free coinage of silver, and the fear +that the bonds would be paid in silver coin less valuable than the +gold coin paid for them, tended, more than the efforts to repeal +the resumption, to prevent the sale of bonds. + + "Mansfield, Ohio, August 18, 1877. +"Dear Mr. Conant:--Your letter of the 4th was forwarded to me here. +I notice what you say about the calls, but you must remember that +out of the sales of four per cent. bonds we must provide five +millions gold for each of the months of September and October, so +that for ten millions of bonds there must be no calls. I should +have informed you of this sooner, but neglected to do so before +leaving. The parties in New York, and no doubt the Rothschilds, +have been advised of it and agree to it. Until the popular +subscription is paid for it will be difficult to press the sale of +the four per cents., but I hope in September the sales will commence +and be pushed rapidly. The movement of the crop has already +commenced. The strike seems to be ended, with a better feeling +among laborers, and some advance in freight. The necessity of the +trunk lines combining on freight is so clear that it is likely to +result in some agreement that will stand. + +"I made a speech here yesterday, which no doubt will be received +by you in the New York papers in due time, and which contains some +matters affecting your operations. It is substantially in conformity +with the general wish of the administration as to financial affairs, +and it might be well for you to call the attention of the Rothschilds +to that part of it relating to our loans and the basis of our +credit. + +"I return next week to Washington, where I will again be happy to +hear from you. + + "Very truly, + "John Sherman, Secretary." + +Mr. Conant answered as follows: + + "New Court, St. Swithin's Lane, } + "London, E. C., England, August 23, 1877.} +"Dear Mr. Secretary:--I was very glad indeed to receive your letter +of the 6th instant. I at once informed the contracting parties of +what you had written in reference to the strikes and riots at home. +The sale of our bonds has not been directly interfered with on +account of the riots. In fact, the occurrence of the riots has +almost been forgotten. The London 'Times,' of this morning, has, +however, revived the subject by printing a letter from its Philadelphia +correspondent, in which he says that the strikers, it is evident, +are to get into politics through the organization of a party, to +be called the 'Workingmen's party;' and he predicts that mischief +will come out of it through the control of state governments which +the mob element may gain; and the consequent enactment of bad laws, +etc., especially against capital. Another letter is also printed +(written by a Mr. Connolly), by which it is made to appear that +American is in a terrible financial condition. These two letters +are made the subject of an editorial which, on the whole, is not +very complimentary to us, nor calculated to improve our credit. +The 'Times' of last Monday's date had an editorial on the speech +which you made in Ohio on Friday last. I send you a copy, and +think, if you can find time, you will rather enjoy reading the +article. Nearly all of the English people, as you are aware, +believe in the principle of 'free trade,' and it is but natural +that they should, for the reason that England depends upon her +great commerce and her markets in every part of the globe for the +employment and maintenance of her people. People here think that +our protectionist tariffs are not only detrimental to the commercial +interest of our own country, but that they are of a suicidal +character so far as our fiscal policy is concerned. They think, +in other words, that it would be vastly better for the real interest +of the people of the United States if they would trade more +extensively with the people of England. What the 'Times' editor +has to say about the balance of trade will amuse you, and yet people +talk about the advantages of a balance of trade as being an exploded +idea. English interests are laboring to effect a new treaty with +France, under which large reductions in duties are proposed. + +"I note what you are pleased to say in regard to sales of bonds +during the present month. With the price of bonds at the present +moment they cannot of course be sold. The parties will find it +necessary to use great caution as well as care in managing the +market, so as to get control of it. Any attempt to force the sale +of the bonds during this, and, I think, next month will only operate +to keep the price so low that they cannot be sold at all. I am +firm in the belief that the premium on gold will go gradually lower, +and that the balance of trade in our favor will keep forcing it +down. + + "I remain your obedient servant, + "Chas. F. Conant. +"Hon. John Sherman." + +He again wrote on the 30th of August: + +"On Tuesday last a further amount of gold (Ł130,000) was withdrawn +from the Bank of England for shipment to the United States, and +for the purpose of protecting its stock of bullion the bank +immediately advanced its rate to three per cent., and also increased +the price of American eagles. + +"Great Britain must obtain from us this season a large supply of +breadstuffs and grain, larger than has been required in any one +year during several years past, and at higher prices than those +heretofore paid, and, in the present condition of trade between +the two countries, gold, to quite an extent, will have to be sent +over in payment for these articles. Therefore, advancing the rate +of interest may check for a time, but will not stop altogether, +the shipment of bullion, but it may attract here some of the gold +held by the Bank of France. The bank rate does not govern the +street rate, and a further advance by the bank, which it is very +likely may be made, is not to be considered as indicating that we +are to have a dearer money market. I inquired to-day of Mr. Morgan +and the Messrs. Rothschild what they thought of the prospects of +making any sales during next month, and their answer was: 'Wait +patiently for the market to recuperate.' I am satisfied that good +investment securities are scarce here; that they have been cleared +from the market, and that as soon as the question of cheap or dear +money is settled, sales of the four per cent. consols will be +resumed. The amount of the sales will of course depend upon which +way the question is settled. There were times during the placing +of the five per cent. and four and a half per cent. bonds when, as +you are aware, operations were suspended for quite a time, the +condition of the market being such as to prevent anything being +done. From semi-official accounts it appears that the famine in +India is a very serious affair, and it is quite possible that large +sums of money will be required from here with which to purchase +supplies." + +My experience thus far convinced me that it was bad public policy +to continue the sale of bonds for refunding purposes through a +syndicate of bankers, the chief of whom resided in London. I could +see no reason why this function could not be performed by national +banks, better than by bankers at home or abroad. A question arose +whether the Secretary of the Treasury had the power to designate +national banks as public depositaries of the proceeds of bonds sold +under the resumption and refunding acts. The object to be gained +by this designation was to prevent the withdrawal of coin from +circulation, and the undue accumulation of coin in the treasury of +the United States. If the exchange of one bond by another could +be directly effected through the banks without the payment of coin, +it would facilitate the process of refunding. I submitted this +inquiry to Attorney General Devens, and on the 30th of August he +stated his opinion and closed as follows: + +"In answer to your inquiry, I have, therefore, the honor to say +that the Secretary of the Treasury, if he deems it expedient as a +matter of administrative policy, may sell bonds under the act known +as the 'refunding' and 'resumption' acts, depositing the amounts +received therefrom with such public depositaries as he may select +under the national bank act, taking such security as is required +by the statutes." + +The last of the popular subscriptions for the four per cent. bonds +became due on the 16th of October, and all were paid for but three +subscriptions aggregating $1,600, and these were assumed by the +syndicate. The bonds had been paid for by the syndicate either by +called six per cent. bonds, which were canceled, or in gold coin +deposited in the treasury, without the loss of a dollar. The called +session of Congress, which met on the 15th of October, and the +agitation of the repeal of the resumption act and the remonetization +of silver, prevented for the time any further sales of the four +per cent. bonds by the government. + + + +JOHN SHERMAN'S +RECOLLECTIONS +OF +FORTY YEARS +IN +THE HOUSE, SENATE AND CABINET +AN AUTOBIOGRAPHY. + +VOLUME II. + +ILLUSTRATED +WITH PORTRAITS, FAC-SIMILE LETTERS, SCENES, ETC. + +GREENWOOD PRESS, PUBLISHERS +NEW YORK 1968 + + +Copyright, 1895, By John Sherman + +First Greenwood reprinting, 1968 + +LIBRARY OF CONGRESS catalogue card number: 68-28647 + +Printed in the United States of America + + +ILLUSTRATIONS +VOLUME II. + +Mr. Sherman in His Library at Washington, D. C., 1895. _Frontispiece_ +Rutherford B. Hayes +President Hayes and Cabinet +John Sherman (Chamber of Commerce Portrait.) +Inauguration of President Garfield +Thurman, Sumner, Wade, Chase (Group.) +James A. Garfield +Chester A. Arthur +Invitation to Blaine's Eulogy of Garfield +United States Senate Chamber +Invitation to Washington Monument Dedication +Meeting of the Surviving Members of the Sherman Family +John A. Logan +James G. Blaine +Surviving Members of the 34th Congress (Taken in 1888.) +Representative Ohio Men--Schenck, Cox, Pendleton +Court House at Mansfield, Ohio. 1895 +Mr. Sherman's Washington Residence, "K" Street +Hallway in Mr. Sherman's Washington Residence +Dining Room in Mr. Sherman's Washington Residence + + +AUTOGRAPH LETTERS +VOLUME II. + +J. M. Rusk, April 14, 1878 +Jay Gould, October 17, 1878 +Whitelaw Reid, March 29, 1878 +John Jay, February 3, 1879 +John W. Foster, December 15, 1878 +James G. Blaine, July 3, 1879 +George Bancroft, February 22, 1881 +John G. Whittier, February 8, 1885 +U. S. Grant, January 27, 1885 +S. S. Cox, January 23, 1886 +W. T. Sherman, February 3, 1891 + + +TABLE OF CONTENTS. +VOLUME II. + +CHAPTER XXXI. +EFFECT OF THE BLAND BILL ON THE COUNTRY. +An Act Passed by the House Providing for the Free Coinage of the +Silver Dollar--Mr. Ewing Makes an Attack on Resumption--Fear of +Capitalists Regarding Our National Credit--Four Per Cents. Sell +Below Par--Suspense and Anxiety Continued Throughout the Year--My +First Report as Secretary of the Treasury--Recommendations of a +Policy to be Pursued "To Strengthen the Public Credit"--Substitution +of $50,000,000 in Silver Coin for Fractional Currency--Silver as +a Medium of Circulation--Its Fluctuation in Value--Importance of +Gold as a Standard of Value--Changes in the Market Value of Silver +Since 1873. + +CHAPTER XXXII. +ENACTMENT OF THE BLAND-ALLISON SILVER LAW. +Amendments to the Act Reported by the Committee on Finance--Revival +of a Letter Written by Me in 1868--Explained in Letter to Justin +S. Morrill Ten Years Later--Text of the Bland Silver Bill as Amended +by the Senate and Agreed to by the House--Vetoed by President Hayes +--Becomes a Law Notwithstanding His Objections--I Decide to Terminate +the Existing Contract with the Syndicate--Subscriptions Invited +for Four per Cent. Bonds--Preparations for Resumption--Interviews +with Committees of Both Houses--Condition of the Bank of England +as Compared with the United States Treasury--Mr. Buckner Changes +His Views Somewhat. + +CHAPTER XXXIII. +SALE OF BONDS FOR RESUMPTION PURPOSES. +Arrangements Begun for the Disposal of $50,000,000 for Gold or +Bullion--Interviews with Prominent Bankers in New York--Proposition +in Behalf of the National Banks--Terms of the Contract Made with +the Syndicate--Public Comment at the Close of the Negotiations-- +"Gath's" Interview with Me at the Completion of the Sale--Eastern +Press Approves the Contract, While the West Was Either Indifferent +or Opposed to it--Senate Still Discussing the Expediency of Repealing +the Resumption Act--Letter to Senator Ferry--Violent and Bitter +Animosity Aroused Against Me--I Am Charged with Corruption--Interview +with and Reply to Letter of Peter Cooper--Clarkson N. Potter's +Charges. + +CHAPTER XXXIV. +A SHORT RESPITE FROM OFFICIAL DUTIES. +Visit to Mansfield and Other Points in Ohio--Difficulty of Making +a Speech at Toledo--An Attempt to Break up a Meeting that Did Not +Succeed--Various Reports of the Gathering--Good Work of the Cincinnati +"Enquirer"--Toledo People Wanted "More Money"--Remarks Addressed +to the Cincinnati Chamber of Commerce--Visit to Lancaster, the +Place of My Birth--My Return to Washington--I Begin to Exchange +Silver Dollars for United States Notes--My Authority to Do So Before +January 1 Questioned--The Order is Withdrawn and Some Criticism +Follows--Instructions to the United States Treasurer and Others-- +Arrangements with New York Clearing House. + +CHAPTER XXXV. +INVESTIGATION OF THE NEW YORK CUSTOMHOUSE. +A General Examination of Several Ports Ordered--No Difficulty Except +at New York--First Report of the Commission--President Hayes' +Recommendations--Letter of Instructions to Collector C. A. Arthur +--Second Report of the Commission--Losses to the Government by +Reason of Inefficiency of Employees--Various Measures of Reform +Recommended--Four Other Reports Made--The President Decides on the +Removal of Arthur, Cornell and Sharpe--Two Letters to R. C. McCormick +on the Subject--Arthur et al. Refuse to Resign--The Senate Twice +Refuses to Confirm the Men Appointed by the President to Succeed +Them--Conkling's Contest Against Civil Service Reform--My Letter +to Senator Allison--Final Victory of the President. + +CHAPTER XXXVI. +PREPARATIONS FOR RESUMPTION OF SPECIE PAYMENTS. +Annual Report to Congress on Dec. 2, 1878--Preparations for Resumption +Accompanied with Increased Business and Confidence--Full Explanation +of the Powers of the Treasurer Under the Act--How Resumption Was +to Be Accomplished--Laws Effecting the Coinage of Gold and Silver +--Recommendation to Congress That the Coinage of the Silver Dollar +Be Discontinued When the Amount Outstanding Should Exceed $50,000,000 +--Funding the Public Debt--United States Notes at Par with Gold-- +Instructions to the Assistant Treasurer at New York--Political +Situation in Ohio. + +CHAPTER XXXVII. +REFUNDING THE NATIONAL DEBT. +Over $140,000,000 of Gold Coin and Bullion in the Treasury January +1, 1879--Diversity of Opinion as to the Meaning of Resumption-- +Effect of the Act to Advance Public Credit--Funding Redeemable +Bonds Into Four per Cents.--Letters to Levi P. Morton and Others-- +Six per Cent. Bonds Aggregating $120,000,000 Called During January, +1879--The Sale in London--Charges of Favoritism--Further Enactments +to Facilitate the Funding--Difficulty of Making Sales of Four per +Cent. Bonds to English Bankers--Large Amounts Taken in the United +States--One Subscription of $190,000,000--Rothschild's Odd Claim-- +Complimentary Resolution of the New York Chamber of Commerce. + +CHAPTER XXXVIII. +GENERAL DESIRE TO NOMINATE ME FOR GOVERNOR OF OHIO. +Death of My Brother Charles--The 46th Congress Convened in Special +Session--"Mending Fences" at My Home in Mansfield--Efforts to Put +Me Forward as a Candidate for the Governorship of Ohio--Letter to +Murat Halstead on the Question of the Presidency, etc.--Result of +My Letter to John B. Haskin--Reasons of My Refusal of the Nomination +for Governor--Invitation from James G. Blaine to Speak in Maine-- +My Speech at Portland--Victory of the Republican Party--My Speech +at Steubenville, Ohio--Evidences of Prosperity on Every Hand--Visit +to Cincinnati and Return to Washington--Results in Ohio. + +CHAPTER XXXIX. +LAST DAYS OF THE HAYES ADMINISTRATION. +Invitation From General Arthur to Speak in New York--Letter to Hon. +John Jay on the Subject--Mr. Evarts' Refined Specimen of Egotism-- +An Anecdote of the Hayes Cabinet--Duty of the Government to Protect +the Election of All Federal Officers--My Speech in Cooper Institute +--Offers of Support to Elect Me as a Successor of Senator Thurman +--My Replies--Republican Victory in New York--President Hayes' +Message to Congress--My Report as Secretary of the Treasury-- +Modification of My Financial Views Since that Time--Bank Notes as +Currency--Necessity for Paper Money--Mr. Bayard's Resolution +Concerning the Legal Tender Quality of United States Notes--Questions +Asked Me by the Finance Committee of the Senate. + +CHAPTER XL. +THE PRESIDENTIAL NOMINATION IN 1880. +Talk of Grant for President for a Third Term--His Triumphal Return +from a Trip Around the World--The Candidacy of Mr. Blaine and Myself +--Many of My Opponents Those Who Disagreed with Me on Financial +Questions--Accused of Being a Catholic and of Using Patronage to +Aid in My Nomination--My Replies--Delay in Holding the Ohio State +Convention--My Interview with Garfield--Resolution of the State +Convention in My Favor--National Convention at Chicago, on June 2, +1880--Fatal Move of Nine Ohio Delegates for Blaine--Final Nomination +of Garfield--Congratulations--Letter to Governor Foster and to +Garfield--Wade Hampton and the "Ku-Klux Klan." + +CHAPTER XLI. +MY LAST YEAR IN THE TREASURY DEPARTMENT. +Opening of the 1880 Campaign in Cincinnati--My First Speech Arraigned +as "Bitterly Partisan"--Letter from Garfield Regarding the Maine +Election--Ohio Thought to Be in Doubt--Many Requests for Speeches +--Republican Ticket Elected in Ohio and Indiana--A Strange Warning +from Detroit Threatening Garfield with Assassination--The Latter's +Reply--My Doubts About Remaining in the Treasury Department or +Making an Effort for the Senate--Letter to Dalzell--Last Annual +Report to Congress in December, 1880--Recommendations Regarding +Surplus Revenue, Compulsory Coinage of the Silver Dollar, the +Tariff, etc.--Bills Acted Upon by Congress. + +CHAPTER XLII. +ELECTED TO THE SENATE FOR THE FOURTH TIME. +Blaine Appointed Secretary of State--Withdrawal of Governor Foster +as a Senatorial Candidate--I Am Again Elected to My Old Position +to Succeed Allen G. Thurman--My Visit to Columbus to Return Thanks +to the Legislature--Address to Boston Merchants on Finances--Windom +Recommended to Succeed Me as Secretary of the Treasury--Personal +Characteristics of Garfield--How He Differed from President Hayes +--The Latter's Successful Administration--My One Day out of Office +in Over Forty Years--Long Animosity of Don Piatt and His Change of +Opinion in 1881--Mahone's Power in the Senate--Windom's Success in +the Treasury--The Conkling-Platt Controversy with the President +Over New York Appointments. + +CHAPTER XLIII. +ASSASSINATION OF GARFIELD AND EVENTS FOLLOWING. +I Return to Mansfield for a Brief Period of Rest--Selected as +Presiding Officer of the Ohio State Convention--My Address to the +Delegates Indorsing Garfield and Governor Foster--Kenyon College +Confers on Me the Degree of Doctor of Laws--News of the Assassination +of the President--How He Differed from Blaine--Visit of General +Sherman--Reception by Old Soldiers--My Trip to Yellowstone Park-- +Speechmaking at Salt Lake City--Visit to Virginia City--Placer +Mining in Montana--The Western Hunter Who Was Lost in a "St. Louis +Cańon"--Sunday in Yellowstone Park--Geysers in the Upper Basin-- +Rolling Stones Down the Valley--Return Home--Opening of the Ohio +Campaign--Death of Garfield. + +CHAPTER XLIV. +BEGINNING OF ARTHUR'S ADMINISTRATION. +Special Session of the Senate Convened by the President--Abuse of +Me by Newspapers and Discharged Employees--Charges Concerning +Disbursement of the Contingent Fund--My Resolution in the Senate-- +Secretary Windom's Letter Accompanying the Meline Report--Investigation +and Complete Exoneration--Arthur's Message to Congress in December +--Joint Resolutions on the Death of Garfield--Blaine's Tribute to +His Former Chief--Credit of the United States at "High Water Mark" +--Bill Introduced Providing for the Issuing of Three per Cent. +Bonds--Corporate Existence of National Banks Extended--Bill to +Reduce Internal Revenue Taxes--Tax on Playing Cards--Democratic +Victory in Ohio. + +CHAPTER XLV. +STEPS TOWARDS MUCH NEEDED TARIFF LEGISLATION. +Necessity of Relief from Unnecessary Taxation--Views of the President +as Presented to Congress in December, 1882--Views of the Tariff +Commission Appointed by the President--Great Changes Made by the +Senate--Regret That I Did Not Defeat the Bill--Wherein Many Sections +Were Defective or Unjust--Bill to Regulate and Improve the Civil +Service--A Mandatory Provision That Should be Added to the Existing +Law--Further Talk of Nominating Me for Governor of Ohio--Reasons +Why I Could Not Accept--Selected as Chairman of the State Convention +--Refusal to Be Nominated--J. B. Foraker Nominated by Acclamation +--His Career--Issues of the Campaign--My Trip to Montana--Resuming +the Canvass--Hoadley Elected Governor--Retirement of Gen. Sherman. + +CHAPTER XLVI. +EFFECT OF THE MARINE NATIONAL BANK AND OTHER FAILURES. +Continued Prosperity of the Nation--Arthur's Report to Congress-- +Resolution to Inquire into Election Outrages in Virginia and +Mississippi--Reports of the Investigating Committee--Financial +Questions Discussed During the Session--Duties and Privileges of +Senators--Failure of the Marine National Bank and of Grant and Ward +in New York--Followed By a Panic in Which Other Institutions Are +Wrecked--Timely Assistance from the New York Clearing House--Debate +in the Senate on the National Bank System--Dedication of the John +Marshall Statue at Washington--Defeat of Ingalls' Arrears of Pensions +Amendment to Bill to Grant Pensions to Soldiers and Sailors of the +Mexican War--The Senate Listens to the Reading of the Declaration +of Independence on July 4. + +CHAPTER XLVII. +MY PARTICIPATION IN THE CAMPAIGN OF 1884. +Again Talked of as a Republican Candidate for the Presidency--I +Have No Desire for the Nomination--Blaine the Natural Candidate of +the Party--My Belief that Arthur Would be Defeated if Nominated-- +Speech at Washington, D. C., for Blaine and Logan--Opening of the +Ohio Campaign at Ashland--Success of the Republican State Ticket +in October--Speeches in Boston, Springfield, Mass., New York and +Brooklyn--Address to Business Men in Faneuil Hall--Success of the +National Democratic Ticket--Arthur's Annual Message to Congress-- +Secretary McCulloch's Recommendations Concerning the Further Coinage +of Silver Dollars--Statement of My Views at This Time--Statue to +the Memory of General Lafayette--Controversy Between General Sherman +and Jefferson Davis. + +CHAPTER XLVIII. +DEDICATION OF THE WASHINGTON MONUMENT. +Resolution of Senator Morrill Providing for Appropriate Dedicatory +Ceremonies--I Am Made Chairman of the Commission--Robert C. Winthrop's +Letter Stating His Inability to Attend the Exercises--Letters of +Regret from General Grant and John G. Whittier--Unfavorable Weather +for the Dedication--My Address as Presiding Officer--The President's +Acceptance of the Monument for the Nation--Mr. Winthrop's Address +Read in the House by John D. Long--Inauguration of the First +Democratic President Since Buchanan's Time--Visit to Cincinnati +and Address on the Election Frauds--Respects to the Ohio Legislature +--A Trip to the West and Southwest--Address on American Independence. + +CHAPTER XLIX. +REUNION OF THE "SHERMAN BRIGADE." +Patriotic Address Delivered at Woodstock, Conn., On My Return from +the Pacific Coast--Meeting of the Surviving Members of the Sherman +Family at Mansfield--We Attend the Reunion of the "Sherman Brigade" +at Odell's Lake--Addresses of General Sherman and Myself to the +Old Soldiers and Others Present--Apathy of the Republican Party +During the Summer of 1885--Contest Between Foraker and Hoadley for +the Governorship--My Speech at Mt. Gilead Denounced as "Bitterly +Partisan"--Governor Hoadley Accuses Me of "Waving the Bloody Shirt" +--My Reply at Lebanon--Election of Foraker--Frauds in Cincinnati +and Columbus--Speeches Made in Virginia. + +CHAPTER L. +ELECTED PRESIDENT PRO TEMPORE OF THE SENATE. +Death of Vice President Hendricks--I Am Chosen to Preside Over the +United States Senate--Letter of Congratulation from S. S. Cox-- +Cleveland's First Annual Message to Congress--His Views on the +Tariff and Condition of Our Currency--Secretary Manning's Report-- +Garfield's Statue Presented to the Nation by the State of Ohio--I +Am Elected a Senator from Ohio for the Fifth Time--I Go to Columbus +to Return Thanks to the Legislature for the Honor--Business of this +Session of Congress--Attempt to Inquire Into the Methods of Electing +Mr. Payne to the Senate from Ohio--My Address on "Grant and the +New South"--Address Before the Ohio Society of New York. + +CHAPTER LI. +A PERIOD OF POLITICAL SPEECH MAKING. +Organization of the "Sherman Club" at Mansfield, Ohio--My Experiences +with Newspaper Reporters--Address at the State Fair in Columbus on +Agricultural Implements--Other Speeches Made in the Campaign of +that Year--Address at Louisville, Ky.--Courteous Treatment by Henry +Watterson, of the "Courier Journal"--Hon. John Q. Smith's Change +of Heart--Answering Questions Propounded by Him at a Gathering in +Wilmington, Ohio--Success of the Republican Party--Second Session +of the 49th Congress--But Little Legislation Accomplished--Death +of Senator John A. Logan--Tributes to His Memory--His Strong +Characteristics--My Reason for Resigning the Presidency of the +Senate--Succeeded by John J. Ingalls. + +CHAPTER LII. +VISIT TO CUBA AND THE SOUTHERN STATES. +Departure for Florida and Havana--A Walk Through Jacksonville-- +Impressions of the Country--Visit to Cigar Factories and Other +Places of Interest--Impressions of Cuba--Experience with Colored +Men at a Birmingham Hotel--The Proprietor Refuses to Allow a +Delegation to Visit Me in My Rooms--Sudden Change of Quarters-- +Journey to Nashville and the Hearty Reception Which Followed--Visit +to the Widow of President Polk--My Address to Nashville Citizens-- +Comment from the Press That Followed It--An Audience of Workingmen +at Cincinnati--Return Home--Trip to Woodbury, Conn., the Home of +My Ancestors--Invitation to Speak in the Hall of the House of +Representatives at Springfield, Ill.--Again Charged with "Waving +the Bloody Shirt." + +CHAPTER LIII. +INDORSED FOR PRESIDENT BY THE OHIO STATE CONVENTION. +I Am Talked of as a Presidential Possibility--Public Statement of +My Position--Unanimous Resolution Adopted by the State Convention +at Toledo on July 28, 1887--Text of the Indorsement--Trip Across +the Country with a Party of Friends--Visit to the Copper and Nickel +Mining Regions--Stop at Winnipeg--A Day at Banff--Vast Snowsheds +Along the Canadian Pacific Railroad--Meeting with Carter H. Harrison +on Puget Sound--Rivalry Between Seattle and Tacoma--Trying to Locate +"Mount Tacoma"--Return Home After a Month's Absence--Letter to +General Sherman--Visit to the State Fair--I Attend a Soldiers' +Meeting at Bellville--Opening Campaign Speech at Wilmington--Talk +to Farmers in New York State--Success of the Republican Ticket in +Ohio--Blaine Declines to Be a Candidate. + +CHAPTER LIV. +CLEVELAND'S EXTRAORDINARY MESSAGE TO CONGRESS. +First Session of the 50th Congress--The President's "Cry of Alarm" +--Troubled by the Excess of Revenues over Expenditures--My Answer +to His Doctrines--His Refusal to Apply the Surplus to the Reduction +of the Public Debt--The Object in Doing So--My Views Concerning +Protection and the Tariff--In Favor of a Tariff Commission--"Mills +Bill" the Outcome of the President's Message--Failure of the Bill +During the Second Session--My Debates with Senator Beck on the +Coinage Act of 1873, etc.--Omission of the Old Silver Dollar--Death +of Chief Justice Waite--Immigration of Chinese Laborers--Controversy +with Senator Vest--Speech on the Fisheries Question--Difficulties +of Annexation with Canada. + +CHAPTER LV. +REPUBLICAN NATIONAL CONVENTION OF 1888. +Majority of the Ohio Delegates Agree to Support Me for President-- +Cleveland and Thurman Nominated by the Democrats--I Am Indorsed by +the State Convention Held at Dayton, April 18-19--My Response to +a Toast at the Americus Club, Pittsburg, on Grant--Meeting with +Prominent Men in New York--Foraker's Reply to Judge West's Declaration +Concerning Blaine--Blaine's Florence Letter to Chairman Jones--His +Opinion of My Qualifications for the Honorable Position--Meeting +of the Convention in Chicago in June--I Am Nominated by General D. +H. Hastings and Seconded by Governor Foraker--Jealousy Between the +Ohio Delegates--Predictions of My Nomination on Monday, June 25-- +Defeated by a Corrupt New York Bargain--General Harrison is Nominated +--Letters from the President Elect--My Replies--First Speeches of +the Campaign--Harrison's Victory--Second Session of the 50th Congress +--The President's Cabinet. + +CHAPTER LVI. +FOUR AND A HALF MONTHS IN EUROPE. +Our Party Takes Its Departure on the "City of New York" on May 1-- +Personnel of the Party--Short Stop in London--Various Cities in +Italy Visited--Sight-Seeing in Rome--Journey to Pompeii and Naples +--Impressions of the Inhabitants of Southern Italy--An Amusing +Incident Growing Out of the Ignorance of Our Courier--Meeting with +Mr. Porter, Minister to Rome--Four Days in Florence--Venice Wholly +Unlike Any Other City in the World--Favorable Impression of Vienna +--Arrival at Paris--Reception by the President of the Republic of +France--Return Home--My Opinion Concerning England and Englishmen +--Reception at Washington--Campaigning Again for Foraker--Ohio Ballot +Box Forgery and Its Outcome--Address at Cleveland on "The Congress +of American States"--Defeat of Foraker for Governor. + +CHAPTER LVII. +HISTORY OF THE "SHERMAN SILVER LAW." +President Harrison's First Annual Message--His Recommendations +Regarding the Coinage of Silver and Tariff Revisions--Bill Authorizing +the Purchase of $4,500,000 Worth of Silver Bullion Each Month-- +Senator Plumb's "Free Silver" Amendment to the House Bill--Substitute +Finally Agreed Upon in Conference--Since Known as the "Sherman +Silver Law"--How It Came to Be so Called--Chief Merit of the Law-- +Steady Decline of Silver After the Passage of the Act--Bill Against +Trusts and Combinations--Amendments in Committee--The Bill as Passed +--Evils of Unlawful Combinations--Death of Representative Wm. D. +Kelley and Ex-Member S. S. Cox--Sketch of the Latter--My Views +Regarding Immigration and Alien Contract Labor--McKinley Tariff +Law--What a Tariff Is--Death of George H. Pendleton--Republican +Success in Ohio--Second Session of the 51st Congress--Failure of +Senator Stewart's "Free Coinage Bill." + +CHAPTER LVIII. +EFFORTS TO CONSTRUCT THE NICARAGUAN CANAL. +Early Recognition of the Need of a Canal Across the Isthmus +Connecting North and South America--M. de Lesseps Attempts to Build +a Water Way at Panama--Feasability of a Route by Lake Nicaragua-- +First Attempts in 1825 to Secure Aid from Congress--The Clayton- +Bulwer Convention of 1850--Hindrance to the Work Caused by This +Treaty--Report of the Committee on Foreign Relations in 1891-- +Failure to Secure a Treaty Between the United States and Nicaragua +in 1884--Cleveland's Reasons for Withdrawing This Treaty--Incorporation +of the Maritime Canal Company of Nicaragua--Inevitable Failure of +Their Attempts Unless Aided by the Government--Why We Should Purchase +Outright the Concessions of the Maritime Company--Brief Description +of the Proposed Canal--My Last Letter from General Sherman--His +Death from Pneumonia After a Few Days' Illness--Messages of President +Harrison--Resolution--My Commemorative Address Delivered Before +the Loyal Legion. + +CHAPTER LIX. +THE CAMPAIGN OF 1890-91 IN OHIO. +Public Discussion of My Probable Re-election to the Senate--My +Visit to the Ohio Legislature in April, 1891--Reception at the +Lincoln League Club--Address to the Members--Appointed by the +Republicans as a Delegate to the State Convention at Columbus--Why +My Prepared Speech Was Not Delivered--Attack on Me by the Cincinnati +"Enquirer"--Text of the Address Printed in the "State Journal"-- +Beginning of a Canvass with Governor Foraker as a Competitor for +the Senatorship--Attitude of George Cox, a Cincinnati Politician, +Towards Me--Attempt to Form a "Farmers' Alliance" or People's Party +in Ohio--"Seven Financial Conspiracies"--Mrs. Emery's Pamphlet and +My Reply to It. + +CHAPTER LX. +FREE SILVER AND PROTECTION TO AMERICAN INDUSTRIES. +My Views in 1891 on the Free Coinage of Silver--Letter to an Ohio +Newspaper on the Subject--A Problem for the Next Congress to Solve +--Views Regarding Protection to American Industries by Tariff Laws +--My Deep Interest in This Campaign--Its Importance to the Country +at Large--Ohio the Battle Ground of These Financial Questions-- +Opening the Campaign in Paulding Late in August--Extracts from My +Speech There--Appeal to the Conservative Men of Ohio of Both Parties +--Address at the State Fair at Columbus--Review of the History of +Tariff Legislation in the United States--Five Republican Principles +Pertaining to the Reduction of Taxes--Speeches at Cleveland, Toledo, +Cincinnati and Elsewhere--McKinley's Election by Over 21,000 +Plurality. + +CHAPTER LXI. +ELECTED TO THE UNITED STATES SENATE FOR THE SIXTH TIME. +I Secure the Caucus Nomination for Senator on the First Ballot-- +Foraker and Myself Introduced to the Legislature--My Address of +Thanks to the Members--Speech of Governor Foraker--My Colleague +Given His Seat in the Senate Without Opposition--Message of President +Harrison to the 52nd Congress--Morgan's Resolutions and Speech for +the Free Coinage of Silver--Opening of the Silver Debate by Mr. +Teller--My Speech on the Question--Defeat of the Bill in the House +--Discussion of the Chinese Question--My Opposition to the Conference +Report on Mr. Geary's Amended Bill--Adopted by the Senate After a +Lengthy Debate--Effect of the Tariff Laws Upon Wages and Prices-- +Senator Hale's Resolution--Carlisle's Speech in Opposition to High +Prices--My Reply--Résumé of My Opinions on the Policy of Protection +--Reception by the Ohio Republican Association--Refutation of a +Newspaper Slander Upon H. M. Daugherty--Newspaper Writers and +Correspondents--"Bossism" in Hamilton County. + +CHAPTER LXII. +SECOND ELECTION OF GROVER CLEVELAND. +Opposition to General Harrison for the Presidential Nomination--My +Belief That He Could Not Be Elected--Preference for McKinley-- +Meeting of the National Republican Convention at Minneapolis-- +Meeting of Republicans at Washington to Ratify the Ticket--Newspaper +Comment on My Two Days' Speech in the Senate on the Silver Question +--A Claim That I Was Not in Harmony with My Party on the Tariff-- +My Reply--Opening Speeches for Harrison and Reid--Publication of +My "History of the Republican Party"--First Encounter with a "Kodak" +--Political Addresses in Philadelphia, New York, Cincinnati, Chicago +and Milwaukee--Return to Ohio--Defeat of Harrison. + +CHAPTER LXIII. +ATTEMPTS TO STOP THE PURCHASE OF SILVER BULLION. +My Determination to Press the Repeal of the Silver Purchasing Clause +of the "Sherman Act"--Reply to Criticisms of the Philadelphia +"Ledger"--Announcement of the Death of Ex-President Hayes--Tribute +to His Memory--Efforts to Secure Authority to the Secretary of the +Treasury to Sell Bonds to Maintain the Resumption of United States +Notes--The Senate Finally Recedes from the Amendment in Order to +Save the Appropriation Bill--Loss of Millions of Dollars to the +Government--Cleveland Again Inducted Into Office--His Inaugural +Address--Efforts to Secure an Appropriation for the "World's Fair" +--Chicago Raises $1,000,000--Congress Finally Decides to Pay the +Exposition $2,500,000 in Silver Coin--I Attend the Dedication of +the Ohio Building at the Fair--Address to the Officers and Crew of +the Spanish Caravels. + +CHAPTER LXIV. +REPEAL OF PART OF THE "SHERMAN ACT" OF 1890. +Congress Convened in Extraordinary Session on August 7, 1893--The +President's Apprehension Concerning the Financial Situation--Message +from the Executive Shows an Alarming Condition of the National +Finances--Attributed to the Purchase and Coinage of Silver--Letter +to Joseph H. Walker, a Member of the Conference Committee on the +"Sherman Act"--A Bill I Have Never Regretted--Brief History of the +Passage of the Law of 1893--My Speech in the Senate Well Received +--Attacked by the "Silver Senators"--General Debate on the Financial +Legislation of the United States--Views of the "Washington Post" +on My Speech of October 17--Repeal Accomplished by the Republicans +Supporting a Democratic Administration--The Law as Enacted--Those +Who Uphold the Free Coinage of Silver--Awkward Position of the +Democratic Members--My Efforts in Behalf of McKinley in Ohio--His +Election by 81,000 Plurality--Causes of Republican Victories +Throughout the Country. + +CHAPTER LXV. +PASSAGE OF THE WILSON TARIFF BILL. +Second Session of the 53rd Congress--Recommendations of the President +Concerning a Revision of the Tariff Laws--Bill Reported to the +House by the Committee of Ways and Means--Supported by Chairman +Wilson and Passed--Received in the Senate--Report of the Senate +Committee on Finance--Passes the Senate with Radical Amendments-- +These are Finally Agreed to by the House--The President Refuses to +Approve the Bill--Becomes a Law After Ten Days--Defects in the Bill +--Not Satisfactory to Either House, the President or the People-- +Mistakes of the Secretary of the Treasury--No Power to Sell Bonds +or to Borrow Money to Meet Current Deficiencies--Insufficient +Revenue to Support the Government--A Remedy That Was Not Adopted-- +Gross Injustice of Putting Wool on the Free List--McKinley Law +Compared with the Wilson Bill--Sufficient Revenue Furnished by the +Former--I Am Criticized for Supporting the President and Secretary. + +CHAPTER LXVI. +SENIORITY OF SERVICE IN THE SENATE. +Notified That My Years of Service Exceed Those of Thomas Benton-- +Celebration of the Sons of the American Revolution at the Washington +Monument--My Address to Those Present--Departure for the West with +General Miles--Our Arrival at Woodlake, Nebraska--Neither "Wood" +nor "Lake"--Enjoying the Pleasures of Camp Life--Bound for Big +Spring, South Dakota--Return via Sioux City, St. Paul and Minneapolis +--Marvelous Growth of the "Twin Cities"--Publication of the "Sherman +Letters" by General Sherman's Daughter Rachel--First Political +Speech of the Campaign at Akron--Republican Victory in the State +of Ohio--Return to Washington for the Winter of 1894-95--Marriage +of Our Adopted Daughter Mary with James Iver McCallum--A Short +Session of Congress Devoted Mainly to Appropriations--Conclusion. + + +CHAPTER XXXI. +EFFECT OF THE BLAND BILL ON THE COUNTRY. +An Act Passed by the House Providing for the Free Coinage of the +Silver Dollar--Mr. Ewing Makes an Attack on Resumption--Fear of +Capitalists Regarding Our National Credit--Four Per Cents. Sell +Below Par--Suspense and Anxiety Continued Throughout the Year--My +First Report as Secretary of the Treasury--Recommendations of a +Policy to be Pursued "To Strengthen the Public Credit"--Substitution +of $50,000,000 in Silver Coin for Fractional Currency--Silver as +a Medium of Circulation--Its Fluctuation in Value--Importance of +Gold as a Standard of Value--Changes in the Market Value of Silver +Since 1873. + +The silver question was suddenly thrust upon the House of +Representatives on the 5th of November, 1877, by a motion, submitted +by Mr. Bland, of Missouri, that the rules be suspended so as to +enable him to introduce, and the House to pass, a bill to authorize +the free coinage of the standard silver dollar of 412˝ grains, and +to restore its legal tender character. The motion to suspend the +rules cut off all amendments and all debate. Several members +demanded a hearing. Efforts were made to adjourn, but this was +refused. The previous question being ordered and the rules suspended, +a single vote would introduce the bill without a reference to a +committee, and would pass it without any power of amendment, without +the usual reading at three separate times. The motion was agreed +to by a vote of yeas 163, nays 34. So, two-thirds voting in favor +thereof, the rules were suspended and the bill was passed. + +The first section of this bill provided that there shall be coined, +at the several mints of the United States, the silver dollar of +the weight of 412˝ grains, troy, of standard silver, as provided +in the act of January 18, 1837, on which shall be the devices and +superscriptions provided by said act; which coins, together with +all silver dollars heretofore coined by the United States, of like +weight and fineness, shall be a legal tender at their nominal value +for all debts and dues, public and private, except where otherwise +provided by contract; and any owner of silver bullion may deposit +the same in any United States coinage mint or assay office, to be +coined into such dollars for his benefit, upon the same terms and +conditions as gold bullion is deposited for coinage under existing +law. Section 2 provided for repealing all acts and parts of acts +inconsistent with provisions of the act. + +Thus this bill, of wide-reaching importance, was introduced and +passed by the House under the previous question, and a suspension +of the rules without debate on the same day of its introduction by +a vote of yeas 163, nays 34. It was sent to the Senate and referred +to the committee on finance. + +On the same day Mr. Ewing moved in the House of Representatives to +suspend the rules and adopt the following resolution: + +"_Resolved_, That the bill to repeal the third section of the +resumption law be made the special order, not to interfere with +any appropriation bills, for to-morrow at the expiration of the +morning hour, and from day to day thereafter until the following +Tuesday at three o'clock, when the previous question shall be +ordered on it and on any amendments then pending, all amendments +meanwhile to be in order, provided the time shall be extended, if +necessary, so as to allow five days after the morning hour for the +consideration of said bill and amendments." + +This resolution passed by a vote of yeas 143, nays 47. + +In consequence of this action of the House, the syndicate declined +to offer the bonds, and no further calls for six per cent. bonds +were therefore made. + +On the 7th of November August Belmont wrote me from New York as +follows; + +"I fear that the threatening position of the silver question will +check completely any demand for the four per cent. bonds here and +in Europe. The damage which the passage of this measure will do +to our public credit abroad _cannot be over estimated_. To remonetize +silver upon the old standard, and make it a legal tender for all +private and public debts, will be considered by the whole civilized +world as an act of repudiation on the part of the federal government, +and cast a stain upon our national credit, which has hitherto stood +as high and bright as that of any government in the world. + +"It is just as much repudiation for the federal government to compel +its bondholders to accept the payment of their interest in silver, +which is at a discount of ten per cent., against the gold which +the government received for the bonds, as it would be if Congress +decreed that all the bonds of the United States should not bear a +higher interest than two per cent. per annum. To do such a thing +now as is contemplated by the Bland silver bill, when the federal +finances are in a flourishing condition, when the premium of gold +has been reduced two and a half to three per cent., and when our +funded debt sells equal to that of any other public security in +the world, is actually as if a man of wealth and position, who had +by a life-long course of strict honesty acquired the well-earned +confidence and respect of his fellow-citizens and of the outer +world, should in the midst of his affluence, and without the +palliating excuse of any temptation of want or necessity, commit +open theft. + +"I am sure I do not over estimate the damaging effect which the +passage of the bill must have upon American credit. All my letters +from abroad, and conversations with people familiar with the English +and continental money markets, confirm my convictions on that point. +When you look back and find in the archives of your department the +proud records of a nation's faith kept inviolate with a most +punctilious and chivalrous spirit during a century, amidst all the +trials of foreign and civil war which strained the resources of +our country to the very verge of ruin, the task before you is +certainly a difficult and harassing one; but while the path of duty +is often narrow and difficult, it is always straight and so well +defined that it can never be mistaken. + +"Sound financial policy and love of our country's fair name alike +demand from those to whom the administration of its affairs have +been intrusted the most uncompromising hostility to the _blind_ +and _dishonest_ frenzy which has taken hold of Congress, and I +sincerely hope that you will be seconded in the task before you by +the hearty support of the President and your colleagues." + +On the 9th of November I was advised that the four per cent. bonds +were selling at 99 and interest, in a small way only. The syndicate +had bought in the market about $750,000 of these bonds at less than +par in order to prevent a further depreciation. On the same day +I was informed by August Belmont & Co., as follows: + +"After conference and careful consideration of the whole subject, +it is the conclusion of all the associates, in Europe and here, +that it is injudicious to undertake further negotiations of the +fours, during the pendency of the legislation proposing to make +silver a full legal tender, as the discussion has checked dealings +in the bonds by the public. To make a call in the face of a market +quotation (to-day 98ž and interest) below the price fixed by law +would not convince the public that new business had been undertaken +at a loss, but that the call was connected with business previously +done. + +* * * * * + +"Further than this, we are satisfied that, holding the views +expressed in your letters mentioned, the President and all his +cabinet will agree with us that it would be wrong for us to ask +for another call at this juncture, as such action would be held by +those advocating the legislation in favor of silver as proving that +such legislation in our opinion was not prejudicial to the national +credit and the refunding of our national debt." + +On the 10th of November Mr. Conant wrote me that our bonds had been +depressed by the rumors which had been circulated respecting probable +legislation which would depreciate their value, and that four and +a half per cent. bonds had fallen off three-fourths per cent. He +said: "If, in any legislation which may be enacted regarding +silver, provision could be made not only exempting the debt and +interest thereon from payment in silver, but declaring that payment +of the same shall be made in gold coin, it would aid us immeasurably +in placing our bonds." + +Two days later I received a letter from F. O. French, of New York, +as follows: + +"Our business people are very much alarmed at the rumored strength +of the silver people, and, as they apprehend the gravest disasters +from the success of the Bland bill, a committee of gentlemen +connected with insurance and trust companies, as well as with the +banks, go to Washington to-morrow to present their views to the +finance committee. + +"Once dispatch this silver business--and I have faith that it cannot +live in the light of full discussion by the Senate--and we shall +renew funding, and by attaining resumption put an end to financial +discussions as we did to slavery." + +And on the following day I wrote to August Belmont & Co.: + +"Your letter of the 9th instant was received, and also a personal +letter from Mr. Belmont. + +"I am watchful of the course of legislation in Congress and of the +current of public sentiment, both in our own and foreign countries, +on the silver question. I am not prepared at present to give any +assurance as to what will be done in Congress, nor of the action +of the executive department. It is better to let the matter stand +as it is, awaiting events without any committals whatever. I have +faith to believe that all will come our right so far as the public +credit is affected, and will write you again when anything definite +can be said." + +On the 29th of November Belmont wrote me a long letter containing +the following statements: + +"I need hardly assure you, at this late day, of my earnest solicitude +for the success of the funding and resumption operations, and of +my personal deep regret, apart from all pecuniary considerations, +as a member of the syndicate, to see this unfortunate situation of +the silver question put a complete stop to all further sales of +the four per cent. bonds at present, here and in England. The +capitalists and banks on both sides of the Atlantic will not buy +a bond at par _in gold_, when it is almost certain, from the +overwhelming vote in the House, and the known attitude of the +Senate, that a silver bill, making the old silver dollar a legal +tender for all private and public obligations, will pass both Houses +this winter. . . . + +"The bonds are selling at ninety-nine and one-fourth in gold in open +market, and it seems to me very doubtful policy to offer bonds, by +us, to the public at this moment, and thus assist the advocates of +the old silver dollar by our apparent indifference to the injustice +and dishonesty of the Bland bill." + +This condition of suspense and anxiety continued during the remainder +of the year. + +My first annual report, as Secretary of the Treasury, was made to +Congress on the 3rd of December, 1877. The statement made of our +financial condition was a very favorable one, showing a surplus +revenue of $30,340,577.69. The receipts from different sources of +revenue were largely diminished, but the expenditures for the year +were reduced by an equal amount. The surplus revenue was applied +to the redemption of United States notes and of fractional currency, +and to the payment of six per cent. bonds for the sinking fund. +The report dealt with the usual topics of such reports, embracing +a great variety of subjects. What attracted the most attention +was, naturally, what was said about refunding the public debt and +the resumption of specie payments. The results of refunding during +the previous year have already been sufficiently stated. The plans +for the resumption of specie payments were fully explained. The +mode and manner of bringing this about was not specified in the +law, but the time for resumption was fixed and the means provided +for accumulating coin for that purpose were ample. + +By the resumption act the Secretary of the Treasury was required +to redeem legal tender notes to the amount of eighty per centum of +the sum of national bank notes issued, and to continue such +redemption, as circulating notes were issued, until there was +outstanding the sum of $300,000,000 of such legal tender United +States notes, and no more. + +By the same act it was provided that, on and after the 1st day of +January, 1879, the Secretary of the Treasury should redeem, in +coin, the United States legal tender notes then outstanding, on +their presentation for redemption at the office of the assistant +treasurer of the United States, in the city of New York, in sums +of not less than fifty dollars. "And," it continued, "to enable +the Secretary of the Treasury to prepare and provide for the +redemption in this act authorized or required, he is authorized to +use any surplus revenues, from time to time, in the treasury, not +otherwise appropriated, and to issue, sell, and dispose of, at not +less than par, in coin, either of the descriptions of bonds, of +the United States, described in the act of Congress approved July +14, 1870, entitled 'An act to authorize the refunding of the national +debt,' with like qualities, privileges, and exemptions, to the +extent necessary to carry this act into full effect, and to use +the proceeds thereof for the purposes aforesaid." + +In obedience to this provision I had sold at par, for coin, +$15,000,000 four and a half per cent. bonds, or $5,000,000 during +each of the months of May, June and July, and $25,000,000 at par, +in coin, of four per cent. bonds, or $5,000,000 for each of the +months of August, September, October, November and December. Of +the coin thus received $4,000,000 had been sold for the redemption +of United States notes, and the residue was in the treasury. The +surplus revenue had also, under the same authority, been applied +to the redemption of the residue of United States notes, not redeemed +by the sale of coin, and the balance was held in the treasury in +preparation for resumption. + +These operations, aided greatly, no doubt, by the favorable condition +of our foreign commerce, had advanced the market value of United +States notes to ninety-seven and three-eighths per cent., or within +nearly two and a half per cent. of coin. They had also conclusively +demonstrated the practicability of restoring United States notes +to par, in coin, by the time fixed by law, and that without disturbing +either domestic or foreign trade or commerce. Every step had been +accompanied with growing business, with the advance of public +credit, and the steady appreciation of United States notes. The +export of bullion had been arrested, and our domestic supply had +accumulated in the treasury. The exportation of other domestic +products had been largely increased, with great advantage to all +industries. I said the course adopted under the resumption act, +if pursued, would probably be followed with like favorable results, +and a sufficient fund for the maintenance of resumption would +doubtless accumulate in the treasury at or before the date fixed +by law. + +I strongly urged the firm maintenance of a policy that would make +good the promise contained in the United States note when issued-- +a promise repeated in the act "To strengthen the public credit," +approved March 18, 1869, and made definite and effective by the +resumption act, and asserted that dishonored notes, less valuable +than the coin they promise, though justified by the necessity which +led to their issue, should be made good as soon as practicable; +that the public credit was injured by failure to redeem them; that +every holder who was compelled by law to receive them was deprived +of a part of his just due; that our national resources being ample, +the process of appreciation being almost complete, and the wisdom +of the law having been demonstrated, it was the dictate of good +policy and good faith to continue the process of preparation, so +that, at or before the time fixed by law, every United States note +would have equal purchasing power with coin; that to reverse this +policy in the face of assured success would greatly impair the +public credit, arrest the process of reducing the interest on the +public debt, and cause anew the financial distress our country had +recently suffered. + +The first section of the resumption act plainly provided for the +permanent substitution of silver coin for the whole amount of +fractional currency outstanding. Section 3 directed the permanent +reduction of United States notes to an amount not exceeding +$300,000,000. No distinct legislative declaration was made in the +resumption act that notes redeemed after that limit was reached +should not be reissued; but section 3579 of the Revised Statutes +of the United States provided that "when any United States notes +are returned to the treasury they may be reissued, from time to +time, as the exigencies of the public interest may require." + +I expressed in my report the opinion that, under this section, +notes, when redeemed after the 1st of January, 1879, if the amount +outstanding was not in excess of $300,000,000, might be reissued +as the exigencies of the public service required. A note redeemed +with coin was in the treasury and subject to the same law as if +received for taxes, or as a bank note, when redeemed by the +corporation issuing it. The authority to reissue it did not depend +upon the mode in which it was returned to the treasury. But this +construction was controverted, and I thought should be settled by +distinct provisions of law. It should not be open to doubt or +dispute. The decision of this question by Congress would involve +not merely the construction of existing law, but the public policy +of maintaining in circulation United States notes, either with or +without the legal tender clause. These notes were of great public +convenience--they circulated readily; were of universal credit; +were a debt of the people without interest; were protected by every +possible safeguard against counterfeiting; and, when redeemable in +coin at the demand of the holder, formed a paper currency as good +as had yet been devised. + +It was conceded, I said, that a certain amount could, with the aid +of an ample reserve in coin, be always maintained in circulation. +Should not the benefit of this circulation inure to the people, +rather than to corporations, either state or national? The government +had ample facility for the collection, custody, and care of the +coin reserves of the country. It was a safer custodian of such +reserves than a multitude of scattered banks would be. The authority +to issue circulating notes by banks was not given to the banks for +their benefit, but for the public convenience, and to enable them +to meet the ebb and flow of currency caused by varying crops, +productions, and seasons. It was indispensable that a power should +exist somewhere to issue and loan credit money at certain times, +and to redeem it at others. This function could be performed better +by corporations than by the government. The government could not +loan money, deal in bills of exchange, or make advances on property. + +I expressed the opinion, that the best currency for the people of +the United States would be a carefully-limited amount of United +States notes, promptly redeemable on presentation in coin, supported +by ample reserves of coin, and supplemented by a system of national +banks, organized under general laws, free and open to all, with +power to issue circulating notes secured by United States bonds, +deposited with the government and redeemable on demand in United +States notes or coin. Such a system would secure to the people a +safe currency of equal value in all parts of the country, receivable +for all dues, and easily convertible into coin. Interest could +thus be saved on so much of the public debt as could be conveniently +maintained in permanent circulation, leaving to national banks the +proper business of such corporations, of providing currency for +the varying changes, the ebb and flow of trade. + +I said that the legal tender quality given to United States notes +was intended to maintain them in forced circulation at a time when +their depreciation was inevitable. When they were redeemable in +coin this quality might either be withdrawn or retained, without +affecting their use as currency in ordinary times. But all experience +had shown that there were periods when, under any system of paper +money, however carefully guarded, it was impracticable to maintain +actual coin redemption. Usually contracts would be based upon +current paper money, and it was just that, during a sudden panic, +or an unreasonable demand for coin, the creditor should not be +allowed to demand payment in other than the currency upon which +the debt was contracted. To meet this contingency, it would seem +to be right to maintain the legal tender quality of the United +States notes. If they were not at par with coin it was the fault +of the government and not of the debtor, or, rather, it was the +result of unforseen stringency not contemplated by the contracting +parties. + +In establishing a system of paper money, designed to be permanent, +I said it should be remembered that theretofore no expedient had +been devised, either in this or other countries, that in times of +panic or adverse trade had prevented the drain and exhaustion of +coin reserves, however large or carefully guarded. Every such +system must provide for a suspension of specie payment. Laws might +forbid or ignore such a contingency, but it would come; and when +it came it could not be resisted, but had to be acknowledged and +declared, to prevent unnecessary sacrifice and ruin. In our free +government the power to make this declaration would not be willingly +intrusted to individuals, but should be determined by events and +conditions known to all. It would be far better to fix the maximum +of legal tender notes at $300,000,000, supported by a minimum +reserve of $100,000,000, of coin, only to be used for the redemption +of notes, not to be reissued until the reserve was restored. A +demand of coin to exhaust such a reserve might not occur, but, if +events should force it, the fact would be known and could be +declared, and would justify a temporary suspension of specie +payments. Some such expedient could, no doubt, be provided by +Congress for an exceptional emergency. In other times the general +confidence in these notes would maintain them at par in coin, and +justify their use as reserves of banks and for the redemption of +bank notes. + +As to the fractional currency I said the resumption act provided +for the exchange and substitution of silver coins for such currency. +To facilitate this exchange, the joint resolution, approved July +22, 1876, provided that such coin should be issued to an amount +not exceeding $10,000,000, for an equal amount of legal tender +notes. It also provided that the aggregate amount of such coin +and fractional currency outstanding should not exceed, at any time, +$50,000,000. That limit would have been reached if the whole amount +of fractional currency issued and not redeemed, had been held to +be "outstanding." It was well known, however, that a very large +amount of fractional currency issued had been destroyed, and could +not be presented for redemption, and could hardly be held to be +"outstanding." The Treasurer of the United States, the Comptroller +of the Currency, and the Director of the Mint concurred in estimating +the amount, so lost and destroyed, to be not less than $8,083,513. + +As it was evident that Congress intended to provide an aggregate +issue of $50,000,000 of such coin and currency in circulation, I +directed the further issue of silver coin, equal in amount to the +currency estimated to have been lost and destroyed. + +I recommended that the limitation upon the amount of such fractional +coin, to be issued in exchange for United States notes, be repealed. +The coin was readily taken, was in great favor with the people, +its issue was profitable to the government, and experience had +shown that there was no difficulty in maintaining it at par with +United States notes. The estimated amount of such coin in circulation +in the United States in 1860, at par with gold, was $43,000,000. +Great Britain, with a population of 32,000,000, maintained an +inferior fractional coin to the amount of $92,463,500, at par with +gold, and other nations maintained a much larger _per capita_ +amount. The true limit of such coin was the demand that might be +made for its issue, and if only issued in exchange for United +States notes there was no danger of an excess being issued. + +By the coinage act of 1873, any person might deposit silver bullion +at the mint to be coined into trade dollars of the weight of 420 +grains, troy, upon the payment of the cost of coinage. This +provision had been made at a time when such a dollar, worth in the +market $1.02-13/100 in gold, was designed for the use of trade in +China, where silver was the only standard. By the joint resolution +of July 22, 1876, passed when the trade dollar in market value, +had fallen greatly below one dollar in gold, it was provided that +it should not be thereafter a legal tender, and the Secretary of +the Treasury was authorized "to limit the coinage thereof to such +an amount as he may deem sufficient to meet the export demand for +the same." Under these laws the amount of trade dollars issued, +mainly for exportation, was $30,710,400. + +In October, 1877, it became apparent that there was no further +export demand for trade dollars, but deposits of silver bullion +were made, and such dollars were demanded of the mint for circulation +in the United States, that the owner might secure the difference +between the value of such bullion in the market and United States +notes. At the time the mints were fully occupied by the issue of +fractional, and other coins, on account of the government. Therefore, +under the authority of the law of 1876 referred to, I directed that +no further issues of trade dollars be made until necessary again +to meet an export demand. In case another silver dollar was +authorized, I recommended that the trade dollar be discontinued. + +The question of the issue of a silver dollar for circulation as +money had, previous to my report, been discussed and carefully +examined by a commission organized by Congress, which had recommended +the coinage of the old silver dollar. With such legislative +provisions as would maintain its current value at par with gold, +its issue was recommended by me. I thought a gold coin of the +denomination of one dollar was too small for convenient circulation, +while such a coin in silver would be convenient for a multitude of +daily transactions, and in a form to satisfy the natural instinct +of hoarding. + +I discussed the silver question to some length and said that of +the metals, silver was of the most general use for coinage. It +was a part of every system of coinage, even in countries where gold +was the sole legal standard. It best measured the common wants of +life, but, from its weight and bulk, was not a convenient medium +in the larger exchanges of commerce. Its production was reasonably +steady in amount. The relative market value of silver and gold +was far more stable than that of any other two commodities--still, +it did vary. It was not in the power of human law to prevent the +variation. This inherent difficulty had compelled all nations to +adopt one or the other as the sole standard of value, or to authorize +an alternative standard of the cheaper coin, or to coin both metals +at an arbitrary standard, and to maintain one a par with the other +by limiting the amount and legal tender quality of the cheaper +coin, and receiving or redeeming it at par with the other. + +It had been the careful study of statesmen for many years to secure +a bimetallic currency not subject to the changes of market value, +and so adjusted that both kinds could be kept in circulation +together, not alternating with each other. The growing tendency +had been to adopt, for coins, the principle of "redeemability" +applied to different forms of paper money. By limiting tokens, +silver, and paper money, to the amount needed for business, and +promptly receiving or redeeming all that might at any time be in +excess, all these forms of money could be kept in circulation, in +large amounts, at par with gold. In this way, tokens of inferior +intrinsic value were readily circulated, and did not depreciate +below the paper money into which they were convertible. The +fractional coin then in circulation, though the silver of which it +was composed was of less market value than the paper money, passed +readily among all classes of people and answered all the purposes +for which it was designed. And so the silver dollar, if restored +to our coinage, would greatly add to the convenience of the people. +But this coin should be subject to the same rule, as to issue and +convertibility, as other forms of money. If the market value of +the silver in it was less than that of gold coin of the same +denomination, and it was issued in unlimited qualities, and made +a legal tender for all debts, it would demonetize gold and depreciate +our paper money. + +The importance of gold as the standard of value was conceded by +all. Since 1834, it had been practically the sole coin standard +of the United States, and, since 1815, been the sole standard of +Great Britain. Germany had recently adopted the same standard. +France, and other Latin nations, had suspended the coinage of +silver, and, it was supposed, would gradually either adopt the sole +standard of gold, or provide for the convertibility of silver coin, +on the demand of the holder, into gold coin. + +In the United States, several experiments had been made with the +view of retaining both gold and silver in circulation. The 2nd +Congress undertook to establish the ratio of fifteen of silver to +one of gold, with free coinage of both metals. By this ratio gold +was under-valued, as one ounce of gold was worth more in the markets +of the world than fifteen ounces of silver, and gold, therefore, +was exported. To correct this, in 1837, the ratio was fixed at +sixteen to one, but sixteen ounces of silver were worth, in the +market, more than one ounce of gold, so that silver was demonetized. + +These difficulties in the adjustment of gold and silver coinage +had been fully considered by Congress, prior to the passage of the +act approved February 21, 1853. By that act a new, and it was +believed a permanent, policy was adopted to secure the simultaneous +circulation of both silver and gold coins in the United States. +Silver fractional coins were provided for at a ratio of 14.88 in +silver to one in gold, and were only issued in exchange for gold +coin. The right of private parties to deposit silver bullion for +such coinage was repealed, and these coins were issued from bullion +purchased by the Treasurer of the Mint, and only upon the account, +and for the profit, of the United States. The coin was a legal +tender only in payment of debts for all sums not exceeding five +dollars. Though the silver in this coin was then worth in the +market 3.13 cents on the dollar less than gold coin, yet its +convenience for use in change, its issue by the government only in +exchange for, and its practical convertibility into, gold coin, +maintained it in circulation at par with gold coin. If the slight +error in the ratio of 1792 prevented gold from entering into +circulation for forty-five years, and the slight error in 1837 +brought gold into circulation and banished silver until 1853, how +much more certainly would an error then of nine per cent. cause +gold to be exported and silver to become the sole standard of value? +Was it worth while to travel again the round of errors, when +experience had demonstrated that both metals could only be maintained +in circulation together by adhering to the policy of 1853? + +The silver dollar was not mentioned in the act of 1853, but from +1792 until 1874 it was worth more in the market than the gold dollar +provided for in the act of 1837. It was not a current coin +contemplated as being in circulation at the passage of the act of +February 12, 1873. The whole amount of such dollars, issued prior +to 1853, was $2,553,000. Subsequent to 1853, and until it was +dropped from our coinage in 1873, the total amount issued was +$5,492,838, and this was almost exclusively for exportation. + +By the coinage act approved February 12, 1873, fractional silver +coins were authorized, similar in general character to the coins +of 1853, but with a slight increase in silver in them, to make them +conform exactly to the French coinage, and the old dollar was +replaced by the trade dollar of 420 grains of standard silver. + +Much complaint had been made that this was done with the design of +depriving the people of the privilege of paying their debts in a +cheaper money than gold, but it was manifest that this was an error. +No one then did or could foresee the subsequent fall in the market +value of silver. The silver dollar was an unknown coin to the +people, and was not in circulation even on the Pacific slope, where +coin was in common use. The trade dollar of 420 grains was +substituted for the silver dollar of 412˝ grains because it was +believed that it was better adapted to supersede the Mexican dollar +in the Chinese trade, and experiment proved this to be true. Since +the trade dollar was authorized $30,710,400 had been issued, or +nearly four times the entire issue of old silver dollars since the +foundation of the government. Had not the coinage act of 1873 +passed, the United States would have been compelled to suspend the +free coinage of silver dollars, as the Latin nations were, or to +accept silver as the sole coin standard of value. + +Since February, 1873, great changes had occurred in the market +value of silver. Prior to that time the silver in the old dollar +was worth more than a gold dollar, while it was worth then, in +1877, about 92 cents. If by law any holder of silver bullion might +deposit in the mint and demand a full legal tender dollar for every +412˝ grains of standard silver deposited, the result would be +inevitable that as soon as the mints could supply the demand the +silver dollar would, by a financial law as fixed and invariable as +the law of gravitation, become the only standard of value. All +forms of paper money would fall to that standard or below it, and +gold would be demonetized and quoted at a premium equal to its +value in the markets of the world. For a time the run to deposit +bullion at the mint would give to silver an artificial value, of +which the holders and producers of silver bullion would have the +sole benefit. The utmost capacity of the mints would be employed +for years to supply this demand at the cost of, and without profit +to, the people. The silver dollar would take the place of gold as +rapidly as coined, and be used in the payment of customs duties, +causing an accumulation of such coins in the treasury. If used in +paying the interest on the public debt, the grave questions then +presented would arise with public creditors, seriously affecting +the public credit. + +It had been urged that the free coinage of silver in the United +States would restore its market value to that of gold. Market +value was fixed by the world, and not by the United States alone, +and was affected by the whole mass of silver in the world. As the +enormous and continuous demand for silver in Asia had not prevented +the fall of silver, it was not likely that the limited demand for +silver coin in this country, where paper money then was, and would +be, the chief medium of exchange, would cause any considerable +advance in its value. This advance, if any, would be secured by +the demand for silver bullion for coin, to be issued by and for +the United States, as well as if it were issued for the benefit of +the holder of the bullion. If the financial condition of our +country was so grievous that we must at every hazard have a cheaper +dollar, in order to lessen the burden of debts already contracted, +it would be far better, rather than to adopt the single standard +of silver, to boldly reduce the number of grains in the gold dollar, +or to abandon and retrace all efforts to make United States notes +equal to coin. Either expedient would do greater harm to the public +at large than any possible benefit to debtors. + +The free coinage of silver would also impair the pledge made of +the customs duties, by the act of February, 1862, for payment of +the interest of the public debt. The policy adhered to of collecting +these duties in gold coin, had been the chief cause of upholding +and advancing the public credit, and making it possible to lessen +the burden of interest by the process of refunding. + +In view of these considerations, I felt it to be my duty to earnestly +urge upon Congress the serious objections to the free coinage of +silver on such conditions as would demonetize gold, greatly disturb +all the financial operations of the government, suddenly revolutionize +the basis of our currency, throw upon the government the increased +cost of coinage, arrest the refunding of the public debt, and impair +the public credit, with no apparent advantage to the people at +large. + +I believed that all the beneficial results hoped for from a liberal +issue of silver coin could be secured by issuing this coin, in +pursuance of the general policy of the act of 1853, in exchange +for United States notes, coined from bullion purchased in the open +market, by the United States, and by maintaining it by redemption, +or otherwise, at par with gold coin. It could be made a legal +tender for such sums and on such contracts as would secure to it +the most general circulation. It could be easily redeemed in United +States notes and gold coin, and only reissued when demanded for +public convenience. If the essential quality of redeemability +given to the United States notes, bank bills, tokens, fractional +coins and currency, maintained them at par, how much easier it +would be to maintain the silver dollar, of intrinsic market value +nearly equal to gold, at par with gold coin, by giving to it the +like quality of redeemability. To still further secure a fixed +relative value of silver and gold, the United States might invite +an international convention of commercial nations. Even such a +convention, while it might check the fall of silver, could not +prevent the operation of that higher law which places the market +value of silver above human control. Issued upon the conditions +stated, I was of opinion that the silver dollar would be a great +public advantage, but that if issued without limit, upon the demand +of the owners of silver bullion, it would be a great public injury. + + +CHAPTER XXXII. +ENACTMENT OF THE BLAND-ALLISON SILVER LAW. +Amendments to the Act Reported by the Committee on Finance--Revival +of a Letter Written by Me in 1868--Explained in Letter to Justin +S. Morrill Ten Years Later--Text of the Bland Silver Bill as Amended +by the Senate and Agreed to by the House--Vetoed by President Hayes +--Becomes a Law Notwithstanding His Objections--I Decide to Terminate +the Existing Contract with the Syndicate--Subscriptions Invited +for Four per Cent. Bonds--Preparations for Resumption--Interviews +with Committees of Both Houses--Condition of the Bank of England +as Compared with the United States Treasury--Mr. Buckner Changes +His Views Somewhat. + +The President's message supported and strengthened the position +taken by me both in favor of the policy of resumption and against +the free coinage of silver provided for in the Bland bill. The +comments in the public press, both in the United States and in +Europe, generally sustained the position taken by the President +and myself. I soon had assurances that the Bland bill would not +pass the Senate without radical changes. Even the House of +Representatives, so recently eager to repeal the resumption act, +and so hasty and united for the free coinage of silver, had become +more conservative and would not have favored either measure without +material changes. I conversed with Mr. Allison and wrote him the +following letter: + + "Washington, D. C., December 10, 1877. +"Hon. W. B. Allison, U. S. Senate. + +"Dear Sir:--Permit me to make an earnest appeal to you to so amend +the silver bill that it will not arrest the refunding of our debt +or prevent the sale of our four per cent. bonds. I know that upon +you must mainly rest the responsibility of this measure, and I +believe that you would not do anything that you did not think would +advance the public service, whatever pressure might be brought to +bear upon you. + +"It is now perfectly certain that unless the customs duties and +the public debt--as least so much of it as was issued since February, +1873--are excepted, we cannot sell the bonds. The shock to our +credit will bring back from abroad United States bonds, and our +people will then have a chance to buy the existing bonds and we +cannot sell the four per cent. bonds. This will be a grievous loss +and damage to the administration and to our party, for which we +must be held responsible. You know I have been as much in favor +of the silver dollar as anyone, but if it is to be used to raise +these difficult questions with public creditors, it will be an +unmixed evil. + +"I wish I could impress you as I feel about this matter, and I know +you would then share in the responsibility, if there is any, in so +amending this bill that we can have all that is good out of it +without the sure evil that may come from it if it arrests our +funding and resumption operations. + + "With much respect, yours, etc. + "John Sherman. + +The amendments to the Bland bill proposed by Mr. Allison from the +committee on finance, completely revolutionized the measure. The +Senate committee proposed to strike out these words in the House +bill: + +"And any owner of silver bullion may deposit the same at any coinage +mint or assay office, to be coined into such dollars, for his +benefit, upon the same terms and conditions as gold bullion is +deposited for coinage under existing laws." + +And to insert the following: + +"And the Secretary of the Treasury is authorized and directed, out +of any money in the treasury not otherwise appropriated, to purchase, +from time to time, at the market price thereof, not less than +$2,000,000 per month, nor more than $4,000,000 per month, and cause +the same to be coined into such dollars. And any gain or seigniorage +arising from this coinage shall be accounted for and paid into the +treasury, as provided under existing laws relative to the subsidiary +coinage: _Provided_, that the amount of money at any one time +invested in such silver bullion, exclusive of such resulting coin, +shall not exceed $5,000,000." + +These amendments were agreed to. + +Sections two and three of the bill were added by the Senate. The +bill, as amended, was sent to the House of Representatives, and +the Senate amendments were agreed to. The bill as amended was as +follows; + +"AN ACT TO AUTHORIZE THE COINAGE OF THE STANDARD SILVER DOLLAR, +AND TO RESTORE ITS LEGAL TENDER CHARACTER. + +"_Be it enacted by the Senate and House of Representatives of the +United States of America in Congress assembled_, That there shall +be coined, at the several mints of the United States, silver dollars +of the weight of four hundred and twelve and a half grains troy of +standard silver, as provided in the act of January eighteenth, +eighteen hundred thirty-seven, on which shall be the devices and +superscriptions provided by said act; which coins, together with +all silver dollars heretofore coined by the United States, of like +weight and fineness, shall be a legal tender, at their nominal +value, for all debts and dues, public and private, except where +otherwise expressly stipulated in the contract. And the Secretary +of the Treasury is authorized and directed to purchase, from time +to time, silver bullion, at the market price thereof, not less than +two million dollars worth per month, nor more than four million +dollars worth per month, and cause the same to be coined monthly, +as fast as so purchased, into such dollars; and a sum sufficient +to carry out the foregoing provision of this act is hereby appropriated +out of any money in the treasury not otherwise appropriated. And +any gain or seigniorage arising from this coinage shall be accounted +for and paid into the treasury, as provided under existing laws +relative to the subsidiary coinage: _Provided_, That the amount +of money at any one time invested in such silver bullion, exclusive +of such resulting coin, shall not exceed five million dollars: +_And provided further_, That nothing in this act shall be construed +to authorize the payment in silver of certificates of deposit issued +under the provisions of section two hundred and fifty-four of the +Revised Statutes. + +"Sec. 2. That immediately after the passage of this act, the +President shall invite the governments of the countries composing +the Latin union, so-called, and of such other European nations as +he may deem advisable, to join the United States in a conference +to adopt a common ratio between gold and silver, for the purpose +of establishing, internationally, the use of bimetallic money, and +securing fixity of relative value between those metals; such +conference to be held at such place, in Europe or in the United +States, at such time within six months, as may be mutually agreed +upon by the executives of the governments joining in the same, +whenever the governments so invited, or any three of them, shall +have signified their willingness to unite in the same. + +"The President shall, by and with the advice and consent of the +Senate, appoint three commissioners, who shall attend such conference +on behalf of the United States, and shall report the doings thereof +to the President, who shall transmit the same to Congress. + +"Said commissioners shall each receive the sum of two thousand five +hundred dollars and their reasonable expenses, to be approved by +the Secretary of State; and the amount necessary to pay such +compensation and expenses is hereby appropriated out of any money +in the treasury not otherwise appropriated. + +"Sec. 3. That any holder of the coin authorized by this act may +deposit the same with the treasurer or any assistant treasurer of +the United States in sums not less than ten dollars, and receive +therefor certificates of not less than ten dollars each, corresponding +with the denominations of the United States notes. The coin +deposited for or representing the certificates shall be retained +in the treasury for the payment of same upon demand. Said certificates +shall be receivable for customs, taxes, and all public dues, and, +when so received, may be reissued. + +"Sec. 4. All acts and parts of acts inconsistent with the provisions +of this act are hereby repealed." + +It was sent to the President, and was disapproved by him. His veto +message was read in the House on the 28th of February, and upon +the question whether the bill should pass, the objections of the +President notwithstanding, it was adopted by a vote of yeas 196, +nays 73. It passed the Senate on the same day, by a vote of yeas +46, nays 19, and thus became a law. + +I did not agree with the President in his veto of the bill, for +the radical changes made in its terms in the Senate had greatly +changed its effect and tenor. The provisions authorizing the +Secretary of the Treasury to purchase not less than $2,000,000 +worth of silver bullion per month, at market price, and to coin it +into dollars, placed the silver dollars upon the same basis as the +subsidiary coins, except that the dollar contained a greater number +of grains of silver than a dollar of subsidiary coins, and was a +legal tender for all debts without limit as to amount. The provision +that the gain or seigniorage arising from the coinage should be +accounted for and paid into the treasury, as under the existing +laws relative to subsidiary coinage, seemed to remove all serious +objections to the measure. In view of the strong public sentiment +in favor of the free coinage of the silver dollar, I thought it +better to make no objections to the passage of the bill, but I did +not care to antagonize the wishes of the President. He honestly +believed that it would greatly disturb the public credit to make +a legal tender for all amounts, of a dollar, the bullion of which +was not of equal commercial value to the gold dollar. + +The provision made directing the President to invite the governments +of the countries composing the Latin Union, and of such other +European countries as he deemed advisable, to unite with the United +States in adopting a common ratio between gold and silver, has been +made the basis of several conferences which have ended without any +practical result, and the question of a single or double standard +still stands open as the great disturbing question of public policy, +affecting alike all commercial countries. + +While this measure was pending in the Senate, a casual letter +written by me ten years previously was frequently quoted, as evidence +that I was then in favor of paying the bonds of the United States +with United States notes, at that date at a large discount in coin. +The letter is as follows: + + "United States Senate Chamber,} + "Washington, March 20, 1868. } +"Dear Sir:--I was pleased to receive your letter. My personal +interests are the same as yours, but, like you, I do not intend to +be influenced by them. My construction of the law is the result +of a careful examination, and I feel quite sure an impartial court +would confirm it, if the case could be tried before a court. I +send you my views, as fully stated in a speech. Your idea is that +we propose to repudiate or violate a promise when we offer to redeem +the 'principal' in 'legal tender.' I think the bondholder violates +his promise when he refuses to take the same kind of money he paid +for the bonds. If the coin is to be tested by the law, I am right; +if it is to be tested by Jay Cooke's advertisements, I am wrong. +I hate repudiation, or anything like it, but we ought not to be +deterred from doing what is right by fear of undeserved epithets. +If, under the law as it now stands, the holder of the 5-20's can +only be paid in gold, then we are repudiators if we propose to pay +otherwise. If, on the other hand, the bondholder can legally demand +only the kind of money he paid, he is a repudiator and an extortioner +to demand money more valuable than he gave. + + "Your truly, + "John Sherman. +"Hon. A. Mann, Jr., Brooklyn Heights." + +On the 26th of March, 1878, I wrote the following letter to Senator +Justin S. Morrill, which was read by him in the debate, and, I +think, was a conclusive answer to the erroneous construction put +upon my letter to Mann: + +"My Dear Sir:--Your letter of the 24th inst. is received. I have +noticed that my casual letter to Dr. Mann, of the date of March +20, 1868, inclosing a speech made by me, has been frequently used +to prove that I have changed my opinion since that time as to the +right of the United States to pay the principal of the 5-20 bonds +in legal tenders. This would not be very important, if true, but +it is not true, as I never have changed my opinion as to the +technical legal right to redeem the principal of the 5-20 bonds in +legal tenders, but, as you know and correctly state, have always +insisted that we could not avail ourselves of this legal right +until we complied, in all respects, with the legal and moral +obligations imposed by the legal tender note, to redeem it in coin +on demand or to restore the right to convert it into an interest- +bearing government bond. The grounds of this opinion are very +fully stated in the speech made February 27, 1868, referred to in +the letter to Dr. Mann, and in a report on the funding bill made +by me from the committee on finance, December 7, 1867. + +"If my letter is taken in connection with the speech which it +inclosed and to which it expressly referred, it will be perceived +that my position there is entirely consistent with what it is now, +and time has proven that, if the report of the committee on finance +had been adopted, we would long since have reached the coin standard, +with an enormous saving of interest, and without impairing the +public credit. My position was, that while the legal tender act +made United States notes a legal tender for all debts, private and +public, except for customs duties and interest of the public debt, +yet we could not honestly compel the public creditors to receive +United States notes in the payment of bonds until we made good the +pledge of the public faith to pay the notes in coin. That promise +was printed on the face of the notes when issued, was repeated in +several acts of Congress, and was declared valid and obligatory by +the Supreme Court. + +"From the first issue of the legal tender note, which I heartily +supported and voted for, I have sought to make it good, to support, +maintain and advance its value. It was in the earnest effort to +restore to the greenback the right to be converted, on the demand +of the holder, into a five per cent. bond and, as soon as practicable, +into coin, that I made the speech referred to, resisting alike the +demand of those who wished to exclude United States notes from the +operation of funding and the large class of persons who wished to +cheapen, degrade and ultimately repudiate them. In all my official +connection with legislation as to legal tender notes, I have but +one act to regret and to apologize for, and that is my acquiescence +in the act of March 3, 1863, which, under the pressure of war and +to promote the sale of bonds, took away from the holders of these +notes the right to convert them into interest-bearing securities. +This right might properly have been suspended during the war, but +its repeal was a fatal act, the source and cause of all the financial +evils we have suffered and from which we cannot recover until we +restore that right or redeem on demand our notes in coin. + +"The speech referred to, and which I have recently read by reasons +of the reference to it in the letter to Dr. Mann, will clearly show +that I have not been guilty of inconsistency or a change of opinion +--the most pardonable of all offenses--but then insisted, as I now +insist, that no discrimination should be made against the note +holder, but that until we are ready to pay him in coin he should +be allowed, at his option, to convert his money into a bond at par. +Until then our notes are depreciated by our wrongful act, and we +have no right to take advantage of our own wrong by forcing upon +the bondholders the notes we refuse to receive. This is the precise +principle involved in the act to strengthen the public credit, +approved March 18, 1869. That act did not in any respect change +the legal and moral obligations of the United States, but expressly +provides that none of the interest-bearing obligations not already +due shall be redeemed or paid before maturity, unless at such time +as the United States notes shall be convertible into coin, at the +option of the holder. And the act further 'solemnly pledges the +public faith to make provisions, at the earliest practicable period, +for the redemption of United States notes in coin.' + +"This is in exact harmony with the position I held when I wrote +the letter to Dr. Mann and that I now maintain, the primary principle +being that the United States notes shall first be brought to par +in coin before they shall be forced upon the public creditor in +payment of his bonds. This act is the settled law, and whatever +any man's opinions were before it passed, he would assume a grave +responsibility who would seek to evade its terms, weaken its +authority or change its provisions. It has entered into every +contract made since that time. It has passed the ordeal of four +Congresses and two elections for Presidents. It cannot be revoked +without public dishonor. So far as the bondholder is concerned, +it is an executed law. Over $700,000,000 of bonds have been redeemed +in coin under it, and the civilized world regards all the remainder +as covered by its sanction, and in their faith in it our securities +have become the second only in the markets of the world. This law +is not yet quite executed so far as the note holder is concerned. +His note is not yet quite as good as coin. Congress has debated +ever since its passage the best mode to make it good. The Senate +in 1870 provided, in the third section of the refunding act, as it +passed that body, that these notes might be converted into four +per cent. bonds, but the House would not concur. Everybody can +now see that if this had been done these notes would now be at par +in coin. Other expedients were proposed, and finally the resumption +act was passed, and, if undisturbed, is now on the eve of execution. + +"The promise made in 1862, and so often repeated, is about to be +fulfilled. Agitation on collateral questions may delay it, but +the obligation of public faith, written on the face of every United +States note and sacredly pledged by the act to strengthen the public +credit, will give us neither peace nor assured prosperity until it +is fulfilled. Public opinion may vibrate, and men and parties may +array themselves against the fulfillment of these public promises, +but in time they will be fulfilled, and I think the sooner the +better. Pardon me for this long answer to your note, but I have +no time to condense it. + + "Very respectfully, + "John Sherman." + +Relief from the fear of the enactment of the Bland bill, and the +limitation of the amount of silver dollars to be coined, removed +the great impediment to the sale of four per cent. bonds, for +refunding purposes, and the progress toward specie payments. + +As already indicated, I had concluded to terminate the existing +contract with the syndicate, and to make the sales directly through +national bank depositaries, and the treasury and sub-treasuries of +the United States. I therefore gave August Belmont & Co. the +following notice: + + "Treasury Department, January 14, 1878. +"Messrs. August Belmont & Co., New York. + +"Gentlemen:--In compliance with the second clause of the contract +between the Secretary of the Treasury and yourselves and associates, +of the date of June 9, 1877, for the sale of four per cent. bonds, +I give you notice that from and after the 26th day of January +instant that contract is terminated. It is the desire of the +President, in which I concur, to open subscriptions in the United +States to the four per cent. bonds in a different way from that +provided in our contract, and therefore this notice is given. I +sincerely hope to have your active co-operation in the new plan, +and am disposed, if you are willing, to continue in substance, by +a new contract with you, the sale of these bonds in European markets, +and invite your suggestions to that end. + + "Very respectfully, + "John Sherman, Secretary." + +I received from them the following answer: + + "New York, January 15, 1878. +"Hon. John Sherman, Secretary of the Treasury, Washington. + +"Dear Sir:--We beg to acknowledge receipt of your favor of the 14th +instant, notifying us of the termination of the contract of June +9, 1877, for the sale of four per cent. bonds, on the 29th of this +month, which we have communicated to the associates here and in +London. + +"We have also communicated to our friends in London your willingness +to continue the contract for the sale of the four per cent. bonds +in Europe, with such modifications as may become necessary, and as +soon as we have received their views we shall take pleasure in +writing to you again for the purpose of appointing a conference on +the subject. + +"In the meantime, we remain, very respectfully, + + "Aug. Belmont & Co." + +Notice was given to Mr. Conant of the termination of the contract, +but he was advised by me that we would probably agree to the +continuance of the syndicate in the European markets. He had +expressed to me a fear that a panic would occur about our bonds in +Europe, on account of the anticipated passage of the Bland bill, +but I was able to assure him that it would not become a law in the +form originally proposed. + +Being thus free from all existing contracts, I published the +following notice inviting subscriptions to the four per cent. bonds: + + "Treasury Department, } + "Washington, D. C., January 16, 1878.} +"The Secretary of the Treasury hereby gives notice that, from the +26th instant, and until further notice, he will receive subscriptions +for the four per cent. funded loan of the United States, in +denominations as stated below, at par and accrued interest, in coin. + +"The bonds are redeemable July, 1907, and bear interest, payable +quarterly, on the first day of January, April, July, and October, +of each year, and are exempt from the payment of taxes or duties +to the United States, as well as from taxation in any form by or +under state, municipal, or local authority. + +"The subscriptions may be made for coupon bonds of $50, $100, $500, +and $1,000, and for registered bonds of $50, $100, $500, $1,000, +$5,000, and $10,000. + +"Two per cent. of the purchase money must accompany the subscription; +the remainder may be paid at the pleasure of the purchaser, either +at the time of subscription or within thirty days thereafter, with +interest on the amount of the subscription, at the rate of four +per cent. per annum, to date of payment. + +"Upon the receipt of full payment, the bonds will be transmitted, +free of charge, to the subscribers, and a commission of one-fourth +of one per cent. will be allowed upon the amount of subscriptions, +but no commission will be paid upon any single subscription less +than $1,000. + +"Forms of application will be furnished by the treasurer at +Washington, the assistant treasurers at Baltimore, Boston, Chicago, +Cincinnati, New Orleans, New York, Philadelphia, St. Louis, and +San Francisco, and by the national banks and bankers generally. +The applications must specify the amount and denominations required, +and, for registered bonds, the full name and post office address +of the person to whom the bonds shall be made payable. + +"The interest on the registered bonds will be paid by check, issued +by the treasurer of the United States, to the order of the holder, +and mailed to his address. The check is payable on presentation, +properly indorsed, at the offices of the treasurer and assistant +treasurers of the United States. + +"Payments for the bonds may be made in coin to the treasurer of +the United States at Washington, or the assistant treasurers at +Baltimore, Boston, Chicago, Cincinnati, New Orleans, New York, +Philadelphia, St. Louis, and San Francisco. + +"To promote the convenience of subscribers, the department will +also receive, in lieu of coin, called bonds of the United States, +coupons past due or maturing within thirty days, or gold certificates +issued under the act of March 3, 1863, and national banks will be +designated as depositaries under the provisions of section 5153, +Revised Statutes of the United States, to receive deposits on +account of this loan, under regulations to be hereafter prescribed. + + "John Sherman, Secretary of the Treasury." + +After the publication of this notice inviting subscriptions to the +four per cent. bonds, I found that the chief impediment in my way +was the apparent disposition of both Houses of Congress to require +the called bonds to be paid in United States notes. This was not +confined to any party, for, while the majority of the Democrats of +each House were in favor of such payment, many of the prominent +Republicans were fully committed to the same policy. I was requested +by committees of the two Houses, from time to time, to appear before +them, which, in compliance with the law, I cheerfully did, and +found that a free and unrestricted statement of what I proposed to +do was not only beneficial to the public service, but soon induced +Congress not to interfere with my plans for resumption. My first +interview was on the 11th of March, 1878, with the committee on +coinage of the House, of which Alexander H. Stephens, of Georgia, +was chairman. I was accompanied by H. R. Linderman, Director of +the Mint. The notes of the conference were ordered by the House +of Representatives to be printed, and the committee was convinced +of the correctness of the statements in regard to the amount of +actual coin and bullion on hand, and where it was situated, which +had been previously doubted. + +On the 19th of March, I had an interview with the Senate committee +on finance, of which Mr. Morrill, of Vermont, was chairman. I was +examined at great length and detail as to the preparations for +resumption, and the actual state of the treasury at that time. +The principal topic discussed was whether the four per cent. bonds +could be sold, Mr. Bayard being evidently in favor of the substitution +of the four and a half per cents. for the four per cent. bonds I +had placed on the market. The question of how to obtain gold coin +and bullion was fully considered in this interview, and here I was +able to convince the committee that a purchase of domestic gold +coin and bullion would meet all the requirements of the treasury, +and that no necessity existed for the purchase of gold abroad. +This interview, which covers over twenty printed pages, I believe +entirely satisfied the committee of the expediency of the steps +taken by me and their probable success. After this interview I +had the assistance of the committee of finance, without regard to +party, in the measures adopted by me. Mr. Bayard and Mr. Kernan +gave me their hearty support, and Mr. Voorhees made no unfriendly +opposition. The report of this interview was subsequently published, +and had a good effect upon the popular mind. + +By far the most important interview was one with the committee on +banking and currency, of the House of Representatives, of which A. +H. Buckner, of Missouri, was chairman. A large majority of this +committee had reported a bill to repeal the resumption act, and +the members of the committee of each party were among the most +pronounced greenbackers in the House of Representatives. Perhaps +the most aggressive was Thomas Ewing, a friend, and by marriage a +relative of mine, a Member of ability and influence, and thoroughly +sincere in his convictions against the policy of resumption. I +was summoned before this committee to answer a series of interrogatories +furnished me a few days previously, calling for statements as to +the actual amount of gold and silver belonging to, and in the +custody of, the treasury department on the 28th of March, where +located and what deductions were to be made from it, on account of +actual existing demands against it. This interview, extending +through several days, and covering seventy-three printed pages, +embraced every phase of the financial condition of the United +States, and the policy of the treasury department in the past and +in the future. At the end of the first day the principal question +seemed to be whether it was possible that the United States could +resume specie payments and maintain them. This led to a careful +scrutiny of the amount of gold in the treasury, Mr. Ewing assuming +that a portion of the amount stated was "phantom" gold, and was +really not available for the purposes of resumption. I said that +the United States would be, on the 1st of January, in a better +condition to resume specie payments than the Bank of England was +to maintain them, and gave my reasons for that opinion. I saw that +Mr. Ewing regarded this statement as an exaggeration. + +After the adjournment I understood that Mr. Ewing said that I was +grossly in error, and that he would be able to show it by authentic +documents as to the condition of the Bank of England. He said that +I was laboring under delusions, which he would be able to expose +at the next meeting. When we again met with the full committee +present, Mr. Ewing said: + +"I ask your attention to a comparison of the condition of the +treasury for resumption with the condition of the Bank of England +in 1819 and now, with the Bank of France this year, and with the +banks of the United States in 1857 and 1861." + +To this I replied: + +"When I said the other day that I thought the condition of the +treasury, on the 1st of January next, would be as good as the Bank +of England, I had not then before the actual figures or tables, +but only spoke from a general knowledge of the facts. Since then +I have given the matter a good deal of attention, and now have some +carefully prepared tables, founded upon late information, giving +the exact comparison of the condition of the Bank of England, the +Bank of France, the Bank of Germany, the Bank of Belgium, the +national banks, and the treasury. These tables will show that +pretty accurately." + +I handed the tables to the committee, and they are printed with +the report. I then proceeded to show in detail that while the Bank +of England had notes outstanding to the amount of Ł38,698,020, it +had on hand as assets: Government debt, Ł11,015,100; other +securities, Ł3,984,900; gold coin and bullion, Ł23,698,020; that +upon this it was apparent that in the issue department the Bank of +England was stronger than the United States; but in the banking +department, the bank was liable for deposits, the most dangerous +form of liability, and various other forms of liability, to the +amount of Ł46,277,277. To pay these it had government securities, +notes and other securities and Ł1,032,773 gold and silver coin, in +all amounting to Ł46,277,277. Combining these accounts it was +shown that the demand liabilities on the bank were Ł54,639,171, +while the gold and bullion on hand was only Ł24,730,793. Then I +said: + +"Now, in regard to the United States, I have a statement here +showing the apparent and probable condition of the United States +treasury on April 1, 1878, and on the 1st of January next. The +only difference in these statements is that I add to the present +condition of the treasury the proposed accumulation of fifty millions +of coin and a substantial payment before that of the fractional +currency. I think it will be practically redeemed before that +time. The actual results show the amount of demand liabilities on +April 1, 1878, against the United States, as $460,527,374, and they +show the demand resources, including coin and currency, at +$174,324,459, making the percentage of resources to liabilities +thirty-seven. To show the probable condition of the treasury on +the 1st of January, 1879, I add the fifty millions of coin and I +take off the fractional currency, and deducted estimated United +States notes lost and destroyed, leaving the other items about the +same. That would show an aggregate of probable liabilities of +$35,098,400 and probable cash resources of $224,324,459, making +fifty-one per cent. of the demand liabilities. The ratio of the +Bank of England, at this time, is forty-five per cent.; the ratio +of the Bank of France, is sixty-five per cent.; the ratio of the +Bank of Germany, is fifty-eight per cent.; and the ratio of the +Bank of Belgium, is twenty-five per cent., all based upon the same +figures." + +I gave the statistics as to the condition of the national banks, +showing their assets and liabilities, that they were not bound to +redeem their notes in gold or silver, but could redeem them in +United States notes, of which they had on hand $97,083,248, and +besides they had deposited in the treasury, as security for their +notes, an amount of United States bonds ten per cent. greater than +the entire amount of their circulating notes, and that these bonds +were worth in the market a large premium in currency. In addition +to the legal tenders on hand, they had five per cent. of their +circulation in legal tender notes deposited in the treasury as a +redemption fund, amounting to $15,028,340. They had also on hand +gold and silver coin and gold certificates amounting to $32,907,750, +making a total cash reserve of $145,019,338. The ratio of their +legal tender funds to circulation was 48.4; ratio of legal tenders +to circulation and deposits, 15.1. + +In this interview I explicitly stated to the committee my purpose +to sell bonds, under the resumption act, at the rate of $5,000,000 +a month, to the aggregate amount of $50,000,000; that I was satisfied +I could make this sale upon favorable terms, and could add to the +coin then in the treasury the sum of $50,000,000 gold coin, which +I thought sufficient to secure and maintain the parity of our notes +with coin. Mr. Ewing inquired: + +"Where do you expect to get the additional fifty millions of gold +by January 1, 1879?" + +My answer was as follows: + +"You must see that for me to state too closely what I propose to +do might prevent me from doing what I expect to do, and therefore +I will answer your question just as far as I think you will say I +ought to go. I answer, mainly from the sale of bonds. Indeed, in +the present condition of the revenue, we cannot expect much help +from surplus revenue, except so far as that surplus revenue may be +applied to the payment of greenbacks and to the redemption of +fractional currency in aid of the sinking fund. To that extent I +think we can rely upon revenue enough to retire the United States +notes redeemed under the resumption act; so that I would say that +we can get the $50,000,000 of gold additional by the sale of bonds. +As to the kind of bonds that I would sell, and as to how I would +sell them, etc., I ought not to say anything on that subject at +present, because you ought to allow me, as an executive officer, +in the exercise of a very delicate discretion, free power to act +as I think right at the moment, holding me responsible for my action +afterward. As to what bonds I will sell, or where I will sell +them, or how I will sell them, as that is a discretionary power +left with the secretary, I ought not to decide that now, but to +decide it as the case arises." + +Some question was made by Mr. Ewing as to the ability to sell bonds, +and he asked: + +"I understood you to say in your interview with the Senate committee +that you would have to rely upon the natural currents of trade to +bring gold from aborad; that is, that there cannot be a large sale +of bonds for coin abroad. Is it on a foreign sale that you are +relying?" + +I replied: + +"Not at all, but on a sale at home. Perhaps I might as well say +that if I can get two-thirds of this year's supply of gold and +silver from our own mines, it will amount to a good deal more that +$50,000,000, so that I do not have to go abroad for gold. If we +can keep our own gold and silver from going abroad, it is more than +I want." + +Mr. Buckner inquired: + +"For this $50,000,000 additional I suppose you rely, to some extent, +on the coinage of silver?" + +I said: + +"To some extent; silver and gold we consider the same under the +law." + +Mr. Ewing asked: + +"Do you expect to pay out the silver dollar coined by you for +current expenses, or only for coin liabilities, or to hoard it for +resumption?" + +I said: + +"I expect to pay it out now only in exchange for gold coin or for +silver bullion. I am perfectly free and answer the question fully, +because on that point, after consulting with many Members of both +Houses, I have made up my mind what the law requires me to do. I +propose to issue all the silver dollars that are demanded in exchange +for gold coin. That has been going on to some extent; how far I +cannot tell. Then I propose to use the silver in payment for silver +bullion, which I can do at par in gold. I then propose to buy all +the rest of the silver bullion which I need, under the law, with +silver coin. As a matter of course, in the current course of +business, some of that silver coin will go into circulation; how +much, I do not know. The more, the better for us. But most of +it, I take it, will be transferred to the treasury for silver +certificates (that seems to be the idea of the bill), and those +silver certificates will come into the treasury in payment of +duties, and in that way, practically, the silver will belong to +the government again." + +Some question arose as to the reissue of treasury notes under the +resumption act. I expressed my opinion that all notes not in excess +of $300,000,000 could be reissued under existing laws, but as to +whether notes in excess of $300,000,000 could be reissued was a +question which I hoped Congress would settle, that I considered +the law as doubtful. Congress did subsequently suspend the retirement +of United States notes at $346,000,000. + +The sinking fund and many other subjects were embraced in this +interview, the importance of which would justify a fuller statement +than I have given, but, as the interview has been published as a +public document, I do not give further details. I stated frankly +and explicitly what I intended to do if not interrupted by Congress. +I felt assured, not only from the Senate, but from what I could +learn from Members of the House, that no material change of existing +law would be made to prevent the proposed operations of the treasury +department. From that time forward I had not the least doubt of +success in preparing for and maintaining resumption, and refunding, +at a lower rate of interest, all the public debt then subject to +redemption. + +I think I entirely satisfied the committee that the government was +not dealing with shadows, but had undertaken a task which it could +easily accomplish, if not prevented by our common masters, the +Congress of the United States. It was said of Mr. Buckner that +before I appeared before the committee, he regarded me as a visionary +enthusiast, who had undertaken to do what was impossible to be +done, that after the first day of the examination he came to the +conclusion that I was honest in my belief that resumption was +possible, but he did not believe in my ability to do what was +proposed; at the end of the second day he expressed some doubts of +the ability to resume, but said that the object aimed at was a good +one, and he was not disposed to interfere with the experiment; and +on the third day he said he believed I had faith in the success of +resumption, and would not interfere with it, but if I failed I +would be the "deadest man politically" that ever lived. + + +CHAPTER XXXIII. +SALE OF BONDS FOR RESUMPTION PURPOSES. +Arrangements Begun for the Disposal of $50,000,000 for Gold or +Bullion--Interviews with Prominent Bankers in New York--Proposition +in Behalf of the National Banks--Terms of the Contract Made with +the Syndicate--Public Comment at the Close of the Negotiations-- +"Gath's" Interview with Me at the Completion of the Sale--Eastern +Press Approves the Contract, While the West Was Either Indifferent +or Opposed to it--Senate Still Discussing the Expediency of Repealing +the Resumption Act--Letter to Senator Ferry--Violent and Bitter +Animosity Aroused Against Me--I Am Charged with Corruption--Interview +with and Reply to Letter of Peter Cooper--Clarkson N. Potter's +Charges. + +The general results of these interviews, which had a wide circulation +at the time, I believe were beneficial, and at least assured the +public that a hopeful and determined effort was being made to +advance United States notes and national bank notes to par with +coin. + +Before I had these interviews I had determined to sell $50,000,000 +bonds at the rate of $5,000,000 a month for gold coin or bullion +for resumption purposes, and also to press the refunding operations +as rapidly as possible. I had at my disposal an unlimited amount +of five, four and a half and four per cent. bonds, with authority +to sell either kind to accumulate coin for the maintenance of +resumption, or for the payment of bonds that were at the time +redeemable, bearing a higher rate of interest. My printed +correspondence with banks and bankers shows the advancing value of +the four and four and a half per cent. bonds. The most active +agent for the sale of these bonds was the First National Bank of +New York, which had been the agent of the syndicate, and, though +having no privilege or facility that was not extended to all banks +and bankers alike, it evinced the utmost activity, intelligence +and success, and took the lead in the sale of bonds. The advancing +quotations furnished by it and other banks and bankers satisfied +me that the policy of an open loan, such as was provided for by +the notice of January 18, 1878, would be successful, if only we +could have the certainty of coin payments by the 1st of January, +1879. I knew of the sensitive jealousy between the banks and +bankers and between the old syndicate and prominent and wealthy +firms who wished to participate in any new syndicate, and were +jealous and suspicious of each other. + +Offers were made to me by banks and bankers for special arrangements +for the purchase of bonds, but I put them all aside until after I +had written to all the parties a notice substantially similar to +the following, sent to Belmont & Co.: + + "Treasury Department, April 5, 1878. +"Gentlemen:--It is my purpose to be in New York at four o'clock on +Monday afternoon, and I would like, if practicable, to meet the +members of the old syndicate at the Fifth Avenue Hotel that evening +at any hour convenient to them, to confer as to the best mode of +obtaining $50,000,000 gold coin or bullion prior to January 1, +1879, for resumption purposes, and to receive from the associates, +or any of them, or from new parties, offers for any of the description +of bonds I am authorized to sell for that purpose. + +"I propose to accumulate this coin in either the treasury, the +assay offices, or the public depositaries throughout the United +States that will comply with the conditions of section 5153 Revised +Statutes. + +"I will send a similar letter to this to the First National Bank, +and have to request that you will give notice to the other members +of the old syndicate, and, with their consent, to any others you +desire to participate in the interview. + + "Very respectfully, + "John Sherman, Secretary. +"Messrs. August Belmont & Co., New York." + +I sent General Hillhouse the following notice: + + "Treasury Department, April 5, 1878. +"Sir:--You will please inform Messrs. H. F. Vail, president National +Bank of Commerce; J. D. Vermilye, president Merchants' National +Bank; George S. Coe, president American Exchange National Bank; B. +B. Sherman, Mechanics' National Bank, and James Buell, president +Importers and Traders' National Bank, that I desire an interview +with them at any hour on Tuesday next, at your office, or at such +other places as they may prefer, in respect to the purchase for +the Treasury for resumption of, say, $50,000,000 gold coin or +bullion, to be delivered monthly and before the 1st of January +next, either at your office or at the designated depositaries of +the United States, under section 5153 Revised Statutes, and also, +if practicable, to secure from them a bid for either of three +classes of bonds described in the refunding act to an amount +sufficient to purchase the coin stated. These gentlemen are +respectfully requested to select such others connected with national +banks as they may agree upon to join in the interview. + + "Very respectfully, + "John Sherman, Secretary. +"General Thomas Hillhouse, + "Assistant Treasurer United States, New York." + +Regarding the negotiation as one of great importance, I was +accompanied to New York by Hon. Charles Devens, Attorney General; +John Jay Knox, Comptroller of the Currency; Charles F. Conant, +Assistant Secretary; Daniel Baker, Chief of the Loan Division, and +E. J. Babcock, my Secretary. + +On the 8th of April I, with the gentlemen named, had an interview +with the members of the old syndicate, Messrs. Belmont, Seligman, +Bliss, Fabri and Fahnestock. + +I stated that the object of my visit to New York, and of my request +for an interview with the associates, was to obtain $50,000,000 +coin for resumption purposes, and I would like to sell four per +cent. bonds to that amount. + +Mr. Belmont did not think the four per cent. bonds could be sold +then, and the associates all concurred in the opinion that they +would prefer making a proposition for the four and a halfs, although +they were not prepared to make any definite offer. I said I would +like to get 103 for the four and a halfs, but the associates said +they would not consider that at all; they would communicate with +the Rothschilds and others, and might possibly be able to offer +101; they would come to some conclusion by next day. + +On the following day, at the National Bank of Commerce, I met the +presidents of the national banks: Mr. Vail, Commerce; Mr. Vermilye, +Merchants'; Mr. Coe, Merchants' Exchange; Mr. Sherman, Mechanics'; +Mr. Buell, Importers and Traders'; Mr. Moses Taylor, City; Mr. F. +D. Tappan, Gallatin; Mr. G. G. Williams, Chemical; Mr. F. A. Palmer, +Broadway; Mr. George I. Seney, Metropolitan; Mr. P. C. Calhoun, +Fourth National. + +Mr. Vail said that this meeting was called at my request, that the +gentlemen present had no information as to the object of the meeting, +and had had no opportunity for consultation; that I would explain +more fully what I desired. + +I said that I proposed to resume specie payments on the 1st of +January, in accordance with law, and that for this purpose I wished +to get $50,000,000 of gold, and, to accumulate this amount, would +if possible, sell four per cent. bonds. + +Mr. Vermilye and Mr. Coe spoke at some length to the effect that +they were in full accord with me on the subject of resuming specie +payments, and they were willing to co-operate in any way to bring +it about. They said that although they had not consulted with the +other gentlemen present, they had no doubt they were all agreed +upon this subject. They thought, however, it would be utterly +useless to attempt to sell four per cent. bonds, and that as far +as such bonds were concerned there need be no more said. + +I said this being so, I would like to have some propositions for +four and a halfs. + +Mr. Coe said that no definite proposition could be made without +further consultation among themselves; that they were willing to +assist to the extent of their power to obtain resumption; that they +would place themselves at my service in any way I might wish without +compensation. He said that he thought an arrangement could be made +by which the national banks could be made my agents in the sale of +bonds. He thought the banks might take the $50,000,000 of four +and a half per cent. bonds, to be paid for by the 1st of January, +the government to receive whatever the banks could get for the +bonds. + +I invited the gentlemen to confer among themselves, and, if +practicable, make me some definite proposition in the morning. + +In the afternoon of the same day we met the members of the old +syndicate. Mr. Belmont read a cable from the Rothschilds offering +101 for $100,000,000 four and a half per cent. bonds, $50,000,000 +for resumption and $50,000,000 for refunding purposes. + +I said I was not prepared to accept, but would give a definite +answer next day. + +On the following morning I met Mr. Vail, of the National Bank of +Commerce, and Mr. Vermilye, of the Merchants' National Bank, at +the sub-treasury. + +Mr. Vail and Mr. Vermilye submitted a memorandum that if I would +indicate my willingness to receive a proposition for the negotiation +of $50,000,000 four and a half per cent. bonds at par in gold they +would recommend the national banks to unite in making it. + +I then asked Mr. Vail and Mr. Vermilye whether, if a proposition +was made to me by bankers of acknowledged credit and responsibility +of 101 for four and a half per cent. bonds, payable in installments +and with the usual option, in their opinion, it was my duty to +accept it. + +They both said decidedly, yes; that such an arrangement would be +far more advantageous than the acceptance of their proposition, +and besides, if they took the bonds, it might impair to some extent +their power to render the usual facilities to their commercial +customers. + +The proposition submitted by Messrs. Vail and Vermilye, in behalf +of the national banks, was as follows: + +"If the secretary will intimate his willingness to receive a +proposition from the national banks in New York, Boston, Philadelphia +and Baltimore for the negotiation of fifty millions four and a half +per cent. bonds at par in gold, for resumption purposes, we will +recommend our associates to unite in making it, with the belief on +our part that it can be accomplished as suggested. This special +loan to be the only bonds of this character offered, unless the +same parties have the option on any further sums required." + +Afterwards, on the same day, I again met the members of the syndicate +at the sub-treasury, and said that I would sell only $50,000,000 +four and a half per cent. bonds; that these must be paid for in +gold coin, for resumption purposes; that I would sell them for +101˝, allowing one-half of one per cent. commission, the syndicate +to pay all expenses; but before signing the contract wished to +communicate with the President. + +These terms were accepted by the syndicate upon condition that +their associates in London would consent, they reserving the right +to cable to London for such consent; and the meeting adjourned +until 1:30 o'clock, when, I having received a telegram from the +President, the details of the contract were then discussed, and +signature was delayed for an answer to the cable of the syndicate. + +On the following day we again met at the sub-treasury, and Mr. +Lucke, of Belmont & Co., informed me that the English parties had +authorized them to close the contract, and it was therefore signed. +It was as follows: + +"This agreement, entered into the 11th day of April, 1878, between +the Secretary of the Treasury of the United States, of the first +part, and August Belmont & Co., of New York, on behalf of N. M. +Rothschild & Sons, of London, England, and their associates and +themselves; Drexel, Morgan & Co., of New York, on behalf of J. S. +Morgan & Co., of London, and themselves; J. & W. Seligman & Co., +of New York, on behalf of Seligman Bros. of London, and themselves; +Morton, Bliss & Co., of New York, on behalf of Morton, Rose & Co. +of London, and themselves; and the First National Bank of the city +of New York, witnesseth: That said August Belmont & Co., on behalf +of N. M. Rothschild & Sons, and their associates and themselves, +hereby agree to purchase from the Secretary of the Treasury $4,125,000 +of the four and one half per cent. bonds of the United States, +issued under the acts of July 14, 1870, January 20, 1871, and +January 14, 1875, and that Drexel, Morgan & Co., on behalf of J. +S. Morgan & Co., and themselves, agree to purchase $1,625,000 of +said bonds, and that J. & W. Seligman & Co., on behalf of Seligman +Bros., and themselves, agree to purchase $1,625,000 of said bonds, +and that Morton, Bliss & Co., on behalf of Morton, Rose & Co., and +themselves, agree to purchase $1,625,000 of said bonds, and that +the First National Bank of the city of New York agrees to purchase +$1,000,000 of said bonds; making a total aggregate of $10,000,000 +of said bonds on the terms and conditions following: + +"First. The bonds covered by this contract shall be sold for +resumption purposes. + +"Second. The parties of the second part shall have the exclusive +right to subscribe in the same proportion of each of the subscribers +for the remainder of the $50,000,000 of the four and a half per +cent. bonds of the United States authorized to be issued by the +acts of Congress aforesaid; but the amount to be so subscribed +shall not be less than $5,000,000 for each and every month after +the present month of April. + +"Third. That the Secretary of the Treasury shall not sell, during +the continuance of this contract, any bonds other than such as by +act of Congress may be provided to be sold for the payment of the +Halifax or Geneva award, and the four per cent. consols of the +United States, and those only for refunding purposes, except by +mutual agreement of the parties hereto. + +"Fourth. The parties of the second part agree to pay for the said +four and a half per cent. bonds par and one and a half per cent. +premium and interest accrued to the date of the application for +the delivery of said bonds, in gold coin or matured United States +gold coin coupons, or any of the six per centum 5-20 bonds heretofore +called for redemption, or in United States gold certificates of +deposit issued under the act of March 3, 1873, or in gold coin +certificates of deposit of authorized designated deposit, and that +have complied with the law. + +"Fifth. The parties of the second part shall receive in gold coin +a commission of half of one per centum on all bonds taken by them +under this contract, as allowed by the act of July 14, 1870, and +shall assume and defray all expenses which may be incurred in +sending the bonds to London or elsewhere, upon their request, or +by transmitting the bonds, coupons, or coin to the treasury department +at Washington, including all cost of making the exchange. The +bonds shall also be charged with the cost of preparation and issuing +of the bonds. + +"Sixth. No bonds shall be delivered to the parties of the second +part, or either of them, until payment shall have been made in full +therefor, in accordance with the terms of this contract. + +"Signed by John Sherman, Secretary of the Treasury, J. & W. Seligman +& Co., Morton, Bliss & Co., August Belmont & Co., the First National +Bank of New York, Drexel, Morgan & Co.; and by Assistant United +States Treasurer Thomas Hillhouse and E. J. Babcock, as witnesses." + +The importance of this contract and the open publicity of the +negotiation, created quite a sensation in the newspaper press, +which presented a medley of praise and censure. All varieties of +opinion from extravagant flattery to extreme denunciation were +visited upon me by the editors of papers according to their +preconceived opinions. I made no effort at secrecy, and no answer +to either praise or blame, but freely contributed any information +in respect to the matter to anyone, whether friendly or otherwise, +who applied to me. Perhaps as accurate a statement as any, of my +opinions, was made by George Alfred Townsend, over his _nom de +plume_ of "Gath," in the New York "Graphic" of April 12, 1878. He +said: + +"At four o'clock yesterday afternoon John Sherman, the Secretary +of the Treasury, was sitting in Parlor No. 1, the ante-room of the +late Republican national committee, when I followed my card into +his presence. 'Ah!' he said, rising from an easy chair where he +was resting, like one recently wearied but now relieved. 'Come +in; it's all over now, and I don't mind telling you about it.' + +'Yes, it's all over Wall street, and I think opinion was more +favorable to the syndicate getting the bonds than the bank +presidents.' + +'The representatives of the banks were very polite and well-meaning,' +said the secretary. 'I sent word that I was coming to the city +and asked the national banks, as intimately related to the treasury +department, to select persons to meet me. I also notified the +members of the old syndicate that I had some propositions to suggest +to them.' + +'This is your third visit on the general object of resumption? A +very eventful visit, isn't it, in the story of our finances?' + +'Well, both my previous visits were important--in May, 1877, when +$200,000,000 of four and a half per cent. bonds were disposed of, +and again last June, when $75,000,000 of the four per cent. bonds +were subscribed for. The present visit is probably the last with +such an object. I feel glad and relieved.' + +'You failed to get the bank philosophers to get you the $50,000,000 +of gold?' + +'I thought I could see that they did not mean to enter into the +subscription. They all said they wanted to see resumption achieved, +and would like to aid it, but spoke of their obligations to their +commercial customers. They said too, that they would have to rely +on brokers to get the gold and pay commissions for it, and were +afraid it might be run up on them. One or two, perhaps, expected +a more advantageous offer as to rates--indeed, wanted me to pay +them a commission for selling our bonds at par. I can excuse them, +because they will have to be looking after the redemption of their +own circulation.' + +"I suggested to the secretary that some of the bank presidents had +discouraged resumption or treated it as a figment. + +'When the congressional committee was over here,' he answered, +'there was something said about the advantage of getting priority +in the line on resumption day; but that is nothing. They were very +civil, but didn't see the proposition favorably.' + +'Is there any disadvantage in negotiating through the syndicate?' + +'No, there is an advantage in this respect; they sold the higher +bonds abroad, and taking these will also place a part of them there, +facilitating exchange in commercial settlements and interestedly +maintaining prices. A portion of these low bonds ought to locate +in Europe.' + +'Speaking of exchange, Mr. secretary, the idea has been put forward +here, in the fiscal form, I believe, that a large, round balance +of trade in our favor indicates poverty and collapse. Is that good +political economy?' + +'There are nations,' said the secretary, 'like England, which have +steady apparent balances of trade against them, yet show a great +prosperity. But that is only the product of English money invested +in foreign places and colonies; it is an apparent purchase, but +really their own harvest. No nation that is greatly in debt, as +we are, can observe real balances of trade overwhelmingly against +us and not feel alarmed.' + +'Do you expect any opposition from Congress as the reply to this +negotiation and the near probability of specie payments?' + +'No, I do not think Congress will interfere. The conservative +element of the inflation party was appeased by the reissue of +$300,000,000, and the candid way in which their silver legislation +was carried out. I do not anticipate that Congress can affect this +action.' + +'May not the surprise of the news that you so readily negotiated +these bonds and secured your gold, enrage those who have cast their +political hopes upon preventing resumption?' + +'I do not see why. General Ewing and the finance committee were +clearly apprised by me two weeks ago of the exact plan I have +followed out. They questioned me directly, and I told them. As +no attack has been made upon that programme, I look for no successful +resistance to its performance.' + +'Do you consider the price paid by the syndicate for these bonds +as good?' + +'It was the best that could at present be had. I wanted them, +first, to take $50,000,00 to $100,000,000 of the four per cent. +bonds at 103--bonds that I think preferable in some respects, +particularly for durable investment. These gentlemen, however, +thought those bonds not convenient for them for ready sale, and +they urged that I ought to let them have the four and a half per +cents. at par, as some had been put to the people at that. I +desired a premium of three per cent. They finally met me half way, +and gave one and a half premium. In short, we get a very little +scant of 103 currency for those bonds, for the syndicate pays over +to us the accrued interest.' + +'You do not anticipate that they will take the $10,000,000 and +decline the other $40,000,000?' + +'No; I think our economy, industry, exports, production, ready +resources and general physical and political superiority will expand +right onward, and protect everybody who puts faith in our national +securities.' + +'How much gold have you absolutely got for resumption to-day?' + +'Seventy-two millions clear net of our own. I have nearly $140,000,000 +present due, or coming, not counting any liabilities on it. The +$50,000,000 I have secured to-day will give me, clear of everything, +$120,000,000 of gold, and that is plenty.' + +'Have you read the views of Mr. Musgrave and other bankers, in "The +Graphic," on the theory that you have enough gold now and would +not have to redeem much with your gold? I heard a merchant say +this afternoon that you might not have $5,000,000 put at you!' + +'That is more likely to be the case now,' said Mr. Sherman 'when +I am so well protected. There might be a dash made at my $72,000,000 +--not at my $120,000,000.'" + +As a flattering background to his interview Mr. Townsend gave the +following description of myself, which I hope it will not be egotism +to publish. There were so many descriptions of me of a different +character that I feel at liberty to quote one that was quite +friendly: + +"John Sherman, as he sat before me, young looking, his air and +beard in perfect color, his manners gracious and indicating an easy +spirit not above enjoyment, and manners not abraded by application, +seemed to be a very excellent example to young public men. His +nature had not been worn out in personal contests, nor his courage +abated by the exercise of discretion and civility. He was the +earliest and best champion of the Republican party--its first +candidate for speaker of Congress, its last Secretary of the +Treasury. For twenty years he has been in the national center of +observation. He owes to temperance and study, exercise and natural +sense, his present proud position as the principal exponent of the +Republican party. Not in the Senate is that party seen at its +best, but in the executive, where the President's original +discrimination is approved by time and events; he chose John Sherman +first of the cabinet, and within thirteen months he has concluded +the last great treaty of the war--peace with the public creditor. +In our arising commerce and huge balances of trade, we observe +again 'Sherman's march to the sea.'" + +The following statement in regard to the new loan and the national +banks appeared in the "Financial Chronicle" of April 13: + +"Mr. Sherman has shown, in his interviews with the committees of +the House and Senate, not only his faith in the possibility of +executing the resumption act, but also his determination to do it; +and the disclosures of the past few days are the signs of the +progress he is making. In fact, the events of the week, culminating +in the successful negotiation with the syndicate bankers of a sale +of four and a half per cent. bonds, practically put at rest all +doubts with regard to the fact that on or before the 1st day of +January, 1879, anyone can, on application to the office of the +assistant treasurer in New York, obtain gold or silver for greenbacks, +in sums of not less than fifty dollars. The terms of the loan are +substantially set out in the following, which was posted, shortly +after one o'clock on Thursday, on the bulletin boards of the sub- +treasury, the parties composing the syndicate being Drexel, Morgan +& Co., and J. S. Morgan & Co., of London; August Belmont & Co., +and through them the Rothschilds, of London; Morton, Bliss & Co.; +J. & W. Seligman, and Seligman Brothers, of London; and the First +National Bank: + +'The Secretary of the Treasury and the members of the last syndicate +have entered into an agreement for the sale, for resumption purposes, +of $50,000,000 United States four and a half per centum 15-year +bonds at par and accrued interest, and one and a half per centum +premium in gold coin, $10,000,000 to be subscribed immediately, +and $5,000,000 per month during the balance of the year. The sale +of four per centum bonds will be continued by the treasury department +as heretofore, upon the terms and conditions of the last circular, +and the proceeds will be applied to the redemption of six per centum +5-20 bonds.' + +"This certainly will be considered a very favorable negotiation +for the government." + +Among the numerous letters received at this time, I insert the +following: + + "Viroqua, Wis.,, April 14, 1878. +"Hon. John Sherman, Secretary of the Treasury. + +"Dear Sir:--We have a Honest Money League started in Chicago, of +which you are probably aware. The secretary is the Hon. Thos. M. +Nichol, who aided us so materially in carrying the state last fall. +He is one of the ablest defenders of honest money that we have in +the northwest. Any information you can furnish him will reach the +people of the northwest. I see by the dispatches you have completed +arrangements whereby you will be able to resume by January 1, 1879. +I hope Congress will have the good sense not to throw any obstacles +in your way. I used to, when in the army, tell the boys to trust +in General Sherman and keep their powder dry, and now I feel like +trusting in Secretary Sherman to keep our money honest. I have no +fears of the result if Congress will let you alone. + + "Yours truly, + "J. M. Rush." + +The eastern press, almost without exception, gave its hearty approval +of the contract made, and the mode and manner of the negotiation. +The leading papers in New York, including the "Herald," "Tribune," +and "Times," gave full accounts. In the west, however, where the +greenback craze or "heresy," as it was commonly called, prevailed, +the press was either indifferent or opposed to the contract and to +the object sought. It is singular how strong the feeling in favor +of an irredeemable paper currency was in many of the western towns +and among the farming people. United States notes, universally +called greenbacks, were so much better as money than the bank notes +were before the war, that the people were entirely content with +them, even if they were quoted at a discount in coin. They were +good enough for them. Any movement tending to reduce their number +was eagerly denounced. + +At the very time when the negotiation was being made, the Senate +finance committee was discussing the expediency of agreeing to the +bill repealing the resumption act which had passed the House. The +indications were that the committee had agreed upon a time when a +final vote should be taken upon this bill and that it would be +favorably reported by a majority of one. It depended upon the vote +of Mr. Ferry, who was strongly in sympathy with the sentiment in +the House. It appeared quite certain that with a favorable report +the bill would pass. If passed it would no doubt have been vetoed, +but the moral effect of its passage would have been to greatly +weaken all measures for redemption. I had frequent conversations +with Mr. Ferry and appealed to him as strongly as I could to stand +by his political friends, and for the success of the negotiation. +He voted against reporting the bill. I wrote him the following +letter while the matter was still pending: + + "Washington, D. C., May 1, 1878. +"Dear Sir:--The deep interest I feel in the pending legislation in +Congress, endangering as it does my hope of success in the great +object of resumption, will be my excuse for appealing to you again, +in the strongest manner, against the mandatory provision that, +under all circumstances, United States notes shall be receivable +in payment of customs duties. + +"This provision may defeat the whole of our policy for which we +have been struggling so long and to which our party is so firmly +committed. Resumption on United States notes can be easily maintained +with a reasonable reserve and with a certainty that any considerable +run will be stopped by increased demand for United States notes, +but there is one essential prerequisite to our ability to resume, +and that is that we must have coin income enough to pay the interest +of the public debt and other current coin demands. To throw upon +the treasury the possibility of the necessity of buying coin to +pay the interest of the public debt, in addition to buying that +which is necessary to maintain resumption on United States notes, +is simply to overload the wagon and break it down at the very start. +Ordinarily the secretary would receive greenbacks for duties (and, +therefore, I have no objection to the discretionary authority being +conferred upon him), if he can use them also in payment of interest, +but as we must pay the interest in coin, and the slightest difference +in favor of coin making it certain that demand would be made for +it for interest, we cannot undertake to buy sufficient coin to pay +the interest in addition to what we would naturally, under like +circumstances, be required to pay such notes as are presented. + +"I have thought so much about this, and am so much troubled about +it, that I would feel almost like giving up the ship rather than +to undertake the additional task which the bill as now reported +would impose upon me. Surely we are so near the end of our long +struggle that we ought not to assume a fresh load, and I assure +you that a mandatory provision requiring the secretary to receive +United States notes in payment of customs duties, without regard +to the time and circumstances, is simply a repeal of the resumption +act, and it had better be done openly and directly. Because we +have been so fortunate this far in the progress towards resumption +is no reason why we should assume an additional burden. + +"Please state this to any others who you think would have any +respect for my opinions, as I do not wish to thrust them upon those +who would like to thwart them; and, if overruled in this, I trust +you will make this letter public, for I will not be responsible +for so serious a change in the whole plan of resumption. I said +to the committee on finance that if the discretion was conferred +upon me to receive United States notes for duties, I had no doubt +that I could do so on the 1st of October, but it was not then +supposed by anyone that such a provision would be mandatory. + + "Very truly yours, + "John Sherman. +"Hon. T. W. Ferry, U. S. Senate." + +While I was congratulating myself upon accomplishing an important +work for the people, I had aroused an animosity more bitter and +violent than any I ever encountered before or since. I was charged, +directly, by a correspondent of the "National Republican," published +in Washington, with corruption, and that I was interested in and +would make money through the syndicate. It was said that I "came +to the United States Senate several years ago a poor and perhaps +a honest man. To-day he pays taxes on a computed property of over +half a million, all made during his senatorial term, on a salary +of $6,000 a year and perquisites." My property at home and in +Washington was discussed by this letter, and the inference was +drawn that in some way, by corrupt methods, I had made what I +possessed. It is true that I found many ready defenders, but I +took no notice of these imputations, knowing that they were entirely +unfounded, for I never, directly or indirectly, derived any advantage +or profit from my public life, except the salary. + +At one time it was alleged that a sub-committee, consisting of +Messrs. Ewing, Hartzell and Crittenden, had been in correspondence +with leading bankers, financiers and capitalists, and that information +had been obtained which led to the conclusion that I had derived +profit from the negotiation. It was said that the committee proposed +to interview me upon the subject of my recent syndicate operations, +that the syndicate would get about a $750,000 commission, which +could have been saved had outsiders been permitted to buy the bonds, +that the committee had summoned members of the syndicate and bankers +who were not admitted into the syndicate, but who wanted to be +allowed to buy bonds without any commission, that the allegation +was so well supported that a resolution was prepared authorizing +the committee to investigate, but that this was unnecessary, as +the resolution authorizing the banking and currency committee to +make inquiries concerning resumption conferred authority to inquire +into this matter. The only sign of the alleged investigation was +an inquiry from Mr. Ewing, which was answered by me as follows: + + "Treasury Department, April 19, 1878. +"Hon. Thomas Ewing, Acting Chairman Committee on Banking and + Currency, House of Representatives. + +"Sir:--In compliance with your request of the 18th instant, I +inclose herewith a copy of the contract recently made with a +syndicate of New York bankers for the sale of four and a half per +cent. bonds. The only previous correspondence on this subject was +a letter sent to said bankers and one to the presidents of certain +national banks, copies of which are inclosed. + +"In response to your question as to the amount of accrued interest +that will be allowed to the syndicate at each payment on account +of such sales, I have to reply that no accrued interest is paid to +them, but, as you will see by the fourth paragraph of said contract, +they are to pay the United States the amount of interest accrued +on the bond up to the time of payment for it, in addition to the +premium of one and a half per cent. The interest on the four and +a half per cent. bonds accrued on the 1st of March, and therefore, +the interest is added from that date to the date of payment for +the bonds. + +"The amount of commission to be paid is fixed by law at one-half +of one per cent., but out of this the associates are to pay all +expenses incurred by them in the sale, and reimburse the United +States all expenses incurred by it as stated by said contract in +paragraph 5. + + "Very respectfully, + "John Sherman, Secretary." + +No further action was taken by the committee on banking and currency. +Subsequently I wrote Mr. Ewing the following letter: + + "May 21, 1878. +"Dear Sir:--I notice the crazy barkings of Buell in the 'Post' +about the syndicate, and favors granted to it by me. + +"I wish to say to you that nothing would please me better than to +have the banking and currency committee examine into this matter, +and I am quite sure you will be gratified that the result will be +to my credit. + +"I have no desire to dignify this by asking an investigation, but +only to say to you privately, as a personal friend, that I court, +rather than fear, such an inquiry. + + "Very truly yours, + "John Sherman. +"Hon. Thomas Ewing, House of Representatives." + +It was at this time that it was alleged that Mr. Tappan, a New York +bank president, said that he would pay $50,000 to stand at the head +of the line when the government began to pay out gold; that he +could put in $29,000,000 United States notes held by the New York +banks and break the government and take out all the gold. It was +said that Mr. Coe, a prominent banker in New York, was asked his +opinion whether I could resume, and that he said: "Well, yes, I +would let the government resume, but it must sell a certain number +of bonds to the banks at such a figure." Sensational reports were +sent out from Washington to discredit the contract lately made with +the syndicate. It was reported that the terms were concealed, that +only ten millions were contracted for, part of which it might be +necessary to take back, and that the banking and currency committee +had summoned me to explain the contract. So far from being true +the contract itself was printed in all the papers and the utmost +publicity was given to every step taken. + +I had a very friendly acquaintance with Peter Cooper, for whom I +had the highest respect, but he had fallen into the general ideas +of the greenbackers. When in New York, early in April, I called +upon him and had a pleasant interview. Soon after I received from +him the following letter: + + "New York, April 18, 1878. +"Hon. John Sherman, Secretary of the Treasury. + +"Dear Sir:--In the brief interview which you did me the honor to +give me at my house a few days ago, I was impressed with your desire +to give all the information that would throw light upon the financial +policy of the government, and on the department of which you are +the executive head. + +"But we had not the time to discuss fully some of those practical +questions that involve this financial policy, and I therefore now +take the liberty, in a more deliberate manner, to ask of you an +answer to questions, which might throw light upon the public mind +on these great interests, and allay the anxiety which pervades the +hearts of our people in reference to their future prospects of +business and employment, and show more clearly how the present +policy of the government in enforcing 'specie payments' by law and +carrying out the 'resumption act,' could be attended with any +_wholesome results to the financial interests_ of this country both +in the present and in the future. + +"First. Can you resume in the presence of $645,000,000 of legal +tender and bank notes with what gold and silver you may have at +your command, without an actual shrinkage of this currency, either +on the part of the government or of the banks? + +"Second. Can 'resumption' be maintained after the law has placed +a premium on coin, and virtually demonetized the paper, by rendering +its convertibility compulsory? In other words, can the present +'par value' of paper and coin be taken as an index that after the +law has thrown its whole weight in favor of coin, by making the +paper 'convertible,' the present equilibrium between the two can +still be maintained? + +"Third. In connection with the fact that by purely commercial +laws, we have already arrived at specie payments, or the par between +coin and paper money, what good will it do to thrust the further +power of the law on the side of coin? How can we avoid placing +the paper at the mercy of those who will have control of the coin +--especially the paper of the national banks, whose chief credit +will consist in maintaining 'specie payments?' + +"Fourth. After 'resumption,' how much money will the people have +with which to transact business, employ labor, enter into new +enterprises, and use 'cash payments' instead of 'inflating credit' +to a ruinous degree, as in times past, under the system of specie +payments, and convertibility by law? + +"Fifth. It being the duty of Congress to make the necessary and +proper laws for carrying into execution a system of money, weights +and measures as the only means to regulate commerce with foreign +nations and among the several states, to provide as far as possible +an 'unfluctuating currency,' a steady measure of prices, how can +you prevent great and disastrous fluctuations in our 'convertible +money' and coin, arising out of the great demands for gold and +silver that may, at any time, be made upon us from the commercial +relations of this country with Europe over which the government +can have no direct control? With great respect I remain, + + "Your obedient servant, + "Peter Cooper." + +I made the following reply: + +"Dear Sir:--Your letter of the 18th inst. is received. The questions +you ask me have been, in the main, answered to the committees of +the two Houses, and I might, perhaps, best reply to your letter by +sending these documents, printed by the order of the respective +Houses; but my sincere respect for you, and desire to allay any +doubts you may entertain of the success of the present plan of +resumption, induce me to answer your letter as fully as my time +will allow. + +"As to your first question: + +'Can you resume in the presence of $645,000,000 of legal tender +and bank notes, with what gold and silver you may have at your +command, without an actual shrinkage of this currency, either on +the part of the government or of the banks?' + +"You must bear in mind that the aggregate amount of legal tender +notes and bank notes stated by you, may be gradually diminished, +so far as the legal tenders are concerned, to $300,000,000, and by +the banks to such sum as they find can be maintained at par with +United States notes. But, assuming that the aggregate should be +about the present amount, and remembering always that the bank +notes can be redeemed in legal tender notes, and are not required +to be redeemed in coin, I do express the opinion that resumption +in a country like ours can be maintained in the presence of the +existing volume of circulation; but if this should prove to be too +great, the reduction will be gradually of the bank notes, or, if +Congress so direct, of the legal tender notes. + +"As to your second question: + +'Can resumption be maintained after the law has placed a premium +on coin and virtually demonetized the paper, by rendering its +_convertibility compulsory?_ In other words, can the par value of +paper and coin be taken as an index that after the law has thrown +its whole weight in favor of coin, by making paper convertible, +the present equilibrium between the two can still be maintained?' + +"I respectfully deny that the law places a premium on coin. One- +half of this circulation is not redeemable in coin at all, but in +legal tenders; nor does the law fix a premium on coin as against +legal tenders, but simply requires an equality. Its convertibility +is not compulsory. It is upon the demand of the holder. The holder +is as likely to deposit the coin, if he has it, as to deposit the +notes for coin. The currency would rest upon the presumption that +all paper money rests upon, that its use and convenience and +convertibility will always keep it at par with coin. + +"To your third question: + +'In connection with the fact that, by purely commercial laws, we +have already arrived at specie payments, or the par between coin +and paper money, what good will it do the thrust the further power +of the law on the side of coin? How can we avoid placing the paper +at the mercy of those who will have control of the coin--especially +the paper of the national banks, whose chief credit will consist +in maintaining specie payments?' + +"I have simply to say that we have only arrived at our present +position approaching specie payments by the accumulation of coin +in the treasury and by the gradual and slow reduction of the volume +of notes; and the very measures which have enabled us to reach so +near the specie standard, are necessary to be continued to enable +us to maintain resumption. If resumption is desirable, it cannot +be maintained by a repeal of the law, which requires resumption +and grants the necessary powers to prepare for it and to maintain +it. + +"As to your fourth question: + +'After resumption, how much money will the people have with which +to transact business, employ labor, enter into new enterprises, +and use cash payments instead of inflating credit to a ruinous +degree, as in times past under the system of specie payments, and +convertibility by law?' + +"It is answered, I think, by what I have said in reply to your +first question. We will have the United States notes, the bank +notes, and coin certificates, both gold and silver, together with +the gold and silver itself, all in circulation. The actual amount +of currency in circulation, I think, will be as large in specie +times as now, and its equality and convertibility will rather +increase than prevent the circulation of either. The depreciation +of paper money is not necessarily caused solely by its excess, but +by the uncertainty of its value and confidence in its redemption. + +"In reply to your fifth question: + +'It being the duty of Congress to make the necessary and proper +laws for carrying into execution a system of money, weights and +measures, as the only means to regulate commerce with foreign +nations and among the several states, to provide as far as possible +an unfluctuating currency, a steady measure of prices, how can you +prevent great and disastrous fluctuations in our convertible money +and coin, arising out of the great demands for gold and silver that +may at any time be made upon us from the commercial relations of +the country with Europe, over which the government can have no +direct control?' + +"I have only to say that it is undoubtedly the duty of Congress to +provide for the possible contingencies that would make it necessary +to suspend specie payments, though, as the circumstances which +would compel suspension are necessarily unforeseen, unknown, +difficult to be defined or to be provided for, I am not sure but +it is better to leave the question of suspension to the necessities +of the case rather than to legislation which must be founded upon +uncertainty. When the treasury is actually unable to redeem its +notes in coin, suspension comes necessarily, but resumption would +come again from the absolute necessity of currency for our daily +wants, and Congress could provide better in view of the actual +facts than anticipated facts. + +"I think the real difficulty that has stood in the way of resumption +is the nightmare of things that have existence only in the brain, +and not in fact. We can only deal with the current course of events +based upon probabilities, and cannot provide for unforeseen +contingencies. + +"It is my earnest hope that you and gentlemen like you, who I know +are sincere in your convictions, may see your way to trust to the +policy that is now entered upon, which seeks to provide as much +paper currency as can be maintained at par in coin, and to secure +its active circulation in aid of industry and enterprise. + + "I am, with great respect, + "John Sherman." + +On the 13th of May, 1878, the charges against me assumed a different +form, by the adoption, in the House of Representatives, of a preamble +and resolutions offered by Clarkson N. Potter, of New York. Among +the recitals of this resolution was a charge that James E. Anderson +and D. A. Weber, supervisors of registration of the parishes of +East and West Feliciana, falsely protested that the election in +such precincts had not been fair and free, and that the returning +board thereupon falsely and fraudulently excluded the vote of said +precincts, and the choice of the people was annulled and reversed, +and that such action of said Weber and Anderson was induced or +encouraged by assurances from me. The charge was based upon the +following letter, alleged to have been written by me: + + "New Orleans, November 20, 1876. +"Messrs. D. A. Weber and James E. Anderson. + +"Gentlemen:--Your note of even date has just been received. Neither +Mr. Hayes, myself, the gentlemen who accompany me, or the country +at large, can ever forget the obligations under which you will have +placed us should you stand firm in the position you have taken. +From a long and intimate acquaintance with Governor Hayes, I am +justified in assuming the responsibility for promises made, and +will guarantee that you will be provided for as soon after the 4th +of March as may be practicable, and in such manner as will enable +you both to leave Louisiana, should you deem it necessary. + + "Very truly yours, + "John Sherman." + +The charge was without any foundation whatever, and excited my +resentment. On the 20th of May I wrote Mr. Potter the following +letter: + + "May 20, 1878. +"Hon. Clarkson N. Potter, House of Representatives. + +"Sir:--I observe that the resolution of the House, under which your +committee is organized, singles me out personally by name from +among twenty or more gentlemen who were present, at the request of +President Grant, or the chairman of the Democratic national committee, +to attend and witness the action of the returning board upon the +presidential election returns in the State of Louisiana in 1876, +and, in substance, charges that at that election in East Feliciana +parish the Republican vote was withheld and not cast, in pursuance +and execution of a conspiracy by such voters, that in furtherance +of such conspiracy, James E. Anderson, supervisor of registration +in that parish, and D. A. Weber, supervisor of registration in West +Feliciana parish, falsely protested that such election in such +parishes had not been free and fair, and that, therefore, the +returning board of said state falsely and fraudulently excluded +votes of such precincts, and 'by means thereof, and of other false +and fraudulent action of said returning board, the choice of the +people of the state was annulled and reversed, and that such action +by the said Weber and Anderson was induced or encouraged by the +assurances of Hon. John Sherman, now Secretary of the Treasury.' + +"This resolution requires you to investigate these allegations, +and upon the result of these depends the accusations against me. + +"First. That there was a conspiracy among the voters to withhold +and not cast the votes, with a view to make a false charge on the +election. + +"Second. That in point of fact there was a free and fair election +in East and West Feliciana, which was falsely protested and returned +by said Anderson and Weber, by which the votes of those parishes +were falsely and fraudulently excluded by the returning board. + +"Third. That the offense of Anderson and Weber was encouraged by +assurances by me. + +"With the view, therefore, to meet this accusation, which, so far +as it affects me, I declare and know to be absolutely destitute of +even the shadow of truth, I respectfully ask, and now make formal +application, for leave to be represented before your committee in +the investigations of all charges affecting me personally. I tender +and offer to prove that, in point of fact, the election in East +and West Feliciana parishes was governed and controlled by force, +violence and intimidation so revolting as to excite the common +indignation of all who became conversant with it, and proof was +submitted to that effect, not only before the returning board in +evidence contained in ex. doc. No. 2, second session 44th Congress, +but also in the testimony taken by the committee of the Senate on +privileges and elections, report No. 701, second session 44th +Congress. + +"I will, if allowed, furnish the names of witnesses whom I desire +to examine before you to prove the truth of this statement as to +said parishes, and that the protests referred to were true, supported +by the testimony and properly acted upon and sustained by the +returning board. To my personal conduct during this examination +I invite your fair and candid scrutiny, with entire confidence that +not only myself, but my associates of both political parties, acted +honestly and properly, from a sense of public duty. I have requested +Hon. Samuel Shellabarger to deliver this to you, and I respectfully +designate him as the gentleman I would desire, on my part, to be +present to cross-examine witnesses testifying in relation to charges +against me, and who will, as my counsel, tender evidence in proof +of this statement. The favor of an early answer is requested. + + "Very respectfully, + "John Sherman." + +It is not necessary to detail the history of this investigation, +of which so much was said or printed at the time. It was a partisan +committee organized to stir up the controversy that had been settled +by the decision of the electoral commission. The committee conducted +a long and expensive investigation. The result was that the +pretended letter was proven to be a forgery, and that my conduct +during the sittings of the returning board was shown to have been +that of a spectator, precisely like that of a score of other so- +called visitors, of both political parties. The investigation +proved to be a radical failure. The report was not made until +March 3, 1879, the last day of the 45th Congress. No action was +taken upon it. + +During the investigation I specifically denied, under oath, that +I had ever written or signed such a letter. There was not the +slightest proof, direct or indirect, that I did so. The majority, +with great unfairness, instead of frankly stating that they were +deceived by a forgery, treated it as a matter in doubt. In their +report they do not allege or pretend that I wrote or signed such +a letter. The evidence of their own witnesses was conclusive that +it was written by a Mrs. Jenks. + +The report of the minority of the committee commented with severity +upon the unfairness of the majority, in the following language: + +"The majority seem to us to have come short of what we had a right +to expect from their candor, when they fail to report explicitly +whether the testimony on this subject sustains the charge that such +a letter as Anderson and Weber testified to was ever written by +the Hon. John Sherman. For our part, we report distinctly and +emphatically that it does not, and that the palpable perjuries of +both the witnesses named justify a feeling of deep disgust that +they should be treated as capable of creating a serious attack upon +the character of a man who has borne a high character in the most +responsible service of the country for five-and-twenty years. + +"The charge, if it meant anything, was that of corruptly bribing +Anderson and D. A. Weber to perpetrate a fraud in the election +returns of the Feliciana parishes. + +"We find nothing in the testimony to show that Mr. Sherman either +knew or believed that any such fraud was committed. We find abundant +evidence that he believed that the protests against the fairness +of the election were honestly and rightly made. + +"We cannot follow the majority in their yielding to what we must +believe to be a prejudice of party spirit, which has carried then +even to the extent of intimating that the Secretary of the Treasury +was party to the pranks of an eccentric woman who dropped a parcel +of letters to set the local politicians of New Orleans agog--a +woman who was called before the committee a long time as a witness, +but who was neither called, examined, nor cross-examined by the +minority, who, however they might share the public amusement at +the performance, entirely declined to take part in it. + +"A considerable number of gentlemen who visited New Orleans, either +at the request of President Grant or of the national or local +campaign committee, were called, and testified as to the purpose +of their visit and their procedure during it. + +"Adhering to our purpose of leaving the majority to frame issues +on which they were willing to proceed in investigating, we did not +seek to examine into the particulars of the conduct of the Democratic +visitors in Louisiana. To let the testimony show the original +resolutions of inquiry to be both useless and mischievous, serving +no purpose but the spread of unjust scandal, seemed to us, in view +of all former inquiries in the same direction, the proper course +to pursue. + +"Messrs. Sherman, Garfield, Hale, Kelley, and others were examined, +and their testimony was compared with that by which it was attempted +to impeach their motives and their conduct. Their account of their +action is consistent and frank. They believed that their party +had rightfully a good claim to the fruits of the election in that +state. They also believed that the notorious violence and intimidation +which had in former years disgraced that state had been again +practiced in the campaign of 1876. They approved the action of +the returning board in deciding, under the powers given them by +law, to declare null the pretended elections at precincts and polls +where evidence of such interference with the freedom of election +had occurred. We do not find that they attempted to control the +board or to dictate their action. We do not find that they attempted +to dictate to witnesses or to procure false testimony to place +before the board. We do not find that they were in any way more +partisan or less scrupulous than the similar party of gentlemen +who then represented the Democratic party. The attempt to single +out Mr. Sherman for special attack seems to us to have had no +original foundation but the testimony of James E. Anderson, and +the terms in which the majority, in their report, have characterized +that person, warrant us in declaring our opinion that when the +character of that witness and his testimony were discovered, it +was the duty of the majority of the committee frankly to abandon +their effort to discriminate between Mr. Sherman and the other +gentlemen who were associated with him." + +Shortly afterward I wrote the following letter to E. F. Noyes, then +United States minister at Paris, whose name was mentioned in the +resolution of investigation: + + "Washington, D. C., April 1, 1879. +"My Dear Sir:--Your letter of the 18th ult. is received. + +"The report of the Potter committee, which you correctly pronounce +to be infamous, was received in silence and was scarcely printed +or noticed in the newspapers of the United States two days after +its presentation to the House. It was then severely handled by +the Republican press and treated with silence by the Democratic +press, and now it is not mentioned. I think that neither of us +should complain of any injurious result from the Potter investigation; +although it was annoying, it was fair and creditable both to the +committee and many of the witnesses. But for the expense and +trouble of the investigation, I am rather gratified that it occurred, +for the feeling of the Democratic party, over what they supposed +was a fraudulent return, would have deepened into conviction, while +the investigation tended on the while to repel this suspicion. + +* * * * * + + "Very truly yours, + "John Sherman. +"Hon. E. F. Noyes." + +Another investigation into the conduct of the department was +inaugurated by J. M. Glover, of Missouri, who, on November 6, 1877, +introduced into the House of Representatives a resolution directing +the several committees of the House to inquire into the conduct of +the different branches of the public service coming under their +charge, and the committees on expenditures in the several departments +to examine into the state of the accounts and expenditures of the +respective departments submitted to them. This resolution in +substance was adopted January 11, 1878, and Mr. Glover was chairman +of the sub-committee to examine into the conduct of the treasury +department. He came to the department and every facility was given +him for examination. He was allowed experts to aid him in the +work, and continued the investigation for two years until the close +of the Congress. His committee incurred much expense, but was +unable to find that any of the public money had been wasted or +lost. His report, submitted in the closing days of Congress, was +not ordered to be printed. Subsequently, on the 15th of April, +1879, after Mr. Glover had ceased to be a Member of the House, a +petition from him was presented asking that his report be printed, +which was referred to a committee, but they did not seem to think +the report of much consequence, as they did not recommend it be +printed. + +The only financial bill that became a law during that session was +the following, approved May 31, 1878: + +"AN ACT TO FORBID THE FURTHER RETIREMENT OF UNITED STATES LEGAL +TENDER NOTES. + +"_Be it enacted by the Senate and House of Representatives of the +United States of America in Congress assembled_, That from and +after the passage of this act it shall not be lawful for the +Secretary of the Treasury, or other officer under him, to cancel +or retire any more of the United States legal tender notes. And +when any of said notes may be redeemed or be received into the +treasury under any law, from any source whatever, and shall belong +to the United States, they shall not be retired, canceled, or +destroyed, but they shall be reissued and paid out again and kept +in circulation: _Provided_, That nothing herein shall prohibit +the cancellation and destruction of mutilated notes and the issue +of other notes of like denomination in their stead, as now provided +by law. + +"All acts and parts of acts in conflict herewith are hereby +repealed." + +I recommended the passage of this law, as I believed that the +retirement of the greenbacks pending the preparation for resumption, +by reducing the volume of the currency, really increased the +difficulties of resumption. + +The session of Congress closed on the 26th of June, 1878. During +the recess the business of the department proceeded in the ordinary +way, without any event to attract attention, but all that happened +tended in the right direction. The crops were good, confidence +became assurance, and all business was substantially based upon +coin. + +In consequence of the sale of four and a half per cent. bonds for +resumption purposes the return of Mr. Conant to London became +necessary. His numerous letters advised the department of the +current of financial operations in Europe. There was some fluctuation +in the relative price of United States notes and coin, chiefly +caused by our demand for gold and the appearance in the market of +bonds of other countries. At one period the sale of four and a +half per cent. bonds became more rapid than the contract provided +for, and this rapid accumulation of coin tended to advance its +price, which I desired to avoid, and, therefore, strictly limited +the sale of the four and a half per cent. bonds to $5,000,000 a +month, thus preventing an unusual demand for coin. During this +period there was a constant effort of banks and bankers, chiefly +in New York, to have some exceptional privilege in the purchase of +four per cent. bonds. This was in every case denied. The published +offer of the sale of these bonds was repeated during every month, +and the terms prescribed were enforced in every instance without +favor or partiality. + +On the 12th of July W. S. Groesbeck, one of the members of the +monetary commission about to assemble in Europe, applied to the +department for information that would enable the American conferees +to assure the conference that the United States would resume by +the time fixed, and should therefore be regarded by the conference +as not in a state of suspicion. I responded to his letter as +follows: + + "Treasury Department, } + "Washington, D. C., July 15, 1878.} +"William S. Groesbeck, Esq., Cincinnati, Ohio. + +"Dear Sir:--Your letter of the 12th instant was received during my +temporary absence, and I comply with your request with pleasure. + +"Accompanying this I send you sundry documents, duly scheduled, +which contain in detail the law and my views on the resumption +question. + +"Among these papers is a letter from the treasurer of the United +States, of date July 6, showing the exact coin on hand for all +purposes, a careful examination of which will prove to you our +ability to resume at the time fixed by law. + +"It will be perceived that we have on hand in the treasury coin +enough to cover all our coin liabilities of every name and nature, +and also thirty five per cent. of the aggregate amount of United +States notes outstanding, with an excess of $2,474,822. We have +also $7,139,529 of fractional silver coin, which will be used for +current expenses. + +"Of the United States notes outstanding, at least sixty millions +are held in the treasury, either as the property of the United +States or as special funds for purposes prescribed by law, which +cannot readily be diminished. + +"In addition, the secretary is authorized to sell bonds for the +purchase of coin or bullion, and he may use United States notes +for the same purpose. Our revenue, both in coin and currency, is +more than sufficient to pay all current expenses covered by the +appropriations of Congress. + +"Considering that the United States notes are scattered over a vast +country, are in great favor and demand, and extremely popular, I +feel entire confidence in the ability of the treasury to resume on +the 1st of January next, and the leading bankers and brokers of +New York are of the same opinion. + +"I know of nothing that can prevent the United States from taking +its place among the specie-paying nations at this time, except the +possible repeal by Congress of the resumption act, and this I do +not anticipate. + + "Very respectfully, + "John Sherman, Secretary." + + +CHAPTER XXXIV. +A SHORT RESPITE FROM OFFICIAL DUTIES. +Visit to Mansfield and Other Points in Ohio--Difficulty of Making +a Speech at Toledo--An Attempt to Break up a Meeting that Did Not +Succeed--Various Reports of the Gathering--Good Work of the Cincinnati +"Enquirer"--Toledo People Wanted "More Money"--Remarks Addressed +to the Cincinnati Chamber of Commerce--Visit to Lancaster, the +Place of My Birth--My Return to Washington--I Begin to Exchange +Silver Dollars for United States Notes--My Authority to Do So Before +January 1 Questioned--The Order is Withdrawn and Some Criticism +Follows--Instructions to the United States Treasurer and Others-- +Arrangements with New York Clearing House. + +In the latter part of August, 1878, I made a visit to Ohio, first +going to Mansfield where I was cordially received. In the evening +I was serenaded, and after the band had played several times I went +to the steps of the hotel and made a few impromptu remarks, reported +as follows by the local paper: + +"Fellow Citizens:--I thank you heartily for the courtesy of this +serenade, and especially the members of the band who have favored +us with their excellent music. I will be here with you but for a +few days, and welcome with joy the sight of home, and the familiar +faces and scenes around me. I do not desire to say anything of +politics, or of matters upon which we do not agree, but prefer to +meet you all as old acquaintances and townsmen, having common +interests and sympathies as to many things as to which we do agree. +And I especially congratulate you upon the bountiful harvests, +fruitful orchards and reviving prosperity with which you are blessed. +I will be glad to shake hands with any of you, and to talk with +you free from all artificial restraints." + +I went from Mansfield to Toledo, where I had agreed with the state +central committee to make a speech, and where the opposition to +resumption was stronger than in any other city in the state. Here +the so-called National party had its origin. I knew a great many +of the citizens of Toledo and the prevailing feeling on financial +topics. I, therefore, carefully prepared a speech, covering all +the leading questions involved in the campaign, especially all that +related to our currency. The meeting was held August 26, in a +large opera house, which would seat 2,500 people. I found it full +to overflowing. Every particle of space in the aisles was occupied +and it was estimated that 3,000 people were gathered within its +walls. I will give the narrative of a correspondent of the St. +Paul "Pioneer Press," who was an eyewitness of the scenes that +followed: + +"Secretary Sherman was not received with that hearty greeting common +to a man of such prominence at first, while the organization that +had been picketed in different parts of the hall at once commenced +hissing at the first sight of the tall, slender form of the speaker. +Until his introduction the emotion was the same, and as soon as he +commenced to speak he was interrupted with jeers and insults from +what Nasby, in his paper, called the 'hoodlums of the city,' who +came organized and determined to break up the meeting without giving +the speaker a chance to be heard, by shouting at the top of their +voices such insults as 'You are responsible for all the failures +in the country;' 'You work to the interest of the capitalist;' +'Capitalists own you, John Sherman, and you rob the poor widows +and orphans to make them rich;' 'How about stealing a President;' +'Why don't you redeem the trade dollar?' + +"These, with many other like flaunting sneers, were constantly +indulged in by the disorderly element, which had been distributed +with care throughout the hall. So boisterous and moblike was their +behavior that it was apparent several times that it would be +impossible to maintain order, and notwithstanding the speaker stated +that if any gentlemen wished to ask any question, upon any point +that he might discuss, in their order, he would be glad to answer +them, and invited criticisms, but one such question was asked by +Mr. F. J. Scott, one of the leading lights of the Nationals, who +wished to know the difference between 'fiat' money and greenbacks; +the speaker replied: 'Fiat money is redeemable nowhere, payable +nowhere, for no amount without security, at no time, and without +a fixed value; while greenbacks are redeemable in specie at par, +at a fixed time, and secured by the pledge of the government.' + +"By this ready, pointed and satisfactory answer the speaker turned +the tide, and the applause was hearty in his favor. When answering +Judge Thurman the speaker alluded to the charge made by him that +the 'Republican party was the enemy of the country.' Then, after +calling attention to the war record of the Democratic party, the +speaker said: 'Who is the enemy of the country?' [A voice from +a 'hoodlum,' 'John Sherman.'] 'Why,' says the speaker; 'because +he has brought greenbacks up to par value, and is in favor of honest +money?' This was another cause for an outburst of applause and +approval to the speaker, although it was very doubtful, in the +beginning of the speech, whether he could carry enough of the vast +audience, with the large disturbing element opposing intermingled +among them, with him. But long before the closing of his discourse +it became apparent that John Sherman is able to defend his position, +even in the camp of the enemy, while the ungentlemanly acts of the +disorganizing element were disgusting to the better element of +their party. It also effectively revived the lukewarm Republicans +in this community, and it may be well said that John Sherman did +what no other man could have done, that is, to go to a place like +Toledo, stand before an organized party which was determined to +prevent his speaking, while his own party was lukewarm toward him +--it was frequently asserted here 'John Sherman had not a single +friend in the city'--and during his speech of two hours turn the +popular tide in his favor, as was evident he did from the hearty +applause he received as he proceeded in his remarks; and it is safe +to say that no man in these United States could have done the +Republican cause, in this place, the good that Secretary Sherman +did by his speech, and the 'Toledo National hoodlums,' in their +efforts to break up the meeting, 'gave the old man a reception,' +as was remarked on the streets; but throughout his speech he kept +his temper, kept cool and considerate, made remarks of cheer by +saying, 'This is only a love feast,' and 'We will feel better +natured after a while, as we become better acquainted,' etc., etc." + +The narrative given by the correspondent is perhaps a little +exaggerated, but the general outlines are correct, as I very +distinctly remember. The result was that my carefully prepared +speech was knocked into "pi," and I had to depend upon the resources +of the moment to make a speech suitable to the occasion and the +crowd. The Cincinnati "Enquirer," to which, as to other papers, +a copy of the prepared address had been sent, had two stenographers +in Toledo to report the speech as made and telegraph it to the +paper. They did so and the speech as reported and published in +the "Enquirer" was so much more sensational and better than the +prepared speech that it was selected by the Republican state +committee for publication as a campaign document. This enterprise +of an unfriendly newspaper resulted to my advantage rather than my +detriment, for on account of the interruptions the speech reported +was much more readable than the other. + +No doubt the feeling in Toledo grew out of the long depression that +followed the panic of 1873, that for a time arrested the growth +and progress of that thriving and prosperous city. The people +wanted more money, and I was doing all I could, not only to increase +the volume of money by adding coin to our circulation, but to give +it value and stability. I have spoken in Toledo nearly every year +since, and have always been treated with courtesy and kindness, +and many of my best friends now in Toledo are among those who joined +in interrupting me, and especially their leader, Mr. Scott. + +From Toledo I went to Cincinnati. I have been for many years an +honorary member of the Chamber of Commerce of Cincinnati, a body +of business men as intelligent and enterprising as can be found +anywhere. It has been my habit to meet them once a year and to +make a short speech. This I did on August 28. The "Gazette" +reported my visit as follows: + +"Secretary Sherman was on 'change yesterday, and, at the close of +the business hour, he was introduced by President Hartwell, and +was greeted with applause, after which he spoke as follows: + +'Gentlemen:--It gives me pleasure to meet so many of the active +business men of Cincinnati, even for a brief period. In the office +which I hold I have a great deal to do with merchants, like these +engaged in the exchange of the products of our industries, and I +congratulate you, first of all, that this fall, by the bounty of +Divine Providence, you will have to market the largest crop we have +ever gathered in this country since the world was born. + +'In every part of our country, with but few exceptions, and only +as to certain crops, are crops greater than ever before, and you +will have to buy and sell them. + +'The only point of an unpleasant nature, that occurs to me, affecting +the industrial interests which you so largely represent, is the +misfortune which has befallen large portions of the south, where +yellow fever, one of the worst enemies of human life, now has spread +a pall of distress among our southern brethren. I am glad, fellow- +citizens, that you are doing something to contribute to the relief +of their sufferings, because business men, above all others, are +to be humane and generous to those who are in distress. + +'That this will, to some extent, affect the business of gathering +cotton, I have no doubt will occur to you all, but you can only +hope that it will be but a brief season until the frost will +dissipate the distress of the south and the cotton crop may be +safely gathered. + +'There is another thing I can congratulate you upon as business +men, that is--our currency is soon to be based upon the solid money +of the world. I do not want to talk politics to you, and I do not +intend to do so, but I suppose it is the common desire of all men +engaged in business to have a stable, certain standard of value, +and although you and I may differ as to the best means of obtaining +it, and as to whether the means that have been adopted have been +the proper means, yet I believe the merchants of Cincinnati desire +that their money shall be as good as the money of any country with +which we trade. And that, I think, will soon be accomplished. + +'Now, gentlemen, I do not know that there is any other topic on +which you desire to hear from me. I take a hopeful view of our +business affairs. I think all the signs of the times are hopeful. +I think it a hopeful fact that, after this week, there will be an +end of bankruptcies, that all men who believe that they are not in +a condition to pay their debts will have taken the benefit of the +law provided for their relief, and, after Saturday next, we will +all stand upon a better basis--on the basis of our property and +our deserved credit. + +'It has been the habit, you know, of one of your able and influential +journals to charge me with all the bankruptcies of the country. +If a grocer could not sell goods enough to pay expenses, and a +saloon keeper could not sell beer enough to get rich, and took the +short way of paying his debts, this paper would announce the fact +that he had "Shermanized." [Laughter.] And if a bank was robbed, +or the cashier gobbled the money in the safe and left for parts +unknown, this able editor announced that the bank had "Shermanized." +And thus this paper contributed largely to the very result it +denounced. You understand how this thing works. + +'But we have passed through this severe crisis. It has been common +in all countries and all states that carry on extensive commercial +transactions with each other. I believe that we are through with +this one; a ray of hope has dawned on us, and we are certainly +entering upon a career of prosperity. Every sign of business is +hopeful. We have paid off immense amount of our debts. We do not +owe Europe anything of consequence. We have gone through the debt +paying process. A few years ago we were running in debt at the +rate of $100,000,000 a year, but lately we have been paying off +our debt at the rate of $100,000,000 a year. From this time on we +will be more prosperous. Take heart, you men of Cincinnati; you +men who represent the great interests in this great city; you who +live in the heart of the great west, take heart in the transaction +of your business, because I believe you have reached a solid basis +upon which to conduct your business profitably, the basis of solid +coin.'" + +From Cincinnati I went to Lancaster, the place of my birth, and +where my eldest sister, Mrs. Reese, resides. I need not say that +the visit was a pleasant one, for it was necessarily so. A great +many among those whom I saw had been my associates in boyhood, and, +as a matter of course, the topics of conversation were mainly of +the past. A dispatch to the Cincinnati "Gazette" of the date of +August 30, briefly describes my visit and gives the substance of +a few remarks I was called upon to make by an impromptu gathering +in the evening at the residence of my sister: + +"The Lancaster band serenaded Secretary John Sherman this evening, +at the residence of his sister, Mrs. General Reese. A very large +crowd assembled on the occasion, and, in response, Senator Sherman +made one of the neatest, pleasantest, and most satisfactory little +talks heard here for many a day. Of course he began by touching +upon his early boyhood, and some of the incidents of the same spent +here in old Lancaster, the place of his nativity; told of his +incipient struggles in life with the rod and chain on an engineer +corps in the Muskingum valley; how he was ushered into the sterner +vicissitudes of life, and how he drifted into politics; and then, +without using the occasion for party purposes, without making a +political speech, he explained in well selected language his position +as an officer of the government; what was the course prescribed +for him to do, how he was doing it, and concluding with a most +clear and intelligible exegesis of the resumption act; what it was, +its intent, purpose and meaning; and with convincing nicety and +clearness, and evident satisfactoriness, was his explanation given, +that he was frequently interrupted by spontaneous applause from +the crowd. He told how the credit of the country was advancing as +we near the solid foundation of hard money; how the American people +were the most favored, the greatest blest, the freest and most +prosperous people on the earth; how the signs of the times in busy +shops and abounding field told of the disappearing hard times, and +the dawning of an era of greater peace and prosperity." + +I returned to Washington, and at once proceeded to arrange with +the treasurer and assistant treasurers of the United States to make +the change from currency to coin easy. I conferred with General +Hillhouse, assistant treasurer at New York, upon the subject and +had his opinions verbally and in writing. I conferred freely with +James Gilfillan, treasurer of the United States, and, as a result +of these conferences, on the 3rd of September, I directed the +treasurer of the United States, upon the receipt by him, from any +person, of a certificate, issued by any assistant treasurer, designed +depositary, or national bank designated as a public depositary of +the United States, stating that a deposit of currency had been made +to his credit in general account of the sum of one thousand dollars, +and any multiple thereof, not exceeding ten thousand dollars, to +cause a shipment to be made, from some mint of the United States +to the person in whose name the certificate was issued, of a like +amount of standard silver dollars, the expense of transportation +to be paid by the mint. + +The sole purpose of this order was to facilitate the circulation +of standard silver dollars for all purposes as currency, but not +to issue them so as to be used directly in making those payments +to the government which were required to be made in coin. I wished +to avoid their deposit for silver certificates. Officers receiving +deposits of currency were expected, as far as practicable, to see +that the silver dollars were put in circulation. Shipments, however, +were to be made only to points in the United States reached through +the established express lines by continuous railway or steamboat +communication. + +I regarded this as practically the resumption of specie payments +in silver dollars, but the chief object aimed at was to secure a +general distribution of these dollars throughout the United States, +to the extent of the demand for them, without forcing them into +circulation. + +General Hillhouse recommended the payment of silver for all purposes, +not only for circulation, but for the payment of bonds and customs +duties. This I fully considered, but thought it best for the +present to get into ordinary circulation among the people, in points +remote from the ports of entry, as much silver coin as practicable, +before offering it freely in cities where it would be immediately +used for customs duties. I said: "If, within a month or so, we +are able to reduce our stock of silver to five or six millions, I +should not hesitate a moment to offer it then freely in New York +and elsewhere, and run the risk of doing without gold revenue for +awhile." + +On September 7 I issued the following order: + + "Treasury Department, September 7, 1878. +"Hon. James Gilfillan, Treasurer of the United States. + +"Sir:--On and after the 16th day of this month you are authorized, +at the treasury in Washington, and at the several sub-treasuries +in the United States, to exchange standard silver dollars for United +States notes. + + "Very respectfully, + "John Sherman, Secretary." + +The question was raised in the public prints, and in the department, +whether I had legal authority, under the existing laws, to pay +silver dollars in exchange for United States notes before the 1st +of January. It was plausibly urged that the payment of this coin +in advance of the time fixed for resumption was the exercise of +authority not authorized by law. I, therefore, on the 13th day of +September, three days before the previous order would take effect, +directed the treasurer of the United States as follows: + + "Treasury Department, September 13, 1878. +"Hon. James Gilfillan, Treasurer United States. + +"Sir:--Some question has been made whether the issue of silver +dollars in exchange for United States notes, before January 1, +next, is in entire accordance with the legislation of Congress +bearing on the subject, and, therefore, you will please postpone +the execution of department order of the 3rd instant until further +instructions, and withhold from transmission to assistant treasurers +the order of the 7th. + +"Silver dollars will be issued as heretofore, in the purchase of +silver bullion, in payment of coin liabilities, and in the mode +pointed out in your order of July 19, as modified. + +"With a view to their payment on current liabilities, you will +request that each disbursing officer estimate the amount he can +conveniently disburse. + + "Very respectfully, + "John Sherman, Secretary." + +This change of my opinion was the subject of much criticism in the +public prints. Some complained that I was unfriendly to the silver +dollar and sought to prevent its use, and others complained that +its use before the 1st of January as a substitute for gold coin +was a violation of the law. My only purpose was to accustom the +people to the use of the silver dollar in the interior of the +country at places where it could not be used in the payment of +customs duties. These could only be paid in coin, and, in view of +resumption, I desired to strengthen the treasury as much as possible +by the receipt of gold coin. The charge that I was guilty of +changing my mind did not disturb me when I was convinced that I +had exceeded my authority in the issue of the first order. + +At that time there was an evident reluctance to pay coin into the +treasury for four per cent. bonds sold, when, within a brief period, +United States notes could be paid for such bonds. I therefore +directed the treasurer of the United States: "Where deposits with +national banks on account of subscriptions to the four per cent. +loan have not been paid into the treasury within ninety days after +the deposit was made, you will at once draw for the amount of such +deposits, to be forthwith paid into the treasury, and as such +deposits accrue under this rule, you will make such withdrawals +until the whole is paid." + +I also directed the chief of the loan division as follows: + +"No doubt most of the depositaries will place coin to their credit +within the period of the call outstanding after subscriptions are +made, according to the circular of the 1st ultimo, but if this is +not done, the deposit must be withdrawn at the expiration of ninety +days from the date of subscription." + +I also advised August Belmont & Co., that the department expected +that by the 1st of October the remainder of the coin then due upon +the four and a half per cent. bonds, both from the American sales +and those made in London, would be paid into the treasury; that it +was deemed best that this should be done, so that the account of +this loan might be closed as soon thereafter as the books could be +made up. This request was promptly complied with. + +Early in October there were many rumors in circulation charging +that prominent capitalists and speculators were combining to defeat +resumption. Among them Jay Gould was mentioned as being actively +engaged in "bearing" the market. About this period I received from +him the following letter: + + "578 Fifth Avenue, Oct. 17, 1878. +"Hon. John Sherman. + +"Dear Sir:--Referring to recent newspaper statements that I have +been interested in movements either to tighten money or create a +scarcity of gold and thus interfere with natural and early resumption, +I beg to say that they are without the slightest foundation. On +the contrary I feel a very deep interest in your efforts, so far +eminently successful in carrying the country to a successful +resumption. + +"_If resumption is made a real success it will be accompanied with +substantial business prosperity and do more to strengthen and retain +the ascendency of the Republican party than any and all other +reasons_. + +"The real causes of the recent disturbances in the money market +are the following: + +"First. Government bonds have come back from Europe faster than +investment orders would absorb them--the surplus are carried on +call loans and have absorbed several millions of dollars. + +"Second. The financial troubles in England are retarding the rapid +movement of western produce. The elevators at Chicago and Milwaukee +are full of grain; at Chicago alone about 7,000,000 bushels. The +currency sent west to pay for this grain will not be released until +the grain is marketed. + +"Third. A large amount of foreign capital usually lent on call in +Wall street has been transferred to London and Liverpool as money +commands (or has until recently) better rates there than in New +York. + + "I remain, yours very truly, + "Jay Gould." + +The purchase of four per cent. bonds sensibly increased in October. +As the six per cent. bonds could not be paid within ninety days +after the call, the purchasers of the four per cent. bonds claimed +the right to pay for such bonds in United States notes, which on +the 1st of January would be redeemable in coin. To this I replied +that as the sale of four per cent. bonds was solely for the purpose +of refunding the six per cent. bonds, the proceeds of the sale must +be such as could be lawfully paid for called bonds. "Under existing +law the treasury is required to and will redeem in coin, on and +after January 1, 1879, United States legal tender notes, on +presentation at the sub-treasury in New York, and will then receive +such notes in payment for four per cent. bonds. The department +does not anticipate any change in the law that would operate to +prevent this, but cannot stipulate against any act which Congress +in its judgment may pass." + +Every facility which the law allowed to promote the easy change in +the basis of our currency was carefully considered and adopted. +The chief measure adopted was to promote exchanges in the clearing +house in New York, so that only the balance of debits or credits +would actually be paid. I requested Assistant Secretary French to +examine whether, under existing law, such an arrangement was in +the power of the department, and called his attention to previous +correspondence in 1875 in the department on this subject. He came +to the conclusion that the existing law would not justify such an +arrangement. John Jay Knox, comptroller of the currency, however, +favored the admission of the assistant treasurer of the United +States at New York as a member of the clearing house. He said: + +"The proposition is favored by the banks generally, and it is +believed that the representation of the treasury department in the +clearing house will facilitate the transaction of business between +the department and the banks, and I therefore respectfully suggest +that application be made for the admission of the assistant treasurer +in New York to the Clearing House Association, provided it shall +be found that there is no legal objection thereto." + +General Hillhouse also was strongly in favor of the plan proposed. +He said: + +"The plan of going into the clearing house was proposed in +correspondence with the department several years ago, as a remedy +for the risk incurred in the collection of checks, and if there +are no legal impediments in the way, it would very much simplify +the business of the office if it could be adopted. The effect in +connection with resumption would also, I think, be good, as it +would place the banks and the treasury on the same footing with +respect to the use of United States notes in settlements, and thus +aid in maintaining them at par with gold in all the vast transactions +connected with our internal trade and commerce. I have not given +the question sufficient thought to speak with confidence, but it +seems to me a very important one, and well worthy of careful +consideration." + +A committee of the clearing house called upon me and the subject +was thoroughly considered. Mr. Gilfillan wrote to General Hillhouse +as follows: + + "Treasury of the United States.} + "Washington, November 9, 1878. } +"Sir:--By direction of the secretary, I have the honor to request +that you will submit to the Clearing House Association of the banks +of your city the following propositions, and, upon obtaining the +assent of the association to them and communicating that fact to +the department, you are expected to act in conformity with them. + +"First. Hereafter, drafts drawn upon any bank represented in the +Clearing House Association in the city of New York, received by +the assistant treasurer in that city, may be presented to such bank +at the clearing house for payment. + +"Second. Hereafter, drafts drawn on the assistant treasurer at +New York may be adjusted by him at the clearing house, and the +balances due from the United States may be paid at his office in +United States notes or clearing house certificates. + +"Third. After the 1st of January next, payment of checks presented +to the assistant treasurer by any bank connected with the clearing +house may be made by him in United States notes. + + "Very respectfully, + "James Gilfillan, Treasurer United States. +"Hon. Thomas Hillhouse, Assistant Treasurer United States, New + York." + +General Hillhouse, on the 12th of November, advised me of the +receipt of this letter, and that the propositions of the treasurer +were referred to the Clearing House Association, that a meeting +would be held and there was little doubt but that they would be +accepted. + +On the same day the Clearing House Association, fifty out of fifty- +eight banks, members of the associations, being present, unanimously +adopted the following resolutions: + +"_Resolved_, That in order to facilitate the payment of drafts and +checks, between the treasurer of the United States and the associated +banks, the manager of the New York clearing house is authorized to +make such an arrangement with the assistant treasurer as will +accomplish that purpose through the medium of the clearing house. + +"_Resolved_, That the reported interview between the members of +the clearing house committee and the Secretary of the Treasury, +with the views expressed by them to him in the paper presented to +this meeting upon the subject of the restoration of specie payments, +meets the cordial approbation of this association, and that the +practical measures recommended for the adoption of the banks in +respect to their treatment of coin in their business in the public, +and with each other, be accepted and carried into practical operation; +and, in pursuance thereof, it is hereby further + +"_Resolved_, That the associated banks of this city, after the 1st +of January, 1879, will, first, decline receiving gold coins as +'special deposits,' but accept and treat them as lawful money; +second, abolish special exchanges of gold checks at the clearing +house; third, pay and receive balances between banks at the clearing +house, either in gold or United States legal tender notes; fourth, +receive silver dollars upon deposit only, under special contract +to withdraw the same in kind; fifth, prohibit payments of balances +at the clearing house in silver certificates, or in silver dollars, +excepting as subsidiary coin, in small sums (say under $10); sixth, +discontinue gold special accounts, by notice to dealers, on 1st of +January next, to terminate them. + +"_Resolved_, That the manager of the clearing house be requested +to send copies of the proceedings of this meeting to clearing houses +in other cities, with an expression of the hope that they will +unite in similar measures for promoting the resumption of coin +payments." + +I accepted in the following note: + + "Treasury Department, } + "Washington, D. C., November 13, 1878.} +"George S. Cox, President American Exchange National Bank, New York. + +"Sir:--Your letter of yesterday, advising me of the adoption by +the Clearing House Association of the result of our recent interview, +is received with much pleasure. + +"The end we all aim at, a specie standard and a redeemable currency, +is greatly promoted by the judicious action of the banks, and I +will, with greater confidence, do my part officially in securing +the maintenance of resumption. + + "John Sherman, Secretary." + +This arrangement, entered into with care, proved to be a measure +of very great advantage to the government as well as to all business +men engaged in the great commercial operations of New York. The +necessary details to carry this agreement into effect were arranged +between General Hillhouse, for the United States, and W. A. Camp, +manager of the New York clearing house. + + +CHAPTER XXV. +INVESTIGATION OF THE NEW YORK CUSTOMHOUSE. +A General Examination of Several Ports Ordered--No Difficulty Except +at New York--First Report of the Commission--President Hayes' +Recommendations--Letter of Instructions to Collector C. A. Arthur +--Second Report of the Commission--Losses to the Government by +Reason of Inefficiency of Employees--Various Measures of Reform +Recommended--Four Other Reports Made--The President Decides on the +Removal of Arthur, Cornell and Sharpe--Two Letters to R. C. McCormick +on the Subject--Arthur et al. Refuse to Resign--The Senate Twice +Refuses to Confirm the Men Appointed by the President to Succeed +Them--Conkling's Contest Against Civil Service Reform--My Letter +to Senator Allison--Final Victory of the President. + +At the beginning of the administration of President Hayes, and for +months previous, there had been complaints as to the conduct of +business in the principal customhouses of the United States. This +was especially called to my attention, and at my suggestion the +President directed an examination into the conduct of the customhouses +at New York, Philadelphia, New Orleans, San Francisco and perhaps +other ports. Examinations were made by intelligent business men +selected in the various ports, and full reports were made by them, +and printed as public documents. Many changes were made, and +reforms adopted, founded upon these reports, and there was no +difficulty except only at the port of New York, where more than +two-thirds of all the customs revenue was collected. Chester A. +Arthur was then collector of the port, A. B. Cornell was naval +officer, and George H. Sharpe was appraiser. + +On the 23rd of April, 1877, I designated John Jay, Lawrence Turnure, +of New York, and J. H. Robinson, Assistant Solicitor of the Treasury, +as a commission on the New York customhouse. They were requested +to make a thorough examination into the conduct of business in that +customhouse. Full instructions were given and many specifications +were made in detail of all the points embraced in their examination. + +On the 24th of May they made their first report, preferring to +treat the general subject-matter separately. This report related +chiefly to appointments upon political influence without due regard +to efficiency. I promptly referred it to the President, and received +the following letter: + + "Executive Mansion, } + "Washington, May 26, 1877.} +"My Dear Sir:--I have read the partial report of the commission +appointed to examine the New York customhouse. I concur with the +commission in their recommendations. It is my wish that the +collection of the revenues should be free from partisan control, +and organized on a strictly business basis, with the same guarantees +for efficiency and fidelity in the selection of the chief and +subordinate officers that would be required by a prudent merchant. +Party leaders should have no more influence in appointments than +any other equally respectable citizens. No assessments for political +purposes, on officers or subordinates, should be allowed. No +useless officer or employee should be retained. No officer should +be required or permitted to take part in the management of political +organizations, caucuses, conventions, or election campaigns. Their +right to vote, and to express their views on public questions, +either orally or through the press, is not denied, provided it does +not interfere with the discharge of their official duties. + + "Respectfully, + "R. B. Hayes. +"Hon. John Sherman, etc." + +My answer to the commission was as follows: + + "Treasury Department, May 26, 1877. +"Gentlemen:--Your first report on the customhouse in New York, of +date the 24th instant, has been received, and the reduction proposed +by you of twenty per cent. of the number of persons employed therein +is approved. + +"So far as these offices are created by law, vacancies will be made +and left for the action of Congress. The reduction of the other +employees, the number of whom and whose compensation are not fixed +by law, will be made as soon as practicable. + +"I am much gratified that the collector, the naval officer, and +the surveyor of the port, concur with you in the proposed reduction. + +"The hours of employment, after the 31st of this month, will be +from 9 o'clock a. m. till 4 o'clock p. m., excepting where a longer +time is prescribed by law. This corresponds to the hours of clerical +service in this department. This rule will be strictly enforced, +and absence will be the cause of reduction of pay or removal. +Strict attention to duty will be required, and other business will +not be allowed to interfere with the full discharge of the duty +attached to the office. + +"I notice that you do not suggest a mode of carrying into effect +the reduction of the force recommended, and I cannot, with due +regard to the remaining subjects of your inquiry, ask you to extend +your investigation into the _personnel_ of each employee, his +character, efficiency, and merits. This must be mainly left to +the collector, who, by law, is authorized to employ, with the +approval of the Secretary of the Treasury, proper persons as deputy +collectors, weighers, gaugers, and measurers, in the several ports +within his district. Thus, nearly all the officers of the customhouse +are appointed by the collector, and, with the approval of the +Secretary of the Treasury, may be removed at pleasure. He will be +promptly called upon, under special orders, to perform this delicate +and onerous duty. It is very important that it should be executed +with due regard to the efficiency and merit of the employees, and +so as best to promote the public service. + +"In order that a rule might be furnished him, I called upon the +President for instructions to govern alike the collector and myself +in the execution of this duty. A copy of his answer is hereto +annexed. You will see from it that he approves your recommendations, +and that he wishes the customhouse conducted free from partisan +control, on a strictly business basis, with the same guarantees +for efficiency and fidelity in the selection of the chief and +subordinate officers that would be required by a prudent merchant; +that the public business should not be affected injuriously by the +interests or influence of party leaders or party struggles; and +that, while an officer should freely exercise his political rights +as a citizen, he should not use his power as an officer to influence +the conduct of others. + +"I believe the opinions expressed by the President will meet with +your hearty approval, and they are in harmony with your report. + +"Permit me to add the thanks of this department for your care, +ability and industry in conducting this inquiry. + + "Very respectfully, + "John Sherman, Secretary. +"Messrs. John Jay, L. Turnure, and J. H. Robinson, + "Commission on Custom House, New York." + +I inclosed a copy of the report of the commission to Collector +Arthur, with the following letter of instruction: + + "Treasury Department, May 28, 1877. +"Sir:--Inclosed I send you a copy of the first report of the +commission on the New York customhouse, recommending a large +reduction of the employees in the various offices in your collection +district, and the approval and adoption of that report. + +"It only remains now to execute this order, upon the principles +and in the spirit stated by the President. This task, always an +unpleasant one, when it requires the removal of employees, falls +mainly upon you, subject to my approval. It may not be amiss now +for me to state, in advance, somewhat in more detail, my views as +to the mode of reduction. The extent of the reduction is fully +stated in the report, and we are thus relieved from that portion +of the task. + +"I notice by the report that you have an exceptionally large +proportion of experienced officers still in the service. You will +have no difficulty in selecting, from these, the more efficient +and trustworthy to fill the more important positions, and when +these are carefully selected, you will have secured for the duties +of greatest trust, active, efficient, and experienced officers. +It must happen that among those longest in service some are disabled +by age and infirmity. It is often the most painful, but necessary, +duty, to dismiss there, or reduce them to positions which they are +still able to fill. The government is fairly entitled to the +services of those who are fully able to discharge personally the +duties of their office, and who are willing to give their entire +attention to their official duty. If they cannot, or do not, do +this, it is no injustice to remove them. + +"In the selection of inferior officers, the only rule should be +the one daily acted upon by merchants--to employ only those who +are competent for the special work assigned them, whose industry, +integrity, and good habits give guarantees for faithful services, +honestly rendered. This reduction will enable you to transfer +those now employed on work for which they are not fitted, to other +work for which they are competent, and to reward exceptional merit +and ability by promotion. + +"It is impossible, in a force so large as yours, that you should +know the peculiar qualities and merits of each employee, and it is +important, in making selections, that you secure this information +through committees of trusted officers, and in proper cases to test +the intelligence, ability, and qualifications of an officer or +applicant for office by written questions or an oral examination. +In many cases the partiality and influence of relations secure +several persons of the same family in office, thus causing complaints +and favoritism. As a rule, it is best in all cases to have but +one of the same family under your jurisdiction, and no just complaint +can be made if this rule is impartially enforced. + +"The President properly lays great stress on excluding from a purely +business office active participation in party politics. Naturally, +in a government like ours, other things being equal, those will be +preferred who sympathize with the party in power; but persons in +office ought not to be expected to serve their party to the neglect +of official duty, or to promote the interests of particular +candidates, or to interfere with the free course of popular opinion, +or to run caucuses or conventions. Such activity of office-holders +is offensive to the great mass of the people who hold no office, +and gives rise to complaints and irritation. If any have been +appointed for purely political reasons, without regard to their +efficiency, now is a good time to get rid of them. + +"Where actual misconduct is proven, such as receiving gratuities +or bribes, or oppression or insolence in office, or even the want +of common courtesy, or drunkenness or other bad habits tending to +degrade the officer, or absence from or neglect of duty--in all +such cases I know it will be your pleasure to dismiss the employee. + +"The payment of taxes is not pleasant at best, but if rudely enforced +by oppression or discreditable officers, it renders the tax as well +as the tax-collector odious. + +"I do not fix any time within which this reduction must be made, +but shall expect it to be completed by the 30th day of June proximo. +So far as the reduction is specifically made by the adoption of +the report, it should be made by the 1st day of June, and it should +be made as to each particular division or department of the +customhouse as early as practicable. + +"After all, the success of this movement for reform of old abuses, +which existed for many years before you became collector, will +depend mainly upon your good sense and discretion. I assure you +I will heartily sustain and approve any recommendation you may make +that appears to me to tend to make the New York customhouse--not +only what it now is, the most important, but what it ought to be-- +the best managed business agency of the government. + + "Very respectfully, + "John Sherman, Secretary. +"C. A. Arthur, Esq., Collector of Customs, New York." + +When the inquiry commenced there was no purpose or desire on the +part of the President or anyone to make a change in the officers +of the New York customhouse. This is apparent from my letter to +Collector Arthur. The commission proceeded with their examination, +and on the 2nd of July made their second report. This contained +specific charges, but of a general character, against persons +employed in the customhouse. They found that for many years past, +the view had obtained with some political leaders that the friends +of the administration in power had a right to control the customs +appointments; and this view, which seemed to have been acquiesced +in by successive administrations, had of late been recognized to +what the commission deemed an undue extent by the chief officers +of the service. These gentlemen, on the ground that they were +compelled to surrender to personal and partisan dictation, appeared +to have assumed that they were relieved, in part, at least, from +the responsibilities that belonged to the appointing power. + +The collector of the port, in speaking of the "ten thousand +applications," and remarking that the urgency for appointments came +from men all over the country, added, "the persons for whom it is +made bear their proportion of the responsibility for the character +of the whole force." + +The surveyor had said: + +"I had, within the last two weeks, a letter, from a gentleman +holding a high official position, in regard to the appointment of +an officer whom he knows had been dropped three times from the +service for cause. He has also been to see me about him, and the +last time he came he admitted to me that he had been engaged in +defrauding the revenue; and yet he writes me calling my attention +to the case, and requesting his appointment." + +The collector, in his testimony before the commission, said that +"the larger number of complaints probably come from the surveyor +of the port," and, on being asked their character, said: + +"Some are for inefficiency, some are for neglect of duty, some for +inebriety, and some for improper conduct in various ways; some for +want of integrity, and some for accepting bribes." + +The commission further stated: + +"The investigation showed that ignorance and incapacity on the part +of the employees were not confined to the surveyor's department, +but were found in other branches of the service--creating delays +and mistakes, imperiling the safety of the revenues and the interests +of importers, and bringing the service into reproach. It was +intimated by chiefs of departments that men were sent to them +without brains enough to do the work, and that some of those +appointed to perform the delicate duties of the appraiser's office, +requiring the special qualities of an expert, were better fitted +to hoe and to plow. Some employees were incapacitated by age, some +by ignorance, some by carelessness and indifference; and parties +thus unfitted have been appointed, not to perform routine duties +distinctly marked, but to exercise a discretion in questions +demanding intelligence and integrity, and involving a large amount +of revenue. + +"The evidence shows a degree and extent of carelessness which we +think should not be permitted to continue. This point was illustrated +to some degree by the testimony of the chiefs of the appraiser's +department, the important duties of which would certainly justify +a reasonable exactness. The invoices, which are recorded in that +office, and which are sent out to the different divisions to be +passed upon and then returned to the chief clerk, are found to +exhibit, on their return, errors on the part of the several divisions +--according to one witness, nearly eight hundred errors a month-- +although the number by the appraiser was estimated at a lesser +figure. A part of these errors may be assigned to a difference of +opinion as to the classification of the goods; but fully one-half +are attributed to carelessness. At the naval office it was stated +that the balance in favor of the government, of the many and large +errors which they discover in the customhouse accounts of the +liquidation of vessels and statements of refund, amounts to about +a million and a half of dollars per annum." + +The commission entered into a full statement and details as to +irregularities, inefficiency and neglect of duties in different +departments of the customhouse, and recommended various measures +of reform, both in the laws regulating the customs service and its +actual administration. A copy of this report was immediately sent +to Collector Arthur and Naval Officer Cornell, with instructions +to recommend to me the number of each grade for each branch of his +office, with various details designated by me, and to carry into +execution the general recommendations of the commission. I added: + +"You will please take your own way, by committee of your officers +or otherwise, to fix the number of each grade requisite to conduct +the business of your office, and make report as early as +practicable." + +The third report was made on the 21st of July, and related to the +management of the department of weighers and gaugers. + +The fourth report, made on the 31st of August, related to the +appraiser's office. In acknowledging the receipt of this report +on the 12th of September, I stated: + +"The recommendations made by you will be fully examined in detail, +and be acted upon cotemporaneously with the proposed change in the +leading officers of that customhouse." + +Two other reports were made, dated October 31 and November 1, 1877, +the latter containing suggestions as to the recommendations of +legislative amendments to various existing laws and usages. + +After the receipt of the report of August 31 the President, who +had carefully read the several reports, announced his desire to +make a change in the three leading officers of the New York +customhouse. He wished to place it upon the ground that he thought +the public service would be best promoted by a general change, that +new officers would be more likely to make the radical reforms +required that those then in the customhouse. The matter was +submitted to the cabinet, and I was requested to communicate with +these officers, in the hope that they would resign and relive the +President from the unpleasant embarrassment of removing them. On +the 6th of September I wrote to Richard C. McCormick, Assistant +Secretary of the Treasury, who was then at his home near New York +on account of illness, the following letter. I knew that Mr. +McCormick was on friendly terms with Collector Arthur, and that he +might better than I inform him of the wish of the President to +receive the resignations of himself, and Messrs. Cornell and Sharpe: + + "Treasury Department, } + "Washington, D. C., September 6, 1877.} +"Dear Governor:--After a very full consideration, and a very kindly +one, the President, with the cordial assent of his cabinet, came +to the conclusion that the public interests demanded a change in +the three leading offices in New York, and a public announcement +of that character was authorized. I am quite sure that this will, +on the whole, be considered to be a wise result. The manner of +making the changes and the persons to be appointed will be a subject +of careful and full consideration, but it is better to know that +it is determined upon and ended. This made it unnecessary to +consider the telegrams in regard to Mr. Cornell. It is probable +that no special point would have been made upon his holding his +position as chairman of the state committee for a limited time, +but even that was not the thing, the real question being that, +whether he resigned or not, it was better that he and Arthur and +Sharpe should all give way to new men, to try definitely a new +policy in the conduct of the New York customhouse. + +"I have no doubt, unless these gentlemen should make it impossible +by their conduct hereafter, that they will be treated with the +utmost consideration, and, for one, I have no hesitation in saying +that I hope General Arthur will be recognized in a most complimentary +way. + +"Things are going on quietly here, but we miss you very much. Hope +you will have a pleasant time and return to us in fresh health and +vigor. + + "Very truly yours, + "John Sherman. +"Hon. R. C. McCormick." + +On the next day I wrote him a supplementary letter: + + "Treasury Department, } + "Washington, D. C., September 7, 1877.} +"Dear Governor:--Your note of yesterday is received. + +"The action of the President on the New York customhouse cases +turned upon the general question of change there, and not upon +Cornell's case. It happened in this way: General Sharpe, in a +very manly letter, withdrew his application for reappointment as +surveyor of the port. In considering the question of successor +the main point, as to whether the changes in the New York customhouse +rendered necessary a general change of the heads of the departments, +was very fully and very kindly considered, and, without any reference +to Cornell's matter, until it was thought, as a matter of public +policy, it was best to make change in these heads, with some details +about it which I will communicate to you when you return. When +that was seen to be the unanimous opinion, it was thought hardly +worth while to single out Mr. Cornell's case, and act upon it on +the question that affected him alone. If he was allowed to resign +from the committee, it would undoubtedly be upon an implied +supposition that he would be continued as naval officer. I think +even yet he ought to do as he proposed to Orton, but we could not +afford to have him do it with any such implied assent, and, therefore, +it was deemed better to make the formal announcement agreed upon. +You know how carefully such things are considered, and, after a +night's reflection, I am satisfied of the wisdom of the conclusion. + +"I want to see Arthur, and have requested him to come here. You +can say to him that, with the kindest feelings, and, as he will +understand when he sees me, with a proper appreciation of his +conduct during the examination by the commission, there should be +no feeling about this in New York. At all events, what has been +done is beyond recall. + + "Very truly yours, + "John Sherman. +"Hon. R. C. McCormick." + +Mr. McCormick complied with my request, and orally reported his +interview on his return to Washington. We were given to understand +that these officers did not wish to be removed pending the +investigation, as it would seem that they were charged with the +acknowledged defects and irregularities which they themselves had +pointed out. The President was quite willing to base his request +for their resignation, not upon the ground that they were guilty +of the offenses charged, but that new officers could probably deal +with the reorganization of the customhouse with more freedom and +success than the incumbents. I also saw General Arthur, and +explained to him the view taken by the President and his desire +not in any way to reflect upon the collector and his associates, +Cornell and Sharpe. I believed that at the close of the investigation +by the commission these gentlemen would resign, and that their +character and merits would be recognized possibly by appointments +to other offices. + +Acting on this idea, on the 15th of October, I wrote the following +letter to Arthur: + + "Washington, D. C., October 15, 1877. +"Dear Sir:--I regret to hear from Mr. Evarts that you decline the +consulship at Paris which I supposed would be very agreeable to you. + +"As the time has arrived when your successor must be appointed, I +submit to you whether, though your resignation might be inferred +from your letters on file, it would not be better for you to tender +it formally before your successor is appointed. + +"The President desires to make this change in a way most agreeable +to you, and it would be most convenient to have it announced to- +morrow. + +"An early answer is requested. + + "Very truly, etc., + "John Sherman. +"General C. A. Arthur, Collector Customs, New York." + +It soon became manifest that these gentlemen had no purpose to +resign, and that Senator Conkling intended to make a political +contest against the policy of civil service reform inaugurated by +President Hayes. On the 24th of October, 1877, the President sent +to the Senate the nominations of Theodore Roosevelt to succeed +Arthur as collector, Edwin A. Merritt to succeed George H. Sharpe +as surveyor, and L. B. Prince to succeed A. B. Cornell as naval +officer. All of them were rejected by the Senate on the 29th of +October. On the 6th day of December, during the following session, +Roosevelt, Prince and Merritt were again nominated, and the two +former were again rejected. Merritt was confirmed as surveyor on +the 16th of December. + +This action of the Senate was indefensible. There was not the +slightest objection to Roosevelt or Prince, and none was made. +The reasons for a change were given in the report of the Jay +commission. Even without this report the right of the President +to appoint these officers was given by the constitution. To compel +the President to retain anyone in such an office, charged with the +collection of the great body of the revenue from customs, in the +face of such reasons as were given for removal, was a gross breach +of public duty. No doubt the Democratic majority in the Senate +might defend themselves with political reasons, but the motive of +Mr. Conkling was hostility to President Hayes and his inborn desire +to domineer. The chief embarrassment fell upon me. I wished to +execute the reforms needed in the collector's office, but could +only do it with his consent. The co-operation required was not +given, and the office was held in profound contempt of the President. +If the rejection of these nominations had been placed upon the +ground of unfitness, other names could have been sent to the Senate, +but there was no charge of that kind, while specific and definite +charges were made against the incumbents. Other names were mentioned +to the President, and suggestions were made, among others by Whitelaw +Reid, whose letter I insert: + + "New York, March 29, 1878. +"My Dear Mr. Sherman:--Leaving Washington unexpectedly this morning, +I was unable to call again at the treasury department in accordance +with your polite invitation of last night. I have, however, been +thinking over the customhouse problem of which you asked my opinion. +It seems to me, more and more clear, that, if a new appointment is +to be made, it should be controlled by two considerations: First, +the appointee should be a man who can be confirmed; and, second, +he should be a man equal to all the practical duties of the place, +which are necessarily and essentially political as well as +mercantile. + +"To nominate another man only to have him rejected would do great +harm, and the confirmation cannot, by any means, be taken for +granted. I believe it is possible to select some well-known man, +who has carefully studied the subject of revenue collection, and +could bring to the task executive skill, experience, and sound +business and political sagacity, and that such a nomination could +be confirmed. I assume, of course, that any movement of this sort +would be based upon the previous removal of the present incumbent, +for good cause--of which I have been hearing rumors for some time. + +"Pray let me renew more formally the invitation to dine with me, +on the evening of the 10th of April, at seven o'clock, at the Union +League Club, to meet Mr. Bayard Taylor just before his departure +for Berlin. I sincerely hope you can arrange your movements after +the Chester visit so as to make it possible. + + "Very truly yours, + "Whitelaw Reid. +"Hon. John Sherman, Secretary of the Treasury, Washington, D. C." + +The President would not make other appointments during the session +of the Senate, as the implication would arise that the rejections +were based upon opposition to the persons named, and he, therefore, +postponed any action until the close of the session. + +After the close of the session, on the 11th of July, 1878, the +President gave temporary commissions to Edwin A. Merritt as collector +to succeed C. A. Arthur, and Silas W. Burt to succeed Cornell as +naval officer, and these gentlemen entered upon the duties of their +respective offices. + +On the following December it became necessary to send their +nominations to the Senate. I had definitely made up my mind that +if the Senate again rejected them I would resign. I would not hold +an office when my political friends forced me to act through +unfriendly subordinates. I wrote a letter to Senator Allison as +follows: + + "Washington, D. C., January 31, 1879. +"My Dear Sir:--I would not bother you with this personal matter, +but that I feel the deepest interest in the confirmation of General +Merritt, which I know will be beneficial to us as a party, and +still more so to the public service. Personally I have the deepest +interest in it because I have been unjustly assailed in regard to +it in the most offensive manner. I feel free to appeal to you and +Windom, representing as you do western states, and being old friends +and acquaintances, to take into consideration this personal aspect +of the case. If the restoration of Arthur is insisted upon, the +whole liberal element will be against us and it will lose us tens +of thousands of votes without doing a particle of good. No man +could be a more earnest Republican than I, and I feel this political +loss as much as anyone can. It will be a personal reproach to me, +and merely to gratify the insane hate of Conkling, who in this +respect disregards the express wishes of the Republican Members +from New York, of the great body of Republicans, and, as I personally +know, runs in antagonism to his nearest and best friends in the +Senate. + +"Surely men like you and Windom, who have the courage of your +convictions, should put a stop to this foolish and unnecessary +warfare. Three or four men who will tell Conkling squarely that, +while you are his friends, you will not injure our party and our +cause, would put a stop to this business. Arthur will not go back +into the office. This contest will be continued, and the only +result of all this foolish madness will be to compel a Republican +administration to appeal to a Democratic Senate for confirmation +of a collector at New York. It is a most fatal mistake. + +"I intended to call upon some of the Senators this morning, but I +am very much pressed, and will ask you to show this in confidence +to Senator Windom, as I have not time to write him. + + "Very truly yours, + "John Sherman. +"Hon. W. B. Allison, U. S. Senate." + +I wrote to Senator Justin S. Morrill a much longer letter, giving +reasons in detail in favor of confirmation and containing specific +charges of neglect of duty on the part of Arthur and Cornell, but +I do not care to revive them. + +Conkling was confident of defeating the confirmations, and thus +restoring Arthur and Cornell. The matter was decided, after a +struggle of seven hours in the Senate, by the decisive vote in +favor of confirmation of Merritt 33, and against him 24, in favor +of Burt 31, against 19. From this time forward there was but slight +opposition to the confirmation of Hayes' appointments. The reforms +proposed in the customhouse at New York were carried out. + +This termination of the controversy with Arthur and Cornell was +supported by public opinion generally throughout the United States. +I insert a letter from John Jay upon the subject. + + "N. Y. C. H., 24 Washington Square,} + "New York, February 3, 1879. } +"The Honorable John Sherman. + +"My Dear Sir:--Allow me to thank you for the two papers you have +kindly sent me, in reference to the customhouse, the last of which, +the firm message of the President with your second conclusive +letter, reached me to-day. + +"Whatever may be the result in the Senate, and I can scarcely +believe that, after so full an exposure, the nomination will be +rejected, the plain-thinking people of this country will appreciate +the attitude taken by the government as the only one consistent +with the duty of the executive and the general welfare. + +"It will give new hope and confidence to the great body of Republicans, +and to many who can hardly be called Republicans, who look to the +administration for an unflinching adherence--no matter what the +opposition--to the pledge of reform on which the party was successful +in the last election, and on fidelity to which depends its safety +in the next. + +"The country is infinitely indebted to you for redeeming its faith +by a return to honest money. A new debt will be incurred of yet +wider scope if you succeed in liberating the custom service from +the vicious grip of the immoral factions of office holders and +their retainers, who have made it a scandal to the nation with such +gigantic loss to the treasury and immeasurable damage to our +commerce, industry and morals. + +"I hope that the President will feel that all good citizens who +are not blinded by prejudice or interest are thoroughly with him +in the policy and resolve of his message that the customhouse shall +no longer be 'a center of partisan political management.' + +"With great regard I have the honor to be, dear Mr. Sherman, + + "Faithfully yours, + "John Jay." + + +CHAPTER XXXVI. +PREPARATIONS FOR RESUMPTION OF SPECIE PAYMENTS. +Annual Report to Congress on Dec. 2, 1878--Preparations for Resumption +Accompanied with Increased Business and Confidence--Full Explanation +of the Powers of the Treasurer Under the Act--How Resumption Was +to Be Accomplished--Laws Effecting the Coinage of Gold and Silver +--Recommendation to Congress That the Coinage of the Silver Dollar +Be Discontinued When the Amount Outstanding Should Exceed $50,000,000 +--Funding the Public Debt--United States Notes at Par with Gold-- +Instructions to the Assistant Treasurer at New York--Political +Situation in Ohio. + +The annual report made by me to Congress on the 2nd of December, +1878, contained the usual formal information as to the condition +of the treasury, and the various bureaus and divisions of that +department. It was regarded as a fair statement of public affairs +at a time of unusual prosperity. The revenue in excess of expenditures +during the year amounted to $20,799,551.90. + +The statement made by me in this report, in respect to the resumption +of specie payments on the 1st day of January, 1879, is so closely +a narrative of what did happen before and after that date that I +deem it best to quote the language of the report. I then said: + +"The important duty imposed on this department by the resumption +act, approved January 14, 1875, has been steadily pursued during +the past year. The plain purpose of the act is to secure to all +interests and all classes the benefits of a sound currency, redeemable +in coin, with the least possible disturbance of existing rights +and contracts. Three of its provisions have been substantially +carried into execution by the gradual substitution of fractional +coin for fractional currency, by the free coinage of gold, and by +free banking. There remains only the completion of preparations +for resumption in coin on the 1st day of January, 1879, and its +maintenance thereafter upon the basis of existing law. + +"At the date of my annual report to Congress in December, 1877, it +was deemed necessary, as a preparation for resumption, to accumulate +in the treasury a coin reserve of at least forty per cent. of the +amount of United States notes then outstanding. At that time it +was anticipated that under the provisions of the resumption act +the volume of United States notes would be reduced to $300,000,000 +by the 1st day of January, 1879, or soon thereafter, and that a +reserve in coin of $120,000,000 would then be sufficient. Congress, +however, in view of the strong popular feeling against a contraction +of the currency, by the act approved May 31, 1878, forbade the +retirement of any United States notes after that date, leaving the +amount in circulation $346,681,016. Upon the principle of safety +upon which the department was acting, that forty per cent. of coin +was the smallest reserve upon which resumption could prudently be +commenced, it became necessary to increase the coin reserve to +$138,000,000. + +"At the close of the year 1877 this coin reserve, in excess of coin +liability, amounted to $63,016,050.96, of which $15,000,000 were +obtained by the sale of four and a half per cent., and $25,000,000 +by the sale of four per cent. bonds, the residue being surplus +revenue. Subsequently, on the 11th day of April, 1878, the secretary +entered into a contract with certain bankers in New York and London +--the parties to the previous contract of June 9, 1877, already +communicated to Congress--for the sale of $50,000,000 four and a +half per cent. bonds for resumption purposes. The bonds were sold +at a premium of one and a half per cent. and accrued interest, less +a commission of one-half of one per cent. The contract has been +fulfilled, and the net proceeds, $50,500,000, have been paid into +the treasury in gold coin. The $5,500,000 coin paid on the Halifax +award have been replaced by the sale of that amount of four per +cent. bonds sold for resumption purposes, making the aggregate +amount of bonds sold for these purposes, $95,500,000, of which +$65,000,000 were four and a half per cent. bonds, and $30,500,000 +four per cent. bonds. To this has been added the surplus revenue +from time to time. The amount of coin held in the treasury on the +23rd day of November last, in excess of coin sufficient to pay all +accrued coin liabilities, was $141,888,100, and constitutes the +coin reserve prepared for resumption purposes. This sum will be +diminished somewhat on the 1st of January next, by reason of the +large amount of interest accruing on that day in excess of the coin +revenue received meanwhile. + +"In anticipation of resumption, and in view of the fact that the +redemption of United States notes is mandatory only at the office +of the assistant treasurer in the city of New York, it was deemed +important to secure the co-operation of the associated banks of +that city in the ready collection of drafts on those banks and in +the payment of treasury drafts held by them. A satisfactory +arrangement has been made by which all drafts on the banks held by +the treasury are to be paid at the clearing house, and all drafts +on the treasury held by them are to be paid to the clearing house +at the office of the assistant treasurer, in United States notes; +and, after the 1st of January, United States notes are to be received +by them as coin. This will greatly lessen the risk and labor of +collections both to the treasury and the banks. + +"Every step in these preparations for resumption has been accompanied +with increased business and confidence. The accumulation of coin, +instead of increasing its price, as was feared by many, has steadily +reduced its premium on the market. The depressing and ruinous +losses that followed the panic of 1873 had not diminished in 1875, +when the resumption act passed; but every measure taken in the +execution or enforcement of this act has tended to lighten these +losses and to reduce the premium on coin, so that now it is merely +nominal. The present condition of our trade, industry, and commerce, +hereafter more fully stated, our ample reserves, and the general +confidence inspired in our financial condition, seem to justify +the opinion that we are prepared to commence and maintain resumption +from and after the 1st day of January, A. D. 1879. + +"The means and manner of doing this are left largely to the discretion +of the secretary, but, from the nature of the duty imposed, he must +restore coin and bullion, when withdrawn in the process of redemption, +either by the sale of bonds, or the use of the surplus revenue, or +of the notes redeemed from time to time. + +"The power to sell any of the bonds described in the refunding act +continues after as well as before resumption. Thought it may not +be often used, it is essential to enable this department to meet +emergencies. By its exercise it is anticipated that the treasury +at any time can readily obtain coin to reinforce the reserve already +accumulated. United States notes must, however, be the chief means +under existing law with which the department must restore coin and +bullion when withdrawn in process of redemption. The notes, when +redeemed, must necessarily accumulate in the treasury until their +superior use and convenience for circulation enables the department +to exchange them at par for coin or bullion. + +"The act of May 31, 1878, already referred to, provides that when +United States notes are redeemed or received in the treasury under +any law, from any source whatever, and shall belong to the United +States, they shall not be retired, canceled, or destroyed, but +shall be reissued and paid out again and kept in circulation. + +"The power to reissue United States notes was conferred by section +3579, Revised Statutes, and was not limited by the resumption act. +As this, however, was questioned, Congress wisely removed the doubt. + +"Notes redeemed are like other notes received into the treasury. +Payments of them can be made only in consequence of appropriations +made by law, or for the purchase of bullion, or for the refunding +of the public debt. + +"The current receipts from revenue are sufficient to meet the +current expenditures as well as the accruing interest on the public +debt. Authority is conferred by the refunding act to redeem six +per cent. bonds as they become redeemable, by the proceeds of the +sale of bonds bearing a lower rate of interest. The United States +notes redeemed under the resumption act are, therefore, the principal +means provided for the purchase of bullion or coin with which to +maintain resumption, but should only be paid out when they can be +used to replace an equal amount of coin withdrawn from the resumption +fund. They may, it is true, be used for current purposes like +other money, but when so used their place is filled by money received +from taxes or other sources of income. + +"In daily business no distinction need be made between moneys, from +whatever source received, but they may properly be applied to any +of the purposes authorized by law. No doubt coin liabilities, such +as interest or principal of the public debt, will be ordinarily +paid and willingly received in United States notes, but, when +demanded, such payments will be made in coin; and United States +notes and coin will be used in the purchase of bullion. This method +has already been adopted in Colorado and North Carolina, and +arrangements are being perfected to purchase bullion in this way +in all the mining regions of the United States. + +"By the act approved June 8, 1878, the Secretary of the Treasury +is authorized to constitute any superintendent of a mint, or assayer +of any assay office, an assistant treasurer of the United States, +to receive gold coin or bullion on deposit. By the legislative +appropriation bill, approved June 19, 1878, the Secretary of the +Treasury is authorized to issue coin certificates in payment to +depositors of bullion at the several mints and assay offices of +the United States. These provisions, intended to secure to the +producers of bullion more speedy payment, will necessarily bring +into the mints and treasury the great body of the precious metals +mined in the United States, and will tend greatly to the easy and +steady supply of bullion for coinage. United States notes, at par +with coin, will be readily received for bullion instead of coin +certificates, and with great advantage and convenience to the +producers. + +"Deposits of coin in the treasury will, no doubt, continue to be +made after the 1st of January, as heretofore. Both gold and silver +coin, from its weight and bulk, will naturally seek a safe deposit, +while notes redeemable in coin, from their superior convenience, +will be circulated instead. After resumption the distinction +between coin and United States notes should be, as far as practicable, +abandoned in the current affairs of the government; and therefore +no coin certificates should be issued except where expressly required +by the provisions of law, as in the case of silver certificates. +The gold certificates hitherto issued by virtue of the discretion +conferred upon the secretary will not be issued after the 1st of +January next. The necessity for them during a suspension of specie +payments is obvious, but no longer exists when by law every United +States note is, in effect, a coin certificate. The only purpose +that could be subserved by their issue hereafter would be to enable +persons to convert their notes into coin certificates, and thus +contract the currency and hoard gold in the vaults of the treasury +without the inconvenience or risk of its custody. For convenience, +United States notes of the same denomination as the larger coin +certificates will be issued. + +"By existing law, customs duties and the interest of the public +debt are payable in coin, and a portion of the duties was specifically +pledged as a special fund for the payment of the interest, thus +making one provision dependent upon the other. As we cannot, with +due regard to the public honor, repeal the obligation to pay in +coin, we ought not to impair or repeal the means provided to procure +coin. When, happily, our notes are equal to coin, they will be +accepted as coin, both by the public creditor and by the government; +but this acceptance should be left to the option of the respective +parties, and the legal right on both sides to demand coin should +be preserved inviolate. + +"The secretary is of the opinion that a change of the law is not +necessary to authorize this department to receive United States +notes for customs duties on and after the 1st day of January, 1879, +while they are redeemable and are redeemed on demand in coin. +After resumption it would seem a useless inconvenience to require +payment of such duties in coin rather than in United States notes. +The resumption act, by clear implication, so far modifies previous +laws as to permit payments in United States notes as well as in +coin. The provision for coin payments was made in the midst of +war, when the notes were depreciated and the public necessities +required an assured revenue in coin to support the public credit. +This alone justified the refusal by the government to take its own +notes for the taxes levied by it. It has now definitely assumed +to pay these notes in coin, and this necessarily implies the receipt +of these notes as coin. To refuse them is only to invite their +presentation for coin. Any other construction would require the +notes to be presented to the assistant treasurer in New York for +coin, and, if used in the purchase of bonds, to be returned to the +same officer, or, if used for the payment of customs duties, to be +carried to the collector of customs, who must daily deposit in the +treasury all money received by him. It is not to be assumed that +the law requires this indirect and inconvenient process after the +notes are redeemable in coin on demand of the holder. They are +then at a parity with coin, and both should be received indiscriminately. + +"If United States notes are received for duties at the port of New +York, they should be received for the same purpose in all other +ports of the United States, or an unconstitutional preference would +be given to that port over other ports. If this privilege is denied +to the citizens of other ports, they could make such use of these +notes only by transporting them to New York and transporting the +coin to their homes for payment; and all this not only without +benefit to the government, but with a loss in returning the coin +again to New York, where it is required for redemption purposes. + +"The provision in the law for redemption in New York was believed +to be practical redemption in all parts of the United States. +Actual redemption was confined to a single place from the necessity +of maintaining only one coin reserve and where the coin could be +easily accumulated and kept. + +"With this view of the resumption act, the secretary will feel it +to be his duty, unless Congress otherwise provides, to direct that +after the 1st day of January next, and while United States notes +are redeemed at the treasury, they be received the same as coin by +the officers of this department, in all payments in all parts of +the United States. + +"If any further provision of law is deemed necessary by Congress +to authorize the receipt of United States notes for customs dues +or for bonds, the secretary respectfully submits that this authority +should continue only while the notes are redeemed in coin. However +desirable continuous resumption may be, and however confident we +may feel in its maintenance, yet the experience of many nations +has proven that it may be impossible in periods of great emergency. +In such events the public faith demands that the customs duties +shall be collected in coin and paid to the public creditors, and +this pledge should never be violated or our ability to perform it +endangered. + +"Heretofore, the treasury, in the disbursement of currency, has +paid out bills of any denomination desired. In this way the number +of bills of a less denomination than five dollars is determined by +the demand for them. Such would appear to be the true policy after +the 1st of January. It has been urged that, with a view to place +in circulation silver coins, no bills of less than five dollars +should be issued. It would seem to be more just and expedient not +to force any form of money upon a public creditor, but to give him +the option of the kind and denomination. The convenience of the +public, in this respect, should be consulted. The only way by +which moneys of different kinds and intrinsic values can be maintained +in circulation at par with each other is by the ability, when one +kind is in excess, to readily exchange it for the other. This +principle is applicable to coin as well as to paper money. In this +way the largest amount of money of different kinds can be maintained +at par, the different purposes for which each is issued making a +demand for it. The refusal or neglect to maintain this species of +redemption inevitably effects the exclusion from circulation of +the most valuable, which, thereafter, becomes a commodity, bought +and sold at a premium. . . . + +"When the resumption act passed, gold was the only coin which by +law was a legal tender in payment of all debts. That act contemplated +resumption in gold coin only. No silver coin of full legal tender +could then be lawfully issued. The only silver coin provided was +fractional coin, which was a legal tender for five dollars only. +The act approved February 28, 1878, made a very important change +in our coinage system. The silver dollar provided for was made a +legal tender for all debts, public and private, except where +otherwise expressly stipulated in the contract. + +"The law itself clearly shows that the silver dollar was not to +supersede the gold dollar; nor did Congress propose to adopt the +single standard of silver, but only to create a bimetallic standard +of silver and gold, of equal value and equal purchasing power. +Congress, therefore, limited the amount of silver dollars to be +coined to not less than two millions nor more than four millions +per month, but did not limit the aggregate amount nor the period +of time during which this coinage should continue. The market +value of the silver in the dollar, at the date of the passage of +the act, was 93ź cents in gold coin. Now it is about 86 cents in +gold coin. If it was intended by Congress to adopt the silver +instead of the gold standard, the amount provided for is totally +inadequate for the purpose. Experience not only in this country, +but in European countries, has established that a certain amount +of silver coin may be maintained in circulation at par with gold, +though of less intrinsic bullion value. It was, no doubt, the +intention of Congress to provide a coin in silver which would answer +a multitude of the purposes of business life, without banishing +from circulation the established gold coin of the country. To +accomplish this it is indispensable either that the silver coin be +limited in amount, or that its bullion value be equal to that of +the gold dollar. If not, it use will be limited to domestic +purposes. It cannot be exported except at its commercial value as +bullion. If issued in excess of demands for domestic purposes, it +will necessarily fall in market value, and, by a well-known principle +of finance, will become the sole coin standard of value. Gold will +be either hoarded or exported. When two currencies, both legal, +are authorized without limit, the cheaper alone will circulate. +If, however, the issue of the silver dollars is limited to an amount +demanded for circulation, there will be no depreciation, and their +convenient use will keep them at par with gold, as fractional silver +coin, issued under the act approved February 21, 1853, was kept at +par with gold. + +"The amount of such coin that can thus be maintained at par with +gold cannot be fairly tested until resumption is accomplished. As +yet paper money has been depreciated, and silver dollars, being +receivable for customs dues, have naturally not entered into general +circulation, but have returned to the treasury in payment of such +dues, and thus the only effect of the attempt of the department to +circulate them has been to diminish the gold revenue. After +resumption these coins will circulate in considerable sums for +small payments. To the extent that such demand will give employment +to silver dollars their use will be an aid to resumption rather +than a hindrance, but, if issued in excess of such demand, they +will at once tend to displace gold and become the sole standard, +and gradually, as they increase in number, will fall to their value +as bullion. Even the fear or suspicion of such an excess tends to +banish gold, and, if well established, will cause a continuous +drain of gold until imperative necessity will compel resumption in +silver alone. The serious effect of such a radical change in our +standards of value cannot be exaggerated; and its possibility will +greatly disturb confidence in resumption, and may make necessary +large reserves and further sales of bonds. + +"The secretary, therefore, earnestly invokes the attention of +Congress to this subject, with a view that either during the present +or the next session the amount of silver dollars to be issued be +limited, or their ratio to gold for coining purposes be changed. + +"Gold and silver have varied in value from time to time in the +history of nations, and laws have been passed to meet this changing +value. In our country, by the act of April 2, 1792, the ratio +between them was fixed at one of gold to fifteen of silver. By +the act of June 28, 1834, the ratio was changed to one of gold to +sixteen of silver. For more than a century the market value of +the two metals had varied between these two ratios, mainly resting +at that fixed by the Latin nations of one to fifteen and a half. + +"But we cannot overlook the fact that within a few years, from +causes frequently discussed in Congress, a great change has occurred +in the relative value of the two metals. It would seem to be +expedient to recognize this controlling fact--one that no nation +alone can change--by a careful readjustment of the legal ratio for +coinage of one to sixteen, so as to conform to the relative market +values of the two metals. The ratios heretofore fixed were always +made with that view, and, when made, did conform as near as might +be. Now, that the production and use of the two metals have greatly +changed in relative value, a corresponding change must be made in +the coinage ratio. There is no peculiar force or sanction in the +present ratio that should make us hesitate to adopt another, when, +in the markets of the world, it is proven that such ratio is not +now the true one. The addition of one-tenth or one-eighth to the +thickness of the silver dollar would scarcely be perceived as an +inconvenience by the holder, but would inspire confidence, and add +greatly to its circulation. As prices are now based on United +States notes at par with gold, no disturbance of values would result +from the change. + +"It appears, from the recent conference at Paris, invited by us, +that other nations will not join with us in fixing an international +ratio, and that each county must adapt its laws to its own policy. +The tendency of late among commercial nations is to the adoption +of a single standard of gold and the issue of silver for fractional +coin. We may, by ignoring this tendency, give temporarily increased +value to the stores of silver held in Germany and France, until +our market absorbs them, but, by adopting a silver standard as +nearly equal to gold as practicable, we make a market for our large +production of silver, and furnish a full, honest dollar that will +be hoarded, transported, or circulated, without disparagement or +reproach. + +"It is respectfully submitted that the United States, already so +largely interested in trade with all parts of the world, and +becoming, by its population, wealth, commerce, and productions, a +leading member of the family of nations, should not adopt a standard +of less intrinsic value than other commercial nations. Alike +interested in silver and gold, as the great producing country of +both, it should coin them at such a ratio and on such conditions +as will secure the largest use and circulation of both metals +without displacing either. Gold must necessarily be the standard +of value in great transactions, from its greater relative value, +but it is not capable of the division required for small transactions; +while silver is indispensable for a multitude of daily wants, and +is too bulky for use in the larger transactions of business, and +the cost of its transportation for long distances would greatly +increase the present rates of exchange. It would, therefore, seem +to be the best policy for the present to limit the aggregate issue +of our silver dollars, based on the ratio of sixteen to one, to +such sums as can clearly be maintained at par with gold, until the +price of silver in the market shall assume a definite ratio to +gold, when that ratio should be adopted, and our coins made to +conform to it; and the secretary respectfully recommends that he +be authorized to discontinue the coinage of the silver dollar when +the amount outstanding shall exceed fifty million dollars. + +"The secretary deems it proper to state that in the meantime, in +the execution of the law as it now stands, he will feel it to be +his duty to redeem all United States notes presented on and after +January 1, next, at the office of the assistant treasurer of the +United States, in the city of New York, in sums of not less than +fifty dollars, with either gold or silver coin, as desired by the +holder, but reserving the legal option of the government; and to +pay out United States notes for all other demands on the treasury, +except when coin is demanded on coin liabilities. + +"It is his duty, as an executive officer, to frankly state his +opinions, so that if he is in error Congress may prescribe such a +policy as is best for the public interests. + +"The amount of four per cent. bonds sold during the present year, +prior to November 23, is $100,270,900, of which $94,770,900 were +sold under the refunding act approved July 14, 1870. Six per cent. +bonds, commonly known as 5-20's, to an equal amount, have been +redeemed, or will be redeemed as calls mature. This beneficial +process was greatly retarded by the requirement of the law that +subscriptions must be paid in coin, the inconvenience of obtaining +which, to the great body of people outside of the large cities, +deterred many sales. This will not affect sales after resumption, +when bonds can be paid for with United States notes. The large +absorption of United States securities in the American market, by +reason of their return from Europe, together with the sale of four +and a half per cent. bonds for resumption purposes, tended to retard +the sale of four per cent. bonds. As, from the best advices, not +more than $200,000,000 of United States bonds are now held out of +the country, it may be fairly anticipated that the sale of four +per cent. bonds, hereafter, will largely increase. + +"Prior to May, 1877, United States bonds were mainly sold through +an association of bankers. Experience proves that under the present +plan of selling to all subscribers on terms fixed by public +advertisement, though the aggregate of sales may be less, their +distribution is more satisfactory. Under a popular loan the interest +is paid at home, and the investment is available at all times, +without loss, to meet the needs of the holder. This policy has +been carefully fostered by other nations, and should be specially +so in ours, where every citizen equally participates in the government +of his country. The holding of these bonds at home, in small sums +well distributed, is of great importance in enlisting popular +interest in our national credit and in encouraging habits of thrift, +and such holding in the country is far more stable and less likely +to disturb the market than it would be in cities or by corporations, +where the bonds can be promptly sold in quantities. + +"The three months' public notes required by the fourth section of +the refunding act, to be given to holders of the 5-20 bonds to be +redeemed, necessarily involve a loss to the government by the +payment of double interest during that time. The notice should +not be given until subscriptions are made or are reasonably certain +to be made. When they are made and the money is paid into the +treasury, whether it is kept there idle during the three months or +deposited with national banks under existing law, the government +not only pays interest on both classes of bonds during the ninety +days, but, if the sales are large, the hoarding of large sums may +disturb the market. Under existing law this is unavoidable; and, +to mitigate it, the secretary deemed it expedient during the last +summer to make calls in anticipation of subscriptions, but this, +though legal, might, in case of failure of subscriptions, embarrass +the government in paying called bonds. The long notice required +by law is not necessary in the interest of the holder of the bonds, +for, as the calls are made by public notice and the bonds are +indicated and specified by class, date, and number, in the order +of their numbers and issue, he, by ordinary diligence, can know +beforehand when his bonds in due course will probably be called, +and will not be taken by surprise. + +"The secretary therefore recommends that the notice to be given +for called bonds be, at his discretion, not less than ten days nor +more than three months. In this way he will be able largely to +avoid the payment of double interest, as well as the temporary +contraction of the currency, and may fix the maturity of the call +at a time when the interest of the called bonds becomes due and +payable." + +Soon after the passage of the act authorizing the coinage of the +standard silver dollar, and an attempt being made to procure the +requisite bullion for its coinage to some extent at the mints on +the Pacific coast, it was found that the producers and dealers +there would not sell silver to the government at the equivalent of +the London rate, but demanded in addition thereto an amount equal +to the cost of bringing it from London and laying it down in San +Francisco. These terms, being deemed exorbitant, were rejected, +and arrangements were immediately made to bring the capacity of +the mint at Philadelphia to its maximum, with a view to meet the +provisions of law, which required two millions of silver dollars +to be coined in each month, and the available supplies of silver +from domestic sources being entirely insufficient for the coinage +of this amount, the foreign market was indirectly resorted to and +an amount sufficient to meet the requirements of law secured. + +In July, 1878, the principal holders of bullion on the Pacific +coast receded from their position and accepted the equivalent of +the London rate, at which price sufficient bullion was purchased +to employ the mints of San Francisco and Carson on the coinage of +the dollar. + +At the date of my report, United States notes were practically at +par with gold. The public mind had settled into a conviction that +the parity of coin and currency was assured, and our people, +accustomed to the convenience of paper money, would not willingly +have received coin to any considerable amount in any business +transactions. The minor coins of silver, were received and paid +out without question at parity with gold coin, because the amount +was limited and they were coined by the government only as demanded +for the public convenience. The silver dollar was too weighty and +cumbersome and when offered in considerable sums was objected to, +though a legal tender for any sum, and coined only in limited +amounts for government account. Every effort was made by the +treasury department to give it the largest circulation, but the +highest amount that could be circulated was from fifty to sixty +millions, and much of this was in the southern states. All sums +in excess of that were returned to the treasury for silver +certificates. These were circulated as money, like United States +notes and bank bills. This was only possible by the guarantee of +the government that all forms of money would be maintained at parity +with each other. If this guarantee had been doubted, or if the +holder of silver bullion could have had it coined at his pleasure +and for his benefit at the ratio of sixteen to one, the silver +dollar would, as the cheaper coin, have excluded all other forms +of money, and the purchasing power of silver coin would have been +reduced to the market value of silver bullion. + +On the 3rd of December, 1878, I wrote the following letter: + +"Hon. Thomas Hillhouse, + + "United States Assistant Treasurer, New York. +"Sir:--I have this day telegraphed you as follows: + +'After receipt of this you will please issue no more gold +certificates.' + +"In compliance with the above instructions you will not, until +further advised, issue gold certificates either in payment of +interest on the public debt or for gold coin deposited. + +"It is desired that you issue currency in payment of coin obligations +to such an amount as will be accepted by public creditors. + + "Very respectfully, + "John Sherman, Secretary." + +After resumption, United States notes were in fact gold certificates, +being redeemable in coin. On the 4th, I again wrote to General +Hillhouse as follows: + +"Your letter of yesterday is received. The necessity of the recent +order about coin certificates became apparent to the department, +and the only doubt was as to the date of issuing it. After full +consideration, it was deemed best to make it immediate, so that no +more certificates could be asked for. By the 21st of this month +the large denominations of greenbacks will be ready for issue to +you, and after the 1st of January they will be received for customs +duties and paid out for gold coin deposited with you. I am led to +suppose that considerable sums of gold coin will be deposited with +you soon after that date. It is important that the business men +of New York should see the propriety of such a course, with a view +to aid in popular opinion the process of resumption. + +"I would be pleased to hear from you as to whether any additional +force in your office will be necessary in view of resumption. +Every reasonable facility should be given to persons who apply for +coin, and we should be prepared for a considerable demand during +the first month. + +"I will be in New York some time this month, and will confer with +you as to any matters of detail." + +I received the following reply: + + "Office of United States Assistant Treasurer,} + "New York, December 5, 1878. } +"Sir:--I have received your letter of the 4th instant. The issue +of gold certificates, however convenient to the public, had long +ceased to be of any advantage to the government, and in view of +resumption it had become a positive injury, by enabling speculators +to carry on their operations without the risk and expense of handling +the actual coin. So far as I have discovered, the banks and the +business community generally regard the withdrawal of the certificates +as a wise measure. They may be put to some temporary inconvenience +thereby, but they cannot fail to see that, in the use of this and +all other legitimate means of making the great scheme of resumption +a success, the secretary is really promoting their interests, and +that in the end they will be greatly benefitted by the establishing +of a sound and stable currency, which is the object in view. + +* * * * * + + "Very respectfully, + "Thomas Hillhouse, + "Assistant Treasurer United States." + +On the 5th I wrote him as follows: + +"In reply to your letter of the 4th instant, inquiring whether you +are at liberty to pay out the standard silver dollars in exchange +for gold coin, you are authorized to pay out the standard silver +dollars to any amount which may be desired in exchange for gold +coin. + +* * * * * + +"In reply to your letter of yesterday, I have to advise you that +it was the purpose of the order referred to to prohibit the issue +of gold coin certificates for any purpose, including the redemption +of called bonds. It is believed that the reasons for issuing such +certificates have ceased to exist, and that those outstanding should +be redeemed and not reissued. + +"No public end is subserved by receiving coin deposits for private +parties to be held for their benefit, but gold will be received in +exchange for United States notes of any denomination desired, and +such exchange is invited." + +On the 18th I wrote him: + +"I have concluded to direct the prepayment of the coupons maturing +January 1, in coin or United States notes, _as desired by the +holder_, and interest on registered stock, as soon as you can +receive the schedules, which will be about the 28th. While I wish +no hesitation about paying gold to anyone desiring it, it is better +to get people in the habit of receiving currency rather than coin." + +On the 18th General Hillhouse wrote me: + +"Since my letter of yesterday gold has sold at par, the prevailing +rate being one sixty-fourth to three sixty-fourth premium. The +indications now are that the combinations which were presumed to +be operating to keep up the premium have failed so far in their +object, and that, unless unlooked for circumstances should intervene, +the premium will be more likely to fall below the present rate than +to advance." + +On the 27th I sent the following instructions to the treasurer: + + "Treasury Department, December 27, 1878. +"Hon. James Gilfillan, Treasurer United States. + +"Sir:--In connection with the department's circular of the 14th +instant concerning the resumption of specie payments, you are +directed, on and after the 1st proximo, to keep no special account +of coin with any public disbursing officer, and to close any account +of that description at that time standing on your books, keeping +thereafter but one money of account in your office. + +"Similar instructions have this day been sent to the several +independent treasury officers. + + "Very respectfully, + "John Sherman, Secretary." + +On the 28th I wrote the First National Bank of New York: + +"Your letter of yesterday is received. I do not see my way clear +to issue another call until the one now outstanding is covered by +subscription. There is still a deficit of about $4,000,000 on the +71st call. There is not, however, the slightest objection to your +stating authoritatively, or, if desired, I will do so in response +to a direct inquiry, that every dollar of the proceeds of four per +cent. bonds sold during the present year had been applied on calls +for refunding, and it is my purpose to continue this unless I give +public notice to the contrary. + +"I feel the more inclined to refuse to make a call by reason of +the probable requisition that may be made for the Halifax award, +and I do not wish by any chance to impair the resumption fund." + +During the latter part of December the air was full of rumors of +a combination in New York for a run upon the sub-treasury on the +opening of the new year. The alarm was so great that the president +of the National Bank of Commerce in that city, who was also chairman +of the clearing house committee, at three o'clock p. m. on the +30th, with the advice of other bankers, sent me, by special messenger, +an urgent request for the transfer to his bank, on the following +day, from the sub-treasury, of $5,000,000 in gold, in exchange for +a like amount in United States notes, to enable the banks, he said, +to meet a "corner" in gold. To this there could be but one reply. +The treasury had no power to make the transfer, even if it desired +to do so. I therefore declined the proposition, and did not believe +in a "corner." + +During the exciting events connected with resumption and refunding +I did not overlook the political condition in Ohio, and wrote a +letter in regard to it, which I think proper here to insert, as it +presents my view at its date: + + "December 26, 1878. +"My Dear Sir:--Much obliged for your kind letter of the 21st. + +"My official duties engross my time so much that I scarcely catch +a glimpse of home affairs by reading the newspapers, and your +intelligent view is therefore the more interesting. It seems to +me that the nomination of General Garfield for governor and Foster +for lieutenant governor would be a very excellent arrangement, but +I understand that it is not agreeable to them. Garfield has no +desire for the position, while Foster feels that he ought to head +the ticket. An understanding that Garfield is to be Senator might +embarrass us in certain doubtful districts, where the chief contest +would be upon that office. Still such a ticket would be universally +conceded to be very strong and would inspire confidence, and would +be entirely satisfactory to me. Indeed, I wish to be in a condition +to support our political friends in anything they may do in the +convention, without taking an active part in it. + +"The contingency that you refer to with which my name is connected +is still to remote to talk about. I never supposed that a person +occupying my office, open to attack and compelled to say no to so +many persons, could be sufficiently popular to justify any party +in running him for the presidency, and, therefore, I have always +dismissed such suggestions as the kindly compliments of the hour. +Certainly it has not gained my mental consent, nor is it considered +by me as one of the probabilities of the future. If I should get +the maggot in my brain it would no doubt be more likely to hurt +than help. + +"The tendency of public opinion is evidently towards General Grant, +whose absence and good conduct are in his favor, while the involuntary +feeling of Republicans would be in favor of nominating him as a +remonstrance against the violence in the south, and notice that it +must end. + +"However, a year hence will be time enough to settle this matter. + +"I send my hearty greetings for the holiday season, and remain, + + "Very truly yours, + "John Sherman. +"Hon. Richard Smith, Cincinnati, O." + +About this time I received the following letter: + + "United States Legation, } + "Mexico, December 15, 1878.} +"Hon. John Sherman, Washington, D. C. + +"My Dear Sir:--Allow me to send you, as a New Years' greeting, my +hearty congratulations on your successful management of our national +finances and on the resumption of specie payments, which I have no +doubt will be an accomplished fact when this letter reaches you. + +"The nation owes you a great debt for your courage, persistence +and wisdom in adhering to your policy for re-establishing and +maintaining our government credit. To your conduct I attribute +the present honorable position of the Republican party, more than +to any other one influence. I believe that neither the country +nor the party will forget your services. + + "Very truly, + "John W. Foster." + + +CHAPTER XXXVII. +REFUNDING THE NATIONAL DEBT. +Over $140,000,000 of Gold Coin and Bullion in the Treasury January +1, 1879--Diversity of Opinion as to the Meaning of Resumption-- +Effect of the Act to Advance Public Credit--Funding Redeemable +Bonds Into Four per Cents.--Letters to Levi P. Morton and Others-- +Six per Cent. Bonds Aggregating $120,000,000 Called During January, +1879--The Sale in London--Charges of Favoritism--Further Enactments +to Facilitate the Funding--Difficulty of Making Sales of Four per +Cent. Bonds to English Bankers--Large Amounts Taken in the United +States--One Subscription of $190,000,000--Rothschild's Odd Claim-- +Complimentary Resolution of the New York Chamber of Commerce. + +On the 1st of January, 1879, when the resumption act went into +effect, the aggregate amount of gold coin and bullion in the treasury +exceeded $140,000,000. United States notes, when presented, were +redeemed with gold coin, but instead of the notes being presented +for redemption, gold coin in exchange for them was deposited, thus +increasing the gold in the treasury. + +The resumption of specie payments was generally accepted as a +fortunate event by the great body of people of the United States, +but there was a great diversity of opinion as to what was meant by +resumption. The commercial and banking classes generally treated +resumption as if it involved the payment and cancellation of United +States notes and all forms of government money except coin and bank +notes. Another class was opposed to resumption, and favored a +large issue of paper money without any promise or expectation of +redemption in coin. The body of the people, I believe, agreed with +me in opinion that resumption meant, not the cancellation and +withdrawal of greenbacks, but the bringing them up to par and +maintaining them as the equivalent of coin by the payment of them +in coin on demand by the holder. This was my definition of +resumption. I do not believe that any commercial nation can conduct +modern operations of business upon the basis of coin alone. Prior +to our Civil War the United States undertook to collect its taxes +in specie and to pay specie for its obligations; this was the +bullion theory. This narrow view of money compelled the states to +supply paper currency, and this led to a great diversity of money, +depending upon the credit, the habits and the wants of the people +of the different states. The United States notes, commonly called +greenbacks, were the creature of necessity, but proved a great +blessing, and only needed one attribute to make them the best +substitute for coin money that has ever been devised. That quality +was supplied by their redemption in coin, when demanded by the +holder. + +The feeling in the treasury department on the day of resumption is +thus described by J. K. Upton, assistant secretary, in an article +written at the close of 1892: + +"The year, however, closed with no unpleasant excitement, but with +unpleasant forebodings. The 1st day of January was Sunday and no +business was transacted. On Monday anxiety reigned in the office +of the secretary. Hour after hour passed; no news came from New +York. Inquiry by wire showed all was quiet. At the close of +business came this message: '$135,000 of notes presented for coin +--$400,000 of gold for notes.' That was all. Resumption was +accomplished with no disturbance. By five o'clock the news was +all over the land, and the New York bankers were sipping their tea +in absolute safety. + +"Thirteen years have since passed, and the redemption fund still +remains intact in the sub-treasury vaults. The prediction of the +secretary has become history. When gold could with certainty be +obtained for notes, nobody wanted it. The experiment of maintaining +a limited amount of United States notes in circulation, based upon +a reasonable reserve in the treasury pledged for that purpose, and +supported also by the credit of the government, has proved generally +satisfactory, and the exclusive use of these notes for circulation +may become, in time, the fixed financial policy of the government." + +The immediate effect of resumption of specie payments was to advance +the public credit, which made it possible to rapidly fund all the +bonds of the United States then redeemable into bonds bearing four +per cent. interest. Early in January, 1879, I issued a circular +offering the four per cent. funded loan of the United States at +par and accrued interest to date of subscription in coin. It was +substantially similar to the one issued on the 16th of January, +1878, but graded the commission, allowing from one-eighth of one +per cent. to one-fourth of one per cent., according to the amount +subscribed. + +Several letters written about this date will show my view better +than anything I can say now: + + "Washington, D. C., January 6, 1879. +"Dear Sir:--Your note of the 2nd was received upon my return from +the west. + +"Much obliged for subscription, and hope that you will soon get +above the ten millions and thus be entitled to the additional one- +tenth. I cannot, however, allow it on the first ten millions +without adopting it as a rule, which would be impossible, by reason +of the limitation of the entire cost to one-half of one per cent. +I may be compelled to allow the one-eighth commission down to +$1,000, but perhaps not, as I have to carefully husband the limited +fund out of which all expenses must be paid. With the energy and +hopefulness now exhibited, we can easily refund the 5-20's within +this year and, perhaps, within six months. The more rapid the +process the less disturbance it will create. I am hopeful and +sanguine of improving business, not that greenbacks will be so +abundant, but that employment will be ready for everyone willing +to work. + +"Thanks for your congratulations, which I heartily reciprocate, +for the syndicate are entitled to a large portion of the merit now +given to me. As I got more than my share of the abuse, it is +probably thought that I should get more than my share of the credit. + + "Very truly yours, + "John Sherman. +"Hon. L. P. Morton, New York." + + + "Washington, D. C., January 8, 1879. +"R. C. Stone, Esq., Secretary Bullion Club, New York. + +"Dear Sir:--Your letter of the 5th inst., inclosing a card of +invitation from the Bullion Club, to attend a dinner at their club +house on Thursday evening, the 16th inst., is received. + +"I regret that my official duties will not permit me, in person, +to respond to the toast you send me, and I cannot do so, by letter, +in words more expressive than the toast itself, 'To Resumption-- +may it be forever.' + +"Irredeemable money is always the result of war, pestilence, or +some great misfortune. A nation would not, except in dire necessity, +issue its promises to pay money when it is unable to redeem those +promises. I know that when the legal tenders were first issued, +in February, 1862, we were under a dire necessity. The doubt that +prevented several influential Senators, like Fessenden and Collamer, +from voting for the legal tender clause, was that they were not +convinced that our necessities were so extreme as to demand the +issue of irredeemable paper money. Most of those who voted for it +justified their vote upon the ground that the very existence of +the country depended upon its ability to coin into money its promises +to pay. THat was the position taken by me. We were assured by +Secretary Chase that nearly one hundred millions of unpaid requisitions +were lying upon his table, for money due to soldiers in the presence +of the enemy, and for food and clothing to maintain them at the +front. We then provided for the issue of legal tender United States +notes, as an extreme remedy in the nation's peril. It has always +seemed strange that so large and respectable a body of our fellow- +citizens should regard the continuance of irredeemable money as +the permanent policy of a nation so strong and rich as ours, able +to pay every dollar of its debts on demand, after the causes of +its issue had disappeared. To resume is to recover from illness, +to escape danger, to stand sound and healthy in the financial world, +with our currency based upon the intrinsic value of solid coin. + +"Therefore I say, may resumption be perpetual. To wish otherwise +is to hope for war, danger, and national peril, calamities to which +our nation, like others, may be subject, but against which the +earnest aspiration of every patriot will be uttered. + + "Very respectfully yours, + "John Sherman." + + + "January 10, 1879. +"H. C. Fahnestock, Esq., + "Vice President First National Bank, New York. +"Sir:--Your unofficial letter of the 9th inst., suggesting the +danger that may arise from the very large and rapid subscriptions +to the four per cent. bonds, is received. + +"The danger is apparent enough to all, and certainly to those who +purchase without ability to pay at the time stipulated, but it is +not one that the government can guard against, except only by taking +care to have ample security for each subscription. + +"In the face of the advertisement now outstanding, I could not +withdraw the money from deposit with subscribing banks, until at +or near the time of the maturity of the call, when they must be +prepared to pay. It is not the interest of the government to force +subscriptions beyond the ability of investors, but we cannot check +subscriptions by any violation of the public advertisement or any +public caution against the danger that is open to everyone. + + "Very truly yours, + "John Sherman." + + + "Washington, D. C., January 13, 1879. +"George Kerr, Esq., Janesville, Bremer Co., Iowa. + +"Sir:--I have received your letter of the 6th instant inclosing a +slip cut from the Bremer County 'Independent,' a weekly paper +published in Waverly, containing a statement to the effect that +the First National of New York is enjoying, from the department, +special privileges in the matter of holding public money on account +of subscriptions to the four per cent. consols of 1907, and receiving +from the government unusual commissions on subscription. + +"It is needless to say to you that the statement is entirely +erroneous from beginning to end. + +"In the department's circular of the first instant, a copy of which +is hereby inclosed for your information, _all_ national banks are +invited to become financial agents, and depositaries of public +moneys received on account of the sale of these bonds, and the +commissions allowed on subscriptions are plainly stated therein. +Over one hundred (100) national banks have been thus designated as +depositaries for the purpose mentioned, and all are treated precisely +alike, both as to commissions allowed and balances held. + +"The First National Bank of New York enjoys, as a United States +depositary, no special privileges whatever from the department. +It has, however, thus far, subscribed for a larger amount of four +per cent. bonds than any other bank, and has, consequently, received +a larger amount for commissions. But any other bank subscribing +for the same amount of bonds would, of course, receive the same +amount for commissions. + + "Very respectfully, + "John Sherman, Secretary." + + + "Treasury Department, } + "Washington, D. C., January 14, 1879.} +"H. C. Fahnestock, Esq., New York. + +"Dear Sir:--Your note of the 13th instant is received. + +"In buying the fours thrown upon the market, you are rendering as +much service to the government as if you bought directly. Indeed, +I am glad you are buying from the market rather than from the +department. I do not wish to force this refunding operation too +much, lest it may embarrass resumption. I only fear that some +eager parties may subscribe for more than they can sell and pay +for by called bonds or coin within the running of the call. This +is the only contingency that disturbs me. + + "Very respectfully, + "John Sherman." + +My published correspondence shows that with all the efforts and +strength of the department it was impossible to keep up with the +subscriptions for bonds pouring in from all parts of the United +States and from Europe. Over sixty millions were subscribed for +in the first two weeks of January. Offers made by me in December, +though not accepted at the time, were made the grounds of demands +in January, when conditions had greatly changed. As the money +received for four per cent. bonds could not be applied to the +payment of six per cent. called bonds until interest on such bonds +ceased, ninety days after the call, I feared that the enormous +deposits would create a serious stringency in the money market, +and perhaps cause a panic after the first of April. The banks and +bankers in New York, as well as in other large cities of the United +States, were actively competing to swell these subscriptions, so +as to get the larger commission offered for the greater amount of +bonds sold. Such a contest occurred between the First National +Bank of New York, and Seligman & Co., and their associates. In +ended in a contract made on the 21st of January, between the +Secretary of the Treasury and the former syndicate, by which the +latter subscribed for $10,000,000 of four per cent. bonds, on the +terms stated in my circular of January 1, and $5,000,000 a month +thereafter, the secretary reserving the power to terminate the +contract. + +On the same day a call was made for $20,000,000 of six per cent. +bonds. Another call for a like amount was made on the 28th. The +aggregate call for six per cent. bonds in January was $120,000,000. + +Charles F. Conant was again appointed as the funding agent of the +treasury department, and directed to assume the general management +and supervision of all business in London arising from the funding +of bonds. He was instructed to advise me frequently as to the +condition of the business intrusted to him. + +The object of this sale of bonds in London was stated in the public +prints, and also in the following letter: + + "Treasury Department, January 22, 1879. +"Charles M. Fry, Esq., + "President Bank of New York, National Banking Association, New + York. +"Sir:--Your telegram was received yesterday. + +"The syndicate arrangement was confined to the sale of bonds in +Europe, where it is deemed important to sell bonds partly to cover +called bonds held abroad; and a contract has been made with bankers +having houses in London, on precisely the same terms as were extended +to all in this country. It was thought that this would be best +for the domestic loan. No contract of arrangement will be made to +interfere in any way with the free, open, popular subscriptions in +the United States. + +"I am glad to notice your success and will give you every facility +that is extended to anyone else. + + "Very respectfully, + "John Sherman, Secretary." + +The sale in London was fully justified when the called bonds matured, +and those held abroad were paid for without the exportation of +coin. It was my desire to secure the exchange of four per cent. +bonds directly with the holders of the six per cents. For this +purpose I invited, by a department order widely circulated, such +an exchange, allowing to the holder of any six per cent. bond, +whether called or uncalled, the same commission and allowance for +interest granted to banks and bankers. By these expedients I hoped +for, and succeeded in conducting, the change of bonds without +disturbing the ordinary current of business. + +The process of refunding the 5-20 six per cent. bonds, by the sale +of four per cent. bonds, went on with some fluctuations until the +4th of April, 1879, when all the six per cent. bonds then redeemable +were called for payment. This period in the magnitude of business +done was far the most active and important while I was Secretary +of the Treasury. The struggle between banks and bankers, not only +in the United States but in London also, gave rise to many questions +which had to be promptly acted upon, chiefly by cable or telegram. +The amount involved were so large as to induce caution and care. +The principal difficulty in refunding arose out of the provision +in the act of Congress that ninety days' notice should be given, +to the holder of bonds, by the government, when it exercised its +option to pay, after five years, any portion of the bonds known as +the 5-20 bonds, payable in twenty years but redeemable after five +years. Prudence required the actual sale of four per cent. bonds +before a call could be made or notice given to the holders of the +5-20 bonds, designated by description and numbers, of the intention +of the government to pay them. When sales were made the money +received was deposited in the treasury of the United States, or +with national banks acting as public depositaries, which were +required to give security for such deposits. + +The necessary effort of the deposit of large amount involved in +refunding operations was to create a stringency in the money market. +I early called the attention of Congress to this difficulty, but +had doubts whether the government would be justified in repealing +the law requiring ninety days' notice. This provision was a part +of the contract between the government and the bondholder, and +could only be changed by the consent of both parties. Congress +failed to act upon my suggestion. The interest accruing for ninety +days at six per cent., or one and a half per cent. on the great +sums involved, was a loss to the government but a gain to the banks +or bankers that sold the bonds. The syndicate of bankers engaged +in the sale of bonds chose the First National Bank of New York as +their depositary. The department was indifferent where the deposits +were made so that they were amply secured. Other banks and bankers +engaged in the sale of bonds chose their own depositaries, and thus +an active competition was created in which the department took no +part or interest. + +This struggle led to charges of favoritism on the part of the +department, but they were without the slightest foundation. Every +order, ruling and letter was fully discussed and considered by the +Secretary and other chief officers of the treasury, and also by +General Hillhouse, assistant treasurer at New York, and is in the +printed report of the letters, contracts, circulars and accounts +relating to resumption and refunding made to Congress on the 2nd +of December, 1879. + +The charge was especially made that favor was shown the First +National Bank of New York, of which George F. Baker was president +and H. C. Fahnestock was vice president. It was said that I was +a stockholder in that bank, and that I was interested in the +syndicate. It is scarcely necessary for me to say, as I do, that +these charges and imputations were absolutely false. This bank +and the associated bankers sold larger amounts of four per cent. +bonds than any others and received a corresponding commission, but, +instead of being favored, they were constantly complaining of the +severity of the treasury restrictions. Rothschild, the head of +the great banking house in London and the chief of the syndicate, +especially complained of what he called the "stinginess" of the +treasury department. I can say for all the officers of the treasury +that not one of them was interested in transactions growing out of +resumption or refunding, or did or could derive any benefit +therefrom. + +The rapid payment of the 5-20 bonds had a more serious effect upon +the English market than upon our own. Here the four per cent. +bonds were received in place of the six per cent. bonds, no doubt +with regret by the holders of the latter for the loss of one-third +of their interest, but accompanied by a sense of national pride +that our credit was so good. In London the process of refunding +was regarded with disfavor and in some cases by denunciation. On +the 4th of March Secretary Evarts wrote me the following letter: + + "Department of State, } + "Washington, March 4, 1870.} +"Hon. John Sherman, Secretary of the Treasury. + +"Sir:--I have the honor to transmit herewith, for your information, +a copy of a dispatch No. 928, dated February 12, from the consul +general at London, in which the department is advised that there +exists dissatisfaction, among certain holders of the 5-20 bonds of +the issue of 1867, with the rapidity with which the government is +refunding its debt at a lower rate of interest, and that it is the +purpose of such holders to demand payment of their called bonds in +coin. I have to honor to be, sir, your obedient servant. + + "Wm. M. Evarts." + +This demand was easily met by the sale of four per cent. bonds in +London, and the balance of trade in our favor was increasing. The +anticipated movement of gold did not occur. + +Congress, by the act approved January 25, 1879, extended the process +of refunding to the 10-40 bonds bearing interest at the rate of +five per cent., amounting to $195,000,000 as follows: + +"AN ACT TO FACILITATE THE REFUNDING THE NATIONAL DEBT. + +"_Be it enacted by the Senate and House of Representatives of the +United States of America in Congress assembled_, That the Secretary +of the Treasury is hereby authorized, in the process of refunding +the national debt under existing laws, to exchange directly at par +the bonds of the United States bearing interest at four per centum +per annum, authorized by law, for the bonds of the United States +commonly known as 5-20's, outstanding and uncalled, and, whenever +all such 5-20 bonds shall have been redeemed, the provisions of +this section, and all existing provisions of law authorizing the +refunding of the national debt, shall apply to any bonds of the +United States bearing interest at five per centum per annum or a +higher rate, which may be redeemable. In any exchange made under +the provisions of this section interest may be allowed, on the +bonds redeemed, for a period of three months." + +On the 26th of February the following act was passed: + +"AN ACT TO AUTHORIZE THE ISSUE OF CERTIFICATES OF DEPOSIT IN AID + OF THE REFUNDING OF THE PUBLIC DEBT. + +"_Be it enacted by the Senate and House of Representatives of the +United States of America in Congress assembled_, That the Secretary +of the Treasury is hereby authorized and directed to issue, in +exchange for lawful money of the United States that may be presented +for such exchange, certificates of deposit, of the denominations +of ten dollars, bearing interest at the rate of four per centum +per annum, and convertible at any time, with accrued interest, into +the four per centum bonds described in the refunding act; and the +money so received shall be applied only to the payment of the bonds +bearing interest at a rate of not less than five per centum in the +mode prescribed by said act, and he is authorized to prescribe +suitable rules and regulations in conformity with this act." + +On the 4th of March, 1879, the amount of uncalled 5-20 six per +cent. bonds outstanding was $88,079,800. Anticipating that sales +of four per cent. bonds would continue, I gave the following notice: + +"Notice is given that when the 5-20 six per cent. bonds of the +United States are covered by subscriptions to the four per cent. +consols, the latter will be withdrawn from sale upon the terms +proposed by department circular of January 1, 1879, and upon the +terms stated in the contract with the Messrs. Rothschild and others, +of the date of January 21, 1879. The amount of 5-20 six per cent. +bonds outstanding and embraced in calls to this date is $88,079,800. +When this sum is covered by subscriptions under the existing circular +and contract, all further sales of four per cent. consols, to +provide for the refunding of the 10-40 five per cent. bonds, will +be made upon terms which will probably be less favorable to the +purchaser, and in accordance with new proposals and contracts. +This notice is given so that all parties wishing to subscribe for +consols upon the terms stated in the circular and contract may have +an opportunity to do so until the 5-20 bonds are called." + +In giving this notice I had in view a change in the mode of refunding +which would save to the government the whole or large part of the +three months' interest pending the call. This notice gave an +additional spur to the market for four per cent. bonds. Copies of +it were sent to Mr. Conant and to all parties interested in pending +operations, and due notice was given to all persons and corporations +engaged in the sale of bonds that all existing contracts would +terminate when the 5-20 bonds were covered by subscriptions. + +At this time there was a good deal of anxiety as to the effect of +the large sale of four per cent. bonds. If these could be exchanged, +par for par for six per cent. bonds, the operation would be easy, +but many holders of called bonds would not accept the lower rate +of interest and invested the principal of their bonds in other +securities. General Hillhouse, on the 8th of March, expressed the +common feeling as follows: + +"There is a good deal of speculation in the papers, as well as in +business circles, as to the probable effect on the money market of +the settlements to be made in April, during which month, if I am +not mistaken, about $150,000,000 of calls will mature. It is now +seen, however, that investment demand for the fours is much larger +than was anticipated by many; and the subscribing banks will be, +therefore, likely to find themselves loaded with large amounts which +they cannot dispose of. It would not be strange, in the closing +of such vast transactions, if there should be some stringency, but +with the favorable indications, that the public are taking the +bonds freely, and with the power of the secretary in various ways +to facilitate the settlements, it can hardly be more than +temporary." + +Mr. Conant wrote me, on March 8, from London: + +"I have called on all the members of the syndicate several times +within the past few days, and have urged them very strongly to push +the sales of the bonds here. I have persistently tried to persuade +them that they ought to conduct the business with far more energy, +and I have said to them that, at the time the contract was entered +into, representations were made to you that $50,000,000 of the four +per cent. consols could be disposed of on this side of the Atlantic, +and that as they had undertaken the business they should not +disappoint you. I have represented to them the importance of +preventing the shipments of gold from New York, and that you supposed +that the sales of bonds which you expected they would make would +prevent such shipments. . . . + +"The feeling which I alluded to in my last letter, that when the +time arrives for the settlement of the large subscriptions made in +New York and elsewhere at home the market will be found overloaded, +and that a fall in price will take place, still exists here, and +has the effect of causing certain classes of investors to delay +making purchases, which they will ultimately make. I have not +hesitated to say to the associates here that when refunding operations +shall have been completed the four per cent. consols will soon +thereafter go to a premium, and good reasons can be given why such +should be the case." + +Soon after I commenced receiving prophecies of stringency and +disaster. A long letter from Fisk & Hatch, of New York, said that +general apprehension had been growing up in financial circles, and +was rapidly gaining ground, that the settlements by the national +banks with the treasury department, in April and May, for the large +subscriptions of four per cent. bonds made in January and February, +would occasion serious disturbance and embarrassment in the money +market. They advised me to pursue a course that, whether proper +or not, was not in accordance with law. Mr. L. P. Morton., on the +same date, took a milder view of it, but still suggested a remedy +not within my power. + +On the 13th, General Hillhouse, in referring to the apprehensions +of my correspondents in regard to the settlements in connection +with refunding, said that they might be caused in some instances +by the suspicion, if not by the conviction, that their subscriptions +had been carried beyond the point of absolute safety, "and now that +settlement day is approaching they are naturally desirous of +ascertaining how far they can count on the forbearance of the +government." + +This was the same view I had taken of the matter. I did not feel +myself officially bound to do anything but to require prompt payment +for the bonds subscribed. The treasury, however, was well prepared +for any probable stringency, and I was convinced that the settlements +would not cause any serious disturbance. The advices from London +continued to be unfavorable. The bonds were offered in the market +in some cases at a less price than the syndicate were to pay for +them. + +In the process of selling the four per cent. bonds I had frequently +been written to by persons of limited means, who wished to invest +their savings in government bonds of small denominations bearing +four per cent. interest. I called the attention of the proper +committee of each House to the expediency of issuing notes or +certificates of that description, and the act of February 26, 1879, +already quoted, was passed. + +On the 26th of March I issued a circular relative to these +certificates, prescribing the manner in which they should be sold, +and stated the purpose and probable effect of their issue, as +follows: + +"The primary purpose of these certificates is to enable persons of +limited means to husband small savings as they accrue, and place +them where they will draw interest and become the nest egg for +future accumulation. The form of certificate seems better adapted +for the purpose than the French _ventes_ or the English savings +bank system. The objection to a national savings bank is that, in +a country so extensive as ours, the agencies would necessarily be +scattered, and the cost and delay of correspondence and transferring +money to Washington would be considerable; but, more than all, the +United States cannot undertake the risk of repaying deposits at +any time when called for. The necessary reserve for that purpose +would make the system burdensome. The certificate, as issued, may, +at the expense of the subscriber, be either to bearer, or, by being +registered, only transferable by assignment on the books of the +treasury. It combines, in the cheapest form, all the benefits of +any system of savings banks that has been devised. No doubt these +certificates, when first issued, will, by voluntary consent of +parties, be used as currency; but, after they shall have run a +short time, the accruing interest on them will induce their sorting +and holding, and thus, like the compound-interest notes, they will +cease to be a currency and become an investment. Their possible +use as currency is certainly no objection to them; for, though I +adhere as strictly as anyone to a specie standard of value, I think +that, it being constantly maintained by ample reserves and prompt +redemption, current money in different forms should be provided +for daily use. Diversity of the currency, if it is always redeemable, +is no objection. These certificates will always be redeemable in +the bonds stipulated for, and can, with profit, be issued, while +the money received for them can be used in redeeming bonds bearing +a higher rate of interest. They are of as low a denomination as +can be conveniently issued and bear interest. The issue of this +certificate is a safe experiment. I have confidence that it will +be beneficial to the holder, in begetting habits of saving, and to +the treasury, in aiding refunding; but its great benefit will be +that the people themselves will in this way have a direct interest +in preserving and maintaining the public faith." + +On the same date I wrote a note for publication to the treasurer +of the United States, to facilitate the payment of called bonds, +as follows: + +"As it is desirable to make payment of called bonds in the mode +that will least disturb the market, you will draw from the depositary +banks the proceeds of four per cent. bonds only when required to +make payment of called bonds, and in proportion from the several +depositaries to the amounts held by them, as near as may be, in +sums of $1,000. Money in the treasury received from four per cent. +bonds should be applied to the payment of called bonds before such +drafts are made. + +"When practicable, drafts upon depositary banks, for transfers of +deposits on account of proceeds of four per cent. bonds, may be so +drawn as to be payable at the option of the bank, through the New +York clearing house. + +"Drafts on depositary banks in cities other than New York should +be drawn a sufficient time in advance to meet payments there. + +"Payment by called bonds should be treated as payment in money as +of the date when it would, under this order, be required." + +On the 27th I received from Conant the following cablegram: + +"Would be pleased to know if subscriptions to be settled during +April can be expected without disturbing market in New York." + +I answered on the same day as follows: + +"Entirely confident subscriptions during next month will be settled +without disturbing market. Order of the treasury department +yesterday will facilitate greatly." + +The following correspondence with Conant, the syndicate and myself +then took place: + + "London, March 28, 1879. +"Sherman, Washington. + +"Rothschild & Sons request me to say they do not consider contract +of January 21, 1879, requires subscription two million to be made +April 1. On account of market price below par at present time they +desire delay subscription few days. Hope you will consent. + + "Conant." + + + "Treasury Department, March 28, 1879. +"Conant, London. + +"I think contract of January 21, 1879, very plain, subscription +should be made April 1, but, if they desire, time will be extended +to April 8. + + "Sherman." + + + "Treasury Department, March 28, 1879. +"August Belmont & Co., New York. + +"Gentlemen:--In confirmation of my two telegrams of to-day to you, +copies of which are inclosed, I have to inform you that the proper +legal officers of the department, as well as myself, consider it +very clear that, under the contract of January 21, your option to +make the second subscription expires on the 1st of April, but I am +not at all desirous of raising the question, and therefore am +willing to extend the time a week, within which I am quite confident +the anxiety about the April payments will begin to subside. Thus +far this week, over $17,000,000 called bonds have been redeemed by +credit on subscriptions, and $450,000 only paid by draft. Called +bonds are rapidly coming in for credit. The subscriptions in excess +of bonds called now amount to $6,600,000. With an assurance of a +subscription of $2,000,000 from you, by the 1st, or even the 8th, +of April, I would immediately issue a call for $10,000,000, and +may do so without waiting for your subscription. + +"I would prefer that the parties to the contract should not avail +themselves of the extension offered, but leave that entirely to +your good judgment. + + "Very respectfully, + "John Sherman, Secretary." + + + (Telegram.) + "Treasury Department, March 28, 1879. +"August Belmont & Co., New York. + +"The contract is very plain that the first subscription should be +made by April 1. The stipulation for five million each month would +have made the second subscription in February or March, but, by +the agreement, it need not be made before April 1. + + "John Sherman, Secretary." + + + "New York, March 28, 1879. +"Hon. John Sherman, Secretary of the Treasury, Washington, D. C. + +"Dear Sir:--We received this morning a telegram from Messrs. +Rothschild about the next subscription under the contract of the +21st of January, and telegraphed its contents to you, as follows: + +'London associates telegraph consider according contract have all +month April to make next subscription. Please telegraph whether +you agree they are right' + +"In reply we received your telegrams reading: + +'The contract is very plain that the next subscription should be +made by April 1. The stipulation for five million each month would +have made the second subscription in February or March, but by +agreement it need not be made before April 1.' + +"and-- + +'Have cabled Conant to extend option, if desired, to April 8.' + +"contents of which we have communicated to our London friends. + + "Yours, very respectfully, + "_Pro_ August Belmont & Co. + "W. Suttgen. + "W. Beuter." + + +The explanation of these cablegrams is given in the following +letter: + + "New Court, St. Swithin's Lane, } + "London, E. C., England, March 29, 1879.} +"Dear Mr. Secretary:--On the 27th instant I had the honor to make +an inquiry of you by cable dispatch, as follows: 'Would be pleased +to know if subscriptions to be settled during April can be effected +without disturbing market in New York.' The constant decline in +the price of all descriptions of our bonds in New York, the strenuous +efforts being made by certain parties to sell American bonds here +at low rates on home account, particularly the four and four and +a half per cent. stock, the advancing rates of interest, and the +condition of the exchanges, together with the rumors concerning +scarcity of money in New Orleans and elsewhere, gave rise to +apprehension, in the minds of many, that refunding operations had +been carried to too great an extent; that too many bonds had been +subscribed for on speculative account, and that any forced settlement +of the subscriptions falling due in April would produce a panic. +Private telegrams sent here conveyed information to the effect that +arrangements would be made between yourself and the banks, by which +the deposits in them would not be drawn upon until absolutely +necessary. The answer, however, which I received from you a few +hours later was highly gratifying and reassuring, and I gave it as +much publicity as possible without, of course, publishing it. It +reads as follows: 'Entirely confident subscriptions during the +next month will be settled without disturbing the market. Order +treasury department yesterday will facilitate greatly.' + +"The question of obligation to make a subscription on the 1st day +of April to continue the contract has been under consideration by +the syndicate during the past week, and in fact ever since the +beginning of the decline in the price of the four per cent. stock. +The associates claim that they are only required to take five +millions of the bonds during the month of April, and that having +already taken three-fifths of the amount in advance, they should, +in view of the impossibility of disposing of the stock at present +prices, be allowed the balance of the month in which to subscribe +for the remaining two millions. They argue that it cannot be +expected that they can afford to take the bonds and pay the government +one and a half per cent. above the market prices, and they add that +they do not think you would wish to have them do so. They also +say that if they wanted the bonds for _speculative purposes only_ +they should give up the contract and purchase in the open market; +but their policy is to keep the price at par and not to buy or sell +when it is below par. Bonds will sell more rapidly when they are +at par than when below it. It is the speculators and not the +investors, as a rule, who deal in stocks when they are cheap. If +the price of the bonds had remained at par, I have no doubt but +that all the bonds I have here would already have been disposed +of, and that the parties would have been ready and willing to make +the subscription for five millions on April 1. + +"The Messrs. Rothschild say that, owing to the high price which +they were compelled to pay for called bonds, and the reduced price +at which they were compelled to part with a portion of the four +per cent. bonds, they have made a slight loss on their transactions +so far. They like to have business relations and connections with +governments, and I think that that disposition on their part is +paramount to the question of profits. The matter of the subscription +was discussed again yesterday, and deferred until Monday for further +consideration, and I was asked to send the following cable message +to you: + +'Rothschild & Sons request me to say they do not consider contract +of January 21, 1879, requires subscription $2,000,000 to be made +April 1. On account of market price below par at the present time, +they desire delay subscription a few days. Hope you will consent.' + +"I hoped you would consent, because I think it quite important, +for many reasons, that we should dispose of bonds on this side of +the water. They take the place of actual gold in settling exchanges, +and thereby prevent the disturbances in the money market which +always result from the moving of bullion. I have no doubt but that +the use of these bonds in this manner has stimulated purchases of +grain and produce from us which would never have left our shores +if payment for the same could only have been made in bullion. I +received this morning your cable message in answer to the one I +sent yesterday, as follows: + +'I think contract of January 21, 1879, very plain. Subscriptions +should be made April 1; but, if they desire, time will be extended +to April 8.' + +* * * * * + + "With great respect, I remain, yours truly, + "Chas. F. Conant. +"Hon. John Sherman." + +I have set out in full this correspondence with Rothschild and his +associates and with Conant, to show that on the eve of complete +success they were discouraged and asked for a postponement of, to +them, the small subscription of $1,000,000, and did not even think +of taking the option of $10,000,000 of bonds subsequently claimed. + +With the 1st of April all stringency disappeared. Accounts were +settled without difficulty. The amount of four per cent. consols +sold to March 31, inclusive, was $473,443,400. + +On the 4th of April, while attending a meeting of the cabinet, I +was handed the following telegram: + + "New York, April 4, 1879. +"Hon. John Sherman, Secretary of the Treasury, Washington, D. C. + +"National Bank of Commerce in New York subscribes for forty million +dollars four per cent. bonds. Particulars and certificates by mail. + + "Henry F. Vail, President." + +I thought the amount was a mistake, that four instead of forty was +meant. I replied as follows: + +"Henry F. Vail, President National Bank of Commerce, New York. + "Before making call I prefer you repeat your subscription." + +A few moments after sending this telegram I received the following +from Mr. Vail: + +"I sent you telegram to-day, which from its importance I beg you +will telegraph me acknowledgment of its receipt." + +I replied: + +"Your telegram is received, and I have asked repetition of it before +making call." + +The following telegraphic correspondence then occurred: + +"Hon. John Sherman. + +"Please enter to-day for us a subscription for ten million dollars +four per cents. making, however, no announcement until we see you +to-morrow. + + "G. F. Baker, President First National Bank, New York. + + +"Hon. John Sherman. + +"We have taken two million subscriptions to-day thus far, and more +to follow. + + "E. D. Randolph, + "President Continental National Bank, New York." + + + "New York, April 4, 1879. +"Hon. John Sherman. + +"Your two telegrams received. I hereby confirm my telegram of to- +day, subscribing, in name of National Bank of Commerce in New York, +for forty million dollars four per cent. bonds. + + "Henry F. Vail, President." + + +"Henry F. Vail, President National Bank of Commerce, New York. + +"Your subscription for forty million four per cent. bonds, having +been repeated by telegram, is accepted. A call will issue to-day +for the balance of the sixty-sevens and to-morrow a call will issue +for the whole of the sixty-eights. + + "John Sherman, Secretary." + + +"E. D. Randolph, President, etc., New York. + +"Your two million subscription received and accepted, but can accept +no more. All 5-20's are covered. + + "John Sherman, Secretary." + + + "New York, April 4, 18979. +"Hon. John Sherman. + +"We subscribe for three millions more, making five in all. + + "F. Taylor, Cashier Continental National Bank." + + + "Treasury Department, April 4, 1879. +"F. Taylor, Cashier Continental National Bank, New York. + +"Your subscription for three millions arrived too late; all the 5- +20's have been covered by previous subscriptions. + + "John Sherman, Secretary." + + +A similar telegram was sent to the Continental National Bank of +New York, which subscribed $25,000,000 additional, the Hanover +National Bank of New York, $25,000,000, and the New York National +Banking Association, $2,000,000. + +I then telegraphed to Mr. Conant as follows: + +"Subscriptions have been made covering all 5-20 bonds (consols of +1867 and consols of 1868) outstanding, reserving for contracting +parties the one million not subscribed for. + +"Inform the contracting parties and accept no new subscriptions." + +On the 4th of April, 1879, I had the satisfaction of issuing the +95th and 96th calls for 5-20 bonds, covering all the bonds outstanding +issued under the act of March 3, 1865, and the last of the United +States 5-20 bonds. The early twenty year bonds, issued during the +first two years of the Civil War, were not yet due or redeemable, +and, therefore, could not be called for payment. This was a +practical illustration of the importance, in issuing government +securities, of reserving the right to redeem them before maturity. + +The rapid and irregular subscriptions made on the 4th of April +involved the department in serious difficulty in determining who +of the many subscribers were entitled to the bonds. The aggregate +of subscriptions was more than double the amount of 5-20 bonds +outstanding. By adopting a rule of accepting bids made before a +fixed hour of that day, and by voluntary arrangements among the +bidders, a distribution was made. + +The only serious controversy in respect to this distribution was +upon the claim of the Rothschilds that they had option extending +to the 30th of June for ten millions of bonds, and for one million +extended from April 1 to April 8. The latter was allowed, but the +department held that the option for ten millions June 30 was +dependent upon whether the bonds were previously sold, and this +occurred on the 4th of April. This gave rise to a controversy +which was settled by the voluntary transfer, by the National Bank +of Commerce, of ten millions of the forty millions bonds subscribed +for by it. Rothschild, the head of the house, would not accept +this offer, but, with some show of resentment, declined to receive +his share of the bonds, but they were eagerly taken by his +associates. + +The 5-20 bonds having been paid off or called, the department +proceeded, as soon as practicable, to execute the laws of January +25 "to facilitate the refunding of the national debt," and February +26 "to authorize the issue of certificates of deposit in aid of +the refunding of the public debt." + +On the 16th of April I published the offer of $150,000,000 four +per cent. bonds at one-half of one per cent. above par and accrued +interest, and reserved $44,566,300 of these bonds for the conversion +of ten dollar refunding certificates. + +The following telegrams, addressed to the Secretary of the Treasury +on the 17th of April, tell the result: + +From the Bank of New York National Banking Association, New York: + +"Send two millions four per cent. bonds under terms of to-day's +dispatch." + +From Chase National Bank, New York: + +"We have subscribed for half million dollars four per cent. bonds +on terms just issued. Can we deposit our securities at the treasury +here, as heretofore?" + +From First National Bank, New York: + +"Please enter subscription this date for ten million dollars, and +reserve further amount of fifteen millions, awaiting our letter. +Please make no announcement of either to-day, for reasons will +explain." + +From Bank of New York National Banking Association, New York: + +"Send seventy-five certificates ten thousand each, fifty of five +thousand each, four per cents., in name of I. & S. Wormser. Also +four hundred bonds five hundred each, three hundred of one thousand +each; in all, one million five hundred thousand. Certificate +deposit by mail." + +From Baltzer and Lichtenstein, New York: + +"We subscribe to-day through the National Bank of the state for +one million fours." + +From National Bank of the State of New York: + +"We confirm dispatch of Baltzer and Lichtenstein order one million +four per cent. consols, and order, in addition to that and our +previous dispatch, one million more, half each coupon and +registered." + +Bank of New York National Banking Association, New York: + +"We take two million more fours; particulars later." + +From National Bank of the State of New York: + +"Please forward immediately four million United States four per +cent. consols." + +* * * * * + +"Please forward three hundred thousand registered and two hundred +thousand coupons four per cent. consols. Particulars by mail." + +* * * * * + +"Please forward one million four per cent. consols coupons." + +* * * * * + +"Please forward immediately fifteen hundred thousand United States +four per cent. consols additional to all former subscriptions." + +From Bank of New York National Banking Association: + +"Send one hundred and twenty certificates, ten thousand each, in +name of I. & S. Wormser; also eight hundred coupon bonds, one +thousand each, in all, two million fours. Certificate by mail." + +* * * * * + +"We subscribe for four millions fours; this is in addition to all +other telegrams. Certificates by mail." + +From Continental National Bank, New York: + +"We subscribe to-day two million four per cents., name Hatch & +Foote. Particulars by mail." + +From First National Bank, New York: + +"Please enter our subscription under this date for one hundred and +fifty million dollars four per cent. bonds and forty million dollars +refunding certificates, in all, one hundred and ninety million +dollars, under terms of your circulars of April 16 and March 7. +These subscriptions are for this bank and its associates. Will +see you to-morrow morning. This is repetition of dispatch sent to +the department." + +From National Bank, State of New York: + +"Confirming previous dispatches covering subscriptions of seven +million five hundred thousand dollars to four per cent. loan, please +forward additional two millions coupon bonds." + +From Bank of New York National Banking Association: + +"We subscribe for one million four per cents. Certificates of +deposit by mail to-morrow." + +From National Bank, State of New York: + +"Please forward immediately one million more United States four +per cent. consols, making a total, together with former subscriptions, +of ten million five hundred thousand." + +I sent the following telegram to the First National Bank of New +York: + +"Your telegram covering one hundred and ninety million consols +staggers me. Your telegram for twenty-five million received, and +entered at two o'clock. About thirty million from other parties +were received and entered before your last telegram. Will wait +till letters received. What is the matter? Are you all crazy?" + +On the 18th the bids were carefully analyzed and accepted in the +order in which they were received. The bid of the First National +Bank was made on the behalf of an association of banks and bankers. +I declined their offer for refunding certificates and accepted +their offer for $111,000,000. + +I wrote to Conant, April 18, as follows: + +"Since I wrote you the letters yesterday respecting the recent +circular of April 16, I have sold the whole of the $150,000,000 of +bonds offered therein; $39,000,000 were sold to sundry banks in +the city of New York, and the residue, $111,000,000, were sold to +an association of banks and bankers through First National Bank. +This unexpected and agreeable _denouement_ of our refunding operations +will supersede much that I have written you. I received and answered +your telegram of to-day. Arrangements will be made with the new +associates for delivery of four per cent. consols and the receipt +of called bonds in London. + +"Although I have given notice that I will feel at liberty to do so +after the 4th of May, I prefer that you will postpone any new +arrangement for delivery to other parties until the 10th; hoping +that before that time Messrs. J. S. Morgan & Co. will be able to +close out the balance of their last subscription." + +On the same day I made a call for $160,000,000 10-40 bonds, being +all of such bonds outstanding, except an amount that would be +covered by the proceeds of ten dollar refunding certificates. The +sale of these certificates gave the department a great deal of +trouble. The object and purpose of the law was to secure to persons +of limited means an opportunity to purchase, at par, certificates +of indebtedness bearing four per cent. interest. As they could be +converted at pleasure into 10-40 bonds of small denominations, it +was thought they would be promptly taken by the persons for whom +they were designed. They were sold in limited amounts to individuals +at post offices, but as they were, when converted into bonds, worth +a premium, bankers and others hired men to stand in line and purchase +certificates. This was a practical fraud on the law, and was mainly +conducted in the cities, and where done the sale was discontinued. +The great body of the certificates were taken by the class of +persons for whom they were designed. In a brief period they were +sold, and the proceeds were in the treasury. + +On the 21st of April I made the final call for all outstanding 10- +40 bonds. With this call the refunding operations were practically +at an end for the time. A good deal of correspondence was had as +to priority of bids and sales of refunding certificates, but this +was closed, at the end of ninety days, by the full payment of the +called bonds, and the substitution of bonds bearing a lower rate +of interest. This was accomplished without the loss of a dollar, +or, so far as I can recall, without a lawsuit. + +The aggregate amount of bonds refunded from March 4, 1877, to July +21, 1879, was $845,345,950. + +The annual interest saved by this operation was $14,290,416.50. + +The general approval and appreciation of these results was manifested +by the public press, and especially in Europe. Mr. Conant, in a +letter dated April 19, said: + +"On yesterday morning, at the stock exchange, just after the opening +hour, a McLean's cable dispatch was posted up, stating that you +had entered into a contract with a syndicate for the sale of +$150,000,000 of four per cent. bonds, against the outstanding 10- +40 five per cent. bonds. People were astounded at the information, +and they were all the more astonished because the operation followed +so closely upon the transaction of the 4th instant. The effect of +this has been to send the price of the bonds up by three-fourths +per cent., and to create a demand for them." + +From the date of these transactions the bonds of the United States +rapidly advanced in value. Many similar transactions of my successors +in office have been made at a still lower rate of interest. + +Among the agreeable incidents connected with the resumption of +specie payments was the adoption of resolutions by the Chamber of +Commerce of New York, on the 2nd of July, 1879. The second resolution +was as follows: + +"_Resolved_, That this Chamber tenders its congratulations to the +Honorable the Secretary of the Treasury, at once the framer and +executor of the law of 1875, upon the success which has attended +his administration of the national finances; as well in the funding +of the public debt, as in the measures he has pursued to restore +a sound currency." + +I subsequently received, by the hands of William E. Dodge, late +president of the Chamber of Commerce of New York, a letter from +that body asking me to sit for my portrait to be placed on the +walls of their Chamber. On the 24th of February I sent the following +reply: + +"Gentlemen:--I have the honor to acknowledge the receipt, by the +hands of Wm. E. Dodge, late president of the Chamber of Commerce +of New York, of your letter of the 17th instant, covering a resolution +of your body, asking me to sit for my portrait to be placed upon +the walls of your Chamber. + +"The kinds words of Mr. Dodge in delivering the resolution add +greatly to the compliment contained therein. I assure you that I +deeply appreciate the honor of being designated in this manner, by +a body so distinguished as the one you represent, composed of +members having so large an influence in the commercial transactions, +not only of our country, but of other nations, whose familiarity +with financial and commercial subjects gives to its opinions great +respect and authority. + +"The resumption of specie payments has been brought about by the +co-operation, not only of many Senators and Members of Congress, +but of the leading merchants, bankers and other business men of +the country. It was my good fortune to be selected, by my colleagues +in the Senate, to present the resumption act, which was framed with +their aid and in their councils, and to hold my present office at +the time when, by its terms, the law was to be enforced. The only +merit I can claim is the honest and earnest effort, with others, +to secure the adoption of the policy of resumption, and to have +executed the law according to its letter and spirit. I feel that +I cannot accept this high compliment, without acknowledging that +I am but one of the many who have contributed to the accomplishment +of this beneficent object. + +"I will, with great pleasure, give every facility to any artist +whom you may select to carry your resolution into effect. + +"Expressing to you, and the gentlemen you represent, my appreciation +of a compliment so highly prized, I have the honor to be, + + "Very respectfully, your obedient servant, + "John Sherman. +"Messrs. A. A. Lone, James M. Brown, Sam'l D. Babcock, Wm. E. Dodge, + Henry F. Spaulding, _Committee of the Chamber of Commerce, New + York_." + +Subsequently, in compliance with this request, I gave to Mr. +Huntington, an eminent artist selected by that body, a number of +sittings, and the result was a portrait of great merit, which was +placed in the Chamber of Commerce with that of Alexander Hamilton. +I regarded this as a high compliment from so distinguished a body +of merchants, but I do not indulge in the vanity of a comparison +with Hamilton. + + +CHAPTER XXXVIII. +GENERAL DESIRE TO NOMINATE ME FOR GOVERNOR OF OHIO. +Death of My Brother Charles--The 46th Congress Convened in Special +Session--"Mending Fences" at My Home in Mansfield--Efforts to Put +Me Forward as a Candidate for the Governorship of Ohio--Letter to +Murat Halstead on the Question of the Presidency, etc.--Result of +My Letter to John B. Haskin--Reasons of My Refusal of the Nomination +for Governor--Invitation from James G. Blaine to Speak in Maine-- +My Speech at Portland--Victory of the Republican Party--My Speech +at Steubenville, Ohio--Evidences of Prosperity on Every Hand--Visit +to Cincinnati and Return to Washington--Results in Ohio. + +On the morning of January 1, 1879, I received intelligence of the +sudden death of my eldest brother, Charles T. Sherman, at his +residence in Cleveland. In company with General Miles and Senator +Cameron, his sons-in-law, and General Sherman, I went to Cleveland +to attend the funeral. My respect and affection for him has already +been stated. As the eldest member of our family he contributed +more than any other to the happiness of his mother and the success +of his brothers and sisters. He aided and assisted me in every +period of my life, and with uniform kindness did all he could to +advance my interests and add to my comfort and happiness. As +district judge of the United States, for the northern district of +Ohio, he was faithful and just. When, after twelve years service, +he was reproached for aiding in securing the reversal of an order +of the Commissioner of Internal Revenue in collecting an unlawful +and unjust tax in the city of New York, as he had a perfect right +to do, he resigned his position rather than engage in a controversy. +He was unduly sensitive of all accusations or innuendoes touching +his honor. He was honest and faithful to every engagement, and +had a larger personal following of intimate friends and associates +than either of his brothers. + +On the 4th of March, 1879, President Hayes convened the 46th Congress +in special session to meet on the 18th of that month, to provide +necessary appropriations for the legislative, executive and judicial +expenses of the government, and also for the support of the army, +the 45th Congress having failed to pass bills for these objects on +account of a disagreement of the two Houses as to certain provisions +relating to the election laws. This session continued until July +1, and was chiefly occupied in political topics, such as reconstruction +and elections. The Democratic party, for the first time in twenty +years, had control of both Houses, but it neither adopted nor +proposed any important financial legislation at that session, the +only law passed in respect to coin, currency or bonds which I recall +being one to provide for the exchange of subsidiary coins for lawful +money, and making such coins a legal tender in all sums not exceeding +ten dollars. Congress seemed to be content with the operations of +the treasury department at that time, and certainly made no obstacle +to their success. + +About the 1st of May, Mrs. Sherman, accompanied by our adopted +daughter, Mary Sherman, then a young schoolgirl twelve years old, +and Miss Florence Hoyt, of New York, Miss Jennie Dennison, of +Columbus, and Miss Julia Parsons, of Cleveland, three bright and +accomplished young ladies, embarked on the steamer Adriatic for a +visit to Europe. Mrs. Sherman placed Mary in a very good school +at Neuchâtel, Switzerland, and then with her companions visited +the leading cities of Europe. + +After accompanying the party to New York I went to Mansfield, and +as my family was absent and the homestead occupied by comparative +strangers, I stopped at the St. James hotel where, as was natural, +I met a great many of my old neighbors and friends, both Democrats +and Republicans, who welcomed me home. + +Among my visitors were several reporters from different parts of +the country who wanted to interview me and especially to learn if +I was a candidate for governor, and why I came home. In the +afternoon I visited my farm near by and my homestead of about twenty +acres adjoining the city. I found them in the usual neglected +condition of the property of a non-resident proprietor, with many +of the fences down. In the evening I was serenaded at the hotel +and made a brief speech to a large audience, commencing as follows: + +"I am very happy to be again in your midst, to see your faces and +to greet you as friends. The shaking of your hands is more grateful +to me than the music of bands or any parade. I never felt like +making an explanation in coming before you until now. I found when +I arrived in my old home that the papers said I came west seeking +the nomination for governor. I came purely on private business-- +to repair my fences and look after neglected property." + +The reporters seized upon the reference to my fences, and construed +it as having a political significance. The phrase "mending fences" +became a byword, and every politician engaged in strengthening his +position is still said to be "mending his fences." + +Previous to that time mention had been made of me in different +parts of the country, not only for the nomination of Governor of +Ohio, but for President of the United States. Charles Foster and +Alphonso Taft were then spoken of as the leading candidates for +nomination as governor. Both were my personal friends and eminently +qualified to perform the duties of the office. Although I regarded +the position of governor as dignified and important, well worthy +the ambition of any citizen, still there were reasons which would +prevent my accepting the nomination if it should be tendered me. +I felt that to abandon my duties in the treasury department might +be fairly construed as an evasion of a grave responsibility and an +important public duty. I knew that President Hayes was very anxious +that I should remain in the office of secretary until the close of +his term. I did not desire to compete with the gentlemen already +named, and did all I could to discourage the movement short of +absolute refusal to accept the nomination. The newspapers of the +day, not only in Ohio but in other states, were full of favorable +comments upon my probable nomination for governor, and my correspondence +upon the subject was very large. I have no doubt that had I +consented to be a candidate both Foster and Taft would have acquiesced +in my nomination and I, in all human probability, would have been +duly elected as Foster was. + +As for the nomination for the presidency I made no movement or +effort to bring it about, but then believed that General Grant +would, upon his return from his tour around the world, be nominated +and elected. The following letter will explain fully my position +in regard to the office of both governor and president: + + "Washington, D. C., May 15, 1879. +"My Dear Sir:--I notice, with heartfelt thanks for your personal +kindness in the matter, the course of the 'Commercial' in regard +to my proposed candidacy for Governor of Ohio, and this induces me +to state to you frankly and fully, in confidence, the reasons why +I could not accept the nomination if tendered, and why I hope you +will give such a turn to the matter as will save me the embarrassment +of declining. + +"In ordinary circumstance an election as Governor of Ohio, after +my life in the Senate, would be extremely flattering and agreeable; +but at present, for several reasons, the least of which are personal, +I could not accept it. + +"My wife has gone to Europe on a visit of recreation greatly needed +by her, my house in Mansfield is rented, and all my arrangements +are made to be here during the summer. The nomination would require +me to recall her, to resume my house, and to break up my plans for +the summer. If this alone stood in the way, I could easily overcome +it, but I know from letters received that my resignation as secretary +would be regarded as a desertion of a public trust important to +the whole country, with the selfish view of promoting my personal +ambition, not for the governorship merely but for the presidency, +which would impair rather than improve any chance I may have in +that direction. + +"The President would regard this change as a great inconvenience +and as defeating a desire he has frequently expressed to maintain +his cabinet intact during his term, so that my obligations to him +forbid this. + +* * * * * + +"All these objections might be met except the one which I think is +unanswerable, that my presence here in the completion of a public +duty is far more important to the whole country and the cause we +advocate than if I were to run as a candidate for Governor of Ohio +and even succeed with a large majority. + +"All things now tend to our success in Ohio and that is likely to +be as complete with any other candidate for governor as myself, +while if left here I will be able to so finish my business that no +one can say it is incomplete. + +"As for the mention of my name for the presidency, I am not so +blind as not to perceive some favorable signs for me, but I have +thus far observed and intend strictly to adhere to the policy of +taking no step in that direction, doing no act to promote that +object, and using none of the influence of my office towards it, +except so far as a strict and close attention to duty here may +help. I am not now, and do not intend to get, infected with the +presidential fever. + + "With high regard, I am, very truly yours, + "John Sherman. +"M. Halstead, Esq., Cincinnati, Ohio." + +During 1879 and the following year I received a multitude of letters +and newspaper paragraphs advocating my nomination for President. +Among the first of such letters was one from an old friend, John +B. Haskin, formerly a Member of Congress from New York. On the +10th of May, 1879, I wrote him in answer a letter, not intended +for publication, but expressing what I would do in the contingency +mentioned by him, as follows: + +"What I would aspire to, in case public opinion should decide to +make me a candidate for President, would be to unite in co-operation +with the Republican party all the national elements of the country +that contributed to or aided in any way in the successful vindication +of national authority during the war. I would do this, not for +the purpose of irritating the south or oppressing them in any way, +but to assert and maintain the supremacy of national authority to +the full extent of all the powers conferred by the constitution. +This, as I understand it, is the Jacksonian as well as the Republican +view of national powers. + +* * * * * + +"You see my general ideas would lead me to lean greatly upon the +war Democrats and soldiers in the service, who have been influenced +by political events since the war to withhold support from the +Republican party. + +"The true issue for 1880 is national supremacy in national matters, +honest money and an honest dollar." + +Mr. Haskin gave, or showed, this letter to a New York paper, and +it was published. I expressed my opinion, but it was not one that +should have been made public without authority. The letter was +the subject of comment and criticism, and was treated as an open +declaration of my candidacy for the office of President. It was +not written with this purpose, as the context clearly shows. This +incident was a caution to me not to answer such letters, unless I +was assured that my replies would be treated as confidential. Yet +I do not see how a man in public life can refuse to answer a friendly +letter, even if his meaning can be perverted. + +During the months of May and June I had a correspondence with John +B. Henderson, of St. Louis, in which he expressed his great interest +in my nomination. This resulted in a conference, which he advised, +with President Hayes. My reply was as follows: + + "Treasury Department, June 23, 1879. +"My Dear Sir:--In compliance with your suggestion, I yesterday +mentioned to the President my embarrassment from the general +discussion of my name as a possible candidate for the Republican +nomination. The points I mentioned were how far I should commit +myself to a candidacy and what I should do to promote it, and second +whether, under certain circumstances, he would not, in spite of +his declination, become a candidate for re-election. He was very +explicit on both points--first that I ought at once to let it be +understood that I was a candidate in the sense stated in the Haskin +letter, and no more--that great care should be taken that while a +candidate, I ought not to take part in any movement of opposition +to others named--especially General Grant. The feeling is growing +daily that General Grant will not allow his name to be used and +that, while his eminent services should be fully recognized and +rewarded, it is neither right nor politic to elect him to the +presidency for the third term. The President very truly said that +any appearance of a personal hostility or opposition to General +Grant, would be inconsistent with my constant support of his +administration during eight years, and would induce a concentration +that would surely defeat me. Upon the second point he was very +explicit--that he would not be a candidate under any circumstances, +and as far as he could properly, without any unseemly interference, +he would favor my election. This was the general tenor of his +conversation, which he said he would repeat to General Schurz. +This relieves me from some embarrassment, but I still think it is +better for us to remain absolutely quiet, awaiting the development +of public opinion or the voluntary action of personal and political +friends. Unless there is a clear preponderance of opinion in +preference for my nomination against all others, I do not want to +enter upon the scramble. As yet I do not see any concentration. +Hoping to see you soon, I remain, + + "Very sincerely yours, + "John Sherman. +"Hon. John B. Henderson." + +After a brief visit to Mansfield I went to Columbus, where I met +with a hearty reception from men of both political parties. The +legislature was in session, and the senators and members, judges +of the courts, and executive officers of the state, called upon me +and gave me cordial greetings. I attended a reception at the house +of Governor Dennison, where I met the leading citizens of Columbus. +On my return to the hotel I was serenaded by a band, and being +introduced by Governor Dennison made a brief speech of a non-partisan +character, and in closing said: + +"I want to make one personal remark about myself. Some of my +newspaper friends here have tried to make me a candidate for Governor +of Ohio, but I hope none of you will vote for me in convention or +before the people. I propose to stick to my present place until +the question of resumption is settled beyond a doubt. I want to +convince everybody that the experiment of resumption is a success; +that we can resume; that the United States is not bound to have +its notes hawked about at a discount, but that a note of the United +States may travel about the world, everywhere received as equal to +gold coin, and as good as any note ever issued by any nation, either +in ancient or modern times. I want to see that our debt shall be +reduced, which will be done through four per cent. bonds. If the +present policy prevails, we shall be able to borrow all the money +needed for national uses for less than four per cent., perhaps as +low as three." + +I returned directly to Washington. Finding that a determined effort +would be made to force my nomination as governor, I wrote the +following letter to prevent it: + + "Treasury Department, } + "Washington, May 15, 1879.} +"My Dear Sir:--In view of the kindly interest manifested by political +friends during my recent visit home, that I should be nominated as +the Republican candidate for Governor of Ohio, I have given the +subject the most careful consideration, and have come to the +conclusion that I cannot, in my present situation, accept such a +nomination if tendered. + +"I am now engaged in a public duty which demands my constant +attention and which can clearly better be completed by me than by +anyone coming freshly into the office. To now accept the nomination +for governor, though it is an honor I would otherwise highly prize +and feel deeply grateful for, would be justly regarded as a +abandonment of a trust important to the whole country, to promote +my personal advancement. I earnestly hope, therefore, that the +convention will not embarrass me by a tender of a nomination which +I would be obliged to decline. + +"It may be that no such purpose will be manifested, but I write +you so that if the convention should so incline, you may at once +state why I cannot accept. + + "Very truly yours, + "John Sherman. +"General J. S. Robinson, Chairman Republican State Committee, + Columbus, Ohio." + +Charles Foster was nominated by the Republican convention in the +latter part of May, and Thomas Ewing by the Democratic convention. +These nominations necessarily made prominent the financial questions +of the time. After the close of the funding operations, I received +from Mr. Blaine, as chairman of the Republican committee of Maine, +the following invitation, which I accepted: + + "Augusta, Me., July 3, 1879. +"Hon. John Sherman, Secy. of Treas. + +"My Dear Sir:--Could you speak at Portland, Tuesday, July 23, and +then during the same week at Augusta and Bangor--say 25th-27th? +Your Portland speech we should expect to have printed the next day, +accurately from your own slips. + +"Your two other speeches, hardly less important to us, might be +made with less care and accuracy, that is, more on the order of +the general stump speech. + +"In your Portland speech I hope, however, you will talk on something +more than the finance, making it, however, the leading and prominent +topic--but giving a heavy hit at the conduct of the Democrats during +the extra session. + + "Sincerely, + "James G. Blaine." + +The election in the State of Maine preceding those of other states, +great interest was taken in it, as the result there would have much +influence in other parts of the country. That state in the previous +year had faltered in support of the Republican party. In that year +there were three candidates in the field for governor, the Republican, +whose name I do not recall, the Democratic, Garcelon, for hard +money, and the Greenback, Smith, under the lead of Solon Chase, an +alleged lunatic in favor of fiat money, the repeal of the resumption +law, and the enactment of an eight-hour law. Smith received about +40,000 votes, Garcelon about 28,000, and the Republican candidate +about 54,000. Many Republicans either did not vote or voted the +Democratic or Greenback ticket. By the constitution of that state +a majority of all the votes cast is required to elect a governor, +and in case of failure the house of representatives of the state +proceeds to ballot for choice. The names are then sent to the +senate for the action of that body. The result was the election +of Garcelon, the Democratic candidate. + +This was due to a strong feeling then prevailing in favor of +irredeemable or fiat money, and to some discontent among Republicans +with the liberal measures adopted by President Hayes to secure +peace and quiet in the south, especially the recognition of Hampton +as Governor of South Carolina and of Nichols as Governor of +Louisiana. + +I thought it important to turn the issues of the campaign to the +financial measures accomplished by the Republican party, and +therefore prepared with some care a speech to be delivered at +Portland, and confined mainly to this subject. This speech was +made on the 23rd of July, 1879. I regard it as the best statement +of the financial question made by me in that canvass. In it I +stated fully the action of the administration in respect to the +resumption of specie payments, and the refunding of the public +debt. The people of Maine had been greatly divided upon these +measures. The Greenback party was opposed to the effort to advance +the United States note to the value of coin which it represented, +but wished to make it depend upon some imaginary value given to it +by law. I said the people of Maine would have to choose between +those who strictly sought to preserve the national faith, and to +maintain the greenback at par with coin, and those who, with utter +disregard of the public faith, wished to restore the old state of +affairs, when the greenback could only be passed at a discount, +and could neither be received for customs duties, nor be paid upon +the public debt. + +The Greenback party had embodied in their platform the following +dogmas: + +"The general government should issue an ample volume of full legal +tender currency to meet the business needs of the country, and to +promptly pay all of its debts." + +"The national banking system should be immediately abolished." + +"We demand the immediate calling-in and payment of all United States +bonds in full legal tender money." + +One of the Members of Congress from the State of Maine, Hon. G. W. +Ladd, was reported to have paid his attention to me, in a speech +in Portland, in the following language: + +"Mr. Sherman has sold one hundred and ninety millions of four per +cent. bonds in one day to bloodsuckers who were choking the country, +and he should be impeached." + +In closing my speech I said: + +"It is to support such dogmas, my Republican friends, that we are +invited to desert the great party to which we belong. It may be +that the Republican party has made in the last twenty years some +mistakes. It may not always have come up to your aspirations. +Sometimes power may have been abused. To err is human; but where +it has erred it has always been on the side of liberty and justice. +It led our country in the great struggle for union and nationality, +which more than all else tended to make it great and powerful. It +has always taken side with the poor and the feeble. It emancipated +a whole race, and has invested them with liberty and all the rights +of citizenship. It never robbed the ballot box. It has never +deprived any class of people, for any cause, of the elective +franchise. It maintains the supremacy of the national government +on all national affairs, while observing and protecting the rights +of the states. It has tried to secure the equality of all citizens +before the law. It opposes all distinctions among men, whether +white or black, native or naturalized. It invites them all to +partake of equal privileges, and secures them an equal chance in +life. It has secured, for the first time in our history, the rights +of a naturalized citizen to protection against claims of military +duty in his native country. It prescribes no religious test. +While it respects religion for its beneficial influence upon civil +society, it recognizes the right of each individual to worship God +according to the dictates of his own conscience, without prejudice +or interference. It supports free common schools as the basis of +republican institutions. It has done more than any party that ever +existed to provide lands for the landless. It devised and enacted +the homestead law, and has constantly extended this policy, so that +all citizens, native and naturalized, may enjoy, without cost, +limited portions of this public land. It protects American labor. +It is in favor of American industry. It seeks to diversity +productions. It has steadily pursued, as an object of national +importance, the development of our commerce on inland waters and +on the high seas. It has protected our flag on every sea; not the +stars and bars, not the flag of a state, but the stars and stripes +of the Union. It seeks to establish in this republic of ours a +great, strong, free government of free men. It would, with frankness +and sincerity, without malice or hate, extend the right hand of +fellowship and fraternity to those who lately were at war with us, +aid them in making fruitful their waste places and in developing +their immense resources, if only they would allow the poor and +ignorant men among them the benefits conferred by the constitution +and the laws. No hand of oppression rests upon them. No bayonet +points to them except in their political imaginings. + +"We would gladly fraternize with them if they would allow us, and +have but one creed--the constitution and laws of our country, to +be executed and enforced by our country, and for the equal benefit +of all our countrymen. If they will not accept this, but will keep +up sectionalism, maintain the solid south upon the basis of the +principles of the Confederate states, we must prepare to stand +together as the loyal north, true to the Union, true to liberty, +and faithful to every national obligation. I appeal to every man +who ever, at any time, belonged to the Republican party, to every +man who supported his country in its time of danger, to every lover +of liberty regulated by law, and every intelligent Democrat who +can see with us the evil tendencies of the dogmas I have commented +upon, to join us in reforming all that is evil, all the abuses of +the past, and in developing the principles and policies which in +twenty years have done so much to strengthen our government, to +consolidate our institutions, and to excite the respect and admiration +of mankind." + +I made similar speeches at Lewiston, Augusta, Waterville and Bangor. +General Sherman's estimate of my speech at Portland, in reply to +an inquiry, is characteristic of him, viz: + +"General, your brother, Secretary Sherman, seems to be doing some +telling work just now in the State of Maine; in fact, it is conceded +that his recent financial triumphs have made him a power." + +"Well, yes, I think John's doing right well. He made a good speech +at Portland, one that seemed to me carefully prepared. I think he +answered his critics quite conclusively, but if I were in John's +place I would now save my breath and make no more speeches, but +simply say in reply to other invitations, 'Read my Portland speech,' +because whatever other efforts he may make during the campaign must +be more or less a rehash of that." + +In the canvass that followed in Maine but little attention was paid +to the sectional question, and the Republican party gained a complete +victory. + +About the middle of August the business of the treasury department, +being confined to routine duties, was left under the management of +Assistant Secretary John B. Hawley. I determined to spend the +remainder of the month in the campaign in Ohio, then actively +progressing, but confined mainly to the issue between the inflation +of paper money and the solid rock of specie payments. I made my +first speech in that canvass at Steubenville on the 21st of August. +The meeting was a very large one. Every available seat was occupied +by an intelligent audience, and the aisles and corridors were filled +with people sitting or standing. I opened my speech as follows: + +"I am happy to be again among the people of Ohio, to whom I am +under the highest obligations of duty and gratitude, and especially +to be here in this good county of Jefferson, whose representatives +have thrice honored me by their vote when a candidate for the Senate +of the United States. I cheerfully come to speak on matters in +which you, as well as the whole people of the United States, have +a common interest; and I will best meet your wishes by stating, in +a plain, frank way, such facts and reasons as appear to me to +justify the support you have uniformly given to the Republican +party since its organization in 1854, and to present adequate +grounds for supporting it now. + +"Three parties present candidates to the people of Ohio for the +highest offices of the state. It will not be necessary or just +for me to arraign the personal character, standing, or services of +either of the candidates on either of these tickets. They are all +respected citizens, and each would, no doubt, if elected, satisfactorily +perform the duties of the office for which he is nominated. + +"But the issues involved are far more important than the candidates. +I assure you that upon the election in Ohio depend questions of +public policy which touch upon the framework of our government and +affect the interests of every citizen of the United States. The +same old questions about which we disputed before the war, and +during the war, and since the war, are as clearly involved in this +campaign as they were when Lincoln was elected, or when Grant was +fighting the battles of his country in the Wilderness. + +"There are also financial questions involved in this contest. The +Republican party proposed, maintained, and executed the resumption +act as the best remedy for the evils that followed the panic of +1873. Under that act it has brought about the resumption of specie +payments. By its policy all forms of money are equal to and +redeemable in coin. It has reduced the interest on all the public +debt that is now redeemable. It has maintained and advanced the +public credit. It now declares its purpose to hold fast to what +it has done, to keep and maintain every dollar of paper money in +circulation as of equal value to the best coin issued from the +mint, and as soon as possible to complete the work of reducing +interest on all the public debt to four per cent. or less. + +"The Greenback party not only denounces all we have done, but +proposes to reverse it by the issue of an almost unlimited amount +of irredeemable paper money, to destroy the system of free national +banks, and to call in and pay off all the United States bonds with +irredeemable money. + +"The Democratic party of Ohio, both in its platform and by its +candidates, supports more or less all of these dogmas; but it does +so not as a matter of principle, but for political power. Its main +object is, by any sort of alliance on any real or pretended popular +issue, to gain strength enough to unite with the solid south, so +that it may restore to power, in all departments of the national +government, the very same doctrines that led to the Civil War, and +the very men who waged it against the Union. To obtain political +power, the democracy seek, by party discipline, to compel their +members to abandon the old and cherished principles of their party +of having a sound currency redeemable in coin. For this, they +overthrew Governor Bishop; for this, they propose to reopen all +the wild and visionary schemes of inflation which have been twice +rejected by the people of Ohio. Our contest with them is not only +on financial questions, but upon the old and broad question of the +power and duty of the national government to enforce the constitution +and laws of the United States in every state and territory, whether +in favor of or against any citizen of the United States. + +"Let us first take up these financial questions, and in charity +and kindness, and with due deference to opposing opinions, endeavor +to get at the right, if we can. + +"The great body of all parties are interested in and desirous of +promoting the public good. If they could only hear both sides +fairly stated, there would be less heat and bitterness in political +contests, and more independent voting." + +I then proceeded with a full discussion of the financial questions, +referring especially to the speeches made by General Ewing, with +whose opinions I was conversant. I closed with a brief discussion +of the southern question, and especially the nullification of the +election laws in the southern states. This speech was the best of +many made by me in different parts of the state. I was engaged in +the canvass in Ohio for two weeks afterward, during which I visited +my home at Mansfield. + +In traversing the state I was surprised at the remarkable change +in the condition of business and the feelings of the people, and +at the evidences of prosperity not only in the workshops but on +the farms. It was jokingly said that the revival of industries +and peace and happiness was a shrewd political trick of the +Republicans to carry the state. As I rode through the country I +saw for miles and miles luxuriant crops of thousands of acres of +wheat, corn, oats and barley. It was said that this was merely a +part of the campaign strategy of the Republicans, that really the +people were very poor and miserable and on the verge of starvation. +This was the burden of the speeches of General Ewing, who attributed +the miseries of the people to my "wicked financial policy," and +said that I was given over to the clutches of the money power and +stripped and robbed the people of Ohio for the benefit of the +"bloated bondholders." + +While General Ewing was fighting in the shadows of the past, caused +by the panic of 1873, a revolution had taken place, and he who +entered into the canvass with the hope that the cry of distress +would aid him in his ambition to be governor, must have been greatly +discouraged by the evidences of prosperity all around him. I found +in my home at Mansfield that business was prosperous, the workshops +were in full blast, and smoke was issuing from the chimney of every +establishment in the place. + +My coming to Ohio naturally excited a good deal of comment and of +opposition from Democratic speakers and papers. I was charged with +nepotism in appointing my relatives to office, but upon examination +it was found that I had appointed none, though several, mostly +remote, were holding office under appointments of General Grant. +On the 25th of August I left Mansfield for Columbus and Cincinnati, +and on the train met Charles Foster and others on their way to +Mount Vernon. On their arrival they were met by flags and music, +and in response to the calls I made a brief speech. + +On the 27th of August I made my usual annual visit to Cincinnati +and the Chamber of Commerce of that city. That body is composed +in almost equal numbers of members of the two great parties, and +therefore, in addressing it, I carefully refrain from discussing +political topics. At that time there was a good deal of discussion +of the order made by me on the 13th of August, addressed to the +treasurer of the United States, directing him not to withdraw from +bank depositaries the money deposited for the payment of called +bonds, until it was required for that purpose. At the date of that +order over $70,000,000 of called bonds were still outstanding, but +only $52,000,000 remained on deposit with national bank depositaries +to pay them, thus showing that $18,000,000 United States notes had +been withdrawn from the depositaries into the treasury in advance +of their need for such payment. These sums were fully secured by +the deposit with the government of bonds to the amount of such +deposits and a further sum of bonds to the amount of five per cent. +of the deposit. + +I felt that the withdrawal of this great sum in advance of the +presentation of the called bonds would necessarily create an +injurious contraction of the currency. To meet this condition of +affairs, upon the advice of the treasurer at Washington and the +assistant treasurer at New York, and the pressing complaints of +business men not interested in depositary banks, I issued this +order: + + "Treasury Department, August 13, 1879. +"Hon. James Gilfillan, Treasurer United States. + +"Sir:--With a view to closing as soon as practicable the accounts +of the department with depositary banks on loan account, without +unnecessary disturbance of the money market or the withdrawal of +legal tenders from current business, you will please receive from +such depositaries in payment called bonds to be credited when passed +through the loan division. You will require from such depositaries +sufficient money in addition to the called bonds, to insure the +withdrawal of all deposits on loan account on or before the 1st of +October next. The letter of the department of March 26 is modified +accordingly. + + "Very respectfully, + "John Sherman, Secretary." + +It was said that this was done to relieve the banks, and especially +the First National and the National Bank of Commerce, of New York, +which in closing out the refunding operations had, as already +stated, made large subscriptions for themselves and others, and it +was intimated that I was interested in these banks. This innuendo +was without foundation or excuse, and was made merely to create a +political sensation. This order was made, not at the request of +the banks, for they were entirely prepared to pay the money, but +at the urgent demand of business men, that the currency should not +be withdrawn from the banks where it was employed in active business, +and be deposited in the treasury where it would lay idle. + +I thus explained the matter to the Chamber of Commerce, and to the +public at large. I felt that it would not be advisable for me to +drain the money market of legal tenders, and to hoard them in the +treasury to await the presentation of called bonds. If such a +course had been adopted, the clamor would have been louder and more +just. The order, no doubt, had a happy effect, as the running +accounts were rapidly and quietly closed, by the payment of the +called bonds, without any disturbance in the money market. The +clamor made was beneficial because it induced the holders of the +called bonds to send them in for payment, in which I greatly +rejoiced. + +In the evening of that day a reception was given to me at the +Lincoln club. While it was going on a large crowd, headed by a +band, approached the clubhouse, and loudly insisted that I should +speak to them. As this was a political club, I felt at liberty, +on being introduced by Warner M. Bateman, to make a political +speech, mainly devoted to my early friend, General Ewing, and his +peculiar notions of finance. This was reported in the papers at +the time. If there was too much political feeling manifested in +my speeches at this period, it may be partly excused by the extreme +violence of denunciation of me by Democratic speakers and +newspapers. + +Later in the evening I visited Wielert's pavilion, on Vine Street, +where the usual evening concert was being given. The visitors were +mainly German citizens, and, as such, were known to be in favor of +a sound currency based upon gold and silver. The orchestra at once +stopped the piece they were playing, and played the "Star Spangled +Banner," amid the cheering of the assemblage. They insisted upon +a speech, and I said: + +"When I came here to-night I did not expect to make a speech, as +I have made one already. I only came to see the people enjoy +themselves, to drink a glass of that good old German beverage, +beer, and to listen to the music. I am very happy to meet you, +and shall carry away with me a kindly remembrance of your greeting. +All I want, and that is what we all want, is honest money. A dollar +in paper is now worth a dollar in gold or silver anywhere in this +country, and we want affairs so shaped that the paper money issued +may be exchanged anywhere or under any circumstances for gold or +silver. That is my idea of honest money. [Cries, 'That is so.' +'That is ours, too,' etc.] We may be assured that such shall be +the character of the money in our country if the people will sustain +the party which has equalized the values of the paper and metal +moneys. Again I thank you for your kind reception." + +I returned to Washington and remained there during the month of +September, actively employed in the duties of the department. +During this month nearly all the outstanding called bonds were +presented and paid, and all sums deposited with national banks +during the operation of refunding were paid into the treasury and +these accounts closed. + +Fruitful crops in the United States, and a large demand for them +in Europe, caused an accumulation of coin in this country. Much +of it came through the customhouse in New York, but most of it was +in payment for cotton and provisions. It was readily exchanged +for United States notes and silver certificates. As all forms of +money were of equal purchasing power and paper money was much more +convenient to handle than coin, the exchange of coin, by the holders +of it, for notes or certificates, was a substantial benefit to them +and strengthened the treasury. I promoted these exchanges as far +as the law allowed. I deemed it wise to distribute this coin among +the several sub-treasuries of the United States, maintaining always +the reserve for the redemption of United States notes in the sub- +treasury in New York as the law required. For this purpose I issued +the following order: + + "Treasury Department, } + "Washington, September 19, 1879.} +"Gold coin beyond the needs of the government having accumulated +in the treasury of the United States, by the deposit in the several +public assay offices of fine bars and foreign coin, for which the +depositors have been paid, at their option, in United States notes, +the treasurer of the United States, and the several assistant +treasurers at Boston, New York, Philadelphia, Baltimore, Cincinnati, +Chicago, St. Louis, New Orleans and San Francisco, are hereby +authorized to pay out gold coin as well as silver coin and notes +upon the current obligations of the government, and upon advances +to disbursing officers, as may be convenient and practicable. +Transfers of coin for this purpose will be made to any assistant +treasurer, when necessary, by the treasurer of the United States, +upon application to him. The treasurer of the United States in +this city, upon the receipt by him of a certificate of deposit +issued by the United States assistant treasurer at New York, stating +that there has been deposited with him legal tender notes in the +sum of $100 or multiples thereof, will also cause to be shipped +from the mint to the depositor, at his risk and expense, a like +amount of gold coin. Standard silver dollars may also be obtained +as heretofore. + +* * * * * + + "John Sherman, Secretary." + +The result of this policy was beneficial, though the demand for +coin rarely existed except for foreign exchange, and this was +generally in New York, and largely depended upon the balance of +trade. Our people had been so accustomed to the use of paper money +that they received and paid United States notes in preference to +coin, and this more readily since these notes were equal in purchasing +power to coin. + +Senator Thurman, my colleague and personal friend, was active in +the canvass in Ohio. His term expired on the 4th of March, 1881, +and he was a candidate for re-election by the legislature about to +be chosen. I heard of his speeches, especially those in respect +to resumption. He commented upon the fact that United States notes +were only redeemed in the city of New York, and claimed that we +had not actually resumed, for gold was not in circulation. He +appealed to his audiences to say whether they had any gold and +whether they were not compelled to receive the same greenbacks then +as they had since the period of the war, and said if they wanted +gold they had to go to New York for it. I regarded this as a piece +of demagogism, for he knew the difference between the greenbacks +then and the greenbacks before resumption. Hearing that he was to +speak in Bellaire shortly I arranged to have certain disbursements +for wages in that neighborhood made in gold coin. When he made +his speech in Bellaire, soon afterwards, he repeated the same +statements that he had previously made, and appealed to the audience +to know whether they had seen any of the gold coin they had heard +so much about. Much to his surprise and embarrassment quite a +number of persons held up and shook gold coin. This put a stop to +his inquiries. The people appreciated the advance in the purchasing +power of their money, and neither demanded coin nor cared for it. + +Early in October I yielded to the urgent request of Mr. Foster to +help in the closing days of the canvass, and, on the evening of +the 8th, addressed a meeting at the west front of the capitol in +Columbus, far exceeding in numbers any political gathering during +the campaign. My opening will indicate the general trend of my +remarks: + +"It is not within my power to reach with my voice all who have +assembled on this occasion, and besides, for some time I have not +been much in the habit of speaking in the open air, and don't know +how long my voice will hold out, but I think I will be able to say +all that you will desire to hear from me, as I will be followed by +a gentleman distinguished in war and able to supply any imperfections +in my address. + +"When I was here in August last it appeared that the great point +in the political contest in which we were about to engage was +whether the people of Ohio would stand fast to the resumption of +specie payments, which the Republicans, by a steady and patient +courage and unswerving conviction, had finally brought to a successful +consummation on the 1st day of January last, or whether the people +of Ohio would yield to the wild and fanciful ideas of inflation, +and desert the great good that had been accomplished after so long +a trial. + +"The Democratic party, which had been holding the honored principles +of that party, seemed to be willing to go after strange gods, and +to form new alliances, to do anything to gain success, and that +old party sought to form at least temporary alliances, so that the +people would forget the great issue, and follow after these strange +and delusive ideas of which I will speak. Therefore it was that +my friend General Ewing was nominated for Governor of Ohio, with +the expectation that as he had advanced some such ideas in times +past, a coalition would be made between the parties naturally +hostile, and that the State of Ohio would be thus gained for the +Democratic ticket." + +In the course of my remarks I read an extract from General Ewing's +speech of the year before, in which he stated that if we were out +of debt to foreign countries, and if our foreign commerce floated +under our own flag, resumption in gold and silver would be impossible +on the then volume of paper money; that if it were attempted the +desperadoes of Wall street and the money kings of England would +present greenbacks, and take the gold as fast as it could be paid +over the counter of the treasury. I said in reply: + +"Not a year rolled around until this resumption came, and these +Wall street desperadoes and these money kings of Europe, instead +of coming and demanding our gold in exchange for greenbacks, now +bring their gold to us and want greenbacks for it. + +"The money kings of Europe have brought us gold--$36,900,000 in +gold coin from France--and the English have brought their gold and +exchanged it for United States notes. And these Wall street +desperadoes are as eager to get our greenbacks as you are. They +don't want the gold at all and we cannot put it on them. Why, my +countrymen, United States notes may now travel the circuit of the +world with undiminished honor, and be everywhere redeemed at par +in coin. They are made redeemable everywhere, and at this moment +the greenback is worth a premium on the Pacific coast and in the +Hawaiian Islands, and in China and Japan it is worth par; and in +every capital of Europe, in Berlin, in Paris, in London, an American +traveling may go anywhere in the circuit of the civilized world, +and take no money with him except United States notes. + +"Well, now, General Ewing was mistaken. Well, why don't General +Ewing come down and say 'I was mistaken?' [A voice, 'He will come +down.'] Yes, after next Tuesday he will." + +On the next day I spoke at Springfield to an audience nearly as +large, following the general lines of my Columbus speech. On the +following day I spoke at Lancaster from a stand in front of the +town hall, in plain sight of the house in which General Ewing and +I were born. I spoke of General Ewing in very complimentary terms, +said we had been intimate friends from boyhood, that our fathers +had been friends and neighbors, but that he and I then found +ourselves on opposite sides of a very important question. I +expressed my respect for the sincerity of General Ewing's motives, +but believed that he was thoroughly and radically wrong. I said +I wished to state frankly how he was wrong, and to what dangerous +consequences the fruit of his errors would lead, and I wanted the +people of Lancaster to judge between us. + +On the Saturday before the election I spoke in Massillon. By some +misunderstanding I was advertised to speak on that afternoon at +both Massillon and Mansfield, but, by an arrangement subsequently +made, I spoke at Massillon to one of the largest meetings of the +campaign, and then was taken by special train to Mansfield in time +to make my closing speech in the canvass. It was late in the +afternoon, but the crowd that met to hear me remained until my +arrival, of which the following account was given by the local +paper: + +"But the grand ovation was reserved for our distinguished townsman, +Secretary Sherman. There were acres of men, women, and children +and vehicles at the depot to meet him, and as he stepped from the +cars he was greeted with the booming of cannon, the music of half +a dozen bands, and the loud and long acclaim that came from the +throats of the immense concourse of friends. A thousand hands of +old neighbors were stretched out to grasp his as he moved along +with great difficulty, piloted by the reception committee, through +the vast and surging crowd. Cheer after cheer went up on every +imaginable pretext, and many times calls for 'Three cheers for John +Sherman, our next President,' were honored with a power and enthusiasm +that left no room for doubt as to the intensity of the devotion +felt for him at his old home." + +In this connection I wish to say once for all that I have been +under the highest obligations to the people of Mansfield during my +entire life, from boyhood to old age. I have, with rare exceptions, +and without distinction of party, received every kindness and favor +which anyone could receive from his fellow-citizens, and if I have +not been demonstrative in exhibiting my appreciation and gratitude, +it has nevertheless been entertained, and I wish in this way to +acknowledge it. + +In opening my address in the evening I said: + +"My fellow-townsmen, I regret your disappointment of to-day, that, +by some misunderstanding as to the hour of your meeting, I felt it +my duty, in obedience to the request of the state committee, to +attend the great mass meeting as Massillon this afternoon, and now +come before you wearied and hoarse, to speak of the political +questions of the day. + +"When I was in Ohio in August last, the chief question in the +pending political canvass was, whether the resumption of specie +payments, so long and steadily struggled for, and happily accomplished +by the Republican party, should be maintained, or whether it should +give way to certain wild and erratic notions in favor of irredeemable +paper money. Upon this issue General Ewing was nominated by the +Democratic party, in the hope that he would gain support from a +third party committed to inflation. Since then it would appear +that the Democratic leaders seek to change the issue. The same +old questions about the rights of states to nullify the laws of +the United States--the same old policy to belittle and degrade our +national government into a mere confederacy of states--are now +thrust forward into prominence." + +On the following Tuesday I voted, and immediately started for +Washington. The news of the triumphant election of Foster and +Hickenlooper, by over 30,000 majority, and a Republican majority +of twenty-five in the legislature, reached me while on the train. + +The management by Governor Foster of his canvass, and his work in +it, was as laborious and effective as any ever conducted in Ohio. +He visited every county in the state, often made four or five +speeches in a day, and kept special railroad trains in motion all +the while, carrying him from place to place. He is not, in the +usual sense, an orator, but in his numerous campaigns he has always +made clear and effective statements which the people could understand. +His manner is pleasing, without pretension or gush. He had been +elected to Congress several times in a district strongly Democratic. +In the campaign of 1879 he adopted the same plan that had been so +successful when he was a candidate for Congress. He was an +experienced and efficient hand-shaker. + + +CHAPTER XXXIX. +LAST DAYS OF THE HAYES ADMINISTRATION. +Invitation From General Arthur to Speak in New York--Letter to Hon. +John Jay on the Subject--Mr. Evarts' Refined Specimen of Egotism-- +An Anecdote of the Hayes Cabinet--Duty of the Government to Protect +the Election of All Federal Officers--My Speech in Cooper Institute +--Offers of Support to Elect Me as a Successor of Senator Thurman +--My Replies--Republican Victory in New York--President Hayes' +Message to Congress--My Report as Secretary of the Treasury-- +Modification of My Financial Views Since that Time--Bank Notes as +Currency--Necessity for Paper Money--Mr. Bayard's Resolution +Concerning the Legal Tender Quality of United States Notes--Questions +Asked Me by the Finance Committee of the Senate. + +In the latter part of September I was invited by General Arthur, +as chairman of the Republican state committee of New York, to speak +to the Republicans of that state during the pending canvass, in +aid of election of Mr. Cornell as governor. The circumstances of +the removal of Arthur and Cornell caused some doubt whether I should +accept the invitation, as it seemed that the nomination of Cornell +and the management of the canvass by Arthur was an expression of +triumph, and my acceptance would be regarded as a humiliation of +the President. I did not think so and in this opinion the President +concurred. I, therefore, accepted the invitation by the following +letter: + + "Treasury Department, } + "Washington, September 29, 1879.} +"Dear Sir:--I have to acknowledge the receipt of your letter of +the 25th inst., inviting me to speak to the Republicans in New York +some time during the pending campaign. It will give me great +pleasure to do my utmost in aid of the election of Mr. Cornell and +the Republican ticket at the coming election, and I wish I could +accept your invitation without reserve; but in view of engagements +made in Ohio, and the official duties incumbent upon me, I cannot +make any more definite reply than to say that by the middle of +October I hope to be able to set aside two or three days to be +spent in your canvass at such places as you may think I can render +the most satisfactory service. I have also received an invitation +from Mr. Johnson, secretary of your committee. Please consider +this an answer. + + "Very respectfully, + "John Sherman. +"To General C. A. Arthur, + "Chairman Republican State Committee, New York." + +Shortly afterward I received a letter from Hon. John Jay, expressing +regret at my acceptance, for the reasons I have stated. To this +I replied as follows: + + "October 4, 1879. +"My Dear Sir:--Your note of the 2nd is received. + +"I feel as you do that the nomination of Mr. Cornell, and the +appointment of Mr. Arthur to conduct the canvass, has the look of +a reproach to the President for their removal. If only their +personal interests were involved, I should feel great indifference +to their success, but it so happens that Republican success in New +York is of such vital importance to the people of the United States, +that their personal interest in the matter, and even the motive of +the nomination and appointment, should be overlooked, with a view to +secure the country against the return to power of the Democratic +party. + +"We must carry New York next year, or see all the results of the +war overthrown and the constitutional amendments absolutely nullified. +We cannot do this if our friends defeat a Republican candidate for +governor fairly nominated, and against whom, there are no substantial +charges affecting his integrity. Besides, the nomination of Mr. +Cornell could easily have been prevented if the friends of the +President and the administration had aided to defeat it. He was +nominated by our acquiescence, and we should not now complain of +it. The expediency of holding the meeting you propose, depends +entirely upon the question whether or not it would aid the Republican +cause this fall. I am inclined to think it would not, that such +a meeting would deter Republicans from supporting the regular ticket +and, therefore, is ill advised. I thus frankly state my opinion +as you ask it, but without any desire in any way to influence that +of others. + + "Very truly yours, + "John Sherman. +"Hon. John Jay, Katonah, N. Y." + +After the election in Ohio I received from General Arthur a list +of appointments for me in New York, which if I had attempted to +fill would have overtaxed my strength. Mr. Evarts had also been +invited, but limited his acceptance to one speech to be made in +Cooper Institute. I complained to him that it was not fair to +request of me so many speeches where he, a citizen of that state, +agreed to make but one. His answer was characteristic. He said: +"Well, Mr. Sherman, when the people of New York wish my views upon +public questions they arrange for a meeting in Cooper Institute, +or some such place. I make the speech and it is printed and is +read." I thought this, under the circumstances, a refined specimen +of egotism, meaning that he had only to pronounce his opinion to +attract universal attention and he need not therefore repeat his +speech at any other place. + +This incident recalls to my mind a specimen of his keen wit. Among +the early meetings of the cabinet President Hayes announced three +or four personal appointments that he intended to make, mainly in +the foreign service, in the department of which Mr. Evarts was the +head. Evarts seemed to be surprised at these appointments, and +after some pause he said: "Mr. President, I have never had the +good fortune to see the 'great western reserve' of Ohio, of which +we have heard so much." For a moment Hayes did not perceive the +quiet sarcasm of Mr. Evarts, which was a polite expression of his +feeling that he should have been consulted about these nominations +before they were announced. We all caught the idea and the President +joined heartily in the laughter. Mr. Evarts is not only a man of +keen wit, but is a great lawyer and able advocate. I learned, from +my intimate association with him in the cabinet, and subsequently +in the Senate as a member of the committee on foreign relations, +to respect and love him. + +On the 25th of October, when on my way to New York, at the request +of General Kilpatrick I made a speech at Paterson, New Jersey, on +the occasion of the ratification of the Republican nominations. +In this speech I expressed my opinions upon the subject of fraudulent +elections, especially in the south, and, while the government has +not been able at any time to completely protect the ballot box in +several states, the opinions I then expressed are still entertained. +I believe the right of each lawful voter to vote in national +elections should be enforced by the power of the national government +in every state and territory of the Union. I said at this time: + +"Now I want to serve notice on the Democratic party, that the +Republican party has resolved upon two things, and it never makes +up its mind upon anything until it is determined to put it through. +_We are going to see that every lawful voter in this country has +a right to vote one honest ballot at every national election, and +no more_. If the Democratic party stands in the way, so much the +worse for the Democratic party. If the south, rebellious as it +is, stands in the way again, we will protect every voter in his +right to vote wherever the constitution gives the right to vote. +Local elections must be regulated by state laws. Southern voters +may cheat each other as they please in local elections. The +Republican party never trenched on the rights of states, and does +not intend to. + +"Whenever national officers or Congressmen are elected, those are +national elections, and, under the plain provisions of the +constitution, the nation has the right to protect them. The +Republican party intends, if the present law is not strong enough, +_to make it stronger_. In the south 1,000,000 Republicans are +disfranchised. With the help of Almighty God, we intend to right +that wrong. Congress has a right to regulate congressional elections. +The Tweed frauds, reversing the vote of New York state in 1868, +led to the passage of the first federal election law, breaking up +false counts. Then the Mississippi plan was introduced in the +south. + +"If Congress was purged to-day of men elected by fraud and bloodshed +in the south, the Democrats would be in a pitiful minority in the +capital. At the last session the Democrats tried to repeal the +election laws, and were met by veto after veto from the stanch +Republican President. Then they tried to nullify existing laws. +We must as firmly resist nullification now as when Jackson threatened +'by the eternal God' to hang the original nullifier, Calhoun. _We +must have free elections_. We are determined to assert the _supremacy +of the United States in all matters pertaining to the United States_, +and to _enforce the laws of the United States, come what will_." + +This declaration of mine at the time created a good deal of criticism, +especially in the New York papers, but, in spite of this, my +convictions have grown stronger with time that it is the imperative +duty of the national government to protect the election of all +federal officers, including Members of Congress, by wise conservative +laws. + +On the 27th of October I spoke in Cooper Institute, confining myself +mainly to an exposition and defense of the financial policy of the +administration. This was hardly needed in the city of New York +though, as Evarts said of his speech, I knew what I said would be +printed, and people who were not familiar with financial topics +could read it. The commercial papers, while approving the general +tenor of the speech, complained that I did not advocate the retirement +of the legal tender notes of the government. They seemed then, as +they do now, to favor a policy that would withdraw the government +from all participation in furnishing a currency. I have always +honestly entertained the opinion that the United States should +furnish the body of circulating notes required for the convenience +of the people, and I do yet entertain it, but the notes should +always be maintained at parity with coin. In the cities generally, +where banks have great influence and where circulating notes are +superseded in a great measure by checks, drafts and clearing house +certificates, the wants of the people for paper money secured by +the highest sanction of law and by the promise and credit of the +government are not appreciated. In this speech I referred to the +banks as follows: + +"They [the banks] are interwoven with all the commercial business +of the country, and their loans and discounts form our most active +and useful capital. . . . The abolition of the national banks would +inevitably lead to the incorporation of state banks, especially in +bankrupt states, where any expedient to make paper money cheap will +be quickly resorted to. . . . It will open the question of the +repeal of the provisions of the loan laws fixing a limit to the +amount of United States notes, and thus will shock the public credit +and raise new questions of authority which the Supreme Court would +probably declare to be unconstitutional. Free banking open to all, +with prompt and easy redemption, supplies a currency to meet the +varying wants of different periods and seasons. Who would risk +such a question to the changing votes of Congress?" + +I must add, however, that I do not believe the banking system would +be sustained by popular opinion unless the great body of our currency +was in the form of United States notes or certificates based upon +coin. If there is any profit in the circulation of such notes, it +ought to inure to the government. The circulation of banks should +only be equal to the local demands for currency and should always +be amply secured, as now, by the deposit of United States bonds, +or some substitute for these bonds equally valuable, when the +national bonds shall be redeemed. This security ought not to extend +beyond the amount of bank notes actually outstanding, leaving the +security of deposits by individuals to depend upon the assets of +each bank. The duty of the government is performed when it guards +with undoubted security the payment of the circulating notes issued +by the banks. In this speech I spoke of the resumption act and +the history of resumption as follows: + +"The resumption act was a Republican measure, supported, advocated +and voted for by Republican Senators and Members, and without the +aid of a single Democrat in either House of Congress. It has been +adhered to and successfully executed by that party. The Republican +party has won no victory more complete than the passage, execution +and success of the resumption act. This measure was adopted in +January, 1875, in the midst of the panic, when our paper money was +worth only 85 cents on the dollar. It was a period of wild +speculation and inflation. The rate of interest was higher than +before or since--the government paying six per cent. in gold, +corporations in fair credit from eight to ten per cent., and +individuals from ten to twelve per cent. Recklessness in contracting +debts was universal. Railroads were built where they were not +needed; furnaces were put up in excess of all possible demands; +and over-production and over-trading occurred in all branches of +business. The balance of trade for ten years had been steadily +against us, with an aggregate excess of imports over exports of +over $1,000,000,000. + +"The panic of 1873 put an end to all these wild, visionary schemes, +and left the country prostrate and in ruin. All business enterprises +were paralyzed. Congress, in a hopeless quandary, looked in vain +for some way of escape from the bankruptcy which threatened every +interest and every individual. Then it was the Republican party +devised and placed upon the statute book the resumption act, and, +against noisy opposition and continual speaking, steadily persevered +in its execution. + +* * * * * * + +"Now that resumption is a success, Democrats say the Republican +party did not bring it about, but that Providence has done it; that +bountiful crops here and bad crops in Europe have been the cause +of all the prosperity that has come since resumption. We gratefully +acknowledge that Providence has been on the side of the Republican +party, or rather, that, having sought to do right, we find ourselves +supported by Divine Providence, and we are grateful to the Almighty +for the plentiful showers and favorable seasons that brought us +good crops; but we also remember that it was the passage of the +resumption act, the steady steps toward resumption, the accumulation +of the coin reserve, the economy of the people, and their adjustment +of business affairs to the time fixed for resumption, that, with +the blessings of Divine Providence, brought us resumption. + +"We should be, and are, thankful to the Almighty, but we are under +no thanks whatever to the Democratic party. It has not, for twenty- +five years, had Providence on its side, but we may fairly infer +that, as it has steadily resisted Providence and patriotic duty +for more than twenty years, it must have had the devil on its side. +Democrats can claim no credit, but stand convicted of a blundering +mistake in abandoning the old and tried principles of their party, +and following after strange gods with the hope of a brief and +partial success. They have failed, and that dogma for hard money, +which they abandoned, has been adopted by the Republican party, as +the corner stone of its greatest success." + +I spoke at Albany, Rochester, and Syracuse, and, on my way to +Washington, at New Brunswick, New Jersey. + +After the election in Ohio, I received several letters from members +of the legislature, offering their support to me as a candidate +for United States Senator, to be elected in January to succeed Mr. +Thurman, for the term commencing on the 4th of March, 1881. Among +them was a letter from L. M. Dayton, a member of the general assembly +from Hamilton county, to which I replied as follows: + + "Washington, D. C., November 2, 1879. +"My Dear Sir:--Your note of the 30th ult., in which you inquire +whether I will be a candidate for election as Senator of the United +States in place of Senator Thurman, is received. + +"Early last summer, when this subject was first mentioned to me by +personal friends, I freely expressed my conviction that as the +general assembly of Ohio had three times conferred upon me this +high and much coveted honor, I ought not to stand in the way of +others who might fairly aspire to that position. I am of the same +opinion now. During the recent canvass I stated to several gentlemen +who had been named in the public press as probable candidates, that +I would not be a candidate, and I could not now recede from that +position without just reproach. + +"Please say so to your fellow members, and accept my hearty thanks +for your partiality. + + "Very truly yours, + "John Sherman. +"Hon. L. M. Dayton, Cincinnati, Ohio." + +I also wrote the following letter to Senator A. B. Cole, of +Portsmouth, in reply to a similar offer: + + "Washington, D. C., November 11, 1879. +"My Dear Sir:--Your very kind letter of the 10th inst. is received. +I thank you again for your offer to support me for the Senate, but +you will have seen from the letter I wrote to Colonel Dayton, that +I have determined, under the circumstances stated therein, not to +be a candidate, so that members may feel entirely free to follow +their judgment in the selection of the Senator. I must be impartial +between the several candidates. + +"I thank you also for what you say about the nomination for the +presidency. Such a nomination would be a very exalted honor, so +much so that I ought not to do anything to promote or to defeat +it. I would be very glad to get the hearty cordial support of the +Ohio delegation, and that being granted I am perfectly willing to +abide the decision of the national convention, and will be ready +to support anyone who is nominated. + +"I should be glad to see your son, and hope you will give him a +letter of introduction to me. + + "Very truly yours, + "John Sherman. +"Hon. A. B. Cole, Portsmouth, Ohio." + +Cornell was elected Governor of New York, and with him a Republican +legislature. The elections generally that fall were in favor of +the Republican party, but, as both Houses of the 46th Congress were +Democratic, President Hayes had to conduct executive business with +a Congress not in political harmony with him until the 4th of March, +1881, when the term of Congress and of the President expired. I +feel bound to say that no merely obstructive financial measures +were adopted during that Congress. + +The message of the President, communicated to Congress on the 1st +of December, 1879, dealt with the usual topics of such a document; +but, instead of commencing with our foreign relations as usual, he +began by congratulating Congress on the successful execution of +the resumption act and the funding of all the public debt redeemable, +into bonds bearing a lower rate of interest. He recommended the +suspension of the coinage of the silver dollar, and the retirement +from circulation of United States notes with the capacity of legal +tender. He held that the issue of such notes during the Civil War +was not authorized except as a means of rescuing the country from +imminent peril, and the protracted use of them as money was not +contemplated by the framers of the law. While I did not concur in +all the views stated by the President, especially as to the policy +of retiring United States notes then in circulation, yet his general +conclusions in favor of the coin standard were, in my view, sound +and just. I was very willing to hold on to the progress made in +making United States notes equivalent to coin rather than to attempt +to secure their retirement from circulation. + +In the report made by me as Secretary of the Treasury I stated my +opinion that the existing law was ample to enable the department +to maintain resumption upon the volume of United States notes then +outstanding; but added, that in view of the large inflow of gold +into the country, and the high price of public securities, it would +seem to be a favorable time to invest a portion of the sinking fund +in United States notes to be retired and canceled, and in this way +gradually to reduce the maximum of such notes to the sum of +$300,000,000, the amount named in the resumption act. + +I would not make such a recommendation now, as I am convinced that +United States notes based on coin in the treasury are the best form +of currency yet devised, and that the volume might be gradually +increased as the volume of business increases. Since resumption +such notes have been maintained at par with coin by holding in the +treasury coin to the amount of thirty per cent. of the notes +outstanding. This coin, lying idle and yielding no interest, costs +the government the interest on an equal amount of bonds, or a +fraction over one per cent. on the sum of United States notes in +circulation. These notes are a part of the debt of the United +States, and if redeemed, must be paid by the issue of $346,000,000 +of bonds. I see no reason why the people of the United States +should not have the benefit of this cheap loan rather than the +national banks, and there are many reasons why the issue of a like +amount of notes by national banks cannot fill the place or perform +the functions of United States notes. The issue of bank notes +would be governed by the opinions and interest of the banks, and +the amount could be increased or diminished according to their +interests and without regard to the public good. As an auxiliary +and supplement to United States notes, bank notes may be issued as +now when amply secured by United States bonds, but it would be a +dangerous experiment to confine our paper money to bank notes alone, +the amount of which would depend upon the interest, hopes and fears +of corporations which would be guided alone by the supposed interests +of their stockholders. + +There is another objection to a sole dependence on bank notes as +currency: They cannot be made a legal tender either by the states +or the United States, while it is settled by the Supreme Court that +notes of the United States may be made a legal tender, a function +that ought to belong to money. + +I know that my views on this subject are not entertained by the +influential class of our citizens who manage our banks, but in this +I prefer the opinion and interest of the great body of our people, +who instinctively prefer the notes of the United States, supported +by coin reserves, to any form of bank paper that has yet been +devised. The only danger in our present currency is that the amount +may be increased to a sum that cannot be maintained at par with +coin, but the same or a greater danger would exist if the volume +of paper money should be left to the interested opinion of bankers +alone. + +It is sometimes claimed that neither the government nor banks should +issue paper money, that coin only is money. It is sufficient to +say that all commercial nations have been constrained by necessity +to provide some form of paper money as a substitute for coin. The +experience of the United States has proven this necessity and for +many years our people were compelled to rely upon state bank notes +as a medium of exchange, with resulting loss and bankruptcy. For +the want of paper money at the commencement of the Civil War, the +United States was compelled to issue its notes and to make them a +legal tender. Without this the effort to preserve the Union would +have utterly failed. With such a lesson before us it is futile to +attempt to conduct the business of a great country like ours with +coin alone. Gold can only be a measure or standard of value, but +cannot be the current money of the country. Silver also can only +be used as money for the small transactions of life, its weight +and bulk forbidding its use in commerce or trade. The fluctuations +in market value of these metals make it impossible to permit the +free coinage of both at any ratio with each other without demonetizing +one of them. The cheaper money will always be the money in +circulation. Wherever free coinage now exists silver is the only +money, while where gold is the standard, silver is employed as a +subsidiary coin, maintained at par in gold by the mandate of the +government and its receipt for or redemption in gold. The only +proposed remedy for this fluctuation is an agreement by commercial +nations upon a common ratio, but thus far all efforts for such an +agreement have failed. If successful the result might not be as +satisfactory as anticipated. + +I urged, in my report, the importance of adjusting the coinage +ratio of the two metals by treaties with commercial nations, and, +until this could be done, of limiting the coinage of the silver +dollar to such sum as, in the opinion of Congress, would enable +the department to readily maintain the standard dollars of gold +and silver at par with each other. + +In this report I stated the refunding transactions already described, +and recommended the refunding of all bonds of the United States in +the same manner as they became redeemable. This was successfully +executed by my successors in office. I was able to say truly of +the treasury department, in conclusion: + +"The organization of the several bureaus is such, and the system +of accounting so perfect, that the financial transactions of the +government during the past two years, aggregating $3,354,345,040.53, +have been adjusted without question, with the exception of a few +small balances now in the process of collection, of which it is +believed the government will eventually lose less than $13,000, or +less than four mills on each $1,000 of the amount involved." + +The question of the legal tender quality of United States notes, +discussed in my report, was followed, on the 3rd of December, by +the introduction in the Senate of a resolution by Mr. Bayard as +follows: + +"_Resolved, etc._, That from and after the passage of this resolution +the treasury notes of the United States shall be receivable for +all dues to the United States excepting duties on imports, and +shall not otherwise be a legal tender; and any of said notes +hereafter reissued shall bear this inscription." + +This resolution, while pending in the committee, was debated at +some length, and reported back adversely on the 15th of January, +1880, by Mr. Allison, from a majority of the committee. Mr. Bayard +presented the views of the minority in favor of the resolution. +It was subsequently discussed at considerable length by Mr. Coke, +of Texas, and Mr. Bayard, on opposite sides. No definite action +was taken and the matter rested, and I do not recall that it was +ever again brought before the Senate. I felt satisfied with the +majority report, as I doubted the expediency or power of Congress +to deny to these notes any of the qualities conferred upon them by +the law authorizing their issue, as was the legal tender clause. +The beneficial result of resumption was appreciated by both parties +and there was no disposition of Congress to pass any legislation +on the subject. The speech of Mr. Bayard, made on the 27th of +January, 1880, was a careful and able review of the whole subject +of legal tender, but it was evident that neither House of Congress +agreed with him in opinion. + +A bill in regard to refunding the debt maturing after the 1st of +March, 1881, was introduced in Congress on the 27th of December, +1879, by Fernando Wood, chairman of the committee of ways and means +of the House. It provided for a change of existing laws so as to +limit the rate of interest upon the bonds to be issued in such +refunding to not to exceed three and a half per cent. per annum. +This bill, if it had been passed, would have prohibited the sale +of all bonds for resumption, as well as for refunding, at a greater +rate of interest than three and a half per cent. I opposed this +proposition, as it would impair the power of maintaining resumption +in case such bonds could not be sold at par, and the existing law +did not prevent the secretary from selling those already authorized +at a premium. No action was taken upon the bill by that Congress, +and Mr. Windom, my successor, found no difficulty in refunding +these bonds on more favorable terms without any change of existing +law. + +On the 30th of January, 1880, I appeared before the finance committee +of the Senate in response to their invitation. The committee was +composed of Senators Bayard (chairman), Kernan, Wallace, Beck, +Morrill, Allison and Ferry, all of whom were present. Mr. Bayard +stated that a number of propositions, upon which it was desired to +obtain my views, had been submitted by Senator Beck, and then read +them as follows: + +"1. What reason, if any, there is for refusing to pass a bill +authorizing the receipt of legal tenders for customs dues. + +"2. Why the trade dollar should not be converted into a standard +dollar. + +"3. What has been the cost of converting the interest-bearing +debt, as it stood July 14, 1870, to what it is now, including double +interest, commissions, traveling expenses of agents, etc., and the +use of public money by banks, and the value of its use, so as to +determine whether the system should be continued or changed. + +"4. The effect of the abolition of the legal tender quality of +greenbacks upon the paper currency. + +"5. The necessity for a sinking fund and how it is managed. + +"6. Whether silver coin received in payment of customs duties has +been paid out for interest on the public debt; and if not, why not." + +Senator Allison desired to know if this interview was to be +stenographically reported, and the committee decided that it should +be. + +My answers to these questions and the colloquy with the committee +in respect to details cover fifty-four printed pages, and give by +far the most comprehensive statement of treasury operations during +the two or three years before that meeting, and suggestions for +future legislation, that has been written or published. The length +of the interview prevents its introduction in full, but a statement +of some portions of it may be interesting. In answer to the first +question I said: + +"The act of February 25, 1862 (section 3694, R. S.), provides that +all the duties on imported goods shall be paid in coin; and the +coin so paid shall be set apart as a special fund to be applied to +two purposes, one of which is the payment in coin of interest on +the bonds of the United States, and the balance to the sinking fund. + +"This is an obligation of the government that its coin revenue +should be applied to the payment of interest on the public debt. +So long as legal tender notes are maintained at par and parties +are willing to receive them in payment of coin interest, there is +no objection to receiving legal tender notes for customs dues. + +"Since resumption it has been the practice of the department to +thus receive them, but this practice can be kept up only as long +as parties holding interest obligations are willing to accept the +same notes in payment thereof. If, by any unforseen and untoward +event, the notes should again depreciate in value below coin, the +obligations of the government would still require that interest on +the public debt be paid in coin; and if customs dues were payable +in legal tender notes, the department would have no source from +which to obtain the coin necessary to the payment of interest, for +of course holders of interest obligations would not accept a +depreciated currency when they were entitled by law to coin." + +I reminded the committee that in my report of December, 1878, I +stated that on the 1st of January following I would receive United +States notes for customs duties. As these notes were redeemable +in coin, it was unreasonable to require the holder of notes to go +to one government officer to get coin for his notes to pay customs +duties to another government officer. I held that the United States +notes had become coin certificates by resumption, and should be +treated as such. I informed them that I issued the order with some +reluctance, and only after full examination and upon the statement +of the Attorney General, who thought technically I could treat the +note as a coin certificate. I called their attention to the fact +that I had informed Congress of my purpose to receive United States +notes for customs duties and had asked specific authority to do +so, but no action was taken, and I was assured that none was needed. +The conversation that followed showed that they all agreed that +what I did was right. It was evidently better not to provide by +specific law that the United States notes should be receivable for +customs dues, for in case of an emergency the law would be imperative, +while, if the matter was left to the discretion of the Secretary +of the Treasury, he could refuse to receive notes for customs dues +and compel their payment in coin. + +This led to a long colloquy as to whether the time might come when +the United States notes could not be redeemed in coin. I entered +into a full explanation of the strength of the government, the +amount of reserve on hand, the nature of our ability, and said: +"Still we know that wars may come, pestilence may come, an adverse +balance of trade, or some contingency of a kind which we cannot +know of in advance may arise. I therefore think it is wise to save +the right of the United States to demand coin for customs duties +if it should be driven to that exigency." + +The question then arose as to the propriety of confining redemption +of notes to one place. Mr. Wallace inquired whether the government +notes should not be receivable and interchangeable at every government +depositary. I answered that the notes should be received everywhere +at par with coin, but I doubted the propriety of paying coin for +United States notes except at one place and that in New York, the +natural center for financial operations, where most of the customs +dues were paid and where coin could be most safely hoarded. + +Mr. Beck examined me at considerable length, and, with his usual +Scotch tenacity, insisted, in spite of the attorney general, that +I was not authorized to receive legal tender notes for customs +dues. He asked me by what authority I claimed this power. I quoted +the third section of the resumption act, and gave him a copy of my +circular letter to officers of customs, dated on the 21st of +December, 1878, in which, after calling attention to that section, +I said: + +"By reason of this act, you are authorized to receive United State +notes, as well as gold coin and standard silver dollars, in payment +of duties on imports, on and after the first day of January, 1879. + +"Notes thus received will in every instance be deposited with the +treasurer, or some assistant treasurer of the United States, as +are other collections of such duties, to be redeemed, from time to +time, in coin, on government account, as the convenience of the +service may demand." + +Mr. Beck then said: + +"I desire to know, Mr. Secretary, whether it is not better, in your +opinion, that the Congress of the United States should prescribe +the duties of executive officers, so that they can act in pursuance +of law, rather than the executive officer should be acting on his +own notions of what is best?" + +I replied: + +"I say yes, decidedly." + +Mr. Beck inquired: + +"Is not that what we are proposing to do now, by the passage of +this law which I seek to have enacted, and are you not opposing +that condition of things?" + +I replied: + +"An executive officer, when there is a doubt about the law, must +give his own construction of it, but should, of course, readily +conform to the action of Congress as soon as it is declared. The +objection I make is not to the passage of a law, but that the bill +as proposed applies it to a possible future state of affairs such +as did not exist when this order was made and does not now." + +The subject then turned to the exchange of trade dollars for standard +dollars. Mr. Beck said: "I have introduced several bills to +facilitate the exchange of trade for standard dollars." I said: + +"The bill which I have here is a House bill. There is no objection +in my mind to the object of this bill; that is, to provide for the +exchange of the trade dollar for the standard silver dollar; the +only point is whether the trade dollar shall be treated as bullion, +or as a coined dollar of the United States. Now, I am clearly of +the opinion that it ought to be treated as so much bullion, issued +at the expense of merchants, for their convenience and benefit, +and without profit to the United States, and therefore not entitled +to any preference over other bullion, and we might say not to so +much, because it was issued to private parties for their benefit +and at their cost, but stamped by us merely to enable the coins to +be used to better advantage in a foreign market. I have not, +therefore, any objection to the bill if you allow us to pay the +same for these trade dollars as for other bullion." + +This reply led to a long examination about silver at home and in +foreign markets, and the objections made to having two silver +dollars, one coined for private persons, from bullion furnished by +them, and the other coined for the United States from bullion +purchased by it. + +Mr. Beck next inquired what effect the abolition of the legal tender +quality of the greenbacks would have on our paper currency. This +led to a long colloquy between him and myself, in which all the +laws relating to the subject and the practice of the government, +from its organization to that time, were discussed. + +On the question whether United States notes ought still to be a +legal tender, I referred him to my report, in which I said: "The +power of Congress to make them such was asserted by Congress during +the war, and was upheld by the Supreme Court. The power to reissue +them in time of peace, after they are once redeemed, is still +contested in that court." + +I soon found that Mr. Bayard and Mr. Beck were quite opposed to +each other on this topic, and I suggested that I thought that the +argument upon it should be between them. My own opinions were +sufficiently stated in the report in which I submitted to Congress +whether the legal tender should not be repealed as to all future +contracts, and parties be left to stipulate the mode of payment. +I said that United States notes should still be receivable for all +dues to the government, and ample provision should be made to secure +their redemption on demand. + +The examination, or, rather, conference, took a wide range between +the members of the committee and myself. Mr. Beck pressed me to +express my opinion of the legal tender which was contained in the +bill introduced by him, providing for a mandatory legal tender of +all forms of money. I answered: + +"I do not think, Mr. Senator, you ought to ask me that question, +because that is a matter you are called upon to decide and pass +upon in your sphere as a Senator. I would say, on the other hand, +that I do not think it ought to have any such effect. I suppose, +however, Mr. Bayard would very frankly tell you what the intention +of the resolution is." + +Mr. Bayard then said: + +"I know one thing: That banks cannot compel me to receive their +notes for debts due me, nor can any man compel me to receive them. +If the government owes me my salary, I think they could, perhaps, +pay me in the national bank notes, under the existing law, but you +cannot compel the payment of a debt between private parties with +it." + +I said: + +"If you will allow me, I should like to amplify a little on one +point: I think if Congress would take up this question of the +modification of the legal tender note and make certain rules of +evidence (which would be clearly constitutional), which good lawyers +undoubtedly approve, declaring that where a contract is made between +parties upon the basis of United States notes, it shall be presumed +by courts, in the affirmance of contracts, that the payment in +United States notes shall be a sufficient compliance therewith, +and that, in the absence of any absolute provision to the contrary, +paper money, or promises to pay money, shall be a legal tender in +discharge of any obligation." + +In respect to the cost of refunding, the next subject of inquiry, +I was able to give them full details, with all the orders of the +treasury department from the 16th of January, 1878, until the close +of these operations in the summer of 1879. Many of these details +had not then been published, but I furnished the fullest information +available. In response to an inquiry as to the amount of commissions +paid to the national banks on account of the sale of the four per +cent. bonds, a full table was exhibited of the subscriptions of, +and commissions paid to, the twenty-six national banks chiefly +engaged in this business, in which the total amount of sales made +by them was shown to be $552,929,100, and the amount of commissions +paid was $1,363,070.34. In exhibiting these tables I said: + +"Here is a table showing the sales and commissions of certain banks. +I have taken all banks who sold over $1,000,000. There were twenty- +six of them. The First National Bank, having been always connected +with the national securities and having been the agent of the +syndicate, continued to be the agent of the foreign syndicate, and +continued to have altogether the largest business. They sold of +the four per cent. bonds $262,625,000. The sales of the other +banks are kept here in the same way. The Bank of New York (National +Banking Association), I think, was the next. It sold $57,259,500. +The National Bank of Commerce sold $51,684,000; the National Bank +of the State of New York sold $46,915,000, and so on down." + +I called attention to the fact that in the last sale of about +$200,000,000 four per cent. bonds, we received one-half of one per +cent. premium, or a million dollars, which nearly covered the entire +commissions paid to the twenty-six banks named. Full details were +given of the various loans, and it was shown that the cost of +selling the last loan was less expensive to the government, in +proportion to the amount sold, than any previous loan. + +In reference to the sinking fund, about which I was asked my opinion, +I said it was the same old question that had been so often debated. +I explained that a sinking fund is nothing but an obligation or +promise, on the part of the government or an individual, to pay a +certain amount annually of the principal of the debt in addition +to the interest. In this way the debt is gradually liquidated and +the annual interest lessened. A sinking fund promised by a government +is nothing more or less than a name for the surplus revenue of the +government. A government without a surplus revenue cannot possibly +have a sinking fund. There is no way to pay a debt except by having +an income above your expenditures, and you can call your surplus +revenue a sinking fund if you choose. I said that under existing +law the department was required to purchase one per cent. of the +entire debt of the United States each fiscal year, and to set the +amount apart as a sinking fund, and to compute interest thereon to +be added with the amount to be subsequently purchased each year. +This act can only be construed as an authority to purchase the debt +in case of surplus revenue for the purpose. + +In practice, while keeping a book account with the sinking fund, +we have reduced the debt by the application of surplus revenue more +rapidly than if the requirements of the sinking fund had been +literally complied with. At several periods we, in fact, did not +reduce the debt, but actually increased it, and especially within +the last two years, but in other years of prosperity, when the +revenues exceeded our expenditures, we were able to pay a much +larger amount of the debt than the sinking fund required by law. + +Mr. Beck said: "I propose to inquire pretty carefully, before we +get through with this interview, concerning the immense reduction +of the public debt which has been made, of over $700,000,000, from +the highest point down to the present, so that we may be governed +in the future taxation by actual requirements of the public service." +He expressed his wish, after he had carefully examined the interview +thus far, to continue it at a future day, but I was not again called +upon. + + +CHAPTER XL. +THE PRESIDENTIAL NOMINATION IN 1880. +Talk of Grant for President for a Third Term--His Triumphal Return +from a Trip Around the World--The Candidacy of Mr. Blaine and Myself +--Many of My Opponents Those Who Disagreed with Me on Financial +Questions--Accused of Being a Catholic and of Using Patronage to +Aid in My Nomination--My Replies--Delay in Holding the Ohio State +Convention--My Interview with Garfield--Resolution of the State +Convention in My Favor--National Convention at Chicago, on June 2, +1880--Fatal Move of Nine Ohio Delegates for Blaine--Final Nomination +of Garfield--Congratulations--Letter to Governor Foster and to +Garfield--Wade Hampton and the "Ku-Klux Klan." + +During the entire period of this session of Congress the nomination +for President by the Republican national convention was naturally +the chief subject of interest in political circles. General Grant +returned from his voyage around the world arriving in San Francisco +in December, 1879, and from that time until he reached Washington +his progress was a grand popular ovation. He had been received in +every country through which he passed, especially in China and +Japan, with all the honors that could be conferred upon a monarch. +He made no open declaration of his candidacy, but it was understood +that he was very willing to again accept the office of President. +His friends openly avowed their intention to support him, and +answered the popular objection against a third term by the fact +that a term had intervened since he last held the office. Mr. +Blaine was also an avowed candidate and had strong supporters in +every part of the Union. My name was mentioned as a candidate, +and it was generally supposed that one of the three would be the +nominee of the Republican convention. I soon found that the fact +that I held an office which compelled me to express my opinions +was a drawback rather than a benefit, and, while I had the natural +ambition to attain such a distinction, I was handicapped by my +official position. + +The friends of General Grant succeeded in getting control of the +national committee and could dictate the time and place for holding +the convention. Senator Cameron was chosen chairman of that +committee. He openly avowed his preference for the nomination of +General Grant, and exercised all his influence and power to promote +it. It was decided to hold the convention on the 2nd of June, +1880, at Chicago. + +The chief topic of all the newspapers and politicians was the merits +and demerits of the three candidates then recognized as the persons +from whom the choice was to be made. Every charge against either +the personal character or conduct of each was canvassed with the +broadest license, and often with great injustice. The life and +conduct of General Grant were analyzed, and praised or blamed +according to the bias of the speaker or writer. Mr. Blaine always +had a warm and ardent support by the younger Republicans in every +part of the United States. His brilliant and dashing manner and +oratory made him a favorite with all the young and active politicians, +but, as he was a bold and active fighter, he had enemies as well +as friends. My strength and weakness grew out of my long service +in the House, Senate and cabinet, but, as my chief active work was +connected with the financial questions, upon which men of all +parties differed widely, I had to encounter the objections of all +who were opposed to my views on these questions. The idea was that +in the certain contest between Grant and Blaine I might be nominated, +in case either of them should fail to receive a majority of the +votes cast in the convention. + +It is scarcely worth while to point out the changes of opinion +during the popular discussion that preceded the meeting of the +convention of which every newspaper was full, the discussion being +universal. Votes were taken and expression of opinion sought in +every community in the United States. + +My letter book at this time became a curious mixture of business +and politics, so that I was early compelled to ask two of my personal +friends to take an office, which I furnished them in the Corcoran +building in Washington, to answer such letters as grew out of the +contest, and as a place where conferences could be held by persons +interested in my nomination. In this way I severed all connection +between my duties in the treasury and the necessary correspondence +caused by my being named as a candidate for President. I was at +once charged in the newspaper and even by personal letters, with +all sorts of misdemeanors, of which I was not guilty, but which I +felt it a humiliation to reply to or even to notice. Among the +first was a statement that in some way or other I was under the +influence of the Catholic church, and was giving Catholics an undue +share of appointments. My answer is here inserted, not as important, +but as a specimen of many such communications upon various subjects: + + "March 1, 1880. +"My Dear Sir:--Your note of the 20th is received. + +"I appreciate your kindness and frankness and will be equally frank +with you. + +"There is not one shadow of ground for the suspicion stated by you. +I was born, bred, educated and ingrained as a Protestant and never +had any affinity, directly or indirectly, with the Catholic church, +but share the common feelings and prejudices of Protestants against +the special dogmas and rites of that church. Still I believe the +Catholics have as good a right to their opinions, their mode of +worship, and religious belief as we have, and I would not weaken +or impair the full freedom of religious belief, or make any contest +against them on account of it for all the offices in Christendom. +I have no sympathy whatever with the narrow dogmatic hate and +prejudice of Mr. Cowles on this subject, though no doubt much of +this is caused by the unfortunate fact that his daughter has become +a Catholic, and I am charitable enough to take this into consideration +when thinking of him. Mrs. General Sherman, it is true, is a +Catholic. She was born so and will remain so. She is a good +Catholic, however, in good wishes and good works, but has also too +much of the dogmatism and intolerance of a sectarian for my ideas. +She neither claims to have nor has any sort of influence over me. + +"It is a mean business to get up such a prejudice against me when +men are so ashamed of it that they are afraid to avow it. + + "Very truly yours, + "John Sherman. +"Hon. Geo. H. Foster, Cleveland, Ohio." + +Another allegation made was that I was using the patronage of my +office to aid in my nomination. In regard to this I wrote as +follows to a friend: + +"I think the impression has been made upon the public mind that +the patronage of this department has been used in my favor. This +ought to be met. Of the two men who parcel out the patronage of +this department, one, General Raum, commissioner of internal revenue, +is a known personal friend of General Grant, appointed by him, and +the great majority of the officers under that bureau are believed +to be for General Grant. I have not sought to control any of them. +McCormick, my first assistant secretary, was a known Blaine man. +The second, Hawley, was a known personal friend of General Grant, +and recently resigned to run for nomination as Governor of Illinois. +McPherson, a known Blaine man, was chief of the bureau of engraving +and printing, which employs some seven hundred people. The officers +named have practically made all the appointments in the treasury +other than the presidential ones. Probably no one who ever held +my position has ever been so utterly indifferent to the distribution +of patronage, except that I always insisted that good Republicans +should be appointed to every position, small or great. I never +inquired who they were for for President. In official letters, a +copy of one of which I could furnish you if desired, I gave distinct +instructions that I would not permit anyone to remain in the service +who was making himself obnoxious to citizens generally, by pressing +my claims or advocating my nomination for President by the next +national convention, or by opposing me." + +I also soon learned that nearly every applicant whose appointment +I could not give or secure harbored this as a reason why I should +not be nominated for President, and in three or four cases where +the applicants were men of influence they opposed the selection of +delegates friendly to me. I do not mention any names, for most of +these gentlemen, years afterwards, became my warm friends. + +I early announced that unless the State of Ohio would give me a +substantial indorsement, my name would not be presented to the +convention. James S. Robinson was the chairman of the state +committee and A. L. Conger was a prominent member. They disagreed +as to the time of holding the state convention for the appointment +of delegates to the national convention, which my friends were +anxious to have at as early a period as possible, so that the +position of Ohio might be known to, and possibly influence the +action of, other states. The disagreement between these two +gentlemen resulted in a postponement of the convention until a +period so late that before it met most of the delegations were +selected by the other states. That was thought to be inimical to +my success, and led to ill-will and contention. Governor Dennison +and Governor Foster had frankly and openly avowed their purpose to +support my nomination, and actively did so. They advised me of +the condition of opinion from time to time, and early represented +that I might reasonably expect the support of all the districts, +except perhaps those represented by Garfield and McKinley, and the +Toledo district. + +I went to Mansfield on private business about the latter part of +March, and as usual was called upon to make a speech, which I did, +at Miller's Hall, on the 31st of March, and which was reported in +full at the time. I stated my position in regard to the nomination, +as follows: + +"By the course of recent events, and not by my own seeking, my name +is mentioned among those from whom the Republican party will select +one to carry its banner in the approaching presidential contest. +It is not egotistic to state this fact, and it would not be manly +to shrink from the criticism and scrutiny which such a choice +necessarily invites and provokes. + +"I accepted the position without a pretense of mock modesty, because +I do not think it right to allow friends to put themselves to +trouble on my account without a frank avowal that I was willing to +accept, and without delaying until certain of success; but with a +firm determination not to detract from the merits or services of +others, nor to seek this lofty elevation by dishonorable means or +lying evasions or pretense. In this way, and in this way only, am +I a candidate; but with great doubt whether, if nominated, I would +meet the expectation of friends, and resolved in case of failure +that I will abide, cheerfully and kindly, by the choice of the +convention. + +"There is one condition, scarcely necessary to state, upon which +my candidacy depends, and that is, if the Republicans of Ohio do +not fairly and fully, in their convention, express a preference +for me, and support me with substantial unanimity in the national +convention, my name will not be presented to that convention with +my consent. + +"This, fellow-citizens, is about all, and is perhaps more than I +ought to say about personal matters, for in the great contest in +which we are about to engage, the hopes, ambitions, and even the +lives, of men, are of but little account compared with the issues +involved." + +I proceeded, then, to discuss the political questions of the day. + +During the month of April delegates were selected from the different +congressional districts of the state to attend the state convention, +to meet on the 28th of that month. Prior to the convention the +question of the nomination was the subject of discussion in every +district. The sentiment in my favor was clearly expressed in nearly +every county or district of the state. On the 8th of April I wrote +the following letter to a friend: + +"McKinley is still in Ohio, and I presume will be there for some +days. I have to-day written to him at Canton covering the points +you name. You had better write to him yourself giving the list of +appointments desired. + +"There is a strong feeling that Garfield, in order to save his +district, should go to the Chicago convention as a delegate. He +is placed in a very awkward attitude now. If this district should +be against my nomination it would be attributed to either want of +influence on his part, or, what is worse, a want of sincerity in +my support. In view of the past this would be a very unfortunate +thing for him. This is a delicate matter for me to take any part +in, and I leave it entirely to your good judgment and kind +friendship." + +While in Ohio I had a consultation, at Columbus, with Governor +Foster, ex-Governor Dennison, and a number of other personal friends, +all of whom expressed great confidence that by the time the state +convention met, the friendly feeling in favor of Blaine, in some +of the districts of Ohio, would be waived in deference to the +apparent wishes of the great majority. In that event, in case my +nomination should prove impracticable, the whole delegation could +be very easily changed to Mr. Blaine. As to General Grant, though +he had many warm personal friends in Ohio, yet, on account of +objections to a third term, very few desired his nomination. + +Prior to the state convention I had an interview with General +Garfield which he sought at my office in the department, and he +there expressed his earnest desire to secure my nomination and his +wish to be a delegate at large, so that he might aid me effectively. +He had been chosen, with little or no opposition, United States +Senator, to fill the place of Thurman, whose term expired March 4, +1881. I had not a doubt of the support of Governor Foster, with +whom I had been in close correspondence, and who expressed a strong +desire for my nomination. I was permitted practically to name the +four delegates at large, and had implicit confidence that these +delegates would take the lead in my behalf. + +The state convention, which met on the 28th of April, was exceptionally +large, and was composed of the leading Republicans of Ohio, who +proceeded at once to the business before them. The persons named +by the convention as delegates at large to the national convention, +to assemble in Chicago on June 2, were William Dennison, James A. +Garfield, Charles Foster and Warner M. Bateman, who were instructed +for me. The following resolution of the convention expressed the +preference of the Republicans of Ohio in favor of my nomination, +and recommended that the vote of the state be cast for me: + +"_Resolved_, That the great ability, invaluable services, long +experience, full and exalted character, and unwavering fidelity to +Republican principles of our distinguished fellow-citizen, John +Sherman, entitle him to the honors and confidence of the Republican +party of Ohio, and of the country. His matchless skill and courage +as a financier have mainly contributed to accomplish the invaluable +and difficult work of resumption and refunding the public debt, +and made him the trusted representative, in public life, of the +business interests of all classes of the American people. He has +been trained from the beginning of his public life in advocacy of +the rights of man, and no man has been more unfaltering in his +demand that the whole power of the government should be used to +protect the colored people of the south from unlawful violence and +unfriendly local legislation. And in view of his services to his +country, and his eminent ability as a statesman, we, the Republican +party of Ohio, present him to the Republican party of the country, +as a fit candidate for president, and respectfully urge upon the +Republican convention at Chicago, his nomination, and the district +delegates are respectfully requested to vote for his nomination." + +The trend of public sentiment, as shown by the newspaper, indicated +that Grant and Blaine would each have a very strong following in +the national convention, but that the contest between them might +lead to my nomination. After the state convention, it was generally +assumed that I would receive the united vote of the delegation in +conformity with the expression of opinion by the convention. During +this period a few leading men, whose names I do not care to mention, +made a combination of those unfriendly to me, and agreed to disregard +the preference declared by the state convention. + +During the month of May the feeling in my favor increased, and many +of the leading papers in New York and in the eastern states advocated +my nomination as a compromise candidate. + +At this time I was in constant communication with General Garfield, +by letters and also by interviews, as we were both in Washington. +On the 10th of May he wrote me: + +"I think it will be a mistake for us to assume a division in the +Ohio delegation. We should meet and act as though we were of one +mind, until those delegates who are hostile to you refuse to act +with us, and if we fail to win them over, the separation will be +their act, not ours." + +The national convention met June 2, 1880. It was called to order +in the Exposition Hall, Chicago, by Senator J. Donald Cameron, and +a temporary organization, with Senator George F. Hoar as president, +was soon perfected. An effort was made by the friends of General +Grant to adopt the unit rule, which would allow a majority of each +state to determine the vote of the entire delegation. This was +rejected. + +Four days were occupied in perfecting the permanent organization, +and the nomination of candidates for President. During this time +a minority of nine of the delegation of Ohio announced their +determination to vote for Blaine. This was a fatal move for Blaine, +and undoubtedly led to his defeat. Nearly four-fifths of the +delegation were in favor of my nomination, in pursuance of the +express wishes of the Ohio convention, but they were all friendly +to Blaine, and whenever it should have become apparent that my +nomination was impracticable, the whole delegation could easily +have been carried for him without a division, and thus have secured +his nomination. The action of those nine delegates, who refused +to carry out the wishes of the state convention, prevented the +possibility of the vote of Ohio being cast for Mr. Blaine. + +Long before the convention I had declared, in a published interview, +that "Blaine is a splendid man, able and eminently fit for President. +If nominated he will find no one giving him a heartier support than +myself." We were connected by early ties of association and kinship, +and had been and were then warm friends. Blaine, when confident +of the nomination, said of me: "To no living man does the American +people owe a deeper debt of gratitude than to John Sherman, for +giving them resumption with all its blessings. As Secretary of +the Treasury he has been the success of the age. He is as eminently +fit for President as any man in America, and should he be nominated +all I am capable of doing will be done to aid in his election. +Should it be my fortune to become President, or should it fall to +the lot of any Republican, no one elected could afford to do less +than invite Secretary Sherman to remain where he is." The folly +of a few men made co-operation impracticable. I received opposition +in Ohio from his pretended friends, and he therefore lost the Ohio +delegation, which, but for this defection, would have made his +nomination sure had I failed to receive it. + +The speech of General Garfield nominating me has always been regarded +as a specimen of brilliant eloquence rarely surpassed, the close +of which I insert: + +"You ask for his monuments. I point you to twenty-five years of +national statutes. Not one great beneficent law has been placed +on our statute books without his intelligent and powerful aid. He +aided to formulate the laws that raised our great armies, and +carried us through the war. His hand was seen in the workmanship +of those statutes that restored the unity of the states. His hand +was in all that great legislation that created the war currency, +and in a still greater work that redeemed the promise of the +government, and made our currency the equal of gold. And when at +last called from the halls of legislation into a high executive +office, he displayed that experience, intelligence, firmness, and +poise of character which has carried us through a stormy period. +The great fiscal affairs of the nation, and the great business +interests of our country, he has preserved, while executing the +law of resumption and effecting its object, without a jar, and +against the false prophecies of one-half the press and all the +Democracy of this continent. He has shown himself able to meet +with calmness the great emergencies of the government for twenty- +five years. He has trodden the perilous heights of public duty, +and against all the shafts of malice has borne his breast unharmed. +He has stood in the blaze of 'that fierce light that beats upon a +throne,' but its fiercest ray has found no flaw in his armor, no +stain on his shield." + +On the first ballot 9 of the Ohio delegation voted for Mr. Blaine, +34 for me, and 1 for Edmunds. The general result was 304 for Grant, +284 for Blaine, 93 for Sherman, 34 for Edmunds, 30 for Washburne, +10 for Windom. The vote of my friends would have nominated Blaine +at any period of the convention, but under the conditions then +existing it was impossible to secure this vote to either Blaine or +Grant. + +The final result was the selection of a new candidate and the +nomination of Garfield. + +It is probable that if I had received the united vote of the Ohio +delegation I would have been nominated, as my relations with both +General Grant and Mr. Blaine were of a friendly character, but it +is hardly worth while to comment on what might have been. The +course of the Ohio delegation was the object of severe comment, +and perhaps of unfounded suspicions of perfidy on the part of some +of the delegates. + +As soon as I heard of the movement to nominate Garfield I sent the +following telegram to Mr. Dennison: + + "Washington, June 8, 1880. +"Hon. William Dennison, Convention, Chicago, Ill. + +"Whenever the vote of Ohio will be likely to assure the nomination +of Garfield, I appeal to every delegate to vote for him. Let Ohio +be solid. Make the same appeal in my name to North Carolina and +every delegate who has voted for me. + + "John Sherman." + +The moment the nomination was made I sent the following dispatch +to Garfield at Chicago: + + "Washington, June 8, 1880. +"Hon. James A. Garfield, Chicago, Ill. + +"I congratulate you with all my heart upon your nomination as +President of the United States. You have saved the Republican +party and the country from a great peril, and assured the continued +success of Republican principles. + + "John Sherman." + +I understood that the health of Governor Dennison, who had faithfully +represented me in the national convention, was somewhat impaired +by his confinement there, and invited him to join me in a sail on +the Chesapeake Bay, spending a few days at different points. He +accepted and we had a very enjoyable trip for about ten days. + +During this trip I wrote, for the 4th of July issue of the New York +"Independent," an article on Virginia and state rights. I had +promised to do this some time before but could not find an opportunity, +and availed myself of the quiet of the cruise to fulfill my promise. +The history of Virginia has always had for me a peculiar interest, +mainly because of the leading part taken by that state in the +American Revolution. The great natural resources of the state had +been neglected, the fertility of the soil on the eastern shore had +been exhausted, and no efforts had been made to develop the vast +mineral wealth in the mountains along its western border. The +destruction of slavery and the breaking up of the large farms and +plantations had discouraged its people, and I thought, by an +impartial statement of its undeveloped resources, I might excite +their attention and that of citizens of other states to the wealth +under its soil. This article, written in a friendly spirit, excited +the attention and approval of many citizens of the state, and +brought me many letters of thanks. + +In time I became thoroughly advised of what occurred at the Chicago +convention and had become entirely reconciled to the result, though +frequently afterwards I heard incidents and details which occasioned +me great pain and which seemed to establish the want of sincerity +on the part of some of the delegates, and tended to show that for +some time before the meeting of the convention the nomination of +General Garfield had been agreed upon. After its close I had +numerous letters from delegates of other states, complaining bitterly +of the conduct of the Ohio delegation and giving this as a reason +why they had not voted for me. I was assured that large portions +of the Massachusetts, Connecticut, New Jersey, and other delegations, +had notified General Foster that they were ready to vote for me +whenever their vote was required, but no such request came from +him. The matter had been made the subject of public discussion in +the newspapers. I was content with the result, but was deeply +wounded by what I could not but regard as a breach of faith on the +part of some of the Ohio delegation, and especially of Governor +Foster, who had been fully advised of my feelings in regard to his +course. I received a letter from him, on the 23rd of June, answering +the allegations that had been publicly made in regard to him, and +explaining his action. In reply I wrote him the following letter: + + "Washington, D. C., June 30, 1880. +"Dear Sir:--Your letter of the 23rd came while I was still absent +on the Chesapeake Bay. I regret that I did not see you, for a free +conversation would be far more satisfactory than letter writing. + +"I wish to be perfectly frank with you, as since I first became +acquainted with you I have felt for you warm friendship, and have +always had entire confidence in you. I confess, however, that the +information I received in regard to your operations at Chicago had +greatly weakened this feeling and left a painful impression upon +my mind that you had not done by me as I would have done by you +under like circumstances. Your letter chased away much of this +impression, and, perhaps, the better way would be for me to write +no more, but to treat your letter as entirely satisfactory and +conclusive. Still I think it right for me to give you the general +basis of the impressions I had formed. + +"My first impulse was to send you at once a mass of letters from +delegates and others attending the convention, but this would only +create a controversy, and, perhaps, betray confidence, which I +could not do. The general purport of these letters is that, while +you spoke freely and kindly of me, yet there was always a kind of +reserve in favor of Blaine and a hesitation in pressing me that +indicated a divided opinion, that partly by the divisions in the +Ohio delegation and partly by the halfway support of yourself, and, +perhaps others, the Ohio delegation lost its moral strength and, +practically, defeated me before any ballot was had. + +"This general impression I could have passed by, but it was distinctly +stated to me, by delegates and friends of delegates present at the +convention, that they proffered the votes of large portions of +their respective delegations to you with the understanding that +they were to be cast for me whenever you indicated the proper +moment. This was specifically said as to Indiana, Massachusetts, +Connecticut and the Blaine portion of the Pennsylvania delegation. +It was said that you prevented Massachusetts from voting for me +from about the tenth to the fifteenth ballot on Monday, that nine +of the Connecticut delegates held themselves ready to vote for me +on your call, but that you put it off, and Harrison is quoted as +saying that twenty-six votes from Indiana were ready to be cast +for me on Monday, at any time after a few ballots, but they were +withheld on account of representations from the Ohio delegation. +Mr. Billings, of Vermont, is quoted as saying that the Vermont +delegation, with two or three exceptions, were ready to vote for +me, but were discontented with the position taken by you, and +doubted whether you desired their vote for me. + +"These and many other allegations of similar import, coming one +after the other, led me to believe that you had changed the position +you took in the early part of the canvass, and had come to the +conclusion that it was not wise to nominate me, and that other +arrangements for your future influenced you in changing your opinion. +This impression caused me more pain than anything that has transpired +since the beginning of the contest. + +"I assure you I have no regrets over the results of the convention. +Indeed, the moment it was over, I felt a sense of relief that I +had not had for six months. + +"The nomination of Garfield is entirely satisfactory to me. The +only shade that rests on this feeling is the fact that Garfield +went there by my selection to represent me and comes from the +convention with the honor that I sought. I will do him the justice +to say that I have seen no evidence that he has contributed to this +result except by his good conduct in the presence of the convention. +I had always looked with great favor upon the contingency that if +I was not nominated after a fair and full trial and Blaine was, +you would be the candidate for the Vice Presidency, and had frequently +said to mutual friends that this was my desire. The contingency +of Garfield's nomination I did not consider, for I supposed that +as he was secure in the Senate for six years, he would not desire +the presidential nomination, but as it has come to him without his +self-seeking it is honorable and right and I have no cause of +complaint. If I believed that he had used the position I gave him +to supplant me, I would consider it dishonorable and would not +support him; but, while such statements have been made to me, I +feel bound to say that I have never seen nor heard from credible +sources any ground for such an imputation, and, therefore, he shall +have my earnest and hearty support. + +"There are one or two features of this canvass that leave a painful +impression upon me. The first is that the opposition to me in Ohio +was unreasonable, without cause, either springing from corrupt or +bad motives, or from such trivial causes as would scarcely justify +the pouting of a schoolboy. + +"I receive your frank statement with confidence and act upon it, +will treat you, as of old, with hearty good will and respect, and +will give no further credence to the stories I hear. You can have +no knowledge of the extent of the accusations that have been made +against you. + + "Very truly yours, + "John Sherman. +"Hon. Charles Foster, Columbus, Ohio." + +With this letter I sought to divest myself of all feeling or +prejudice growing out of the recent canvass. + +At the close of the fiscal year and the preparation of the usual +statements made at that time, there was a period of rest, of which +I availed myself by taking an excursion along our northeastern +coast. The quiet of the voyage, the salt air, and the agreeable +companions, were a great relief from the confinement and anxiety +of the previous months. Upon my return to New York from this +outing, on the 19th of July, I found two letters from General +Garfield, both relating to the progress of the canvass, and asking +my opinion of his letter of acceptance. In reply I wrote him: + + "New York, July 19, 1880. +"My Dear Sir:--Your letter of the 16th was received by me this +morning. When I left Washington, about the 1st of July, I felt +very much debilitated by the heat and by the long mental struggle +through which I had passed. I have had the benefit now of three +weeks quiet and rest, mostly on the ocean, avoiding, whenever +possible, all political talk, and feel, in consequence, greatly +refreshed and invigorated. I take the outward voyage _via_ Fortress +Monroe to Washington, arriving there on Thursday. + +"I received the telegraphic invitation to speak at Chicago but +could not accept, as I must give some relief to French and Upton +upon my return. + +"I have received letters and telegrams from Nash about his proposed +canvass, and highly approve it. I do not see, however, how it is +possible for me to prepare a speech during the present month. I +now propose to write a political letter in response to one from +Chicago, which I believe will have a wider circulation than a +campaign speech. During the latter part of August or the first of +September, which is as early as the active campaign ought really +to commence, I will be prepared to make several speeches in Ohio, +and, perhaps, in other states. This is my present plan. I regard +Indiana and New York as the pivotal states, and there the struggle +should be. + +"Your letter of acceptance I approve heartily, although I thought +you yielded a little too much in one or two sentences on the civil +service question. Although politicians have undertaken to ridicule +and belittle the efforts of President Hayes to bring about some +sort of civil service reform, yet the necessity of such a reform +is so ingrafted in the minds of the leading sensible people of the +northern states that anything like an abandonment of that idea will +not meet favor. I agree with you that it can only be done by the +co-operation of Congress, and it would be a great stroke of public +policy if Congress could be prevailed upon to pass a law prescribing +a reasonable tenure for civil office, with such guards against +arbitrary removals as would make the incumbents somewhat independent +in their opinions and actions. I had a conversation with Fletcher +Harper, at Long Beach, on Saturday, which leads me to think that +he is anxious upon this subject and also upon the financial +question. + +"The silver law threatens to produce within a year or so a single +silver standard, and already there is a feeling of uneasiness in +New York as to whether we can maintain resumption upon the gold +standard while the silver law remains. I could at any moment, by +issuing silver freely, bring a crisis upon this question, but while +I hold my present office I certainly will not do so, until the gold +reserve is practically converted into silver, a process that is +going on now at the rate of nearly two millions a month. I have +no fear, however, of being forced to this issue during my term, +and I hope Congress will come together next winter in such temper +that it may arrest the coinage of the silver dollar, if it will +not change the ratio. This question, however, is a very delicate +one to discuss in popular assemblages, and I propose, therefore, +in my speeches, to make only the faintest allusions to it, not +surrendering, however, our views upon the subject, for upon this, +I take it, we are entirely agreed. + +"I feel very hopeful of success. In this state business men are +generally satisfied, and your support is so strong that, even if +inclined, the Conkling Republicans will not dare oppose or shirk +the contest. I hear different stories about Conkling, but believe +that in due time he will do what he can, though his influence is +greatly overrated. A too active support by him would excite the +prejudices of hosts of people here who are determined not to follow +where he leads. + + "Very sincerely yours, + "John Sherman. +"Hon. James A. Garfield, Mentor, O." + +After the 19th of July I was at my desk, busily engaged in the +routine duties of my office, until, in accordance with the following +request of General Garfield, I visited New York to attend a conference +of Republicans, as to the conduct of the pending canvass: + + "Mentor, O., July 31, 1880. +"Dear Mr. Sherman:--I understand that the national Republican +committee have asked you to meet with them for consultation, in +New York, on the 5th prox. + +"At their unanimous and urgent request, I have reluctantly consented +to attend, but I shall esteem it a great favor if you will also go. + + "Very truly yours, + "J. A. Garfield. +"Hon. John Sherman, Washington, D. C." + +More than two hundred prominent Republicans from all parts of the +country met on the 5th of August, among whom were Senators Blaine +and Logan, Marshall Jewell, Thurlow Weed, and Edwards Pierrepont. +I was called upon to make an address. The only passage I wish to +quote is this: + +"The Republican party comes before the business men of this country +--with all its evidences of reviving prosperity everywhere--and +asks whether they will resign all these great affairs to the solid +south, headed by Wade Hampton and the Ku-Klux Klan, and a little +segment of these northern states, calling themselves the Democratic +party." + +More than a month afterwards, Governor Hampton wrote me a letter +complaining of my connecting him with the "Ku-Klux Klan," and the +following correspondence ensued: + + "Doggers' Springs, September 17, 1880. +"To Hon. John Sherman, Secretary of the Treasury. + +"Sir:--Some days ago I saw a report of your speech at a conference +held by the national Republican committee, at the Fifth Avenue +Hotel, New York, and you were quoted as having used the following +language: 'And now you are asked to surrender all you have done +into the hands of Wade Hampton and the Ku-Klux, and the little +segment in the north that is called the Democratic party.' May I +ask if you used these words, and, if you did so, did you mean to +connect me, directly or indirectly, with what was known as the Ku- +Klux Klan? + +"Requesting an early reply, addressed to me, care of Augustus +Schell, Esq., New York, I am, very respectfully, your obedient +servant, + + "Wade Hampton." + + + "Washington, D. C., September 21, 1880. +"Hon. Wade Hampton, care of Augustus Schell, Esq., New York. + +"Sir:--Your note of the 17th inst. is received, in which you inquire +whether, at the conference held by the national Republican committee, +at the Fifth Avenue Hotel, New York, I used the language attributed +to me as follows: 'And now you are asked to surrender all you have +done into the hands of Wade Hampton and the Ku-Klux, and the little +segment in the north that is called the Democratic party.' In +reply, I have to advise you, that while I do not remember the +precise language, I presume the reporter correctly stated, in a +condensed way, his idea of what I said. I no doubt spoke of you +as the leading representative of the Democratic party in the south, +and referred to the Ku-Klux Klan as the representative of the +barbarous agencies by which the Democrats have subverted the civil +and political rights of the Republicans of the south. + +"I did not connect you personally with the Ku-Klux Klan. Indeed, +I knew that you had, in one or two important instances, resisted +and defeated its worst impulses. I appreciate the sense of honor +which makes you shrink from being named in connection with it. +Still, you and your associates, leading men in the south, now enjoy +benefits of political power derived from the atrocities of the Ku- +Klux Klan, in which phrase I include all the numerous _aliases_ by +which it has, from time to time, been known in the south. Your +power in the southern states rests upon the actual crimes of every +grade in the code of crimes--from murder to the meanest form of +ballot-box stuffing committed by the Ku-Klux Klan and its kindred +associates, and, as you know, some of the worst of them were +committed since 1877, when you and your associates gave the most +solemn assurance of protection to the freedmen of the south. + +"These crimes are all aimed at the civil political rights of +Republicans in the south, and, as I believe, but for these agencies, +the very state that you represent, as well as many other states in +the south, would be represented, both in the Senate and House, by +Republicans. But for these crimes the boast attributed to you, +that one hundred and thirty-eight solid southern votes would be +cast for the Democratic ticket, would be but idle vaporing; but +now we feel that it is a sober truth. + +"While I have no reason to believe that you or your northern +associates personally participated in the offenses I have named, +yet, while you and they enjoy the fruits of these crimes, you may, +in logic and morals be classed as I classed you, as joint copartners +with the Ku-Klux Klan in the policy which thus far has been successful +in seizing political power in the south, and which it is hoped, by +the aid of the small segment of the Democratic party in the north, +may be extended to all the departments of the government. It is +in this sense that I spoke of you, the Ku-Klux Klan and the northern +Democratic party. + +"Permit me, in conclusion, while frankly answering your question, +to say the most fatal policy for the south would be by such agencies +as I have mentioned to secure again political ascendency in this +country, for I assure you that the manhood and independence of the +north will certainly continue the struggle until every Republican +in the south shall have free and unrestricted enjoyment of equal +civil and political privileges, including a fair vote, a fair count, +free speech and free press, and agitation made necessary to secure +such results may greatly affect injuriously the interests of the +people of the south. + + "Very respectfully, your obedient servant, + "John Sherman." + + + "Charlottesville, Va., October 1, 1880. +"To Hon. John Sherman. + +"Sir:--Your letter has been received. As you do not disclaim the +language to which I called your attention, I have only to say that +in using it you uttered what was absolutely false, and what you +knew to be false. My address will be Columbia, S. C. + + "I am your obedient servant, + "Wade Hampton." + + + "Treasury Department, } + "Washington, D. C., October 18, 1880.} +"To Hon. Wade Hampton, Columbia, S. C. + +"I have to acknowledge the receipt of your note of the 1st inst., +handed me unopened by Mr. C. McKinley, a few moments ago, after my +return from the west. I had this morning read what purported to +be an extract of a speech made by you, published in the Charleston +'News and Courier,' and upon your general reputation as a gentleman +had denied that you had made such a speech or written such a letter +as is attributed to you in that paper. What I stated to you in my +letter of September 21, I believe to be true, notwithstanding your +denial, and it can be shown to be true by public records and as a +matter of history. As you had, long before your letter was delivered +to me, seen proper to make a public statement of your views of the +correspondence, I will give it to the press without note or comment, +and let the public decide between us. + + "Very respectfully, + "John Sherman." + +This correspondence excited a good deal of attention, and broke +off all social relations between us. We afterwards served for many +years in the Senate together, but had no intercourse with each +other except formal recognition while I was president of the Senate. +I always regretted this, for I did not feel the slightest enmity +to General Hampton, and recognized the fact that while enjoying +the office he held as the result of the crimes of the Klan, yet he +and his colleague, M. C. Butler, were among the most conservative +and agreeable gentlemen in the Senate, and the offenses with which +I connected his name were committed by his constituents and not by +himself. + + +CHAPTER XLI. +MY LAST YEAR IN THE TREASURY DEPARTMENT. +Opening of the 1880 Campaign in Cincinnati--My First Speech Arraigned +as "Bitterly Partisan"--Letter from Garfield Regarding the Maine +Election--Ohio Thought to Be in Doubt--Many Requests for Speeches +--Republican Ticket Elected in Ohio and Indiana--A Strange Warning +from Detroit Threatening Garfield with Assassination--The Latter's +Reply--My Doubts About Remaining in the Treasury Department or +Making an Effort for the Senate--Letter to Dalzell--Last Annual +Report to Congress in December, 1880--Recommendations Regarding +Surplus Revenue, Compulsory Coinage of the Silver Dollar, the +Tariff, etc.--Bills Acted Upon by Congress. + +During July and August I received many invitations to speak on +political topics, but declined all until about the 1st of September. +In anticipation of the election of Garfield, and his resignation +as Senator, I was, as early as July, tendered the support of several +members of the legislature who had voted for him for Senator, and +who wished to vote for me in case he resigned. I replied that I +would prefer the position of Senator to any other, that I resigned +my seat in the Senate to accept the office of Secretary of the +Treasury, and would be gratified by a return to my old position, +but only in case it came to me as the hearty choice of the general +assembly. During the month of August the two assistant secretaries, +who had been for a year confined to the department and upon whom +the duties of secretary had devolved during my recent absence, went +on their usual vacation, so that I was fully occupied during office +hours with the routine business of the department. + +My first speech of the campaign was made on Monday, the 30th of +August, in Cincinnati. It was carefully prepared, and delivered +in substance as printed. My habit has been for many years, at the +beginning of a political canvass, to write or dictate a speech and +hand it to the press associations, to be printed in the newspapers +only after the speech is made. This is done for the convenience +of the press and to secure an accurate report. The speech at +Cincinnati, thus prepared, was not read by me, but I spoke from +briefs which enabled me to substantially follow it. Subsequent +speeches had to vary according to the nature and mood of the +audience, or the political subject exciting local interest and +attention. At Cincinnati I gave a comparison of the principles, +tendency, and achievements of the two great parties, and the reasons +why the Democratic party wanted a change in the executive branch +of the government. I contrasted the aims and policy of that party, +at each presidential election from 1860 to 1880, with those of the +Republican party, and expressed my opinion of the effects that +would have followed their success at each of those elections. I +stated in detail the results secured during the last four years by +the election of a Republican President. These included the resumption +of specie payments, the refunding and the steady reduction of the +public debt, the faithful collection of the revenue, economy of +public expenditures, and business prosperity for which I gave the +causes, all of which were opposed or denied by the Democratic party. +I entered into detail on the measures proposed by the then Democratic +Congress, the motive of them, and the ruinous effects they would +produce, and alleged that the changes proposed were dictated by +the same policy that was adopted by Buchanan and the active leaders +of the War of the Rebellion and by the corrupt power that controlled +the city of New York. I replied to the charges of fraud made as +to the election of President Hayes, that the alleged fraud consisted +in the judgment of the electoral commission created by the Democrats +that Hayes was duly elected. I narrated the gross crimes of the +Ku-Klux Klan and kindred associations to control the elections in +the south, and the attempted bribery of an elector in Oregon. + +This speech was arraigned as bitterly partisan, but it was justified +by facts proven by the strongest evidence. I have recently carefully +read it, and, while I confess that its tone was bitter and partisan, +yet the allegations were clearly justified. At this time such +fraud and violence could not be practiced in the south, for the +tendency of events has quieted public sentiment. The lapse of time +has had a healing effect upon both sections, and it is to be hoped +that hereafter parties will not be divided on sectional lines. + +The Cincinnati speech had one merit, in that it furnished speakers +and the public the exact statistics of our financial condition in +advance of my annual report to Congress in December. I made speeches +each week day in Ohio and Indiana until the 11th of September, when +I returned to Washington. + +The election in Maine, which occurred early in September, was +unfavorable to the Republican party, and caused General Garfield +some uneasiness. He wrote me the following letter: + + "Mentor, Ohio, September 17, 1880. +"Hon. John Sherman, Washington, D. C. + +"My Dear Sir:--Yours of the 15th inst. is received. I hear in many +ways the same account which you give of the cause of our falling +off in Maine. The latest news indicates that we have carried the +election after all, but our people claimed too much, and the moral +effect of it may be bad in some of the doubtful states. Still, so +far as I can see, every Republican is more aroused and determined +than ever. + +"I think we should now throw all our force into Indiana and Ohio +until the October election. Indiana is now more thoroughly organized +by our people than it has been for many years, and I believe that +nothing can defeat us, except importations and purchases by the +Democracy. I have not known the Republicans of that state so +confident in six years as they now are, and every available help +should be given them to win the fight. I have learned certainly +that the Democrats intend to make a powerful raid upon Ohio, for +the double purpose of beating us if they can, and specially in +hopes that they may draw off our forces in Indiana. + +"I know you can accomplish a great deal, even while you are in +Washington, but I hope you will give as much time as possible to +the canvass here and in Indiana--especially give us the last ten +days. + + "Very truly yours, + "J. A. Garfield." + +I replied on the 22nd of September that the assured election of +Plaisted, the fusion electoral ticket in Maine, and many things in +my correspondence, made me feel exceedingly anxious about the result +of the election, that my advices from Ohio were not satisfactory, +and I felt that we must exert ourselves to the utmost to insure +victory at our October election. "I think from my standpoint here," +I said, "I can get more certain indications of public opinion than +anyone can while canvassing. I therefore have determined to go to +Ohio the latter part of this week, and to devote the balance of +the time, until the election, to the campaign." I also advised +him that I had arranged to have several other speakers go to Ohio. + +To this he replied: + + "Mentor, Ohio, September 25, 1880. +"My Dear Sir:--Yours of the 22nd inst. is received. I am glad that +you are coming back to take part in the canvass. Within the last +ten days it has become evident that money is being used in large +amounts in various parts of this state. Reports of this come to +me in so many independent ways that I cannot doubt it. I was in +Toledo on the 22nd to attend the reunion of the 'Army of the +Cumberland,' and my friends there were thoroughly alarmed. They +said the Democrats had an abundance of money, and that those in +Toledo were contributing more than they had done for many years. + +"I think our friends should push the business aspect of the campaign +with greater vigor than they are doing, especially the tariff +question which so deeply affects the interests of manufacturers +and laborers. The argument of the 'solid south' is well enough in +its way, and ought not to be overlooked, but we should also press +those questions which lie close to the homes and interests of our +own people. + + "Very truly yours, + "J. A. Garfield. +"Hon. John Sherman, Washington, D. C." + +About this period I received an invitation to speak in New York, +but doubted the policy of accepting, and answered as follows: + + "Washington, D. C., September 20, 1880. +"My Dear Sir:--Your note of the 17th, inviting me to address the +citizens of New York, under the auspices of your club, during the +campaign, is received. Please accept my thanks for the courteous +manner in which your invitation is expressed. + +"I will be compelled to remain here until the 4th of October and +then go to Ohio and Indiana to engage in the canvass, which will +carry me to the 15th or 16th of October. I have been urged also +to go to Chicago and Milwaukee, and have made promises in several +cities in the eastern states, especially in Brooklyn; so that I do +not see how it is possible for me to accept your kind invitation. +I have also some doubt whether it would be politic to do so. It +seems to be the determination of a certain class of Republicans in +New York to ignore or treat with dislike President Hayes and his +administration, and to keep alive the division of opinion as to +the removal of Arthur. From my view of the canvass the strength +of our position now is in the honesty and success of the administration. +While I have no desire to contrast it with General Grant's, yet +the contrast would be greatly in favor of President Hayes. The +true policy is to rise above these narrow family divisions, and, +without disparagement of any Republican, unite in the most active +and zealous efforts against the common enemy. Senator Conkling +does not seem to have the capacity to do this, and the body of his +following seems to sympathize with him. I doubt, therefore, whether +my appearance in New York would not tend to make divisions rather +than to heal them, to do harm rather than good. I am so earnestly +desirous to succeed in the election that I would even forgo a self- +defense to advance the cause. + + "Very truly yours, + "John Sherman. +"Hon. B. F. Manierre, Ch. Rep. Central Campaign Club, New York." + +On the first of October I left Washington for Mansfield and spoke +at a mass meeting there on Saturday evening, the 2nd. The canvass +on both sides was very active and meetings were being held in all +parts of the state. The meeting at Mansfield held in the open +square both in the afternoon and evening, was very large. I spoke +each day except Sunday during the following week, at different +places in Ohio and Indiana. Confidence in Republican success grew +stronger as the October election approached. After the vote was +cast it was found that the Republican state ticket was elected by +a large majority in both these states. In pursuance of previous +engagements, I spoke at Chicago, Racine, and Milwaukee, after the +October election. The speeches at Chicago and Milwaukee were +reported in full and were circulated as campaign documents. During +the latter part of the month of October I spoke at the city of +Washington and in Bridgeport, Norwalk and New Haven, Connecticut, +and at Cooper Institute in the city of New York, and then returned +home to vote at the November election. + +The result was the election of a large majority of Republican +electors and the certainty of their voting for Garfield and Arthur +as President and Vice President of the United States. I had done +all that it was possible for me to do to bring about that result +and rejoiced as heartily as anyone, for I thoroughly believed in +the necessity of maintaining Republican ascendency in the United +States, at least until a time when the success of the opposite +party would not endanger any of the national results of the war or +the financial policy of President Hayes' administration. + +On the day after the election General Garfield wrote me the following +letter: + + "Mentor, Ohio, November 4, 1880. +"My Dear Sir:--Yours of the 1st inst. came duly to hand, and was +read with much interest. The success of the election is very +gratifying. The distrust of the solid south, and of adverse +financial legislation, have been the chief factors in the contest. +I think also that the country wanted to rebuke the attempt of the +Democrats to narrow the issue to the low level of personal abuse. +I am sure that all our friends agree with me that you have done +very important and efficient work in the campaign. + +"I may go to Washington before long to look after my personal +affairs. If I do not, I hope to have some other opportunity of +seeing you. + + "Very truly yours, + "J. A. Garfield. +"Hon. John Sherman, Washington, D. C." + +I received a letter from a Mr. Hudson, of Detroit, which expressed +a fear that General Garfield was in serious danger of assassination, +giving particulars. I sent it at once to Garfield, and received +from him the following answer, very significant in view of the +tragedy that occurred the following summer: + + "Mentor, O., November 16, 1880. +"My Dear Sir:--The letter of Mr. Hudson, of Detroit, with your +indorsement, came duly to hand. I do not think there is any serious +danger in the direction to which he refers, though I am receiving +what I suppose to be the usual number of threatening letters on +that subject. Assassination can no more be guarded against than +death by lightning; and it is not best to worry about either. I +expect to go to Washington before long to close up some household +affairs, and I shall hope to see you. + + "With kind regard, I am, very truly yours, + "J. A. Garfield. +"Hon. John Sherman, Washington, D. C." + +Immediately after the election of General Garfield, and until the +18th of December, there was a continuous discussion as to who should +be the successor to Senator Thurman. This was the senatorship to +which Garfield had been elected and now declined to fill. I received +many letters from members of the legislature expressing their wish +that I should be restored to the Senate, and offering to vote for +me. They generally assumed that I would have the choice between +remaining in the treasury department under President Garfield and +becoming a candidate for the Senate. Among the letters received +by me was one from Mr. Thorpe, a member from Ashtabula county, +Ohio, and a personal friend. I thought it right to tell him frankly +the dilemma in which I was placed by the discussion in the papers. +This letter expressed my feelings in regard to the matter and I +therefore insert it: + + "Washington, D. C., November 15, 1880. +"My Dear Sir:--Your letter of the 11th relieves me from some +embarrassment. I am very thankful to you for the tender of your +services and continued hearty friendship. I will avail myself of +it to tell you confidentially the difficulty under which I labor. + +"The letter to Dalzell was not intended for publication, but was +simply a hurried reply to one of two or three long letters received +from him. Still the letter stated in substance my feeling, and he +probably intended no wrong but rather thought he would benefit me. +Both before and since, I have been overwhelmed with letters +remonstrating against my leaving my present position, as if I had +any choice. + +"As a matter of course, General Garfield must decide this without +haste and free from all embarrassment, but in the meantime I am at +a loss what to do. I cannot properly say to my correspondents that +I would stay in the treasury if invited to do so, nor can I ask +gentlemen to commit themselves until they know definitely what I +wish. I cannot afford to be a candidate unless I expect to succeed. +I believe, from information already received, that I can succeed, +but only after a struggle that is distasteful to me, and which I +cannot well afford. I can only act upon the assumption that General +Garfield will desire to make an entire change in his cabinet, and +upon that basis I would gladly return to the Senate as the only +position I could hold, or, if there was any doubt about election, +I would cheerfully and without discontent retire from public life. +I have now at least a dozen unanswered letters on my table from +members of the legislature, tendering their services, and stating +that I ought to explicitly inform them my wishes, most of them +assuming that I have a choice. I intend to answer them generally +that, if elected, I would consider it the highest honor and I would +then accept and serve. So I say to you: If I enter the canvass +I must depend upon my friends without being able to aid them +actively, and with every advantage in the possession of Foster. +Such a contest, I see, will open up trouble enough in the politics +of Ohio, whatever may be the result. With this explicit statement +you will understand best how to proceed. I would regard the support +of Senator Perkins as of the utmost importance. After awhile I +can give you the names of a score at least of others who avow their +preference for me. + + "Very truly yours, + "John Sherman. +"Hon. F. Thorpe, Geneva, O." + +The letter to Dalzell referred to was hastily and carelessly written, +without any expectation of its publication. It was as follows: + +"To Hon. J. M. Dalzell, Caldwell, Ohio. + +"My Dear Sir:--Your kind note of the 4th is received, for which +please accept my thanks. I prefer to do precisely what you recommend, +await the judgment of the general assembly of Ohio, unbiased by +any expression of my wish in the matter referred to. I do not know +what is the desire of General Garfield, but I can see that my +election might relieve him from embarrassment and free to do as he +thinks best in the formation of his cabinet. Again thanking you +for your kind offer, I am very truly yours, + + "John Sherman." + +The papers, while taking sides between Foster and myself, exaggerated +the danger and importance of the contest and thus unduly excited +the public mind, for either of us would have cheerfully acquiesced +in the decision of the general assembly. Strong appeals were made +to Foster to withdraw, especially after it was known that I would +not be Secretary of the Treasury in the incoming administration. +No such appeals came to me, nor did I take any part in the controversy, +but maintained throughout the position taken in my letter to Mr. +Thorpe. + +In November, 1880, I was engaged in the preparation of my annual +report sent to Congress December 6. The ordinary receipts for the +fiscal year ending June 30, 1880, were $333,526,610.98. The total +ordinary expenditures were $267,642,957.78, leaving a surplus +revenue of $65,883,653.20, which, with an amount drawn from cash +balance in treasury, of $8,084,434.21, made a surplus of $73,968,087.41, +which sum was applied to the reduction of the public debt. The +sinking fund for this year was $37,931,643.55, which, deducted from +the amount applied to the redemption of bonds, left an excess of +$35,972,973.86 over the amount actually required for the year. +Compared with the previous fiscal year, the receipts for 1880 +increased $62,629,438.23. The increase of expenditures over the +previous year was $25,190,360.48. I estimated that the receipts +over expenditures for the fiscal year ending June 30, 1881, would +be $50,198,115.52. + +During the period from 1874 to 1879 the United States had failed +to pay on the public debt $87,317,569.21, that being the deficiency +of the sum fixed by law to be paid during those years for sinking +fund. Deducting from this sum the amount paid in excess for the +fiscal year 1880, there was a balance still due on account of the +sinking fund of about $50,000,000. This would be met by the +estimated surplus of receipts over expenditures during the fiscal +year, 1881, thus making good the whole amount of the sinking fund +as required by law. + +The estimated revenue over expenditures for the fiscal year ending +June 30, 1862, including the sinking fund, was $48,000,000. + +Upon this favorable statement I recommended to Congress that instead +of applying this surplus revenue, accruing after the current fiscal +year, to the extinction of the debt, taxes be repealed or modified +to the extent of such surplus. A large portion of the surplus of +revenue over expenditures was caused by the reduction of the rate +of interest and the payment on the principal of the public debt. +The reduction of annual interest caused by the refunding since +March 1, 1877, was $14,290,453.50, and the saving of annual interest +resulting from the payment of the principal of the public debt +since that date was $6,144,737.50. The interest was likely to be +still further reduced during the following year, to an amount +estimated at $12,000,000, by the funding of the bonds. To the +extent of this annual saving, amounting to $32,000,000, the public +expenditures would be permanently diminished. + +In view of this statement, I recommended that all taxes imposed by +the internal revenue laws, other than those on bank circulation +and on spirits, tobacco and beer, be repealed. I urged that the +tax on state banks should be maintained, not for purposes of revenue, +but as a check upon the renewal of a system of local state paper +money, which, as it would be issued under varying state laws, would +necessarily differ as to conditions, terms and security, and could +not, from its diversity, be guarded against counterfeiting, and +would, at best, have but a limited circulation. + +The public debt which became redeemable on and after the 1st of +July, 1881, amounted to $687,350,000. I recommended that to redeem +these bonds there should be issued treasury notes running from one +to ten years, which could be paid off by the application of the +sinking fund as they matured. Such treasury notes would have formed +a popular security always available to the holder as they could +have been readily converted into money when needed for other +investment or business. They would have been in such form and +denominations as to furnish a convenient investment for the small +savings of the people, and fill the place designed by the ten dollar +refunding certificates authorized by the act of February 26, 1879. +I stated my belief that with the then state of the money market a +sufficient amount of treasury notes, bearing an annual interest of +three per cent., could be sold to meet a considerable portion of +the maturing bonds. + +Congress did not pass such a law as I recommended, but the plan +adopted and executed by my successor, Mr. Windom, was the best that +could have been devised under existing law, resulting in a very +large reduction of the amount paid for interest yearly. He allowed +the holders of the maturing bonds to retain them at the pleasure +of the government, with interest at the rate of three and a half +per cent. + +I recited the action of the department under the resumption act, +but this has already been fully described by me. In respect to +the United States notes I said: + +"United States notes are now, in form, security, and convenience, +the best circulating medium known. The objection is made that they +are issued by the government, and that it is not the business of +the government to furnish paper money, but only to coin money. +The answer is, that the government had to borrow money, and is +still in debt. The United States note, to the extent that it is +willingly taken by the people, and can, beyond question, be maintained +at par in coin, is the least burdensome form of debt. The loss of +interest in maintaining the resumption fund, and the cost of printing +and engraving the present amount of United States notes, is less +than one-half the interest on an equal sum of four per cent. bonds. +The public thus saves over seven million dollars of annual interest, +and secures a safe and convenient medium of exchange, and has the +assurance that a sufficient reserve in coin will be retained in +the treasury beyond the temptation of diminution, such as always +attends reserves held by banks." + +I expressed the opinion that the existing system of currency, the +substantial features of which were a limited amount of United States +notes (with or without the legal tender quality), promptly redeemable +in coin, with ample reserves in coin and power if necessary to +purchase coin with bonds, supplemented by the circulating notes of +national banks issued upon conditions that would guarantee their +absolute security and prompt redemption, all based on coin of equal +value, and generally distributed throughout the country, was the +best system ever devised, and more free from objection than any +other, combining the only safe standard with convenience for +circulation and security and equality of value. + +After a statement of the amount of standard silver dollars issued +under existing law, I described the measures adopted to facilitate +the general distribution and circulation of those coins, and the +great expense incurred by the United States in transporting them. +With all these efforts it was found difficult to maintain in +circulation more than thirty-five per cent. of the amount then +coined. While, at special seasons of the year and for special +purposes, this coin was in demand, mainly in the south, it returned +to the treasury, and its reissue involved an expense for transportation +at an average rate of one-third of one per cent. each time. Unlike +gold coin or United States notes, it did not, to the same extent, +form a part of the permanent circulation, everywhere acceptable, +and, when flowing into the treasury, easily paid out with little +or no cost of transportation. At a later period, when the amount +of silver dollars had largely increased, the department was never +able to maintain in circulation more then $60,000,000. + +For the reasons stated I earnestly recommended that the further +compulsory coinage of the silver dollar be suspended, or, as an +alternative, that the number of grains of silver in the dollar be +increased so as to make it equal in market value to the gold dollar, +and that its coinage be left as other coinage to the Secretary of +the Treasury, or the Director of the Mint, to depend upon the demand +for it by the public for convenient circulation. After a statement +of the great cost of the coinage of these dollars, I recommended +that Congress confine its action to the suspension of the coinage +of the silver dollar, and await negotiations with foreign powers +for the adoption of an international ratio. I expressed the +conviction that it was for the interest of the United States, as +the chief producer of silver, to recognize the great change that +had occurred in the relative market value of silver and gold in +the chief marts of the world, to adopt a ratio for coinage based +upon market value, and to conform all existing coinage to that +ratio, while maintaining the gold eagle of our coinage at its +present weight and fineness. + +I called attention, also, to the tariff as it then existed. It +was a compilation of laws passed during many succeeding years, and +to meet the necessities of the government from time to time. These +laws furnished the greater part of our revenue, and incidentally +protected and diversified home manufactures. The general principle +upon which they were founded was believed to be salutary. No marked +or sudden change, which would tend to destroy or injure domestic +industries built up upon faith in the stability of existing laws, +should be made in them. I recommended that _ad valorem_ duties +should be converted into specific duties as far as practicable, +and that articles which did not compete with domestic industries, +and yielded but a small amount of revenue, should be added to the +free list. I urged the importance of stability in the rates imposed +on spirits, tobacco and fermented liquors. These articles were +regarded by all governments as proper subjects of taxation. Any +reduction in the rates imposed a heavy loss to the owner of the +stock on hand, while an increase operated as a bounty to such owner. + +During that year, the excess of exports over imports amounted to +$167,683,912. The aggregate exports amounted to $835,638,658, an +increase over the previous year of $125,199,217. + +The usual statement of the operations of the different bureaus of +the department was made, and, in closing my last annual report as +Secretary of the Treasury, I said: + +"The secretary takes pleasure in bearing testimony to the general +fidelity and ability of the officers and employees of this department. +As a rule they have, by experience and attention to duty, become +almost indispensable to the public service. The larger portion of +them have been in the department more than ten years, and several +have risen by their efficiency from the lowest-grade clerks to high +positions. In some cases their duties are technical and difficult, +requiring the utmost accuracy; in others, they must be trusted with +great sums, where the slightest ground for suspicion would involve +their ruin; in others, they must act judicially upon legal questions +affecting large private and public interests, as to which their +decisions are practically final. It is a just subject of congratulation +that, during the last year, there has been among these officers no +instance of fraud, defalcation, or gross neglect of duty. The +department is a well organized and well conducted business office, +depending mainly for its success upon the integrity and fidelity +of the heads of bureaus and chiefs of division. The secretary has, +therefore, deemed it both wise and just to retain and reward the +services of tried and faithful officers and clerks. + +"During the last twenty years the business of this department has +been greatly increased, and its efficiency and stability greatly +improved. This improvement is due to the continuance during that +period of the same general policy and the consequent absence of +sweeping changes in the public service; to the fostering of merit +by the retention and promotion of trained and capable men; and to +the growth of the wholesome conviction in all quarters that training, +no less than intelligence, is indispensable to good service. Great +harm would come to the public interests should the fruits of this +experience be lost, by whatever means the loss occurred. To protect +not only the public service, but the people, from such a disaster, +the secretary renews the recommendation made in a former report, +that provision be made for a tenure of office for a fixed period, +for removal only for cause, and for some increase of pay for long +and faithful service." + +The chief measure of importance, aside from the current appropriation +bills, acted upon during that session of Congress was a bill to +facilitate the refunding of the national debt. It was pending +without action during the two preceding sessions, but was taken up +in the early part of the third session. As the bill was originally +reported, by Mr. Fernando Wood, from the committee of ways and +means of the House of Representatives, it provided that in lieu of +the bonds authorized by the refunding act of July 14, 1870, bearing +five, four and a half, and four per cent. interest, bonds bearing +interest at the rate of three and a half per cent. to the amount +of $500,000,000, redeemable at the pleasure of the United States, +and also notes to the amount of $200,000,000, bearing interest at +the rate of three and a half per cent., redeemable at the pleasure +of the United States after two years and payable in ten years, be +issued. + +The Secretary of the Treasury was authorized to issue any of these +bonds or notes for any of the bonds of the United States, as they +became redeemable, par for par. The bill further provided that +the three and a half per cents. should be the only bonds receivable +as security for national bank circulation. + +Had this bill passed, as introduced, any time before the 4th of +March, 1881, it would have saved the United States enormous sums of +money and would have greatly strengthened the public credit. It +was in harmony with the recommendations made by the President and +myself in our annual reports. It was called up in the House of +Representatives for definite action on the 14th of December, 1880, +when those reports were before them. Instead of this action +amendments of the wildest character were offered, and the committee +which reported the bill acquiesced in radical changes, which made +the execution of the law, if passed, practically impossible. 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. +Discussion was continued in the House and radical amendments were +made until the 19th of January, 1881, when the bill, greatly changed, +passed the House of Representatives. It was taken up in the Senate +on the 15th of February. Mr. Bayard made a very fair statement of +the terms and objects of the bill in an elaborate speech, from +which I quote the following paragraphs: + +"In little more than sixty days from this date a loan of the United +States, bearing five per cent. interest, and amounting to $469,651,050, +will, at the option of the government, become payable. On the 30th +day of June next, two other loans, each bearing six per cent., +the first for $145,786,500, and the other $57,787,250, will also +mature at the option of the government. These facts are stated in +the last report of the Secretary of the Treasury, and will be found +on page ten of his report of last December. He has informed us +that the surplus revenue accruing prior to the 1st of July, 1881, +will amount to about fifty million dollars, and can and will be +applied in part to the extinguishment of that debt. Bonds maturing +on the 31st of December last were paid out of the accruing revenues. +So that there will remain the sum of $637,350,000, to be provided +for and funded at the option of the government, at such rate of +interest as may be deemed advisable by Congress and can practicably +be obtained. + +"The sums that we are dealing with are enormous, affecting the +welfare of every branch of our country's industry and of our entire +people. The opportunity for reducing the rate of interest upon +this enormous sum, and, not only that, but of placing the national +debt more under the control of the government in regard to future +payments, is now before us. The opportunity for doing this upon +favorable terms should not be lost, and the only question before +us, as legislators, is how we can best and most practically take +advantage of the hour." + +The bill as modified by the committee of the Senate would have +enabled the treasury department to enter at once on the refunding +of the public debt, and, in the then state of the money market, +there would have been no doubt of the ready sale of the bonds and +notes provided for and the redemption of the five and six per cent. +bonds outstanding. The Senate, however, after long debates, +disagreed to the amendments of the committee, and in substance +passed the bill as it came from the House. The few amendments made +were agreed to by the House, and the bill passed and was sent to +the President on the 1st of March. On the 3rd of March it was +returned by the President with a statement of his objections to +its passage. These were based chiefly on the provision which +required the banks to deposit in the treasury, as security for +their circulating notes, bonds bearing three per cent. interest, +which, in his judgment, was an insufficient security. His message +was as follows: + +"To the House of Representatives:--Having considered the bill +entitled 'An act to facilitate the refunding of the national debt,' +I am constrained to return it to the House of Representatives, in +which it originated, with the following statement of my objections +to its passage. + +"The imperative necessity for prompt action, and the pressure of +public duties in this closing week of my term of office, compel me +to refrain from any attempt to make a full and satisfactory +presentation of the objections to the bill. + +"The importance of the passage, at the present session of Congress, +of a suitable measure for the refunding of the national debt, which +is about to mature, is generally recognized. It has been urged +upon the attention of Congress by the Secretary of the Treasury +and in my last annual message. If successfully accomplished, it +will secure a large decrease in the annual interest payment of the +nation; and I earnestly recommend, if the bill before me shall +fail, that another measure for this purpose be adopted before the +present Congress adjourns. + +"While in my opinion it would be wise to authorize the Secretary +of the Treasury, in his discretion, to offer, to the public, bonds +bearing three and a half per cent. interest in aid of refunding, +I should not deem it my duty to interpose my constitutional objection +to the passage of the present bill if it did not contain, in its +fifth section, provisions which, in my judgment, seriously impair +the value and tend to the destruction of the present national +banking system of the country. This system has now been in operation +almost twenty years. No safer or more beneficial banking system +was ever established. Its advantages as a business are free to +all who have the necessary capital. It furnishes a currency to +the public which, for convenience and the security of the bill- +holder, has probably never been equaled by that of any other banking +system. Its notes are secured by the deposit with the government +of the interest-bearing bonds of the United States. + +"The section of the bill before me which relates to the national +banking system, and to which objection is made, is not an essential +part of a refunding measure. It is as follows: + +'Sec. 5. From and after the 1st day of July, 1881, the three per +cent. bonds authorized by the first section of this act shall be +the only bonds receivable as security for national bank circulation, +or as security for the safekeeping and prompt payment of the public +money deposited with such banks; but when any such bonds deposited +for the purposes aforesaid shall be designated for purchase or +redemption by the Secretary of the Treasury, the banking association +depositing the same shall have the right to substitute other issues +of the bonds of the United States in lieu thereof: _Provided_, +That no bond upon which interest has ceased shall be accepted or +shall be continued on deposit as security for circulation or for +the safe-keeping of the public money; and in case bonds so deposited +should not be withdrawn, as provided by law, within thirty days +after interest has ceased thereon, the banking association depositing +the same shall be subject to the liabilities and proceedings on +the part of the comptroller provided for in section 5234 of the +Revised Statutes of the United States: _And provided further_, +That section 4 of the act of June 20, 1874, entitled: "An act +fixing the amount of United States notes, providing for a redistribution +of the national bank currency, and for other purposes," be, and +the same is hereby, repealed; and sections 5159 and 5160 of the +Revised Statutes of the United States be, and the same are hereby, +re-enacted.' + +"Under this section it is obvious that no additional banks will +hereafter be organized, except possibly in a few cities or localities +where the prevailing rates of interest in ordinary business are +extremely low. No new banks can be organized, and no increase of +the capital of existing banks can be obtained, except by the purchase +and deposit of three per cent. bonds. No other bonds of the United +States can be used for the purpose. The one thousand millions of +other bonds recently issued by the United States, and bearing a +higher rate of interest than three per cent., and therefore a better +security for the bill-holder, cannot, after the 1st of July next, +be received as security for bank circulation. This is a radical +change in the banking law. It takes from the banks the right they +have heretofore had under the law to purchase and deposit, as +security for their circulation, any of the bonds issued by the +United States, and deprives the bill-holder of the best security +which the banks are able to give, by requiring them to deposit +bonds having the least value of any bonds issued by the government. + +"The average rate of taxation of capital employed in banking is +more than double the rate of taxation upon capital employed in +other legitimate business. Under these circumstances, to amend +the banking law so as to deprive the banks of the privilege of +securing their notes by the most valuable bonds issued by the +government will, it is believed, in a large part of the country, +be a practical prohibition of the organization of new banks, and +prevent the existing banks from enlarging their capital. The +national banking system, if continued at all, will be a monopoly +in the hands of those already engaged in it, who may purchase +government bonds bearing a more favorable rate of interest than +the three per cent. bonds prior to next July. + +"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. + +"Our country, after a long period of business depression, has just +entered upon a career of unexampled prosperity. + +"The withdrawal of the currency from circulation of the national +banks, and then enforced winding up of the banks in consequence, +would inevitably bring a serious embarrassment and disaster to the +business of the country. Banks of issue are essential instruments +of modern commerce. If the present efficient and admirable system +of banking is broken down, it will inevitably be followed by a +recurrence to other and inferior methods of banking. Any measure +looking to such a result will be a disturbing element in our +financial system. It will destroy confidence and surely check the +growing prosperity of the country. + +"Believing that a measure for refunding the national debt is not +necessarily connected with the national banking law, and that any +refunding act would defeat its own object, if it imperiled the +national banking system, or seriously impaired its usefulness; and +convinced that section 5 of the bill before me would, if it should +become a law, work great harm, I herewith return the bill to the +House of Representatives for that further consideration which is +provided for in the constitution. + + "Rutherford B. Hayes. +"Executive mansion, March 3, 1881." + +Preceding this message, during the last week in February, there +was a serious disturbance in the money market, especially in +connection with the national banks, caused by a fear that the bill +would become a law. Appeals were made to me to furnish relief. +All I could do was to purchase $10,000,000 of bonds to be paid from +an overflowing treasury, but the veto of the President settled the +fate of the bill. + + +CHAPTER XLII. +ELECTED TO THE SENATE FOR THE FOURTH TIME. +Blaine Appointed Secretary of State--Withdrawal of Governor Foster +as a Senatorial Candidate--I Am Again Elected to My Old Position +to Succeed Allen G. Thurman--My Visit to Columbus to Return Thanks +to the Legislature--Address to Boston Merchants on Finances--Windom +Recommended to Succeed Me as Secretary of the Treasury--Personal +Characteristics of Garfield--How He Differed from President Hayes +--The Latter's Successful Administration--My One Day out of Office +in Over Forty Years--Long Animosity of Don Piatt and His Change of +Opinion in 1881--Mahone's Power in the Senate--Windom's Success in +the Treasury--The Conkling-Platt Controversy with the President +Over New York Appointments. + +In the latter part of November, 1880, General Garfield came to +Washington and called upon Mr. Blaine, who, it was understood, was +to be Secretary of State. Garfield came to my house directly from +Blaine's and informed me that he had tendered that office to Blaine +and that it was accepted. He said that Blaine thought it would +not be politic to continue me as Secretary of the Treasury, as it +would be regarded as an unfriendly discrimination by other members +of Hayes' cabinet. I promptly replied that I agreed with the +opinion of Blaine, and was a candidate for the Senate. It was then +understood that Garfield was committed to Foster for the vacancy +in the Senate, but this he denied, and, whatever might have been +his preference, I am convinced he took no part in the subsequent +contest. + +On the 16th of December, Thomas A. Cowgill, speaker of the House +of Representatives, of Ohio, wrote a note to Governor Foster advising +his withdrawal "for harmony in our counsels and unity in our action." +On the next day, after advising with leading Republicans, Foster, +in a manly letter, declined further to be a candidate for Senator. + +Prior to the withdrawal of Foster I received a note from General +Garfield from Mentor, Ohio, under date of December 15, 1880, in +which he said: "I am glad to see that the unpleasant matters +between yourself and Governor Foster have been so happily adjusted, +and I am quite sure that a little further understanding will remove +all dangers of a personal contest, which might disturb the harmony +of the party in Ohio." + +I subsequently received the following note from Garfield: + + "Mentor, O., December 22, 1880. +"My Dear Sir:--Yours of the 20th inst. came duly to hand. I +appreciate what you say in reference to personal and Ohio appointments. +The case of Swaim is so exceptional that I hope it will not be +taken as a precedent for what is to come. I am greatly gratified +at the happy turn which the relations between Foster and yourself +have taken. + +"I will forward my declination of the senatorship in time to reach +the general assembly on the first day of its session. + +"I hope you will not fail to visit me on your trip to Ohio. Mrs. +Garfield joins me in the hope that Mrs. Sherman will accompany you. + + "Very truly yours, + "J. A. Garfield. +"Hon. John Sherman, Washington, D. C." + +In response to this and former requests I visited General Garfield +at his residence at Mentor, and discussed with him a multitude of +subjects that he suggested, among them the selection of his cabinet, +and the public questions pending in Congress. + +The proceedings in the Republican caucus, on the 11th of January, +1881, soon after the Ohio legislature met, as narrated in the public +press at the time, were exceedingly flattering. General Jones, of +Delaware, made the nominating speech, reciting at considerable +length, and with high praise, my previous public service. Peter +Hitchcock, a distinguished member, seconded the nomination with +another complimentary speech. It was supposed that Judge W. H. +West, a leading lawyer and citizen, would be placed in nomination, +but his spokesman, Judge Walker, no doubt with the approval of +Judge West, moved that my nomination be made unanimous, which was +done. Upon being notified of this I sent the following telegram: + + "Washington, D. C., January 11, 1881. +"Hon. J. Scott, Chairman. + +"Please convey to the Republican members of the two houses of the +general assembly my heartfelt thanks for their unanimous nomination +for the position of United States Senator. No words can express +my sense of grateful obligation to the people of Ohio for their +long continued partiality. I can assure you that, if elected, I +will, with diligence and fidelity, do my utmost to discharge the +duties assigned me. + + "John Sherman." + +On the 18th of January I was duly elected Senator as successor of +Allen G. Thurman, who received the Democratic vote. + +In accordance with an old custom in Ohio I went to Columbus on the +20th of January to return my thanks to the legislature, and was +received in the senate chamber by the two houses. I was escorted +to a chair with Governor Foster on my right and Governor Dennison +on my left, Governor Foster presiding. I was introduced by Governor +Foster in a generous and eloquent speech, closing as follows: + +"Now, gentlemen, a year ago at this time we were here present to +meet General Garfield, to greet him as United States Senator, and +to listen to his words of thanks for the great honor conferred upon +him. We are met to-night for the purpose of greeting the Senator +elected to-day, and to listen to his words of thanks for the great +honor conferred upon him. This gentleman has been in public life +twenty-six years. For six years he served as a Member of Congress +from the Mansfield district, with credit and with distinction. +Thrice elected a United States Senator before, for sixteen years +he occupied the position of United States Senator, ever in the +front rank of the intellectual giants composing that body. Called +hence to be Secretary of the Treasury, this distinguished gentleman +has filled that place with honor. He has been at all times the +friend of resumption and of the prosperity of the people. To him, +perhaps, more than to any other one man, is due the resumption of +specie payments and the prosperity of this people to-day. As a +great financier he stands as a peer with Hamilton, with Chase. +Gentlemen, you have selected wisely and well. I now have the +pleasure of presenting John Sherman, Senator-elect from the State +of Ohio." + +To this I responded, in part, as follows: + +"Gentlemen, Senators, Members of the General Assembly:--My first +duty is to return to you my grateful thanks for the high honor you +have conferred upon me in selecting me for the fourth time a Member +of the Senate of the United States. Four years ago I assumed a +somewhat different office. And now, having been honored by you by +being transferred to the position formerly occupied by me, I feel +very much like a traveler who has made a long journey into a far +distant country and who is returning home in safety and honor. +The place I now occupy has been one of great embarrassment and +difficulty. I have been away from the people of my native state, +with but scarce a few fleeting, short visits, and have lost the +acquaintances I have had with so many of you, and have not been +able to form new acquaintances among you. I find among the members +of the general assembly but comparatively few of those whom I knew +in the olden times. + +"I assumed the duties of the office of which I speak under +circumstances of great embarrassment. I was held up before the +public for a long time as one who was pursuing a policy that brought +woes unnumbered--greater than befell the Greeks between Achilles +and Agamemnon. All the evils that fell upon society in the United +States during the period, all the grave distress, was simply +attributed to me as a fault. I was compelled to say 'No' a thousand +times where I would gladly have said 'Yes.' I was compelled to +decline the advice of men honestly given for a good purpose, because +in my judgment that advice would not promote the public good. And +now, having been elected by you under those adverse circumstances, +I feel my heart overflowing with gratitude, and have no words with +which to utter my thanks. I am glad, however, of the assurance +you have given me by the unanimous nomination of my Republican +friends, and by the courtesy, kindness and forbearance of my +adversaries. + +"I am glad to know and feel the assurance that you now believe +that, under the trying circumstances, I did the best I could to +advance the common interest of our common country. + +"And I am glad to approve the votes that were given by my Democratic +fellow-citizens here in the contest yesterday and to-day. If any +man could be chosen from the State of Ohio to advocate in the +American Senate the principles of the Democratic party, there is +no man in Ohio, or in the United States, more deserving of that +honor than Allen G. Thurman. For many years he and I served together +as representatives of opposing parties. We, each with the vigor +and power we could, endeavored to impress our views upon the public, +to carry out the line of policy to which our political friends were +devoted. And in all that time no words of unkindness, no words of +asperity, have passed between us. We never brought Ohio quarrels +before the Senate of the United States, and always found that +honesty and ability were entirely consistent with gentlemanly +courtesy between political opponents. + +"And I wish also to return my grateful acknowledgments to Governor +Foster for the kindly language with which he has introduced me to +you, and to many distinguished citizens of Ohio who, by their kind +and generous forbearance, have enabled you, without division, to +send a Senator to the Congress of the United States without a +quarrel, a contest or a struggle, and I feel under obligations to +the gentleman who has introduced me largely for this distinguished +honor and courtesy. + +"I can only say then, in conclusion, fellow-citizens, that I am +glad that the opportunity of the office you have given me will +enable me to come back here home to Ohio to cultivate again the +relations I had of old. It is one of the happiest thoughts that +comes to me in consequence of your election that I will be able to +live again among you and to be one of you, and I trust in time to +overcome the notion that has sprung up within two or three years +that I am a human iceberg, dead to all human sympathies. I hope +you will enable me to overcome that difficulty. That you will +receive me kindly, and I think I will show you, if you doubt it, +that I have a heart to acknowledge gratitude--a heart that feels +for others, and willing to alleviate where I can all the evils to +which men and women are subject. I again thank you from the bottom +of my heart." + +Among the many incidents in my life I recall this as one of the +happiest, when the bitterness and strife of political contests were +laid aside and kindness and charity took their place. I am glad +to say that the same friendly relations that existed between Senator +Thurman and myself have always been maintained with each of my +colleagues, without distinction of party. + +Early in January I had accepted an invitation of the merchants of +Boston to attend the annual dinner of their association on the 31st +of that month. While the dinner was the stated object, yet I knew +that the speeches to be made were the real cause of the meeting. +These were to be made by Governor Long, Stewart L. Woodford and +others, real orators, while I was expected to talk to them about +money, debt and taxes. I met their wishes by a careful statement +of the mode of refunding, or, to define the word, the process of +reducing the burden of the public debt by reducing the rate of +interest. I stated at length the measures executed by Hamilton, +Gallatin and others, in paying in full the Revolutionary debt and +that created by the War of 1812, and those adopted in recent times. +The mode at each period was similar, but the amount of recent +refundings was twenty times greater than the national debt at the +beginning of the government, and our surplus revenue for that one +year just past would have paid the debt of the United States at +the close of the Revolutionary War. In all stages of our history +we have preserved the public faith by the honest discharge of every +obligation. Long, Woodford and others made eloquent speeches, and, +on the whole, the "dinner" was a pronounced success. + +After my return to Washington, Garfield continued to write me +freely, especially about the selection of the Secretary of the +Treasury. In a note dated February 14 he gave me the names of a +number of prominent men and his impressions about them, but I do +not feel at liberty to insert it. In my answer of the date of +February 16, after expressing my opinion of those named, I said: + +"Since our last conversation in Mentor I have turned this important +matter over and over again in my mind, and I drift back pretty +nearly to the opinion I then expressed, that, assuming that a +western man is to be appointed, my judgment would lead me to select, +first, Windom. . . . He is certainly a man of high character, of +pleasant manners, free from any political affiliations that would +be offensive to you, on good terms with all, yet a man of decision." + +I knew Garfield well. From his early advent in 1861 in the +legislature of Ohio, when I was a candidate for the Senate, to the +date of his death, I had every opportunity to study his character. +He was a large, well developed, handsome man, with a pleasing +address and a natural gift for oratory. Many of his speeches were +models of eloquence. These qualities naturally made him popular. +But his will power was not equal to his personal magnetism. He +easily changed his mind, and honestly veered from one impulse to +another. This, I think, will be admitted by his warmest friends. +During the trying period between his election and inauguration his +opinions wavered, but Blaine, having similar personal qualities, +but a stronger will, gained a powerful influence with him. When +I proposed to him to be a delegate at large to the Chicago convention, +he no doubt meant in good faith to support my nomination. When +his own nomination seemed probable he acquiesced in, and perhaps +contributed to it, but after his election he was chiefly guided by +his brilliant Secretary of State. + +There was a striking contrast between the personal qualities of +Garfield and Hayes. Hayes was a modest man, but a very able one. +He had none of the brilliant qualities of his successor, but his +judgment was always sound, and his opinion, when once formed, was +stable and consistent. He was a graduate of Kenyon college and +the law school at Cambridge. He had held several local offices in +Cincinnati, had served with high credit in the Union army, and had +attained the rank of major general by conspicuous heroism in battle. +He had been twice elected a Member of Congress from Cincinnati and +three times as Governor of Ohio, and in 1876 was elected President +of the United States. The contest which was ended by his inauguration +has already been referred to. During his entire term, our official +and personal relations were not only cordial, but as close and +intimate as that of brothers could be. I never took an important +step in the process of resumption and refunding, though the law +vested the execution of these measures in my office, without +consulting him. Yet, while expressing his opinion, he said this +business must be conducted by me, and that I was responsible. + +Early in his administration we formed the habit of taking long +drives on each Sunday afternoon, in the environs of Washington. +He was a regular attendant with Mrs. Hayes, every Sunday morning, +at the Methodist Episcopal church, of which she was a member. This +duty being done we felt justified in seeking the seclusion of the +country for long talks about current measures and policy. Each of +us was prepared with a memorandum of queries. My coachman, who +has been with me for twenty years, could neither heed nor hear. +We did not invade any of the departments of the government outside +of the treasury and his official functions as President. This +exchange of opinion was of service to the public, and gave to each +of us the benefit of an impartial opinion from the other. + +Among the multitude of public men I have met I have known no one +who held a higher sense of his duty to his country, and more +faithfully discharged that duty, than President Hayes. He came +into his great office with the prejudice of a powerful party against +him, caused by a close and disputed election. This was unjust to +him, for the decision was made by a tribunal created mainly by its +representatives. He went out of office at the close of his term +with the hearty respect of the American people, and his administration +may be placed as among the most beneficial and satisfactory in the +history of the republic. + +When near the close of his term, he gave the usual dinner to the +members of the outgoing and the incoming cabinets. It was purely +an official dinner, but Hayes said that there were two gentlemen +present who were not in office. We looked around to see who the +unhappy two were, and found they were Garfield and myself. Garfield +had not yet become President and I had resigned as secretary the +day before. This happened to be the only day that I was not in +public office since March 4, 1855. + +On the 3rd of March I delivered to the President my resignation, +as follows: + + 'Washington, March 3. +"Hon. R. B. Hayes, President United States. + +"My Dear Sir:--Having been elected a Member of the Senate of the +United States, I have the honor to resign the office of Secretary +of the Treasury, to take effect this day. In thus severing our +official relations, I avail myself of the opportunity to express +my grateful appreciation and heartfelt thanks for the support and +assistance you have uniformly given me in the discharge of the +duties of that office. I shall ever cherish with pleasant memories +my friendly association with you as a member of your cabinet, and +shall follow you in your retirement from your great office with my +best wishes and highest regards. + + "Very truly your friend, + "John Sherman." + +During my service as Secretary of the Treasury I had been arraigned +in every issue of the Sunday "Capital," a newspaper published in +Washington, in the severest terms of denunciation, by Don Piatt, +the owner of the paper. He was a brilliant but erratic writer, +formerly a member of the Ohio legislature and a native of that +state. I believed that his animosity to me grew out of my re- +election to the Senate in 1865, when General Schenck, who was warmly +supported by Piatt, was my competitor. Schenck and I always +maintained friendly relations. He served his district long and +faithfully in the House of Representatives, was a brilliant debater, +had the power of condensing a statement or argument in the fewest +possible words, and uttering them with effective force. Next to +Mr. Corwin, and in some respects superior to him, Schenck was ranked +as the ablest Member of the House of Representatives from Ohio +during his period of active life, from 1840 to his death, at +Washington, D. C., March 23, 1890. Schenck freely forgave me for +his defeat, but Piatt never did. + +At the close of my term as secretary, much to my surprise, Piatt +wrote and published in his paper an article, a portion of which I +trust I will be pardoned for inserting here: + +"When John Sherman took the treasury, in March, 1877, it was plain +that the _piece de resistance_ of his administration would be the +experiment of the resumption act, which John, as chairman of the +Senate finance committee, had elaborated two years before, and +which was then just coming upon the threshold of practical test. +The question at issue was whether resumption of specie payments, +after eighteen years of suspension, could be accomplished through +the operation of laws of Congress, which, if not absolutely in +conflict with the laws of political economy, were, to every visible +appearance, several years in advance of them. Of course, the +primary effect of the appreciation of our paper towards par with +the standard of coin was the enhancement of the purchasing power +of the circulating medium. That made it hard to pay debts which +had been contracted on low scales of purchasing power. That which +had been bought for a dollar worth sixty cents, must be paid for +with a dollar worth eighty, ninety, or a hundred cents, according +to the date on which the contract matured. Of course, such a +proceedings created an awful squeeze. Many men, struggling under +loads of debt, found the weight of their obligations growing upon +them faster than their power to meet, and they succumbed. + +"For all this John Sherman was blamed. He was named 'The Wrecker,' +and the maledictions poured upon his head during the years 1877 +and 1878 could not be measured. Every day the columns of the press +recorded new failures, and every failure added to the directory of +John Sherman's maledictors. But the man persevered. And now, +looking back over the record of those two years, with all their +stifled ambitions and ruined hopes, the grim resolution with which +John, deafening his ears to the cry of distress from every quarter, +kept his eye fixed upon the single object of his endeavor, seems +hardly human--certainly not humane. And yet there are few reasoning +men to be found now ready to deny that it was for the best, and, +taken all in all, a benefaction to the country; one of those sad +cases, in fact, where it is necessary to be cruel in order to be +kind. + +"We were not a supporter of John Sherman's policy at any period of +its crucial test. We did not believe that his gigantic experiment +could be brought to a successful conclusion. The absurd currency +theories which were from time to time set up in antagonism to his +policy never impressed us; our disbelief was based upon our fear +that the commercial and industrial wreckage, consequent upon an +increase of forty per cent. in the purchasing power of money within +three years, would be infinitely greater than it turned out to be, +and, so being, would overwhelm the country in one common ruin. +But we were mistaken. John Sherman was right. And it is but common +frankness to say of him, even as one would give the devil his due, +that he builded wiser than we knew--possibly wiser than he knew +himself. At all events, John builded wisely. + +"He took the treasury at a period when it was little more than a +great national bank of discount, with rates varying from day to +day; the coin standard a commodity of speculation on Wall street; +the credit of the government a football in the markets of the world; +and our bonds begging favor of European capitalists. He leaves it +what it ought to be--a treasury pure and simple, making no discounts, +offering no concessions, asking no favors; the board that once +speculated in coin as a commodity abolished, doors closed by reason +of occupation gone; the credit of our government at the head of +the list of Christendom; since we are launching at par a three per +cent. consol, which even England, banking house of the universe, +has never yet been able to maintain steadily above 97. + +"This is no small achievement to stand as the record of four years. +It is an achievement that entitles the man who accomplished it to +rank as one of the four great American financiers who really deserve +the title--Robert Morris, Albert Gallatin, Salmon P. Chase, and +John Sherman. + +"We take off our hat to John; not because we like him personally, +but because we admire the force of character, the power of intellect +and the courage of conviction that enabled him to face his +difficulties, surmount his obstacles and overcome the resistance +he met. + +"The treasury he took up in 1877 was a battle ground. The treasury +he resigns to his successor in 1881 is a well-ordered machine of +red tape and routine, requiring for its future successful administration +little else than mediocrity, method and _laissez faire_. As we +said before, we take off our hat to John. He is not a magnetic +man like Blaine, not a lovable man like our poor, dear friend Matt. +Carpenter, not a brilliant man like our Lamar; not like any of +these--warm of temperament, captivating of presence or dazzling of +intellectual luminosity; but he is a great man, strong in the cold, +steadfast nerve that he inherits from his ancestor, and respectable +in the symmetry of an intellect which, like a marble masterpiece, +leaves nothing to regret except the thought that its perfection +excludes the blemish of a soul. John Sherman will figure creditably +in history. Mankind soon forgets the sentimental acrimony of the +moment, provoked by the suffering of harsh processes, and remembers +only the grand results. Thus John Sherman will figure in history +as the man who resumed specie payments; and in that the visiting +statesman of 1876 and the wrecker of 1877-78 will be forgotten. +We congratulate John upon his translation into the history of +success as heartily as if we had been his supporter in the midst +of all his tribulations. Bully for John." + +George Bancroft, the eminent historian, lived in Washington for +many years during the latter part of his life. His house was always +an attractive and hospitable one. I had many interesting conversations +with him, mainly on historical subjects. Both of us carefully +eschewed politics, for to the end of his life, I think, he always +regarded himself as a Democrat. I insert an autograph letter from +him, written at the age of eighty-one. + + "1623 H Street, } + "Washington, D. C., February 22, 1881.} +"My Dear Mr. Sherman:--I thank you very much for the complete +statement, you were very good to send me, of the time and amounts +of payments made to Washington as President. Congratulating you +on the high state of the credit of the United States, I remain, +ever, dear Mr. Secretary, + + "Very truly yours, + "Geo. Bancroft." + +Before closing my recollections of the administration of President +Hayes I ought to express my high appreciation of my colleagues in +his cabinet. It was throughout his term a happy family. I do not +recall a single incident that disturbed the sincere friendship of +its members, nor any clashing of opinions that produced discord or +contention. Neither interfered with the duties of the other. The +true rule was acted upon that the head of each department should +submit to the President his view of any important question that +arose in his department. If the President wished the opinion of +his cabinet on any question, he submitted it to the cabinet but +took the responsibility of deciding it after hearing their opinions. +It was the habit of each head of a department to present any +questions of general interest in his department, but as a rule he +decided it with the approbation of the President. Evarts was always +genial and witty, McCrary was an excellent Secretary of War. He +was sensible, industrious and prudent. Thompson was a charming +old gentleman of pleasing manners and address, a good advocate and +an eloquent orator, who had filled many positions of honor and +trust. The President regretted his resignation, to engage in the +abortive scheme of De Lesseps to construct the Panama Canal. +Attorney General Devens was a good lawyer and judge and an accomplished +gentleman. He frequently assisted me in my resumption and refunding +operations, and, fortunately for me, he agreed with me in my opinions +as to the legality and expedience of the measures adopted. General +Carl Schurz was a brilliant and able man and discharged the duties +of Secretary of the Interior with ability. I had known him in the +Senate as an admirable and eloquent debater, but in the cabinet he +was industrious and practical and heartily supported the policy of +the President and was highly esteemed by him. Key, of Tennessee, +was selected as a moderate Democrat to represent the south. This +was an experiment in cabinet making, cabinets being usually composed +of members of the same party as the President, but Key proved to +be a good and popular officer. The two vacancies that occurred by +the resignations of McCrary and Thompson were acceptably filled by +Governor Ramsey, of Minnesota, and Goff, of West Virginia. Each +of these gentlemen contributed to the success of Hayes' administration, +and each of the heartily sympathized with, and supported the measures +of, the treasury department. + +On the 4th day of March, 1881, I attended the special session of +the Senate, called by President Hayes, and took the oath prescribed +by law. In conformity with the usages of the Senate, I lost my +priority on the committee on finance by the interregnum in my +service, but was made chairman of the committee on the library, +and a member of the committees on finance, rules, and privileges +and elections. Mr. Morrill, of Vermont, became chairman of the +committee on finance, and, by the courtesy of the other members, +I was placed next to him on that committee. Our relations since +our entrance together, in 1854, into the House of Representatives +had been so intimate and cordial that it made no practical difference +which of us sat at the head of the table. When I recalled the +facts that in both the Senate and House of Representatives I had +been chairman of the financial committee, and Mr. Morrill a member, +that my service in the treasury department did not impair my fitness +as chairman, but rather improved it, and that under precisely the +same conditions I had restored to Mr. Fessenden his former position, +I felt piqued, but my feelings did not extend to Mr. Morrill, for +whom I had the highest respect and confidence, and with whom I +rarely differed on any public question. He is now the Nestor of +the Senate, wonderfully vigorous in mind and body. + +The chief subject of political interest in this session was the +attitude of William Mahone, a Senator from Virginia. He had been +a distinguished officer in the Confederate army, was a small man +physically, but of wonderful vitality, of undoubted courage and +tenacity. He had broken from the Democratic party, of which he +had been a member, and had been elected a Senator on local issues +in Virginia, arising chiefly out of the debt of that state. When +he entered the Senate, that body was so equally divided that his +vote would determine which party should have the control of its +organization. He quickly made his choice. He was viciously assailed +by Senator Hill, of Georgia, who, not by name but by plain inference, +charged Mahone with disgracing the commission he held. The reply +of Mahone was dramatic and magnetic. His long hair, his peculiar +dress and person, and his bold and aggressive language, attracted +the attention and sympathy of the Senate and the galleries. He +opened his brief speech as follows: + +"Mr. president, the Senator has assumed not only to be the custodian +here of the Democratic party of this nation; but he has dared to +assert his right to speak for a constituency that I have the +privilege, the proud and honorable privilege on this floor, of +representing without his assent, without the assent of such Democracy +as he speaks for. I owe them, sir, I owe you [addressing Mr. Hill], +and those for whom you undertake to speak, nothing in this chamber. +I came here, sir, as a Virginian, to represent my people, not to +represent the Democracy for which you stand. I come with as proud +a claim to represent that people as you to represent the people of +Georgia, won on field where I have vied with Georgians whom I +commanded and others in the cause of my people and of their section +in the late unhappy contest, but, thank God, for the peace and good +of the country that contest is over, and as one of those who engaged +in it, and who has neither here nor elsewhere any apology to make +for the part taken, I am here by my humble efforts to bring peace +to this whole country, peace and good will between the sections, +not here as a partisan, not here to represent the Bourbonism which +has done so much injury to my section of the country." + +The debate that followed soon settled the position of General +Mahone. He acted with the Republican party. During the whole of +this session, which extended to May 20, little was done except to +debate Virginia politics, of which Mahone was the center. His vote +was decisive of nearly every question presented. I took part in +the long debate on the election of officers of the Senate, mainly +with Senator Bayard. My sympathy was with Mahone, as I felt that, +whatever his view of the debt question in Virginia was, he was +right on the reconstruction of the south and in opposition to the +bitter sectionalism of the Democratic party in that state. In +replying to Mr. Bayard I said I agreed with him in the principle +that the majority must rule. I claimed, however, that when the +action of a minority went beyond a reasonable delay it became +revolution and, in a word, was worse than revolution, it was treason; +that under the senate rules, and in conformity with them, this +government might be as absolutely destroyed as the southern +Confederates would have destroyed it if they had succeeded; that +the rules were intended to be construed with reason and judgment; +that the minority had certain rights to interpose dilatory motions +in order to delay and weary out the will of the majority, but when +it went beyond that limit it entered upon dangerous ground; that +the simple question was whether the Senate should elect its officers +by a majority vote or whether the minority should force the retention +of those then in office. The session closed without electing +officers of the Senate, and was in substance a debating society +doing nothing but talk and acting upon presidential appointments. + +The cabinet of President Garfield, as finally selected, was a good +one and was promptly confirmed. Mr. Blaine, for the head of it, +was determined upon early after the election, but the other members +were not decided upon until near the inauguration. Mr. Windom +certainly proved himself a very able and accomplished Secretary of +the Treasury during the short period of his tenure. As I held +myself in a large measure responsible for his appointment, I took +a great interest in his success. He conferred with me freely about +the best mode of refunding the large amount of bonds that became +due on or before the 1st of July. Congress having failed to pass +any law to provide for the refunding of this debt, he resorted to +an ingenious expedient, which answered the purpose of refunding. +Under a plan which was his own device there were called in, for +absolute payment on July 1, 1881, about $200,000,000 of bonds, +mainly the six per cent. bonds of 1861, but permission was given +to the holders of the bonds to have them continued at the pleasure +of the government, with interest at the rate of three and a half +per cent. per annum, provided the holder should so request, and +the bonds should be received at the treasury for that purpose on +or before the 10th of May, 1881. The plan proved entirely +satisfactory. There were presented in due time, for continuance +at three and a half per cent., the amount of $178,055,150 of bonds, +leaving to be paid off from surplus revenue $24,211,400, for which +the treasury had ample resources. Having succeeded in disposing +of the six per cent. bonds, he gave notice that the coupon five +per cent. bonds of the loans of July 14, 1870, and January 20, +1871, would be paid on August 12, 1881, with a like privilege of +continuing the bonds at three and a half per cent. to such of the +holders who might present them for that purpose on or before July +1, 1881. At the same time the treasurer offered to receive for +continuance any of the uncalled registered bonds of that loan to +an amount not exceeding $250,000,000, the remainder of the loan +being reserved with a view to its payment from the surplus revenues. + +The annual saving in interest by the continuance of these bonds +amounted to $10,473,952.25. I heartily approved this plan. In a +reported interview of the 14th of April I said: + +"I see no difficulty in fully carrying out Secretary Windom's +policy, as far as developed. He has ample means for reducing the +interest on the five and six per cent. bonds. He can pay off all +those who wish to be paid in money, in strict accordance with the +terms of these bonds, leaving the mass of them at three and a half +per cent. interest, payable at the pleasure of Congress. This is +not only for the public interest, but is on the clear line of his +power and duty. Indeed, I think it is better for the country than +any refunding plan that would be carried out under a new law. The +old securities remain as redeemable bonds, bearing as low a rate +of interest as any new bonds would bear, which could be now sold +at par, and they are more readily payable with surplus revenue than +any new bonds could be. If it should appear next session that a +three per cent. bond would sell at par, that can be authorized. +Secretary Windom is cautious and careful, and has done the very +best for the public that is possible." + +"Do you think the public will be likely to respond largely to his +efforts?" + +"Yes, I have no doubt about it, unless an unforseen or sudden +revulsion occurs." + +Mr. Windom demonstrated his ability, not only in the plan of +refunding the debt, but in the general conduct and management of +his department. + +The administration of Garfield encountered the same difficulty as +that of Hayes in the selection of officers in the State of New +York. The question was whether appointments in New York should be +made by the President or by a Senator from that state. E. A. +Merritt, collector of the port of New York, having been nominated +for consul general at London, William H. Robertson was nominated +to the Senate in his place. When the Senate considered this +nomination Senator Conkling and his colleague, Senator Platt, +opposed it, not for unfitness, but for the reason that they had +not been consulted in this matter, and that the selection was an +insult and in violation of pledges given Conkling by the President. +When this opposition was known, the President withdrew previous +appointments from that state, in order that the Senate might act +upon the nomination of collector and definitely determine whether +he or the Senators should appoint United States officers in New +York. Finding the nomination of Robertson would be confirmed, both +Senators resigned on the 16th of May, and made their appeal to the +legislature of New York for re-election. If they had been returned +to the Senate, the President would have been powerless to appoint +anyone in New York without consulting the Senators, practically +transferring to them his constitutional power. Fortunately for +the country the legislature of New York elected E. C. Lapham and +Warner Miller in the places of Conkling and Platt. + +How far, if at all, the excitement of this contest led to the +assassination of Garfield by Guiteau cannot be known; yet, this +tragedy occurring soon after the contest, the popular mind connected +the two events, and the horror and detestation of the murder +emphasized the rejection of Conkling and Platt. + +The action of the President and of the New York legislature +contributed to check the interference of Senators in appointments +to office, which had grown up, under what is called "the courtesy +of the Senate," to be a serious abuse. The nomination of Stanley +Matthews, eminently fitted for the office of justice of the Supreme +Court, was confirmed by a majority of only one vote, the objections +to him being chiefly as did not relate to his fitness or qualifications +for that great office, but grew out of his intimate relations with +Hayes. + + +CHAPTER XLIII. +ASSASSINATION OF GARFIELD AND EVENTS FOLLOWING. +I Return to Mansfield for a Brief Period of Rest--Selected as +Presiding Officer of the Ohio State Convention--My Address to the +Delegates Indorsing Garfield and Governor Foster--Kenyon College +Confers on Me the Degree of Doctor of Laws--News of the Assassination +of the President--How He Differed from Blaine--Visit of General +Sherman--Reception by Old Soldiers--My Trip to Yellowstone Park-- +Speechmaking at Salt Lake City--Visit to Virginia City--Placer +Mining in Montana--The Western Hunter Who Was Lost in a "St. Louis +Cańon"--Sunday in Yellowstone Park--Geysers in the Upper Basin-- +Rolling Stones Down the Valley--Return Home--Opening of the Ohio +Campaign--Death of Garfield. + +After the adjournment of the Senate I went to Mansfield, and enjoyed +the comfort and quiet of home life after the turbulence and anxiety +of four years of severe labor as Secretary of the Treasury. The +state convention was to be held at Cleveland on the 18th of June. +There were signs of disaffection growing out of the events of the +past year, which threatened to disturb the harmony of the Republican +party. I determined to do all I could to allay this, and for that +purpose to attend the convention as a delegate and promote, as far +as I could, the renomination of Governor Foster. When the convention +met I was selected as its president, and in my speech I took care +to express my support of Governor Foster and the administration of +Garfield. + +I said that Governor Foster was entitled to renomination, and I +believed would receive it at the hands of the convention, that his +able and earnest canvass two years before had laid the foundation +for a great victory, culminating in the election of Garfield as +President. I called attention to the achievements of the Republican +party during the past twenty-five years in war and in peace. I +warned the convention that there was no room in Ohio, or in this +country, for a "boss," or a leader who commands and dictates, and +said: "The man who aspires to it had better make his will beforehand." +I congratulated the convention upon the auspicious opening of the +administration of President Garfield and said: + +"We know office-seeking is undoubtedly the proper pursuit of mankind. +There may be some disappointments, because there are fewer places +to fill than men willing to fill them. But, in the main, the +general principles and policy of this administration are in harmony +with the aspirations of the Republican party. The financial policy +of the last administration has been supplemented by the reduction +of the rate of interest on $500,000,000 of the public securities +from five and six per cent. to three and a half per cent. This +wise measure has been carefully and most skillfully managed by +Secretary Windom, an Ohio boy. . . . They are saving $15,000,000 +a year, and now the debt which frightened brave men fifteen years +ago has melted away like snow before a summer sun, no longer +frightening the timid. And now the tax on whisky will pay the +interest on the public debt. + +"The people of Ohio are satisfied with the administration, I believe, +as it now stands. I believe I can say, in advance of the resolution +that has been, or that will be, offered, that President Garfield +has the emphatic approval of the Republicans of Ohio in the course +he has pursued thus far. Let him further advance the public credit; +let him punish all who do wrong; let him give us an administration +pure, simple and republican, worthy of a nation like ours, and we +will send him our approval twice over again. But, we have something +to do in this task. We have got to emphasize our approval by +indorsing this administration in the election of the Republican +ticket this fall. This is no child's play. We know of the good +work of the Republican party, that it has a powerful constituency +behind it, we dare not do anything wrong, or they will push us from +our positions, if we do not behave ourselves. Let us, then, do +our part; work as Republicans of Ohio know how to work, and victory +will perch upon our banners." + +The proceedings of the convention, from beginning to end, were +conducted without any serious division or excitement. The threatened +outbreak against Foster did not occur. Upon the close of my speech +I announced that the first business in order was the nomination of +a candidate for governor. Foster was nominated by acclamation, +without a dissenting voice. The rest of the ticket was composed +of popular candidates, and an exceptionally good platform was +adopted. + +In the latter part of June, I attended alumni day of Kenyon college, +in company with ex-President Hayes and many leading men of Ohio. +Delano Hall, the gift of Columbus Delano, and Hubbard Hall were +dedicated with appropriate services, conducted by Bishop Bedell +and President Bodine. On this occasion the degree of Doctor of +Laws was conferred upon me, and I told the faculty how earnestly +I had wished to graduate in their college, and why I could not do +so. Frank Hurd and Mr. Hayes, both graduates, made interesting +addresses. This college was founded mainly upon liberal contributions +to Bishop Chase, by Lord Kenyon and other Englishmen. Its governing +power was the Episcopal church. It has had many vicissitudes of +prosperity and depression, but has never realized the hopes of its +founders. It is one of the colleges of Ohio, excellent in their +way, but if their limited resources had been combined in one great +university, free from sectarian influence, the result would, in my +opinion, have been much better for the youth of Ohio. + +During this period I was busy putting my country house in order. +I was literally "repairing the fences." The absence, during four +years, of Mrs. Sherman and myself made a great change in the +condition of my house, grounds and farm. The work of restoration +was a pleasant one, and I was relieved from appeals for appointments, +from the infinite details of an exacting office, and still more +from the grave responsibility of dealing with vast sums, in which, +however careful I might be, and free from fault, I was subject to +imputations and innuendoes by every writer who disapproved of my +policy. + +I was arranging for a trip to Yellowstone Park, was receiving +visitors from abroad daily, and mixing with my neighbors and fellow- +townsmen, congratulating myself upon a period of rest and recreation, +when, on the 2nd of July, I received from General Sherman the +announcement, by telegram, that Garfield had been shot by Guiteau, +and that the wound was dangerous, and perhaps fatal. The full +details of this crime were soon given. I started to go to Washington, +but returned when advised that I could be of no service, but +continued to receive from General Sherman frequent bulletins. The +position of the fatal bullet could not be ascertained, and Garfield +lingered in suffering until the 19th of September, when he died. + +The death of Garfield, by the hand of a half crazy crank, created +a profound impression throughout the civilized world. To rise to +such a height as he had attained, and then to become the victim of +such a wretch, was a calamity that excited profound sympathy for +the President, and unusual detestation for the murderer. The +personal qualities of Garfield have been already mentioned. After +his untimely death his enemies became silent. At this distance of +time we can properly fix his place in the calendar of those who +have gone before. In many respects, Garfield was like Blaine, but +in his personal intercourse with men, and in the power of will, he +was not the equal of Blaine, while, in style of oratory, in imagery +and expression, he was superior to him. Both were eminent in their +day and generation. They were my juniors about eight years, yet +they lived long enough to permanently stamp their names upon the +history of the country. + +On the 20th of July General Sherman arrived at Mansfield as my +visitor. There was much curiosity to see him, especially by soldiers +who had served under his command. I invited them to call at my +house. On the evening of the 21st a large procession of soldiers +and citizens, headed by the American band, marched to my grounds. +The general and I met them at the portico, when Colonel Fink stepped +forward and made a brief speech, saying: + +"General Sherman:--We, the old soldiers of the war for the Union, +of Richland county and its surroundings, together with our citizens, +have come to-day to pay our respects to you. + +"We come, with feelings of profound regard, to see and welcome you, +our great strategic war chief, and the hero fo the glorious 'March +to the sea.' + +"We greet you as the general and leader of all the armies of our +country; we greet you as the gallant defender of the flag; we greet +you as the brother of our beloved Senator; we greet you as an Ohio +man, but, above all, we have come to greet and honor you for your +worth; the man that you are." + +General Sherman replied briefly, and as this is the first speech +I ever heard him make I insert it here. He said: + +"Fellow-Soldiers of the late war and Fellow-Citizens:--It gives me +pleasure to meet you here to-night, in this beautiful grove; in +this inclosure, at my own brother's home. I am glad to meet you, +his neighbors and his friends. The situation is a novel one to +me, and I am deeply moved by it. As I look over you I do not +recognize the faces that I used to know, and when riding about your +city to-day, I only found some of the names I then knew--your +Hedges, your Parkers, and your Purdys; for the rest I had to go to +your cemetery, over yonder, and read their names on the tombstones. +But you have them still among you in their children and their +grandchildren. + +"I cannot distinguish to-night who are and who are not soldiers, +but let me say to you, soldiers, I am very glad to meet you again, +after so many years, in this time of peace, when yet the recollection +of the hardships of war is a bond of comradeship among us. We +fought, not for ourselves alone, but for those who are to come +after us. The dear old flag we carried through the storms of many +battles, ready to die, if need be, that it might still wave over +the government of our fathers. + +"But this is not the time nor place to recount the events of the +past. I could not now do the subject justice if I should try. I +am not accustomed to addressing mixed audiences. My brother here +knows how to do that better than I, and he understands you better. +But I want to say to you: Teach your children to honor the flag, +to respect the laws, and love and understand our institutions, and +our glorious country will be safe with them. + +"My friends, I heartily appreciate this splendid tribute of your +friendship and respect. I thank you. Good night." + +At the conclusion of General Sherman's speech he was cheered +vociferously, after which calls were made for me. I made a few +remarks and announced that the general would be glad to take them +all by the hand, and as he did so they passed into the dining-room, +where refreshments awaited them. The greetings and hand-shaking +lasted over an hour. In the meantime the "soldier boys" and others +were enjoying the good cheer within. + +On the 22nd of July General Sherman, with Colonel Bacon, left for +Clyde, Ohio, and I at the same time started for Chicago, there to +be joined by Justice Strong, late of the Supreme Court, who had +recently retired at the age of 70, the artist Bierstadt, and Alfred +M. Hoyt, of New York, for a trip to Yellowstone Park. We had +arranged for this trip months before. Our plan was a simple one, +to go at our convenience by the Union Pacific, the only railroad +route then open, to Salt Lake City, and thence to Virginia City, +thence through the Yellowstone Park, and by another route to return +to Virginia City, and thence home. We were to take the usual route +and means of conveyance until we arrived at Virginia City. From +there we were to have an escort, to and through the park, of ten +United States soldiers from Fort Ellis. + +The party met at Chicago and proceeded to Ogden and Salt Lake City. +At the latter place we casually met several gentlemen of our +acquaintance, especially General Harrison, Eli Murray, Governor of +the Territory of Utah, and General McCook, who commanded the post +in Salt Lake City. We spent a day or two in visiting the post and +city, and found a great improvement since my former visit. In the +evening we were serenaded by a band from the post, and several +gentlemen were called out for speeches by the gathering crowd. I +had been met during my stay there by many people who claimed to +hail from Ohio, so that I began to think it was quite an Ohio +settlement. In the few remarks I made at the serenade I eulogized +Ohio and spoke of the number of Ohio people I had met in that city. +General McCook was called out, and as he was from Ohio he had +something to say for that state. General Harrison was called upon, +and he said that while he lived in Indiana he was born in Ohio and +was proud of it. General Murray was next called for and he said +that while he was born in Kentucky he lived so close to Ohio that +he could throw a stone into the state. So much had been said about +Ohio that Judge Strong took offense. They called upon him to +address the crowd from the balcony, but he would not. Finally, +upon my urging him to speak, he rushed forward and said: "I want +you to understand distinctly that I am not from Ohio, I was not +born in Ohio, I never lived in Ohio, and don't want to hear anything +more about Ohio!" This was vociferously cheered, and the old +gentleman closed with very proper remarks about love for the Union +instead of for the state. + +Since that time I have visited Salt Lake City and have always been +impressed with the great value of that region, not only for its +mineral wealth, but for the possibility of great agricultural +development with proper irrigation. + +During our stay we bathed in Salt Lake. The water was so impregnated +with salt that our bodies floated upon the surface and there was +no danger of drowning. The history of Salt Lake City, which owes +its existence and wonderful development and prosperity to Brigham +young, is like an improbable romance. I have already mentioned +Young, having met him on my former visit with Thomas A. Scott. In +the nine years that had elapsed the city had nearly doubled its +population. Pure water was flowing in all the streets and the city +looked fresh and clean. The air, at an elevation of 4,000 feet +above the sea, was exhilarating. From Salt Lake City we returned +to Ogden, and on, or about, the 1st of August took passage on the +Utah Northern railroad. Our route lay along the Beaver River, +passing Eagle Rock, thence through Beaver Cańon into Idaho, thence +through a mountainous range, at about an elevation of 6,800 feet, +into Montana as far as the frontier town of Dillon. There we left +the cars and took wagons to Virginia City, Montana, where we were +to meet our military escort and arrange for horses and mules to +carry us and our camp outfit into the park. + +Our drive from Dillon to Virginia City was very picturesque, skirting +the Ruby mountains and crossing the Stinking Water River. Virginia +City was at one time the center and thriving business place of the +large population that was drawn to that valley by the very rich +placer gold mines there, discovered between 1865 and 1870. It is +estimated that $90,000,000 of gold was taken from that stream that +runs through a valley about eighteen miles long. The city had many +substantial buildings, a large brick courthouse, five churches, +many large business stores, dwellings and hotels. At the time we +were there the placer mining had been abandoned, except by some +Chinamen who were washing over the tailings and making good wages +at it; and the population had been reduced from 20,000 people to +1,400. Here we spent Sunday. It was a gala day for the saloons, +ranchmen and cowboys, typical of how Sunday is observed in all +these mining and ranch towns. We met here, as everywhere in Montana, +wandering gold-seekers who explored from mountain to valley in +search of the precious metal, often making exaggerated statements +in regard to the undeveloped wealth not yet discovered, with stories +about gold which were never realized. It was the common belief +that the gold found in the placer mines must have been washed from +the mountains near by, and seekers for gold were looking for the +source of the gold field in such mountains, but it was never +discovered. Mines were discovered in other parts of Montana, but +none about Virginia City. + +On Monday we met Lieutenant Swigert with a dozen troopers from Fort +Ellis, who, by orders from the war department, were to escort us +through Yellowstone Park. Here we obtained horses and mules for +our own use and for carrying our packs, camp traps, etc. When all +was ready we started for our camping in the wilderness. Our first +day's march was about twenty miles, when we went into camp. We +proceeded each day about this same rate, following along the valley +of the Madison River until we reached the park. When we were there +the park was truly a wilderness, with no evidences of civilization. +Game was very abundant. Elk, deer, antelope and bear were plentiful, +and we had no difficulty in getting all the fresh meat we wanted. + +Among our employees was a man by the name of Beam, a typical hunter. +He had spent most of his life in the mountains. He started out +every morning in advance of us and was always sure to be at the +agreed camping ground when he arrived. I asked him at one time if +he was not afraid of being lost. He said no, he could not be lost +for he could go to the top of any hill or mountain and determine +his course. He said he had never been lost but once, and that was +in St. Louis; when he went out from the hotel he was in a "cańon" +and he could not tell which way to go. + +We arrived in the lower geyser basin on Saturday. The next day +(Sunday) was bright and beautiful. We knew that our revered +companion, Justice Strong, was a religious man and we felt that he +would have scruples about traveling on Sunday. Still, we wished +to move on that afternoon to the upper geyser basin, but were at +a loss how to approach him with the Sunday question. It was left +to me to confer with him. Before doing so I arranged to have +everything in order for a proper observance of the Sabbath day. +I found after inquiry that there was no Bible in the large party, +but that the officer in command of the troops had an Episcopal +prayer book. I went with that to Justice Strong and suggested that +we should have religious services, to which he readily assented. +I gave him the prayer book and he carefully marked out a selection +of scripture and prayers, saying that he was not familiar with the +book, but it contained ample material for a proper religious service. +We gathered all the soldiers, wagoners and cowboys, including the +hunter, belonging to our party. Justice Strong was furnished a +box to sit on in front of his tent, and the rest of us stood or +lay in scattered groups on the ground around him. He read from +the prayer book the passages he had selected, making together a +most impressive and interesting service. Many of those who gathered +around him had not shared in religious services for years, and were +duly impressed with them. After this was over and we had taken +dinner, I suggested to him that there were so many horses that the +teamsters complained that the grass was not sufficient for them to +remain there all day, and that I thought it would be well for us +to move to the upper geyser basin a few miles away, to which he at +once assented. I throughly sympathized with his feelings in this +matter, but thought that under the circumstances our action was +excusable and he doubtless saw through the scheme. + +During our visit to the geysers in the upper basin, we encamped +near "Old Faithful." From this camp we could reach, by an easy +walk, nearly all the grand geysers of this wonderful basin. I have +sometimes undertaken to describe these geysers, but never could +convey my idea of their grandeur. Bierstadt made a sketch of "Old +Faithful," showing Mr. Hoyt and myself in the foreground, with the +geyser in full action. He subsequently expanded this picture into +a painting, which I now own and greatly prize. + +We resumed our march, passing by Sulphur Mountain, the Devil's +Caldron, mud geysers, the "paint pots," and through this marvelous +land, to the shores of Yellowstone Lake. We were amazed at the +beautiful scenery that stretched before us. This large lake is in +the midst of snow-clad mountains; its only supply of water is from +the melting snows and ice that feed the upper Yellowstone River. +Its elevation is 7,741 feet above the sea. The ranges and peaks +of snow-clad mountains surrounding the lake, the silence and majesty +of the scene, were awe-inspiring--the only life apparent being the +flocks of pelicans. We fished successfully in this mountain lake, +but of the fishes caught many were spoiled by worms that had eaten +into and remained in them. + +We visited the great falls of the Yellowstone, the immense and +wonderful cańon so often described and illustrated. We remained +encamped near this cańon a whole day, and amused ourselves chiefly +in exploring its wonderful depths and in rolling stones from +projecting points down into the valley. They generally bounded +from point to point until we could hear them dashing into the waters +far below. + +Our march down the valley of the Yellowstone was very interesting. +The military escort and Justice Strong did not pass over Mount +Washburn, but went by a nearer and easier route along the valley +to the next camping ground. Bierstadt, Hoyt and I, with a guide, +rode on horseback to the top of Mount Washburn, a long, difficult +and somewhat dangerous feat, but we were amply repaid by the splendid +view before us. We crossed the mountain at an elevation of 12,000 +feet, in the region of perpetual snow. From its summit one of the +grandest and most extensive views of mountain scenery lay before +and around us, range after range of snowpeaks stretching away for +one hundred miles. To the south was the valley of Wind River and +Stinking Water, and encircling these, the Shoshone and Wind River +ranges with their lines of perpetual snow, the Bear Tooth Mountain +and Pilot Knob and Index Peak, the great landmarks of the Rockies. +The ascent was fatiguing and almost exhausting. We remained on +the mountain two or three hours for needed rest. When we arrived +in the camp about sundown I was so fatigued that I was utterly +unable to dismount from my horse, and was lifted bodily from it by +the soldiers. + +We continued our journey through grassy parks until we reached +Lower Falls. From there we continued until we arrived at Mammoth +Hot Springs, where there was a house, the first sign of civilization +we had seen since we began our journeyings in the park. From here +we took our way to Fort Ellis and Bozeman, where we left our escort +and horses and mules. We returned from here to Virginia City, and +at Dillon took cars for Ogden and thence for home, where I arrived +about the 25th of August. + +During my absence in the Yellowstone Park we had frequent bulletins +in respect to President Garfield, sometimes hopeful but generally +despondent. When I returned it was generally supposed that he +could not recover, but might linger for weeks or months. The public +sympathy excited for him suspended by common consent all political +meetings. As the Ohio election was to occur on the second Tuesday +of October, George K. Nash, chairman of the Republican state +committee, having charge of the canvass, made a number of appointments +for several gentlemen during September. Among them was one for me +to speak in Mansfield, on the 17th of that month, in aid of the +election of Foster and the Republican ticket. Preparations were +made and the meeting was actually convened on the afternoon of that +day, but, as the bulletins from Elberton indicated that Garfield +might die at any moment, I declined to speak. More favorable +advices coming, however, I was urged by the committee to speak to +Wooster on Monday evening, September 19, and consented with some +hesitation. In opening my speech I referred to the condition of +the President and my reluctance to speak; I said: + +"Fellow-Citizens:--I am requested by the Republican state committee +to make a political speech to you to-night, in opening here the +usual discussion that precedes the election of a governor and other +state officers. If I felt at liberty to be guided by my own +feelings, I would, in view of the present condition of the President +of the United States, forego all political discussion at this time. + +"The President is the victim of a crime committed without excuse +or palliation, in a time of profound peace and prosperity, not +aimed at him as an individual, but at him as the President of the +United States. It was a political crime, made with the view of +changing, by assassination, the President chosen by you. It has +excited, throughout the civilized world, the most profound horror. +The President has suffered for more than two months, and is still +suffering, from wounds inflicted by an assassin. His life still +hangs by a thread. The anxious inquiry comes up morning, noon and +night, from a whole people, with fervid, earnest prayers for his +recovery. + +"Under the shadow of this misfortune, I do not feel like speaking, +and I know you do not feel like hearing a political wrangle. It +is but just to say that the members of all parties, with scarce an +exception, Democrats as well as Republicans, share in sympathy with +the President and his family, and in detestation of the crime and +the criminal, and the evidence of this sympathy tends to make +political dispute irksome and out of place." + +I then entered into a general discussion of the issues of the +campaign. Soon after the close of my speech I received intelligence +of the death of Garfield, and at once revoked all my appointments, +and by common consent both parties withdrew their meetings. Thus +mine was the only speech made in the campaign. I immediately went +to Washington with ex-President Hayes to attend the funeral, and +accompanied the committee to the burial at Cleveland. The sympathy +for Garfield in his sad fate was universal and sincere. The +inauguration of President Arthur immediately followed, and with it +an entire change of the cabinet. + + +CHAPTER XLIV. +BEGINNING OF ARTHUR'S ADMINISTRATION. +Special Session of the Senate Convened by the President--Abuse of +Me by Newspapers and Discharged Employees--Charges Concerning +Disbursement of the Contingent Fund--My Resolution in the Senate-- +Secretary Windom's Letter Accompanying the Meline Report--Investigation +and Complete Exoneration--Arthur's Message to Congress in December +--Joint Resolutions on the Death of Garfield--Blaine's Tribute to +His Former Chief--Credit of the United States at "High Water Mark" +--Bill Introduced Providing for the Issuing of Three per Cent. +Bonds--Corporate Existence of National Banks Extended--Bill to +Reduce Internal Revenue Taxes--Tax on Playing Cards--Democratic +Victory in Ohio. + +On the 23rd of September, 1881, President Arthur convened the Senate +to meet in special session on the 10th of October. Mr. Bayard was +elected its president _pro tempore_. On the 13th of October, when +the Senate was full, David Davis, of Illinois, was elected president +_pro tempore_, and the usual thanks were given to Mr. Bayard, as +the retiring president _pro tempore_, for the dignity and impartiality +with which he had discharged the duties of his office. + +At this period of my life I was the object of more abuse and +vituperation than ever before or since. The fact that the new +administration of Arthur was not friendly to me was no doubt the +partial cause of this abuse. The intense bitterness manifested by +certain papers, and by discharged employees, indicated the origin +of most of the petty charges against me. One of these employees +stated that he had been detailed for work on a house built by me +in 1880. This was easily answered by the fact that the house was +built under contract with a leading builder and the cost was paid +to him. I neither knew the man nor ever heard of him since. + +I was blamed for certain irregularities in the disbursement of the +contingent fund of the treasury, although the accounts of that fund +were by law approved by the chief clerk of the department and were +settled by the accounting officers without ever coming under my +supervision, and the disbursement had been made by a custodian who +was in the department before I entered it. My wife was more annoyed +than I with the petty charges which she knew were false, but which +I did not dignify by denying. + +Mr. Windom, soon after his appointment as secretary, directed an +inquiry to be made by officers of the treasury department into +these abuses and it was charged that he, at my request, had suppressed +this inquiry. The "Commercial Advertiser," on the 11th of October, +alleged that I was as much shocked by the disclosures as my successor, +Mr. Windom; that I did not want any further publicity given to +them, and was desirous that Mr. Windom should not allow the report +to get into the public prints. I, therefore, on the 14th of October, +offered in the Senate this resolution: + +"_Resolved_, That the Secretary of the Treasury is hereby directed +to transmit to the Senate a copy of the report of James F. Meline +and others, made to the treasury department during the recess of +the Senate, and of any papers received by him based upon such +report." + +In offering the resolution, after reading the article in the +"Commercial Advertiser," I said: + +"The writer of this paragraph is very much mistaken in supposing +that I have in any way sought or wished to withhold from the public +the report referred to. I neither have nor will I oppose or delay +any investigation of the treasury department while I was its chief +officer. The only wish I have is to see that every officer accused +of improper conduct shall have a fair chance to defend himself, +and then he must stand or fall according to the rectitude or wrong +of his conduct. + +"The only doubt I have in calling for this report now is the fact +that Mr. Windom did not order its publication lest injustice might +be done to worthy and faithful officers who had no opportunity to +cross-examine witnesses or answer charges made against them. I +have no doubt that he either has given or will give them this +opportunity. At all events the Senate can do so. I, therefore, +offer this resolution and hope the Senate will promptly pass it." + +Mr. Edmunds objected to the resolution as being unnecessary, and +under the rules of the Senate it went over. I called it up on the +18th of October, when Mr. Farley, of California, asked that it be +postponed a few days. On the 22nd I again called it up, when Mr. +Farley stated that he could not see what Congress had to do with +the report of such a commission appointed by the Secretary of the +Treasury, and asked me for an explanation. In reply I said: + +"I stated, on introducing this resolution, that the investigation +was one of a character not usually communicated to Congress, but +that certain public prints had contained unfounded imputations +against several officers of the government, and that there was +something in the report which reflected on a Member of this body +formerly a cabinet officer. Under the circumstances, as I was +plainly the person referred to, having been Secretary of the Treasury +at the time stated, I deemed it my right, as well as my duty to my +fellow-Senators, to call out this information. If the statements +contained in the papers be true, they are proper matters for the +Senate to examine in every sense. + +"Mr. president, I have been accustomed to newspaper abuse all my +life and very rarely notice it. This is probably the first time +in my political life that I have ever read to this body a newspaper +attack upon me or upon anyone else; but when any paper or any man +impugns in the slightest degree my official integrity I intend to +have it investigated, and I wish it tested not only by the law but +by the strictest rules of personal honor. + +"For this reason, when this imputation is made by a leading and +prominent paper, that there is on the files of the treasury department +a document which reflects upon me, I think it right that it should +be published to the world, and then the Senate can investigate it +with the power to send for persons and papers. That is the only +reason why I offered the resolution, and not so much in my own +defense as in defense of those accused in this document. If the +accusation is true it is the duty of the Senate to examine into +the matter." + +After some further discussion the resolution was adopted, and on +the same day Mr. Windom transmitted the report of James F. Meline, +and other officers of the treasury department, made to the department +during the recess of the Senate. His letter is as follows: + + "Treasury Department, Office of the Secretary,} + "Washington, D. C., October 22, 1881. } +"Sir:--I am in receipt of the resolution of the Senate of the 21st +instant, as follows: + +'_Resolved_, That the Secretary of the Treasury is hereby directed +to transmit to the Senate a copy of the report of James F. Meline +and others, made to the treasury department during the recess of +the Senate, and of any papers received by him based upon such +report.' + +"In reply thereto I have the honor to transmit herewith a copy of +the report called for, with the accompanying statements of Mr. J. +K. Upton and J. T. Power, who occupied the position of chief clerk +and _ex officio_ superintendent of the treasury building for the +period covered by the report. + +"Soon after assuming the duties of Secretary of the Treasury my +attention was called to alleged abuses in the disbursement of the +contingent fund of the department, which was under the immediate +charge of a custodian, and the general supervision of the chief +clerk of the department, and I appointed a committee to look into +the matter, as has been the custom of the department in such cases. +The law, somewhat conflicting in its terms in relation to the +relative duties of these two officers, will be found fully set +forth in the report. On considering this report I am convinced +that certain irregularities and abuses existed in this branch of +the service, and as I had some doubts as to the legality of the +appointment of a custodian I abolished that office June 18, 1881, +and by general order of July 1, 1881, reorganized the office. + +"A copy of this order is herewith transmitted, from which it will +appear that all the changes necessary to a complete and thorough +correction of the irregularities and abuses referred to have been +adopted. + +"It was my intention, as my more pressing public duties would +permit, to have pursued this general policy in other branches of +the treasury, by the appointment of competent committees to collect +the necessary data on which to base proper action to secure economy +and promote the best interests of the public service, but the +assassination of the President suspended further action in this +direction. + + "Very respectfully, + "William Windom, Secretary. +"Hon. David Davis, President of the Senate." + +On the 26th I offered a resolution as follows: + +"_Resolved_, That the committee on appropriations of the Senate +be, and they are hereby, authorized and directed to investigate +the accounts for the expenditure of the appropriations for contingent +or other expenses of the several executive departments, including +the methods of making such disbursements, the character and +disposition of the purchases made, and the employment of labor paid +from such appropriations, and to report on the subject at as early +a day as practicable, and whether any further legislation is +necessary to secure the proper disbursement of such appropriations; +and that the committee have leave to send for persons and papers, +and have leave to sit during the recess of the Senate." + +This led to a thorough investigation into the disbursement of the +contingent fund of the treasury department, the report of which, +accompanied by the testimony, covering over 1,200 printed pages, +was submitted to the Senate on the 15th of March, 1882. This +examination was chiefly conducted by Francis M. Cockrell, of +Missouri, a Senator distinguished for his fairness and thoroughness. +The report was concurred in unanimously by the committee on +appropriations. It showed that certain irregularities had entered +into the management of the fund and that certain improper entries +had been made in the account, but that only a trifling loss had +resulted to the government therefrom. + +I was before the committee and stated that I never had any knowledge +of any wrongdoing in the matter until it had been brought out by +the investigation. The report fairly and fully relieved me from +the false accusations made against me. It said: "Touching the +statements of Senator Sherman, that he had no knowledge of its +irregularities, etc., established by the evidence, no witness states +that Mr. Sherman knew that any funds of the treasury department +were ever used for his individual benefit or otherwise misapplied." + +I could not have asked for a more favorable ending of the matter. + +At the close of the examination the committee addressed to the head +of each department of Arthur's administration an inquiry whether +the laws then in force provided ample safeguards for the faithful +expenditure of its contingent appropriation, and each of them +replied that no change in existing law was necessary. The committee +concurred in the views of the heads of the departments, and suggested +that they keep a constant supervision over the acts of their +subordinates; that the storekeeper of the treasury department should +be required to give a bond, and that careful inventories of the +property of each department should be made, and that annual reports +of the expenditures from the contingent fund should be made by each +department at the commencement of each regular session. While this +investigation imposed a severe labor upon the committee on +appropriations, it had a beneficial effect in securing a more +careful control over the contingent expenses of the departments, +and it silenced the imputations and innuendoes aimed at me. + +In regard to these accusations, I no doubt exhibited more resentment +and gave them more importance than they deserved. I felt that, as +Secretary of the Treasury, I had rendered the country valuable +service, that I had dealt with vast sums without receiving the +slightest benefit, and at the close was humiliated by charges of +petty larceny. If I had recalled the experience of Washington, +Hamilton, Jefferson, Jackson and Blaine, and many others, under +like accusations, I would have been content with answering as +Washington and Jackson did, or by silent indifference, but my +temperament led me to defy and combat with my accusers, however +formidable or insignificant they might be. + +The annual message of President Arthur, submitted to Congress on +the 6th of December, was a creditable, businesslike statement of +the condition of the government. It commenced with a very proper +announcement of the appalling calamity which had fallen upon the +American people by the untimely death of President Garfield. He +said: + +"The memory of his exalted character, of his noble achievements, +and of his patriotic life, will be treasured forever as a sacred +possession of the whole people. + +"The announcement of his death drew from foreign governments and +peoples tributes of sympathy and sorrow which history will record +as signal tokens of the kinship of nations and the federation of +mankind." + +Our friendly relations with foreign nations were fully described, +and the operations of the different departments of the government +during the past year were clearly and emphatically stated. In +closing he called attention to the second article of the constitution, +in the fifth clause of its first section, that "in case of the +removal of the President from office, or of his death, resignation, +or inability to discharge the powers and duties of said office, +the same shall devolve on the Vice President," and asked that +Congress should define "what is the intendment of the constitution +in its specification of 'inability to discharge the powers and +duties of said office,' as one of the contingencies which calls +for the Vice President to the exercise of presidential functions? +Is the inability limited in its nature to long continued intellectual +incapacity, or has it a broader import? What must be its extent +and duration? How must its existence be established?" + +These and other questions connected with the subject were not acted +upon by Congress, as it could not foresee the conditions of the +inabilities in advance of their occurrence. He closed with the +following sentence: + +"Deeply impressed with the gravity of the responsibilities which +have so unexpectedly devolved upon me, it will be my constant +purpose to co-operate with you in such measures as will promote +the glory of the country and the prosperity of its people." + +At the regular meeting of the House of Representatives, on the 5th +of December, 1881, J. Warren Keifer was elected speaker by a small +majority. Both Houses were almost equally divided on partisan +lines. + +Early in the session, on the motion of William McKinley, the House +passed the following resolution: + +"_Resolved_, That a committee of one Member from each state +represented in this House be appointed on the part of the House to +join such committee as may be appointed on the part of the Senate, +to consider and report by what token of respect and affection it +may be proper for the Congress of the United States to express the +deep sensibility of the nation to the event of the decease of their +late President, James Abram Garfield; and that so much of the +message of the President as refers to that melancholy event be +referred to said committee." + +On the same day, on my motion, a similar resolution, limiting the +committee to eight, passed the Senate. The committees were duly +appointed. On the 21st of December the two Houses, upon the report +of the two committees, adopted the following concurrent preamble +and resolutions: + +"Whereas, The melancholy event of the violent and tragic death of +James Abram Garfield, late President of the United States, having +occurred during the recess of Congress, and the two Houses sharing +in the general grief and desiring to manifest their sensibility +upon the occasion of the public bereavement: Therefore, + +"_Be it resolved by the House of Representatives (the Senate +concurring)_, That the two Houses of Congress will assemble in the +hall of the House of Representatives on a day and hour to be fixed +and announced by the joint committee, and that in the presence of +the two Houses there assembled an address upon the life and character +of James Abram Garfield, late President of the United States, be +pronounced by Hon. James G. Blaine; and that the president of the +Senate _pro tempore_ and the speaker of the House of Representatives +be requested to invite the President and ex-Presidents, of the +United States, the heads of the several departments, the judges of +the Supreme Court, the representatives of the foreign governments +near this government, the governors of the several states, the +general of the army and the admiral of the navy, and such officers +of the army and have as have received the thanks of Congress who +may then be at the seat of government, to be present on this +occasion. + +"_And be it further resolved_, That the President of the United +States be requested to transmit a copy of these resolutions to Mrs. +Lucretia R. Garfield, and to assure her of the profound sympathy +of the two Houses of Congress for her deep personal affliction and +of their sincere condolence for the late national bereavement." + +On the 27th of February, 1882, Mr. Blaine, in response to the +resolution of the two Houses, delivered an address, in the hall of +House of Representatives, on the life and character of President +Garfield, worthy of the occasion, of the distinguished audience +before him, and of his reputation as an orator. From the beginning +to the end it was elevated in tone, eloquent in the highest sense +of that word, and warm in expression of his affection for the friend +he eulogized. His delineation of Garfield as a soldier, an orator, +and a man, in all the relations of life, was without exaggeration, +but was tinged with his personal friendship and love. He described +him on the 2nd of July, the morning of his wounding, as a contented +and happy man, not in an ordinary degree, but joyfully, almost +boyishly, happy. "Great in life, he was surpassingly great in +death." He pictured the long lingering illness that followed that +fatal wound, the patience of the sufferer, the unfaltering front +with which he faced death, and his simple resignation to the divine +decree. His peroration rose to the full measure of highest oratory. +It was as follows: + +"As the end drew near, his early craving for the sea returned. +The stately mansion of power had been to him the wearisome hospital +of pain, and he begged to be taken from its prison walls, from its +oppressive, stifling air, from its homelessness and its hopelessness. +Gently, silently, the love of a great people bore the pale sufferer +to the longer-for healing of the sea, to live or to die, as God +should will, within sight of its heaving billows, within sound of +its manifold voices. With wan, fevered face tenderly lifted to +the cooling breeze, he looked out wistfully upon the ocean's changing +wonders; on its far sails, whitening in the morning light; on its +restless waves, rolling shoreward to break and die beneath the +noonday sun; on the red clouds of evening, arching low to the +horizon; on the serene and shining pathway of the stars. Let us +think that his dying eyes read a mystic meaning which only the rapt +and parting soul may know. Let us believe that in the silence of +the receding world he heard the great waves breaking on a further +shore, and felt already upon his wasted brow the breath of the +eternal morning." + +Blaine died January 27, 1893. Who now living could pronounce such +a eulogy? + +The following resolutions were adopted by both Houses of Congress: + +"_Resolved (the Senate concurring)_, That the thanks of Congress +be presented to the Hon. James G. Blaine, for the appropriate +memorial address delivered by him on the life and services of James +Abram Garfield, late President of the United States, in the +Representatives' Hall, before both Houses of Congress and their +invited guests, on the 27th day of February, 1882; and that he be +requested to furnish a copy for publication. + +"_Resolved_, That the chairman of the joint committee appointed to +make the necessary arrangements to carry into effect the resolutions +of this Congress, in relation to the memorial exercises in honor +of James Abram Garfield, be requested to communicate to Mr. Blaine +the foregoing resolution, receive his answer thereto, and present +the same to both Houses of Congress." + +At the time of the commencement of this session the credit of the +United States had reached high-water mark. It was apparent that, +with judicious management, a three per cent. bond of the United +States could be sold at par. On the first day of the session, +December 5, 1881, I introduced a bill to provide for the issue of +three per cent. bonds. It was referred to the committee on finance, +and on the 15th of December, by direction of that committee, I +reported the bill with certain amendments, and gave notice that I +was directed to seek the action of the Senate upon it immediately +after the holidays. It was taken up for consideration on the 11th +of January, and, much to my surprise, met with opposition from +those who a year before had favored a similar bill. They said it +was a mere expedient on my part, that President Hayes had, at my +request, vetoed a similar bill; but I was able to truly answer that +the veto of President Hayes was not against the three per cent. +bond, but against the compulsory provision that no other than three +per cent. bonds should be deposited in the treasury as security +for the circulating notes of, and deposits with, national banks; +that President Hayes, in fact, approved of the three per cent. bond. + +I made a speech in support of this measure on the 26th of January, +reviewing our financial condition, with many details in respect to +our different loans, and closed as follows: + +"I say now, as I said at the commencement, that the passage of this +bill seems to me a matter of public duty. I care nothing for it +personally. I have been taunted with my inconsistency. I feel +like the Senator from Kentucky about an argument of that kind. If +I did not sometimes change my mind I should consider myself a +blockhead or a fool. But in this matter, fortunately, I have not +changed my mind. In 1866 I anticipated the time when we could sell +three per cent. bonds and said that was a part of the funding +scheme, and so continued, year in and year out, as I could show +Senators, that that was the _ultima thule_, the highest point of +credit to which I looked in these refunding operations. I believed +last year it could not be done, because I did not believe the state +of the money market would justify the attempt, and, besides that, +the great mass of the indebtedness was so large that it might +prevent the sale of three per cent. bonds at par. Therefore, I +wanted a three and a half per cent. bill then. But then we secured +the three and a half in spite of Congress, by the operations of +the treasury department and the consent of the bondholders, now we +ought to do a little better. + +"Let Congress do now what it proposed to do last year, offer to +the people a three per cent. bond. If they do not take it no harm +is done, no expense is incurred, no commissions are paid, no +advantage is taken. If they do take it, they enable you to pay +off more rapidly still your three and a half per cent. bonds. +There was no express and no implied obligation made by the Senator +from Minnesota, as he will himself say, that the people of the United +States have the right to pay every dollar of these three and a half +per cent. bonds. He had no power to make such an intimation even, +nor has he made it, as he states himself. We are not restrained +by any sense of duty, we have the right to take advantage of our +improved credit, of our advanced credit, and make the best bargain +we can for the people of the United States, and the doctrine is +not 'let well enough alone,' but always to advance. + +"We are advancing in credit, in population, in strength, in power, +in reason. The work of to-day is not the work of to-morrow; it is +but the preparation for the future. And, sir, if I had my way in +regard to these matters I certainly would repeal taxes; I would +fortify ourselves in Congress by reducing this large surplus revenue; +I would regulate, by wise and separate laws, fully and fairly +considered, all the subjects embraced in these amendments as separate +and distinct measures, pass this bill which, to the extent it goes +and to the extent it is successful, will be beneficial to the +people." + +The debate upon the bill and upon amendments to it continued until +the 3rd of February, when it passed the Senate by the decided vote +of 38 yeas, 18 nays. + +The bill was referred to the committee of ways and means, but the +House, instead of passing a separate bill, accomplished the same +object by section 11 of the national bank act of July 12, 1882, by +which the Secretary of the Treasury was authorized to receive at +the treasury any bonds of the United States bearing three and a +half per cent. interest, and to issue in exchange therefor an equal +amount of registered bonds of the United States bearing interest +at the rate of three per cent. per annum. + +Mr. Folger, Secretary of the Treasury, in his annual report of +December 4, 1882, stated that on July 1, 1882, the amount of three +and a half per cent. bonds outstanding was $449,324,000, and that +under the section referred to he had exchanged to the date of his +report $280,394,750 of three per cent. bonds for a like amount of +three and a half per cent. bonds, thus reducing the annual interest +charge by reason of these exchanges $1,401,973.75. + +By his report of 1883, it was shown that the total amount of such +exchanges was $305,581,250, making an annual saving of interest, +effected by these exchanges, of $1,527,906.25. These bonds were +subsequently paid from time to time by surplus revenue. + +The whole process of refunding was perhaps as favorable a financial +transaction as has ever been executed in any country in the world. + +A revision of the tariff was greatly needed, but the only measure +adopted at that session was an act to provide for the appointment +of a commission to investigate the question of the tariff. I made +a speech on this bill in which I advocated the appointment of a +commission. I said: + +"Mr. president, I have called attention to these defects in the +present tariff, nearly all of which have grown out of amendments +that have been ingrafted on the Morrill tariff, by the confusion +caused by the difference between _ad valorem_ and specific duties, +by the great fall in prices, by important changes in the mode of +manufacturing, by, you may say, the revolution in trade and prices +that has occurred in the last twenty years, during which these laws +have existed. Therefore, coming back to the first question stated +by me, how best to get at a revision of the tariff, I say the +quickest way is the best way. + +* * * * * + +"Now, it does seem to me, with due deference to the opinion of the +Senator from Kentucky, that the quickest mode of revision is by a +commission. At the beginning of this session I believed it was +better to do it through the committees of the two Houses; but the +committee on ways and means of the House of Representatives alone +has the power to report a bill, and until then we in the Senate +are as helpless as children in this matter. The committee on ways +and means have declared in favor of a commission, and have reported +a bill to that effect; and they are the only power in this government +that can report a tariff bill under the rules of the House. The +House is the only body that can originate it under the constitution. +As they have decided in favor of a commission, why should we insist +upon it that they shall do the work themselves? + +"Besides, half the session has passed away, and the committee on +ways and means is burdened with other duties. We know that as the +session approaches an end, they probably cannot devote time to the +general tariff question. + +* * * * * + +"If they will give us a bill about sugar and these other items, it +is all we can reasonably ask them to do. When Congress adjourns, +you cannot expect the committee on ways and means, or any other +committee of Congress, to devote all their recess to public business. +Elections are coming off for Members of Congress, and they will +look after the elections. They must have a little rest. Therefore, +the idea of waiting for the committees of Congress to act, is +preposterous in my judgment. It is too late. If the committee +had commenced on the first Monday of December, they might by this +time probably had prepared a bill. They have made no such preparation, +and, therefore, it is utterly idle to wait. + +"I think, then, and I submit it to the good, cool sense and judgment +of my friend from Kentucky, that the better way is as early as +possible to organize a commission; let it be constituted, as I have +no doubt the President will take care to constitute it, of fair +and impartial men. They will be fresh at least. Let them frame +a bill with the aid of officers of the treasury department, so that +by the next session we may have a general revision of the tariff. + +"Upon the main question there appears to be no substantial difference +of opinion. We agree that the tariff should be revised and the +taxes be reduced. The only pertinent question involved in this +bill is whether it is best to organize a commission of experts, not +Members of Congress, to examine the whole subject and to report +such facts and information to Congress as the commission can gather, +or whether the proposed revision should be made directly, without +the delay of a commission, by the aid of committees of Congress +and the officers of the government familiar with the workings of +the customs laws. It does seem to me that to decide this question +we need no long arguments about protection or free trade, watchwords +of opposing schools of political economy, nor does it seem to me +that the political bearings of the tariff question are involved +when we all agree that the tariff ought to be revised, and are now +only finding out the best way to get at it. + +"Whenever a tariff bill is reported to us we will have full time +to discuss the theoretical and political aspects of the subject, +and no doubt the arguments already made will be repeated and +amplified. I prophesy that then we will have a strange mingling +of political elements, and a striking evidence of the changes of +interest and principle on this subject in different parts of the +country, caused by the revolution of the industry of our people by +the abolition of slavery during the Civil War. The only mitigation +of my desire for a prompt revision of the tariff is the confidence +I have that delay and discussion will make the sectional revolution +more thorough and universal, and leave the tariff question a purely +business and not a political or sectional issue." + +The nine commissioners appointed by President Arthur were well +selected, and they were, under the law, required to report on that +subject to the following session of Congress. + +It became necessary at this session to extend the corporate existence +of national banks. By the terms of the original national banking +act, banks organized under it continued for but twenty years, which +would expire within two years. A bill for the extension of the +time was introduced and a long discussion followed about silver, +certificates of deposit, clearing house certificates and other +financial matters. There was but little if any opposition to the +extension of national banks and the bill passed. It was approved +July 12, 1882. + +The most important financial measure passed by this Congress was +the bill to reduce internal revenue taxes, reported March 29, 1882, +by William D. Kelley, of Pennsylvania, from the committee of ways +and means. After a debate extending to June 27, a motion to recommit +was rejected and the bill passed the House. It was sent to the +Senate and reported with amendments by Mr. Morrill, from the +committee on finance, July 6. On July 11 it was recommitted to +the committee on finance and immediately reported back with +amendments, which consisted of a change in the tariff duties on +sugar and an increase of the duties on cotton, ties and a few other +things. It was not a general revision of the tariff. Mr. Beck +antagonized the amendments proposed by the committee and sought to +delay the passage of the bill. I replied to him as follows: + +"If this Congress shall adjourn, whether the weather be hot or +cold, without a reduction of the taxes now imposed upon the people, +it will have been derelict in its highest duty. There is no +sentiment in this country stronger now than that Congress has +neglected its duty thus far in not repealing taxes that are obnoxious +to the people and unnecessary for the public uses; and if we should +still neglect that duty we should be properly held responsible by +our constituents." + +In the course of the long debate Mr. Vance, of North Carolina, who +was the acknowledged wit of the Senate, moved to except playing +cards from the general repeal of stamp taxes. I objected to keeping +up the system of stamp taxes and said: + +"If Senators want to insist on a piece of what I call demagogism, +by keeping a small stamp tax on playing cards, I am perfectly +willing that they should do so. If it is desired now to show our +virtuous indignation against card-playing, to single out this tax, +which probably yields but three or four thousand dollars a year-- +to show our virtuous indignation against people who play cards and +against card-playing, let it be done in the name of Heaven. Let +us keep this as a monument of our virtue and intelligence and the +horror of the Senate of the United States against playing whist +and euchre. I hope that no such vote will be given." + +Mr. Vance replied in his peculiarly humorous way, and concluded by +saying: "I have no doubt that not a men in the United States, but +who, when he 'stands pat' with three jacks, or draws to two aces, +will glorify the name of the Senator from Ohio; and if there is +gratitude in human nature, I expect the see the next edition of +playing cards bearing a fullsized portrait of the Senator from Ohio +as the distinguishing mark of the 'yerker.'" + +The Senate was equally divided on this question of retaining the +tax on playing cards, the vote being 28 for and 28 against. As +there was not a majority in favor of the amendment of Mr. Vance it +was rejected and the tax was repealed. + +Mr. Beck undertook to amend the bill by a general revision and +reduction of the tariff duties in long schedules introduced by him. +I took an active part in the discussion of this bill in the hope +that by it we might secure a logical and desirable revenue law. +No final action was taken on it before the adjournment of Congress +on the 8th of August, after an eight months' session, and it went +over to the next session. + +After the long and wearisome session I returned to Mansfield. The +congressional canvass in Ohio was then in full operation. The +failure of Congress to pass the bill relieving the people from the +burden of internal taxes no longer required, the shadow of the +murder of Garfield, the dislike and prejudice against Arthur's +administration, the temporary stringency in money matters, the liquor +or license question, the Sunday observance, and the discontent of +German Republicans, greatly weakened the Republican party in the +state and foreboded defeat. R. A. Horr was the Republican candidate +for Congress in the district in which I reside, and on the 17th of +August he spoke at Mansfield. I also made a brief speech covering +the chief subjects under discussion. I explained the causes of +the failure to pass the revenue reduction bill, blaming it, as a +matter of course, on the Democratic party, but assured my hearers +that it would pass at the next session, and that the surplus revenue +would not be wasted, but would be applied to the reduction of the +public debt, and to increase pensions to Union soldiers, their +widows and orphans. The opposition to the immigration of Chinese +into this country was then strong. I could only promise that +Congress would do all it could to exclude them consistently with +treaty stipulations. I favored the proper observance of the Sabbath +day, claiming that it was a day of rest and should not be desecrated, +but each congregation and each citizen should be at liberty to +observe it in any way, consistent with good order and noninterference +with others. Touching on the liquor question, I said that many +of our young men were brought to disgrace and crime by indulgence +in intoxicating liquors, and I therefore believed in regulating +the evil. Why should all other business be suspended, and saloons +only be open? I was in favor of a law imposing a large tax on all +dealers in liquor, which would tend to prevent its use. I believed +in a policy that would protect our own laborers from undue competition +with foreign labor, and would increase and develop our home +industries. This position was chiefly a defensive one, and experience +has proven that it is not a safe one. The Republican party is +stronger when it is aggressive. + +On the 31st of August I attended the state fair as usual, and on +the morning of that day made a full and formal political address +covering both state and national interests. I quote a few passages +on the liquor question, then the leading subject of state policy. +I said: + +"All laws are a restraint upon liberty. We surrender some of our +natural rights for the security of the rest. The only question +is, where is the boundary between rights reserved and those given +up? And the only answer is, wherever the general good will be +promoted by the surrender. In a republic the personal liberty of +the citizen to do what he wishes should not be restricted, except +when it is clear that it is for the interest of the public at large. +There are three forms of legislative restriction: Prohibition, +regulation and taxation, of which taxation is the mildest. We +prohibit crime, we regulate and restrain houses of bad fame. We +tax whisky and beer. I see no hardship in such restraints upon +liberty. They are all not only for the public good, but for the +good of those affected. If certain social enjoyments are prolific +of vice and crime they must give way, or submit to restraints or +taxation. + +"I know it is extremely difficult to define the line between social +habits and enjoyments perfectly innocent and proper and those that +are injurious to all concerned. It is in this that the danger +lies, for the law ought never to interfere with social happiness +and innocent enjoyments. The fault of Americans is that they are +not social enough. I have seen on the banks of the Rhine, and in +Berlin, old and young men, women, children of all conditions of +social life, listening to music, playing their games and drinking +their beer, doing no wrong and meaning none. I have seen in the +villages of France the young people dancing gayly, with all the +animation of youth and innocence, while the old people, looking +on, were chatting and joking and drinking their native wines, and +I could see no wrong in all this. + +"But there were other scenes in these and other countries: Ginshops +and haunts of vice where the hand of authority was seen and felt. +What I contend for is that the lawmaking power shall be authorized +to make the distinction between innocent and harmful amusements +and the places and habits of life which eventually lead to +intemperance, vice and crime. Surely we can leave to our general +assembly, chosen by the people and constantly responsible to them, +the framing of such wise regulations, distinction and taxes as will +discriminate between enjoyment and vicious places of resort. + +"It is a reproach to our legislative capacity to allow free whisky +to be sold, untaxed and without regulation, at tens of thousands +of groggeries and saloons, lest some law should be passed to restrain +the liberty of the citizen. What we want is a wise, discriminating +tax law on the traffic in intoxicating liquors, and judicious +legislation to restrain, as far as practicable, the acknowledged +evils that flow from this unlimited traffic." + +This speech expressed my convictions in respect to temperance, and +how far this and kindred subjects should be regulated by legislative +authority. This was a delicate subject, but I believe the opinions +expressed by me were generally entertained by the people of Ohio +and would have been fully acted upon by the legislature but for +revenue restrictions in the constitution of Ohio. + +After I closed Governor Foster and Speaker Keifer spoke briefly. +The general canvass then continued over the state until the election. +As the only state officers to be elected were the secretary of +state, a supreme judge and a member of the board of public works, +the chief interest centered in the liquor question and in the +election of Members of Congress in doubtful districts. I spoke in +several districts, especially in Elyria, Warren, Wauseon, Tiffin +and Zanesville. I spent several days in Cincinnati, socially, and +in speaking in different parts of the city. The result of the +election was that James W. Newman, the Democratic candidate for +secretary of state, received a majority of 19,000 over Charles +Townsend, the Republican candidate. This was heralded as a Democratic +victory. In one sense this was true, but it was properly attributed +by the Republicans to the opposition to prohibition. It grew out +of the demand of a portion of our people for free whisky and no +Sunday. THey were opposed to the liquor law, and believed it went +too far, and voted the Democratic ticket. + +A few days after the election I went with two friends to Lawrence, +Kansas, arriving about the 15th of October. I have always retained +a kindly feeling for the people of that state since I shared in +the events of its early history. With each visit I have marked +the rapid growth of the state and the intense politics that divided +its people into several parties. This was the natural outgrowth +of conditions and events before the Civil War. As usual I was +called upon to make a speech in Lawrence, which, in view of our +recent defeat in Ohio, was not a pleasant task. However, I accepted, +and spoke at the opera house, chiefly on the early history of Kansas +and the struggle in that territory and state, which resulted in +transforming the United States from a confederacy of hostile states +into a powerful republic founded upon the principles of universal +liberty and perpetual union. + +From Lawrence we went into Texas, and for the first time traversed +that magnificent state, going from Denison to Laredo on the Rio +Grande, stopping on the way at Austin and San Antonio. On the +route I met Senator Richard Coke and his former colleague, Samuel +B. Maxey. I have studied the history of Texas and its vast +undeveloped resources, and anticipated its growth in wealth and +population. It is destined to be, if not the first, among the +first, of the great states of the Union. We returned via Texarkana +to St. Louis and thence home. + + +CHAPTER XLV. +STEPS TOWARDS MUCH NEEDED TARIFF LEGISLATION. +Necessity of Relief from Unnecessary Taxation--Views of the President +as Presented to Congress in December, 1882--Views of the Tariff +Commission Appointed by the President--Great Changes Made by the +Senate--Regret That I Did Not Defeat the Bill--Wherein Many Sections +Were Defective or Unjust--Bill to Regulate and Improve the Civil +Service--A Mandatory Provision That Should be Added to the Existing +Law--Further Talk of Nominating Me for Governor of Ohio--Reasons +Why I Could Not Accept--Selected as Chairman of the State Convention +--Refusal to Be Nominated--J. B. Foraker Nominated by Acclamation +--His Career--Issues of the Campaign--My Trip to Montana--Resuming +the Canvass--Hoadley Elected Governor--Retirement of Gen. Sherman. + +The President was able to present, in his annual message to Congress +on the 4th of December, 1882, a very favorable statement of the +condition of the United States during the preceding year. He +recalled the attention of Congress to the recommendation in his +previous message on the importance of relieving the industry and +enterprise of the country from the pressure of unnecessary taxation, +and to the fact that the public revenues had far exceeded the +expenditures, and, unless checked by appropriate legislation, such +excess would continue to increase from year to year. The surplus +revenue for the fiscal year ending June 30, 1881, amounted to +$100,000,000, and for the fiscal year ending June 30, 1882, it +amounted to more than $145,000,000. This was applied to the payment +of the public debt. He renewed the expression of his conviction +that such rapid extinguishment of the national indebtedness as was +taking place was by no means a cause for congratulation, but rather +for serious apprehension. He therefore urged upon Congress the +policy of diminishing the revenue by reducing taxation. He then +stated at length his opinion of the reductions that ought to be +made. He felt justified in recommending the abolition of all +internal taxes except those upon tobacco in its various forms, and +upon distilled spirits and fermented liquors. The message was a +clear and comprehensive statement of the existing tariff system, +and the unequal distribution of both its burdens and its benefits. +He called attention to the creation of the tariff commission, and +to the report of that commission as to the condition and prospects +of the various commercial, manufacturing, agricultural, mining and +other interests of the country, and recommended an enlargement of +the free list, so as to include within it numerous articles which +yielded inconsiderable revenue, a simplification of the complex +and inconsistent schedule of duties upon certain manufactures, +particularly those of cotton, iron and steel, and a substantial +reduction of the duties upon those and various other articles. +The subsequent action of Congress did not, in my opinion, conform +to this, in some respects, wise recommendation of the President. +In his closing paragraph he stated: + +"The closing year has been replete with blessings for which we owe +to the Giver of all good our reverent acknowledgment. For the +uninterrupted harmony of our foreign relations, for the decay of +sectional animosities, for the exuberance of our harvests and the +triumphs of our mining and manufacturing industries, for the +prevalence of health, the spread of intelligence and the conservation +of the public credit, for the growth of the country in all the +elements of national greatness--for these and countless other +blessings--we should rejoice and be glad. I trust that under the +inspiration of this great prosperity our counsels may be harmonious, +and that the dictates of prudence, patriotism, justice and economy +may lead to the adoption of measures in which the Congress and the +Executive may heartily unite." + +The report of the Secretary of the Treasury emphasized and elaborated +the recommendations of the President. + +The real cause of the delay of the Senate at the previous session, +in acting upon the internal revenue bill, was the desire to await +the action of the tariff commission appointed under the act approved +May 15, 1882. To secure a comprehensive scheme of taxation it was +necessary to include in a revenue bill duties on imported goods as +well as taxes on internal productions. The members of the tariff +commission appointed by the President, and who signed the report, +were John L. Hayes, Henry W. Oliver, A. M. Garland, J. A. Ambler, +Robert P. Porter, J. W. H. Underwood, Alexander R. Boteler, and +Duncan F. Kenner. These gentlemen were of high standing, representing +different parts of the country, of both political parties, and +notably familiar with our internal and external commerce and +productions. In their report they said: + +"In performance of the duty devolved upon them, all the members of +the commission have aimed, and, as they believe, with success, to +divest themselves of political bias, sectional prejudice, or +considerations of personal interest. It is their desire that their +recommendations shall serve no particular party, class, section, +or school of political economy." + +They transmitted their report to the speaker of the House of +Representatives on the 4th of December, 1882. It was a clear and +business-like statement of their action, accompanied with schedules +of duties on imported goods recommended by them, with suggested +amendments to existing customs laws, with testimony taken by them, +and with tables and reports covering, in all, over 2,500 printed +pages. It was by far the most comprehensive exposition of our +customs laws and rates of duty that, so far as I know, had been +published. It was quickly printed for the use of the finance +committee of the Senate, before whom the bill to reduce internal +revenue taxation was pending. If the committee had embodied, in +this bill, the recommendations of the tariff commission, including +the schedules without amendment or change, the tariff would have +been settled for many years. Unfortunately this was not done, but +the schedules prescribing the rates of duty and their classification +were so radically changed by the committee that the scheme of the +tariff commission was practically defeated. Many persons wishing +to advance their particular industries appeared before the committee +and succeeded in having their views adopted. The Democratic members +seemed to take little interest in the proceedings, as they were +opposed to the adoption of the tariff as a part of the bill. I +did all I could to prevent these changes, was very much discouraged +by the action of the committee, and doubted the propriety of voting +for the bill with the tariff provisions as proposed by the committee +and adopted by the Senate. I have always regretted that I did not +defeat the bill, which I could readily have done by voting with +the Democrats against the adoption of the conference report, which +passed the Senate by the vote of yeas 32, nays 30. However, the +propriety and necessity of a reduction of internal taxes proposed +by the bill were so urgent that I did not feel justified in denying +relief from burdensome and unnecessary taxes on account of provisions +in the bill that I did not approve. With great reluctance I voted +for it. + +One reduction made by the committee against my most strenuous +efforts was by a change in the classification and rates of the duty +on wool. When I returned to Ohio I was violently assailed by the +Democratic newspapers for voting for a bill that reduced the existing +duty on wool about twenty per cent., and I had much difficulty in +explaining to my constituents that I opposed the reduction, but, +when the Senate refused to adopt by view, did not feel justified, +on account of my opposition to this one item, in voting against +the bill as a whole. The conference report was agreed to by the +House of Representatives on the 2nd of March, and the bill was +approved by the President on the 3rd. + +I did not conceal my opposition to the tariff sections of the +revenue bill. I expressed it in debate, in interviews and in +letters. When the bill was reported to the Senate it was met by +two kinds of opposition, one the blind party opposition of free +traders, led by Senators Beck and Vance, the other (much more +dangerous), the conflict of selfish and local interests, mainly on +the part of manufacturers, who regarded all articles which they +purchased as raw material, on which they wished the lowest possible +rate of duty, or none at all, and their work, as the finished +article, on which they wished the highest rate of duty. In other +words, what they had to buy they called raw material to be admitted +without protection, and what they had to sell they wanted protection. +It was a combination of the two kinds of opposition that made the +trouble. + +The Democratic Senators, with a few exceptions, voted steadily and +blindly for any reduction of duty proposed; but they alone could +not carry their amendments, and only did so when re-enforced by +Republican Senators, who, influenced by local interest, could reduce +any duty at their pleasure. In this way, often by a majority of +one, amendments were adopted that destroyed the harmony of the +bill. In this way iron ore, pig iron, scrap iron and wool were +sacrificed in the Senate. They were classed as raw materials for +manufactures and not as manufactures. For selfish and local reasons +tin plates, cotton, ties and iron and steel rods for wire were put +at exceptionally low rates, and thus were stricken from the list +of articles that could be manufactured in this country. This local +and selfish appeal was the great defect of the tariff bill. I do +not hesitate to say that the iron and wool sections of the bill, +as it passed the Senate, were unjust, incongruous and absurd. They +would have reduced the iron and steel industries of the United +States to their condition before the war, and have closed up two- +thirds of the furnaces and rolling mills in this country. They +were somewhat changed in the committee of conference, but if they +had not been, the only alternative to the manufacturers would have +been to close up or largely reduce the wages of labor. + +Another mistake made in the Senate was to strike out all the +carefully prepared legislative provisions simplifying the mode of +collecting customs duties, and the provisions for the trial of +customs cases. The tariff commission proposed to repeal the _ad +valorem_ duty on wool, and leave on it only the specific duty of +ten and twelve cents a pound. The chairman of the tariff commission +was himself the president or agent of the woolen manufacturers and +made the report. The manufacturers of woolens, however, were +dissatisfied, and demanded an entire change in the classification +of woolens, and, on some important grades, a large increase of +rates, but insisted upon a reduction of the duty on wool. + +I hoped when the bill passed the Senate that a conference committee +would amend it, but, unfortunately Senators Bayard and Beck withdrew +from the conference and the Senate was represented by Senators +Morrill, Aldrich and Sherman. My colleagues on the conference were +part of the majority in the Senate, and favored the bill, and the +House conferees seemed concerned chiefly in getting some bill of +relief, some reduction of taxes, before the close of the session. + +On the 13th of March, 1883, in reply to a question of a correspondent +whether I had any objection to having my views reported, I said: + +"No, sir; the contest is now over, and I see no reason why the +merits and demerits of the law should not be stated. I worked at +it with the finance committee for three months, to the exclusion +of other business. Taken as a whole, I think the law will do a +great deal of good and some harm. The great body of it is wise +and just, but it contains some serious defects. The metallic and +wool schedules are unequal and unjust. The great merit of the bill +is that it reduces taxes. I would not have voted for it, if any +other way had been open to reduce taxes. + +"Was there any urgent necessity for reducing taxes?" + +"Yes. The demand for a reduction of taxes was general, and, in +respect to some taxes, pressing and imperative. The failure of +Congress to reduce taxes was one of the chief causes of the defeat +of the Republican party last fall, though it was not really the +fault of our party. The bill was talked to death by Democratic +Senators. The taxes levied by the United States are not oppressive, +but they are excessive. They tempt extravagance. We could not go +home without reducing the internal taxes. What I want you to +emphasize is, that the tariff sections could not have passed in +their present shape but for their connection with the internal +revenue sections. We could not separate them; therefore, though +I voted against the tariff sections of the Senate bill, I felt +constrained to vote for the bill as a whole." + +"Is not the bill, as it passed, substantially the bill of the tariff +commission?" + +"No, sir; the tariff commission had nothing to do with internal +taxes. The internal revenue sections were in the House bill of +last session, and were then amended by the Senate. That bill gave +the Senate jurisdiction of the subject. It was only under cover +of amendment to that bill that the Senate could pass a tariff. At +the beginning of this session, the finance committee of the Senate +had before it the tariff commission report, which was an admirable +and harmonious plan for a complete law fixing the rates of duty on +all kinds of imported merchandise, and, what was better, an admirable +revision of the laws for the collection of duties and for the trial +of customs cases. If the committee had adopted this report, and +even had reduced the rates of duty proposed by the commission, but +preserved the harmony and symmetry of the plan, we would have had +a better tariff law than has existed in this country. But, instead +of this, the committee unduly reduced the duties on iron and steel, +and raised the duties on cotton and woolen manufactures, in some +cases higher than the old tariff. The committee restored nearly +all the inequalities and incongruities of the old tariff, and +yielded to local demands and local interests to an extent that +destroyed all symmetry or harmony. But still the bill reported to +the Senate was a passable tariff except as to iron and wool; but +it was not in any respect an improvement on the tariff commission +report." + +Senator Morrill, in a long letter to the New York "Tribune" of the +date of April 28, 1883, made a reply to my objections to the tariff +amendment, but it did not change my opinion, and now, after the +lapse of many years, I am still of the same opinion. The tariff +act of 1883 laid the foundation for all the tariff complications +since that time. + +During this session a bill to regulate and improve the civil service +of the United States was reported by my colleague, Mr. Pendleton, +and was made the subject of an interesting debate in the Senate, +which continued most of the month of December, 1882. It was referred +to the committee on reform in the civil service in the House of +Representatives, was promptly reported, and, after a brief debate, +passed that body and was approved by the President. This important +measure provided for a nonpartisan civil service commission composed +of three persons, and defined their duties. It withdrew from party +politics the great body of the employees of the government. Though +not always wisely executed it has been the basis of reforms in the +civil service, and, with some amendments to promote its efficiency, +is now in successful operation. + +The tendency of all parties is to include under civil service rules +all employments in the executive branch of the government, except +those that, by the constitution, are appointed by the President by +and with the advice and consent of the Senate. If to this should +be added an imperative provision of law forbidding any Member of +Congress from applying for the appointment of any person to an +executive office, the abuses of the old system would be corrected +and the separate departments of the government would be independent +of each other. My experience as an executive officer convinced me +that such a mandatory provision would not only break up the "spoils +system," but would relieve the President and heads of departments, +as well as Members of Congress, from much of the friction that +often disturbs them in the discharge of their separate duties. + +Before I returned home in the spring of 1883, the nomination of a +candidate for governor was being canvassed in the press and among +the people of Ohio. My name, among others, was mentioned, but I +did not take any interest in the suggestion of my nomination, +supposing it was a passing thought that, upon reflection, would be +abandoned. No one could then foresee how the legislature to be +elected in the fall would stand politically, and my friends would +hardly risk the loss of a Republican Senator, through my resignation, +to compliment me with an election as governor. + +I returned to Ohio early in April, and, as usual, paid my respects +to the general assembly, then in session at Columbus. I was kindly +received and expressed my thanks as follows: + +"Gentlemen of the general assembly, I thank you for this hearty +reception. In this house of speechmakers I will be pardoned for +not making an address. You are the representatives of the people, +and to you I owe my first allegiance, doing as best I can the will +of the people of Ohio and of the United States, without respect to +party, creed or condition. In the closing hours of your session +you are too much engaged for me to indulge in any remarks, and so +I bid you good-bye. Again, gentlemen, I return my warmest thanks." + +I was received in the same manner in the senate. I found a much +stronger feeling in favor of my nomination for governor than I +expected. I therefore stated definitely that I could not be a +candidate, and a few days afterwards, in reply to an editor who +was entitled to a frank answer, as to whether my name was to be at +the head of the state ticket, I said: + +"I am not a candidate, never have been, and could not accept the +gubernatorial nomination under any circumstances. It is out of +the question. There was a manifest disposition at one time to run +me _nolens volens_, but my friends now understand my position fully, +and will not press the point. It is as though the possibility had +never been suggested, and the less said about it the better." + +This declaration was variously regarded by the newspapers; by one +as a proclamation of a panic, by another as a doubt of success, by +another as a selfish desire to hold on to a better office, neither +of which was true. While I did not wish the nomination, I would +have felt it my duty to accept it if the convention had determined +that my acceptance was necessary for success. Upon my return to +Mansfield in May, in an interview with a reporter, I mentioned +several able men in the state who were well qualified for that +office. I spoke of Judge Foraker as one who would make an acceptable +candidate. I did not then know him personally, but from what I +had heard of him I preferred him to any other person named. He +was young, active, eloquent and would make a good canvass. At that +time there was a movement to push the nomination of Thurman and +Sherman as competing candidates. The state convention was approaching +and I had been invited to attend. I went to Columbus on the 5th +of June. All sorts of rumors were being circulated. The general +trend of them was thus stated by a leading Republican journal: + +"The question is being quietly discussed by a number of prominent +Republicans, and the movement promises to assume such proportions +before the day of the convention, that it will result in the +nomination of Senator Sherman for governor. It has been stated +that Mr. Sherman would not accept, yet one of the most prominent +of Ohio Republicans says, with emphasis: 'Mr. John Sherman has +been honored for the last thirty years by the Republican party, +and he could not afford to decline the nomination, and he would +not.' The great interest manifested throughout the country in +Ohio, is such that it is deemed wise, owing to existing circumstances, +to insist on the nomination of Mr. Sherman, thereby avoiding all +contest in the convention, and giving a national prominence to the +campaign. Should this be done, as it is now believed that it will +be, the nomination of ex-Senator Thurman, by the Democrats, would +be a foregone conclusion." + +As the delegates arrived it was apparent that there was a general +desire that I should be nominated, and several delegations came to +my room to urge me to accept. Among others who came to me were +Messrs. Jones, Johnson and Fassett, of the Mahoning county delegation. +After some general conversation they said that in order that they +might act with a full knowledge of the situation, and with reference +to the best interests of the party, they desired to ask me if I +was or would be a candidate for the nomination of governor. I +answered directly, and plainly, that I was not a candidate; would +not and could not become one. I said I was sorry that matters had +shaped themselves as they had, as I was put in the position of +refusing to obey the call of my party, that I believed it was the +place of every man to take any responsibility that could be put +upon him, but that, in my case, my duty was in another direction, +that I thought my place then was in the Senate, and that the possible +danger of a Democratic successor there ought to be avoided. + +The convention met on the morning after my arrival, and I was +selected as chairman. I was not aware until I arrived in Columbus +that I was to preside over the convention, but, as customary on +taking the chair, I made an address thanking the convention for +the honor conferred upon me, briefly reviewed the history of the +Republican party, spoke of the tariff, the liquor and other questions +which would have to be met in the canvass, and appealed to all +present to unite and use their utmost endeavors for success. + +Notwithstanding my repeated statements that I could not accept the +nomination, J. M. Dalzell arose from the ranks of the delegation +from his district, in the rear part of the hall, and, mounting his +seat, made an enthusiastic speech nominating me for governor. I +declined in the following words: + +"Gentlemen of the Convention:--I have not been insensible to the +desire of many gentlemen and personal friends to put my name in +nomination for governor. But let me say frankly but firmly that +I cannot be your candidate. In order that I may not be misunderstood, +I desire your attention for a few moments, to state my reasons for +declining the nomination. I have been under so many obligations +to the Republican party of Ohio, that, if this was merely a matter +of personal interest or feeling, I would say 'yes!' But, I cannot +accept this nomination. First, because you have charged me with +the duty of a Member of the Senate of the United States; and I +could not surrender that, with my sense of what is just, not only +to the people of Ohio, but to the people of the United States. +And I will say that that view is shared by many of my associates +in the Senate. They deprecate any movement of this kind on account +of the condition of affairs there. But, aside from that, there is +one consideration that would prevent me from becoming a candidate +now. When early applied to on this subject, I stated to the +gentlemen whose names were mentioned to come before this convention, +that I was not a candidate and would not be a candidate. I could +not accept your nomination without a feeling of personal dishonor, +and that you certainly do not wish to bring upon me. Although all +of you, my Republican friends, would know I was sincere in that +declaration, yet the censorious world at large would say that I +had not acted a manly part; I could not bear an imputation of that +kind. So that, even if the nomination were presented to me with +a unanimous feeling in this convention, yet I would feel bound, by +a feeling of personal honor, which is the higher law, especially +among Republicans, to decline." + +The convention then nominated Joseph R. Foraker for governor by +acclamation. He was introduced to the convention and made a long +and pleasant address. His speech was well received and he was +often interrupted with cheers. He was then about thirty-seven +years old, and was but little known throughout the state, but his +appearance, manner, and address satisfied the convention and he +was at once recognized as a man of ability, who would take and hold +a prominent place in the political history of the state. He had +enlisted as a boy at Camp Dennison at the early age of sixteen, +and rapidly rose through the military grades until, at Mission +Ridge, he commanded two companies and led them over the ridge into +the enemy's works, being the first man of his regiment over the +ridge. He was with Sherman on his celebrated march to the sea. +My brother spoke of him in the highest terms of praise. After the +war he entered college at Delaware, rapidly advanced through college +and completed his study of law, and at an early age was elected to +a five years' term as a judge of the superior court of Cincinnati. +He is now in the meridian of his intellectual strength, and will, +in all human probability, attain higher distinction. + +The rest of the ticket was soon completed by the nomination of +strong candidates for each of the offices to be filled at that +election. + +From the beginning of this canvass it was known that the result +was doubtful, not only on national issues, but, on the recent +legislation in Ohio, on the much mooted liquor question. + +The "Scott" law imposed a tax on dealers in liquors and beer, and +also proposed two temperance amendments which were submitted to +the people. The constitution of Ohio declares that "no license to +traffic in intoxicating liquors shall hereafter be grated in this +state, but the general assembly may, by law, provide against evils +resulting therefrom." + +As to the status of the legislation in Ohio in 1883, I said during +this canvass that, under this provision, the legislature of Ohio +for thirty years had, from time to time, passed laws to prevent +the evils that arose from the sale of intoxicating liquors, but +without effect. The constitution so limited the powers of the +general assembly that it could only pass prohibitory and punitive +laws. It could not regulate by money license the sale of liquors. +Both parties joined in this kind of legislation, but it was safe +to say that all the laws on the subject were substantially nullified +by popular opinion, or by inability in cities and large towns to +enforce them. Thus, in Ohio, we had, for more than thirty years, +free whisky, without restraint, without taxation, to a degree that +probably did not exist in any other state of the Union, or any +other Christian or civilized country. Two years before, the +Republican party, in convention at Cleveland, declared itself in +favor of an amendment to the constitution which would give the +general assembly full legislative power over the traffic, free from +the restraint of the old constitution. The legislature, instead +of acting upon this proposition, postponed it, and passed what was +known as the Pond bill. The supreme court declared that law +unconstitutional, as being within the meaning of the inhibition of +the constitution. Thus, at the previous election, the Republican +party appeared before the people of the state when they were +discontented alike with the action of the general assembly and of +Congress for its failure to reduce taxes, and so we were badly +beaten by the staying from the polls of 70,000 Republican voters. + +The causes of this defeat were apparent to every intelligent man. +The general assembly, however, at the next session, met the temperance +question in a different spirit. It submitted to the people two +proposed amendments to the constitution, one providing for full +legislative control over the traffic in spirits, and the other +providing for the absolute prohibition of the traffic. Pending +the action of the people on these two amendments, the legislature +provided by a law, called the Scott law, for a tax of $200 annually +on the sale of spirituous liquors and $100 on the sale of beer. +This law was held to be constitutional by the supreme court of +Ohio. This action of the legislature had been approved by the +Republican state convention. + +Upon the question thus presented there was a division of opinion +in the Republican party. On the one hand, a large body of Republicans, +mostly Germans in the large cities, regarded this legislation as +an attempt to interfere with their habit of drinking beer, which +they regarded as a harmless beverage. On the other hand, the +disciples of total abstinence were opposed to the "Scott" law as +a license to sell and drink intoxicating liquors, which license, +they alleged, was wrong and against public policy. They were for +prohibition outright; they regarded the tax law as a covenant with +hell, and nominated a ticket to represent their principles. The +Democratic party occupied a position of opposition to every +proposition about the liquor laws. They placed in nomination, as +their candidate for governor, George H. Hoadley, an eminent lawyer, +and able speaker and a man of good character and standing. He had +been an earnest Republican during and since the war, but had followed +the wake of Chase, and joined the Democratic party. + +The tariff issue also entered into this canvass. The farmers of +Ohio complained that the duty on wool had been reduced, while the +duties on woolen goods were increased; that protection was given +to the manufacturer and denied to the farmer. A great outcry was +made by Democratic orators and newspapers in farming communities +against this injustice, and I was selected as the leader and author +of it. Handbills were freely demonstrated by the Democratic +committee in public places, denouncing me as the wicked destroyer +of the sheep industry of Ohio farmers. I replied that it was true +that in the recent tariff act there was a reduction of the duty on +wool of about two cents a pound, but that I had opposed it, and +did all I could to prevent it, but it was carried by the united +vote of the Democratic party in both Houses, aided by a few Republican +Senators and Members from New England. I denounced the hypocrisy +of those who assailed me, whose representatives voted for even a +greater reduction, and some of them for free wool. To all this +they answered: "Did you not vote for the bill on its passage?" +I had to say yes, but gave the reasons why, as already stated. No +doubt, in spite of the unfairness of this accusation, it had some +adverse influence on the election. + +This canvass was in many respects a peculiar one. Foraker was +active and spoke in nearly every county in the state, and gave +general satisfaction, but Hoadley was equally able and, having been +until recently a Republican, could not be held responsible for the +course of the Democratic party during and since the war. Both the +candidates for governor being from Cincinnati, the struggle there +was more intense than usual, and was made to turn on the liquor +question more than on general politics. When I was asked about +the German vote, I said: + +"The Germans are, generally speaking, good Republicans, and are +really a temperate people. They have always claimed to be willing +to pay a tax on the sale of beer and other kinds of liquor. The +Scott bill is very moderate--more so than the bills that are being +passed in other states. If they mean what they say, I don't think +there will be any trouble about electing our ticket." + +Immediately after the convention, in company with my townsmen, +George F. Carpenter, Henry C. Hedges and M. Hammond, I started on +a trip to Helena, Montana. The object was simply recreation and +sight-seeing. We stopped on the way at Chicago, St. Paul and other +points. Everywhere we went we met interviewers who wanted to know +about the Ohio convention and politics in general, but I preferred +to talk about the great northwest. Interviews were sought by +reporters and were fully given and printed in local papers. Hedges +and Carpenter were intelligent gentlemen interested, like myself, +in Chicago and St. Paul, and more familiar than I was with the +local geography of Wisconsin and Minnesota. With their assistance +I became conversant with the topography and productions of these +states. I was especially impressed with the growth of St. Paul +and Minneapolis. I had purchased, in connection with Mr. Cullen, +some years before, forty acres of land adjoining St. Paul. Upon +my arrival on this trip he showed me the land, worth then more +thousands than the hundreds we paid for it. This was but a specimen +of the abnormal growth of these sister cities, destined, in some +not far distant day, to be a single city. From St. Paul, we went +to Helena, then the terminus of the Northern Pacific railroad, and +the newly made capital of Montana. This was the second time I had +visited this territory, now a state. I studied, as well as I could, +its wonderful resources, both mineral and agricultural. It is +properly named Montana. Its mountains are not only filled with +minerals of every grade from gold to iron, but they contain, more +than any other part of the country, the freaks of nature and in +bolder form, such as geysers, sink pots, mountain lakes, deep +ravines, and they are surrounded by vast valleys and plains, the +native home of the buffalo, now the feeding ground of vast droves +of horses, herds of cattle, and flocks of sheep. + +The strangely varied surface of the different states of the Union +would, in case of war with any power, enable us, from our own soil +and from the riches buried under it, to support and maintain our +population. Already more than nine-tenths of the articles needed +for life and luxury in the United States are the product of the +industry of our countrymen. The remaining tenth consists mainly +of tea, coffee and other tropical or semi-tropical productions, +the products of nations with whom we can have no occasion for war. +Articles of luxury and virtu are mainly the production of European +nations. + +Our partial state of isolation is our greatest strength, our varied +resources and productions are our greatest wealth, and unity in +national matters, independence in local matters, are the central +ideas of our system of government. + +On our return we stopped for a day at Bismarck, Dakota, then a +scattered village, but already putting on airs as the prospective +capital. We passed through St. Paul, Milwaukee, Grand Rapids and +Detroit on our way to Mansfield. This trip, leisurely taken, +occupied about one month. + +During the remainder of the summer, until the canvass commenced, +I had a period of rest and recuperation. It was interrupted only +by the necessity of making some preparation for the canvass, which +it was understood was to commence on the 25th of August. I carefully +dictated my opening speech, which was delivered at Findlay on that +day to a large audience. It was printed and circulated, but most +of the points discussed have been settled by the march of time. +Some of them it may be of interest to recall. I contrasted the +condition of Findlay then to Findlay when I first saw it, but if +the contrast was to be made now it would be more striking. I +described the formation and history of parties as they then existed, +and assumed that as Hoadley, who had been an Abolitionist or +Republican and a supporter of the war, was then the Democratic +candidate for governor, and that as Ewing and Bookwalter, the latest +Democratic candidates for governor, had also been Republicans, we +could assume this as a confession that the measures of the Republican +party were right. I said: "All these distinguished and able +gentlemen have been Republican partisans, as I have; and Judge +Hoadley has, I think, been rather more free in his denunciation of +the Democratic party than I have. To the extent, therefore, of +acquiescence in the great issues that have divided us in the past, +_the Democratic party concedes that we were right_." + +I then presented the liquor question and the Scott law. I defended +the tax imposed by this law as a wise tax, the principle of which +had been adopted in most of the states and in the chief countries +of Europe. Hoadley, instead of meeting this argument fairly, +attacked the proposed amendments to the constitution prohibiting +the sale of spirits and beer as a part of the creed of the Republican +party, instead of a mere reference to the people of a disputed +policy. This was the display of the skill of the trained lawyer +to evade the real issue of the "Scott" bill. He treated the +reduction of the duty on wool with the same dexterity, charging it +upon the Republican party, when he knew that every Democratic vote +had been cast for it, and for even a greater reduction, and that +nearly every Republican vote had been cast against it. The entire +canvass of Hoadley was an ingenious evasion of the real issues, +and in its want of frankness and fairness was in marked contrast +with the speeches of Foraker. + +After the Findlay meeting I went to Cincinnati and attended the +harvest home festival in Green township, and read an address on +the life and work of A. J. Downing, a noted horticulturalist and +writer on rural architecture. I have always been interested in +such subjects and was conversant with Downing's writings and works, +especially with his improvement of the public parks in and about +Washington. He was employed by the President of the United States +in 1851, to lay out and superintend the improvement of the extensive +public grounds between the capitol and the executive mansion at +Washington, commonly known as the "Mall." This important work was +entered upon by him, with the utmost enthusiasm. Elaborate plans +of the Mall and other public squares were made by him, walks and +drives laid out; the place for each tree, with its kind and variety +determined, and the work of planning mainly executed. He, with an +artist's eye, saw the then unadorned beauties of the location of +the capital; the broad sweep of the Potomac, the valley and the +plain environed by its rim of varied hills, broken here and there +by glens and ravines. He spoke of it with enthusiasm, and no doubt, +above other hopes, wished, by his skill, to aid in making the city +of Washington as magnificent in its views and surroundings as any +city in Europe. But man proposes and God disposes. It was not to +be the good fortune of Mr. Downing to complete his magnificent +plans for converting the filthy, waste commons of the capital into +gardens of delight; but they have been executed by others, and have +contributed largely to making Washington what he wished it to be, +a beautiful city, parked and planted with specimens of every American +tree worthy of propagation, and becoming adorned with the best +models of architecture, not only of public edifices, fitted for +the great offices of the nation, but of many elegant private houses. + +I had been invited by the Lincoln club, of Cincinnati, to attend +a reception at their clubhouse on the evening of the 1st of September. +It is a political as well as a social club, and I was expected to +make a political speech. I did so, and was followed by Foraker +and H. L. Morey. The usual "refreshments" were not forgotten. I +take this occasion to express my hearty approval of the organization +and maintenance of political clubs in every city containing 10,000 +or more inhabitants. The Republicans of Cincinnati have for many +years maintained two notable organizations, the Lincoln and the +Blaine clubs, which have been places of social intercourse, as well +as centers for political discussion. Both have had a beneficial +influence, not only in instructing their members on political +topics, but in disseminating sound opinion throughout the state. + +During this visit I was elected a member of the Chamber of Commerce +in Cincinnati. I regarded this as an honor, and returned to its +members my sincere thanks. Although I have not been engaged in +commercial pursuits, yet in my public duties I have often been +called upon to act upon commercial questions and interests. I have +habitually, in my annual visits to that city, visited the chamber +of commerce, and said a few words on the topic of the times in +which its members were interested, but never on politics. Every +diversity of opinion was there represented. + +Cincinnati, situated on the north bank of the Ohio River, with +Kentucky on the other side, and Indiana near by, with a large part +of its population of German birth or descent, with every variety +of race, creed and color, is thoroughly a cosmopolitan city, subject +to sudden outbreaks and notable changes. At the time of my visit +it was especially disturbed by the agitation of the temperance +question. In discussing this, I took the same position as at +Findlay, and found but little objection to it, but the opinions +expressed by speakers in other parts of the state in favor of +prohibition had, as the election proved, a very bad effect upon +the Republican ticket. + +On the 6th of September I attended the state fair at Columbus. It +was estimated that there were at least 40,000 people on the ground +that day. It has been the habit to gather around the headquarters +and press any public man who appeared to make a speech. Governor +Foster and I were together. Mr. Cowden, the president of the fair, +introduced Foster and he made a brief address. I was then introduced +and said: + +"Ladies and Gentlemen:--It has been my good fortune to be able to +visit the state fair for many years in succession, but, from the +great multitude of people, and the vast concourse before me, I +should say that Ohio is rapidly pressing onward in the march of +progress. The gray beards I see before me, and I am among them now, +remind me of the time when we were boys together; when, after a +season's weary labor, we were compelled to utilize our surplus +crops to pay our taxes." + +I contrasted the early days of Ohio with its condition then, and +closed as follows: + +"But this is no time for speechmaking, nor the occasion for further +remarks. We have come out to show ourselves, and you do not desire +speeches, but you do most want to see the horses, cattle, sheep, +hogs, and the implements that make the life of a farmer easier. +This is a progress that I love to see. My countrymen, you are +crowned with blessings. Enjoy them freely and gratefully, returning +thanks to the Giver of all good gifts. This is a free land, and +the agricultural masses are the freest, the noblest, and the best +of all our race. Enjoy your privileges to the highest point, and +be worthy followers of the great race of pioneers who came before +you." + +During the remainder of this canvass I spoke nearly every week day +until the election, and in most of the congressional districts of +the state. Some of these speeches were reported and circulated as +campaign documents. As the election day approached the interest +increased, and the meetings grew to be immense gatherings. This +was notably so at Toledo, Dayton, Portsmouth, Cleveland, Circleville +and Zanesville. I believed the Republican state ticket would be +elected, but feared that the prohibition amendment would prevent +the election of a Republican legislature. The result of the election +for governor was Hoadley 359,693, Foraker 347,164, and the general +assembly elected contained a majority of Democrats in each branch. +Henry B. Payne was, on the meeting of the legislature, elected +Senator in the place then held by Geo. H. Pendleton. + +After the election I went to New York and was met everywhere with +inquiries as to the causes of Republican defeat in Ohio. I said +the Republicans were defeated because of the prohibition question +and the law reducing the tariff on wool; that many Germans feared +an invasion of their rights and an interference with their habits, +and the farmers objected to the discrimination made by our tariff +against their industries. + +On the 1st of November, 1883, General Sherman relinquished command +of the army, with the same simplicity and lack of display which +had characterized his official life at army headquarters. He wrote +the following brief order: + + "Headquarters of the Army, } + "Washington, November 1, 1883.} +"_General Orders No. 77_. + +"By and with the consent of the President, as contained in General +Orders No. 71, of October 16, 1883, the undersigned relinquishes +command of the army of the United States. + +"In thus severing relations which have hitherto existed between +us, he thanks all officers and men for their fidelity to the high +trust imposed on them during his official life, and will, in his +retirement, watch with parental solicitude their progress upward +in the noble profession to which they have devoted their lives. + + "W. T. Sherman, General. + "Official: R. C. Drum, Adjutant General." + +He then rose from his desk, gave his seat to Sheridan, who at once +issued his orders assuming his new duties, and the transfer was +completed. I know that when the bill for the retirement of officers +at a specified age was pending, there was a strong desire in the +Senate to except General Sherman from the operation of the law, +but the general, who was absent on the plains, telegraphed me not +to allow an exception to be made in his favor, insisting that it +would be a discrimination against other officers of high merit. +Thereupon the Senate reluctantly yielded, but with a provision that +he should retain his salary as general, notwithstanding his +retirement. + +At this period mention was again made in the newspapers of my name +as the nominee of the Republican party for President in the next +year. I promptly declared that I was not a candidate and had no +purpose or desire to enter into the contest. This discussion of +my name continued until the decision of the national convention, +but I took no part or lot in it, made no requests of anyone to +support my nomination, and took no steps, directly or indirectly, +to promote it. + + +CHAPTER XLVI. +EFFECT OF THE MARINE NATIONAL BANK AND OTHER FAILURES. +Continued Prosperity of the Nation--Arthur's Report to Congress-- +Resolution to Inquire into Election Outrages in Virginia and +Mississippi--Reports of the Investigating Committee--Financial +Questions Discussed During the Session--Duties and Privileges of +Senators--Failure of the Marine National Bank and of Grant and Ward +in New York--Followed By a Panic in Which Other Institutions Are +Wrecked--Timely Assistance from the New York Clearing House--Debate +in the Senate on the National Bank System--Dedication of the John +Marshall Statue at Washington--Defeat of Ingalls' Arrears of Pensions +Amendment to Bill to Grant Pensions to Soldiers and Sailors of the +Mexican War--The Senate Listens to the Reading of the Declaration +of Independence on July 4. + +The message of President Arthur, submitted to Congress on the 4th +of December, 1883, presented a condition of remarkable prosperity +in the United States. We were at peace and harmony with all nations. +The surplus revenue for the fiscal year ending June 30, 1883, +amounted to $134,178,756.96, all of which was applied to the +reduction of the public debt. It was estimated that the surplus +revenue for the then fiscal year would be $85,000,000, and for the +next fiscal year $60,000,000. The President called the attention +of Congress to the revenue act of July, 1883, which had reduced +the receipts of the government fifty or sixty million dollars. +While he had no doubt that still further reductions might be wisely +made, he did not advise at that session a large diminution of the +national revenues. The whole tenor of the message was conservative +and hopeful. + +During this session, upon representations made to me and after full +reflection, I felt compelled, by a sense of public duty, to institute +an inquiry into events connected with recent elections held in the +States of Virginia and Mississippi. I did so with extreme reluctance, +for I did not care to assume the labor of such an investigation. +On the 23rd of January, 1884, I introduced a preamble setting out +in detail the general charges made as to events currently reported +in the public press prior to the election in November, 1883, in +Danville, Virginia, and Copiah county, Mississippi, with the +following resolution: + +"_Resolved_, That the committee on privileges and elections be, +and is hereby, instructed to inquire into all the circumstances of, +and connected with, the said alleged events, and into the condition +of the constitutional rights and securities before named of the +people of Virginia and Mississippi, and that it report, by bill or +otherwise, as soon as may be; and that it have the power to send +for persons and papers, and to sit during the sittings of the +Senate, and that it may employ a stenographer or stenographers." + +On the 29th of January I called up the resolution, and made the +following remarks explaining why I introduced the resolution and +requested an investigation: + +"Since the beginning of the present session, I have felt that the +recent events in the States of Virginia and Mississippi were of +such importance as to demand a full and impartial investigation of +the causes which led to them, of the real facts involved, and of +the proper constitutional remedy to prevent their recurrence, and, +if necessary, to further secure to all American citizens freedom +of speech in the open assertion of their political opinions and in +the peaceful exercise of their right to vote. + +"Now that sufficient time has elapsed to allay to some extent the +excitement caused by these events, I hope the Senate will make this +investigation, so that our citizens in every state may understand +how far the national government will protect them in the enjoyment +of their rights, or, if it is helpless or listless, that, no longer +relying upon the barren declarations of the constitution, each man +for himself may appeal to the right of self-defense, or to the +boasted American right of migration to more friendly regions. + +"The allegations in this resolution as to the Danville riot, or +massacre, are founded upon statements in the public prints, supported +by the oaths of witnesses, and their substantial truth is also +verified by the published statement of a Member of this body, a +Senator from the State of Virginia. + +"The allegations as to Mississippi are founded upon copious narratives +in the public prints, the proceedings of public meetings, and the +actions and failure to act of officers of the state government, +including governors, judges, courts, and juries. + +"I have not deemed it proper, at this stage of the investigation, +if it is to be made, to enter into the details of the facts, although +I have before me a voluminous collection of all these various +statements published in the papers of different political parties +and from different persons. + +"If these statements are true, then in both these states there have +been organized conspiracies to subvert the freedom of elections, +accompanied by murder and violence in many forms. The crimes +depicted are not ordinary crimes, common in all societies where +the criminal falls under the ban of public justice, and is pursued +by the officers of the law, tried, convicted, or acquitted; but +the crimes here alleged are that a prevailing majority subverts by +violence the highest constitutional rights and privileges of +citizens, and cannot, from their nature, be inquired of or punished +by ordinary tribunals. If they are true, then in those communities +the members of our party and one race have no rights which the +prevailing party is bound to respect. + +"It is not well to assume these allegations to be true without the +fullest investigation and inquiry by the legislative power, for, +if true, the gravest questions of public policy arise that we have +been called upon to consider since the close of the Civil War. I +have no desire to open up sectional questions or renew old strifes, +but would be glad to turn my back upon the past and devote myself +to questions of peace, development, and progress. Still, if these +allegations are true, it would be a cowardly shrinking from the +gravest public duty to allow such events to deepen into precedents +which would subvert the foundation of republican institutions and +convert our elections into organized crimes. I do not say these +allegations are true, but they come to us with such apparent seeming +of truth that we are bound to ascertain their truth or falsehood +by the most careful and impartial inquiry. + +"If the events at Danville were the results of a chance outbreak +or riot between opposing parties or different races of men, they +may properly be left to be dealt with by the local authorities; +but if the riot and massacre were part of machinery, devised by a +party to deter another party, or a race, from the freedom of +elections, or the free and open expression of political opinions, +then they constitute a crime against the national government, the +highest duty of which is to maintain, at every hazard, the equal +rights and privileges of citizens. + +"If the events in Copiah county, Mississippi (which is a large and +populous county containing twenty-seven thousand inhabitants, and +evidently a very productive county), were merely lawless invasions +of individual rights, then, though they involved murder as well as +other crimes, they should be left to local authority, and if justice +cannot be administered by the courts, and the citizen is without +remedy from lawless violence, then he must fall back upon his right +of self-defense, or, failing in that, he must seek a home where +his rights will be respected and observed. But if these individual +crimes involve the greater one of an organized conspiracy of a +party, or a race, to deprive another party or race of citizens of +the enjoyment of their unquestioned rights, accompanied with overt +acts, with physical power sufficient to accomplish their purpose, +then it becomes a national question which must be dealt with by +the national government. + +"The war emancipated and made citizens of five million people who +had been slaves. This was a national act, and whether wisely or +imprudently done it must be respected by the people of all the +states. If sought to be reversed in any degree by the people of +any locality it is the duty of the national government to make +their act respected by all its citizens. It is not now a question +as to the right to stop at an inn, or to ride in a car, or to cross +a bridge, but it is whether the people of any community can, by +organized fraud, terror, or violence, prevent a party or a race of +citizens from voting at an election, or the expression of opinions, +or deny to them the equal protection of the law. No court has ever +denied the power of the national government to protect its citizens +in their essential rights as freemen. No man should be allowed to +hold a seat in either House of Congress whose election was secured +by crimes such as are depicted here. + +"Nor is it sufficient to say that the elections referred to were +not national elections in the sense that they did not involve the +election of a President or a Member of Congress. While the power +of Congress over the election of Senators, Representatives, and +the President extends to making and altering laws and regulations +passed by the respective states, and therefore is fuller than in +respect to state elections, yet the constitution provides that 'The +right of the people to be secure in their persons, houses, papers, +and effects, against unreasonable searches and seizures, shall not +be violated;' that 'All persons born or naturalized in the United +States, and subject to the jurisdiction thereof, are citizens of +the United States;' that 'No state shall make or enforce any law +which shall abridge the privileges or immunities of citizens of +the United States; nor shall any state deprive any person of life, +liberty, or property without due process of law, nor deny to any +person within its jurisdiction the equal protection of the laws;' +and that 'The right of citizens of the United States to vote shall +not be denied or abridged by the United States, or by any state, +on account of race, color, or previous condition of servitude.' +It was also declared that 'Congress shall have power to make all +laws which shall be necessary and proper for carrying into execution +the foregoing powers and all other powers vested by this constitution +in the government of the United States, or in any department or +office thereof.' Power is also given to Congress to enforce the +recent amendments by appropriate legislation. + +"If the essential rights of citizenship are overthrown by a state +or by the people of a state, with the sanction of the local +authorities within the limits of a state, then Congress, as the +legislative power of the United States, is bound to provide additional +safeguards, and should exhaust all the powers of the United States +government to maintain these essential rights of citizenship within +the limits of all the states, in as full and complete a manner as +it will guard and protect the unquestioned rights of citizens of +the United States within the domains of the most powerful nations +of the world. Surely a citizen of the United States has as much +right in any one of the states as he would have in a foreign land, +however remote or however powerful its government may be. Protection +at home in the secure enjoyment of the rights of person and property +is the foundation of all human government, without which its forms +are a mockery and with which mere forms of government become a +matter of indifference. Protection goes with allegiance, and +allegiance ceases to be a duty when protection is denied. + +"I can appreciate the great change that has occurred in the southern +states, the natural antagonisms which would raise by the emancipated +slaves mingling in the same community with their former masters, +with equal civil and political rights with those who had held them +as slaves; I can pardon the prejudices of race, of caste, and even +of local ties; and the American people have, I think, waited with +great forbearance, waited patiently for the time when constitutional +rights would be respected without regard to race, or color, or +creed, or party. If the time has come, as alleged in the papers +before me, when members of the Republican party, through whose +agency largely the existence of the government has been maintained +intact over the broad extent of our country, cannot express their +free opinions, cannot enjoy their constitutional rights, are murdered +at the ballot box without fear on the part of their murderers of +punishment, and driven from their homes by outrage and terror, and +that white and black alike are subject to ostracism and injustice, +and as a party are disfranchised in large portions of the regions +where in war they asserted and maintained the powers of the national +government, then indeed is patient inquiry demanded, and a full, +open, and manly assertion that the rights and equalities of citizens +shall be maintained and enforced at every hazard. + +"If the Copiah resolutions are the creed of the Democratic party +in the south, then indeed the war is a failure, and we must expect +again the fierce sectional excitement, deepened by injury and +disappointment. Written in the light of the events alleged to have +transpired in the presence of the men who wrote and adopted these +resolutions, they seem to me the very germ of despotism and barbarity, +and yet I am assured by a gentleman friendly to them that they are +the creed of nine-tenths of the party in power in Mississippi. I +should like to know--it is right that we should learn--the groundwork +of opinions so utterly repugnant to republican institutions. + +"In this investigation I would seek every palliation or excuse for +the conduct of the people complained of. I would give to their +motives and to the natural feelings of mankind in their situation +the most charitable construction. I would give to them all political +power they ever enjoyed, and, without unkindness, or pains, or +penalties, or even reproaches, I would extend to them every right, +favor, or facility, that is enjoyed by any citizen in any part of +our country; but when this concession is made to them I would demand +that in the states under their control the freedom and equality of +rights and privileges guaranteed by the constitution and the laws +to all citizens, white or black, native or naturalized, poor or +rich, ignorant or learned, Republican or Democrat, shall be secured +by the state government, or, if not, that their rights and privileges +shall be asserted and maintained by the national government. Upon +this issue I would appeal to every generous-minded man, to every +lover of his country, to everyone who wishes to enjoy his own rights +by his own fireside, free from embarrassment, to stand by those +who, yielding to others the protection of the laws in the enjoyment +of equal rights, will demand the same for themselves and for their +associates." + +General Mahone made a long and interesting speech in respect to +the Danville election. + +The resolution was adopted by a party vote, yeas 33, nays 29. As +the investigation ordered embraced two distinct series of events, +they were separately considered and reported upon by the committee +on privileges and elections. Mr. Hoar was chairman of the committee. +I was a member of the committee and assumed the chief work in the +examination of witnesses as to the events in Danville. Mr. Lapham +prepared the majority report, and Mr. Vance the report of the +minority. These reports, with the testimony taken, were printed +in a document containing 1,300 pages. The Copiah county matter +was referred to another sub-committee. As no affirmative action +was taken on these reports, I do not care to recite at any length +either the report or the evidence, but it is sufficient to say that +the allegations made in the preamble of the resolution were +substantially sustained by the testimony. There was a deliberate +effort on the part of the Democrats at Danville, and in other parts +of Virginia, to prevent the negroes from voting, and preceding the +November election this movement was organized by the formation of +clubs, and every means were adopted to intimidate and suppress the +Republican vote. A letter, called the Danville circular, was +prepared and issued to the southwest valley of Virginia, containing +the most inflammatory language, evidently intended to deter the +negroes from voting. + +The incidents connected with the Danville massacre preceding the +election were very fully stated in the report, and established +clearly that the massacre was planned at a Democratic meeting at +the opera house, at which five hundred or more had assembled. A +scuffle grew out of a pretended quarrel between Noel and Lawson, +two white men, and revolvers were drawn and warning given to the +colored men to stand back or they would every one of them be killed. +A colored policeman endeavored to separate the two men who were +fighting, and soon after there was a general firing from pistols +and guns by white men at the negroes, the number of shots being +variously estimated at from 75 to 250. The negroes fled. There +was no evidence that the negroes fired a shot until after the whites +fired a general volley at them, and the weight of the evidence was +that very few had any weapons, that they had gathered there in +their working clothes as they had come out of the factories, of +all ages and both sexes, unquestionably from curiosity and not with +any view of violence or preparation for it. The whites, on the +contrary, were generally armed, were expecting an outbreak and +obviously seeking a pretext for resorting to violence. Many of +the whites emptied their revolvers and the evidence showed that +Captain Graves reloaded his. There was conflicting evidence as to +the negroes having arms. Only one was shown to have exhibited any +before the firing, and the colored witnesses and many of the whites, +including some of the policemen, said they saw no arms in the hands +of the colored men except the one named, and there was no reliable +evidence that he fired. There was no evidence to be relied upon +that any of the colored men fired, except some witnesses stated +that the colored men, as they were running, fired over their +shoulders. The evidence tended to show that the violence was +premeditated, with the avowed purpose of intimidation. + +I do not follow this investigation further, as no doubt the condition +of affairs which led to it is now changed. The result was the +murder of four unoffending colored men and the wounding of many +others. The evidence seemed entirely clear that it was the +consummation of a deliberate purpose, for which the Democratic +clubs had fully prepared. + +I believe that the investigation, while it led to no important +measure, had a good effect, not only in Danville, but throughout +the south. The problem of the two races living together in the +same community with equal political rights is a difficult one, and +has come to be regarded by men of all parties as one that can only +be settled by each state or community for itself. It is impossible +for a government like ours, with limited powers, to undertake the +protection of life and property in any of the states except where +resistance is made to national authority. All the signs indicate +that a better feeling now exists between the two races, and their +common interests will lead both to divide on questions of public +policy, without regard to race or color. + +Among the bills passed on this Congress was one introduced by Mr. +Blair, of New Hampshire, and chiefly advocated by him, to aid in +the establishment and temporary support of common schools. It +provided for the appropriation of $120,000,000 to be distributed +among the states upon the basis of illiteracy, $15,000,000 for the +current fiscal year, and a smaller sum each year for fifteen years, +until the total sum was exhausted. The apportionment proposed +would have given to the southern states $11,318,394 out of the +$15,000,000. The money was not to be disbursed by the United +States, but was to be placed in the hands of state authorities. +The object designed of diminishing illiteracy in the south, especially +among the freedmen, was no doubt a laudable one, but the measure +proposed was so radical and burdensome, and so unequal in its +apportionment among the states, that I assumed it would be defeated, +but it passed the Senate by a large majority. The advocates of a +strict construction of the constitution voted for it in spite of +their theories. The bill, however, was defeated in the House of +Representatives. + +An interesting debate arose between Mr. Beck and myself, during +this session, upon the question of the sinking fund, which he seemed +to regard as a part of the public debt. It is, in fact, only a +treasury statement of the debt to be paid each year, and the amount +actually paid. In 1862, when the war was flagrant, Congress provided +that one per cent. of the principal of the public debt should be +paid each year as a "sinking fund." While the United States was +borrowing large sums and issuing its bonds, it was folly to pay +outstanding bonds, and this was not done until 1868, when the +treasury was receiving more money than it disbursed. In the +meantime, the treasury charged to the "sinking fund," annually, +the sum of one per cent. of the amount of outstanding securities +of the United States. When the receipts exceeded expenditures, so +much of the balance on hand as was not needed was applied to the +purchase of bonds, and such bonds were canceled and the amount paid +was placed to the credit of this fund. In the general prosperity +that followed, and until 1873, the sums thus credited increased so +that the amount of bonds paid was equal to, if not in excess of, +the annual charge against that fund, and the amount charged against +it prior to 1868. When the financial panic of 1873 occurred, the +revenues fell off so that they were insufficient to meet current +expenditures. This prevented any credits to the sinking fund until +1878, when the pendulum swung the other way, and the fund was +rapidly diminished by the bonds purchased from the surplus revenue, +and credited to the fund, so that when Mr. Beck interrogated me I +was able to say that the sinking fund had to its credit a considerable +sum; in other words, the United States had paid its debt more +rapidly than it had agreed to pay it. The term "sinking fund," as +applied to the national accounts, is a misleading phrase. It is +a mere statement whether we have or have not paid one per centum +of the public debt each year. There is no actual fund of the kind +in existence for national purposes. + +Another financial question was presented at this session and before +and since. The national banking act, when it passed in 1863, +provided that the circulating notes of national banks should be +issued for only ninety per cent. of the amount of United States +bonds deposited in the treasury for their security. At that time +bonds were worth in the market about fifty per cent. in coin, or +par in United States notes. Soon after the war, bonds advanced +far above par in coin and have been worth thirty per cent. premium. +Yet, in spite of this, Congress has repeatedly refused to allow +notes to be issued by national banks, to the par value of bonds +deposited on security, thus limiting the amount of bank notes +unreasonably. I introduced a bill early at this session to correct +this. It passed the Senate, but was ignored in the House. The +same result has happened at nearly every Congress since, even when +the bonds were so high as to deter the issue of bank notes when +they were greatly needed. + +During this session a delicate question arose whether a Senator +could refuse to vote when his name was called, and he was present +in the Senate. The Senate being so closely divided a few Senators +might, by refusing to answer to their names, suspend the business +of the Senate when a quorum was present. Mr. Bayard and myself +agreed that such a practice would be a breach of public duty, which +the Senate might punish. Senators may retire from the Chamber, +but the Senate can compel their attendance. If a case should arise +where a Senator, being present, and not paired, should, without +good reason, refuse to vote, he should be censured. The increase +in the number of Senators makes this question one of importance, +but I hope the time will never come when it practically shall arise. + +The Senate is properly a very conservative body, and never yields +a custom until it is demonstrated to be an abuse. The committee +on appropriations is a very important one. It is always composed +of experienced Senators, who are careful in making appropriations, +but there are appropriations which ought not to be referred to +them. Their chief duty is performed in the closing days of the +session, when all business is hurried, and they have little time +to enter into details. They are entirely familiar with the great +appropriations for the support of the government, and can best +judge in respect to them, but there are other appropriations which +ought to be passed upon by committees specially appointed for +specific duties, like that of the District of Columbia. No reason +can be given why these appropriations should not be acted upon by +such committees. It is true that the appropriation committee ought +to simply report such sums as are necessary to carry into execution +existing laws. That is their function, according to the rules, +and that function they can perform very well in regard to such +expenditures; but the expenditures of the government for the +District, rivers and harbors, fortifications, pensions, and certain +other objects, are not defined or regulated by law. In the case +of the District of Columbia, a few officers named in the appropriation +bill are provided for by law, but the great body of the expenditures +is for streets, alleys and public improvement, nine-tenths of all +the appropriations made for the District being, in their nature, +new items not fixed by existing law. + +On the 6th of May, 1884, the country was startled by the failure +of the Marine National Bank of New York, an institution that had +been in high credit and standing. The circumstances connected with +the failure excited a great deal of interest and profound surprise. +Immediately in connection with the failure of this bank the banking +firm of Grant & Ward, in the city of New York, failed for a large +amount. Their business was complicated with that of the Marine +National Bank, and disclosures were made which not only aroused +indignation but almost created a panic in the city of New York. + +Almost contemporaneous with this the insolvency of the Second +National Bank of New York, for a very large sum, became public, +and the alleged gross misconduct of the president of that bank, +John C. Eno, became a matter of public notoriety. Steps were taken +by the officers and stockholders of the bank, including the father +of the president, to relieve it from bankruptcy. + +Also, and in connection with the failure of the Marine National +Bank, there were disclosed financial operations of a strange and +extraordinary character of the president of that bank, James D. +Fish. All these events coming together caused much excitement and +disturbance in New York. They led to a great fall of securities, +to a want of confidence, and to a general run, as it is called, +upon banks and banking institutions, including the savings banks. +It appeared as if there were to be a general panic, a financial +revulsion, and wide-reaching distress. + +At that time also, and in connection with the other events, came +the temporary suspension of the Metropolitan National Bank, one of +the oldest, largest, and in former times considered among the best, +of all the banks in the city of New York. This was partly caused +by rumors and stories of large railroad operations and indebtedness +of Mr. Seney, the president of the bank, which resulted in a gradual +drawing upon the bank. + +At once the Secretary of the Treasury did what he could to relieve +the money market, by prepaying bonds which had been called in the +process of the payment of the public debt; but the principal relief +given to the market at that time was the action of the Clearing +House Association of New York, by the issue of over $24,000,000 of +clearing house certificates. This was purely a defensive operation +adopted by the associated banks of New York, fifteen of which are +state institutions and the balance national banks. + +All that was done in New York to prevent a panic was done by the +banks themselves. The government of the United States had no lot +or parcel in it except so far as the Secretary of the Treasury +prepaid bonds that had already been called, a transaction which +has been done a hundred times. So far as the government was +concerned it had nothing to do with these banks; the measures of +relief were furnished by the banks themselves. + +This condition of financial affairs led to a long debate in the +Senate, commencing on the 17th of June, on the merits and demerits +of the system of national banks, and especially of the clearing +house of the city of New York. The comptroller of the currency +had taken active and efficient measures to protect the interests +of the United States. He was called before the committee on finance +and gave a full statement of these measures. It was apparent that +the temporary panic grew out of the reckless and criminal conduct +of a few men and not from defects in the national bank system or +the clearing house. The debate that followed, in the Senate, was +mainly between Morgan, Beck and myself. I stated fully the methods +of conducting the business of the clearing house, a corporation of +the State of New York, and closed as follows: + +"As the prosecution against John C. Eno is now pending in Canada, +a foreign country, as a matter of course no one can state what will +be the result of it. We only know that proper legal proceedings +are now being urged to have an extradition, and if he is brought +within the jurisdiction of the courts as a matter of course the +prosecution can then be pushed. So with James D. Fish. Indictments +have been had and are now pending against him for a violation, not +only of the national banking act, but I believe also for a violation +of the state law; and the same is to be said of Ferdinand Ward. +These three persons are the only ones who have been charged with +fraudulent and illegal transactions leading to these financial +disasters. The Metropolitan bank, thanks to the agency and the +aid that was given in a trying time, in now going on and doing +business as of old, no doubt having met with large losses. + +"It is a matter of satisfaction that with the single exception of +the Marine Bank, of New York, no national bank has been overwhelmed +by this disaster. It is true that the Second National Bank was +bankrupted by the crimes and wrongs of John C. Eno, but his father, +with a sensitive pride not to allow innocent persons to suffer from +the misconduct of his son, with a spirit really worthy of commendation, +here or anywhere else, threw a large sum of money into the maelstrom +and saved not only the credit of the bank and advanced his own +credit, but to some extent, as far as he could at least, expiated +the fault, the folly, and the crime of his son. The Metropolitan +Bank is relieved from its embarrassments by its associate banks. +The losses caused by the speculations of its president did not +entirely fall upon the bank. That bank, now relived from the +pressure of unexpected demands, is pursuing its even tenor. It +seems to me that all these facts taken together show the strength +and confidence that may well be reposed in the national banking +system. The law cannot entirely prevent fraud and crime, but it +has guarded the public from the results of such offense far better +than any previous system." + +On the 10th of May, 1884, which happened to be my birthday, the +statue of John Marshall, formerly Chief Justice of the United +States, was dedicated. This is a bronze statue in a sitting posture, +erected by the bar of Philadelphia and the Congress of the United +States. A fund had been collected shortly after the death of +Marshall, but it was insufficient to erect a suitable monument, +and it was placed in the hands of trustees and invested as "The +Marshall Memorial Fund." On the death of the last of the trustees, +Peter McCall, it was found that the fund had, by honest stewardship, +increased sevenfold its original amount. This sum, with an equal +amount appropriated by Congress, was applied to the erection of a +statue to the memory of Chief Justice Marshall, to be placed in a +suitable reservation in the city of Washington. The artist who +executed this work was W. W. Story, a son of the late Justice Story +of the Supreme Court. I was chairman of the joint committee on +the library and presided on the occasion. Chief Justice Waite +delivered an appropriate address. He was followed by William Henry +Rawle, of Philadelphia, in an eloquent oration, closing as follows: + +"And for what in his life he did for us, let there be lasting +memory. He and the men of his time have passed away; other +generations have succeeded them; other phases of our country's +growth have come and gone; other trials, greater a hundredfold than +he or they could possibly have imagined, have jeoparded the nation's +life; but still that which they wrought remains to us, secured by +the same means, enforced by the same authority, dearer far for all +that is past, and holding together a great, a united and happy +people. And all largely because he whose figure is now before us +has, above and beyond all others, taught the people of the United +States, in words of absolute authority, what was the constitution +which they ordained, 'in order to form a perfect union, establish +justice, insure domestic tranquility, provide for the common defense, +promote the general welfare, and secure the blessings of liberty +to themselves and their posterity.' + +"Wherefore, with all gratitude, with fitting ceremony and circumstance; +in the presence of the highest in the land; in the presence of those +who make, of those who execute, and of those who interpret, the +laws; in the presence of those descendants in whose veins flows +Marshall's blood, have the bar and the Congress of the United States +here set up this semblance of his living form, in perpetual memory +of the honor, the reverence and the love which the people of this +country bear to the great chief justice." + +During this session Mr. Ingalls offered to a House bill granting +a pension to soldiers and sailors of the Mexican War, the following +amendment: + +"That all pensions which have been or which may hereafter be granted +in consequence of death occurring from a cause which originated in +the service since the 4th day of March, 1861, or in consequence of +wounds or injuries received or disease contracted since that date +in the service and in the line of duty, shall commence from the +death or discharge of the person on whose account the claim has +been or is hereafter granted, if the disability occurred prior to +discharge, and if such disability occurred after the discharge, +then from the date of actual disability, or from the termination +of the right of the party having prior title to such pension." + +I opposed this sweeping provision with much reluctance, as I have +always favored the granting of the most liberal pensions consistent +with the public interests. I said: + +"I regret very much to oppose any proposition that is favored by +the Union soldiers of the American army; and I perhaps should feel +some hesitation in doing it, only that I know very well that the +soldiers themselves, like all other citizens, are divided in opinion +as to this measure. + +"This proposition repeals all restrictions as to time upon applications +to be made for arrears of pensions, and extends to all persons back +to the war or date of discharge or disability, not only of those +who have heretofore applied, but of those who may hereafter apply. +It removes absolutely all restrictions upon the applications for +arrears of pensions. And if this only involved ten or even twenty +million dollars, I might still hesitate, because I have always, +since the close of the war, voted for every measure that has been +offered in good faith for the benefit of the Union soldiers. My +heart, my feelings are all with them. I appreciate the value of +their services, the enormous benefits they have conferred upon the +people of the America for generations yet unborn, and I hesitate +therefore to oppose any wish that they may express through their +organs. + +"This measure involves an immense sum of money. That alone would +not be conclusive. But here is a motion made by a Senator, without +the report or sanction of any committee of this body, to put upon +the people of the United States a great demand, ranging anywhere +up to $246,000,000, a proposition so indefinite in character that +the commissioner of pensions is utterly unable to give us any +approximate estimate, but gives his guess as near as he can. He +says that this proposition will involve the expenditure of +$246,000,000." + +Mr. Ingalls made a sturdy effort for his amendment, and quoted a +declaration of the Republican national convention in favor of +arrears of pensions, to which I replied that, when I remembered +that the platform of the last Republican convention had been made +up in a few hours, on a sweltering hot day, by forty-two men hastily +called together, most of whom never saw each other before, I did +not think it ought to be taken as a guide for Senators in the +performance of their public duties. + +After full discussion the amendment was rejected. + +My position was highly commended by the public press and by many +distinguished soldiers, including Governor Foraker, who wrote me, +saying: "It may be some gratification to you to know that your +course, in regard to the pension bill, meets with the earnest +approval of all right-minded men in this part of the state." + +On the 3rd of July the following resolution was adopted by the +Senate on my motion: + +"_Resolved_, That the Senate will meet at the usual hour on Friday, +the 4th day of July instant, and, after the reading of the journal +and before other business is done, the secretary of the Senate +shall read the Declaration of American Independence." + +On introducing the resolution, I said: + +"Never till during our Civil War, so far as the records show or as +is known or is recollected, did Congress meet on the 4th of July. +During the Civil War we did meet habitually on the 4th of July, +but it was only on the ground that those who had control then +believed that the business then requiring attention was proper to +be done on the 4th of July. We have only met once since on the +4th of July, and that was in 1870, at a time of great political +excitement. An effort was made to adjourn when the Senate met that +day, but the session was continued--a long, exciting, and unpleasant +session--on the 4th of July, 1870. + +"I do not doubt that to-morrow it will be well to sit, because the +committees of conference are carrying on their business and I have +no objection to sitting; but I think we ought to recognize, by +common consent, the importance of the day and the fact that it is +a national anniversary celebrated all over the United States, by +reading that immortal paper which is the foundation of American +independence." + +Congress adjourned July 7, 1884. + + +CHAPTER XLVII. +MY PARTICIPATION IN THE CAMPAIGN OF 1884. +Again Talked of as a Republican Candidate for the Presidency--I +Have no Desire for the Nomination--Blaine the Natural Candidate of +the Party--My Belief that Arthur Would be Defeated if Nominated-- +Speech at Washington, D. C., for Blaine and Logan--Opening of the +Ohio Campaign at Ashland--Success of the Republican State Ticket +in October--Speeches in Boston, Springfield, Mass., New York and +Brooklyn--Address to Business Men in Faneuil Hall--Success of the +National Democratic Ticket--Arthur's Annual Message to Congress-- +Secretary McCulloch's Recommendations Concerning the Further Coinage +of Silver Dollars--Statement of My Views at This Time--Statue to +the Memory of General Lafayette--Controversy Between General Sherman +and Jefferson Davis. + +On the 3rd of June, 1884, during the session of Congress, the +national Republican convention to nominate Republican candidates +for President and Vice President, was held at Chicago. Prior to +that time the papers had been full of the merits and demerits of +candidates, and my name was mentioned among them. I had early +announced, in interviews and letters, that I was not a candidate. +The following statement was generally published in Ohio: + +"I am in no sense a candidate, and would not make an effort for +the nomination. I would not even express my opinion as to who +should be delegates from my own district or what their action should +be. Four years ago I thought it best to be a candidate. I believed +that the logic of events at that time justified such action. The +reasons I need not state. Now there is no such condition and I +would not enter a contest even for the indorsement of my own +constituency. Many of my friends write me complaining letters +because I refuse to make such an issue. Believing that the +convention, when it meets, should be free, uninstructed, and in +shape to do the very best thing for the whole party, I have counseled +by friends to that end. A united and enthusiastic party is more +important than one man, and hence I am for bending every energy to +the first purpose, and am not a candidate." + +I had not expressed the slightest desire to make such a contest. +When approached by personal friends I dissuaded them from using my +name as a candidate. I neither asked nor sought anyone to be a +delegate. When the convention met, the Ohio delegation was divided +between Blaine and myself, and this necessarily prevented any +considerable support of me outside of the state. I was not sorry +for it. I regarded the nomination of Blaine as the natural result +under the circumstances. + +The strength of Arthur, his principal competitor, grew out of his +power and patronage as President. He was a gentleman of pleasing +manners, but I thought unequal to the great office he held. He +had never been distinguished in political life. The only office +he had held of any importance was that of collector of the port of +New York, from which he was removed for good causes already stated. +His nomination as Vice President was the whim of Roscoe Conkling +to strike at President Hayes. If nominated he would surely have +been defeated. In the then condition of political affairs it is +not certain that any Republican would have been elected. + +The weakness of the nomination of Blaine was the strong opposition +to him in the State of New York. The selection by the Democratic +convention of Grover Cleveland as the candidate for President, and +of Thomas A. Hendricks for Vice President, was made in view of the +necessity of carrying the two doubtful States of New York and +Indiana, which it was well understood would determine the election. + +I promptly took an active part in support of the Republican ticket. +A meeting to ratify the nomination of James G. Blaine and John A. +Logan was held at Washington, D. C., on the 19th of June, at which +I made a speech, which, as reported, was as follows: + +"It is one of the curious customs of American politics that when +anybody is nominated for office, his competitors are the first to +be called upon to vouch for the wisdom of the choice. Perhaps that +is the reason I am called upon now. Though I did not consider +myself as much of a candidate, I am ready to accept, approve and +ratify the action of the Chicago convention. I will support the +nomination of Blaine and Logan as heartily as I have done those of +Fremont and Lincoln and Grant and Hayes and Garfield. And this I +would do, fellow-citizens, even if they were less worthy than I +know them to be of the distinguished honor proposed for them. I +would do it for my own honor. I have no patience with any man who, +for himself or any other person, would take his chances for success +in a political convention, and when disappointed would seek to +thwart the action of the convention. Political conventions are +indispensable in a republican government, for it is only by such +agencies, that opposing theories can be brought to the popular +judgment. These can only be presented by candidates chosen as +standard bearers of a flag, or a cause, or a party. + +"That Blaine and Logan have been fairly nominated by the free choice +of our 800 delegates, representing the Republicans of every state, +county and district in the broad extent of our great country, is +admitted by every man whose voice has been heard. They are not +'dark horses.' Their names are known to fame; the evil and good +that men could say of them have been said with a license that is +a shame to free discussion. Traveling in peace and in war through +the memorable events of a quarter of a century, they have kept +their place in the busy jostling of political life well in the +foreground. And now they have been selected from among millions +of their countrymen to represent--not themselves, but the Republican +party of the United States. + +"They represent the American Union, one and indivisible, snatched +by war from the perils of secession and disunion. They represent +a strong national government, able, I trust, in time, not only to +protect our citizens from foreign tyranny, but from local cruelty, +intolerance, and oppression. + +"They represent that party in the country which would scorn to +obtain or hold power by depriving, by crime and fraud, more than +a million of men of their equal rights as citizens. They represent +a party that would give to the laboring men of our country the +protection of our revenue laws against undue competition with +foreign labor. + +"They represent the power, the achievements, and the aspirations +of the Republican party that now for twenty-four years has been +greatly trusted by the people, and in return has greatly advanced +your country in strength and wealth, intelligence, courage and +hope, and in the respect and wonder of mankind. + +"Fellow Republicans, we are about to enter into no holiday contest. +You have to meet the same forces and principles that opposed the +Union army in war; that opposed the abolition of slavery; that +sought to impair the public credit; that resisted the resumption +of specie payment. They are recruited here and there by a deserter +from our ranks, but meanwhile a generation of younger men are coming +to the front, in the south as well as in the north. They have been +educated amidst memorable events with patriotic ardor, love of +country, pride in its strength and power. They are now determined +to overthrow the narrow Bourbon sectionalism of the Democratic +party. They live in the mountains and plains of the west. They +breathe the fresh air of Virginia, North Carolina, and Tennessee. +They are the hardy, liberty-loving laborers of every state. + +"They come from the fatherland, they come from old Ireland. They +are the active spirits, native and naturalized, of a generation of +free men who never felt the incubus of slavery, and who wish only +as Americans to make stronger and plant deeper the principles of +the Republican party. It is to these men we who have grown old in +this conflict wish now to hand over the banner we have borne. Let +them take it and advance it to higher honors. Let them spread the +influence of our republican institutions north and south, until +the whole continent of America shall be a brotherhood of republics. + +"Let them assert the rights of American citizenship, so that they +will be respected as were the rights of citizens of the Roman +republic. Let them deal with this most difficult and subtle problem +of social politics so as to secure to the man who labors his just +share of the fruits of his labor. Let them improve even upon the +protective policy we have pursued, so as to diversify our industries +and plant in all parts of our country the workshops of millions of +well-paid contented citizens. Let them do what we have not been +able to do since the war--restore our commerce to every port and +protect it under our flag in every sea. + +"My countrymen, I regret to say it, you cannot accomplish any of +these great objects of national desire through the agency of the +Democratic party. It cannot be made an instrument of progress and +reform. Its traditions, its history for twenty-five years, and +its composition, forbid it. You may punish us for our shortcomings +by its success, but you will punish yourselves as well and stay +the progress of your country. A party that with seventy majority +in the House cannot pass a bill on any subject of party politics, +great or small, is not fit to govern the country. + +"Every advance, every reform, every improvement, the protection of +your labor, the building of your navy, the assertion of your rights +as a free man, the maintenance of good money--a good dollar, good +in every land, worth a dollar in gold--all these objects of desire +must await the movements of the Republican party. It may be slow, +but if you turn to the Democratic party you will always find it +watching and waiting, good, steady citizens of the olden time, +grounded on the resolutions of '98 and the 'times before the wah.' + +"It is said that Blaine is bold and aggressive; that he will obstruct +the business interests of the country. I would like to try such +a President. He might shake off some of the cobwebs of diplomacy +and invite the attention of mankind to the existence of this country. +There will always be conservatism enough in Congress, and inertness +enough in the Democratic party, to hold in check even as brilliant +a man as James G. Blaine. What we want now is an American policy +broad enough to embrace the continent, conservative enough to +protect the rights of every man, poor as well as rich, and brave +enough to do what is right, whatever stands in the way. We want +protection to American citizens and protection to American laborers, +a free vote and a fair count, an assertion of all the powers of +the government in doing what is right. It is because I believe +that the administration of Blaine and Logan will give us such a +policy, and that I know the Democratic party is not capable of it, +that I invoke your aid and promise you mine to secure the election +of the Republican ticket." + +Upon the adjournment of Congress, I took an active part in the +campaign, commencing with a speech at Ashland, Ohio, on the 30th +of August, and from that time until the close of the canvass I +spoke daily. The meetings of both parties were largely attended, +notably those at Springfield, Cincinnati, Columbus, and Cleveland. + +After the October election in Ohio, which resulted in the success +of the Republican ticket, I engaged in the canvass in other states, +speaking in many places, among others in Faneuil Hall, Boston, in +Springfield, Massachusetts, in Chickering Hall, New York, and in +the Brooklyn Grand Opera House. + +I felt greater timidity in speaking in Faneuil Hall than anywhere +else. The time, place, and manner of the meeting were so novel, +that a strong impression was made upon my mind. In the middle of +the day, when the streets were crowded, I was conducted up a narrow, +spiral passageway that led directly to a low platform on one side +of the hall, where were the officers of the meeting, and there I +faced an audience of men with their hats and overcoats on, all +standing closely packed, with no room for any more. It was a +meeting of business men of marked intelligence, who had no time to +waste, and whose countenances expressed the demand, "Say what you +have to say, and say it quickly." I was deeply impressed with the +historical associations of the place, recalling the Revolutionary +scenes that had occurred there, and Daniel Webster and the great +men whose voices had been heard within its walls. I condensed my +speech into less than an hour, and, I believe, gave the assemblage +satisfaction. I was followed by brief addresses from Theodore +Roosevelt and others, and then the meeting quietly dispersed. + +While in Springfield, I heard of the unfortunate remark of Dr. +Burchard to Blaine about "Rum, Romanism and Rebellion," and felt +that the effect would be to offend a considerable portion of the +Irish voters, who had been very friendly to Blaine. After that +incident, I met Mr. Blaine at the Chickering Hall meeting, and went +with him to Brooklyn, where we spoke together at the Academy of +Music. + +The election, a few days afterward, resulted in the success of the +Democratic ticket. The electoral vote of New York was cast for +Cleveland and Hendricks. It was believed at the time that this +result was produced by fraudulent voting in New York city, but the +returns were formal, and there was no way in which the election +could be contested. + +Congress met on the 1st of December, 1884. President Arthur promptly +sent his message to each House. He congratulated the country upon +the quiet acquiescence in the result of an election where it had +been determined with a slight preponderance. Our relations with +foreign nations had been friendly and cordial. The revenues of +the government for the fiscal year ending June 30, 1884, had been +$348,519,869.92. The expenditures for the same period, including +the sinking fund, were $290,916,473.83, leaving a surplus of +$57,603,396.09. He recommended the immediate suspension of the +coinage of silver dollars and of the issuance of silver certificates, +a further reduction of internal taxes and customs duties, and that +national banks be allowed to issue circulating notes to the par +amount of bonds deposited for their security. He closed with these +words: + +"As the time draws nigh when I am to retire from the public service, +I cannot refrain from expressing to Members of the national +legislature, with whom I have been brought into personal and official +intercourse, my sincere appreciation of their unfailing courtesy, +and of their harmonious co-operation with the Executive in so many +measures calculated to promote the best interests of the nation. + +"And to my fellow-citizens generally, I acknowledge a deep sense +of obligation for the support which they have accorded me in my +administration of the executive department of this government." + +Hugh McCulloch, upon the death of Mr. Folger, had become Secretary +of the Treasury. His report contained the usual statements in +regard to government receipts and expenditures and the public debt, +but the chief subject discussed was the coinage of silver dollars. +He said: + +"There are some financial dangers ahead which can only be avoided +by changes in our financial legislation. The most imminent of +these dangers, and the only one to which I now ask the attention +of Congress, arises from the continued coinage of silver and the +increasing representation of it by silver certificates. I believe +that the world is not in a condition, and never will be, for the +demonetization of one-third of its metallic money; that both gold +and silver are absolutely necessary for a circulating medium; and +that neither can be disused without materially increasing the burden +of debt, nor even temporarily degraded by artificial means without +injurious effect upon home and international trade. But I also +believe that gold and silver can only be made to maintain their +comparative value by the joint action of commercial nations. Not +only is there now no joint action taken by these nations to place +and keep silver on an equality with gold, according to existing +standards, but it has been by the treatment it has received from +European nations greatly lessened in commercial value. + +* * * * * + +"After giving the subject careful consideration, I have been forced +to the conclusion that unless both the coinage of silver dollars +and the issue of silver certificates are suspended, there is danger +that silver, and not gold, may become our metallic standard. This +danger may not be imminent, but it is of so serious a character +that there ought not to be delay in providing against it. Not only +would the national credit be seriously impaired if the government +should be under the necessity of using silver dollars or certificates +in payment of gold obligations, but business of all kinds would be +greatly disturbed; not only so, but gold would at once cease to be +a circulating medium, and severe contraction would be the result." + +The first important subject considered by the Senate was the coinage +of silver dollars and the consequent issue of silver certificates. +The debate was founded upon a resolution offered by Senator Hill, +of Colorado, against the views expressed by the President in his +message and by Secretary McCulloch in his report. + +On the 15th of December I made a speech covering, as I thought, +the silver question, not only of the past but of the probable +results in the future. The amount of silver dollars then in the +treasury was $184,730,829, and of silver certificates outstanding +$131,556,531. These certificates were maintained at par in gold +by being received for customs duties. They were redeemable in +silver dollars, but were in fact never presented for redemption. +The silver dollars could only be used in the redemption of certificates +or by issue in payment of current liabilities. With the utmost +exertions to put the silver dollars in circulation only fifty +million could be used in this way. To have forced more into +circulation would have excited a doubt whether any of our paper +money could be maintained at par with gold. + +When urged to express a remedy for this condition I said that if +I had the power to dictate a law I would ascertain by the best +means the exact market value of the two metals, and then put into +each silver dollar as many grains of standard silver as would be +equal in market value to 25.8 grains of standard gold. I said that +if the price of silver fell the coin would still circulate upon +the fiat of the government. If silver advanced in relative value +the amount of silver in the coin could, at stated periods, be +decreased. Bimetallism could only exist where the market value of +the two metals approached the coinage value, or where a strong +government, with a good credit, received and paid out coins of each +metal at parity with each other. The only way to prevent a variation +in the value of the two metals, and the exportation of the dearer +metal, would be, by an international agreement between commercial +nations, to adopt a common ratio somewhat similar in substance to +that of the Latin Union, each nation to receive as current money +the coins of the other and each to redeem its own coins in gold. + +Mr. Beck replied to my argument, and the debate between us continued +during two or three days. The weakness of the silver advocates +was that they were not content with the coinage of more silver coin +than ever before, but were determined that the holder of silver in +any form might deposit it in the mint and have it coined into +dollars for his benefit at the ratio of sixteen to one, when its +market value had then fallen so that twenty ounces of silver were +worth but one ounce in gold, and since has fallen in value so that +thirty ounces of silver are worth but one ounce in gold. + +With free coinage in these conditions no gold coins would be minted +and all the money of the United States would be reduced in value +to the sole silver standard, and gold would be hoarded and exported. +This debate has been continued from that date to this, not only in +Congress, but in every schoolhouse in the United States, and in +all the commercial nations of the world. I shall have occasion +hereafter to recur to it. + +On the 18th of December I reported, from the joint committee on +the library, an amendment to an appropriation bill providing for +the construction of a statue to the memory of General Lafayette, +in the following words: + +"That the president _pro tempore_ of the Senate and the speaker of +the House of Representative do appoint a joint committee of three +Senators and three Representatives, with authority to contract for +and erect a statue to the memory of General Lafayette and his +compatriots; and said statue shall be placed in a suitable public +reservation in the city of Washington, to be designated by said +joint committee." + +The amendment was agreed to by both Houses. The result was the +erection, on the southeast corner of Lafayette Square in Washington, +of the most beautiful and artistic bronze monument in that city. + +A somewhat sharp and combative controversy had taken place in the +newspapers between General Sherman and Jefferson Davis, in regard +to the position of the latter on the rights of the Confederate +states in the spring of 1865. General Sherman, in a letter to me +dated December 4, 1884, published in the "Sherman Letters," narrated +his remarks at a meeting of the Frank Blair Post, G. A. R., No. 1, +in St. Louis, in which he said that he had noticed the tendency to +gloss over old names and facts by speaking of the Rebellion as a +war of secession, while in fact it was a conspiracy up to the firing +on Fort Sumter, and a rebellion afterwards. He described the +conspiracy between Slidell, Benjamin and Davis, and the seizure of +the United States arsenal at Baton Rouge, and other acts of war, +and then said: + +"I had seen a letter of Mr. Davis showing that he was not sincere +in his doctrine of secession, for when some of the states of the +Confederacy, in 1865, talked of 'a separate state action,' another +name for 'secession,' he stated that he, as president of the +Confederacy, would resist it, even if he had to turn Lee's army +against it. I did see such a letter, or its copy, in a captured +letter book at Raleigh, just about as the war was closing." + +Davis called for the production of the identical letter. General +Sherman said he could not enter into a statement of the controversy, +but he believed the truth of his statement could be established, +and that he would collect evidence to make good his statement. I +replied to his letter as follows: + + "United States Senate, } + "Washington, D. C., December 10, 1884.} +"Dear Brother:--. . . I can see how naturally you spoke of Jeff. +Davis as you did, and you did not say a word more than he deserved. +Still, he scarcely deserves to be brought into notice. He was not +only a conspirator, but a traitor. His reply was a specimen of +impotent rage. It is scarcely worth your notice, nor should you +dignify it by a direct rejoinder. A clear, strong statement of +the historical facts that justified the use of the word 'conspirator,' +which you know very well how to write, is all the notice required. +Do not attempt to fortify it by an affidavit, as some of the papers +say you intend to do, but your statement of the letters seen by +you, and the historical facts known by you, are enough. I have +had occasion, since your letter was received, to speak to several +Senators about the matter, and they all agree with me that you +ought to avoid placing the controversy on letters which cannot now +be produced. The records have been pretty well sifted by friendly +rebels, and under the new administration it is likely their further +publication will be edited by men who will gladly shield Davis at +the expense of a Union soldier. The letter of Stephens to Johnson +is an extraordinary one. Its publication will be a bombshell in +the Confederate camp. I will deliver the copy to Colonel Scott to- +morrow. One or two paragraphs from it go far to sustain your stated +opinion of Jeff. Davis. . . . + + "Very affectionately yours, + "John Sherman." + +This controversy came before the Senate by a resolution offered by +Senator Hawley, calling upon the President to communicate to the +Senate an historical statement concerning the public policy of the +executive department of the Confederate states during the late War +of the Rebellion, reported to have been lately filed in the war +department by General William T. Sherman. Upon this resolution a +somewhat acrimonious debate occurred, participated in by Senators +Harris, Hawley, Vest, George, Ingalls and others. During the debate +I felt constrained, on account of my relationship with General +Sherman, to give his version of the controversy between himself +and Jefferson Davis. + +I disliked the introduction of such a controversy twenty years +after the war was over, but still, as the matter was before us, I +entered at considerable length into a history of the controversy, +and expressed my decided opinion that General Sherman was entirely +justified in denouncing Davis and his associates, before the Civil +War commenced, as conspirators and traitors. I closed my remarks +as follows: + +"I am sorry this debate has sprung up. I was in hope, with the +Senator from Connecticut, who introduced the resolution, that these +papers would be published, and nothing more would be said about +them here, but let the people determine the issue and let this +matter go down in history. But, sir, whenever, in my presence, in +a public assemblage, Jefferson Davis shall be treated as a patriot, +I must enter my solemn protest. Whenever the motives and causes +of the war, the beginning and end of which I have seen, are brought +into question, I must stand, as I have always stood, upon the firm +conviction that it was a causeless rebellion, made with bad motives, +and that all men who led in that movement were traitors to their +country." + +Senator Lamar answered my speech with some heat, and closed as +follows: + +"One other thing. We, of the south, have surrendered upon all the +questions which divided the two sides in that controversy. We have +given up the right of the people to secede from the Union; we have +given up the right of each state to judge for itself of the +infractions of the constitution and the mode of redress; we have +given up the right to control our own domestic institutions. We +fought for all these, and we lost in that controversy; but no man +shall, in my presence, call Jefferson Davis a traitor, without my +responding with a stern and emphatic denial." + +Senator Vest closed the debate in a few remarks, and the subject- +matter was displaced by the regular order. While I regretted this +debate, I believed that the speeches made by the Republican Senators +properly defined the Rebellion as, first, a conspiracy; second, +treason; third, a rebellion subdued by force, finally followed by +the most generous treatment of those engaged in the Rebellion that +is found in the history of mankind. + +During this session there was a very full debate upon the subject +of regulating interstate commerce, in which I participated. The +contest was between what was known as the Reagan bill, which passed +the House of Representatives, and the Senate bill. I expressed +the opinion that the Senate bill was better than the Reagan bill, +and, although much popular favor had been enlisted from time to +time in favor of the Reagan bill, because it grappled with and +dealt with the railroad corporations, the Senate bill did more; it +not only grappled with them, but laid a broad and deep foundation +for an admirable system of railroad law, which should govern all +the railroads of the country. + + +CHAPTER XLVIII. +DEDICATION OF THE WASHINGTON MONUMENT. +Resolution of Senator Morrill Providing for Appropriate Dedicatory +Ceremonies--I Am Made Chairman of the Commission--Robert C. Winthrop's +Letter Stating His Inability to Attend the Exercises--Letters of +Regret from General Grant and John G. Whittier--Unfavorable Weather +for the Dedication--My Address as Presiding Officer--The President's +Acceptance of the Monument for the Nation--Mr. Winthrop's Address +Read in the House by John D. Long--Inauguration of the First +Democratic President Since Buchanan's Time--Visit to Cincinnati +and Address on the Election Frauds--Respects to the Ohio Legislature +--A Trip to the West and Southwest--Address on American Independence. + +On the 13th of May, 1884, the President approved the following +joint resolution, introduced by Mr. Morrill, from the committee on +public buildings and grounds: + +"Whereas, The shaft of the Washington monument is approaching +completion, and it is proper that it should be dedicated with +appropriate ceremonies, calculated to perpetuate the fame of the +illustrious man who was 'first in war, first in peace, and first +in the hearts of his countrymen:' Therefore, + +"_Resolved by the Senate and House of Representatives of the United +States of America in Congress assembled_, That a commission to +consist of five Senators appointed by the president of the Senate, +eight Representatives appointed by the speaker of the House of +Representatives, three members of the Washington Monument Society, +and the United States engineer in charge of the work be, and the +same is hereby, created, with full powers to make arrangements for,-- + +"First. The dedication of the monument to the name and memory of +George Washington, by the President of the United States, with +appropriate ceremonies. + +"Second. A procession from the monument to the capitol, escorted +by regular and volunteer corps, the Washington Monument Society, +representatives of cities, states, and organizations which have +contributed blocks of stone, and such bodies of citizens as may +desire to appear. + +"Third. An oration in the hall of the House of Representatives, +on the twenty-second day of February, _anno Domini_ eighteen hundred +and eighty-five, by the Honorable Robert C. Winthrop, who delivered +the oration at the laying of the corner stone of the monument in +eighteen hundred and forty-eight, with music by the Marine Band. + +"Fourth. Salutes of one hundred guns from the navy yard, the +artillery headquarters, and such men-of-war as can be anchored in +the Potomac." + +I was chairman of the commission appointed under this resolution, +and, in compliance with it, invited Mr. Winthrop to deliver the +oration. He expressed his deep sense of the honor conferred upon +him, but had a doubt whether he ought not to decline on account of +his failing health. Mr. Morrill and I strongly insisted upon his +acceptance and he eventually consented, though not without misgivings +which were unhappily justified. + +A short time before the day appointed for the dedication I received +from him the following autograph letter, which is interesting, not +only on account of the eminence of its author, but of the important +event about to be celebrated: + + "90 Marlborough Street, Boston, February 13, 1885. +"Hon. John Sherman, Chairman, etc. + +"Dear Senator Sherman:--It is with deep regret that I find myself +compelled to abandon all further hope of being at the dedication +of the Washington monument on the 21st instant. I have been looking +forward to the possibility of being able to run on at the last +moment, and to pronounce a few sentences of my oration before +handing it to Governor Long, who has so kindly consented to read +it. But my recovery from dangerous illness has been slower than +I anticipated, and my physician concurs with my family in forbidding +me from any attempt to leave home at present. + +"I need not assure the commissioners how great a disappointment it +is to me to be deprived of the privilege of being present on this +most interesting occasion. I am sure of their sympathy without +asking for it. + +"Please present my respectful apologies to your associates, and +believe me, + + "With great regard, very faithfully yours, + "Robt. C. Winthrop. +"P. S.--This is the first letter I have attempted to write with my +own pen since my illness." + +Among the numerous regrets received by the commission was the +following: + + "Oak Knoll, Danvers, Mass., Second Month 8, 1885. +"Hon. John Sherman, Chairman of Committee. + +"Dear Friend:--The state of my health will scarcely permit me to +avail myself of the invitation of the commission to attend the +ceremonies of the dedication of the Washington monument. + +"In common with my fellow-citizens I rejoice at the successful +completion of this majestic testimonial of the reverence and +affection which the people of the United States, irrespective of +party, section, or race, cherish for the 'Father of his Country.' +Grand, however, and imposing as that testimonial may seem, it is, +after all, but an inadequate outward representation of that mightier +monument, unseen and immeasurable, builded of the living stones of +a nation's love and gratitude, the hearts of forty millions of +people. But the world has not outlived its need of picture writing +and symbolism, and the great object lesson of the Washington monument +will doubtless prove a large factor in the moral and political +education of present and future generations. Let us hope that it +will be a warning as well as a benediction; and that while its +sunlit altitude may fitly symbolize the truth that 'righteousness +exalteth a nation,' its shadow falling on the dome of the capitol +may be a daily remainder that 'sin is a reproach to any people.' +Surely it will not have been reared in vain if, on the day of its +dedication, its mighty shaft shall serve to lift heavenward the +voice of a united people that the principles for which the fathers +toiled and suffered shall be maintained inviolate by their children. + + "With sincere respect, I am thy friend, + "John G. Whittier." + +Another letter, received about two weeks earlier from General Grant, +seems to me worthy of a reproduction. It is as follows: + + "New York City, January 27, 1885. +"Hon. John Sherman. + +"Dear Sir:--I regret very much that my physical condition prevents +me from accepting the invitation of the commissioners, appointed +by Congress to provide suitable ceremonies for the dedication of +the Washington monument, to be present to witness the same on the +21st of February next. My throat still requires the attention of +the physician daily, though I am encouraged to believe that it is +improving. + + "Very respectfully yours, + "U. S. Grant." + +An engraved card of invitation was sent to a great number of civil +and military organizations throughout the United States, the regents +of Mount Vernon, relatives of General Washington and other +distinguished persons. + +The commission invited Lieutenant General Sheridan to act as marshal +of the day, with an aid-de-camp from each state and territory. +This invitation was accepted, and arrangements were made for a +procession from the monument to the capitol and proceedings there +after the dedication by the President. + +The joint resolution prescribed that the monument be dedicated "to +the name and memory of George Washington, by the President of the +United States, with appropriate ceremonies" on the 22nd of February. +The day selected was among the coldest of the year. The ground +was covered with snow and a high keen wind was blowing. I was +directed to preside over the proceedings at the base of the monument, +and in the performance of this duty made the following address: + +"The commission authorized by the two Houses of Congress to provide +suitable ceremonies for the dedication of the Washington monument, +direct me to preside and announce the order of ceremonies deemed +proper on this occasion. + +"I need not say anything to impress upon you the dignity of the +event you have met to celebrate. The monument speaks for itself-- +simple in form, admirable in proportions, composed of enduring +marble and granite, resting upon foundations broad and deep, it +rises into the skies higher than any work of human art. It is the +most imposing, costly and appropriate monument ever erected in the +honor of one man. + +"It had its origin in the profound conviction of the people, +irrespective of party, creed or race, not only of this country, +but of all civilized countries, that the name and fame of Washington +should be perpetuated by the most imposing testimonial of a nation's +gratitude to its hero, statesman and father. This universal +sentiment took form in a movement of private citizens, associated +under the name of the Washington National Monument Association, +who, on the 31st day of January, 1848, secured, from Congress, an +act authorizing them to erect the proposed monument on this ground, +selected, as the most appropriate site, by the President of the +United States. Its corner stone was laid on the 4th day of July, +1848, by the Masonic fraternity, with imposing ceremonies, in the +presence of the chief officer of the government and a multitude of +citizens. It was partially erected by the National Monument +Association, with means furnished by the voluntary contributions +of the people of the United States. + +"On the 5th day of July, 1876, one hundred years after the declaration +of American Independence, Congress, in the name of the people of +the United States, formally assumed and directed the completion of +the monument. Since then the foundation has been strengthened, +the shaft has been steadily advanced, and the now completed structure +stands before you. + +"It is a fit memorial of the greatest character in human history. +It looks down upon scenes most loved by him on earth, the most +conspicuous object in a landscape full of objects deeply interesting +to the American people. All eyes turn to it, and all hearts feel +the inspiration of its beauty, symmetry and grandeur. Strong as +it is, it will not endure so long as the memory of him in whose +honor it was built, but while it stands it will be the evidence to +many succeeding generations of the love and reverence of this +generation for the name and fame of George Washington, 'first in +war, first in peace, and first in the hearts of his countrymen'-- +more even than this, the prototype of purity, manhood and patriotism +for all lands and for all time. Without further preface, I proceed +to discharge the duty assigned me." + +After prayer by the Rev. Henderson Suter, Dr. James C. Welling read +an address which had been prepared by W. W. Corcoran, first vice +president of the Washington National Monument Society, giving a +detailed history of the structure in its various stages. Washington +having been a Freemason, appropriate Masonic ceremonies were +performed, the address being delivered by Grand Master Myron M. +Parker. Colonel Thomas L. Casey, of the engineer corps, United +States army, the chief engineer and architect of the monument, then +formally delivered the structure to the President of the United +States, in an address describing the work done by him on it. +President Arthur received the monument with the following well- +chosen words: + +"Fellow-Countrymen:--Before the dawn of the century whose eventful +years will soon have faded into the past, when death had but lately +robbed this republic of its most beloved and illustrious citizen, +the Congress of the United States pledged the faith of the nation +that in this city, bearing his honored name, and then, as now, the +seat of the general government, a monument should be erected 'to +commemorate the great events of his military and political life.' + +"The stately column that stretches heavenward from the plain whereon +we stand bears witness to all who behold it that the covenant which +our fathers made, their children have fulfilled. + +"In the completion of this great work of patriotic endeavor there +is abundant cause for national rejoicing; for while this structure +shall endure it shall be to all mankind a steadfast token of the +affectionate and reverent regard in which this people continue to +hold the memory of Washington. Well may he ever keep the foremost +place in the hearts of his countrymen. + +"The faith that never faltered, the wisdom that was broader and +deeper than any learning taught in schools, the courage that shrank +from no peril and was dismayed by no defeat, the loyalty that kept +all selfish purpose subordinate to the demands of patriotism and +honor, the sagacity that displayed itself in camp and cabinet alike, +and, above all, that harmonious union of moral and intellectual +qualities which has never found its parallel among men; these are +the attributes of character which the intelligent thought of this +century ascribes to the grandest figure of the last. + +"But other and more eloquent lips than mine will to-day rehearse +to you the story of his noble life and its glorious achievements. + +"To myself has been assigned a simpler and more formal duty, in +fulfillment of which I do now, as President of the United States, +and in behalf of the people, receive this monument from the hands +of its builder, and declare it dedicated from this time forth to +the immortal name and memory of George Washington." + +The exercises at the monument concluded, General Sheridan and his +aids formed the procession, consisting of regular and state troops, +the Masonic fraternity, Grand Army posts, and other organizations, +with the invited guests, in carriages, and proceeded to the capitol, +while the cannon at the navy yard, at the artillery headquarters +and at Fort Meyer fired minute guns. + +As previously arranged, the address of Mr. Winthrop, which has ever +since been regarded as equal to the occasion, was read by John D. +Long, in the hall of the House of Representatives, before a most +distinguished audience, embracing all the principal officers of +the government and the invited guests. John W. Daniel, of Virginia, +also delivered an eloquent oration. + +Thus the Congress celebrated the completion of monuments in enduring +form to two of the greatest men in American history--Washington +and Marshall. + +The Congress expired by limitation March 4, 1885. + +On the same day, there was inaugurated the first Democratic President +of the United States since the time of James Buchanan. The election +of Cleveland, though not disputed, turned upon a very narrow majority +in New York, and the practical exclusion of the majority of the +legal voters in several of the southern states. This naturally +led to the inquiry, "What will you do about it?" My answer was +that we must quietly acquiesce in the result of the official returns +and give to Mr. Cleveland such fair treatment as we asked for Hayes. +I said that we should confirm his appointments made in pursuance +of the law and custom. I was a member of the committee that +conducted him to the stand where he was inaugurated. I heard his +inaugural address, carefully studied it, and felt sure that if he +faithfully observed the policy he defined, the bitterness of party +strife would be greatly diminished. He carefully avoided contested +questions of public policy, and especially omitted all reference +to the substantial overthrow of the political rights of a majority +of the legal voters in many of the southern states, by which alone +he was elected. + +The usual call for an executive session at the close of a presidential +term was issued by President Arthur, and the Senate met on the 4th +of March, Vice President Hendricks presiding. But little business +of general interest was done during that session except action on +presidential appointments, few in number, which were confirmed +without objection. The Senate adjourned on the 2nd of April. + +Soon after I went to Mansfield, and, on the 12th of April, to +Cincinnati, to witness the inauguration of my friend, Amor Smith, +Jr., as mayor of that city. He had fought and overcome the grossest +frauds that had been or could be committed by penitentiary convicts. +A crowd gathered around his residence, which, with those of his +neighbors, was brilliantly illuminated. The Blaine club, headed +by a band and followed by many citizens, filled his yard. His +house was full of his personal friends. After music by the band, +Miller Outcalt, president of the club, escorted Mr. Smith to the +piazza and introduced him to the citizens. His speech was modest +and appropriate, but he took care to denounce, in fitting language, +the open and reckless frauds practiced by his enemies to defeat +him, and promised that while he was mayor no such frauds should be +committed. + +I was introduced to the crowd, and, after rendering my thanks and +congratulations and my appeal to the young men of the club, said: + +"I think the foulest crime in the decalogue of crime, worse than +any named in the Ten Commandments of the Mosaic law, lower far than +stealing, worse than burglary, as bad as murder, is the crime that +has been perpetrated here in your city openly, in the face of day, +trying to break down the elective franchise and rob the people of +their right to govern themselves. I might forgive a man who would +steal because he was in need of bread; he might commit other crimes +because of some reason, but a man who seeks to rob his neighbors +of their right to govern themselves, and practices the tricks of +the wily electioneer to deprive the people of this right, commits +a meaner crime than any that can be named in the list of crime. + +"I am told that dozens--aye, hundreds--of men have gone to the +polls and there voted over and over again; that they have given +false names, and sometimes, in the presence of the very guardians +of the public peace, they have openly violated the law. I say that +worse men cannot be found than those who do this, or those viler +creatures who protect them in doing it or justify them in their +acts. Every power of the nation should be utilized to punish them +with the penitentiary; they ought to be made to wear the stripes +of the convict." + +Foraker followed with an eloquent speech, which greatly pleased +the audience, and after much hand-shaking the crowd gradually +dispersed. + +My remarks about frauds at elections did not please the "Enquirer." +While strongly censuring me for violence in language it did not +try to controvert what I said. I have always entertained the +opinion that frauds in elections are more dangerous crimes than +cheating, theft and robbery, because they are committed against +the whole people and sap and undermine republican institutions. +I have always denounced them, or anything approaching them, when +committed by friend or foe. + +From Cincinnati I went to Columbus to pay my respects to the Ohio +legislature, about to adjourn. A majority of both houses was +Democratic. They convened in the hall of the house of representatives, +where I addressed them. I thanked them for their courtesy, which +was the more gracious because it came from gentlemen who did not +agree with me in political opinion. I told them I was pleased to +see that in Ohio and elsewhere the interests of our country and +our state were regarded of vastly more importance than the factious +quarrels of bitter partisans, which feeling I was glad to say I +had always encouraged. I alluded to my having served in the Senate +of the United States with colleagues representing different political +opinions from myself, including Allen G. Thurman, George H. Pendleton +and, at that time, Henry B. Payne, and to the fact that whenever +the interests of the people of Ohio were concerned our political +differences disappeared and we were shoulder to shoulder as friends. +I said I thought this spirit ought to be observed by the representatives +of the people of Ohio and of the United States, that whenever the +interests of the people were under consideration party spirit should +sink into insignificance. + +After hand-shaking all around I returned to my hotel. In the +evening I was invited to attend the board of trade, and, being +kindly introduced by President Miles, I, as usual, was called upon +for a speech. I first alluded to the remarkable growth of Columbus +to which the members of the board had contributed, and then discussed +briefly the silver question, about which they also felt an interest. +I then exploited into electricity, as follows: + +"Gentlemen, you will be called upon hereafter to deal with forces +yet undiscovered. The developments of science have brought to your +aid things as mysterious as life, which no mind can penetrate. +You are now called upon to use electricity as a motive power and +as light. You must develop these secrets of nature, and you will +have no more fear of the exhaustion of gold, for these new powers +will contribute to the wealth and power of this country. The +business men must carry out these, and so I say, as I said in +Cincinnati, that if business men would carry their honest methods +into government, then the scale and grade of our politics would +rise higher and higher. We have had advancement under these +principles in everything except the government of the country. +What we want is honest government by honest men. The United States +will then be looked on no longer as an experiment, but it will +become the greatest of the great governments since Adam was created. + +"If I can induce the young men, who have contributed so much to +the growth of this city, to see to this--if you will do this much +to promote honest government and honest methods, we won't care +whether you call yourself Democrat or Republican." + +I closed with thanks for the honor done me. I was also invited to +visit the city council, and as soon as the reception in the board +of trade was over I accompanied a committee to the council chamber, +where I was again called upon for a speech. + +Mr. Taylor, the president of the council, by a slip of the tongue, +introduced me as "Senator Thurman." I said: + +"I see that our friend, your president, mixes me up with Judge +Thurman on account of the fact that our names sound very much alike. +I consider such a mistake the highest compliment that could be paid +me; for the great ability, intense sagacity and entire purity of +your distinguished fellow-citizen, in the highest offices of the +land, have placed him, in my estimation, in the first rank of able +and noble men. I like to have my name called Thurman. It is my +opinion that the duties of city officers are of the very highest +importance. The most serious embarrassments of this or any other +country lie with the municipal governments. National government +is clearly defined. The government of the State of Ohio ought to +present no difficulties when administered by fair men of business +habits. But the eyes of the people are upon the difficulties of +municipal government. The scenes that occurred in Paris, in London, +in New York, and, to come nearer home, the scenes that occurred in +Cincinnati, all show the importance of good city government. I +say to you, although a Member of the Senate of the United States, +that the real difficulties of our government are no more serious +than the problems of city management and government. When Rome +became the scene of wrongs, crimes, and usurpation, the republic +crumbled. If ever this government be in danger, it will be because +of the misgovernment of our cities." + +In the early part of April, 1885, I arranged for a trip via Chicago, +Des Moines, St. Louis, Texas and California, thence along the +Pacific coast to Tacoma and Seattle, and thence by the Northern +Pacific railroad to St. Paul, and home again. The party was composed +of Henry C. Hedges, George F. Carpenter, both citizens of Mansfield, +my nephew Frank Sherman, of Des Moines, and myself. It was arranged +that we were to meet in St. Louis. In the meantime I proceeded to +Des Moines, where I met my brother, Hoyt, and his son, Frank. Here +I met a reporter of the "Register" published in that city. He said +in his report that I seemed to feel happy at the prospect that for +two months at least I was going to be free from public cares, and +that I acted like a man who had absolutely thrown worry aside for +the time being. I told him my business was purely of a private +character, and that I had dismissed all politics from my mind. I +declined to answer his questions about Mr. Cleveland. He made out +of small materials an interview which answered his purpose. He +asked my view of the silver question. I told him I hoped to see +the people abandon the idea, which prevailed a few years previous, +of having silver money of less value than gold. We had gone through +a struggle of some years to make our paper money equal to gold, +and the next struggle ought to be to do the same with silver money. +I said we should have all kinds of money of equal value whether +United States notes, bank bills, silver or gold; that if we had +this our silver would circulate in all parts of the world the same +as our gold, that we could use both silver and gold as the basis +of our certificates, which would then be regarded as money by every +commercial nation of the world. I said I was in favor of both +silver and gold, and of using both to be coined upon the basis of +market value, that in this way the volume of money would be increased +instead of being diminished, and our money would become the standard +money of the world. In his report he said that I spoke very +feelingly of General Grant, expressing a hope for his recovery, +but that I feared his apparent improvement was only characteristic +of that disease and not substantial. + +I was surprised as well as gratified at the rapid growth of Des +Moines, which I first knew as an insignificant village. From Des +Moines Frank Sherman and I went to St. Louis, and there met Messrs. +Hedges and Carpenter. During the two or three days we remained in +St. Louis I stayed at the house of General Sherman, who then resided +in that city. He took great interest in my proposed trip, and one +evening wrote out, without a change or erasure of a single word, +on three pages of foolscap, and under the head of "Memorandum for +John Sherman," a complete and detailed statement of the route I +was to follow, and the names of the cities and places I was to +visit, including the persons whom I ought to see, to several of +whom he gave me letters of introduction. I have regarded this +"memorandum," which we found accurate in every particular, as a +striking evidence of his mastery of details. We followed the route +with scarcely a change. Among the letters given me by him was one +to his friend, F. F. Low, as follows: + + "St. Louis, Mo., May 3, 1885. +"Hon. F. F. Low, Anglo California Bank. + +"Dear Sir:--My brother John, the Senator, is on the point of starting +for San Francisco via the southern route and intends to come back +by the north. He will be in your city some days, and I am anxious +you should become acquainted, also that he should meet your wife +and daughter. + +"If you are with the Pacific club please introduce him to some of +the old set--Hoffman, Tevis, Haggin, Rowie, etc., etc. Nearly all +my old banking friends have passed away, but I am sure he would be +pleased to meet Alvord and Brown, of the Bank of California, and +also Flood, of the Nevada Bank. + + "Truly your friend, + "W. T. Sherman." + +While in St. Louis, the "Evening Chronicle" of May 1, published +quite a long interview with me. General Sherman, during this +interview, sat somewhat aside, now and then putting in an emphatic +assent or suggestion. The general inquired of me if there was any +late news from Washington concerning General Sheridan. The reporter +then asked him what his opinion was as to the controversy between +General Sheridan and Secretary of War Endicott. The general +answered: "There is no controversy. It is simply an incident of +the conflict of authority which has existed between the Secretary +of War and the General of the Army since the days of Washington. +General Scott had to leave Washington on that account. I had to +leave there for the same reason, and Sheridan will have to go away." + +Early Monday morning, May 4, we left on the St. Louis, Iron Mountain +& Southern railway. I had heard and read a great deal in St. Louis +about the mineral resources of the southeastern part of Missouri, +through which we passed, but from the cars we could gain no +information. We saw, on every side, herds of cattle, flocks of +sheep, and bands of horses and mules. For miles the forest woods +stretched away. We passed through the low lands of Arkansas, +covered with valuable timber. We passed through Texarkana, a city +located partly in Arkansas and partly in Texas, and not far from +Louisiana. We proceeded across the State of Texas, only catching +glimpses, here and there, of towns springing up, and broad fields +already planted with cotton. + +In passing through Dallas, we met my old boyhood friend, A. Banning +Norton, who was there called Judge Norton. In 1844 he was so +earnest in his zeal and enthusiasm for Henry Clay that he vowed he +would not cut his hair until Clay was elected President of the +United States. Clay's defeat was a sad blow to Norton, but he +religiously kept his vow, and until the day of his death wore his +hair unshorn. He was thoroughly loyal during the war, and was +compelled to leave Texas and remain in Ohio until after the war +was over, when he returned and published a newspaper, and was kindly +treated by his Texas neighbors. In his paper, he said that receiving +a telegram from me at six o'clock, at his residence, just before +the arrival of the train, he hurried to the Union Depot, and there +had the satisfaction of meeting our party. He said that his chief +regret at the delay in receiving this telegram was that he did not +have time enough to give notice to his neighbors, who would have +been glad to give us an ovation. He went with us as far as Fort +Worth, and we had a chance to revive the memories of early times, +when we were schoolboys at Mount Vernon, Ohio. + +We arrived at El Paso and Paso del Norte, the first a Texan and +the second a Mexican town, opposite each other on the Rio Grande +River, which, from its mouth to this point, is the boundary line +between Mexico and the United States. El Paso must, in all human +probability, become a place of great importance. From there we +proceeded to Deming and entered Arizona. Here we began again to +hear of rich mines, of thriving mining towns, and of the inexhaustible +ores of silver and gold, but how much was truth and how much +exaggeration we had no means of knowing. From the cars the whole +country appeared to be a wilderness. Arizona, as viewed from the +cars, does not present a pleasing prospect, though we heard that +back beyond the mountains on either side were plains and valleys +irrigated by mountain streams, where perennial grasses existed and +grain was raised. We passed through Tucson, the capital of the +territory. It is an old city, having been in existence, it is +said, 300 years. Here we saw fields of barley, wheat, rye and +timothy, and a large orchard, all enriched by irrigation. We soon +crossed the Colorado River and entered California. + +From Yuma to San Bernardino is an absolute desert. For over one +hundred miles the track is one hundred feet, or more, below the +level of the sea, and the country is absolutely naked of bird or +grass. At San Bernardino we entered California proper, and there +found a beautiful country, with nothing to obstruct the view, the +California mountains being on the right all the way into Los Angeles. +Upon my arrival in this city I was pleasantly surprised. I had +been there thirteen years before, but everything was changed. I +could find none of the old landmarks I had formerly seen. They +had disappeared, but in their place were great improvements and +signs of progress and prosperity. I was asked the occasion of my +visit. I answered truly that I proposed to remain in the southern +part of the state for a week or more, for rest and recreation. +Here, again, I had inquiries about the silver question. I was +averse to giving any expression of opinion, but the topic was +irrepressible, and I finally said to the representative of one of +the leading papers: "I am in favor of a silver dollar, equal, in +market value, to the gold dollar--actually equal. In other words, +let the silver dollar have enough grains of silver in it to make +it intrinsically worth, in the market, the gold dollar. As it is, +the government buys the silver at a certain valuation and then +coins it at another valuation, to make a profit on the difference. +This is not protecting the silver producer at all. It really is +an injury to him and his industry." + +Our stay in Los Angeles was a very pleasant one. We drove to many +interesting towns and settlements within fifteen or twenty miles +of the city. I do not remember, in my many travels, any part of +the earth's surface that is more attractive in the spring of the +year, the season when I was there, than the region about Los Angeles. +I met there many friends of General Sherman, who inquired for him, +and I informed them he was living very pleasantly in St. Louis, +that I had spent the last Sunday with him, that he traveled a great +deal, and attended reunions with old army comrades, which he enjoyed +very much, that he was fond of the Pacific coast and liked to go +there, and that I almost persuaded him to come with me on this +trip, had not other engagements existed which he could not annul. + +We met several Ohio people while here, among them two or three +gentlemen whom we had known as boys in Mansfield. We drove to +Wolfskill's orange grove, and to many handsome places in, and +around, Los Angeles, to Sierra Madre Villa, to Baldwin's place, to +Rose's wine establishment, and to Passadena, where we found Senator +Cameron and his wife pleasantly situated, and where they spent the +summer. + +From Los Angeles we departed by stage and passed through the Los +Angeles valley, the San Fernando valley, and after crossing the +coast range saw the sea. For the first time we were at the Pacific +coast proper. On the way we met a settlement of Ohio men, most of +them from Richland county, whom we knew. San Buenaventura is the +county seat of Ventura county, with about 2,000 inhabitants. It +is an interesting place, its chief ornament being an old mission +built in 1784. We there visited a loan exhibition and floral +display under the management of the ladies of the village and +surrounding country, and saw the evidences of a semi-tropical +climate, magnificent palm tress, and the orange, the lemon and the +lime. From this place to Santa Barbara the drive was mainly along +the beach. Passing from the beach we entered upon a beautiful +country, and so proceeded all the way into Santa Barbara, through +charming valleys and under pleasant skies. + +At Santa Barbara we were welcomed by Colonel Hollister, a native +of Ohio and a ranchero of California, whom, as already related, I +had met under similar circumstance thirteen years previous. We +stopped at a hotel owned by him and for four days were his guests. +He had settled on a tract of country west of Santa Barbara, and +had become the owner of a ranch of 48,000 acres as well as extensive +property in Santa Barbara and other places. We visited him at Glen +Annie after a drive of a few miles in an open carriage, all the +way within view of the sea and the mountains, through valleys +cultivated like gardens, under a bright sky in pure air. On the +foot hills were grazing herds of cattle, flocks of sheep and droves +of horses. On either side of the carriage road were groves of the +English walnut, orange, lemon, lime, apricot, peach, apple, cherry, +the date palm and olive trees, with acres and acres of vineyards, +and now and then a park of live oak. The mansion of Glen Annie +was surrounded by a bower of flowers and vines. From the porch we +could see the sea. This was the second time I had been at Santa +Barbara and I always remember it as perhaps the most pleasing +combination of scenery I have ever witnessed. We spent a very +pleasant hour with Mr. Stoddard and family, who had removed from +Ohio some years before to that delightful part of our country. +From Santa Barbara we went by steamer to Wilmington and San Pedro +and then returned to Los Angeles through a beautiful country. From +thence we went to San Francisco by rail through a country that +seemed absolutely worthless except now and then there were small +valleys highly cultivated. In the early morning we were in the +valley of the San Joaquin, where wide fields extend all along both +sides. Here we saw thousands of acres of land covered by growing +wheat without a fence to protect it. + +Arriving at Oakland we crossed the bay to San Francisco on the 18th +of May, stopping at the Palace hotel. There I was called upon by +reporters of the several papers and was asked to tell them where +I came from, where I was going, and my opinions upon various +subjects. All manner of questions were asked and answered about +matters of no present interest. Our party visited many places of +interest in and about San Francisco. I visited General Pope, at +his residence at Black Point, the fort at the entrance of the Golden +Gate, the seal rocks and park. While here I met a great number of +very agreeable gentlemen and ladies, some of whom were from Lancaster, +Ohio. The letters given me by General Sherman introduced me to +prominent men, who were very kind and courteous. On the 25th, a +public reception was tendered me at the rooms of the Chamber of +Commerce, by the members of that body, the Board of Trade and the +Manufacturers' Association. This was an act of courtesy that I +did not expect, but greatly appreciated. The usual speech making +occurred. I was introduced by Henry L. Dodge, president of the +chamber, in flattering terms, and responded in a brief speech. I +recalled to them my visit to California with Colonel Scott in +connection with the Texas Pacific railroad, and the early connection +of General Sherman with the history of California. I expressed my +appreciation of the importance of California, and its enormous +development and influence upon the country since it became part of +the United States. I stated my views in respect to the silver +question, and the importance of maintaining all forms of money at +parity with each other, so that coins of both silver and gold might +"travel all over the world equal to each other in every land and +in every part." I insert two passages from this speech, which, +though it did not conform to their opinions and interests, was +kindly received by the intelligent body of merchants present. I +said: + +"It is due to frankness and manhood for me to say that in the +country there is a feeling now, that if the present system should +be continued unchanged, the result would be that gold would be +demonetized, being worth more than silver as coined by the government +of the United States. The opinion prevails that the only thing to +remedy this is to buy the silver and gold, or take them from the +miner and coin them at the same rate, of equal market value, in +coins, one for the other, so that they would travel, side by side, +without depreciation or discount. There is an inclination in the +eastern states, not of hostility to silver, but of hostility to +that system which would take from the miner the fruit of his labor +at its market rate and issue it at a depreciated rate; so that even +cautious people would doubt whether or not this silver money will +hereafter be as good as gold money. + +"I wish you success in all your business enterprises. I know your +success will contribute to the happiness of our country. I am glad +to be able to congratulate the merchants of San Francisco upon the +enormous growth and prosperity of our country, not only of California, +not only of San Francisco, Los Angeles and the other beautiful +towns you have in your midst, but the whole country; for although +we have sometimes here and there waves of dejection, after all, +our country is moving forward in bounding prosperity. We have now +the best currency that exists on the globe. Our credit is unrivaled +in all the world, for no nation can borrow money at so low a rate +as our United States bonds now bear. Our general prosperity is +increasing and abounding, and although, as I have said, there may +be waves here and there, the progress is onward and upward and +hopeful. I trust you will be prosperous in your enterprises, that +you will share in the common prosperity of our whole country, for, +after all, the energy of your people of San Francisco and California +should not be expended entirely alone on the Pacific coast. This +whole boundless continent is ours, and only awaits the time when +we choose to assert our right to take it and hold it." + +At the invitation of Senator John F. Miller I spent a day on his +ranch in Napa valley. It was a beautiful country, neither a prairie +nor a woodland, but more like a fine cultivated park, with here +and there groups of trees planted by nature. I made several +excursions around the bay, accompanied by General Pope and members +of his staff. I was delighted with my visit in and around San +Francisco, not only for the natural beauty of the country, but also +on account of the kindness of its inhabitants. I was no doubt +indebted for this to my connection with General Sherman, who seemed +to be known and greatly beloved by everyone. + +I have a pleasant recollection of a reception given at the Dirigo +club. The gentlemen present were not all young men, though they +chose to regard themselves as such. Major Chamberlain delivered +a brief address of welcome, in which he referred to the "martial +services of General Sherman and the pacific achievements of the +Senator," and drew a comparison highly complimentary to both of +the brothers. William W. Morrow, Member of Congress, formally +welcomed me as a guest of the club and delivered a short but eloquent +speech. I made a brief reply and then the company was served with +refreshments, entertained with music and had a free and friendly +time. The reception was a decided success as was to be expected +from the high reputation of the club. + +On the 27th of May we started northward towards Sacramento and +Portland, Oregon. Senator Leland Stanford was kind enough to +furnish us a car and accompanied us to his ranch at Vina. We +stopped at Chico long enough to visit the ranch of John Bidwell, +containing 20,000 acres. He met us at the station and we were soon +conveyed to his mansion such as is seldom built on a farm. We +drove through orchards of peach, apricot, cherry, apple, pear and +almond trees, while in his gardens were all kinds of berries and +vegetables. After this brief visit we proceeded along the line of +railroad to Vina, the extensive possession of Senator Stanford, +containing 56,000 acres. Here is said to be the largest vineyard +in the world, 3,600 acres. On leaving Mr. Stanford we proceeded +to the terminus of the railroad, from which point we crossed the +coast range of mountains in a stage, and were for three days in +sight of Mt. Shasta. This mountain rising from the plains stands +out by itself 14,400 feet above the level of the sea. Between +Shasta and the Sierras proper there is no continuity, nor is there +with the coast range. More properly it is a butte, a lone mountain. +Shortly after leaving Southern's the castle rocks came in view, +the highest and boldest mountains in close proximity, or within +our view. Shasta was crowned with snow, the snow line beginning +7,000 feet from its base. The scene all day had been rugged and +bold, and as we traveled by the Sacramento River, here a rapid +mountain stream, its waters rushed along the rocky bottom, now +confined within narrow banks, now widening out into a wide deep +bed as clear as crystal and cold and pure. For thirty miles of +our travel that day we had been in a good timbered country. Within +a circle of fifty feet in diameter we counted a dozen pines, every one +of which would have yielded ten to twelve thousand feet of sawed +timber. Flowers of the richest colors were found in the woods, +and the range afforded feed for thousands of cattle. At Southern's +we took a spring-top wagon in which to ride sixteen miles over the +mountains. We spent three days in the journey between Delta, +California, and Ashland, Oregon, the two ends of the railway +approaching towards each other. I recall it as the most charming +mountain ride I ever took. While crossing the mountain I occupied +a seat with the driver and much of the time I held the reins. The +ascent of the Siskiyou mountain was very tedious. Much of the way +the load was too heavy for our six horses to pull, and many dismounted +from the coach, among them the driver; the reins were placed in my +hands and we transferred most of the baggage from the boot to the +body of the coach. So we climbed the Siskiyou 5,000 feet to the +summit of the pass. Then on a gallop, with the coach full, we +turned downward. At one time, as the lead team turned a sharp +curve, it was nearly opposite the stage. Down, still down, and on +the full gallop, we arrived at Ashland on the evening of the 31st +of May, and remained there one day. + +On the 1st of June we followed the line of the Willamette valley, +a productive region for the cultivation of wheat and other cereals. +At Albany we were met by Governor Moody and Secretary Earnhart, +who welcomed us to Oregon. With these officials we went to Salem, +the capital city of the state. My visit in Salem was a very pleasant +one and I was especially indebted to Governor Moody for his courtesy +and kindness. On the morning of the next day, the 2nd of June, we +left Salem and rode down the valley to Portland. This, the principal +city of Oregon, then contained a population of nearly 40,000, of +whom 6,000 or 7,000 were Chinese. It was the natural head of +navigation of the Columbia River, and was a flourishing handsome +city of the American type, in this respect unlike the cities of +California. General Miles was then in command of the military +district, with his residence at Fort Vancouver, Washington Territory. +The military post of Vancouver was then on the north bank of the +Columbia River, but a few miles from Portland. Mrs. Miles is the +daughter of my brother Charles, and I remained with their family +in Vancouver during my two or three days stay there, my traveling +companions making their headquarters at Portland. + +When visiting Tacoma and Seattle our party had been increased to +the number of seventeen gentlemen, some of them connected with the +army, some with the railroads, and others who joined us in our +progress around the waters of Puget Sound and strait of Juan de +Fuca. These waters furnish perhaps the finest harbors in the world. +They are deep, with high banks rising in some places to mountains, +and capable of holding all the navies of the world. In a military +sense Puget Sound can be easily defended from an enemy coming from +the sea, and, though the country is mountainous, it is capable of +sustaining a large population in the extensive valleys both east +and west of the coast range. I have visited this portion of the +United States on three occasions, and am always more and more +impressed with its great importance and its probably rapid increase +of population and wealth. I will not dwell longer on this interesting +trip. + +We left Portland on the 7th of June and proceeded on the Northern +Pacific railroad to Tacoma. On the train we met Charles Francis +Adams, Jr., with a party of railway managers, and in Tacoma we met +an old friend, a gallant and able officer, General John W. Sprague, +formerly from Erie county, Ohio, and more recently connected with +the Northern Pacific Railway Company. On Sunday, our party, including +Mr. Adams, dined with General Sprague. We had not as yet been able +to see Mount Tacoma in its glory, as it was constantly shrouded by +clouds. In the course of the dinner, Mr. Adams said humorously to +Mrs. Sprague that he had some doubts whether there was a Mount +Tacoma, that he had come there to see it and looked in the right +direction, but could not find it. I saw that this nettled Mrs. +Sprague, but she said nothing. In a few moments she left the table +and soon came back with a glowing face, saying, "You can see Tacoma +now!" We all left our places at the tables and went out on the +porch, and there was Mount Tacoma in all its glory. The clouds +were above the head of the mountain and it stood erect, covered +with snow, one of the most beautiful sights in nature. Mr. Adams +said: "Tacoma--yes Mount Tacoma is there and is very beautiful!" + +On the 9th of June we visited Victoria in British Columbia. On +our return we stopped at Port Townsend and Seattle. I received +many courtesies from gentlemen at Seattle, many of whom had been +natives or residents of Ohio, and among them Governor Squire, who +had read law in Cleveland and was admitted to the bar in Mansfield, +where I resided. Among other events we were tendered a reception +and a banquet at Tacoma, at which seventy persons sat at the table. +I was introduced in complimentary terms and expressed my surprise +at the rapid growth of Tacoma and Seattle and that part of our +country. It was a wonder, I said, that such a scene could occur +in a place that had so recently been without an inhabitant except +Indians, and where, but a few years before, the Walla Wallas and +the Nez Percés were on the war path and General Miles was in pursuit +of them. I referred to the unrivaled body of water, Puget Sound, +and said that in the geography of the world it was not equaled. +I referred, also, to the coal fields and other elements of wealth +scattered through the then territory. I carefully avoided the +subject of the rivalry between Tacoma and Seattle, but after all +I found there was no ill-will between the two places. Speeches +were also made by Governor Squire, Mr. Adams, General Miles and +others. + +We returned to Portland on the 12th of June, but before that we +visited Astoria, looked into the great industry of salmon packing, +and were greeted by quite a number of old Ohioans. On our return +we visited Walla Walla and there saw wheat growing that yielded +fifty bushels to the acre. We remained over, also, at Spokane +Falls, then a mere village with a few houses, since become quite +a city. + +General Miles and I drove in a buggy from Spokane to Fort Coeur +d'Alčne, a military post which he wished to visit and inspect. It +is situated on a lake which is famous for the abundance of its +fish. From there we took the cars to Helena, where we remained a +day, and then proceeded to St. Paul, where we arrived on the 21st +of June. Here again we found the interviewer, who wanted to know +my opinion about Cleveland, the silver question, the Chinese and +various other topics. I pleaded ignorance on all these matters, +but told the reporter that if he would call upon me in the course +of a month I would be able to answer his questions. + +From St. Paul we went to Milwaukee and there crossed Lake Michigan +and thence by rail to Grand Rapids, where I had a number of +acquaintances and some business. We then proceeded by way of +Detroit and Sandusky to our home at Mansfield about the 24th of +June. + + +CHAPTER XLIX. +REUNION OF THE "SHERMAN BRIGADE." +Patriotic Address Delivered at Woodstock, Conn., On My Return from +the Pacific Coast--Meeting of the Surviving Members of the Sherman +Family at Mansfield--We Attend the Reunion of the "Sherman Brigade" +at Odell's Lake--Addresses of General Sherman and Myself to the +Old Soldiers and Others Present--Apathy of the Republican Party +During the Summer of 1885--Contest Between Foraker and Hoadley for +the Governorship--My Speech at Mt. Gilead Denounced as "Bitterly +Partisan"--Governor Hoadley Accuses Me of "Waving the Bloody Shirt" +--My Reply at Lebanon--Election of Foraker--Frauds in Cincinnati +and Columbus--Speeches Made in Virginia. + +Upon my return from the Pacific coast I found a mass of letters to +be answered, and many interviewers in search of news, and I had +some engagements to speak for which I had made no preparations. +Among the latter was a promise to attend a celebration of the +approaching 4th of July at Woodstock, Connecticut, under the auspices +of Henry C. Bowen of the New York "Independent." He had for several +years conducted these celebrations at his country home at much +expense, and made them specially interesting by inviting prominent +men to deliver patriotic addresses suitable for Independence Day. +General Logan and I were to attend on this occasion. I selected +as my theme "America of to-day as contrasted with America of 1776." +I prepared an address with as much care as my limited time would +allow, giving an outline of the history of the Declaration of +Independence, and the prominent part taken by the sons of Connecticut +in this and other great works of the American Revolution. The +address was published in the "Independent." I have read it recently, +and do not see where it could be improved by me. The outline of +the growth of the United States presents the most remarkable +development in the history of mankind. I closed with the following +words: + +"It has been my good fortune, within the last two months, to traverse +eleven states and territories, all of which were an unbroken +wilderness in the possession of savage tribes when the declaration +was adopted, now occupied by 15,000,000 people--active, intelligent, +enterprising citizens, enjoying all the advantages of modern +civilization. What a change! The hopeful dreams of Washington +and Jefferson and Franklin could not have pictured, as the probable +result of their patriotic efforts, such scenes as I saw; cities +rivaling in population and construction the capitals of Europe; +towns and villages without number full of active life and hope; +wheat fields, orchards, and gardens in place of broad deserts +covered by sage brush; miners in the mountains, cattle on the +plains, the fires of Vulcan in full blast in thousands of workshops; +all forms of industry, all means of locomotion. + +"Who among us would not be impressed by such scenes? Who can look +over our broad country, rich in every resource, a climate and soil +suited to every production, a home government for every community, +a national government to protect all alike, and not feel a profound +sentiment of gratitude, first of all to the great Giver of all +gifts, and next to our Revolutionary fathers who secured, by their +blood and sacrifices, the liberty we enjoy, and by their wisdom +moulded the people of the United States into one great nation, with +a common hope and destiny? + +"And this generation may fairly claim that it has strengthened the +work of the fathers, has made freedom universal, and disunion +impossible. Let the young men of to-day, heirs of a great heritage, +take up the burden of government, soon to fall upon their shoulders, +animated by the patriotic fire of the Revolution and the love of +liberty and union that inspired our soldiers in the Civil War, +turning their back upon all the animosities of that conflict, but +clinging with tenacious courage to all its results, and they will, +in their generation, double the population and quadruple the wealth +and resources of our country. Above all, they should keep the +United States of American in the forefront of progress, intelligence, +education, temperance, religion, and in all the virtues that tend +to elevate, refine, and ennoble mankind." + +General Logan delivered an eloquent and patriotic speech that was +received by his audience with great applause. He was personally +a stranger to the Connecticut people, but his western style and +manner, unlike the more reserved and quiet tone of their home +orators, gave them great pleasure. Senators Hawley and Platt also +spoke. It is needless to say that our host provided us with +bountiful creature comforts. On the whole we regarded the celebration +as a great success. + +During the last week of August, 1885, my surviving brothers and +sisters visited my wife and myself at our residence in Mansfield. +Colonel Moulton and the wives of General and Hoyt Sherman were also +present. Several of my numerous nephews and nieces visited us with +their parents. The then surviving brothers were W. T. Sherman, +Lampson P. Sherman, John Sherman, and Hoyt Sherman, and the surviving +sisters were Mrs. Elizabeth Reese and Mrs. Fanny B. Moulton. The +brothers and sisters who died before this meeting were Charles T. +Sherman, James Sherman, Mrs. McComb, Mrs. Willock and Mrs. Bartley. +All of the family attended with me the reunion of the "Sherman +Brigade," at its camp at Odell's Lake. On the arrival of the train +at the lake we found a great crowd of soldiers and citizens waiting +to meet General Sherman. The brigade had served under his command +from Chattanooga to Atlanta. They received him with great respect +and affection and he was deeply moved by their hearty greetings. +He shook hands with all who could reach him, but the crowd of +visitors was so great that many of them could not do so. The +encampment was located at the west end of the lake, justly celebrated +for the natural beauty of its scenery, and a favorite resort for +picnic excursions from far and near. We arrived at about twelve +o'clock and were at once conducted to a stand in the encampment +grounds, where again the hand-shaking commenced, and continued for +some time. General Sherman and I were called upon for speeches. +He was disinclined to speak, and said he preferred to wander around +the camp but insisted that I should speak. I was introduced by +General Finley, and said: + +"Soldiers and Citizens, Ladies and Gentlemen:--I saw in one of your +published statements that I was to make an address on this occasion. +That is not exactly according to the fact. I did not agree to make +a speech. One year ago, when the Sherman Brigade met at Shelby, +I did, according to promise, make a prepared speech, giving the +history of the organization of the 'Sherman Brigade,' and a copy +of that, I understand, was sent to surviving members of that brigade. +But few will care for this, but it may interest the wives or children +of these soldiers. + +"Now I do not intend to make a speech, but only a few remarks +preliminary to those that will be made to you by one more worthy +to speak to soldiers than I am. + +"I have always understood that at soldiers' reunions the most +agreeable portion of the proceedings is to have the old soldiers +gather around the campfire to tell their stories of the war, to +exchange their recollections of the trying period through which +they passed from 1861 to 1865; to exchange greetings, to exhibit +their wives and children to each other, and to meet with their +neighbors in a social way and thus recall the events of a great +period in American history. And this is really the object of these +reunions. + +"You do not meet here to hear speeches from those, who, like myself, +were engaged in civil pursuits during the war, and therefore, I +never am called before a soldiers' reunion but I feel compelled to +make an apology for speaking." + +I referred to General Grant and his recent death, and then to +General Sherman as follows: + +"There is another of those commanders, who is here before you to- +day. What is he? He is now a retired army officer. When the war +was over he became the General in Chief of the army, served until +the time fixed by the law for his retirement, and now he is a +private citizen, as plain and simple in his bearing and manners as +any other of the citizens who now surround him. These are the kind +of heroes a republic makes, and these are the kind of heroes we +worship as one free man may worship another." + +General Sherman was then introduced to the vast audience, and said: + +"Comrades and Friends:--A few days ago I was up on the banks of +Lake Minnetonka, and was summoned here to northern Ohio to participate +in a family reunion. I knew my brother's house in Mansfield was +large and commodious, sufficient to receive the survivors of the +first generation of the family, but I also knew that if he brought +in the second and third generations he would have to pitch a camp +somewhere, and I find he has chosen this at Odell's Lake. So, for +the time being, my friends, you must pass as part of the Sherman +family, not as 'the Sherman Brigade,' and you must represent the +second and third generations of a very numerous family. + +"Of course, it is not my trade or vocation to make orations or +speeches. I see before me many faces that look to me as though +they were once soldiers, and to them I feel competent to speak; to +the others I may not be so fortunate. + +"But, very old comrades of the war, you who claim to be in 'Sherman's +Brigade' or in any other brigade, who took a part in the glorious +Civil War, the fruits of which we are now enjoying, I hail and +thank you for the privilege of being with you this beautiful day +in this lovely forest and by the banks of yonder lake, not that I +can say anything that will please you or profit you, but there is +a great pleasure in breathing the same air, in thinking the same +thoughts, in feeling the same inspirations for the future, which +every member of the 'Sherman Brigade' and the children who have +succeeded them must, in contemplating the condition of our country +at this very moment of time. Peace universal, not only at home +but abroad, and America standing high up in the niche of nations, +envied of all mankind and envied because we possess all the powers +of a great nation vindicated by a war of your own making and your +own termination. Yes, my fellow-soldiers, you have a right to sit +beneath your own vine and fig tree and be glad, for you can be +afraid of no man. You have overcome all enemies, save death, which +we must all meet as our comrades who have gone before us have done, +and submit. But as long as we live let us come together whenever +we can, and if we can bring back the memories of those glorious +days it will do us good, and, still more, good to the children who +will look up to us as examples." + +He continued to speak for fifteen minutes or more, and closed with +these words: + +"My friends, of course I am an old man now, passing off the stage +of life. I realize that, and I assure you that I now think more +of the days of the Mexican War, the old California days, and of +the early days of the Civil War, than I do of what occurred last +week, and I assure you that, let it come when it may, I would be +glad to welcome the old 'Sherman Brigade' to my home and my fireside, +let it be either in St. Louis or on the banks of the Columbia River +in Oregon. May God smile upon you, and give you his choicest +blessings. You live in a land of plenty. I do not advise you to +emigrate, but I assure you, wherever you go, you will find comrades +and soldiers to take you by the hand and be glad to aid you as +comrades." + +The gathering was a thoroughly enjoyable one, and was often recalled +by those present. + +During the summer of 1885 there was much languor apparent in the +Republican party. President Cleveland was pursuing a conservative +policy, removals from office were made slowly, and incumbents were +allowed to serve out their time. Foraker and Hoadley were again +nominated in Ohio for governor by their respective parties, and +the contest between them was to be repeated. + +There was a feeling among Republicans of humiliation and shame that +the people had placed in power the very men who waged war against +the country for years, created a vast public debt, and destroyed +the lives of hundreds of thousands of people. This feeling was +intensified by the fact that Republicans in the south were ostracised +and deprived of all political power or influence. In the Democratic +party there were signs of dissension. Charges of corruption in +Ohio, in the election of Payne as Senator in the place of Pendleton, +were openly made, and the usual discontent as to appointments to +office that follows a change of administration was manifest. Under +these conditions I felt it to be my duty to take a more active part +in the approaching canvass than ever before. On the 13th of August, +I met at Columbus with Foraker and the state Republican committee, +of which Asa S. Bushnell was chairman, and we prepared for a thorough +canvass in each county, the distribution of documents and the +holding of meetings. In addition to the state ticket there were +to be elected members of the legislature. There was no contest as +to the selection of a United States Senator, as, by general +acquiescence, it was understood that if the legislature should be +Democratic Thurman would be elected, and if it should be Republican +I would be elected. Governor Foster, when spoken to upon this +subject, very kindly said: + +"As long as John Sherman desires to be Senator, or is willing to +take the office, there is no use for me or any other man with +senatorial aspirations to be a candidate against him. Sherman is +yet young. He is not much over sixty, and it would be idle to +dispute that he is the best equipped man in the Republican party +in Ohio for that position. He has the learning, the ability, the +experience, the popularity." + +The organization of both parties was completed and a vigorous +canvass inaugurated. Foraker soon after commenced a series of +public meetings extending to nearly every county in the state, and +everywhere made friends by his vigorous and eloquent speeches. + +On the 18th I attended a pioneer picnic at Monroe, near the division +line between the counties of Butler and Warren. This mode of +reunion, mainly confined to farmers, is quite common in Ohio, and +is by far the most pleasing and instructive popular assemblage held +in that state. The discussion of politics is forbidden. The people +of the country for miles around come in wagons, carriages, on +horseback and on foot, men, women and children, with their baskets +full of food and fruit, and gather in a well-shaded grove, in +families or groups, and discuss the crops and the news, and make +new or renew old acquaintance. When the scattered picnic is going +on everyone who approaches is invited to eat. When the appetite +is satisfied all gather around a temporary platform, and speeches, +long and short, upon every topic but politics, are made. I have +attended many such meetings and all with sincere pleasure. This +particular picnic was notable for its large attendance--estimated +to be over three thousand--and the beauty of the grove and the +surrounding farms. I made an address, or rather talked, about the +early times in Ohio, and especially in the Miami valley, a section +which may well be regarded as among the fairest and most fruitful +spots in the world. The substance of my speech was reported and +published. The sketch I was able to give of incidents of Indian +warfare, of the expeditions of St. Clair and Wayne, of the early +settlement in that neighborhood, and of the ancestors, mainly +Revolutionary soldiers, of hundreds of those who heard me, seemed +to give great satisfaction. At the close of my remarks I was +requested by the Pioneer Society to write them out for publication, +to be kept as a memorial, but I never was able to do so. + +On the 26th of August I made, at Mt. Gilead, Morrow county, my +first political speech of the campaign. The people of that county +were among my first constituents. More than thirty years before, +in important and stirring times, I had appeared before them as a +candidate for Congress. I referred to the early history of the +Republican party and to the action of Lincoln and Grant in the +prosecution of the war, and contrasted the opinion expressed of +them by the Democratic party then and at the time of my speech. +During the war our party was the "black abolition party," Lincoln +was an "ape," Grant was a "butcher," and Union soldiers were "Lincoln +hirelings." I said: + +"Our adversaries now concede the wisdom and success of all prominent +Republican measures, as well as the merits of the great leaders of +the Republican party. Only a few days since I heard my colleague, +Senator Payne, in addressing soldiers at Fremont, extol Lincoln +and Grant in the highest terms of praise and say the war was worth +all it cost and he thanked God that slavery had been abolished. +Only recently, when the great procession conveyed the mortal remains +of Grant to their resting place, I heard active Confederates extol +him in the highest terms of praise and some of them frankly gloried +in the success of Republican measures, and, especially, in the +abolition of slavery." + +I said that the Republican party, within six years after its +organization, overthrew the powerful dominant Democratic party, +and for twenty-four years afterwards conducted the operations of +a great government in war and peace, with such success as to win +the support and acquiescence of its enemies, and could fairly claim +to be worthy of the confidence and support of the great body of +the people. The defection of a few men in three Republican states +had raised our old adversaries to power again in the national +government. I continued: + +"Some of the very men who boastfully threatened to break up the +Union, and, with the oath of office in support of the constitution +fresh upon their lips, conspired and confederated to overthrow it, +waged war against it, and were the cause of the loss of half a +million of lives and thousands of millions of treasure, have been +placed in high office again, in the very seats of power which they +abandoned with scorn and defiance. Two members of the Confederate +congress, and one man who sympathized with them, are at the head +of great departments of the government. I saw the Union flag at +half-mast, floating over the interior department in sign of honor +and mourning for the death of Jacob Thompson, whom we regarded as +a defaulter and a conspirator. This country is now represented +abroad by men, who, within twenty-five years, were in arms to +overthrow it, and the governing power in the executive branch of +the government is in sympathy with the ideas of, and selects the +chief officers of the government from, the men who were in war +against it. This strange turn in events has but one example in +history, and that was the restoration of Charles II, after the +brilliant but brief Protectorate of Cromwell, and, like that +restoration, is a reproach to the civilization of the age." + +I referred to the "solid south," and the means by which it was held +together in political fellowship by crimes, violence and fraud +which, if continued, would as surely renew all the strifes of the +Civil War as that the sun would roll around in its course. + +In referring to the Republican party and its liberality I said: + +"The Republican party was certainly liberal and just to the rebels +lately in arms against the country. We deprived them of no political +power, no blood was shed; no confiscation was had; and more generous +terms were conceded to them than ever before had been extended to +an unsuccessful party in a civil war. Their leaders emphasized +that at the burial of our great commander, General Grant. The +result of the settlement by the constitutional amendments at the +close of the war was to give them increased political power, upon +condition that the slaves should be free and should be allowed to +vote, and that all political distinction growing out of race, color +or previous condition of servitude shall be abolished; and yet to- +day, the Republican party is faced by a 'solid south,' in which +the negro is deprived, substantially, of all his political rights, +by open violence or by frauds as mean as any that have been committed +by penitentiary convicts, and as openly and boldly done as any +highway robbery. By this system, and by the acquiescence of a few +northern states, the men who led in the Civil War have been restored +to power, and hope, practically, to reverse all the results of the +war. + +"This is the spectre that now haunts American politics, and may +make it just as vital and necessary to appeal to the northern states +to unite again against this evil, not so open and arrogant as +slavery, but more dangerous and equally unjust. The question then +was the slavery of the black man. Now the question is the equality +of the white man, whether a southern man in Mississippi may, by +depriving a majority of the legal voters in the state of their +right to vote, exercise twice the political power of a white man +in the north, where the franchise is free and open and equal to all. + +"When we point out these offenses committed in the south, it is +said that we are raising the bloody shirt, that we are reviving +the issues of the war--that the war is over. I hope the war is +over, and that the animosities of the war will pass away, and be +dead and buried. Anger and hate and prejudice are not wise counselors +in peace or in war. Generosity, forgiveness and charity are great +qualities of the human heart, but, like everything else that is +good, they may be carried to excess, and may degenerate into faults. +They must not lead us to forget the obligations of duty and honor. +While we waive the animosities of the war, we must never fail to +hold on, with courage and fortitude, to all the results of the +war. Our soldiers fought in no holiday contest, not merely to test +the manly qualities of the men of the north and the south, not for +power or plunder, or wealth or title. They fought to secure to +themselves and their posterity the blessings of a strong national +government; the preservation of the Union--a Union not of states, +but of the people of the United States; not a confederate government, +but a national government. The preservation of the Union was the +central idea of the war. The Confederate soldier fought for what +he was led to think was the right of a state to secede from the +Union at its pleasure. The Union soldiers triumphed. The Confederate +soldiers were compelled to an unconditional surrender. + +"Fellow-citizens, the line drawn between the two parties is now as +distinct as it was during the war, but we occupy a different field +of battle. + +"Then we fought for the preservation of the Union, and, as a means +to that end, for the abolition of slavery. Now the Union is saved +and slavery is abolished, we fight for the equal political rights +of all men, and the faithful observance of the constitutional +amendments. We are for the exercise of national authority, for +the preservation of rights conferred by the constitution, and upon +this broad issue we invite co-operation from the south as well as +the north. + +"Upon this issue we intend to make our appeal to the honest and +honorable people of the southern states. We think they are bound +in honor to faithfully observe the conditions of peace granted to +them by General Grant and prescribed by the constitutional amendments. +If they do this we will have peace, union and fraternity. Without +it we will have agitation, contests and complaints. Upon this +issue I will go before the people of the south, and, turning my +back upon all the animosities of the war, appeal only to their +sense of honor and justice." + +I contrasted the policy and tendencies of the two parties on the +question of protection to American industry, on good money redeemable +in coin, on frauds in elections, on our pension laws, and on all +the political questions of the day. I stated and approved the +policy of the Republican party on the temperance question. I closed +with an exhortation to support Governor Foraker and the Republican +ticket and to elect a legislature that would place Ohio where she +had usually stood, in the fore front of Republican states, for the +Union, for liberty and justice to all, without respect of race, +nativity and creed. + +This speech was denounced by the Democratic press as "bitterly +partisan;" and so it was and so intended. The Republican party +during its long possession of power had divided into factions, as +the Democratic party had in 1860. We had the Blaine, the Conkling +and other factions, and many so-called third parties, and the +distinctive principles upon which the Republican party was founded +were in danger of being forgotten. It was my purpose to arouse +the attention to the Republicans in Ohio to the necessity of union +and organization, and I believe this speech contributed to that +result. It was the text and foundation of nearly all I uttered in +the canvass that followed. + +Early in September Governor Hoadley, in commencing his campaign in +Hamilton, assailed by speech at Mt. Gilead, charging me with waving +the bloody shirt, and reviving the animosities of the war. He +claimed to be a friend of the negro, but did not deny the facts +stated by me. He allowed himself to be turned from local questions, +such as temperance, schools, economy, and the government of cities, +in all of which the people of Ohio had a deep interest, and as to +which the Democratic party had a defined policy, to national +questions, and, especially, to reconstruction and the treatment of +freedmen in the south. He thanked God for the "solid south." +Though an Abolitionist of the Chase school in early life, and, +until recently an active Republican, he ignored or denied the +suppression of the negro vote, the organized terror and cruelty of +the Ku-Klux Klan, and the almost daily outrages published in the +papers. On the evening of the 8th of September I made a speech at +Lebanon, in which I reviewed his speech at Hamilton in the adjoining +county. I said I would wave the bloody shirt as long as it remained +bloody. I referred to the copious evidence of outrage and wrong, +including many murders of negroes and of white Republicans, published +in official reports, and challenged him to deny it. I said that +by these crimes the south was made solid, and the men who had waged +war against the United States, though they failed in breaking up +the Union, then held the political power of the Confederate states, +strengthened by counting all the negroes as free men, though +practically denying them the right of suffrage. I said this was +not only unjust to the colored man but unjust to the white men of +the north. + +In conclusion I said: + +"Thirty-eight Members of Congress, and of the electoral college, +are based upon the six million of colored people in the south. +The effect of the crimes I have mentioned is to confer upon the +white people of the south, not only the number of votes to which +they are entitled for the white population, but also the thirty- +eight votes based upon the colored population, and, in this way, +in some of the southern states, every white voter possesses the +political power of two white voters in the northern states. The +colored people have, practically, no voice in Congress and no voice +in the electoral college. Mr. Cleveland is now President of the +United States, instead of James G. Blaine, by reason of these +crimes. I claim that this should be corrected. An injustice so +gross and palpable will not be submitted to by the colored people +of the south, nor by fair-minded white men in the south who hate +wrong and injustice; nor by the great northern people, by whose +sacrifices in the Union cause the war was brought to a successful +termination. It will not be submitted to, and Governor Hoadley, +from his former position, ought to be one of the first to demand +and insist upon a remedy, and not seek to avoid or belittle it by +cant phrases." + +After I had spoken in the opera house at Lebanon I was told that +the stage I occupied was within a few feet of the place where my +father died. The room in the old hotel in which he was taken sick, +and in which he died within twenty-four hours, covered the ground +now occupied by the east end of the opera house. As already stated, +he died while a member of the supreme court holding court at +Lebanon. + +This debate at long range continued through the canvass. Governor +Hoadley is an able man with many excellent traits, but in his +political life he did not add to his reputation, and wisely chose +a better occupation, the practice of his profession in the city of +New York. + +It is not worth while to enter into details as to the many speeches +made by me in this canvass. I spoke nearly every day until the +election on the 13th of October. While Foraker and Hoadley continued +their debate I filled such appointments as were made for me by Mr. +Bushnell. At Toledo, when conversing with a gentleman about the +condition of affairs in the south, I was asked "What are you going +to do about it?" In reply to this inquiry I said in my speech, at +that place: "I do not know exactly how we are going to do it, but +with the help of God we are going to arrange that the vote of the +man who followed Lee shall no longer have, in national affairs, +three times the power of the vote of the man who followed Grant. +The tendency of events guided by a growing popular opinion will, +I believe, secure this condition." + +The meetings grew in number and enthusiasm. The largest meeting +I ever witnessed within four walls was at the Music Hall in +Cincinnati, on the 22nd of September. The auditorium, the balcony, +the gallery, even the windows were filled, and thousands outside +were unable to enter. This and similar scenes in Cleveland and +other cities indicated the success of the Republican ticket. Great +interest was taken in the canvass in Ohio by many other states, as +the vote in Ohio would indicate the current of popular opinion. +The result was the election of Foraker by a majority of 17,451, +and of Robert P. Kennedy as lieutenant governor. The legislature +elected was Republican by a decided majority, the size of which +depended upon the official returns from Hamilton county, where +frauds had been committed by the Democratic party. + +Soon after the election I was urged by Senator Mahone to take part +in the canvass in Virginia in which he was interested. I doubted +the policy of accepting, but, assuming that he knew best, I agreed +to speak in Petersburg and Richmond. Governor Foraker accepted a +like invitation and spoke in the Shenandoah valley. On my way I +addressed a spontaneous crowd in Washington, the only place in the +United States where no elections are held, and there I could talk +about frauds at elections. I had denounced fraud and violence in +elections in the south, and at Washington I had to confess recent +frauds attempted or practiced in Cincinnati. The worst feature +that the frauds in Ohio were forgery and perjury, committed by +criminals of low degree for money, while in the south the crimes +were shared by the great body of the people and arose from the +embers of a war that had involved the whole country. I gave as a +sample of the frauds in the 4th ward of Cincinnati this instance: + +"As soon as the recent election was over an organized gang stopped +the counting in fifteen precincts. Nobody but the gang knew what +the vote was. This could be for no motive but to commit fraud, +and frauds enough were committed in Hamilton county to change the +result on the legislative ticket of four senators and nine +representatives. + +"There were probably 500 or 600 voters in the 4th ward, and according +to previous elections about one-fourth were Republicans and the +rest were Democrats. Well, they made up a registration of 700. +When the day of the election came they tore up the registration +papers and let every fellow vote as many times as he wanted until +they got 996 votes in the ballot box. Then that was not all. The +Republican judge got angry and went away, but he took the key. +Then they broke open the box, tied it up with a rope, and took it +to the police officer, and then changed it so that when it was +counted over 900 votes were Democratic and only 48 Republican!" + +A similar fraud was attempted at Columbus in sight of the penitentiary. +The returns of elections had been filed with the county records. +Between Saturday night and Monday morning thieves stole one of the +returns and added three hundred tallies for every Democratic +candidate, thus changing the number of ballots from 208 to 508. +The judges were about to count this return, knowing it was a forgery, +when public indignation was aroused in the city of Columbus, shared +in by its most distinguished Democratic citizens, and fraud was +prevented. I felt, and so declared, that these mean crimes were +infinitely more despicable than the violence in the south, which +sprang from a fear of the southern people that their institutions +would be impaired by the votes of men debased by slavery and +ignorance. + +I went from Washington to Petersburg, where I was hospitably +entertained by General Mahone. He had been greatly distinguished +for his courage, ability and success, as a Confederate general in +the Civil War, and had long been a popular favorite in Virginia. +He took the lead on questions affecting the debt of Virginia in +opposition to the Democratic party, and a legislature in favor of +his opinions having been elected, he became a Senator of the United +States. He voted as a rule with Republican Senators, but maintained +a marked independence of political parties. I admired him for his +courage and fidelity, and was quite willing to speak a good word +for him in the election of a legislature that would designate his +successor. + +The meeting at Petersburg was held in a large opera house on the +evening of the 29th of October. When I faced my audience the +central part of the house and the galleries seemed to be densely +packed by negroes, while in the rear was a fringe of white men. +The line of demarkation was clearly indicated by color, most of +the white men standing and seeming ill at ease. The speech was +fairly well received. In opening I said my purpose was to demonstrate +that what the Republican party professed in Ohio as to national +questions was the same that it professed in Virginia, and that the +practical application of the principles of the Republican party +would be of vast benefit to the State of Virginia, while Democratic +success would tend more and more to harden the times and prevent +the industrial development of Virginia. + +"Not only your newspaper," I said, "but the distinguished gentleman +who is the Democratic candidate for Governor of the State of +Virginia, has said to you that I was waving the bloody shirt while +he was contending under the Union flag. If he meant, by waving +the bloody shirt, that I sought, in any way, to renew the animosities +of the war, then he was greatly mistaken, for in the speech to +which he refers, and in every speech I made in Ohio, I constantly +said that the war was over and the animosities of the war should +be buried out of sight; that I would not hold any Confederate +soldier responsible for what he did during the war, and that all +I wished was to maintain and preserve the acknowledged results of +the war. Among these, I claim, is the right of every voter to cast +one honest vote and have it counted; that every citizen, rich or +poor, native or naturalized, white or black, should have equal +civil and political rights, and that every man of lawful age should +be allowed to exercise his right to vote, without distinction of +race or color or previous condition. I charge, among other things, +that these constitutional rights and privileges have been disregarded +by the Democratic party, especially in the southern states." + +The speech was largely historical in its character and evidently +rather beyond the comprehension of the body of my audience. The +scene and the surroundings made a vivid impression on my mind. +Here, I felt, were two antagonistic races widely differing in every +respect, the old relations of master and slave broken, with new +conditions undeveloped, the master impoverished and the slave free +without the knowledge to direct him, and with a belief that liberty +meant license, and freedom idleness. William McKinley, then a +Member of the House of Representatives, and Green B. Raum then +spoke, Mr. McKinley confining his speech mainly to a simple exposition +of the tariff question, which his audience could easily understand. + +The next day, at the invitation of John S. Wise, then the Republican +candidate for Governor of Virginia, I went to Richmond, and spent +a pleasant day with him. In the evening I attended a mass meeting +in the open air, at which there was a very large attendance. There +was no disorder in the large crowd before me, but off to the right, +at some distance, it was evident that a party of men were endeavoring +to create some disturbance, and to distract attention from the +speeches. While I was speaking Wise rose and, in terms very far +from polite, denounced the people making the noise. He succeeded +in preventing any interruption of the meeting. The speech was made +without preparation, but, I think, better for the occasion that +the one in Petersburg. I stated that I had been born and lived in +a region where a large portion of the population was from Virginia +and Kentucky; that I had always been taught to believe in the +doctrines of the great men illustrious in Virginia history. To +the charge made that I was engaged in waving the bloody shirt I +said: + +"If it means that I said anything in Ohio with a view to stir up +the animosities of the Civil War, then, I say, it is greatly +mistaken. I never uttered an unkind word about the people of +Virginia that mortal man can quote. I have always respected and +loved the State of Virginia, its memories, its history, its record, +and its achievements. + +"Again, although I was a Union man from my heart and every pulsation, +just as my friend Wise was a Confederate soldier, yet I never heard +in Ohio a man call in question either the courage or purity of +motive of any Confederate soldier who fought in the Confederate +ranks. I never uttered such a sentiment. I disclaim it. What I +did say was this--what I say here in Richmond, and what I said in +Petersburg is--that the war is over and all animosities of the war +should be buried out of sight; that I would not hold any Confederate +soldier responsible for what he did in the war, and all I ask of +you is to carry out the acknowledged results of the war; to do what +you agreed to, when Grant and Lee made their famous arrangement +under the apple tree at Appomattox; to stand by the constitution +and laws of the land, to see that every man in this country, rich +and poor, native and naturalized, white and black, shall have equal +civil and political rights, and the equal protection of the law. +I said also, that by constitutional amendment agreed to by Virginia, +every man of proper age in this country was armed for his protection +with the right to cast one honest vote, and no more, and have that +vote counted, and you, as well as I, are bound to protect every +man in the enjoyment of that right. + +"There is the ground I stood on in Ohio, and the ground I stand on +now." + +I closed my address as follows: + +"And now a word to the best citizens of Richmond. If the criminal +classes can deprive a colored man or a white Republican of his +right to vote, as soon as they have accomplished it, then these +rascals--because every man who resorts to this policy is a rascal +--then these rascals will soon undermine their own party. They +will begin to cheat each other after they have cheated the Republicans +out of their political power. My countrymen, there is no duty so +sacred resting upon any man among you, I don't care what his politics +are. It is honesty that I like to appeal to. I say there is no +man who can be deprived of his right to vote without injuring you, +from the wealthiest in the city of Richmond down to the humblest +man among you, white or black. + +"There is no crime that is meaner, there is no crime that is so +destructive to society, there is no crime so prejudicial to the +man who commits it as the crime of preventing a citizen from +participating in the government. Here I intend to leave the +question. I appeal to you, of whatever party, or color, or race, +or country, to give us in Virginia at this election an honest vote +and an honest count, and if Lee is elected, well and good; if Wise +is elected, better yet." + +The Democrats carried the state and Wise was defeated. + + +CHAPTER L. +ELECTED PRESIDENT PRO TEMPORE OF THE SENATE. +Death of Vice President Hendricks--I Am Chosen to Preside Over the +United States Senate--Letter of Congratulation from S. S. Cox-- +Cleveland's First Annual Message to Congress--His Views on the +Tariff and Condition of Our Currency--Secretary Manning's Report-- +Garfield's Statue Presented to the Nation by the State of Ohio--I +Am Elected a Senator from Ohio for the Fifth Time--I Go to Columbus +to Return Thanks to the Legislature for the Honor--Business of this +Session of Congress--Attempt to Inquire Into the Methods of Electing +Mr. Payne to the Senate from Ohio--My Address on "Grant and the +New South"--Address Before the Ohio Society of New York. + +Congress convened on the 7th of December, 1885. The death of Vice +President Thomas A. Hendricks, on the 25th of November, was announced +by Senator Voorhees, who offered appropriate resolutions, the +consideration of which was postponed until January 26, 1886, when +eloquent orations by Senators Voorhees, Hampton, Saulsbury, Evarts, +Ransom, Spooner and Harrison were delivered in commemoration of +his life and death. I added my sincere tribute to his marked +ability and personal worth. + +On the first day of the session after the opening prayer, Mr. +Edmunds offered the following resolution: + +"_Resolved_, That John Sherman, a Senator from the State of Ohio, +be and he hereby is, chosen president _pro tempore_ of the Senate." + +Following the usual form Mr. Voorhees moved to strike out the words +"John Sherman, a Senator from the State of Ohio," and insert "Isham +G. Harris, a Senator from the State of Tennessee." + +This was decided in the negative by the vote of 29 yeas and 34 +nays, and thereupon the resolution was adopted. I was escorted to +the chair by Senators Edmunds and Voorhees and, having taken the +oath prescribed by law, said: + +"Senators, I return you my grateful thanks for the high honor you +have conferred upon me. + +"In common with all the people of the United States I share in +profound sorrow for the death of the Vice President, especially +designated by the constitution to act as president of the Senate. +It is an impressive lesson of the uncertain tenure by which we all +hold office and life. The contingency had happened which compels +you now, at the beginning of the session, to choose a president +_pro tempore_. + +"In assuming this position, without special aptitude or experience +as a presiding officer, I feel that for a time, at least, I shall +have often to appeal to the habitual courtesy and forbearance of +Senators. Fortunately the rules of the Senate are simple and clear. +My aim will be to secure the ready and kindly obedience and +enforcement of them, so that in an orderly way the sense of the +majority may be ascertained and the rights of the minority may be +protected. + +"I can only say, Senators, that while I hold this position I will +endeavor, to the utmost of my ability, to be just and impartial, +and I invoke from each of you assistance and forbearance." + +This honor was unsought by me. The public prints had, as usual, +discussed the choice of president of the Senate, but I made no +mention of it to any Senator. I was gratified with the choice, +chiefly because it would, in a measure, relieve me from burdensome +details, and was an evidence of the good will of my associates. + +I received many letters of congratulation on this event, one of +which, from Mr. Cox, I insert: + + "United States Legation, } + "Constantinople, January 23, 1886.} +"Dear Mr. Senator:--I am reminded by my wife of a courtesy I have +neglected. It is that of congratulation upon your accession to +the post lately held by my friend (from Muskingum county) Thomas +A. Hendricks. You have associations with that valley also, and +they are connected with the best friend I ever had in Congress, +General Samuel R. Curtis, with whom I used to associate in my callow +congressional days. + +"Besides, I never forget the kindness with which my father used to +regard C. R. Sherman, your father, for making him clerk of the +supreme court of Muskingum, in early days. + +"Here I am, aloof from all old Muskingum memories, or rather, +scenes. As I look out of my balcony, on this spring day in midwinter, +I see the Golden Horn brimming full of ships and other evidences +of interchange; and far beyond it, 'clear as a fountain in July, +when we see each grain of gravel,' Mt. Olympus lifts a double crown +of snow. + +"But I only meant to testify to you, from these remote nations, +the pardonable pride of an Ohioan, and a veteran Congressman--in +your elevation. + +"When you write to the general, remember me to him kindly. + +"Mrs. Cox desired to be kindly regarded to your wife and yourself. +She joins me in felicitations. + + "With esteem, etc., + "S. S. Cox. +"Hon. John Sherman." + +President Cleveland's first annual message was delivered to the +Senate on the 8th of December. He stated that: + +"The fact that our revenues are in excess of the actual needs of +an economical administration of the government justifies a reduction +in the amount exacted from the people in its support. + +* * * * * + +"The proposition with which we have to deal is the reduction of +the revenue received from the government, and indirectly paid by +the people from customs duties. The question of free trade is not +involved, nor is there now any occasion for the general discussion +of the wisdom or expediency of a protective system. + +"Justice and fairness dictate that, in any modification of our +present laws relating to revenue, the industries and interests +which have been encouraged by such laws, and in which our citizens +have large investments, should not be ruthlessly injured or destroyed. +We should also deal with the subject in such manner as to protect +the interests of American labor, which is the capital of our +workingmen; its stability and proper remuneration furnish the most +justifiable pretext for a protective policy." + +This specific principle, if fairly and justly applied to all +industries alike, would be a basis for customs duties that all +would agree to, but, when made, a struggle arises in determining +the articles to be protected, and those to be free of duty. The +President said that the reduction should be made of duties upon +the imported necessaries of life. Such articles are not imported; +they are mainly produced by our own people. By common consent the +few articles that are imported, classed as necessaries of life, +and which cannot be produced in this country, are already free of +duty. When Congress undertook to reduce the revenue it was found +difficult to apply the rule suggested by the President. He said: + +"Nothing more important than the present condition of our currency +and coinage can claim your attention. + +"Since February, 1878, the government has, under the compulsory +provisions of law, purchased silver bullion and coined the same at +the rate of more than $2,000,000 every month. By this process, up +to the present date, 215,759,431 silver dollars have been coined." + +He properly stated that the mere desire to utilize the silver +product of the country should not lead to a coinage not needed for +a circulating medium. Only 50,000,000 of the silver dollars so +coined had actually found their way into circulation, leaving more +than 165,000,000 in the possession of the government, the custody +of which had entailed a considerable expense for the construction +of vaults for its safe deposit. At that time the outstanding silver +certificates amounted to $93,000,000, and yet every month $2,000,000 +of gold from the public treasury was paid out for two millions or +more silver dollars to be added to the idle mass already accumulated. +He stated his view of the effect of this policy, and in clear and +forcible words urged Congress to suspend the purchase of silver +bullion and the coinage of silver dollars until they should be +required by the business of the country. This is the same question +now pending, but under circumstances of greater urgency. + +The President enlarged fully upon this vital subject and has adhered +to his opinions tenaciously. He was re-elected with full knowledge +of these opinions and now, no doubt, will soon again press them +upon Congress. The efforts made to carry into effect the policy +of the President will be more fully stated hereafter. He closed +his message by calling attention to the law relating to the succession +to the presidency in the event of the death, disability or removal +of both the President and Vice President, and his recommendation +has been carried into effect by law. In conclusion he said: + +"I commend to the wise care and thoughtful attention of Congress +the needs, the welfare, and the aspirations of an intelligent and +generous nation. To subordinate these to the narrow advantages of +partisanship, or the accomplishment of selfish aims, is to violate +the people's trust and betray the people's interests. But an +individual sense of responsibility on the part of each of us, and +a stern determination to perform our duty well, must give us place +among those who have added, in their day and generation, to the +glory and prosperity of our beloved land." + +The Secretary of the Treasury, David Manning, in his report to +Congress, amplified the statement made of the receipts and expenditures +of the government and gave estimates for the then current and the +next fiscal year. He was much more explicit than the President in +his statement of reform in taxation. He expressed more at length +than the President the objections to the further coinage of the +silver dollars. He stated the superior convenience of paper money +to coins of either gold or silver, but that it should be understood +that a sufficient quantity of actual coin should be honestly and +safely stored in the treasury to pay the paper when presented. He +entered into an extended and interesting history of the two metals +as coined in this country and the necessity of a monetary unit as +the standard of value. His history of the coinage of the United +States is as clear, explicit and accurate as any I have read. + +On the 12th of December, 1885, I received from Governor Hoadley an +official letter notifying me, as president of the Senate, that a +marble statue of General Garfield had been placed in the hall of +the old House of Representatives, in pursuance of the law inviting +each state to contribute statues of two of its eminent citizens, +and saying: + +"It is hoped that it may be found worthy of acceptance and approval +as a fit contribution from this state to the United States, in +whose service President Garfield passed so much of his life and +whose chief executive officer he was at the time of his death." + +On the 5th of January, 1886, I submitted to the Senate, in connection +with Governor Hoadley's letter, concurrent resolutions returning +the thanks of Congress to the Governor, and through him to the +people of Ohio, for the statue, and accepting it in the name of +the nation. In presenting these resolutions I expressed at +considerable length the estimate of the people of Ohio of the +character and public services of Garfield, and closed as follows: + +"The people of Ohio, among whom he was born and bred, placed his +image in enduring marble in the silent senate of the dead, among +the worthies of every period of American history, not claiming for +him to have been the greatest of all, but only as one of their +fellow-citizens, whom, when living, they greatly loved and trusted, +whose life was spent in the service of his whole country at the +period of its greatest peril, and who, in the highest places of +trust and power, did his full duty as a soldier, a patriot, and a +statesman." + +The resolutions were then adopted. + +The legislature of Ohio that convened on the 3rd of January, 1886, +was required to elect a Senator, as my successor, to serve for six +years following the expiration of my term on the 4th of March, +1887. The Republican members of the legislature held an open joint +caucus on the 7th of January, and nominated me for re-election, to +be voted for at the joint convention of the two houses on the +following Tuesday. The vote in the caucus was unanimous, there +being no other name suggested. The legislature was required to +meet an unexampled fraud at the recent election, practiced in +Hamilton county, where, four Republican senators and eleven Republican +members had been chosen. A lawless and desperate band of men got +possession of the ballot boxes in two or three wards of the city +of Cincinnati, broke open the boxes and changed the ballots and +returns so as to reverse the result of the election of members of +the legislature. These facts were ascertained by the finding and +judgment of the circuit and supreme courts, but the supreme court +held that the power to eliminate such frauds and forgeries did not +reside in the courts but only in the senate and house of representatives +of the state, respectively. Each house was the judge of the election +of its members. This palpable and conceded fraud had to be acted +upon promptly. The house of representatives, upon convening, +appointed a committee to examine the returns, and on the fifth day +of the session reported that the returns were permeated with fraud +and forgeries, and that the persons elected and named by the +committee were entitled to seats instead of those who held the +fraudulent certificates of election. Without these changes the +Republican majority was three on joint ballot. The report was +adopted after a full and ample hearing, and the Republican members +were seated. + +In the senate a committee was also appointed and came to the same +conclusion. The senators holding the fraudulent certificates +claimed the right to vote on their own cases, which was denied by +Lieutenant Governor Kennedy, the presiding officer, and the Republican +senators were awarded their seats, but this did not occur until +some months after the election of United States Senator, which took +place on the 13th of January, when I was duly elected, receiving +in the senate 17 votes and Thurman 20, and in the house 67 votes +and Thurman 42, making a majority of 22 for me on joint ballot. + +I was notified at Washington of my election and was invited to +visit the legislature, members of the senate and house of both +parties concurring. It so happened that at this time I had accepted +an invitation from President Cleveland to attend a diplomatic dinner +at the White House. I called upon him to withdraw my acceptance, +and, on explaining the cause, he congratulated me on my election. + +The reception by the two houses was arranged to be at 4 o'clock p. +m. on the day after the election. I arrived in Columbus at 3:30, +and, accompanied by Governor Foraker and a committee of the two +houses, proceeded immediately to the hall of the House, where the +legislature and a great company had assembled. I was introduced +by Lieutenant Governor Kennedy. George G. Washburn delivered an +eloquent address of welcome in behalf of the legislature, closing +as follows: + +"Your return to the Senate in 1881 was only additional evidence of +our continued confidence and esteem, and on this, the occasion of +your fifth election to that honored position, I tender to you the +hearty congratulations of the general assembly and of the citizens +of this great commonwealth. Conscious that you have rendered far +greater service to the people of your native state than it will be +possible for them to repay by any honors they can confer upon you, +I again bid you a most cordial welcome and invoke the continued +guidance and protection of the same Almighty Being who has led you +thus far to well merit the exalted title of 'good and faithful +servant.'" + +After the applause which followed Mr. Washburn's address had +subsided, I responded in part as follows: + +"My first duty on this occasion, after the magnificent reception +you have given me, it to express to you my profound sense of the +high honor you have conferred upon me. I have often, in a somewhat +busy life, felt how feeble are words to express the feelings of +the heart. When all has been said that one can say, there is still +something wanting to convey an adequate expression of gratitude +and obligation. This I feel now more than ever before, when you +have selected me for the fifth time to serve as a Member of the +Senate of the United States. + +"Such trust and confidence reposed in me by the people of Ohio, +through their chosen representatives, imposes upon me an obligation +of duty and honor, more sacred than any words or promises can +create. + +* * * * * + +"And now, gentlemen, for the future term of service to which you +have elected me, I can only, with increased experience, do what I +have done in the past, and, with every motive that can influence +any man, seek to preserve the favor and confidence of a people as +intelligent as any on the face of the globe. + +"As many of you know, I did not seek re-election to the Senate. +I sincerely felt that there were many citizens of the State of Ohio +of my political faith who might rightfully aspire to the dignity +of the office of Senator of the United States. I was very willing +to give way to any of them, but you have thought it best to continue +me in this position. It comes to me without solicitation or +intrigue, or any influence that is not honorable to you and to me. +I trust it will not prove injurious to any portion of the people +of the State of Ohio, whether they agree with me in political +opinions or not. + +"I accept the office as a trust to be performed under the active +vigilance of political adversaries and the partial scrutiny of +friends, but with the sole object of promoting the honor and +prosperity of the United States. I can have no motive of selfishness +or ambition to turn me from a faithful performance of every duty +attached to the office. + +* * * * * + +"I assure you, gentlemen, that, without recalling that I am elected +by a party, I will go back to Washington with the earnest desire +to perform the duties that you have assigned me, with the hope to +contribute, to the best of my abilities, not merely to the success +of my party, but to the good of the whole country. + +"To me the national government in our system is the _father_, the +protector of our national honor, our defender against enemies at +home and abroad, while the state is the _good mother_ who guards +sacredly the home, the family and the domestic interests of life, +to be beloved by every good citizen of the state, the fountain and +source of the greatest blessings of domestic life. Ohio can justly +claim to be the equal of any other in the sisterhood of states, +central in location, rich in resources, the common pathway of all +the states, containing over three millions of people as happy in +their surroundings as those of any community in the world. We must +do our part to advance and improve our condition by wise legislation +and by the moral influences of education and religion. In this +way only can Ohio sustain her high and honorable standing as a part +of a great country, eloquently and truly described by Canon Farrar +as 'in numbers the greatest, in strength the most overwhelming, in +wealth the most affluent, of all the great nations of the world.'" + +My speech was well received by both Democrats and Republicans. + +In the evening a general reception of ladies and gentlemen was held +in the senate chamber, when hand shaking and social congratulations +occurred, participated in by citizens of Columbus and other places. +The next day I returned to Washington. + +I observed closely the course pursued by the press of the country +in respect to my election. As a rule it was received with favor +by papers of both parties. The election of a Senator of the United +States by such frauds as had been practiced by Democrats in Cincinnati +would be a bad example that might be followed by other crimes, +violence or civil war. The weakness in our system of government +is likely to be developed by a disputed election. We touched the +line of danger in the contest between Hayes and Tilden. Some guards +against fraud at elections have been adopted, notably the Australian +ballot, but the best security is to impress succeeding generations +with the vital importance of honest elections, and to punish with +relentless severity all violations of election laws. + +During this Congress, by reason of my position as presiding officer, +I participated only occasionally in the current debate, introduced +only private bills, and had charge of no important measure. + +Mr. Eustis, on the 8th of February, introduced a resolution +instructing the committee on finance to inquire whether it had been +the custom for the assistant treasurer at New Orleans to receive +deposits of silver dollars and at a future period issue silver +certificates therefor. This led to a long and rambling debate, in +which I took part. I stated my efforts, as Secretary of the +Treasury, and those of my successors in that office, to put the +silver dollars in circulation; that they were sent to the different +sub-treasuries to be used in payment of current liabilities, but +silver certificates were exchanged for them when demanded. Also, +when gold coin or bullion came into the United States in the course +of trade, and was inconvenient to transport or to use in large +payments for cotton or other products, the treasurer of the United +States, or his assistants in all parts of the country, issued silver +certificates in exchange for gold, that in this way the coin reserve +in the treasury was maintained and increased without cost, that +during one season $80,000,000 gold was in this way acquired by the +treasury. I could have said later on, that, until within three +years, when the receipts of the government were insufficient to +pay its current expenditures, there was no difficulty in securing +gold and silver coin in exchange for United States notes, treasury +notes and silver certificates. The greater convenience of paper +money in large commercial transactions created a demand for it, +and gold and silver were easily obtained at par for all forms of +paper money issued by the government. The exchange was temporarily +discontinued by Secretary McCulloch. It is a proper mode of +fortifying the gold reserve and ought to be continued, but cannot +be when expenditures exceed the revenue, or when there is the +slightest fear that the treasury will not be able to pay its notes +in coin. + +On the 8th of March John F. Miller, a Senator from California, +died, and funeral services were conducted in the Senate on the +13th, when I announced that: + +"By order of the Senate, the usual business will be suspended this +day, to enable the Senate to participate in the funeral ceremonies +deemed appropriate on the death of John F. Miller, late an honored +Member of this body from the State of California." + +The services were conducted in the Senate Chamber by Rev. William +A. Leonard, rector of St. John's church, the chaplain of the Senate, +Dr. Huntley, pronouncing the benediction, after which the following +statement was made by me, as president of the Senate: + +"The funeral ceremonies deemed appropriate to this occasion in the +Senate Chamber are now terminated. We consign all that is mortal +of our brother to the custody of an officer of the Senate and a +committee of its Members, to be conveyed to his home on the Pacific, +and there committed for burial to those who have honored him and +loved him so much when living. The Senate, as a body, will now +attend the remains to the station." + +Mr. Miller was highly esteemed by his associates in the Senate. +He was born in Indiana a few miles from Cincinnati, Ohio. After +graduating as a lawyer he went to California, in 1853, but returned +to his native state, and at the outbreak of the war entered the +Union army with the rank of colonel. That he was a gallant soldier +is shown by the fact that on his return to Indiana, at the close +of the war, Governor Morton presented him a sword which he had +promised the soldier of the state who had distinguished himself +most and reflected the greatest credit on his state and country. +At the close of the war he returned to California, and, after a +few years, was elected, by a Republican legislature, to the United +States Senate. He was not a frequent or lengthy speaker, but was +a man of thought, of attention, of industry and practical sagacity, +and brought to every question patient and persistent energy and +intelligence. In his manner he was quiet, dignified and courteous. +For years he suffered greatly from wounds received in the war, +which no doubt shortened his life. He held the position of chairman +of the committee on foreign relations, to which I succeeded him. + +During April and May interstate commerce was the subject of an +extended debate in which I participated. Amendments to the bill +passed two years previously, involving "the long haul and the short +haul" and whether Congress should attempt to legislate as to +transportation within a single state, were debated, and no problems +of legislation have been more difficult. The Interstate Commerce +Commission organized under these laws was invested with extraordinary +powers and its action has been beneficial to the public, but in +many cases has seriously crippled many railroad corporations, and +bankrupted some of them. + +During the latter part of this session I was called upon to perform +a very disagreeable duty. The election of my colleague, Mr. Payne, +as a Member of the Senate, after an active contest with Mr. Pendleton, +gave rise to charges of corruption, not against him personally, +but against those who had charge of his canvass in the legislature. +The succeeding legislature of Ohio was Republican and undertook to +examine these charges by a committee of its house of representatives. +The charges made and the testimony taken were sent by the house to +the Senate of the United States, with a resolution requesting +further examination and that the election be vacated. The papers +were referred to the committee on privileges and elections, the +majority of whom reported that the charges were not proven, and +asked that the committee be discharged from further consideration +of the matter. The minority of the committee reported in favor of +the inquiry proposed. I felt it to be my duty to the people of +Ohio to insist upon an investigation, but in no spirit of unkindness +to my colleague. It was the first and only time I had occasion to +bring before the Senate the politics of Ohio. My relations with +Mr. Payne were friendly. I knew him, and respected him as a +prominent citizen of Cleveland and regarded well by his neighbors. +I believed that whatever corruption occurred at his election he +had no personal knowledge of it, and that his honor would not be +touched by the testimony to be produced. + +On the 22nd of July I made a long speech upon the report of the +committee, reviewing the evidence presented by the Ohio legislature +and insisting that it was ample to justify and require a full and +thorough examination by the committee. I disclaimed any desire to +reflect upon the motives, or the honor, or the conduct, or the +opinions, of the Senators who differed with me, saying: + +"I believe from my own knowledge of the history of events in Ohio, +as well as from the papers sent to us, that there is a profound +conviction in the minds of the body of the people of Ohio of all +political parties that in the election of my colleague there was +gross corruption, by the use of large sums of money to corrupt and +purchase the votes of members of the general assembly. + +"Now, that is a fact. Whether sufficient evidence has been produced +before you to justify this belief is for you to say. Whether +sufficient has been said here to put you upon an inquiry, the fact +remains that the people of Ohio believe, that in the election of +my colleague, there was the corrupt use of money sufficient to +change the result." + +I then entered upon the details of the charges and testimony +submitted to the committee, and concluded as follows: + +"It is not sufficient for us to state that the case made by this +printed testimony is not strong enough to convict. It is a question +whether it is sufficient to excite a suspicion, because upon a +suspicion a Senator's seat and his right to hold a seat here may +be inquired into. Therefore, with due deference to the distinguished +and eminent gentlemen who treat this case as if we were now passing +upon the guilt or innocence of an accused with the view of a lawyer +and the strictness of a lawyer, it seems to me they have confounded +the stage of this inquiry. It is now an inquiry only in the hands +of a committee of our body to advise whether or not, in these papers +or in any that can be produced, there is cause for investigation, +or whether there is reasonable and probable cause that can be +produced. If so, then the inquiry goes on. The final judgement, +however, is only arrived at when we shall have completed testimony +of a legal character, when, with grave and deliberate justice, and +with the kindness that we always give to our colleagues here, we +proceed to render our judgment. + +"I have said more than I intended to say when I rose. I will now +add, in conclusion, that I consider that I perform a duty to my +state, and especially to the party that I represent here, and all +we can say to you is that we have believed and do now believe, +mainly upon the statements made by Democratic editors and Democratic +citizens, for they know more about it than we do, that upon the +belief generally held in the State of Ohio that fraud and corruption +did supervene in this election we ask you to make such inquiries +as will satisfy your conscience whether that charge is true or +false. If it is true, you alone are the judges of it. If it is +false, then you should punish the men who started these charges +and you should vindicate the men who have been unjustly arraigned. + +"In any view I can take of it, I believe it is the duty of the +Senate of the United States, as it regards its own honor and the +future of our country, never the leave this matter in its present +condition, to be believed by some and disbelieved by others, to be +made the subject of party contest and party chicanery, but let us +have a fair, judicial, full investigation into the merits of these +accusations. If they are false, stamp them with the brand of +ignominy; if they are true, deal with the facts proven as you think +is just and right." + +The debate upon the report attracted much attention and was +participated in by many Senators. The motion of the majority of +the committee was adopted by the vote of 44 yeas and 17 nays. The +Senate thus denied that the case made by the legislature of Ohio +did justify an inquiry into the election of Senator Payne. He +filled out the measure of his term and still lives at his home in +Cleveland, honored and respected, at the age of eighty-five. + +Congress adjourned August 5, 1886. + +I had been invited to deliver an address, upon the celebration of +the sixty-fourth anniversary of the birth of General U. S. Grant, +at the Metropolitan church in Washington on the 27th of April, +1886. The text given me was "Grant and the New South." As this +brief speech expressed my appreciation of the character of General +Grant soon after his death, and my presage of the new south, I +insert it here: + +"Ladies and Gentlemen:--Our friends have given me a very great +theme and very little time in which to present it to you. The new +south is one of the mysteries which time only can unfold. It is +to us, and, I fear, will be for generations to come, one of those +problems which tax the highest abilities of statesmen. It is like +the Irish question to England and the Eastern question to Europe. +We can only judge of the future by the past. I can base my hope +for the new south only upon the probable results of the changed +conditions grafted upon the old south by the war; more a matter of +hope and expectation than as yet of realization. Still we may hope +very much even from the present signs of the times and upon what +the south ought to be if not upon what it is. + +"We know what the old south was. It was an oligarchy called a +democracy. I do not speak this word in an offensive sense, but +simply as descriptive of the character of the government of the +south before the war. One-third of the people of the south were +slaves. More than another third were deprived, by the nature of +the institutions among which they lived, of many of the advantages +absolutely indispensable to the highest civilization. Less than +one-fourth of the population were admirably trained, disciplined +and qualified for the highest duties of mankind. The south was +very much such a democracy as Rome and Greece were at some periods +of their history; a democracy founded upon the privileges of the +few and the exclusion of the many. Very much like the democracy +of the barons of Runnymede, who, when they met together to dictate +Magna Charta to King John, guarded fully their own privileges as +against the king, but cared but little for the rights of the people. +And so with the south--the old south. But it was an able oligarchy. + +"Among the brightest names in the American diadem were many men of +the south--at the head of whom, and at the head of all mankind, +was the name of Washington. And so, in all our history, the south, +misnamed a democracy, did furnish to the United States many of +their leading lights, and the highest saints in our calendar. They +were able men. All who came in contact with them felt their power +and their influence. Trained, selected for leading pursuits, they +exercised a controlling influence in our politics. They held their +slaves in subjection and the middle classes in ignorance, but +extended their power and influence, so as to control, in the main, +the policy of this country, at home and abroad. They disciplined +our forces, led our parties, and made our law. + +"General Grant, in the popular mind, represents the impersonation +of the forces that broke the old south. Not that thousands of men +did not do as much as he within the limits of their opportunities. +Not that every soldier who followed his flag did not perform his +duty in the same sense as General Grant. But General Grant was +the head, the front, the selected leader; and therefore his name +is the impersonation of that power in the war which broke the old +south, and preserved our Union to your children, and I trust your +children's children, to the remotest posterity. But, while we +praise Grant and the Union soldiers, we must remember that Abraham +Lincoln was the genius of the times. He pointed out the way. He +foresaw the events that came. He did not like war. He hated war. +He loved the south as few men did. He was born of the south--in +his early life reared in the south. All his kin were in the south. +He belonged to that middle or humble class of men in the south who +were most seriously oppressed by all their surroundings--by the +slavery of the south. He hated slavery, if he hated anything, but +I do not believe he hated the owners of slaves. He loved all +mankind. No man better than he could have uttered those words: +'Malice towards none, charity for all.' That was Abraham Lincoln. +He was driven into the war reluctantly. At first, he tried to +prevent it, and would not see the necessity for it. He ridiculed +it, and believed that the time would speedily come when all the +excitement springing up in the south would pass away. + +"But the inevitable and irrepressible conflict was upon him, and +he met the responsibility with courage and sagacity. A higher +power than Abraham Lincoln, a power that rules and governs the +universe of men, decreed the war as a necessary and unavoidable +event, to prepare the way for a new south and a new north, and a +more perfect Union. The war did come as a scourge and a resurrection. +Grant was the commander of the Union armies, and at the close of +the war more than what we had hoped for at the beginning was +accomplished. When the war commenced no man among those in public +life contemplated or expected the speedy abolition of slavery in +the District of Columbia, and in the United States of America. I +can say that, the winter before the war commenced, no man in public +life in Washington expected the untold benefits and good that have +come to mankind as the result of the war, by the Act of Emancipation +--unforeseen then, but thankfully appreciated now, by the whole +American people; even by the masters of the slaves. + +"Now fellow-citizens, the new south is founded upon the ruins of +the old. It inherits the prejudices, the institutions and some of +the habits of the old south. No wise man will overlook this, and +should not expect that the southern people will at once yield to +the logic of events; but every patriotic man ought to do his utmost +to bring about, as soon as possible, a cheerful acquiescence in +the results of the war. You cannot in a single generation, much +less a single decade, change the ideas of centuries. And, therefore, +we must not be impatient with the new south. And we who come from +the north must not expect them at once to lay aside all ideas with +which they were born and which they inherited from their ancestors +for generations. Therefore, it was to be expected that the south +would be somewhat disturbed, and would be somewhat slow in their +movements; that it must be born again and live an infancy and take +its ordinary course in human life. It must grow as Topsy grew. +Remember, at that time, before the war, this country was a confederacy, +not of states, but a confederacy of sections. There were but two +parties to that confederacy, one was the north and the other was +the south. On every question, great and small, that division in +American life and American politics arose. Before the war and +during the war party lines were drawn on the sectional line, north +and south. The parties in this country were sectional parties, +and even up to this time we have not broken down the asperity which +existed, growing out of this sectional condition of affairs. + +"Now that slavery is gone, parties ought to be based on other +conditions than sectional lines. There is no question now existing +between the north and the south, and politicians will soon find +that they must base their divisions of party lines upon some other +question than between the north and the south. I see growing up +every day the evidence of that feeling that this sectional controversy +is at an end. Although the ghost is not buried--the dead body lies +mouldering in the grave. + +"What then, is the first duty of both sections, now that slavery +is abolished. It is to base party divisions upon other than +sectional lines. It is to adopt a policy approved by the patriotic +men of both sections, that will develop the resources, improve the +conditions, and advance the interests of the whole people. The +north is ready for this consummation. There never was a time in +the history of this government, from the time the constitution was +framed to this hour, when there was less party spirit among the +mass of the people of the United States. Nearly all that is left +is among mere politicians. The people of the United States desire +to see these differences buried, and new questions, living questions +of the present and future, form the line of demarkation between +parties. The north has made enormous growth and development since +the war. Immense capital is seeking investment, and millions of +idle men are seeking employment. The south, from a state of chaos, +is showing marked evidence of growth and progress, and these two +sections, no longer divided by slavery, can be united again by the +same bonds that united our fathers of the revolution. + +"Now, ladies and gentlemen, let me state briefly the conditions +upon which the new south can secure the greatest amount of good +for its people--conditions that can be accepted by men who served +in either army (who wore the blue or the gray), both Confederate +and Union soldiers. If these elemental conditions are accepted +fairly, as I hope they will be by the south, the union will be +complete without either north or south or sectional or party lines. + +"First, there must be recognized in every part of this country, +without respect to race or color or condition, the equality of +rights and privileges between man and man. This fundamental +principle is now ingrafted upon our constitution. It can never be +erased. There it stands; and although, from time to time, parties +and men may refuse to observe the spirit of that great provision +in the constitution, there it will stand, and in time--and I trust +a not far distant time--it will be recognized by every man and +woman and child in this broad land, white or black, north or south. +It is not safe for it to be otherwise. A right plainly given by +the constitution and the laws, withheld or denied, is an uneasy +grievance which will never rest. And, therefore, the time is not +far distant, when those now strongly actuated by the prejudices +and feelings of race will recognize this important doctrine. They +will feel that it is for their own safety and for their own good. +Blacks and whites are spread all over the south. They cannot be +separated without the fiat of the Almighty, and such a fiat has +never been issued except once, when the Israelites marched out from +slavery in Egypt, and it took them about forty years to travel a +short way. + +"One-third of the population of the south is of the negro race, +and two-thirds of the white race. Whatever may have been thought +of the wisdom of the policy of emancipation, it was the logical +result of the war, has been finally adopted, and will never be +changed. It is idle to discuss schemes to separate these races +except by voluntary and individual movement, but they will live +and increase, generation after generation, the common occupants of +the new south. What is needed above all else is to secure the +harmonious living and working of these two elements, to secure to +both the peaceful enjoyment of their rights and privileges. As long +as any portion or race or class of the people of the new south are +deprived of the rights which the constitution and law confer upon +them, there will be unrest and danger. All history teaches us that +those who suffer a wrong will sooner or later find means to correct +and avenge it. + +"There is another condition that the new south must find out. The +honorable gentleman who preceded me (Senator Brown) has found it +out already. The system of production which was admirably adapted +to the old south will not answer for the new south. Under the old +institution of slavery they raised a few leading crops, cotton, +rice, sugar and tobacco--but not much else. Why? Because these +articles could be raised by the labor of slaves. + +"Now, in the new south, it is manifest that the chief sources of +wealth and prosperity lie in the development of their natural +resources, in the production of coal and iron and other minerals +and phosphates, and in the manufacture of cotton and other textile +fabrics, and in the development of railroads and other means of +communication. In other words, they will find it to their interest +to adopt and compete with the north in all its industries and +employments. That this can be successfully done is shown in Alabama, +Georgia, Tennessee, North Carolina and Virginia. All the states +touching on the Alleghany range have facilities for varied manufactures +fully equal to any of the northern states, and with some advantages +as to climate and labor. A diversity of production will be wealth +to the south, break down its exclusion, open its doors to immigration, +and assimilate its institutions with those of the north. + +"The north is ready for this competition. Although the south will +probably deprive us of some of the markets we now have, yet no man +in the north will complain; but, on the contrary, we have in the +north millions of dollars in capital to invest, and millions of +hardy men to work north or south, wherever they can get fair wages +for a fair day's work. When this competition comes we will have +a diversity of industry, and a country rich in developed as well +as in undeveloped resources. This is the second great want of the +new south which I trust their able men may bring about; and Governor +Brown is one of their leaders, and has seen that this is the road +not only for the improvement of his section, but for the betterment +of his fortune. + +"There is one other thing I wish to say in regard to the south. +That is, that it must mainly work out its own salvation. That is +one of the last things that we in the north have found out. We +have striven in various ways to assist the south in managing their +local affairs; and I must confess that although I participated in +that kind of business I am afraid it did not turn out very well. +The north cannot rule the south any more than England can rule +Ireland, or Europe can govern Greece and Turkey. According to the +principles of our government it is not possible for us to keep +soldiers enough down south to guard all their ballot boxes, and +indeed we need a good many up north to guard our own sometimes. +At all events it is not consistent with the principles of our +government that we should undertake to rule in local affairs, and, +therefore, while we should give to those who are oppressed, in our +own country as well as in others, every kindly aid which the +constitution and the law allow, yet, after all, the people of the +south must work out their own salvation. + +"I am inclined to think that the blacks, having the labor and the +muscle and industry on their side, will not be far behind the white +race in the future in the south. It is now conceded on all hands +that, under our system of government, we cannot by external force +manage or interfere with the local affairs of a state or community, +unless the authorities of the state call for aid to resist domestic +violence. Wrongs inflicted upon citizens by mobs are beyond redress +by the general government. The only remedy is migration and public +opinion; but these, though slow and very discouraging, will in time +furnish a remedy and also a punishment. Neither capital nor labor, +prosperity nor hope, will go or linger long where human rights and +life are unsafe. The instinctive love of justice and fair play +will, in time, dissipate the prejudice of race or caste and point +the finger of scorn to the man who robs another of his rights, as +it now does to the man who cheats, or steals the property of his +neighbor. With the power of the colored people to migrate, whenever +they are unjustly treated, to a place where law and justice prevail, +with the capacity for labor and to acquire property, with reasonable +opportunity for education, they will in time make sure their rights +as citizens. I believe this is the growing feeling in the new +south. I am willing to trust it, and I will be glad to aid it +whenever and wherever I can see the way. + +"What the new south wants now more than all else is education! +education!! education!!! The statistics with which we have been +made familiar recently in the debate in the Senate, of illiteracy +in the south, are appalling, but not much more so than was the +condition of the western states fifty years ago. The negroes being +slaves were, of necessity, without education. The great mass of +the white people were in the same condition, not because it was +desired in the south, but because, from the sparseness of the +population and the existence of plantations instead of farms, it +was difficult to establish a system of public schools. A change +in this respect cannot be brought about suddenly, but it is apparent +that every southern state appreciates the importance of education +of both white and black. It is the bounden duty of the national +government to extend the aid of its large resources. If the action +of the Senate is sanctioned by the House, and fairly and justly +executed by the people of the southern states, there need be no +danger from the ignorance of the next generation. I believe that +these conditions will be the solution of the troubles of the south +and make a great step on the road to prosperity and union in the +south. + +"Now, but a few words in conclusion. It is not merely common school +education in the south that is needed, but it is higher education. +It is all the learning of the schools, all that science has taught, +all that religion teaches, all that medicine has found in its alchemy, +all the justice which the law points out and seeks to administer; +the south wants opportunity for that higher education which cannot +be obtained from common schools, but which exists in no country +except where common schools abound. It wants in its midst the +places where the active leading young men of the south can gather +in colleges and universities and there gain that higher education +which prepares them to be leaders among men. + +"I congratulate you, my countrymen, here in Washington, that, under +the authority of the Methodist Episcopal church, a Christian +denomination, under the name of the illustrious hero General Grant, +there has been founded in the mountains of Tennessee, away up among +the clouds and in the pure air of Heaven, in the midst of a loyal +and patriotic population, an institution of learning which will be +a blessing to all the people of the south, and I trust to all the +people of the north. Every aid possible should be showered down +from the north and south alike. Let them light their fires at this +modern Athens upon the mountain top and they will shine forth all +over our land. Here the young men of the south will fit themselves +to lead in the march of progress and improvement. They will learn +to vary their production, to develop their resources, to advance +every race and generation in education, intelligence and patriotism, +and with charity broad enough to secure all the people, of every +race and tribe, the peaceful and unquestioned enjoyment of their +civil and political rights. There is now no disturbing question +of a sectional character which should prevent the north and south +from moving in harmonious union. The two streams have united, and +though for a time their waters may be divided by the color line, +like the Mississippi and the Missouri at and after their junction, +yet, in the end they will mingle in a great republic, not of sections, +but of friendly states and a united people." + +I attended a meeting of the members of the Ohio Society of New +York, on the occasion of their first annual dinner at Delmonico's, +on the 7th of May. It was a remarkable assemblage, composed almost +exclusively of men born in Ohio, then living in New York, all of +whom had attained a good standing there, and many were prominent +in official or business life. There were over two hundred persons +present. Thomas Ewing was president of the society, and Mr. Payne +and myself sat on either side of him. I insert the remarks of +General Ewing and myself as reported in the papers the next morning. +Many speeches were made by others, including Senators Payne and +Harrison. General Ewing, after the dinner had received ample +attention, called the company to order and made a brief address, +which was repeatedly applauded. He said: + +"I hail and congratulate you, guests and members of the Ohio Society +of New York, on our delightful and auspicious reunion. It is good +that we are here. This large assemblage of Ohio's sons, coming +from far and near, attests how strong and vital are the ties that +bind us to our mother state. We have every reason to love and be +proud of her. If American citizenship be a patent of nobility, it +adds to the honor to have been born of that state which, almost in +the forenoon of the first century of her existence, has shed such +luster on the republic; which has given to it so long a roll of +President, chief justices, judges of the Supreme Court and statesmen +in the cabinet and in Congress--among whom is found not one dishonored +name, but many that will shine illustrious in our country's annals +forever; a state which, in the supreme struggle by which the Union +was established as indissoluble and the plague of human slavery +destroyed, gave to the republic even more than her enormous quota +of noble troops, and with them those great captains of the war: +Grant, Sherman, Rosecrans, McPherson. + +"Gentlemen, we have not formed our society from a desire to culture +state pride in any spirit of divided allegiance. No, no! There +has been far too much of that in the past, and can't be too little +in the future. We are first Americans--then Buckeyes. The blessings +and misfortunes of our sister states are ours as well as theirs. +The love of our own state and pride in her history spring largely +from the fact that she and her institutions, in birth and growth, +are purely American. She is the oldest and, so far, the best +developed of all the typically American states. Neither Roundhead +nor Cavalier stood sponsor at her cradle. She never wore the collar +of colonial subserviency. Her churches and colleges are not endowed +of King Charles or Queen Anne. Her lands are not held by grant or +prescription under the Duke of York, Lord Fairfax or Lord Baltimore, +but by patents under the seal of the young republic and the hand +of George Washington, whose name will continue to be loved and +honored throughout the world long after the memory of the last king +and peer of Great Britain shall have sunk in oblivion. + +"The early generation of her sons were not reared amid distinctions +of wealth and rank and class, but in the primeval forest and prairie, +where all stood equal and had no aid to eminence but strenuous +efforts; where recollections of the sufferings and sacrifices of +Revolutionary sires became inspirations of patriotism in their +sons; and where nature threw around all her pure, loving and +benignant influences to make them strong and great. + +"Gentlemen, I now have the pleasure to present to you a typical +Buckeye--the architect of his own fame and fortune--who stands +below only one man in the republic in official station, and below +none in the respect of his countrymen--John Sherman." + +As General Ewing closed, there was a tumultuous scene. There were +repeated cheers, and Colonel W. L. Strong called for three cheers +in my honor, which were given. When I could be heard, I spoke as +follows: + +"Mr. President, Brethren All:--I give you my grateful thanks for +this greeting. If you receive every Buckeye from Ohio in this +manner, you will have the hordes of Ararat here among you. Such +a reception as this, I think, would bring every boy from every farm +in the State of Ohio, and what would become of New York then? You +have gathered the sons of Ohio, and those who have been identified +with its history, into a society where you may meet together and +preserve and revive the recollections of Ohio boyhood and Ohio +manhood. Why should you not do that? Why should you not have an +Ohio society as well as a New England society, or any other kind +of society? Our friends and fellow-citizens from old England's +shore, from Ireland and Scotland and Germany, form their societies +of the city of New York; and why should not the State of Ohio, more +important than any of these countries by this represented? + +"Now, gentlemen, there is one characteristic of Ohio people which +has marked them from the beginning of their history, and marks them +now. We are a migratory race. We are the Innocents Abroad. No +Arab in his tent, restless and uneasy, feels more uncertain and +movable than a man from Ohio, who can better his condition anywhere +else. We are a migratory race, and why should we not be? Do we +not deserve the best of every land? When we go to any other country, +we don't go to rob them of anything, but to add to their wealth. +If I want to prove that Ohio people are migratory, what better +evidence can I have than is afforded by the men who are here around +me? Here is my friend, General Ewing, born in one of the garden +spots of Ohio, under circumstances when it would be supposed that +he ought to be content with his lot; but he goes walking off to +Kansas, and then to the war, and then into Washington, and finally +settles down near New York here, under the shadow of the Sage of +Greystone! Among others here around me I see a grandson of old +William Henry Harrison. I see here innumerable representatives of +the Puritan fathers, with all the virtues of the old fathers and +some besides. I see here representatives not only of Virginia and +New England, but of New Jersey, New York and Pennsylvania--all from +Ohio. + +"My countrymen, in the early days Ohio was the camping ground of +all the old states. Ohio is the first fruit of the Federal Union. +It is true that Vermont and Kentucky and Tennessee were admitted +into the union of these states before Ohio was, but they were +offshoots of New York and Virginia, while Ohio was the first fruit +of that great commonwealth. Every state of the old states had a +camping ground in the State of Ohio, either by reservation, by +purchase or by settlement. Nearly all of the early descendants of +Ohio were sons of Revolutionary fathers who came out to Ohio. They +went there to redeem that land from a wilderness, and they made of +Ohio the most prosperous, the richest and fairest commonwealth the +world has ever known. In Ohio was the beginning of that magnificent +march of progress which adds luster to the history of the northwest, +as an evidence of growth and progress unexampled in the previous +history of mankind. Think of it, my countrymen! Within one hundred +years, more than 30,000,000 people have grown up in a country once +people alone by Indian tribes, and that 30,000,000 of people are +among the most prosperous and powerful peoples of the whole world. + +"I want to defend our Ohio people against another charge that is +very often made against them, especially in this city of New York. +They charge us with being fond of office. Why, my countrymen, I +can show by statistics--and statistics never lie--that Ohio never +had her fair share of the public offices. I have not brought any +of the statistics with me, for fear some know-nothing might cry at +our after-dinner speech 'Figures.' Still we never had our share +of the public offices, or if we had we always filled them well, +and performed our duties honorably. + +"Now, gentlemen, only one or two other thoughts, and then I will +leave you. In the early times, migration was always to the westward. +Nobody thought of coming east. Therefore it is that out of the +eight sons of Ohio who are now Members of the United States Senate, +all moved westward; and out of some thirty or forty or fifty Members +of the House of Representatives who were born in Ohio, and who +didn't stay in Ohio--and they are only a small part of them--all +went westward. The reason was that 'Westward the star of empire +wends its way.' But latterly the star of empire seems to have +settled about this city of New York, until more than 200 Ohio men +can sit down to an Ohio feast in the city of New York. There is +another reason--there is more money in New York than anywhere else +in the country. Not that our people have a fondness for money, +but they have come here to better their condition--and I hope in +God they will. They not only better their own condition, but the +condition of all around them, and I can pick out from all over this +community, and from this little dinner party, men who came from +Ohio poor, but with an honest endeavor to do what was best for +themselves and their families, and here they are, rich and happy. + +"One word more, worthy fellow-citizens. We love Ohio. We love +Ohio as our mother who nurtured us and fed us in our in our infancy; +and, under any circumstances, although we may hear ill of Ohio, we +never fail to remember all that is good that can be said of Ohio, +and to be true and honorable for the love of Ohio. But we love +our country more, and no man from Ohio would ever be true to his +mother unless he were more true to his country all around, from +one end of the land to the other. Our country forever from the +Atlantic to the Pacific; from the Gulf of Mexico to the Canada +line, and away around this continent in due time, when the pear +will ripen and fall in this Federal Union; in the whole round of +the country! + +"I congratulate you upon this happy meeting, upon this successful +feast, and I trust you may go on prospering and to prosper, until +you will gather all the men of Ohio who are deserving of their +nativity into the fold of this social union, not only that you may +meet each other again as kinsmen born of the same soil, but that +you may aid and assist each other, as other kindred societies have +done, and I trust that the Ohio society, though the junior members +at the table of these societies of New York, may yet be the foremost +and leading members in charity and good works to the sons of Adam." + + +CHAPTER LI. +A PERIOD OF POLITICAL SPEECH MAKING. +Organization of the "Sherman Club" at Mansfield, Ohio--My Experiences +with Newspaper Reporters--Address at the State Fair in Columbus on +Agricultural Implements--Other Speeches Made in the Campaign of +that Year--Address at Louisville, Ky.--Courteous Treatment by Henry +Watterson, of the "Courier Journal"--Hon. John Q. Smith's Change +of Heart--Answering Questions Propounded by Him at a Gathering in +Wilmington, Ohio--Success of the Republican Party--Second Session +of the 49th Congress--But Little Legislation Accomplished--Death +of Senator John A. Logan--Tributes to His Memory--His Strong +Characteristics--My Reason for Resigning the Presidency of the +Senate--Succeeded by John J. Ingalls. + +After the adjournment of Congress I returned home. I was not +fatigued by the labors of the session, as the duties of presiding +officer were lighter than those of an active Member on the floor. +The usual canvass had already commenced for state officers and +Members of Congress. A club called the "Sherman club" had been +organized at Mansfield, and soon after my return having been invited +to attend it, I did so, and made a brief political address. During +this month I was visited by many interviewers, and while sometimes +their calls were inopportune, yet I uniformly received them, answered +their questions, and furnished them any information in my power. +I knew that they were seeking information not for their own +convenience, but to gratify a public interest, and, therefore, I +was entirely willing to answer such questions as were put to me. +The case was very rare where I was misrepresented, and then it was +either unintentional or to brighten a story or to exaggerate a +fact. I recall one interview in respect to courts of arbitration +and the universal labor question. My opinions were expressed +offhand, and, although not taken down at the time by the interviewer, +my words uttered during a half hour's interview were quoted with +great exactness. I know this is not the common opinion in respect +to the interviewer, and in some cases gross misrepresentations are +made, but in the very few instances where this has occurred in my +experience I have always carefully remembered the reporters who +made them and declined any further interview with them. + +The latter part of August, Judge Thurman and I were invited to make +brief addresses at the state fair in Columbus. After he had spoken +with his usual ability and directness, I made a speech mainly about +new devices in agricultural implements. I said: + +"From the fact that Judge Thurman and I have been invited to address +you I infer that you did not expect us to tell you what we knew +about farming. He has been recognized as a standard authority as +to the law--not only as to what it is but as to what it ought to +be--but I never heard that he was eminent as a farmer, either of +the theoretical sort who know how things ought to grow, or of the +practical sort who know how to make them grow. I have had more +experience as a farmer than he has had, but somehow my crops always +cost me more than I could get for them. If the many millions of +farmers in the United States have had my experience in farming they +would have to get more than seventy-five cents a bushel for wheat +to make the two ends meet. Still, Judge Thurman and I have learned +enough to know that farming is the chosen employment of a large +proportion of the human race, and is, besides, the chosen recreation +of nearly all who have been successful in other pursuits. Every +lawyer especially, from Cicero to Webster, has delighted in the +healthful pleasure of rural pursuits--and if they have not made +their money by farming they have spent their money in farming--and +have enriched the language of every age and clime with eloquent +and beautiful tributes to this noblest occupation of man. + +"Perhaps this is the reason you call upon lawyers to speak on +occasions like this, when the varied products of the farm, in their +rich profusion and excellence, are spread before us. Besides, it +is the common opinion that lawyers can talk as well about things +they don't know as things they do know--and on either side of the +question, without respect to the merits or morals of the topic. +Your worthy secretary, in inviting me to speak for a few minutes +on this occasion, said that I was quite at liberty to choose the +subject of my remarks. So I have chosen as a text a discovery I +have made very much like that of Benjamin Franklin, who advised +the people of Paris that he had made a great discovery--that being +wakeful one morning he discovered that the sun rose at Paris at +five o'clock, and that if they would rise with the sun and go to +bed with the sun they would save an enormous sum--millions of francs +--in the cost of candles and lamps, and greatly improve their health +and morals. So I have discovered that our farmers have become +machinists, and, instead of working themselves, they make the +horses, mules, and especially the machines, do nearly all the work +of the farm. + +"I have observed in the numerous fairs I have attended since they +were first introduced in Ohio, and especially since the war, a +marked change in the articles exhibited. Formerly the chief +attraction was the varied exhibition of fruits, grain, cattle, +horses, sheep, hogs, poultry--all the productions of the farm--and +the chief benefit then derived from our state and county fairs was +to excite competition in the size, excellence and abundance of +these purely animal or agricultural productions. Formerly the +tools and implements of husbandry were few, simple and plain, the +chief of which were the plow, the scythe, the cradle, the sickle. + +"Later by degrees there appeared new devices--new implements of +husbandry--the mower, the reaper, the thresher, the binder, the +sulky plow, an infinite variety of mechanical contrivances to make +the labor of the farmer easier, or rather to dispense with a +multitude of laborers, and substitute in their places the horse, +the mule and the steam engine. In other words, to convert the +business of farming from an agricultural pursuit, where the labor +of men and women was the chief factor of production, to a mechanical +pursuit, in which the chief element of cost and power were machines, +the invention of a single generation. + +"This striking change in an employment, which in all ages has been +pursued by a greater number of human beings than any other, is +shown in every fair now held in the United States, and especially +in this." + +I spoke of the changed condition of the farmer since Ohio was a +new state, covered by a great forest, when the home was a cabin, +and about the only implements were the plow and the axe, and then +said: + +"After what has been said by others, and especially so eloquently +said by Judge Thurman, I need not express the high value I place +upon the magnificent work of the state board of agriculture in +preparing these grounds as a permanent place for the exhibition of +the industrial products of Ohio, not only of the farm but of the +workshop. It is this day dedicated by appropriate ceremonies for +the use of the present and future generations of Buckeyes, and, I +hope, as time rolls on, there may be here exhibited, not only stock +and grains and vegetables, not only ingenious machinery and +inventions, but men, high-minded men and noble women, and that with +the many advantages in education and culture secured to them by +their ancestors they will maintain and advance with manly vigor +and sturdy virtue the work of the generations before them, who have +planted and founded here in Ohio a model republic." + +I attended the thirteenth Industrial exposition at Music Hall, +Cincinnati, on the 2nd of September, where fully six thousand people +were gathered, I entered the building with Governor Foraker, and +we were received with rounds of applause and made brief remarks, +the substance of which was reported, but I can only remember the +magnitude of the audience and the difficulty of being heard. The +city was crowded with men, women and children, all in holiday dress, +and everybody in good humor at the success of the exposition. +During September, and until the day of the election, I was engaged +in making speeches. The one at Portsmouth, on the 28th of September, +was carefully prepared and reported, and contained the substance +of what I said in that canvass. It was a review of the political +questions of the day. I always feel more at home in that part of +Ohio then in any other. The river counties are associated with my +early recollections and the people are uniformly generous and kind. +With rare exceptions they have heartily supported me during my +entire political life. + +I attended a meeting conducted by the Blaine club in Cincinnati. +The procession that marched through the streets was an immense one, +and seemed to include all the men and boys in the city. The +clubhouse, brilliantly illuminated, was surrounded by a great crowd, +too large to hear the speeches, nor did it matter, for their +enthusiasm and cheers showed that they needed no exhortation. + +I attended a reception of the Sherman club of the 24th ward, at +the head of which was my old friend, Governor Thomas L. Young. I +there made a strong appeal for the election of Benjamin Butterworth +and Charles Brown to Congress, the former being one of the ablest +and most promising men in congressional life, and the latter a +gallant soldier, who had lost a leg in the service of his country. +I said: + +"Their election is more important than anything else. The election +of a Republican House of Representatives is of vital importance, +because if we can have not only a Republican Senate, but a Republican +House of Representatives, we will tie up Cleveland and his +administration so that he and it can do no harm to anybody. If we +can get a good Republican House of Representatives we will be able +to maintain the system of protection of American labor, which is +the pride and glory of the Republican party. We will maintain all +these great measures of Republican policy which tend to develop +our country, to increase its happiness, diversify its pursuits, +and build up its industries; to give you a good currency; to protect +your labor; and generally to promote the common good and welfare +of our common country." + +At the invitation of the Republicans of Louisville, Ky., I went to +that city. In the afternoon I made a short address at the laying +of the corner stone of the new customhouse, and in the evening made +a long political speech. It was my first visit there, and I was +much gratified as well as surprised, at the great numbers which +attended a Republican meeting and the enthusiasm with which I was +greeted. I referred to the long and intimate association of Ohio +and Kentucky since the days of the Indian wars, when Kentucky sent +her best and bravest men to fight the battles of Ohio, under Harrison +and Taylor at Fort Meigs and Sandusky. In a later time, when Henry +Clay was their favorite, Ohio steadily and heartily supported him, +and now that the war was over, there was no reason why Kentucky +and Ohio might not stand side by side in maintaining the principles +of the Republican party. I said: + +"You might naturally inquire why I came to the city of Louisville +to make a Republican speech, when I knew that the majority of your +population belong to a different school of politics, and that I +could scarcely hope to make any impression upon the Democratic vote +of the city of Louisville or the State of Kentucky. Still, I have +always thought it strange that your people, who through many long +years followed the fortunes and believed in the doctrines of Henry +Clay, should willingly belong to a party opposed to all his ideas, +and I was curious to learn why the same great events that led the +people of Ohio into the ranks of the Republican party should lead +the people of Kentucky into the ranks of the Democratic party. It +is to make this discovery that I come here to-night, and I will +speak to you, not for the purpose of reviving past controversies, +but to see whether, after all, the people of Ohio and Kentucky +ought not now to stand side by side in their political action, as +they did in the days of old. + +"When approaching manhood I, in common with the people of Ohio, +was in ardent sympathy with the political opinions of the people +of Kentucky. I was reared in a school which regarded Henry Clay, +John J. Crittenden, Thomas Ewing and Thomas Corwin as the brightest +lights in the political firmament, chief of whom was Henry Clay. +I need not remind a Kentucky audience with what pride and love your +people followed him in his great career, and with rare intermissions +supported and sustained him to the close of his life. And so, too, +with John J. Crittenden, who represented the people of Kentucky in +both Houses of Congress, in the cabinet of two administrations, +and, to the close of his eventful life in the midst of the Civil +war, retained the confidence and support of the people of Kentucky. +It may be said, also, that Thomas Ewing and Thomas Corwin, the warm +and lifelong friends of Clay and Crittenden, represented the people +of Ohio in the highest official positions, and that these great +men, united in counsel, in political opinions and in ardent +friendship, were the common standards of political faith to the +people of these neighboring states. + +"I had the honor to cast my first vote for Henry Clay for President +of the United States, and supported him with all the natural +enthusiasm of youth, and remember yet my sorrow when it was at last +known that he was defeated. I also knew Mr. Crittenden from 1846, +when, as a young lawyer, I visited Washington, and saw much of him +in the later years of his life. I also held close personal relations +with Mr. Ewing and Mr. Corwin since my early boyhood, and shared, +as much as youth can share, the benefits of their council and +confidence. I am justified in saying that during the memorable +period of thirty years of political conflict through which we have +passed, I have steadily adhered to the lessons they have taught, +by supporting the measures adopted from time to time by the Republican +party, while the majority of the people of Kentucky, with equal +sincerity, no doubt, pursuing their convictions, have landed in +the Democratic party. What I would like to find out is whether it +is you or I who have switched off from the councils of our political +fathers, and whether the causes of the difference of opinion still +exist." + +I closed as follows: + +"I freely confess that the great mass of the Democratic party are +patriotic, law-abiding citizens, yet I believe the elements that +control that party, especially in the northern states, are unworthy +of the confidence and trust of a brave and free people, and that +the Republican party, although it may not always have met the hopes +and expectations of its friends, does contain within it the elements +of order, safety, obedience to law and respect for the rights of +others, with well-grounded principles of public policy, and can +fairly be trusted again to manage our national affairs. + +"My heartiest sympathies go with the gallant Republicans of Kentucky, +who, in an unequal fight, have shown the courage of their race and +the patriotism of their ancestors. Let them persevere in appealing +to their neighbors for co-operation, and they can fairly hope that, +as the passions of the war pass away, Kentucky will be, as of old, +on the side of the Union, the constitution and the impartial +enforcement of the laws. + +"Is not this a good time to try the experiment of a Republican +representative from the Louisville district? Our Democratic friends +seem to be in a bad way about the choice of a candidate. If what +the opposing factions say of their candidates is half true, you +had better take shelter under a genuine and fearless Republican +like Mr. Wilson, who will be impartial to the factions and true to +the great interests of American labor and American production. +Such a light shining from Louisville will be a star of hope, a +beacon light of safety and prosperity to the extreme bounds of our +country. Why not try the experiment? I hope that my visit among +you will be a message of good will, and I thank you with all my +heart for your kindly reception." + +The "Courier Journal" was much more fair to me on this occasion +than the Democratic papers in Ohio. In consequence of this I have +always entertained a kindly feeling for its editor, Henry Watterson, +who, notwithstanding his strong political opinions, is always bold, +frank and courteous in his criticisms. + +On my return from Kentucky I spoke to a large meeting at Wilmington, +Ohio, on the 7th of October. I had frequently addressed meetings +at that place and always received a very cordial and hearty welcome. +It so happened that John Q. Smith, one of the leading citizens of +Clinton county, who had been a Member of Congress, had changed his +political relations and become a warm supporter of the administration +of Cleveland. He had prepared a large number of questions, to be +put to me, which were printed and scattered broadcast in handbill +form. I was glad of the opportunity to answer his questions, as +they gave me a text for a general review of a Democratic administration. +I said that the handbill was issued by a gentleman whom I esteemed +very highly, and for whom I had the greatest good will and friendship, +one of their own citizens, who had served in the legislature and +in Congress with credit, and had been a representative of our +government abroad. I then read the questions one by one and answered +them, and, as I think, clearly showed to the satisfaction of my +hearers, that, although Mr. Smith was generally sound on other +matters, he was a little cracked on the question of American +protection. My answers were received with great applause by the +audience, and I think my old friend made nothing by his questions. + +After making a number of other speeches in Ohio, I spoke in Grand +Rapids on the 18th of October; in Indianapolis on the 21st; at Fort +Wayne on the 24th, and at the Academy of Music, Philadelphia, on +the 27th. I closed my speaking in this campaign at Toledo on the +30th. The time of the fall elections had been changed to the first +Tuesday after the first Monday of November. During the period from +my return home after the adjournment of Congress until the day of +election, I spoke almost daily. The election resulted in a victory +for the Republican party, the head of the ticket, James S. Robinson, +Secretary of State, receiving about 11,000 majority. + +The second session of the 49th Congress passed but little important +legislation except the appropriation bills. The two Houses were +so widely divergent that they could not agree upon measures of +political importance. + +On the 9th of December I made an impromptu speech on the revision +of the tariff, in reply to Senator Beck, but as no action was taken +upon the subject at that session, it is useless to quote what I +said. Mr. Beck was a man of great mental as well as physical power. +A Scotchman by birth, he came at an early age to the United States +and settled in Kentucky, where he practiced law, and in due time +became a Member of Congress, and afterwards a Senator of the United +States. He was aggressive, affirmative and dogmatic, and seemed +to take special delight in opposing me on all financial questions. +He and I were members of the committee on finance, and had many +verbal contests, but always with good humor. On the 9th of December, +as I entered the Senate Chamber after a temporary absence, I heard +the familiar voice of Beck begging, in the name of the Democratic +party, a chance to reduce taxation. I promptly replied to him, +and the colloquy between us extended to considerable length. He +was, in fact, a free trader, believed in the policy in force in +Great Britain, and opposed every form of protection to American +industries. Our debate brought out the salient arguments on both +sides, though no measure on the subject-matter was pending before +the Senate. + +During the holiday recess Senator John A. Logan died at his residence, +Calumet Place, in Washington. This was announced, in the Senate, +by his colleague, Shelby M. Cullom, on January 4, 1887, as follows: + +"'The angel of death has been abroad throughout the land.' His +visitation has been most unexpected during the recent brief recess +of the Senate, and has imposed upon me a duty which I have scarcely +the heart to perform--the duty of announcing the death of my late +distinguished colleague. At his home, which overlooks this capital +city, at three minutes before three o'clock on Sunday afternoon, +the 26th of December, the spirit of John A. Logan took its flight +into the unknown realms of eternity. On Friday last, the funeral +ceremonies were conducted, by the Senators and Representatives +present, in this Senate Chamber, and his mortal remains were conveyed +to the silent tomb. + +"We are called upon to mourn the loss of one of the bravest and +noblest of men--a man loved by the patriotic people of his state +and of the nation, known to his country and to the civilized world +as great in war and in peace, and for nearly fourteen years a +distinguished Member of this Senate." + +Logan is buried in the cemetery of the Soldiers' Home in Washington, +in a conspicuous and beautiful marble tomb erected to his memory +by his widow. On the 9th of February the business of the Senate +was suspended, and many Senators, the associates of the deceased, +paid fitting and eloquent tribute to his public and private virtues +in addresses of marked ability and interest. + +He was a striking character, bold, fearless and aggressive, but +sensitive as a child. I knew him well when he was a Member of the +House before the war. He was a devoted friend and admirer of +Douglas, and, like him, when the war commenced, threw his whole +soul into the Union cause. He was a good soldier, and, of those +who entered the army from civil life, was among the most distinguished. +He was a model of the volunteer soldiery. After the war was over +he was returned to Congress and served in the House and Senate +until his death. He was a positive man; there were no negative +qualities about him. Thoroughly honest in his convictions he was +regarded as a strong debater, though somewhat too urgent in presenting +his opinions, and disposed to take a personal view of controverted +questions. I had great respect for Logan, and never had any +controversies with him except upon financial questions, upon which +I thought he took at one time erroneous views. For a long time he +adopted the ideas prevailing in the west in regard to paper money. +Upon further reflection he became satisfied that the policy of +resumption was the right one and adhered to it. He was a member +of the committee that framed the resumption act, and from the time +that measure was agreed upon, he, so far as I know, supported it +firmly and warmly. He was a good party man; he stood by the judgment +of his political friends. I never saw the slightest hesitation or +doubt on his part in supporting a measure which was agreed upon by +his political associates. One interesting feature of Logan's life +was the interest felt by his wife in his public career, and her +helpfulness to him. She was the model of a helpmate. She is in +every way a good woman. She has the very qualities that he lacked, +and I might illustrate by many instances her great aid to him in +his political purposes. + +I had accepted an invitation of the merchants of Boston to attend +the annual banquet of the Mercantile Association on the 29th of +December, but was compelled to withdraw my acceptance, so that, as +president of the Senate, I could perform certain duties in respect +to Logan's funeral that I could not delegate to others, and which +were requested of me by the committee on arrangements, through a +notice sent me by Senator Cullom, the chairman, as follows, and +upon which I acted: + +"The committee on arrangements at the funeral ceremonies of John +A. Logan, late a Senator of the United States from the State of +Illinois, respectfully request the Honorable John Sherman, a Senator +of the United States from the State of Ohio, to preside at the +funeral exercises on Friday, December 31, 1886." + +In the Boston invitation it was intimated that some remarks on the +national banking system would be acceptable. In declining I wrote +a letter expressing my opinion of that system, which I said had +realized all the good that had ever been claimed for it by its +authors, that it had furnished the best paper money ever issued by +banking corporations, that the system was adopted only after the +fullest consideration and had won its way into public favor by slow +process, and that I regarded it as the best that had ever been +created by law. The remarkable success of this system, I said, +was not appreciated by those not familiar with the old state banks. +It had been adopted by many countries, especially in the far off +island of Japan. + +The bill to regulate interstate commerce became a law on the 4th +of February, 1887. It had passed both Houses at the previous +session, but, the Senate having disagreed to amendments of the +House, the bill and amendments were sent to a committee of conference. +The report of this committee was fully debated. I had taken great +interest in this bill, but had not participated in the debate until +the 14th of January, when I supported the conference report, while +not agreeing to some of the amendments made. Senator Cullom is +entitled to the chief credit for its passage. + +On the 22nd of February I laid before the Senate the following +communication, which was read: + +"To the Senate of the United States. + +"Senators:--My office as president _pro tempore_ of the Senate will +necessarily terminate on the 4th of March next, with my present +term as Senator. It will promote the convenience of the Senate +and the public service to elect a Senator as president _pro tempore_ +whose term extends beyond that date, so that he may administer the +oath of office to Senators-elect and aid in the organization. I, +therefore, respectfully resign that position, to take effect at +one o'clock p. m., on Saturday next, February 26. + +"Permit me, in doing so, to express my heartfelt thanks for the +uniform courtesy and forbearance shown me, while in discharge of +my duties as presiding officer, by every Member of the Senate. + + "Very truly yours, + "John Sherman." + +I said that if there was no objection the communication would be +entered in the journal and placed among the files of the Senate. +On the 25th John J. Ingalls was elected president _pro tempore_, +to take effect the next day. On that day I said: + +"Before administering the oath of office to his successor the +occupant of the chair desires again to return to his fellow Senators +his grateful acknowledgments for their kind courtesy and forbearance +in the past. + +"It is not a difficult duty to preside over the Senate of the United +States. From the establishment of our government to this time the +Senate has always been noted for its order, decorum, and dignity. +We have but few rules, and they are simple and plain; but we have, +above all and higher than all, that which pervades all our proceedings +--the courtesy of the Senate, which enables us to dispose of nearly +all of the business of the Senate without question or without +division. I trust that in the future, as in the past, this trait +of the Senate of the United States will be preserved intact, and +I invoke for my successor the same courtesy and forbearance you +have extended to me. I now invite him to come forward and take +the oath of office prescribed by law." + +Mr. Ingalls advanced to the desk of the president _pro tempore_, +and, the oath prescribed by law having been administered to him, +he took the chair, and said: + +"Senators, I must inevitably suffer disparagement in your estimation, +by contrast with the parliamentary learning and skill, the urbanity +and accomplishments of my illustrious predecessor, but I shall +strive to equal him in devotion to your service, and I shall +endeavor, if that be possible, to excel him in grateful appreciation +of the distinguished honor of your suffrages." + +Mr. Harris offered the following resolution, which was unanimously +adopted; + +"_Resolved_, That the thanks of the Senate are hereby tendered to +Hon. John Sherman, for the able and impartial manner in which he +has administered the duties of the office of president _pro tempore_ +during the present Congress." + + +CHAPTER LII. +VISIT TO CUBA AND THE SOUTHERN STATES. +Departure for Florida and Havana--A Walk Through Jacksonville-- +Impressions of the Country--Visit to Cigar Factories and Other +Places of Interest--Impressions of Cuba--Experience with Colored +Men at a Birmingham Hotel--The Proprietor Refuses to Allow a +Delegation to Visit Me in my Rooms--Sudden Change of Quarters-- +Journey to Nashville and the Hearty Reception Which Followed--Visit +to the Widow of President Polk--My Address to Nashville Citizens-- +Comment from the Press That Followed It--An Audience of Workingmen +at Cincinnati--Return Home--Trip to Woodbury, Conn., the Home of +My Ancestors--Invitation to Speak in the Hall of the House of +Representatives at Springfield, Ill.--Again Charged with "Waving +the Bloody Shirt." + +At the close of the session of Congress, early in March, a congenial +party was formed to visit Florida and Havana. It was composed of +Senator Charles F. Manderson, wife and niece, Senator T. W. Palmer +and niece, General Anson G. McCook and wife, and myself and daughter. +We were accompanied by E. J. Babcock, my secretary, and A. J. +Galloway and son, in the employ of the Coast Line road, over which +we were to pass. We stopped at Charleston, where the ravages of +a recent earthquake were everywhere visible. Fort Sumter, which +we visited, was a picture of desolation. Such a large party +naturally attracted attention. At Jacksonville we encountered our +first reporter. He showed me an article in which it was stated +that we were on a political trip. This I disclaimed and said we +had not heard politics mentioned since we left Washington, that we +were tired out after Congress completed its work and made up a +party and started off merely for rest and recreation. I remarked +that I had been in every state in the Union but one, and wanted to +finish up the list by seeing Florida. A colloquy as given by the +reporter was as follows: + +"Well, Senator, my errand was for the purpose of getting your +opinion on matters political." + +"I am out of politics just now. I want to rest and I do not want +politics to enter my head for two weeks." + +"Then you say positively that you are not down here to look after +your fences for a presidential boom in 1888?" + +"Most decidedly not. I will not say a word about politics until +I reach Nashville on my return. There I take up the political +string again and will hold to it for some time." + +Manderson proposed a walk through the city, the reporter being our +guide. Orange trees were to be seen on every side. We were +surprised to find so large and prosperous a city in Florida, with so +many substantial business houses and residences. The weather was +delightful, neither too hot nor too cold, and in striking contrast +with the cold and damp March air of Washington. From Jacksonville +we went in a steamboat up the St. John's River to Enterprise. +Florida was the part of the United States to be first touched by +the feet of white men, and yet it seemed to me to be the most +backward in the march of progress. It was interesting chiefly from +its weird and valueless swamps, its sandy reaches and its alligators. +It is a peninsula, dividing the Gulf of Mexico from the ocean, and +a large part of it is almost unexplored. The part we traversed +was low, swampy, with dense thickets, and apparently incapable of +reclamation by drainage. The soil was sandy and poor and the +impression left on my mind was that it could not be made very +productive. There were occasional spots where the earth was far +enough above the sea to insure the growth of orange trees, but even +then the soil was thin, and to an Ohio farmer would appear only to +be a worthless sand bank. This, however, does not apply to all +points in Florida, especially not to the Indian River region, where +fine oranges and other semitropical fruits are raised in great +abundance. The Indian River is a beautiful body of water, really +an arm of the sea, on the eastern coast of Florida, separated from +the Atlantic by a narrow strip of land. The water is salt and +abounds in game and fish. + +At Sanford our party was joined by Senator Aldrich and his wife, +and we proceeded by way of Tampa and Key West to Havana, where we +arrived on the 17th of March. The short sail of ninety miles from +Key West transported us to a country of perpetual summers, as +different from the United States as is old Egypt. After being +comfortably installed in a hotel we were visited by Mr. Williams, +our consul general, who brought us an invitation from Captain +General Callejas to call upon him. We did so, Mr. Williams +accompanying us as interpreter. We were very courteously received +and hospitably entertained. The captain general introduced us to +his family and invited us to a reception in the evening, at which +dancing was indulged in by the younger members of the party. We +spent four very pleasant days in the old city, visiting several of +the large cigar factories, a sugar plantation in the neighborhood +and other scenes strange to our northern eyes. The ladies supplied +themselves with fans gaily decorated with pictures of bull fights, +and the men with Panama hats, these being products peculiar to the +island. + +Among the gentlemen of the party, as already stated, was Frank G. +Carpenter, a bright young man born at Mansfield, Ohio, who has +since made an enviable reputation as a copious and interesting +letter writer for the press. His description of Havana is so true +that I insert a few paragraphs of it here: + +"Havana has about 300,000 inhabitants. It was a city when New York +was still a village, and it is now 100 years behind any American +town of its size. It is Spanish and tropical. The houses are low +stucco buildings put together in block, and resting close up to +narrow sidewalks. Most of them are of one or two stories, and +their roofs are of red tile which look like red clay drain pipes +cut in two and so laid that they overlap each other. The residences +are usually built around a narrow court, and their floors are of +marble, tile or stone. This court often contains plants and flowers, +and it forms the loafing place of the family in the cool of the +evening. + +"These streets of Havana are so narrow that in some of them the +carriages are compelled to go in one direction only. When they +return they must go back by another street. The sidewalks are not +over three feet wide, and it is not possible for two persons to +walk abreast upon them. The better class of Cubans seldom walk, +and the cabbys are freely called upon. The cab of Havana is a +low Victoria holding two or three persons. Their tops come down +so as to shade the eyes, and they have springs which keep every +molecule of your body in motion while you ride in them. The horses +use are hardy mongrel little ponylike animals, who look as though +they were seldom fed and never cleaned. + +"The traffic of Havana is largely done by oxen, and the two-wheeled +cart is used exclusively. This cart is roughly made and it has a +tongue as thick as a railroad tie, nailed to the body of the cart, +and which extends to the heads of the oxen and is there fastened +by a great yoke directly to the horns. The Cuban ox pulls by his +head and not his shoulders. This yoke is strapped by ropes across +the foreheads of the oxen, and they move along with their heads +down, pushing great loads with their foreheads. They are guided +by rope reins fastened to a ring in the nose of the ox. Some of +the carts are for a single ox, and these have shafts of about the +same railroad tie thickness, which are fastened to a yoke which is +put over the horns in the same manner. Everything is of the rudest +construction and the Egyptians of to-day are as well off in this +regard. + +"Prices of everything here seem to me to be very high, and the +money of the country is dirty, nasty paper, which is always below +par, and of which you get twelve dollars for five American ones. +A Cuban dollar is worth about forty American cents, and this Cuban +scrip is ground out as fast as the presses can print it. The lower +denominations are five, ten, twenty and fifty cent pieces, and you +get your boots blacked for ten Spanish cents. Even the gold of +Cuba is below par, about six per cent. below the American greenback, +and most of it and the silver in use has been punched or chipped +to make money off of the pieces thus cut out. The country is deeply +in debt, and the taxes are very heavy." + +On the return voyage a strong northwest wind sprang up, and most +of the party, especially the ladies, experienced the disagreeable +effects of being on a small steamer in a rough sea. They had, +however, all recovered by the time we reached Tampa, and as soon +as we landed we started for Jacksonville. + +In an interview shortly after my return from Cuba, I thus gave the +impression made upon my mind as to its condition: + +"And how did you enjoy your visit to Cuba?" + +"We spent four days in Havana. Nobody could be treated with greater +courtesy. You know Spanish courtesy is never surpassed anywhere. +But that cannot prevent me from saying that Cuba is in a deplorable +condition. I should judge from what I heard from intelligent Cuban +Americans living there, and even Spaniards themselves, that the +island is in a condition of ill-suppressed revolt. Natives are +nearly to a man in favor of annexation to us. I think they have +given over the idea of independence, for they begin to recognize +that they are incapable of self-government. Their condition is +indeed pitiable. No serfs in Russia were ever greater slaves than +the Cubans are to Spain. The revenue they must raise yearly for +Spain, and for which they get no benefit whatever, except the name +of a national protection and the aegis of a flag, is $16,000,000. +They have no self-government of any kind. From captain general +down to the tide-waiter at the docks, the official positions are +held by Spaniards. I venture to say that not a single native Cuban +holds an office or receives public emolument. In addition to the +$16,000,000 sent annually to Spain, Cuba has to pay the salaries +of all the Spanish horde fastened upon her." + +"Do you think the native planters, the wealthier classes, that is, +favor annexation to the United States?" + +"Yes, I am told all of them are anxious for it, but I don't think +we want Cuba as an appendage to the United States. I would not +favor annexation. In spite of the drains upon her, Cuba is enormously +rich in resources, and is a large consumer of our products, on +which at present the heavy Spanish duties rest. What I would favor +would be a reciprocity treaty with Spain, as to Cuba, so that we +might send our goods there instead of forcing the Cubans to buy of +England, France and Germany. We could do the island much more good +by trading with her on an equal basis than we ever can by annexing +her. Cuba, to some extent, is under our eye, we would probably +never let any other nation than Spain own the island, but so long +as Spain does own it she is welcome to it if she will only let us +sell our goods on equal or better terms than the Cubans can get +them for elsewhere." + +I had some time previously accepted an invitation of the members +of the Tennessee legislature to address them, and, therefore, at +Jacksonville left the remainder of the party to pursue their way +to Washington at their leisure, while I started for Nashville, +accompanied by Mr. Babcock and Mr. Mussey. Having a few days to +spare before my appointment at that place, and having heard much +of the wonderful progress and development of the iron industry at +Birmingham, Alabama, I determined to stop at that place. On our +arrival we went to the Hotel Florence, and at once met the "ubiquitous +reporter." My arrival was announced in the papers, and I was soon +called upon by many citizens, who proposed that an informal reception +be held in the dining room of the hotel that evening, to which I +had no objection. Among those present were ex-Senator Willard +Warner, and a number of the leading men who had so quickly transformed +an open farm into the active and progressive city of Birmingham. +The reception was held and was a very pleasant affair. Being called +upon for a speech I made a few remarks, which were well received, +and as the gentlemen present expressed a desire to have a larger +meeting I consented to speak on the following evening at the opera +house. + +That afternoon, when my room was thronged with callers, most of +whom were Democrats, I was handed the following note: + + "Birmingham, Ala., March 20, 1887. +"Hon. John Sherman, U. S. Senator. + +"Dear Sir:--The undersigned, citizens of Birmingham, Alabama, take +this method of writing you to extend your visit from Nashville, +Tennessee, to our growing city, and bear witness to its development +and progress in the prospective mining, manufacturing and business +metropolis of the state. Feeling confident that you are naturally +interested in our welfare and happiness, American citizens in every +capacity and relation in life, we earnestly trust that you will +comply with our solicitation. + + "Yours respectfully, + "Sam'l R. Lowery, Editor 'Southern Freemen.' + "A. L. Scott, Real Estate Agent. + "W. R. Pettiford, J. M. Goodloe, A. J. Headon, A. D. Jemison and +R. Donald, Pastors of Colored Churches in Birmingham, Ala." + +The letter was written to be sent me at Nashville, when it was not +known that I was at Birmingham, and was indorsed as follows; + +"Hon. John Sherman, U. S. Senator. + +"Dear Sir:--A colored delegation, as given above, desires to call +upon you to-morrow morning at 10 o'clock or at 3. Please do us +the kindness to say if we may see you, and when. + + "Yours faithfully, + "A. L. Scott." + +I at once sent word to the delegation that I would see them in my +room the next morning at 10 o'clock, having already arranged to +accompany some gentlemen on an excursion among the mines and other +evidences of Birmingham's boom at 11 a. m. The next morning I +waited in my room with General Warner, Judge Craig and others until +11 o'clock, and, the delegation not appearing, was about to start +on my visit to the mines, when the following note was handed me by +one of the colored servants of the house: + + "Birmingham, Ala. +"Hon. John Sherman. + +"Dear Sir:--In accordance with arrangement, a committee of colored +citizens of the United States and the State of Alabama came to see +you at 10 o'clock this morning. The proprietor of the Florence +hotel declined to allow us to visit your room, and said if we +desired to see you we must see you outside of the Florence hotel. +We regret the occurrence, as the committee is composed of the best +colored citizens of the community. + + "Yours respectfully, + "A. L. Scott, + "W. R. Pettiford, + "Samuel R. Lowery, + "R. C. D. Benjamin, + "Albert Boyd." + +I requested General Warner and Judge Craig to go to the proprietor +of the hotel and ask him if it was true that he had forbidden +certain men going to my room. The proprietor informed them that +it was true; it was against his rules to allow any colored people +to go upstairs except the servants. I said I would not allow a +hotel proprietor to say whom I should or should not receive in my +room. That was a question I chose to decide for myself. I therefore +immediately paid my bill and went to the Metropolitan hotel, where +the delegation made their call. Their only object was to read to +me an address of welcome to the city in behalf of the colored +people. Their address was well expressed and they were evidently +intelligent and respectable men. They welcomed me cordially in +behalf of their race and countrymen, and said: + +"While we respect your political and statesmanlike life, not an +event has equaled your manly and heroic conduct in Birmingham, +Alabama, in respect to the persecuted, proscribed and downtrodden +black citizens, on account of their race, color and proscription +in this city and state. + +"When you stated to the tavern keeper, if the black citizens were +not permitted to visit you there, you would go to another tavern, +and if not permitted, you would stop with your baggage in the street +and receive them, shows a sympathy and sentiment that you, though +honored and able, feel bound with them and to them. And every +black man, woman and child thenceforward in our state will pray +Heaven's favor shall follow you and yours to a throne of grace for +Sherman, Ohio's noblest, heroic and patriotic statesman." + +In reply I expressed pleasure at meeting the colored people, and, +touching the Florence hotel affair, advised forbearance. "Be true +to yourselves," I said, "be industrious, maintain your own manhood, +and they day will come when you can command recognition as men and +citizens of the United States, free and equal with all others." +I assured them that I entertained as high respect for colored people +as I did for any other citizens. + +I mention this incident at some length because, at the time, it +excited much comment in the press throughout the United States. +It is but fair to say that the action of the hotel proprietor was +condemned by the leading Democrats of Birmingham, prominent among +whom was the editor of the "Iron Age." + +In the evening I spoke at the opera house, which was well filled +with representative citizens. I was introduced by Rufus M. Rhodes, +president of the News Publishing Company. My speech was confined +mainly to nonpartisan subjects, to the industries in that section, +and the effect of national legislation upon them. I had read of +the vast deposits of coal and iron in that section, and had that +day seen them for myself. I said: "You have stored in the +surrounding hills elements of a wealth greater than all the banks +of New York." In speaking of the effect of national legislation +upon the development of their resources, I said I would not allude +to politics, because, though a strict party man, as they all knew, +I believed that men who differed with me were as honest as I was; +that whatever might have occurred in the past, we were a reunited +people; that we had had our differences, and men of both sides +sought to have their convictions prevail, but I would trust the +patriotism of an ex-Confederate in Alabama as readily as an ex- +Unionist in Ohio; that I was not there to speak of success in war, +but of the interests and prosperity of their people. My nonpartisan +speech was heartily approved. General Warner made a brief address +to his former constituents, and the meeting then adjourned. + +I went the next day to Nashville, arriving early in the evening. +A committee of the legislature met me on my way. On my arrival I +met many of the members of both political parties, and was the +recipient of a serenade at which William C. Whitthorne, a Democratic +Member of Congress, made a neat speech welcoming me to the hospitality +of the state. None of the speeches contained any political +sentiments, referring mainly to the hopeful and prosperous outlook +of the interests of Tennessee. During the next day I visited with +the committee, at the head of which was Mr. Kerchival, the mayor +of the city, several manufacturing establishments, and the Fisk +and Vanderbilt universities, and also a school for colored boys. +Among the more agreeable visits that day was one made at the +residence of Mrs. Polk, the widow of President Polk. I remembered +her when she was the honored occupant and mistress of the White +House, at the time of my first visit to Washington in the winter +of 1846-47. She was still in vigorous health, and elegant and +dignified lady. + +I wish here to express my grateful appreciation of the reception +given me by the people of Nashville on this occasion. There was +no appearance of mere form and courtesy due to a stranger among +them, but a hearty general welcome, such as would be extended to +one representing their opinions and identified with their interests. +I met there several gentlemen with whom I had served in Congress, +most of whom had been in the Confederate service. One of them paid +me a compliment after hearing my speech by saying: "Sherman, your +speech will trouble the boys some, but I could answer you." + +This speech was made on the evening of the 24th of March, 1887, in +the hall of the house of representatives. It was carefully prepared +with the expectation that it would be delivered to an unsympathetic +audience of able men. I delivered it with scarcely a reference to +my notes, and substantially in the language written. Tennessee +and Kentucky had been Whig states, strongly in favor of protection, +and before the war were represented by John Bell and Henry Clay. +I claimed my fellowship with the people of Tennessee in the old +Whig times, and, aside from the questions that grew out of the war, +assumed that they were still in favor of the policy of protection +of American industries by tariff laws. I did not evade the slavery +question or the War of the Rebellion, but said of them what I would +have said in Ohio. I made an appeal on behalf of the negro, and +quoted what Senator Vest had eloquently said, that "the southern +man who would wrong them deserves to be blotted from the roll of +manhood." All we asked for the negro was that the people of +Tennessee would secure to him the rights and privileges of an +American citizen, according to the constitution of the United +States. I then presented the questions of the hour, taxation, +currency, public credit, foreign and domestic commerce, education +and internal improvements. On these questions I said the people +of Tennessee had like interests and opinions with the people of +Ohio, that the past was beyond recall, that for evil or good the +record was made up and laid away. I discussed each of these +subjects, dwelling mainly on taxation and currency; in the one was +the protection and promotion of home industries, and in the other +was the choice between bank notes of the olden time, and United +States notes and national bank notes secured by the bonds of the +United States. I closed with these words: + +"But I do, in the presence of you all, claim for the Republican +party, and defy contradiction, that in the grandeur of its +achievements, in the benefits it has conferred upon the people, in +the patriotic motives that have animated it, and the principles +that have guided it, in the fidelity, honesty, and success of its +administration of great public trusts, it will compare favorably +with the record of any administration of any government in ancient +or modern times. We ask you to aid us, to help us. We make this +appeal in the same words to the Confederate gray as to the Union +blue--to whoever in our great country is willing in the future to +lend a helping hand or vote to advance the honor, grandeur and +prosperity of this great republic." + +The speech, being made by a Republican at the capital of a southern +Democratic state, attracted great attention from the public press, +and, much to my surprise, several of the leading Democratic and +independent papers commended it highly. This was notably the case +with the Louisville "Courier Journal," the Washington "Evening +Star," and the New York "Herald." A brief extract from the latter +is given as an indication of public sentiment: + +"Senator Sherman's Nashville speech is the first address on national +politics ever spoken by a Republican of national reputation to a +southern audience. He was welcomed by the prominent citizens of +the Tennessee capital, and spoke to a crowded and attentive audience +in the hall of representatives. + +"Both the speech and the welcome the speaker received are notable +and important events. Mr. Sherman spoke as a Republican in favor +of Republican politics, and what he said was frankly and forcibly +put. If the Republican leaders are wise they will take care to +circulate Mr. Sherman's Nashville speech all over the south, and +through the north as well. He spoke for high protection, for +internal improvements, for liberal expenditures on public buildings, +for the Blair education bill, for the maintenance of the present +currency system, and for spending the surplus revenue for public +purposes. + +"All that is the straightest and soundest Republican doctrine. He +told his hearers, also, that the war is over, and that the interests +of Tennessee and other southern states must naturally draw them to +the Republican party. He spoke to attentive ears." + +The speech was reprinted and had considerable circulation, but, +like the shadows that pass, it is probably forgotten by all who +heard or read it. I consider it as one of the best, in temper, +composition and argument, that I ever made. + +It had been arranged that I was to be driven to Saint Paul's chapel +after the meeting. The occasion was the assemblage of the educational +association of the African Methodist Episcopal church, and their +friends. The chapel was a large, handsome, well-furnished room, +and was crowded to the door with well-dressed men and women. Dr. +Bryant made an address of welcome, and Bishop Turner introduced me +to the audience. I made a brief response and excused myself from +speaking further on account of fatigue. General Grosvenor and ex- +Senator Warner made short speeches. Our party then returned to +the hotel. To me this meeting was a surprise and a gratification. +Here was a body of citizens but lately slaves, who, in attendance +on religious services and afterward remaining until a late hour +listening to us, behaved with order, attention and intelligence. +The report of my remarks, as given in their newspapers, was as +follows: + +"Senator Sherman said that the praise of himself had been too high. +He had voted for the emancipation of the negro race in the District +of Columbia, an event which had preceded the emancipation proclamation +of Abraham Lincoln. He supported it as a great act of national +authority and of justice. Therefore, he could appear as a friend +of the race and of liberty. He had not voted for it because they +were negroes, but he had voted for it because they were men and +women. He would have voted for the whites as well. He spoke of +the society and said any measure that would tend to elevate the +race he was in favor of. What the race wanted was not more rights +but more education. Their rights were secured to them by the +constitution of the United States, and the time would come when +they would enjoy them as freely as anyone. They should not be +impatient to advance. Prejudice could not be overcome in a short +period. He said the best way to overcome all prejudice was by +elevating themselves; but not by gaudy extravagance, groans, abuse, +war, or tumult of war. They had the same right to become lawyers, +doctors, soldiers and heroes as the white man had. + +"When they became as advanced as the whites around them there would +be no trouble about their franchises. Now they were free men and +they should become freeholders. After they had got education they +should accumulate property." + +On the next morning I left Nashville for Cincinnati, where I arrived +on the evening of the 25th of March and took lodgings at the Gibson +House. I was to speak at Turner Hall on the next evening, under +the auspices of the Lincoln and Blaine clubs. It was a busy day +with me in receiving calls and in visiting the chamber of commerce +and the two clubs where speeches were made and hand shaking done. +Still, I knew what I was to say at the meeting, and the composition +of the audience I was to address. The hall is large, with good +acoustic qualities, and in it I had spoken frequently. It is situated +in the midst of a dense population of workingmen, and was so crowded +that night in every part that many of the audience were compelled +to stand in the aisles and around the walls. On entering I mentally +contrasted my hearers with those at Faneuil Hall and Nashville. +Here was a sober, attentive and friendly body of workingmen, who +came to hear and weigh what was said, not in the hurry of Boston +or with the criticism of political opponents as in Nashville, but +with an earnest desire to learn and to do what was best for the +great body of workingmen, of whom they were a part. I was introduced +in a kindly way by ex-Governor Noyes. After a brief reference to +my trip to Florida and Cuba, I described the country lying southwest +of the Alleghany mountains, about two hundred miles wide, extending +from Detroit to Mobile, destined to be the great workshop of the +United States, where coal and iron could be easily mined, where +food was abundant and cheap, and in a climate best fitted for the +development of the human race. In this region, workingmen, whether +farmers, mechanics or laborers, would always possess political +power as the controlling majority of the voters. I claimed that +the Republican party was the natural home of workingmen, that its +policy, as developed for thirty years, had advanced our industrial +interests and diversified the employments of the people. This led +to a review of our political policy, the homestead law, the abolition +of slavery, good money always redeemable in coin, the development +of manufactures and the diversity of employments. I discussed the +creation of new parties, such as the labor party and the temperance +party, and contended that their objects could better be attained +by the old parties. I referred to the organization of a national +bureau of labor, to a bill providing for arbitration, and other +measures in the interest of labor. I stated the difficulties in +the way of the government interposing between capital and labor. +They were like husband and wife; they must settle their quarrels +between them, but the law, if practicable, should provide a mode +of adjustment. I closed with the following appeal to them as +workingmen: + +"Let us stand by the Republican party, and we will extend in due +time our dominion and power into other regions; not by annexation, +not by overriding peaceable and quiet people, but by our commercial +influence, by extending our steamboat lines into South America, +by making all the Caribbean Sea one vast American ocean; by planting +our influence among the sister republics, by aiding them from time +to time, and thus, by pursuing an American policy, become the ruler +of other dominions." + +From Cincinnati, after a brief visit to Mansfield, I returned to +Washington to await the opening of spring weather, which rarely +comes in the highlands of Ohio until the middle of May. + +General Sherman and I had been invited several times to visit +Woodbury, Connecticut, for nearly two centuries the home of our +ancestors. In April, both being in Washington, we concluded to do +so, and advised Mr. Cothron, the historian of Woodbury, of our +purpose. We arrived in the evening at Waterbury, and there found +that our coming was known. Several gentlemen met us at the depot +and conducted us to the hotel, some of them having served with +General Sherman in the Civil War. Among them was a reporter. We +explained to him that we were on our way to Woodbury, had no plans +to execute, intended to erect no monuments, as was stated, and only +wished to see where our ancestors had lived and died. General +Sherman was rather free in his talk about the steep hills and cliffs +near High Rock grove. These he admired as scenery, but he said: +"I cannot see how this rocky country can be converted into farming +lands that can be made profitable;" also "I am indeed pleased to +think that my ancestors moved from this region to Ohio in 1810." +Among the callers was S. M. Kellogg, who had served with me in +Congress. + +The next morning we went to Woodbury, called on William Cothron, +and proceeded to the cemetery and other places of note in the +neighborhood. In this way the day was pleasantly spent. I thought +there were signs of decay in the old village since my former visit, +but this may have been caused by the different seasons of the year +at which these visits were made. Woodbury looks more like an +England shire town than any other in Connecticut. Its past history +was full of interest, but the birth and growth of manufacturing +towns all around eclipsed it and left only its memories. After +visiting the site of the old Sherman homestead, about a mile from +town, and the famous Stoddard house, in which my grandmother was +born, we returned to New York. + +I had been invited by the officers and members of the Illinois +legislature, then in session at Springfield, to speak in the hall +of the house of representatives on the political issues of the day. +I accepted with some reluctance, as I doubted the expediency of a +partisan address at such a place. My address at Nashville, no +doubt, led to the invitation; but the conditions were different in +the two cities. At Nashville it was expected that I would make a +conciliatory speech, tending to harmony between the sections, while +at Springfield I could only make a partisan speech, on lines well +defined between the two great parties, and, as I learned afterwards, +by reason of local issues, to a segment of the Republican party. +Had I known this in advance I would have declined the invitation. + +The 1st of June was the day appointed. I arrived in Chicago, at +a late hour, on the 29th of May, stopping at the Grand Pacific +hotel, and soon after received the calls of many citizens in the +rotunda. On the evening of the 30th I was tendered a reception by +the Union League club in its library, and soon became aware of the +fact that one segment of the Republican party, represented by the +Chicago "Tribune," was not in attendance. The reception, however, +was a very pleasant one, greatly aided by a number of ladies. + +The next morning, accompanied by Senator Charles B. Farwell and a +committee of the club, I went to Springfield. I have often traversed +the magnificent State of Illinois, but never saw it clothed more +beautifully than on this early summer day. The broad prairies +covered with green, the wide reaches of cultivated land, rich with +growing corn, wheat and oats, presented pictures of fertility that +could not be excelled in any portion of the world. I met Governor +Oglesby and many leading citizens of Illinois on the way, and on +my arrival at Springfield was received by Senator Cullom and other +distinguished gentlemen, and conducted to the Leland hotel, but +soon afterward was taken to the residence of Senator Cullom, where +several hours were spent very pleasantly. Later in the evening I +attended a reception tendered by Governor and Mrs. Oglesby, and +there met the great body of the members of the legislature and many +citizens. + +On the 1st of June an elaborate order of arrangements, including +a procession, was published, but about noon there came a heavy +shower of rain that changed the programme of the day. A platform +had been erected at the corner of the statehouse, from which the +speaking was to be made. This had to be abandoned and the meeting +was held in the hall of the house of representatives, to which no +one could enter without a ticket. + +It was not until 2:40 p. m. that we entered the hall, when Governor +Oglesby, taking the speaker's chair, rapped for order and briefly +addressed the assembly. I was then introduced and delivered the +speech I had prepared, without reading or referring to it. It was +published and widely circulated. The following abstract, published +in the Chicago "Inter-Ocean," indicates the topics I introduced: + +"The Senator began first to awaken applause at the mention of the +name of Lincoln, repeated soon after and followed by a popular +recognition of the name of Douglas. He quoted from Logan, and +cheers and applause greeted his words. There was Democratic applause +when he proclaimed his belief 'that had Douglas lived he would have +been as loyal as Lincoln himself,' and again it resounded louder +still when Logan received a hearty tribute. He touched upon the +successes of our protective policy, and again the applause accentuated +his point. He exonerated the Confederate soldier from sympathy +with the atrocities of reconstruction times, and his audience +appreciated it. He charged the Democratic party in the south with +these atrocities and the continual effort to deprive the negro of +his vote, and the audience appreciated that. His utterance that +he would use the power of Congress to get the vote of a southern +Republican counted at least once, excited general applause. They +laughed when he asked what Andrew Jackson would have thought of +Cleveland, and they laughed again when he declared the Democrats +wanted to reduce the revenue, but didn't know how. He read them +the tariff plank in the Confederate platform, and they laughed to +see how it agreed with the same plank in the Democratic platform. +From discussion of the incapacity of the Democrats to deal with +the tariff question, from their very construction of the constitution, +the Senator passed to the labor question, thence carrying the +interest of his hearers to the purpose of the Republicans to educate +the masses, and make internal improvements. His audience felt the +point well made when he declared the President allowed the internal +improvement bill to expire by a pocket veto because it contained +a $5,000 provision for the Hennepin Canal. In excellent humor the +audience heard him score the Democracy for its helplessness to meet +the currency question, and finally pass, in his peroration, to an +elaboration of George William Curtis' eulogy of the achievements +of the Republican party. He read the twelve Republican principles, +and each utterance received its applause like the readoption of a +popular creed. 'The Democrats put more jail birds in office in +their brief term than the Republicans did in the twenty-four years +of our magnificent service,' exclaimed Senator Sherman, and his +audience laughed, cheered, and applauded. Applause followed each +closing utterance as the Senator outlined the purposes of the party +for future victory, and predicted that result, the Democrats under +the Confederate flag, the Republicans under the flag of the Union." + +I returned the next day to Chicago, and in the evening was tendered +a public reception in the parlors of the Grant Pacific hotel. +Although Chicago was familiar to me, yet I was unknown to the people +of Chicago. One or two thousand people shook hands with me and +with them several ladies. Among those I knew were Justice Harlan, +Robert T. Lincoln and Walker and Emmons Blaine. + +Upon my return to Mansfield I soon observed, in the Democratic and +conservative papers, hostile criticism of my Springfield speech, +and especially of my arraignment of the crimes at elections in the +south, and of the marked preference by Cleveland in the appointments +to office of Confederate soldiers rather than Union soldiers. A +contrast was made between the Nashville and Springfield speeches, +and the latter was denounced as "waving the bloody shirt." Perhaps +the best answer to this is the following interview with me, about +the middle of June: + +"So much fault is found with the Springfield speech by the opponents +of the Republican party, and so many accusations made of inconsistency +with the Nashville speech, that perhaps you may say--what you meant +--what the foremost purpose was in both cases?" + +"I meant my Springfield speech to be an historical statement of +the position of the two parties and their tendencies and aims in +the past and for the future. In this respect it differed from the +Nashville speech, which was made to persuade the people of the +south, especially of Tennessee, that their material interests would +be promoted by the policy of the Republican party." + +"Do you find anything in the Springfield speech to moderate or +modify?" + +"I do not think I said a word in the Springfield speech but what +is literally true, except, perhaps, the statement that 'there is +not an intelligent man in this broad land, of either party, who +does not know that Mr. Cleveland is now President of the United +States by virtue of crimes against the elective franchise.' This +may be too broad, but upon a careful analysis I do not see how I +could modify it if fair force is given to the word 'intelligent.'" + +"You stand by the speech, then?" + +"Well, since the speech has been pretty severely handled by several +editors whom I am bound to respect, I have requested it to be +printed in convenient form, and intend to send it to these critics +with a respectful request that they will point out any error of +fact contained in it, or any inconsistency between it and my +Nashville speech." + +"You do not admit that the two speeches are in two voices?" + +"I can discover no inconsistency. And now, after seeing and +weighting these criticisms, I indorse and repeat every word of both +speeches. It may be that the speech was impolitic, but, as I have +not usually governed my speeches and conduct by the rule of policy, +as distinguished from the rule of right, I do not care to commence +now." + +"What about the persistent charge of unfriendliness to southern +people and the accusation that you are shaking the bloody shirt?" + +"I do not see how the arraignment of election methods that confessedly +destroy the purity or the sanctity of the ballot box, and deprive +a million of people of their political rights, can be ignored or +silenced in a republic by the shoo-fly cry of 'bloody shirt.'" + +"Is there no hope of persuasion of the southern people at large to +see the justice of the demand for equal political rights?" + +"I cannot see any reason why the Confederate cause, which was +'eternally wrong,' but bravely and honestly fought out, should be +loaded down with the infamy of crimes which required no courage, +committed long since the war, by politicians alone, for political +power and for the benefit of the Democratic party. I can find some +excuse for these atrocities in the strong prejudice of caste and +race in the south, growing out of centuries of slavery, but I can +find no excuse for any man of any party in the north, who is willing +to submit to have his political power controlled and overthrown by +such means." + + +CHAPTER LIII. +INDORSED FOR PRESIDENT BY THE OHIO STATE CONVENTION. +I Am Talked of as a Presidential Possibility--Public Statement of +My Position--Unanimous Resolution Adopted by the State Convention +at Toledo on July 28, 1887--Text of the Indorsement--Trip Across +the Country with a Party of Friends--Visit to the Copper and Nickel +Mining Regions--Stop at Winnipeg--A Day at Banff--Vast Snowsheds +Along the Canadian Pacific Railroad--Meeting with Carter H. Harrison +on Puget Sound--Rivalry Between Seattle and Tacoma--Trying to Locate +"Mount Tacoma"--Return Home After a Month's Absence--Letter to +General Sherman--Visit to the State Fair--I Attend a Soldiers' +Meeting at Bellville--Opening Campaign Speech at Wilmington--Talk +to Farmers in New York State--Success of the Republican Ticket in +Ohio--Blaine Declines to Be a Candidate. + +During the months of June and July, 1887, the question of the +selection of the Republican candidate for President in the following +year was discussed in the newspapers, in the conventions, and among +the people. The names of Blaine and myself were constantly canvassed +in connection with that office, and others were named. I was +repeatedly written to and talked with about it, and uniformly said, +to warm personal friends, that in view of my experience at previous +national conventions I would not be a candidate without the support +of a united delegation from Ohio, and the unanimous indorsement of +a state convention. I referred to the fact that in every period +of my political career I had been supported by the people of Ohio, +and would not aspire to a higher position without their hearty +approval. This statement was openly and publicly made and published +in the newspapers. The "Commercial Gazette," of Cincinnati was +authorized to make this declaration: + +"If the Republicans of Ohio want Mr. Sherman for their presidential +candidate they can say so at the Toledo convention. If not, Mr. +Sherman will be entirely content with the position he now occupies, +and will not be in the field as a presidential candidate." + +I also wrote the following to a friend, and it was afterwards +published: + +"I do not want to be held up to the people of the United States as +a presidential candidate if there is any doubt about Ohio. I do +not, as many think, seek for the high honor, nor do I ask anyone to +aid me in securing the nomination. I am as passive about it as +any man can be whose merits or demerits are discussed in that +connection. I do not desire the nomination, nor shall I encourage +anyone to secure it for me until Ohio Republicans, who have conferred +upon me the honors I have enjoyed, shall, with substantial unanimity, +express their wish for my nomination." + +This led my friends to determine to present this question to the +approaching state convention at Toledo. It was said that, as this +would be held in a year in advance of the national convention, it +was too soon to open the subject, but the conclusive answer was +that no other state convention would be held prior to the national +convention, and that it was but fair that I should have the chance +to decline if there should be a substantial difference of opinion +in the convention, and should have the benefit of its approval if +it should be given. + +It was understood that Governor Foraker would be unanimously +renominated for governor. He doubted the policy of introducing in +that contest a resolution in favor of my nomination for President, +but said it if should be passed he would support it. The press of +the state was somewhat divided as to the policy of the convention +making a declaration of a choice for President, but indicated an +almost universal opinion that there should be an undivided delegation +in favor of my nomination. As the convention approached, the +feeling in favor of such declaration grew stronger, and when it +met at Toledo, on the 28th of July, there was practically no +opposition. After the preliminary organization ex-Governor Foster +reported a series of resolutions, which strongly indorsed me for +President, and highly commended Foraker for renomination as governor. +The convention called for the rereading of these resolutions and +they were applauded and unanimously adopted. The committee on +permanent organization nominated me as chairman of the convention. +In assuming these duties I made a speech commending the nomination +of Governor Foraker and the action of the recent general assembly, +and closed with these words: + +"I have but one other duty to perform, and that I do with an +overflowing heart. I thank you with all my heart for the resolution +that you have this day passed in respect to your choice for a +President of the United States. I know, my fellow-citizens, that +this is a matter of sentiment. I know that this resolution is of +no importance unless the voters of the States of Ohio and of the +several states should, in their free choice, elect delegates who +will agree with you in your opinion. I recognize the district +rule, and the right of every district to speak its own voice. I +stood by that rule in 1880, when I knew that its adoption would +cut off all hopes of my friends at that time. I also knew that +there was another rule, that no man ought to be held as a candidate +for that high office unless he has the substantial, unanimous voice +of his party friends behind him. I believe that is a true rule, +and it ought to be exercised to promote harmony and good will and +friendship among Republicans. Now, my countrymen, again thanking +you for this expression, I tell you with all frankness that I think +more of your unanimous praise this day uttered than I do of the +office of President of United States." + +The resolution, as adopted, was as follows: + +"Recognizing, as the Republicans of Ohio always have, the gifted +and tried statesmen of the Republican party of other states, loyal +and unfaltering in their devotion to the success of the organization +in 1888, under whatever standard bearer the Republican national +convention may select, they have just pride in the record and career +of John Sherman, as a member of the Republican party, and as a +statesman of fidelity, large experience and great ability. His +career as a statesman began with the birth of the Republican party; +he has grown and developed with the growth of that organization; +his genius and patriotism are stamped upon the records of the party +and the statutes and constitution of the country, and, believing +that his nomination for the office of President would be wise and +judicious, we respectfully present his name to the people of the +United States as a candidate, and announce our hearty and cordial +support of him for that office." + +The convention then proceeded to form a state ticket. + +During the summer vacation of 1887, I made a trip across the +continent from Montreal to Victoria, Vancouver Island, and from +the Sound to Tacoma, going over the Canadian Pacific railroad, and +returning by that line to Port Arthur, at the head of Lake Superior +then, by one of the iron steamers of the Canadian Pacific road, +through Lake Superior and Lake Huron to Owen Sound, and from there +by rail to Toronto and home. + +I had for many years desired to visit that country and to view for +myself its natural resources and wonders, and to inspect the +achievement of the Canadian Pacific Railroad Company. + +I was accompanied on this journey by James S. Robinson, formerly +secretary of state of Ohio, ex-Congressman Amos Townsend, for many +years Member from Cleveland, and Charles H. Grosvenor, Member of +Congress from Athens, Ohio. We met at Cleveland and spent the next +night at Toronto. Thence we proceeded to Montreal, and there +received many courtesies from gentlemen distinguished in private +and public life. We left Toronto on the night of the 1st of August, +in a special car attached to the great through train which then +made its journey to Vancouver in about six days. We halted at +Sudbury, the point on the Canadian Pacific from which the Sault +Ste. Marie line of railway diverges from the main track. We spent +twenty-four hours at Sudbury, visiting the copper and nickel mining +operations, then in their infancy. Proceeding, we passed the head +of Lake Superior, and thence to Winnipeg. At this place the officers +of the provincial government showed us many attentions, and I was +especially delighted by a visit I made to Archbishop Taché of the +Catholic church, a very aged man. He had been a missionary among +the Indians at the very earliest period of time when missionary +work was done in that section. He had been a devoted and faithful +man, and now, in the evening of his life, enjoyed the greatest +respect and received the highest honors from the people of his +neighborhood, regardless of race or religion. + +Proceeding from Winnipeg, we entered the great valley of the +Saskatchewan, traversed the mighty wheat fields of that prolific +province, and witnessed the indications of the grain producing +capacity in that portion of Canada, alone quite sufficient, if +pushed to its utmost, the furnish grain for the whole continent of +America. We spent one night for rest and observation at a point +near the mouth of the Bow River, and then proceeded to Calgary. +This is the westernmost point where there is arable and grazing +lands before beginning the ascent of the Rocky mountains. Here we +inspected a sheep ranch owned by a gentleman from England. It is +located at Cochrane, a few miles west of Calgary. It was managed +by a young gentleman of most pleasing manners and great intelligence, +who was surrounded at the time of our visit by numerous Scotch +herdsmen, each of whom had one or more collie dogs. The collie, +as everybody knows, is a Scotch production, and it has been imported +into the country largely for the service of the great sheep and +cattle ranches of the west. One shepherd was about to depart from +Canada to reoccupy his home in Scotland, and among his other effects +was a collie, passing under the name of Nellie. She was a beautiful +animal, and so attracted my attention that at my suggestion General +Grosvenor bought her, and undertook to receive her at the train as +we should pass east a week or ten days later. The train, on our +return, passed Calgary station at about two o'clock in the morning +in the midst of a pouring rain storm, but the shepherd was on hand +with the dog, and her pedigree carefully written out, and the +compliments of Mr. Cochrane, and his assurance that the pedigree +was truthful. Nellie was brought to Ohio, and her progeny is very +numerous in the section of the state where she lived and flourished. + +Leaving Calgary, we followed the valley of the Bow River. The +current of this river is very swift in the summer, fed as it is by +the melting of the snows of the Rocky mountains. We soon began to +realize that we were ascending amid the mighty peaks of the great +international chain. We spent one day at Banff, the National Park +of the Dominion. Here we found water, boiling hot, springing out +from the mountain side, and a magnificent hotel--apparently out of +all proportion to the present or prospective need--being erected, +with every indication of an effort, at least, to make the Canadian +National Park a popular place of resort. + +All about this region of country it is claimed there are deposits +of gold and silver, and at one point we saw the incipient development +of coal mining, coal being produced which it was claimed, and it +seemed to me with good reason, to be equal in valuable qualities +to the Pennsylvania anthracite. + +Passing from the National Park and skirting the foot of the Giant +mountains, we entered the mighty valley of the great Fraser River. +The scenery between Calgary and Kamloops is indescribably majestic. +We were furnished by the railroad company with a time-table in the +form of a pamphlet, and a description of the principal railway +stations and surrounding country written by Lady Smith, the wife +of Sir Donald Smith, of Montreal, one of the original projectors +of the Canadian Pacific railroad. This lady was an artist, a poet, +with high literary attainment, and her descriptions of the mountains, +of the glaciers, of the rivers and scenery were exceedingly well +done. We stopped at one of the company hotels, at the foot of one +of the mightiest mountains, whose peak ascends thousands of feet +into the air, and at whose base, within a few rods of the entrance +to the hotel, was the greatest of the mighty glaciers, almost equal +in beauty and grandeur, as seen by us, with the far-famed glacier +of the Rhone. + +The construction of this railroad through the mountains is a marvel +of engineering skill and well illustrates what the persistence and +industry of man can accomplish. More than seventy miles of this +line, as I remember it, are covered by snowsheds, constructed of +stanch timbers along the base of the mountain in such a manner that +the avalanches, which occasionally rush down from the mountain top +and from the side of the mountain, strike upon the sheds and so +fall harmless into the valley below, while the powerful locomotives +go rushing through the snowsheds, heedless of the dangers overhead. + +The Fraser River was full of camps of men engaged in the business +of catching, drying and canning the salmon of that stream. The +timber along this river is of great importance. The Canadian fir +and other indigenous trees line the banks and mountain sides in a +quantity sufficient to supply the demand of the people of that +great country for many years to come. But it was unpleasant to +witness the devastation that the fires had made by which great +sections of the forests had been killed. The Canadian government +has made a determined effort to suppress these fires in their +forests and upon their plains, and it is one of the duties of the +mounted police force, which we saw everywhere along the line of +the road, to enforce the regulations in regard to the use of fire, +but, naturally and necessarily, nearly all these efforts are abortive +and great destruction results. + +Vancouver, at the mouth of the Fraser, is the terminus of the +Canadian Pacific railway. At this point steamers are loaded for +the China and Japan trade and a passenger steamer departs daily, +and perhaps oftener, for Victoria, an important city at the point +of Vancouver Island. We had a delightful trip on this steamer, +running in and out among the almost numberless islands. It was an +interesting and yet most intricate passage. + +At Victoria we were entertained by gentlemen of public position +and were also shown many attentions by private citizens. We were +invited to attend a dinner on board of a great British war vessel, +then lying at Esquimault. A canvass of our party disclosed the +fact that our dress suits had been left at Vancouver, and being on +foreign soil and under the domination of her British majesty's +flag, we felt it was impossible to accept the invitation, and so, +with a manifestation of great reluctance on the part of my associates, +the invitation was declined. + +We went by steamer to Seattle, Washington Territory, where we +remained over night and were very kindly received and entertained +by the people. Among the persons who joined in the reception were +Watson C. Squire and his wife, then residents of the territory. +Mr. Squire, after the admission of Washington as a state, became +one of her Senators. + +We were joined on this part of our journey by Carter H. Harrison, +of Chicago, whose fourth term of office as mayor had just closed, +and who was escorting his son and a young friend on a journey around +the world. While waiting for the departure of the Canadian Pacific +steamer from Vancouver, he joined in this excursion through the +sound. He was a most entertaining conversationalist, and we enjoyed +his country greatly. + +There was much rivalry at that time between the growing cities of +Seattle and Tacoma. At a reception in Seattle, one of the party, +in responding to a call for a speech, spoke of having inquired of +a resident of Seattle as to the whereabouts of Mount Tacoma. He +said he was informed by the person to whom he applied that there +was no Mount Tacoma. On stating that he had so understood from +citizens of Washington Territory, he was informed that there was +not then and never had been a Mount Tacoma. The gentleman was +informed, however, that in the distance, enshrouded in the gloom +of fog and smoke, there was a magnificent mountain, grand in +proportion and beautiful in outline, and the mountain's name was +Rainier. Later on he said he had inquired of a citizen of Tacoma +as to the whereabouts, from that city, of Mount Rainier, and the +gentleman, with considerable scorn on his countenance, declared +that there was no such mountain, but in a certain direction at a +certain distance was Mount Tacoma. The gentleman closed his speech +by saying, whether it was Mount Tacoma or Mount Rainier, our party +was unanimously in favor of the admission of Washington Territory +into the Union. + +We visited some sawmills at Tacoma where lumber of monstrous +proportions and in great quantities was being produced by a system +of gang saws. This is a wonderful industry and as long as the +material holds out will be a leading one of that section. The deep +waters of Puget Sound will always offer to the industrious population +of Washington ample and cheap means of transportation to the outside +market, and I predict a great future for the state. + +We returned east more hastily and with fewer stops than in the +western journey. We spend a night at Port Arthur, and the next +day, embarking upon one of the great steamers of the Canadian +Pacific line, found among our fellow-passengers Goldwin Smith, the +distinguished Canadian writer and statesman. We had a most pleasant +trip, arriving at Owen Sound without special incident; thence to +Toronto, and by steamer to Niagara, where we remained until the +next day, when our party separated for their several homes. The +trip occupied exactly a month and was full of enjoyment from the +beginning to the end. + +After my return home I wrote a note to General Sherman, describing +my impressions of the country. In this I said: + +"My trip to the Pacific over the Canadian railroad was a great +success. We traveled 7,000 miles without fatigue, accident or +detention. We stopped at the chief points of interest, such as +Toronto, Montreal, Sudbury, Port Arthur, Winnipeg, Calgary, Banff, +Donald, Glacier House, Vancouver, Victoria, Seattle and Tacoma, +and yet made the round trip within the four weeks allowed. We did +not go to Alaska, because of the fogs and for want of time. The +trip was very instructive, giving me an inside view of many questions +that may be important in the future. The country did not impress +me as a desirable acquisition, though it would not be a bad one. +The people are hardy and industrious. If they had free commercial +intercourse with the United States, their farms, forests, and mines +would become more valuable, but at the expense of the manufactures. +If the population of Mexico and Canada were homogenous with ours, +the union of the three countries would make the whole the most +powerful nation in the world." + +I then entered into the canvass. I attended the state fair at +Columbus on the 2nd of September, first visiting the Wool Growers' +Association, and making a brief speech in respect to the change in +the duty on wool by the tariff of 1883. I reminded the members of +that association that they were largely responsible for the action +of Congress on the wool schedule, that while all the other interests +were largely represented before the committees of Congress, they +were only represented by two gentlemen, Columbus Delano and William +Lawrence, both from the State of Ohio, who did all they could to +prevent the reduction. Later in the day I attended a meeting of +the state grange, at which several speeches had been made. I +disclaimed the power to instruct the gentlemen before me, who knew +so much more about farming that I, but called their attention to +the active competition they would have in the future in the growth +of cereals in the great plains of the west. I described the wheat +fields I had seen far west of Winnipeg, ten degrees north of us in +Canada. I said the wheat was sown in the spring as soon as the +surface could be plowed, fed by the thawing frosts and harvested +in August, yielding 25 to 40 bushels to the acre, that our farms +had to compete in most of their crops with new and cheap lands in +fertile regions which but a few years before were occupied by +Indians and buffaloes. "We must diversify our crops," I said, "or +make machines to work for us more and more. New wants are created +by increased population in cities. This is one lesson of many +lessons we can learn from the oldest nations in Europe. With large +cities growing up around us the farmer becomes a gardener, a demand +is created for dairy products, for potatoes, and numerous articles +of food which yield a greater profit. In Germany, France and Italy +they are now producing more sugar from beets than is produced in +all the world from sugar cane. The people of the United States +now pay $130,000,000 for sugar which can easily be produced from +beets grown in any of the central states." I said much more to +the same purport. + +I visited all parts of the state fair, and tried to avoid talking +politics, but wherever I went on the ground I found groups engaged +in talking about the Toledo convention, and the prospects of +Republican or Democratic success. I had been away so long that I +supposed the embers left by the convention were extinguished, but +nothing, I think, can prevent the Ohio man from expressing his +opinion about parties and politics. I met William Lawrence, one +of the ablest men of the state as a lawyer, a judge and a Member +of Congress. An interview with him had recently been published in +respect to the resolution indorsing my candidacy. This was frequently +called to my attention, and though I had not then read it, my +confidence in him was so great I was willing to indorse anything +he had said. + +On the 7th of September I attended a soldiers' meeting at Bellville, +in Richland county, where it was said upwards of 4,000 people took +part. I made quite a long talk to them, but was far more interested +in the stories of men who had served in the war, many of whom gave +graphic accounts of scenes and incidents in which they had taken +part. I have attended many such meetings, but do not recall any +that was more interesting. The story of the private soldier is +often rich in experience. It tells of what he saw in battle, and +these stories of the soldiers, told to each other, form the web +and woof out of which history is written. It was useless to preach +to these men that Providence directly controls the history of +nations. A good Presbyterian would find in our history evidence +of the truth of his theory that all things are ordained beforehand. +Certain it is that the wonderful events in our national life might +be cited as an evidence of this theory. I do reverently recognize +in the history of our war, the hand of a superintending Providence +that has guided our great nation from the beginning to this hour. +The same power which guided our fathers' fathers through the +Revolutionary War, upheld the arms of the soldiers of the Union +Army in the Civil War, and I trust that the same good Providence +will guide our great nation in the years to come. + +I made my opening political speech in this campaign at Wilmington, +on the 15th of September. Clinton county is peopled almost exclusively +by a farming community, whose rich upland is drained by the waters +of the Scioto and Miami Rivers. My speech, not only on this +occasion, but during the canvass in other parts of the state, was +chiefly confined to a defense of the Republican party and its policy +while in power, which I contrasted with what I regarded as the +feebleness of Mr. Cleveland's administration. I touched upon state +matters with brevity, but complimented our brilliant and able +governor, Foraker. I referred to the attacks that had been made +upon me about my speech in Springfield, Illinois, and said that no +one had answered by arraignment, except by the exploded cry of "the +bloody shirt," or claimed that a single thing stated by me as fact +was not true. I referred to the "tenderfoot" who would not hurt +anyone's feelings, who would banish the word "rebel" from our +vocabulary, who would not denounce crimes against our fellow-citizens +when they occurred, who thought that, like Cromwell's Roundheads, +we must surrender our captured flags to the rebels who bore them, +and our Grand Army boys, bent and gray, must march under the new +flag, under the flag of Grover Cleveland, or not hold their camp +fires in St. Louis. In conclusion, I said: + +"But I will not proceed further. The immediate question is whether +you will renew and ratify the brilliant administration of Governor +Foraker, and support him with a Republican legislature. I feel +that it is hardly necessary to appeal to the good people of Clinton +county for an overwhelming vote in favor of a man so well known +and highly respected among you, and whose associates on the state +ticket are among the most worthy and deserving Republicans of Ohio. +I call your attention to the special importance of the election of +your candidates for senator and members of the house. It is of +vital importance to secure a Republican legislature to secure and +complete the good work of the last. Our success this fall by a +good majority will be a cheering preparation for the grand campaign +of the next year, when we shall have an opportunity again to test +the question of whether the Republican party, which conducted +several administrations in the most trying period of American +history with signal success, shall be restored to power to renew +the broad national policy by which it preserved the Union, abolished +slavery and advanced the republic, in strength, wealth, credit and +varied industries, to the foremost place among the nations of the +world." + +In the latter part of September, I made an address to the farmers +of Wayne county, at Lyons, New York. The county borders on Lake +Ontario. Its surface is undulating, its soil generally fertile, +and beneath are iron ore, limestone, gypsum, salt and sulphur +springs. Its chief products are dairy and farm produce and live +stock. I said that my experience about a farm was not such as +would justify me in advising about practical farming, that I was +like many lawyers, preachers, editors and Members of Congress, who +instinctively seek to get possession of a farm, not to show farmers +how to cultivate land, but to spend a good portion of their income +in a healthy recreation, that Horace Greeley and Henry Ward Beecher +were, when living, good specimens of this kind of farmer, that they +all soon learned by sad experience that-- + + "He that by the plow would thrive, + Himself must either hold or drive." + +I claimed to be one of the farmers whose potatoes and chickens cost +more than the market price. Still, those engaged in professional +pursuits, and especially Members of Congress, have to study the +statistics of agriculture because upon the increase and diversity +of its varied productions depend the wealth and progress of the +country for which we legislate. I will not undertake to repeat in +any detail what I said. I drew the distinction between the work +of a mechanic and the work of a farmer; the mechanic had but a +single employment and sometimes confined himself to the manufacture +of a single article, but the farmer must pursue the opposite course. +He must diversify his crops each year, and the nature of his labors +varies with the seasons. His success and profit depend upon the +diversity of his productions, and the full and constant occupation +of his time. I described what I had seen in the far-off region +near the new city of Tacoma on Puget Sound, where the chief employment +of the farmer is in raising hops, and also the mode of producing +wheat in the vast plains of Canada, which, now that the buffalo is +gone, are plowed in the spring, sown in wheat and left unguarded +and untended until ready for the great machines which cut and bind +the crop and thresh it ready for the market. I described the +production of the celery plant in the region of Kalamazoo, Michigan, +where a large portion of the soil is devoted to this vegetable. +As each region varied in climate, soil and market, the occupations +of farmers had to vary with the conditions that surrounded them. +The great cereals, such as wheat, corn, oats and barley, can be +produced in most parts of the United States. Our farmers ought +constantly to diversity their crops and add to the number of their +productions. Attention had been recently turned to the possibility +of producing beet sugar in the northern states, the great obstacle +being the cost of the factory and machinery which, to secure +profitable results, could not be erected for less than $200,000, +but I predicted that this industry would be established and sugar +sufficient for our wants would be produced in our own country. I +referred to the great advance made in the methods of farming, during +the past forty years, with the aid of new inventions of agricultural +implements and new modes of transportation, and the wonderful +progress that had been made in other fields of invention and +discovery, and in conclusion said: + +"And so in mental culture, in the knowledge of chemistry, in granges +and fairs, in books, magazines and pamphlets devoted to agriculture, +the farmer of to-day has the means of information which lifts his +occupation to the dignity of a science. The good order of society +now rests upon the intelligence and conservatism of the farmers of +the United States, for to them all classes must look for safety +against the dogmas and doctrines that threaten the social fabric, +and sacred rights of persons and property, and I believe the trust +will not be in vain." + +I spoke nearly every day during the month of October, in different +parts of the State of Ohio. I do not recall a town of importance +that I did not visit, nor a congressional district in which I did +not speak. Governor Foraker was even more active than I was. His +speeches were received with great applause, and his manners and +conduct made him popular. The only danger he encountered was in +the active movement of the Prohibition party. This party ran a +separate ticket, the votes of which, it was feared, would mainly +come from the Republican party. In a speech I made at Oberlin, on +the 4th of November, I made an appeal to our Prohibition friends +to support the Republican ticket. I said: + +"There are but two great parties in this country, one or the other +of which is to be put in power. You have a perfect right to vote +for the smaller Prohibition party, and thus throw away your vote, +but you know very well that either a Republican or a Democratic +legislature will be elected, and that there will not be a single +Prohibition candidate elected. Will it not be better to choose +between these two parties and give your assistance to the one that +has done the most for the success of your principles? We think +the Republican party is still entitled, as in the past, to your +hearty support. Among other of its enactments there is the 'Dow +law,' looked upon you with suspicion, yet it has done more for +temperance than your 'prohibition laws' at present could have done. +That law enables you to exclude the sale of liquor in more than +400 Ohio towns. It was passed by a Republican legislature. By it +more than 3,000 saloons have been driven out of existence. + +"Then you have the repeated declaration of the Republican party, +a party that never deceived the people with false promises, that +they will do anything else that is necessary, or all that is possible +by law, to check the evils that flow from intoxicating drinks. + +"Is there not a choice between that party and the Democratic party, +which has always been the slave of the liquor party, and whose +opposition to the enforcement of the Dow law cost the state +$2,000,000? The Democratic party, if put in power, will repeal +that law and will do nothing for prohibition that you will accept. +They say they want license, but they know it can never be brought +about without a change in the constitution. They want the liquor +traffic to go unrestrained. It does seem to me that with all the +intelligence of this community it is the duty of all its candid +men, who are watching the tendencies of these two parties in this +country, not to throw their votes away. + +"It is much better to do our work by degrees, working slowly in +the right direction, than to attempt to do it prematurely by +wholesale, and fail. More men have been broken up by attempting +too much than by 'going slow.' + +"Your powerful moral influence, if kept within the Republican party, +will do more good, a thousandfold, than you can do losing your vote +by casting it for a ticket that cannot be elected. Next year will +present one of the most interesting spectacles in our history. +The Republican party will gather its hosts of progressive and +patriotic citizens into one grand party at its national convention, +and I trust that when that good time comes our Prohibition friends +and neighbors who stand aloof from us will come back and join the +old fold and rally around the old flag of our country, the stars +and stripes, and help us to march on to a grand and glorious +victory." + +I closed my part of the canvass on the 5th of November, at Music +Hall, Cleveland, one of the finest meetings that I ever attended. +General E. S. Meyer and D. K. Watson shared in the speaking. + +The result of the election, on the following Tuesday, gave Governor +Foraker a plurality of 23,329 over Thomas E. Powell, and the +legislature was Republican in both branches. + +During the canvass I felt specially anxious for the election of +Governor Foraker and a Republican legislature. Some doubts had +been expressed by members of the Toledo convention whether the +resolution favoring my nomination for President would not endanger +the election of Governor Foraker, and his defeat would have been +attributed to that resolution. I did not believe it could have +that effect, yet the fear of it led to my unusual activity in the +canvass. I was very much gratified with the result. Before and +after the election the general discussion was continued in the +newspapers for and against my nomination, upon the presumption that +the contest would lie between Mr. Blaine and myself. + +The election in New York was adverse to the Republican party, and +this and his feeble health no doubt largely influenced Mr. Blaine +in declining to be a candidate for the nomination. Upon the surface +it appeared that I would probably be the nominee, but I took no +step whatever to promote the nomination and resumed my duties in +the Senate with a firm resolve not to seek the nomination, but to +rest upon the resolution adopted at Toledo. When letters came to +me, as many did, favoring my nomination, I referred them to Green +B. Raum, at that time a resident in Washington, to make such answer +as he thought expedient. + + +CHAPTER LIV. +CLEVELAND'S EXTRAORDINARY MESSAGE TO CONGRESS. +First Session of the 50th Congress--The President's "Cry of Alarm" +--Troubled by the Excess of Revenues over Expenditures--My Answer +to His Doctrines--His Refusal to Apply the Surplus to the Reduction +of the Public Debt--The Object in Doing So--My Views Concerning +Protection and the Tariff--In Favor of a Tariff Commission--"Mills +Bill" the Outcome of the President's Message--Failure of the Bill +During the Second Session--My Debates with Senator Beck on the +Coinage Act of 1873, etc.--Omission of the Old Silver Dollar--Death +of Chief Justice Waite--Immigration of Chinese Laborers--Controversy +with Senator Vest--Speech on the Fisheries Question--Difficulties +of Annexation with Canada. + +The 50th Congress convened on the 5th of December, 1887, and was +promptly organized, the Senate being Republican, and the House +Democratic. During this long session of about eleven months, nearly +every question of political or financial importance in American +politics was under discussion, and I was compelled, by my position +on the committees on foreign relations and finance, to take an +active part in the debates. + +On the 6th the President sent to Congress his annual message, in +which he departed from the established usage of his predecessors, +who had presented in order the subjects commented upon, commencing +with a summary of our relations with foreign nations, and extending +to the business of all the varied departments of the government. +Instead of this he abruptly opened with a cry of alarm, as follows: + +"To the Congress of the United States. + +"You are confronted, at the threshold of your legislative duties, +with a condition of the national finances which imperatively demands +immediate and careful consideration." + +This threatening announcement of a great national danger startled +the general public, who had settled down into the conviction that +all was going on very well with a Democratic administration. The +President said that the amount of money annually exacted largely +exceeded the expenses of the government. This did not seem so +great a calamity. It was rather an evidence of good times, especially +as he could apply the surplus to the reduction of the national +debt. Then we were told that: + +"On the 30th day of June, 1885, the excess of revenues over public +expenditures, after complying with the annual requirement of the +sinking fund act, was $17,859,735.84; during the year ended June +30, 1886, such excess amounted to $49,405,545.20; and during the +year ended June 30, 1887, it reached the sum of $55,567,849.54." + +In other words, we had an excess of revenue over expenditures for +three years of about $122,000,000. The sinking fund during that +three years, as he informed us, amounted in the aggregate to +$138,058,320; that is, we had stipulated by law to pay of the public +debt that sum during three years, and had been able to pay all we +agreed to pay, and had $122,000,000 more. He did not state that +during and subsequent to the panic of 1873 the United States did +not pay the sinking fund, and this deficiency was made good during +the prosperous years that followed 1879. Upon the facts stated by +him he based his extraordinary message. The only recommendation +made by him was a reduction of taxation. No reference to the vast +interests intrusted to departments other than the treasury was made +by him except in a brief paragraph. He promised that as the law +makes no provision for any report from the department of state, a +brief history of the transactions of that important department +might furnish the occasion for future consideration. + +I have a sincere respect for President Cleveland, but I thought +the message was so grave a departure from the customary annual +message of the President to Congress that it ought to be answered +seriatim. I did so in a carefully prepared speech. The answer +made can be condensed in a few propositions: An increase of revenue +(the law remaining unchanged) is an evidence of unusual trade and +prosperity. The surplus revenue, whatever it might be, could and +ought to be applied to the reduction of the public debt. The law +under which the debt was created provided for this, by requiring +a certain percentage of the debt to be paid annually, and appropriating +the surplus revenue for that purpose. Under this policy it was +estimated that the debt would be paid off prior to 1907. + +But experience soon demonstrated that, whatever might be the law +in force, the revenues of the government would vary from year to +year, depending, not upon rates of taxation, but upon the financial +condition of the country. After the panic of 1873, the revenues +were so reduced that the sinking fund was practically suspended by +the fact that there was no surplus money in the treasury to meet +its requirements. At periods of prosperity the revenues were in +excess of the current expenses and the sinking fund, and in such +conditions the entire surplus revenue, was applied to the reduction +of the public debt and thus made good the deficiency in the sinking +fund in times of financial stringency. This was a wise public +policy, fully understood and acted upon by every Secretary of the +Treasury since the close of the war and prior to Mr. Manning. + +Another rule of action, founded upon the clearest public policy, +had been observed prior to the incumbency of Mr. Cleveland, and +that was not to hold in the treasury any form of money in excess +of a reasonable balance, in addition to the fund held to secure +the redemption of United States notes. All sums in excess of these +were promptly applied to the payment of the public debt, and, if +none of it was redeemable, securities of the United States were +purchased in the open market. It was the desire of Congress and +every Republican Secretary of the Treasury, in order to comply with +the sinking fund law, to apply the surplus to the gradual reduction +of the debt. While I was secretary I heartily co-operated with +the committees of Congress in reducing appropriations, and in this +way was enabled to maintain the reserve, and to reduce the interest- +bearing public debt. + +The policy of Mr. Cleveland and Secretary Manning was to hoard in +the treasury as much of the currency of the country as possible, +amounting sometimes to more than $200,000,000, and this created a +stringency which affected injuriously the business of the country. +It was the policy of all the early Presidents to apply any surplus +revenue either to the reduction of the public debt or to public +objects. + +Mr. Jefferson, in his message of 1806, says: "To what object shall +the surplus be appropriated? Shall we suppress the impost, and +thus give that advantage to foreign over domestic manufacturers?" +He believed that the patriotism of the people would "prefer its +continuance and application for the purpose of the public education, +roads, rivers and canals." This was in exact opposition to the +policy proposed by Mr. Cleveland, who refused to apply the surplus +revenue to the reduction of the debt, and in his extraordinary +message demanded a reduction of duties on foreign goods. A larger +surplus revenue had frequently, from time to time, been wisely +dealt with by Republican administrations. It had either been +applied by the executive authorities to the payment of the public +debt, or its accumulation had been prevented by Congress, from time +to time, by the reduction or repeal of taxes. In the administration +of each of Mr. Cleveland's predecessors since the close of the war, +this simple remedy had been applied without neglecting other matters, +or raising a cry of alarm. It was apparent that the object of the +President was to force the reduction of duties on imported goods, +which came into competition with domestic products, and that the +accumulation of money in the treasury was resorted to as a means +to compel such a reduction. + +On the 19th of July, 1886, I had called the attention of the Senate +to the difficulty and danger of hoarding in the treasury surplus +revenue, and the readiness of the Senate to provide for the reduction +of taxes and the application of the surplus. The revenues could +have been reduced without endangering domestic industries. At the +date of his extraordinary message both Houses of Congress were +quite ready to reduce taxes. Full authority had been given to the +Secretary of the Treasury to apply surplus revenue to the purchase +of United States bonds. But the President, set in his opinion, +was not satisfied with such measures, but demanded the reduction +of duties which protected American industries. + +The greater part of my speech in reply to the President's message +was a discussion of the different forms of taxation imposed by the +United States and especially the duties imposed on imported goods. +I never was an extreme protectionist. I believed in the imposition +of such a duty on foreign goods which could be produced in the +United States as would fairly measure the difference in the cost +of labor and manufacture in this and foreign countries. This was +a question not to be decided by interested capitalists, but by the +careful estimate of business men. The intense selfishness exhibited +by many of those who demanded protection, and the error of those +who opposed all protection, were alike to be disregarded. + +I believe that no judicious tariff can be framed by Congress alone, +without the help of a commission of business men not personally +interested in the subject-matter, and they should be aided by +experienced officers in the revenue service. I have participated +in a greater or less degree in the framing of every tariff law for +forty years. I have spoken many times on the subject in the Senate +and on the rostrum. My reply to the President's message is the +best exposition I have made as to the principles and details of a +protective tariff. If I had my way I would convene such a tariff +commission as I have discussed, give it ample time to hear and gain +all information that could aid it, and require it to report the +rates of duty proposed in separate schedules so that the rate of +each schedule or paragraph might be raised or lowered from time to +time to meet the wants of the treasury. If Congress would allow +such a bill to become a law we could dismiss the tariff free from +party politics and lay the foundation for a durable system of +national taxation, upon which domestic industries may be founded +without the hazard which they now encounter every year or two by +"tinkering with the tariff." + +The real controversy raised by the President's message was not +whether taxes should be reduced, but what taxes should be reduced +or abolished. I stated the position of the two parties in a debate +with Mr. McKenna, as follows; + +"There is a broad line of division between the two parties as they +exist now and as they will exist in the future. The President +says, 'retain all internal taxes and reduce the duties on imported +merchandise that comes in competition with home industries.' We +say we will not strike down any prospering industry in this country; +that where manufactures have sprung up in our midst by aid of a +duty, this protection, as you call it, we will not reduce; we will +not derange contracts, industries, or plans, or lower the prices +of labor, or compel laborers or manufacturers to meet any sudden +change or emergency. We say that we are willing to join with you +in reducing the taxes. We will select those taxes that bear most +heavily upon the people, especially internal taxes, and repeal +those. We will maintain the policy of protection by tariff duties +just as long as it is necessary to give our people the benefit of +a home market, and diversified productions a fair chance in the +trade and commerce of our country, but we will not invite into our +country foreign importations to compete with and break down our +home industries." + +The bill entitled "A bill to reduce taxation and simplify the laws +in relation to the collection of the revenue," known as the Mills +bill, was the outcome of the President's message. It was reported +to the House of Representatives by Roger Q. Mills, of Texas, and +thus obtained its name. Mr. Mills, on the 17th of April, called +it up for consideration, and it was debated and amended, and passed +the House on the 21st of July, more than seven months after the +President's cry of alarm, by the close vote of 162 yeas to 149 +nays. Samuel J. Randall, then absent and sick, desired his colleague +to pair him against the bill, as, if present, he would record his +vote in opposition to the bill. It came to the Senate and was +referred to the committee on finance. On the 8th of October Mr. +Allison, from that committee, reported back the Mills bill with a +substitute for the entire bill. This substitute was a careful and +elaborate protective tariff bill, containing some provisions I did +not approve, but, in its general provisions, was, in my opinion, +a far better bill than the Mills bill. The debate on these rival +bills continued until the close of the session on the 19th of +October, when the Senate, by a resolution, authorized and directed +the committee on finance to continue during the recess of Congress +the investigation of such revenue measures, including the Senate +and House bills, as had been referred to the Senate. + +The history of the bills during the second session of this Congress +is easily told. They were debated in the Senate nearly every day +until the 22nd of January, 1889, when the amendment of the Senate +was adopted as a substitute for the entire Mills bill, by the close +vote of 32 yeas to 30 nays. It was debated in the House of +Representatives and referred to its committee of ways and means. +It was reported by the committee to the House of Representatives, +with a resolution declaring that the action of the Senate in +substituting an entire bill for the House bill was in violation of +the constitution. No action was taken on this resolution, and then +all tariff legislation was defeated for that Congress. + +On the 6th of March, 1888, Senator Beck made a rambling speech +commencing with a fierce denunciation of a bill then pending to +grant pensions to certain disabled soldiers of the Union army. He +then veered off on the tariff and the great trusts created by it. +I ventured, in a mild-mannered way, to suggest to him a doubt +whether trusts were caused by the tariff, whether they did not +exist as to domestic as well as to foreign productions. I named +to him the whisky trust, the cotton-seed trust and other trusts of +that kind, and wanted to know how these grew out of the tariff. +Thereupon he changed his ground and took up the silver question +and commenced assailing me for the coinage act of 1873, saying I +was responsible for it. He said it was secretly passed, surreptitiously +done, that I did it, that I knew it. + +I promptly replied to that charge by showing from the records that +the act referred to, and especially the part of it relating to the +silver dollar, was recommended by Mr. Boutwell, the Secretary of +the Treasury, and all the officers connected with coinage and the +mints, that it was debated at great length for three successive +sessions in both Houses, that it was printed thirteen times, and +that the clause omitting the old silver dollar was especially +considered and the policy of it fully debated, and a substitute +for the old dollar was provided for by each House. I can say with +confidence that every Member of the Senate but Beck felt that he +had been worsted in the debate, and that the charge aimed at me, +but which equally applied to Morrill and Bayard, and especially to +all the Senators from the silver states who earnestly and actively +supported the bill, was thoroughly refuted. + +Senator Beck, chafed by his defeat, on the 13th of March made in +the Senate a three hours' speech in support of his position. +Instead of going to the public records and showing by them whether +or not the law was put through the Senate in a secret way, he quoted +what several Senators and Members said they did not know, what +Grant did not know, a mode of argument that if of effect would +invalidate the great body of the legislation of Congress. + +I replied in a speech occupying less than half an hour, producing +the original bill as it came from the treasury department with the +dollar omitted from the silver coins, with the report of the +Secretary of the Treasury calling attention to its omission, and +the opinion of Knox, LInderman, Patterson, Elliott, all of whom +were prominent officers of the treasury department in charge of +currency and coinage, giving fully the reasons why the old silver +dollar was omitted. I also quoted from the records of each House +of Congress, showing that special attention was called to the +omission of the old silver dollar by Mr. Hooper, having charge of +the bill. The House of Representatives, in compliance with the +advice of Comptroller Knox, did authorize in its bill, which it +passed, a subsidiary dollar containing 384 grains of standard +silver, the same weight as two half dollars, but these dollars +were, like the subsidiary fractional coins, a legal tender for only +five dollars. When this bill came to the Senate it was thoroughly +debated. The legislature of California petitioned Congress for a +silver dollar weighing more than the Mexican dollar instead of the +subsidiary dollar provided for by the House. In compliance with +this petition, the Senate so amended the bill as to authorize the +owner of silver bullion to deposit the same at any mint, to be +formed into bars or into dollars of the weight of 420 grains, +designated as "trade dollars." These dollars were intended solely +for the foreign trade, and were worth in the market only the value +of 420 grains of standard silver. It was the dollar desired by +the silver producing states, and but for the rapid decline in the +price of silver, which made this dollar worth less than its face +in gold, the mint would probably be coining them to-day; but before +the mint was closed to their coinage more than 35,000,000 pieces +had been made. No unprejudiced persons could claim that the charges +of Mr. Beck were not completely answered. + +On the 23rd of March Chief Justice Waite, of the Supreme Court of +the United States, died at his residence in Washington. Upon the +27th, upon my motion, the Senate adopted a resolution that a +committee of five Senators be appointed by the chair, whose duty +it should be to accompany the remains of the chief justice to +Toledo, in the State of Ohio, and attend the funeral there. The +committee appointed were Messrs. Sherman, Allison, Evarts, George +and Gray. They attended the funeral as directed. Chief Justice +Waite was born in Connecticut, but lived all his manhood life in +Toledo, Ohio, until appointed by President Grant as chief justice. +He was an able lawyer and a patient, conscientious and learned +judge. + +On the 1st of March I was directed by the committee on foreign +relations to report the following resolution: + +"_Resolved by the Senate of the United States_, That, in view of +the difficulties and embarrassments that have attended the regulation +of the immigration of Chinese laborers to the United States, under +the limitations of our treaties with China, the President of the +United States be requested to negotiate a treaty with the Emperor +of China, containing a provision that no Chinese laborer should +enter the United States." + +After a brief debate, participated in by Senators Morgan, Stewart, +Mitchell and others, I made a few remarks, commencing as follows: + +"Whatever differences there may have been in the Senate or in the +country, with regard to the restriction of Chinese immigration, +the time has come when I believe the general sentiment of the people +is, that the law on the subject should be fairly enforced; that +the Chinese laborer should be excluded from enjoying the benefits +of our country, because he will not adapt himself to the civilization +of our country. That feeling is most strongly expressed by Senators +and Representatives from the Pacific coast, among whom the 100,000 +or more Chinese in the country live, and they have expressed that +opinion to the committee on foreign relations so decidedly and +unanimously, and supported by such potent reasons, that I believe +every member of that committee is of the opinion that the object +of the law to exclude the immigration of Chinese laborers should +be effectively carried out." + +The resolution was adopted. + +During this Congress the question of excluding Chinese immigration +by treaty and by law was pending and copiously debated. There +seemed to be a general concurrence that such immigration was not +desirable, and that Chinese coolies should be absolutely excluded. +A treaty was negotiated providing for such exclusion, but, as there +was a long dely by the Chinese government in ratifying it, and the +coolies still continued to come, bills were introduced in Congress +prohibiting, under severe penalties, the immigration of all Chinese +laborers. Before the bill became a law the treaty was ratified. +Now, both by treaty and by law, such immigrants are excluded, but +in spite of law and treaty they still come in lessening numbers, +and it does not appear how they can be entirely excluded. I have +been in favor of the exclusion of Chinese laborers when practically +they are slaves, but have sought to moderate the legislation +proposed, so as not to disturb our friendly relations with China, +or to exclude educated Chinamen engaged in commercial pursuits. + +On the 18th of April I made a speech on a bill for the admission +of Dakota, as a state, into the Union. That territory had more +than the usual population of a new state, but its admission had +been postponed, year after year, by the action of the Democratic +party. This speech led to a long debate between Mr. Vest and myself +on the election in Louisiana in 1876. It is not an unusual occurrence +to change the subject of discussion in the Senate where debate is +unlimited. I made a long review of the events in Louisiana, mainly +in reply to a question put by Mr. Vest as follows: + +"I have never understood, and the people of this country have never +been able to understand, why Packard was not elected governor with +a larger number of votes than Hayes received for President. But +Packard was thrown out and sent as consul to Liverpool, and Hayes +was sworn in as President of the United States." + +To this I replied that the returning board was invested with the +power to pass upon the election of electors and they did perform +that duty, but the question of the election of a governor and a +legislature of Louisiana could only be passed upon by the legislature +itself, each house being the judge of its own elections, and the +two houses, when organized, had the sole and exclusive power to +pass upon the election of a governor. This condition of affairs +led to a controversy which endangered the public peace and involved +the use of United States troops to prevent civil war. President +Hayes thereupon had selected five gentlemen, Charles B. Lawrence, +Joseph R. Hawley, John M. Harlan, John C. Brown and Wayne MacVeagh, +each of whom was a man of marked distinction in the community in +which he lived. They were sent to Louisiana to inquire and report +upon the existing condition of affairs bordering on a state of +civil war between the opposing factions. They were instructed to +promote, as far as possible, the organization of a legislature, so +that it might pass upon the question of who was governor of the +state. The result of their inquiry led to the organization of the +legislature, and when so organized it recognized Nichols as Governor +of Louisiana, as it clearly had the right to do. The returning +board had the unquestioned right to pass upon the election of +electors for President, but it was equally clear that the legislature +was invested with the sole power of passing upon the election of +the governor. The returning board certified to the election of +the Hayes electors, and the legislature determined that Nichols +was elected governor. Although these decisions were inconsistent +with each other yet each was legal and binding. I took occasion +in this speech to defend the action of the returning board, and +especially the two leading members, J. Madison Wells and Thomas A. +Anderson, both of whom were men of high character and standing in +that state. + +In the course of this debate Vest and Butler charged me with +inconsistency in my speeches at Nashville and Springfield. This +allegation had been frequently made in the newspapers of the time. +In reply I said: + +"I am much obliged to my friend from Missouri for his kindness in +reading extracts from my speeches. They sound much better to me +read by him than when spoken by myself. The speeches speak for +themselves, particularly the one at Nashville. Every word I uttered +on that night I utter now. If I could repeat it over, I would add +emphasis to give force and effect to it, and so I feel about the +south. I have not the slightest feeling of hostility against the +south, and no desire in regard to it, except to preserve and protect +the rights of all the people of the south. + +"Now, in regard to my speech at Springfield, every word of that is +true. Why does not the Senator dispute some fact stated in that +speech? That was a review made to a legislature--indeed, both +speeches were made to legislative assemblies, dignified and honorable +men. I was speaking in sight of the monument of Lincoln; I was +recalling the incidents of Lincoln's life, the period of the war, +and referred, of course, to the Democratic party north and south. +I could not truthfully draw a more flattering picture. The one +was a speech as to the future to men who, I believed, were hopefully +looking forward to the disappearance of the feelings of the war. +The other was a recapitulation and review of the past. Every word +of it was true. If the Senator can point out the inconsistency in +these speeches, he will oblige me. There is not a single word in +one inconsistent with the other. I did denounce the course of the +Democratic party north and south, during and since the war, especially +in regard to the reconstruction measures. I did, at Nashville, +speak hopefully, and I feel hopefully, of the future, but it is +only upon the basis of the recognized rights of every American +citizen." + +On the 16th of July I made a speech in favor of the passage of a +bill for the erection of a monument to General George Rogers Clark, +of the American Revolution. His march through the wilderness and +attack upon the British posts in the northwestern territory was +one of the most brilliant events in the Revolutionary War. The +bill passed the Senate and was reported to the House, but was not +acted upon. It is one of the obligations of honor and duty which, +I trust, will be discharged by the United States before many years. + +On the 24th of August a message from the President, in regard to +the fishing rights of the United States, was read in the Senate. +I moved that the message be referred to the committee on foreign +relations. Before this motion was put an extended debate took +place mainly between Senators Edmunds and Morgan, though several +other Senators took part. I made a speech expressing my opinion +of the President's position on the fishery question, and then took +occasion to refer to the surplus in the treasury in the following +words: + +"It seems to me that the position taken by the President is a good +deal like that held by him as to the payment of the public debt. +My former old and honored colleague [Mr. Thurman] is going around +through the country talking about surplus money in the treasury, +there accumulated all because we Republicans will not let it out. +Of all the financial management that I have read or know of, the +worst is that by the present administration. Here there was an +accumulating surplus in the treasury, day by day and year by year, +since the first day Mr. Cleveland entered the presidential chair. +What did he do with that surplus revenue? He did not make proclamation +of it for two or three years, but let it accumulate and accumulate +until he did not know what to do with it. Finally the attention +of the administration was called to the fact that they ought to +buy bonds with it. Well, Mr. Cleveland, with his sharp construction, +thought he had not the power to buy bonds; he thought he could not +do it legally. The law confers the power upon the Secretary of +the Treasury. + +"The President had no more power over it than the Senator from +Connecticut before me [Mr. Platt] has. The law confers it upon +the secretary; it was his duty to buy bonds. What untold sums have +been lost by his failure to comply with that law. Until recently, +during nearly all the administration of Mr. Cleveland, the four +per cent. bonds have been sold in the market about 123. I have +here the American almanac giving the value of the four per cent. +bonds during his administration, and they have usually sold at 123. +If the United States had quietly watched its opportunities in the +way the present secretary's predecessors had done, he could have +gone into the market and absorbed those bonds, to the amount of +half a million or a million at a time, and bought them at the market +price, 123, and then how much money would have been saved to the +government of the United States. + +"My former colleague says they have over $100,000,000 of surplus. +If they had applied that one hundred million in the purchase of +bonds they would have saved four per cent. per annum for three +years--that is, twelve per cent. And besides, they would have +saved six or seven per cent. lost by the advance of bonds. At any +time during the administration of Mr. Cleveland, if his Secretary +of the Treasury had exercised the power conferred on him by the +law, he might have saved the government of the United States from +twelve to sixteen per cent. on the whole hundred million of dollars, +if he had invested it in bonds of the United States. But he would +not do it because he had not the power. So the President sent to +Congress and asked for power, just as he has done in this case, +when he had ample power, and both Houses declared unanimously that +he had the power, and then, after the bonds had gone up to 127 or +128, when he had lost three years' interest on a large portion of +this accumulation, he commenced to buy bonds and complains that +they are too high, and that he calls wise financial management. + +"So now here is a law, on the statute book for over a year, to +enforce a demand on the Canadian authorities that our fishermen, +who are there carrying on their hazardous enterprise, should have +the right to enter the port of Halifax and ship their goods under +the plain provisions of the treaty or the law, and, if that right +was denied, then here was the law expressly prepared for the +particular case, to authorize the President not to do any violent +act of retaliation, not to involve us in any dangerous or delusive +measure which would excite the public mind and probably create +animosities between these two great countries. But suppose he had +simply said: 'Well, if you deny to the Yankee fishermen the right +to transship their fish, we deny you the right to bring fresh fish +into Maine, Boston, and New York, and scatter them all over, cured +by ice,' for that is the effect of it--ice takes the place of salt." + +My allusion to the finances as usual excited the ire of Mr. Beck, +who said: + +"The Senator from Ohio gets away from the treaty and talks about +this administration not buying bonds and how much we could have +saved because they have raised the price; but I want to say that +he himself was the man, both as Secretary of the Treasury and as +chairman of the committee on finance, who arranged our debts in +such a way that we could not pay them." + +In my reply I again called attention to the fact that the House, +of which Mr. Beck was a Member at the time of the passage of the +four per cent. bond bill, and not the Senate, was responsible for +the long period of the bonds. I said: + +"The Senator from Kentucky says I am responsible for the fact that +there is the prolonged period of thirty years to the four per cent. +bonds. He knows, because he was here the other day when I showed +from the public record, that the Senate of the United States proposed +to pass a bill to issue bonds running only twenty years, with the +right of redemption after ten years; and if the law had been passed +in that form in which it was sent from the Senate none of this +trouble would have existed; but it was changed by the House of +Representatives, of which the Senator from Kentucky was then a +Member. I believe he voted for the House proposition against the +Senate proposition, by which the time was extended to thirty years, +and they were not redeemable during that time. Yet I am charged +with the responsibility of lengthening these bonds. + +"Whatever my sins, I can claim to have always favored the right to +redeem the bonds of the United States as the 5-20's and the 10-40's +were issued to be redeemed; and if I had had my way we would have +had the same kind of bonds issued instead of the thirty-year bonds." + +The relation of Canada with the United States, especially in +connection with the fisheries, became at this period dangerously +strained. This led me, on the 18th of September, to offer in the +Senate the following resolution: + +"_Resolved_, That the committee on foreign relations be directed +to inquire into, and report at the next session of Congress, the +state of the relations of the United States with Great Britain and +the Dominion of Canada, with such measures as are expedient to +promote friendly commercial and political intercourse between these +countries and the United States, and for that purpose have leave +to sit during the recess of Congress." + +In support of this resolution I said in opening: + +"The recent message of the President recommending a line of +retaliation against the Dominion of Canada involves the consideration +of our relations with that country in a far more important and +comprehensive way than Congress has ever before been called upon +to give. The recent treaty rejected by the Senate related to a +single subject, affecting alone our treaty rights on her northeastern +coast. The act of retaliation of 1887 was confined to the same +subject-matter. This message, however, treats of matters extending +across the continent, affecting commercial relations with every +state and territory on our northern boundary. Under these +circumstances I feel it is my duty to present my views of all these +cognate subjects, and in doing so I feel bound to discard, as far +as possible, all political controversy, for in dealing with foreign +relations, and especially those with our nearest neighbor, we should +think only of our country and not of our party." + +The real difficulty of dealing with Canada is its dependence on +Great Britain. Our negotiations must be with the English government, +while the matters complained of are purely Canadian, and the consent +of Canada is necessary to the ratification of any treaty. The +President complained that Canadian authorities and officers denied +to our fishermen the common privileges freely granted to friendly +nations to enter their ports and harbors, to purchase supplies and +transship commodities. He said that they subjected our citizens, +engaged in fishing enterprises in waters adjacent to their northeastern +shore, to numerous vexatious interferences and annoyances, had +seized and sold their vessels upon slight pretexts, and had otherwise +treated them in a rude, harsh, and oppressive manner. He further +said: + +"This conduct has been justified by Great Britain and Canada, by +the claim that the treaty of 1818 permitted it, and upon the ground +that it was necessary to the proper protection of Canadian interests. +We deny that treaty agreements justify these acts, and we further +maintain that, aside from any treaty restraints, of disputed +interpretation, the relative positions of the United States and +Canada as near neighbors, the growth of our joint commerce, the +development and prosperity of both countries, which amicable +relations surely guaranty, and, above all, the liberality always +extended by the United States to the people of Canada, furnished +motives for kindness and consideration higher and better than treaty +covenants." + +I agreed with the President in his arraignment of the Canadian +authorities for denying to our fishing vessels the benefit of the +enlightened measures adopted in later years by commercial nations, +especially by the United States and Great Britain. We admitted +fish free of duty into our country, while Canada refused to our +fishermen the right to purchase bait and other supplies in Canadian +ports, thus preventing our fishermen from competing with the +Canadians on the open sea. The President undertook, by treaty, to +correct this injustice, but the Senate thought that the provisions +of the treaty were not adequate for that purpose, and declined to +ratify it. He thereupon recommended that Congress provide certain +measures of retaliation, which, in the opinion of the Senate, would +have inflicted greater injury to the United States than to Canada. +This honest difference of opinion, not based upon party lines, +opened up the consideration of all our commercial relations with +Canada. The speech made by me dealt with the policy of the United +States with Canada in the past and for the future, and led me to +the expression of my opinion that Canada should be, and would be, +represented in the parliament of Great Britain or the Congress of +the United States, with the expression of my hope of its being +annexed to our country. I said: + +"And now I submit if the time has not come when the people of the +United States and Canada should take a broader view of their +relations to each other than has heretofore seemed practicable. +Our whole history, since the conquest of Canada by Great Britain +in 1763, has been a continuous warning that we cannot be at peace +with each other except by a political as well as commercial union. +The fate of Canada should have followed the fortunes of the colonies +in the American Revolution. It would have been better for all, +for the mother country as well, if all this continent north of +Mexico had participated in the formation, and shared in common the +blessings and prosperity of the American Union. + +"So, evidently, our fathers thought, for among the earliest military +movements by the Continental Congress was the expedition for the +occupation of Canada, and the capture of the British forces in +Montreal and Quebec. The story of the failure of the expedition, +the heroism of Arnold and Burr, the death of Montgomery, and the +fearful suffering borne by the Continental forces in the march and +retreat, is familiar to every student of American history. The +native population of Canada were then friendly to our cause, and +hundreds of them, as refugees, followed our retiring forces and +shared in the subsequent dangers and triumphs of the war. It was +the earnest desire of Franklin, Adams, and Jay, at the treaty of +peace, to secure the consent of Great Britain to allow Canada to +form a part of the United States, and at one time it appeared +possible, but for the influence of France and Spain, then the +acknowledged sovereigns of large parts of the territory now included +within the United States. The present status of Canada grew out +of the activities and acquisitions of European powers after the +discovery of this continent. Spain, France, and England especially +desired to acquire political jurisdiction over this newly discovered +country. + +"Without going into the details so familiar to the Senate, it is +sufficient to say that Spain held Florida, France held all west of +the Mississippi, Mexico held Texas west to the Pacific, and England +held Canada. The United States held, subject to the Indian title, +only the region between the Mississippi and the Atlantic. The +statesmen of this government early discerned the fact that it was +impossible that Spain, France, and Mexico should hold the territory +then held by them without serious detriment to the interests and +prosperity of the United States, and without the danger that was +always present of conflicts with the European powers maintaining +governments in contiguous territory. It was a wise policy and a +necessity to acquire these vast regions and add them to this country. +They were acquired and are now held. + +"Precisely the same considerations apply to Canada, with greater +force. The commercial conditions have vastly changed within twenty- +four years. Railroads have been built across the continent in our +own country and in Canada. The seaboard is of such a character, +and its geographical situation is such on both oceans, that perfect +freedom as to transportation is absolutely essential, not only to +the prosperity of the two countries, but to the entire commerce of +the world; and as far as the interests of the two people are +concerned, they are divided by a mere imaginary line. They live +next door neighbors to each other, and there should be a perfect +freedom of intercourse between them. + +"A denial of that intercourse, or the withholding of it from them, +rests simply and wholly upon the accident that a European power, +one hundred years ago, was able to hold that territory against us; +but her interest has practically passed away and Canada has become +an independent government to all intents and purposes, as much so +as Texas was after she separated herself from Mexico. So that all +the considerations that entered into the acquisition of Florida, +Louisiana, and the Pacific coast and Texas, apply to Canada, greatly +strengthened by the changed condition of commercial relations and +matters of transportation. These intensify not only the propriety, +but the absolute necessity, of both a commercial and a political +union between Canada and the United States." + +This was my opinion then, but further reflection convinces me that +the annexation of Canada to the United States presents serious +difficulties, and that the best policy for the other English-speaking +countries is that Canada should constitute an independent republic, +founded upon the model of the United States, with one central +government, and provinces converted into states with limited powers +for local governments. The United States already embraces so vast +a country, divided into forty-four states and four territories, +exclusive of Alaska and the Indian Territory, that any addition to +the number of states would tend to weaken the system, and the +conversion of the provinces of Canada into states of our Union +would introduce new elements of discord, while with Canada as an +independent and friendly republic we could, by treaties or concurrent +legislation, secure to each the benefit of free trade and intercourse +with the other, and without the danger of weakening the United +States. Great Britain, the common mother of both republics, could +take pride in her progeny and be relieved from the cares and +controversies that have arisen and will arise in her guardianship +of Canada. Her policy in recent years has been to surrender, as +much as possible, her legislative power over Canada, but, as Canada +is not represented in parliament and cannot be represented by a +minister at Washington, the spectacle of a British minister of the +highest rank engaged in an effort to negotiate a treaty for the +benefit of Canada about bait and fish and fisheries, imposing +restrictions of trade in direct opposition to the policy of the +mother country. This condition of Canada constantly invites a +breach of the peace between the United States and Great Britain, +but with Canada governed by a parliament and by local assemblies in +the provinces on a plan similar to our own, the two republics would +be independent of each other, and could arrange their matters +without any other country to interfere. + +There were many other measures of interest and importance in the +discussing and framing of which I participated at this session, +but as this is not a general history of Congress, I do not deem it +necessary to mention them in detail. + + +CHAPTER LV. +REPUBLICAN NATIONAL CONVENTION OF 1888. +Majority of the Ohio Delegates Agree to Support Me for President-- +Cleveland and Thurman Nominated by the Democrats--I Am Indorsed by +the State Convention Held at Dayton, April 18-19--My Response to +a Toast at the Americus Club, Pittsburg, on Grant--Meeting with +Prominent Men in New York--Foraker's Reply to Judge West's Declaration +Concerning Blaine--Blaine's Florence Letter to Chairman Jones--His +Opinion of My Qualifications for the Honorable Position--Meeting +of the Convention in Chicago in June--I Am Nominated by General D. +H. Hastings and Seconded by Governor Foraker--Jealously Between +the Ohio Delegates--Predictions of My Nomination on Monday, June +25--Defeated by a Corrupt New York Bargain--General Harrison is +Nominated--Letters from the President Elect--My Replies--First +Speeches of the Campaign--Harrison's Victory--Second Session of +the 50th Congress--The President's Cabinet. + +While Congress was in session the people of the United States were +greatly interested in the choice of a candidate for President. +Conventions were held, votes were taken and preferences expressed +in every state. It was settled early in the year that a large +majority of the delegates from Ohio would support me for President, +and several weeks before the convention was held it was announced +that I would receive the unanimous support of the delegates from +Ohio. The Democratic party nominated Grover Cleveland and Allen +G. Thurman for President and Vice President. + +The Republican state convention was held at Dayton, Ohio, on the +18th and 19th of April, and selected Foraker, Foster, McKinley and +Butterworth as delegates at large to the national convention. +Forty-two delegates were nominated by the twenty-one districts, +and all of them were known to favor my nomination. The convention +unanimously adopted this resolution: + +"Seventh. The Republicans of Ohio recognize the merits, services +and abilities of the statesmen who have been mentioned for the +Republican nomination for the presidency, and, loyal to anyone who +may be selected, present John Sherman to the country as eminently +qualified and fitted for the duties of that exalted office, and +the delegates to the Republican national convention this day selected +are directed to use all honorable means to secure his nomination +as President of the United States." + +The speeches made at the convention by the delegates at large, and +by other members, expressed without qualification the hearty and +unanimous support of my nomination. The condition upon which alone +I would become a candidate for so exalted a position as President +of the United States had been complied with, and I therefore felt +that I might fairly aspire to the nomination. Mr. Blaine had +declined it on account of his health, and no one was named who had +a longer record of public service than I had. + +The movement for my nomination was heartily indorsed by the people +of Ohio and was kindly received in the different states. Many of +the leading newspapers assumed that it was assured. Sketches of +my life, full of errors, appeared. My old friend, Rev. S. A. +Bronson, issued a new edition of his "Life of John Sherman." +Comments favorable and unfavorable, some of them libelous, appeared +in print. Mrs. Sherman, much more sensitive than I of calumny, +begged me not to be a candidate, as the office of President had +killed Lincoln and Garfield, and the effort to attain it had broken +down Webster, Clay and Blaine, and would do the same with me. +However, I remained at my duties in Washington as calmly awaiting +the action of the Chicago convention as any one of my associates +in the Senate. I read the daily reports of what was to be--"that +I was to be nominated on the first ballot," and "that I had no +chance whatever," and became alike indifferent as to the one or +the other result. + +Shortly after the Ohio convention, I was invited to attend a banquet +of the Americus club at the Monongahela House, in Pittsburg, on +the 28th of April, at which Senator Harrison and Colonel Fred. +Grant were guests. The lobby of the hotel looked as if a political +convention was in session, many prominent men from Pennsylvania +and other states being present. + +At the banquet I was called upon to respond to the toast "Grant; +He Was Great to the End." I insert a portion of my remarks: + +"I saw General Grant when he arrived in Washington. He soon took +command of the Army of the Potomac. His plan of campaign was soon +formed. His objective point was Lee's army. Where Lee went he +went, and if Lee moved too slowly Grant flanked him. After the +fearful and destructive battles of the Wilderness, Washburne wanted +to carry some consoling message to Lincoln, and Grant wrote 'I +propose to fight it out on this line if it takes all summer.' And +so he did, and all winter. He never loosed his tenacious grip of +Lee's army until Lee surrendered at Appomattox. If you ask me the +secret of his success I say tenacity, tenacity. He never was +discouraged. He knew how to hold on. And when his object was +attained, and not till then, he knew how to be generous. + +"He carried the same traits into civil life. He was always the +same plain, simple, confiding, brave, tenacious and generous man +in war and peace, as when the leader of vast armies, President of +the United States, the guest of kings and emperors, and in his +final struggle with grim-visaged death. Gentlemen, you do right +to commemorate his birthday. It was his good fortune to be the +chief instrument of Divine Power to secure to you and your posterity +the blessing of a free, strong and united country. He was heroic +to the end, and you should be equally heroic in maintaining and +preserving the rights and privileges and policy for which he +contended. + +* * * * * + +"I deem it an honor to be called upon by your club, on this sixty- +sixth anniversary of the birthday of General Grant, to present in +brief words this typical American citizen, this illustrious soldier, +this patriotic President. By his tenacious courage and skill the +armies of the Union were led from victory to victory, from Belmont +to Appomattox, until every enemy of the republic laid down his arms +in unconditional surrender. He won from foreign nations reparation +for injuries done to us during the war. He did more than anyone +else to preserve untarnished the public credit and honor. Heroic +to the end, in the hours of death he won his greatest victory by +the story of his life, told in words so plain, truthful, charitable +and eloquent that it will become as classic as the commentaries of +Caesar, but more glorious as the record of a patriot who saved his +country, instead of a conqueror who overthrew its liberties. When +speaking of General Grant I do not know where to begin and where +to end, whether with his personal traits of character, his achievements +as a commander of armies, or his services as an untried magistrate +in civil life; I can only make a mere reference to each of these +elements of his fame." + +During the whole of the month of May I remained in Washington, and +attended constantly the sessions of the Senate. I was greatly +interrupted by visits of persons from different parts of the country, +who wished to converse with me in regard to the approaching +convention. I treated them kindly, but referred them to General +Raum for any information he could give them. I was called to New +York on the 8th of June, to attend a meeting of the directors of +the Fort Wayne Railway Company. I stopped at the Fifth Avenue +hotel, where great numbers of politicians called upon me, but I +was charged with having interviews with many persons whom I did +not see. I met the leading politicians of the state, including ex- +Senator Platt, Senators Hiscock and Quay, Charles Emory Smith, of +Philadelphia, and many others. The newspapers had a good many +alleged interviews which never occurred. I then became satisfied +that I would not probably receive more than five or six of the +votes of the New York delegation, as they had generally committed +themselves to Mr. Depew, who was understood to be a candidate. + +It was already asserted in the papers that I would not be nominated, +but that Blaine would be, in spite of his declination in his Florence +and Paris letters. Among others, this was asserted by Judge West, +of Ohio. Governor Foraker, who was at the head of the Ohio delegation +to Chicago, was reported to have said in reply to West: + +"I do not attach much importance to Judge West's recent speech. +He is not a delegate this year, and he only speaks for himself. +Mr. Sherman will have the united and hearty support of the delegates +from this state, and I think his nomination is reasonably assured. +I received a letter from him yesterday in which he expressed himself +as being very confident of getting the nomination. It certainly +looks that way to me." + +"How do you account for the circulation of the reports that you +are not entirely loyal to Sherman?" + +"I suppose they originated in the breasts of mischief-makers who +would like to make trouble. There never was the slightest foundation +for them. I have paid no heed to them, for if my character is not +sufficiently established in this state to make my attitude towards +Mr. Sherman perfectly clear, nothing I could say would alter the +situation. It has been practically settled that General Hastings, +the adjutant general of Pennsylvania, will present Mr. Sherman's +name to the convention. He is an excellent speaker, and will, no +doubt, acquit himself with credit. Yes, I shall probably make the +speech seconding his nomination from this state. It is customary, +I believe, to have a candidate presented by a delegate from some +other state than his own, and in Sherman's case it seems eminently +proper that he should be presented in this way, as he is in such +a broad sense a national candidate." + +There was a common opinion prevailing that the relations of Blaine +and myself were not friendly. This was a grave mistake. We had +never had any controversy of a personal character. He had spoken +of me in terms of the highest eulogy in his book "Twenty Years of +Congress," in this manner: + +"It seldom happens that the promoter of a policy in Congress has +an opportunity to carry it out in an executive department. But +Mr. Sherman was the principal advocate of the resumption bill in +the Senate, and during the two critical years preceding the day +for coin payment he was at the head of the treasury department. +He established a financial reputation not second to that of any +man in our history." + +Prior to our state convention, while Mr. Blaine was abroad, I wrote +to a friend of his, who was with him, that if Blaine desired to be +a candidate I would withdraw and advocate his nomination. This +letter was handed to Murat Halstead, who was about to proceed to +Europe. He showed it to Blaine, who insisted that he could not +and would not be a candidate, and wrote a letter to B. F. Jones, +chairman of the Republican national committee, in which he stated, +in terms that could not be mistaken, his position in regard to the +presidency, and settled for good the question of his candidacy. +In neither of his previous epistles did he state positively he +would not accept the nomination if tendered him. In the letter to +Chairman Jones this declaration was most emphatically made. Under +no circumstances, Mr. Blaine said, would he permit the use of his +name in Chicago, nor would he accept a presidential nomination +unanimously tendered him. He further went on to say that Senator +John Sherman was his preference, and advised the convention to +place his name at the head of the Republican national ticket. + +Mr. Halstead said to a correspondent of the New York "World," in +regard to Mr. Blaine's position, that he had achieved the greatest +place in our political history--above that of Henry Clay--that the +nomination would have come to him unsought, but he had smothered +any personal ambition he may have had for the good of his party. +Mr. Blaine's name, he declared, would not come before the Chicago +convention as a candidate in any contingency we have a right to +assume. "Mr. Blaine told me," he said, "when I met him in Europe +in August last, that he was not a Tichborne claimant for the +presidency, and he wanted his friends to understand it. Mr. Blaine +will have as distinguished a place in history as he could have +obtained had he been elected to the presidency." + +Mr. Blaine was asked: "Do you think Mr. Sherman could be elected?" + +He replied: "Mr. Sherman represents the principles of the Republican +party from its beginning. He has never wavered in his allegiance +to the party. If we cannot elect a man on the principles of the +Republican party we will not be able to pull anyone through on +personal popularity. I think Mr. Sherman is as strong as the +Republican party, and that if nominated he can be elected, and also +that he has great personal strength." + +In reply to the question, "Will the Ohio delegates remain true to +Sherman?" Mr. Blaine said: "Of that there can be no doubt. They +are riveted and double-bolted to him. The talk of Foraker's scheming +for himself is nonsense and malice. Foraker is a young man and +has a great future before him. He may go to the Senate and be +President later on. No, the Garfield miracle cannot be repeated +this year. It is impossible." + +The convention met at Chicago on the 19th of June. The delegation +from Ohio was promptly in attendance, and was to all appearances +united, and determined to carry out the instructions and requests +of the state convention to support my nomination. There appeared +to be some needless delay in the report of the committee on +resolutions. Mr. McKinley, as chairman of the committee, reported +the resolutions and they were unanimously adopted by the convention +by a standing vote amid great enthusiasm. + +I was nominated by General D. H. Hastings, of Pennsylvania, in a +speech of remarkable power and eloquence. When he closed, enthusiastic +and prolonged cheering and waving of flags greeted him from the +galleries, which was joined in my many delegations. + +Governor Foraker seconded the nomination. His opening words were: +"Ohio is sometimes like New York. She occasionally comes to a +national Republican convention divided as to her choice for the +presidency, and sometimes she comes united. She has so come on +this occasion. Her forty-six delegates are here to speak as one +man." His speech throughout was received with great applause, and +it and that of General Hastings were regarded as the most eloquent +nominating addresses of the convention. They were followed by +speeches made by John M. Langston, of Virginia, and Mr. Anson, of +North Carolina. There certainly could be no fault found with either +the manner or the matter of these addresses. + +There was a constant effort made to produce jealousy between the +members of the Ohio delegation, and perhaps it may be admitted that +the natural divisions in a body of forty-six members would give rise +to suspicion and misunderstanding, but I have no right to complain +of anything done by the members of the delegation during the +convention. There was a natural rivalry between Foraker and +McKinley, as they were both young, able and eloquent men. Rumors +prevailed at times that the Ohio delegation could be held solid no +longer, but if there was any ground for these rumors it did not +develop into a breach, as the delegation, from beginning to end, +cast the entire vote of Ohio for me on every ballot except the last +two or three, when one of the delegates, J. B. Luckey, voted for +Harrison, placing his action on the ground that he had served with +him in the army and felt bound to vote for him. + +On Saturday evening I was telegraphed by different persons that I +would certainly be nominated on Monday. That was the confident +belief in Washington. On Sunday the following dispatch was published, +which, though I do not recall any such conversation, expresses my +feeling on that day: + +"Senator Sherman says he does not believe that Foraker, or any +other Ohio man, will desert him. He spent three hours Sunday at +the capitol, in his committee room, and received many telegrams +from Chicago, and also sent dispatches to that great central point +of interest. He has received some unauthorized dispatches advising +him to withdraw in favor of McKinley, but he refuses absolutely to +interfere with his managers. His invariable answer to all advising +him to pull out is that he is in the fight to stay." + +On Monday, the 25th of June, I did not anticipate a change on the +first ballot from the last one on Saturday. I did expect, from my +dispatches, that the nomination would be made that day and in my +favor, but, as the result proved, an arrangement had been made on +Sunday that practically secured the nomination of General Harrison. +This became obvious in the course of the vote on Monday and, as +Harrison was practically assured of the nomination, Pennsylvania +voted solid for him and ended the contest. + +From the best information I could gather from many persons with +whom I conversed, I have no hesitation in expressing the opinion +that I was defeated for the nomination by New York. I was assured +before the meeting of the convention that I would have six votes +from the beginning from that state, and could reasonably hope for +a large addition to that vote in the progress of the balloting. +Instead of this I did not receive a single vote, although three or +more of the delegates had been distinctly selected in my favor and +had given pledges to their constituents that they would vote for +me, but they did not on a single ballot do so, except I was advised +that at one ballot one of them voted for me. + +I believed then, as I believe now, that one of the delegates from +the State of New York practically controlled the whole delegation, +and that a corrupt bargain was made on Sunday which transferred +the great body of the vote of New York to General Harrison, and +thus led to his nomination. It is to the credit of General Harrison +to say that if the reputed bargain was made it was without his +consent at the time, nor did he carry it into execution. + +I believe and had, as I thought, conclusive proof that the friends +of General Alger substantially purchased the votes of many of the +delegates from the southern states who had been instructed by their +conventions to vote for me. + +There were eight ballots taken in the convention, in all of which +I had a large plurality of the votes until the last one. + +When General Harrison was nominated I assured him of my hearty +support. I have no respect for a man who, because he is disappointed +in his aspirations, turns against the party to which he belongs. +I believe that both honor and duty require prompt and ready +acquiescence in the choice made, unless it is produced by corruption +and fraud. + +I had no reason to believe, however, that General Harrison resorted +in the slightest degree to any improper or corrupt combination to +secure his nomination. In answer to a letter from me expressing +my congratulations and tendering my support, I received from him +a very cordial reply, as follows: + + "Indianapolis, July 9, 1888. +"My Dear Senator:--Your very frank and kind letter of June 30th +has remained unanswered so long only because it was impossible for +me to get time to use the pen myself. Some friends were asking +'have you heard from Sherman,' and my answer always was, 'have no +concern about him. His congratulations and assurances of support +will not be withheld, and they will not be less sincere than the +earlier and more demonstrative expressions from other friends.' +You will recall our last conversation at Pittsburg, in which I very +sincerely assured you that except for the situation of our state +my name would not be presented at Chicago in competition with yours. +I have always said to all friends that your equipment for the +presidency was so ample and your services to the party so great +that I felt there was a sort of inappropriateness in passing you +by for any of us. I absolutely forbade my friends making any +attempt upon the Ohio delegation, and sent word to an old army +comrade in the delegation that I hoped he would stand by you to +the end. + +"I shall very much need your service and assistance, for I am an +inexperienced politician as well as statesman. My desire is to +have a Republican campaign and not a personal one, and I hope a +good start will be made in that direction in the organization of +the committee. I have not and shall not attempt to dictate the +organization, but have made some very general suggestions. I will +confidently hold you to your promise to give me frankly any +suggestions that you may think valuable, and assure you that +criticism will always be kindly received. + +"Mrs. Harrison joins me in kind regards to Mrs. Sherman. + + "Very sincerely your friend, + "Benj. Harrison. +"Hon. John Sherman, U. S. Senate. + +"I shall be very glad to see you when you come." + +I had many letters from him during the canvass and gave him a hearty +and I think effective support. After his election he wrote me the +following letter: + + "Indianapolis, Ind., November 22, 1888. +"Hon. John Sherman, Washington, D. C. + +"My Dear Senator:--You will understand, without any explanation +from me, that my little home bureau was entirely inadequate to deal +with the immense flood of telegrams and letters that poured in upon +me after the election. It has happened, that some of those that +should have had earliest attention have been postponed, by reason +of the fact that the associated press carried off the telegrams +and they were not returned for some times. But you did not need +to be assured that I appreciate very highly your friendly words, +and rely implicitly upon that friendly spirit that has not only +prompted them, but so much besides that was useful to me. + +"I have, up to this time, given my whole attention to visiting +friends and to my correspondence with those who have addressed me +by wire or mail. We are just now torn up a little in our household +by reason of the work necessary to introduce the natural gas; but +will after a little while be settled again. I wish that you would +feel that I desire you to deal with me in the utmost frankness, +without any restraints at all, and in the assurance that all you +may say will be kindly received and will have the weight which your +long experience in public life and your friendship for me entitles +it to. I know the embarrassments that now attend any intercourse +with my friends, on their part, rather than on mine; but you will +find some method of communicating with me if you desire, and after +awhile I will have the pleasure of a personal conference. With +kind regards to Mrs. Sherman, I am, + + "Very sincerely yours, + "Benj. Harrison." + +I sent him the following answer: + + "Washington, D. C., November 26, 1888. +"My Dear Sir:--Yours of the 22nd is received. I appreciate the +embarrassments of your position and feel that the highest mark of +friendship is to let you alone, and have therefore refrained from +writing to or visiting you. Still I wish you to feel that I have +no hope or ambition higher than to see your administration a complete +success. The victory is a Republican victory and that I think is +a victory for the whole country. Any advice or aid I can give will +be freely rendered on call, but not tendered until needed. I notice +that every scribbler is making a cabinet for you, but your observation +must have led you to the conviction that this is a duty you only +can perform. Advice in this matter is an impertinence. Your +comfort and success will largely depend upon this, and if I were +to offer advice it would be to consult alone your own judgment, +taking care to choose those who above all will be faithful and +honorable to you and administer the patronage of the departments, +not in their own selfish interests, but for the good of the country. +The cabinet should be fairly distributed among the different +sections, but this is not the prime necessity, nor is it vital that +cliques or factions be represented, but only the general average +of Republican ideas and policy. + +"As to the broader questions of public policy the rule of action +is very different than the one suggested as to cabinet officers. +The President should 'touch elbows' with Congress. He should have +no policy distinct from that of his party, and this is better +represented in Congress than in the Executive. Cleveland made his +cardinal mistake in dictating a tariff policy to Congress. Grant +also failed to cultivate friendly relations with Congress, and was +constantly thwarted by it. Lincoln had a happy faculty in dealing +with Members and Senators. + +"As to visiting you, I will do so with pleasure if you think it +necessary, but I dread, on your account as well as my own, the +newspaper talk and gabble that will follow. It might embarrass +you with others. With the modern facility of dictating you can +converse with me without restraint, and all letters passing between +us can be returned to the writer. In conclusion permit me to say, +and perhaps I am justified in saying by what appears in the papers, +that you must not feel embarrassed or under the slightest restraint +by seeing my name in connection with office. I am not seeking or +expecting any position, nor have I ever determined in my own mind +whether I could, consistently with my duties to Ohio, accept any +executive office. You should fell like a gallant young gentleman +entering upon life with a world of girls about him, free to choose +--to propose, but not to dispose. + +"Give my kind regards, in which Mrs. Sherman and Mamie join, to +Mrs. Harrison and your children, especially the little grandson. + + "Very respectfully yours, + "John Sherman." + +The result of the nomination at Chicago did not in the least disturb +my equanimity or my allegiance to the great party to which I +belonged, and for the success of which I had devoted my life since +1854. I listened with complaisance to the explanations made as to +the wavering of the Ohio delegation on the Saturday previous to +the nomination, and as to the unexpected action of the New York +delegation and the curious reasoning which held them together in +the hope that they could persuade their leader to vote for me. +The only feeling of resentment I entertained was in regard to the +action of the friends of General Alger in tempting with money poor +negroes to violate the instructions of their constituents. I have +since read many of the revelations made subsequently as to the +action of the Ohio delegation, and came to the conclusion that they +did what they thought best to promote my nomination, and had just +ground for discouragement when my vote fell below the number +anticipated. + +On the 5th of July I attended the national exposition in progress +in Cincinnati at that time, and made a speech mainly confined to +the remarkable growth of the northwestern states. On the next day +I visited the chamber of commerce, and the Lincoln club. I then +went to Mansfield. On the evening of the day of my arrival I was +called upon by a great number of my townsmen, who seemed to feel +my recent defeat with more regret than I did. + +During this visit to Ohio I heard a great deal about the Chicago +convention, but paid little attention to it, and said I was content +with the result, that my friends had done what they could, that +Harrison was nominated and ought to be elected. As quoted by a +newspaper reporter, I said: "Henceforth, I can say what I please, +and it is a great pleasure. This feeling of freedom is so strong +with me that I am glad I did not get the nomination." Whether I +uttered these words or not, they expressed my feeling of relief at +the time. + +The 100th anniversary of the first permanent settlement in the +State of Ohio, at Marietta, was celebrated on the 7th of April, +1888. There was a difference of opinion among the people whether +the proper day was the 7th of April or the 15th of July, as the +landing of the settlers was on the 7th of April, but on the 15th +of July General Arthur St. Clair entered upon the discharge of his +duties as governor of the northwestern territory. The result was, +the people of Marietta concluded to celebrate on both days. Senator +Evarts made an eloquent address on the 7th of April, and I was +invited to deliver one on the last day of the second celebration, +commencing on the 15th of July. The ceremonies, visiting and +feasting continued during five days. The fifth day was called +"Ohio day," and was intended as the finale of a great celebration. +It was said that 20,000 persons thronged the streets and participated +in the memorial ceremonies on that day. This vast crowd, gathered +from many different states, were hospitably entertained by the +citizens of Marietta. The exercises commenced in the morning at +ten o'clock, with Governor Foraker presiding. Among the distinguished +guests were the governors or lieutenant-governors of the states +that were carved out of the northwestern territory. I had not +prepared a speech, but knew what I intended to talk about. I was +introduced by Governor Foraker in an eloquent address, which he +knew how to make. I said: + +"Ladies and Gentlemen:--The very flattering manner in which our +governor has introduced me to you rather disturbs the serenity of +my thoughts, for I know that the high panegyric that he gives to +me is scarcely justified to mortal man. We have faults, all have +failings, and no one can claim more than a fair and common average +of honest purpose and noble aim. I come to-day as a gleaner on a +well-reaped field, by skillful workmen who have garnered the crop +and placed it in stacks so high that I cannot steal a sheaf without +being detected. I cannot utter a thought without having it said +that I copied from some one else. I thank fortune I have no framed +speech made, for, if I had, the speech would have been read or +spoken to you in eloquent terms, but I only come with thoughts +inspired by the great history we are called upon to review--a +hundred years of this northwest territory. What a theme it is! +Why is it that this favored country of 260,000 square miles and +about 160,000,000 acres of land had been selected as the place +where the greatest immigration of the human race has occurred in +the history of the whole world? There is no spot in this world of +ours of the size of this western territory, where, within a hundred +years, 15,000,000 of free people are planted, where, at the beginning +of the century, there was scarcely a white man living. I am glad +it has been spoken of by such eminent men as Senators Hoar, Evarts, +Daniel, Tucker, General Ewing and many other distinguished men; +and remember, citizens of Marietta, when I speak of this centennial +celebration, I do not mean that on the 15th of July only, but on +the 7th of April and the 15th of July bound together in a noble +wedlock." + +I referred to the claims made by several of the old states, based +upon their so-called titles to the whole or to portions of the +northwestern territory. Senator Daniel, who was on the stand with +me, had claimed that Virginia owned all the territory south of the +41st degree of north latitude and westward to the "South Sea." +Connecticut claimed all north of that line. New York made a similar +claim, all based upon grants by King James or King Charles, neither +of whom knew where the South Sea was, and had no conception of or +control over the vast territory covered by these grants. Neither +of these states had either title to or possession of any part of +the northwest territory. The only title based on European law was +that acquired by Great Britain from France in 1763, and that title +was transferred to the United States at the close of the Revolutionary +war. There was no just title to this region except that held by +the Indian tribes of America. They owned and possessed it. Before +the constitution of the United States was, or could have been, +adopted the imaginary claim of the several states was ceded to the +United States for the common use and benefit of them all. Virginia +and Connecticut reserved large portions of Ohio from their several +grants, and these reservations were conceded to them. There is +one title which has always been acknowledged by civilized nations, +and that is the title by conquest. The only valid title of the +United States was that based upon the conquest by George Rogers +Clark, who conquered this country from Great Britain. It was not +Virginia that did it. And, yet, among the illustrious names that +have been furnished by that magnificent state, in the history of +this country, that of George Rogers Clark will be gratefully +remembered. He, with his two or three hundred Kentuckians, marched +through that country, as Senator Daniel described, and subdued the +British. Virginia is entitled to the honor of having this son; +but it was George Rogers Clark who gave the United States its title +to the northwest. The Indians, however, had possession, and how +was their title to be disposed of? A treaty was made at Fort +Harmar, and plans were adopted to get possession of the Indian +land. The Indians always claimed they were cheated in the treaty, +defining the boundary line between them and the white men. Therefore, +Indian wars came on. St. Clair was defeated by the British and +Indians combined. The British were always at the back of every +hostile movement that has been made in the history of our country. +In Judge Burnett's "Notes of the Northwest Territory" there is a +full account of how white men, step by step, gained possession of +this territory. + +The Indian tribes made bold and aggressive efforts to hold Ohio. +They defeated in succession the armies of St. Clair and Harmar, +but were compelled to yield to the invincible force of General +Wayne and his army. It is painful and pathetic to follow the futile +efforts of the Indians to hold the northwest, their favorite hunting +grounds. They were told that only a little land was wanted for +some poor white settlers to keep them from starving. They were +offered $50,000 in money, and $50,000 annually for twenty years, +for the southern part of Ohio. The council adjourned until the +next day. When it convened an old chief said that "Great Spirit" +had appeared to them and told them a way in which all their troubles +could be ended. "Let our Great Father give to the few poor white +settlers among us the money you offer to us and let them go back +from whence they came and be rich and happy." Colonel Wayne could +not answer this logic, and the Indians were compelled to submit to +their fate and ceded one-half of Ohio. In concluding I said: + +"In the history of Ohio we have passed through three or four stages. +First was the struggle with the Indians. This generation has not +realized it, but I have lived long enough to know something about +it in the northern part of Ohio. I saw the last Indian tribe leave +the soil of Ohio in 1843, the Wyandotte Nation. There was but the +feeble remnant of the most powerful tribe in the world. The next +period was the clearing of log cabins. Every homestead was a log +cabin--no brick houses, no frame houses, except in town. The log +houses in the clearing, the toilsome and exciting time. You talk +about hard times now--I have seen the time when a man was glad to +get thirty-two cents for a bushel of wheat; when eggs could not be +sold, when the only way to get 'York money' was to drive horses +and cattle and sheep over the Alleghanies. The next step was the +canal system, which brought laborers into the country. Then came +the railroads and telegraphs, when the canals ceased to exist. + +"Now, I am done. I shall think, however, that I am not through +unless I reverently and devoutly give thanks to the Ruler of the +universe for all this great good that has come upon this great +continent. Here we see the most wonderful republic in the world, +born within a hundred years, a great community peopling a continent, +having every facility in the world for homes--no land-locked +monopoly, closing the door to the poor acquiring homes, or if it +does, it should be broken down at every hazard by wise laws passed +from time to time. I reverently thank God for our homes, for our +great cities, for our state and, more than all else, for our +country." + +On the 6th of October, while Congress was still in session, I went +to Cincinnati and joined in celebrating "Republican day" at the +exposition. + +Immediately upon the adjournment of Congress I went to Cleveland +to attend a meeting in the Music Hall, where I made my first speech +in the political campaign. It was carefully prepared and was +confined mainly to a full discussion of the tariff question. From +that time until the day of the election I was constantly occupied +in making speeches in different parts of the state and in Indiana. +Among the many places in which I spoke in Ohio were Lancaster, +Defiance, Toledo and Mansfield. My first speech in Indiana was at +Portland. I referred to a statement made in the newspapers that +the Republicans had given up Indiana, and denied this emphatically. +I said that since I had come among them and felt the enthusiasm +exhibited by them I was entirely confident that they would give to +their own "most gallant citizen for President of the United States" +a hearty and enthusiastic support. I discussed at length the Mills +bill and the tariff bill of the Senate, and closed with an appeal +to the "Hoosier voter" in behalf of Ben. Harrison, "the hero of +Peach Tree Creek, and the man that honored Indiana in the Senate +of the United States for six years." + +On the next day I spoke at Huntington, opening my speech as follows; + +"When I was traveling over the State of Ohio, recently, I was +occasionally asked 'what about Indiana?' and now, since I have been +in Indiana, I will be able to answer more accurately than I could +have done, although I believed the people of Indiana were loyal, +and brave, and true, and would never turn their backs upon their +most eminent citizen when he had been designated by the Republican +party as a candidate for chief magistrate of the Union. But I have +no longer any doubt about Indiana. I saw yesterday 10,000 to 15,000 +people, excited by the highest enthusiasm, marching in the bright +sun and warm atmosphere in a county supposed to be Democratic. To- +day, although the weather is inclement, I see your streets filled +with ardent and enthusiastic people, shouting for Harrison and +Morton and the Republican ticket. No rain disturbs you; no mud +stops you. I shall go back to Ohio and tell them that the Buckeyes +and Hoosiers will march together." + +While in Indiana I received a request from Harrison to speak at +Indianapolis, but my engagement at Toledo prevented this, much to +my regret. + +My part in the canvass closed at home on the evening of the 5th of +November. I concluded my speech as follows: + +"Benjamin Harrison possesses many qualities of the highest character. +He is an able lawyer, an honest man and a good citizen. Benjamin +Harrison is a man for whom every American citizen should vote. He +would stand like a wall of fire on every question of honor with a +foreign country. If you want to do your country a valuable service +you will go to the polls and give a good square honest vote for +Harrison." + +Harrison received in Ohio a majority over Cleveland of 19,000 votes, +and a majority of the electoral vote in the country. + +During the period immediately following the election, the papers +were, as usual, full of conjectures as to cabinet appointments. +All sorts of cabinets were formed for General Harrison and in many +of them I was mentioned for the office of Secretary of State. It +was because of this that I wrote to Harrison the letter already +inserted of the date of November 26. I wished to relieve him from +all embarrassments, as I had made up my mind not to hold any office +except such as might be given to me by the people of Ohio. I +gratefully acknowledge that all the political favor I have received +has been from the people of my native state. + +On the 28th of November Mrs. Ellen Ewing Sherman, wife of General +Sherman, died at her home in New York. She had been in feeble +health, but was taken seriously ill about three weeks before her +death. She was an accomplished woman of marked ability inherited +from her father, a devout Christian of the Catholic faith. Her +life had been devoted to the relief of suffering and want. This +sad calamity was a source of great grief to her own family and that +of her husband. She was married to General Sherman on the 1st of +May, 1850, at Washington, when her father was a member of the +cabinet of President Taylor. Throughout her entire life she was +an affectionate wife and a devoted mother. Her remains were removed +to St. Louis, and were there buried beside those of two sons and +three grandchildren. + +The winter of 1888-89, after the political excitement of the year +before, seemed a tranquil period of rest. The coming change of +administration excited some interest, especially the selection of +a cabinet. Blaine and I were frequently mentioned in the public +prints for appointment as Secretary of State, but I gave no attention +to the rumors. I did not care to decline an office not tendered +to me, though I had definitely made up my mind not to accept any +executive office. The duties of a Senator were familiar and +agreeable to me. I doubted the wisdom of competing presidential +candidates accepting cabinet appointments under a successful rival. +The experiment of Lincoln, with Chase and Seward as his principal +advisers, was not a good example to follow. + +The short session of the 50th Congress, commencing December 3, +1888, was mainly occupied with the tariff question, already referred +to, but without hope of passing any tariff bill. Many other +questions of public policy were also discussed, but as a rule were +postponed to the next Congress, which it was known would be Republican +in both branches. Perhaps the most interesting topic of debate +was the condition of affairs in Samoa. As chairman of the committee +on foreign relations, on the 29th of January, 1889, I presented +to the Senate a full statement of the complications in that far +distant group of islands. In opening I said: + +"The time has arrived when Congress, and especially the Senate, +must give intelligent attention to the questions involved in the +occupation and settlement of the Samoan Islands. These questions +are now exciting profound attention, not only in this country, but +in Great Britain and Germany. While supporting the amendments +proposed by the committee on foreign relations, reported now from +the committee on appropriations, I think it is due to the Senate +and the people of the United States that I should state, in a +skeleton form, the chief facts in regard to this matter, and that, +too, without any feeling whatever, without any desire to interfere +with our diplomatic negotiations, or to disturb the harmony of our +relations with Germany or Great Britain. I hope that the action +of the Senate will be unanimous upon the adoption of these amendments, +and that a frank and open debate will tend to this result." + +It is not worth while to follow the line of events that resulted +in making Great Britain, Germany, and the United States the guardians +of these far distant, half-civilized, mercurial, and combative +orientals. The only interest the United States had in these islands +was the possession and ownership of the Bay of Pago-Pago, acquired +by a treaty in 1878 between the United States and the King of Samoa. +The repeated wars on a small scale that have occurred since that +time, and the complications and expense caused by the tripartite +protectorate of the islands, furnish another example of the folly +of the United States in extending its property rights to lands in +a far distant sea. Our continental position ought to dissuade us +from accepting outside possessions which in case of war would cost +the United States more to defend than their value. + +On the 24th of February, 1889, my youngest sister, Fanny Sherman +Moulton, the widow of Colonel Charles W. Moulton, died at her +residence at Glendale, Ohio, after a brief illness. Her husband +died in January, 1888. She was buried by his side in Spring Grove +Cemetery, near Cincinnati. In the hurry of the close of the session +I could not attend her funeral. She was always kind and affectionate, +not only to her children, but to all her kindred. I felt her death +keenly, for as the youngest of our family she had lived with me +until her marriage, and was regarded by me more as a daughter than +a sister. + +The called session of the Senate convened on the 4th of March, +1889. President Harrison's message was well delivered and well +received. It was longer than the usual inaugural. It was free +from any studied rhetoric, but was sensible, logical and satisfactory. +The nominations of the cabinet officers were made and immediately +confirmed. Those of Blaine and Windom were anticipated but the +remainder of the cabinet excited some surprise. They were +comparatively new men, without much, if any, experience in +congressional life, but were well known in their respective states +as gentlemen of ability and high character. A bare majority of +the Senate were classed as Republicans. They retained the organization +of the committees and no material changes were made. The Senate +acted upon its general custom to confine its business to that which +it could do alone without the action of the House. It adjourned +on the 2nd of April, 1889. + + +CHAPTER LVI. +FOUR AND A HALF MONTHS IN EUROPE. +Our Party Takes Its Departure on the "City of New York" on May 1-- +Personnel of the Party--Short Stop in London--Various Cities in +Italy Visited--Sight-Seeing in Rome--Journey to Pompeii and Naples +--Impressions of the Inhabitants of Southern Italy--An Amusing +Incident Growing Out of the Ignorance of Our Courier--Meeting with +Mr. Porter, Minister to Rome--Four Days in Florence--Venice Wholly +Unlike Any Other City in the World--Favorable Impression of Vienna +--Arrival at Paris--Reception by the President of the Republic of +France--Return Home--My Opinion Concerning England and Englishmen +--Reception at Washington--Campaigning Again for Foraker--Ohio Ballot +Box Forgery and Its Outcome--Address at Cleveland on "The Congress +of American States"--Defeat of Foraker for Governor. + +Soon after the close of the called session in April, 1889, Mrs. +Sherman and I concluded to make a trip to Europe. Both of us had +been confined more than usual for over a year, and needed recreation +and a change of scene. We went to New York on the 27th of April, +stopping with my niece, Mrs. Alfred M. Hoyt. On the next day we +witnessed from the battery the naval parade in honor of the centennial +of the inauguration of Washington. On the first of May my little +party, composed of Mrs. Sherman, Miss May Hoyt, my daughter Mary +and myself, were driven to the steamer "City of New York," and +there met Senator Cameron and his wife, with their infant child +and nurse, Mrs. Colgate Hoyt, a niece of mine, with four children +and nurse, and Mrs. Henry R. Hoyt, child and nurse. With this +large party we had a joyous and happy voyage. Among the passengers +we found many agreeable companions and had the usual diversions, +such as music, singing and card playing. We arrived at Queenstown +on the 8th of May without any special incident, proceeding thence +to Liverpool and London, where we stopped at the Hotel Metropole. +Here all our companions except our family party of four left us. +As it was our desire to visit Italy before the hot weather set in, +we determined to push on as rapidly as convenient to Naples. We +spent a day or two in London. We pushed on to Paris via Folkestone +and Boulogne. We remained three days at the Hotel Liverpool in +Paris and there met several friends, among them Mrs. William Mahone +and daughter, and Major and Mrs. Rathbone. On the 14th we went to +Lyons, the 15th to Marseilles, and the 16th to Nice. On the 17th +we visited Monte Carlo, and on the 18th went to Genoa. Here we +spent two days in visiting the most interesting places in that +ancient and interesting city. From thence, on the 20th, we went +to Rome. The city had already been abandoned by most of the usual +visitors, but we did not suffer from the heat, and leisurely drove +or walked to all the principal places of interest, such as the +ruins of the Roman forum, the Colosseum, the baths of Caracalla +and St. Peter's, and the many churches in that ancient city. In +the six days in Rome we had, with the aid of maps and a good guide, +visited every interesting locality in that city, and had extended +our drives over a large part of the Campagna. At Liverpool I had +employed a Swiss with the awkward name of Eichmann as my courier. +He had a smattering knowledge of many languages, but could not +speak any well; he proved to be faithful, and, so far as I could +discover, was honest. He relieved us from petty cares and could +generally find the places I wished to see. On the 27th we went to +Naples, and on the 28th by steamer to Sorrento and Capri. On the +29th we traveled by carriage to Pompeii and thence to Naples. On +the 30th we drove about Naples as well as we could, but here we +began to feel the heat, which was damp and depressing. It is the +misfortune of this city that, although surrounded on all sides by +the most beautiful and picturesque scenery of sea and mountain, in +a land rich in historical and poetical annals, yet a large portion +of the inhabitants impress a stranger with the conviction that they +are the poorest, and perhaps the most ignorant, population in +Europe. It is a sad reflection, that applies especially to all +parts of southern Italy, that the descendants of the Romans, once +the rulers of the world, are now classed among the lowest in +intelligence in the Christian and civilized world. I remember two +things about Naples, one that Mount Vesuvius was in partial action +during our stay, and that we had a full opportunity to explore the +ruins of Pompeii. + +About this time there occurred an amusing incident growing out of +the ignorance of a common American phrase on the part of my courier. +Mr. Oates, of Alabama, a leading Member of the House of Representatives, +was traveling with his wife and friends on the same general route +that I was. We frequently met and had pleasant and friendly chats. +Eichmann noticed our intimacy and was very polite to Mr. Oates. +One day, as my party and I were about to enter a car, some one +said: "Is not that John Sherman?" Mr. Oates said, in the hearing +of Eichmann: "Yes, that is Sherman," and added as a compliment: +"He was a good watchdog in the treasury." Eichmann catching the +phrase "watchdog" applied to me regarded it as a gross insult. He +rushed into my car, his face aflame with passion and his English +more confused than usual, and said: "That man," pointing to Oates, +"was not your friend; he called you, sir, a watchdog; yes, sir, a +watchdog. He has but one arm, sir, one arm, or I would have +chastised him." I had great difficulty in persuading him what a +"watchdog" meant, that it was intended as a compliment, not as an +insult. + +On the 31st we returned to Rome. During my stay there I had the +pleasure of meeting Mr. Porter, our minister to Rome. He was hardly +yet installed in his duties, as the king had been absent, but +returned from Germany the day I arrived. Porter and I had been in +Congress together, and boarded at the same house. He was not only +a man of ability, but of pleasing address and manners. + +Everybody I saw in Rome was talking about the heat and moving out +of town. On June 1, I went to Florence. There we spent four days +very pleasantly. The hotel was good, the weather all we could +desire, and the people we met, looked contented and comfortable. +They were in striking contrast with their countrymen in Naples. +There was an air about the place that indicated prosperity. Florence +is an art gallery. Several of our countrymen, famous as artists, +of whom I can recall Powers, Meade and Turner, were not only +pursuing, but learning, their art. I was told that a considerable +part of the population were engaged in painting and sculpture. No +doubt their wages were small but food and clothing were also low. + +We would gladly have remained longer in Florence if my plan of +travel would have allowed it. Not only was the city and all the +treasures of art interesting, but the country around was picturesque +and highly cultivated. We could ride in any direction over admirable +roads and almost every place had an historical interest. I witnessed +there a review of several thousand troops, but was especially +interested in a body of small men well drilled for rapid movements. +The parade was on Sunday and the ladies objected to a parade on +that day. I observed that in the Latin states I visited, Sunday +was generally selected for such displays. I purchased two works +of art from American artists. I commend the wisdom of their choice +of location, for in Florence the love of art, especially of sculpture, +is more highly appreciated than in any other city of Europe that +I have visited. + +Our next stopping place was Venice. The chief attraction of this +city is that it is unlike any other city in the world in its +location, its architecture, its history and in the habits and +occupation of its people. It is literally located in the sea; its +streets are canals; its carriages are gondolas and they are peculiar +and unlike any other vessel afloat. Magnificent stone palaces rise +from the waters, and the traveler wonders how, upon such foundations, +these buildings could rest for centuries. Its strange history has +been the basis of novels, romances, dramas and poetry, by writers +in every country and clime. Its form of government was, in the +days of the Doges, a republic governed by an aristocracy, and its +wealth was the product of commerce conducted by great merchants +whose enterprise extended to every part of the known habitable +globe. + +We visited St. Mark's cathedral, the palace of the Doges, and the +numerous places noted in history or tradition. We chartered a +gondola and rode by moonlight through the Grand Canal and followed +the traditional course of visitors. The glory of Venice is gone +forever. We saw nothing of the pomp and panoply of the ancient +city. The people were poor and the palaces were reduced to tenement +houses. Venice may entice strangers by its peculiar situation and +past history, but in the eye of an American traveler it is but a +great ruin. The wages paid for labor were not sufficient to supply +absolute necessities. + +The construction of the railroad to Vienna is a remarkable feat of +engineering. The route over the Semmerling pass presents difficulties +far greater than any encountered in the United States. We spent +four days in and about Vienna. Its location on the River Danube +was a good one for a great city. The surrounding country was +interesting and well cultivated. The comparison between the people +of Vienna and Venice was very much in favor of Vienna. The city +was clean, well built, with many signs of growth and prosperity. +The people were comfortably clad, and the crowds that gathered in +the parks and gardens to hear the music of the military bands were +orderly and polite. Among the European cities I have visited, I +recall none that made a more favorable impression on my mind than +Vienna. I found no difficulty in making my English understood, +and it was said of the people of that city that they generally knew +enough of the English and French languages, in addition to their +native German, to sustain a conversation in either. We visited +Colonel Fred. Grant, then our minister to Austria, at Vosben, about +twenty miles by rail from Vienna. I did not seek to make acquaintances +in Vienna, as my time would not allow it, but, from a superficial +view, I believed that the people of that city were intelligent, +social and friendly, with more of the habits of Frenchmen than of +the Germans of Berlin, or of the English of London. + +From Vienna we followed the line of railroad through Salzburg, +Innsbruck, to Zurich, stopping at each place for a day. This a +very interesting country, generally picturesque, and in some places +mountainous. Here we see the southern German in his native hills. +A vein of superstition colors their creed as good Catholics. They +are, as a rule, loyal to their emperor, and content with their +condition. The passage from the Tyrol into Switzerland is not +marked by national boundaries, such as rivers or mountains, nor +does the population vary much until one reaches Zurich. In our +progress thus far, from Nice through Italy and Austria, our party +had been traveling over, to us, a new and strange land. At Zurich +we entered within a region visited by Mrs. Sherman and myself in +1859. The cities and mountains of Switzerland seemed familiar to +us. Great changes, however, had occurred in modes of travel in +this short period in these old countries. Railroads traversed the +valleys and crossed the mountains, where we had traveled in the +stage coach. At Lucerne I went up a tramway to the top of Mt. +Pilatus, at a grade of from 25 to 35 degrees. I did not feel this +in ascending, but in descending I confess to experiencing real +fear. The jog-jog of the cogwheels, the possibility of their +breaking, and the sure destruction that would follow, made me very +nervous. I would have been less so but for a lady unknown to me, +sitting by my side, who became frightened and turned deathly pale. +I was glad indeed when we reached the lake. + +From Lucerne Mrs. Sherman went to Neuchâtel to meet my niece, Mrs. +Huggins, then sick at that place. The remainder of the party went +to Interlaken and the valley in which it is situated. I have no +room for the description of mountain scenery, and no language can +properly convey a sense of its grandeur. I have mentally contrasted +Mt. St. Bernard and the Simplon with Pike's Peak and Mt. Washburn, +and feel quite sure that in grandeur and in extent of view the +American mountains are superior to those named in Europe, but the +larger population in easy reach of the mountains of Switzerland +will give them the preference for a generation or more. Then Mt. +Shasta will take its place as the most beautiful isolated mountain +in the world, and the Rocky Mountain range will furnish a series +of mountains surpassing the mountains of Switzerland; but both +South America and Asia contain mountains thousands of feet higher +than either or any of the mountains of Europe or North America. + +Without going into details of travels over familiar ground all our +party arrived safely at Paris on the 2nd of July, 1889. Unfortunately, +Mrs. Sherman was called back to Neuchâtel on the 4th of July, on +account of the continued serious illness of Mrs. Huggins, the +balance of the party remaining in Paris. We were in that city two +weeks and attended the international exposition many times. The +French people know better than any other how to conduct such a +show. The great building in which it was held was so arranged that +similar articles were grouped together, and yet all productions of +a country were in convenient proximity. The French are artists in +almost every branch of human industry. They are cheerful, gay and +agreeable. They are polite and therefore sensitive of any slight, +neglect or rudeness and promptly resent it. + +While in Paris we formed some agreeable acquaintances. Whitelaw +Reid, our minister to France, entertained elegantly his countrymen +and his associates in the diplomatic corps. From him our little +party, especially the two young ladies, received many courtesies, +and through him we had invitations from the President of the French +Republic and officers of the exposition. The reception at the +palace of the president was in striking and pleasing contrast with +that given by the emperor in 1867, already referred to. The later +reception was simple in form, something like a reception by the +President of the United States, but where it differed it was an +improvement upon our custom. The invitation was quite general and +extended to the diplomatic corps, to all persons representing any +article in the exposition, and to many citizens and visitors in +Paris, who were named by the diplomatic corps or by the officers +of the French government. I think that fully as many persons were +present as usually attend the receptions of our President. Each +invited guest, as he entered the reception room, gave his name, +and, if escorting others, gave their names to the officer in charge. +The name was announced to the president, who stood a few paces in +the rear, the guests and the president bowed but did not shake +hands and the guests passed on through a suite of rooms or into +the garden. Miss Hoyt, my daughter and I attended the reception +with Mr. and Mrs. Reid. As Mr. Reid entered the room his name and +office were announced, and the president and he advanced towards +each other, shook hands, and I and my party were introduced and we +shook hands. This occupied but a moment and the reception of others +went on, only occasionally interrupted by the president when he +chose to recognize some one by handshaking. When we were received, +as stated, we were introduced by Mr. Reid to several persons on +attendance on the president, and then retired with the passing +company. In this way the president and his wife escaped the extreme +fatigue of shaking hands with thousands of people in rapid succession, +often producing soreness and swelling of hands and arms. I hope +some President of the United States will be bold enough to adopt, +as he can, this simple measure of relief practiced by the President +of the French Republic. The French government also furnishes a +house ample enough for a large reception, which the United States +does not do, but I trust will. + +We left Paris on the 15th of July and joined Mrs. Sherman at +Neuchâtel. After two days at this delightful place we went to +Basle and thence down the Rhine, stopping at places of interest on +the way, but this is a journey I had taken before. + +We made a brief visit to Amsterdam and the Hague, and then went to +Brussels, with which city we had become acquainted on our previous +visit. We arrived in England about the 1st of August and remained +in London, or its environs, a week, most of the time in the country. +During my stay I did not seek to form new acquaintances and most +of the people I knew were absent in the country. From London we +went to Oxford and remained several days visiting the colleges and +the country around, especially the beautiful palace of the Duke of +Marlborough. From there we went to Leamington, and made short +excursions to Warwick Castle, Kenilworth, Stratford and Coventry. +We then visited the English lakes, including Windermere. I was +especially interested in the games, races and wrestling at Grasmere. +From there we went to Chester spending several days in that city +and surrounding country. We visited the magnificent estate of the +Duke of Westminster, a few miles from Chester, and drove through +Gladstone's place, but he was then absent. In Chester we met +Justice Gray and his wife, and Bancroft Davis and his wife. With +them we drove in the old-fashioned coach in and about the environs +of Chester. From thence we went to Liverpool, remaining about a +week in that city. + +It is scarcely necessary to state that such a rapid, transient +visit could hardly convey a proper conception of England or +Englishmen. Our view was like that of the English traveler in +America when he undertakes to describe our vast country on a trip +of a month from New York to San Francisco. My idea of Great Britain +is based, not upon flying visits, but upon my study of English +history and literature. The political institutions of Great Britain +are rapidly approaching our own. While progressive, the people of +that country are also conservative, but with each successive decade +they extend the power of the House of Commons so that already in +some respects it represents better the public sentiment than the +Congress of the United States. It responds quickly to a change of +popular opinion. The functions of the crown are now more limited +than those of our President, while the House of Commons can at any +moment put an end to the ministry, and if necessary a new House of +Commons can be convened within a brief period, and a new ministry +be formed or the old one confirmed according to the popular will. +All the governments of Europe are following in the same path, so +that we may fairly hope that in a brief time Europe will become +republican in substance if not in form. + +We returned in the steamer "City of New York," the vessel on which +we went over, and arrived in New York on the 12th of September. +My wife, daughter and myself returned to Washington, improved in +health and strength. + +On the evening of the next day after my arrival a large company, +estimated at 1,500 people, led by the Marine band, marched to my +house. The report given by the "Republican" of Washington the next +morning is substantially correct and is here inserted: + +"To General Grosvenor had been assigned the duty of formally +welcoming the Senator, and he did so in a very pleasant speech. +He spoke of the thirty-five years of faithful service which had +been rendered Ohio by John Sherman, as Representative, Senator, +cabinet officer and citizen; touched upon the eagerness with which +Ohio looked for the Senator's return; referred happily to the +Senator's wife and daughter, and then launched out upon the broad +ocean of Ohio politics. He closed by saying that one of the chief +causes of Ohio Republican exultation on this occasion lay in the +fact that the Senator had returned to do nobly his part toward the +re-election of Governor Foraker and the election of a Republican +Senator to succeed Mr. Payne. + +"The welcome was punctuated with applause, and when the speech and +the uproar had ceased the band played 'Home Again.' The crowd +cheered once more as Senator Sherman stepped forward and commenced +his reply. + +"Appreciation of the welcome which had been extended to him by +friends from Ohio and friends in Washington brightened his opening +remarks, and he said that, although his home was in Ohio, yet he +had been so long a resident of this city that he felt himself almost +entitled to the rights of citizenship here, without, of course, +losing his allegiance to the people of his native state. The joys +of home and the pleasures of foreign lands were dilated upon, and +the Senator said: 'No American can travel anywhere without having +a stronger love and affection for his native land. This is the +feeling of every American, and it is sometimes too strongly and +noisily expressed to be acceptable abroad. We do sometimes carry +the flag too high and flaunt it offensively.' + +"Previous visits to Europe were referred to, and the Senator went +on: 'And now let me say to you that while we boast in America of +the rapid progress we have made in growth, population, wealth and +strength, yet it is equally true that some of the oldest nations +in the world are now keeping pace with us in industry, progress +and even in liberal institutions. Everywhere in these old countries +the spirit of nationalism is growing stronger and stronger. + +'Thirty years ago Italy had at least five different forms of +government; now it is under one rule. Twenty-two years ago France +was an empire, under the almost absolute dominion of Napoleon III; +now it is a republic, with all the forms of republican institutions, +but without the stability of our government. The kingdom of Prussia +has been expanded into the great German empire, among the strongest, +if not the strongest, of the military powers in the world. The +institutions of Great Britain have become liberalized until it is +a monarchy only in name, the queen exercising far less power than +the President of the United States. The whole tendency of events +is to strengthen and at the same time popularize government.' + +"The popularity of Americans in Europe was mentioned, and it was +said of them that while abroad they were not partisans, but patriots; +they believed that any party at home was better than all parties +in foreign lands. The signs of war abroad and of peace in the +United States were sketched, and the veterans who fought for the +Union were eulogized and said to be entitled to the most liberal +treatment. The Republican party, having saved the Union should be +the governing party, and it should be heartily supported by all +true patriots." + +As I concluded, the audience came forward and shook hands with me. +Later addresses were delivered by Thomas B. Coulter, ex-Lieutenant +Governor Wm. C. Lyons, of Ohio, Rev. Wm. Warring, J. H. Smyth and +ex-Speaker Warren J. Keifer. + +Quite a number of callers were received in the house by Mrs. and +Miss Sherman. + +During the balance of the month of September I remained in Washington +engaged in writing letters, dictating interviews, and preparing +for the gubernatorial contest in Ohio, then in active progress. +Governor Foraker was the Republican candidate for re-election, and +James E. Campbell, formerly a Republican and recently a Democratic +Member of Congress, was the opposing candidate. Both of these +gentlemen were lawyers of ability, in the prime of life and living +in adjoining counties. The canvass had become interesting before +my return and I desired to do all I could in aid of Foraker. He +was nominated while I was still in Europe, for the third term, and +under conditions that weakened him somewhat. Still, his ability +as a debater, his popular manners, and his interesting history, +seemed to assure his success. I returned to Ohio with my family +about the 1st of October, and made my first speech in this canvass +at the Wayne county fair, at Orrville, on the 10th. I was introduced +to the audience by M. L. Smyser, the Member of Congress from that +district, in terms too complimentary to quote. He gave notice that +Campbell would speak to them on the next day on behalf of the +Democratic party. In explanation of my appearance there where +politics were generally excluded I said: + +"It is rather unusual at a county fair, where men of all parties +are invited to exhibit and compare their productions, to discuss +party politics. Therefore, I hesitated to accept your invitation +to speak here in behalf of the Republican party; but upon being +advised by my friend, Mr. Smyser, your Representative in Congress, +that the same invitation was extended to Governor Foraker and Mr. +Campbell, the two candidates for governor, that Governor Foraker +could not attend, but Mr. Campbell had accepted, I concluded also +to accept, and am now here to give you the reasons for my political +faith." + +This speech was prepared for the occasion, and was chiefly on the +choice between the Mills tariff bill and the Senate bill, both of +which failed to pass in the preceding Congress. I discussed state +issues briefly, including recent frauds at elections, the alleged +bribery and corruption in the election of Mr. Payne as Senator, +and the importance of nonpartisan boards of election. I closed by +saying: + +"This is not a contest between Governor Foraker and Mr. Campbell. +I have the highest regard for both of these gentlemen. Governor +Foraker is one of the ablest, one of the most brilliant, men in +public life. He was one of the youngest soldiers in the Union +army, and, though young, rendered important services at critical +periods of the war. He has made his own way in the world, and has +filled with distinction every place assigned him. He has made an +efficient governor, and I can see no force in the objection that +he is running for a third term. If he has performed his duties +exceptionally well in the past, it is good reason why he should be +continued in office in the future. I have also the pleasure of a +very kindly acquaintance with Mr. Campbell, whom I regard as a +gentleman of merit and ability. Either of these gentlemen will +perform the personal duties of the office with credit to the state, +but the contest is not between them, but between the two parties +they represent. Governor Foraker represents the principles and +tendencies of the Republican party, its progressive national policy, +the purity of elections, state and national, and its willingness +to take the lead in Ohio in all proper measures to promote good +order, temperance and morality, so far as they can be promoted by +human laws and popular opinion. + +"Mr. Campbell represents the aims and tendencies of the Democratic +party, its jealousy of national authority, its want of genuine +patriotism, its reactionary policy as to tariff laws, its lawless +disregard of fair elections, both north and south, the criminal +gangs that disgrace our cities, and its low tone on all questions +affecting good order and morals. In my view the choice is as plain +as the sunlight of heaven in favor of the Republican party. It +may falter for a time in meeting new questions, it may be disturbed +by passing clouds, and, like all human agents, may yield to expediency +or be tarnished with the corruption and faults of individuals, yet +it is the best organized guide in state and national affairs, and +should, and I confidently trust will, receive the hearty support +of the people of Ohio." + +The reporter, in his description of the meeting, said: + +"Senator Sherman was in excellent form to-day; his voice was clear, +strong and its carrying power excellent. He spoke with uncommon +vigor and, of course, without notes or manuscript. There was +something in his manner that seemed to carry conviction with it. +The people knew they were listening to an honest man who was a +thorough master of every subject upon which he touched. He spoke +as one having authority, and the weight of forty years of sturdy +public life went into his utterances." + +It was about this period that the Ohio ballot box forgery matter +became a subject of discussion. On the 11th of September, Richard +G. Wood appeared in Columbus, and delivered to Foraker the following +paper, and received the governor's recommendation for the smoke +inspectorship in Cincinnati: + + "Washington, D. C., July 2, 1888. +"We, the undersigned, agree to pay the amounts set opposite, or +any part thereof, whenever requested so to do by John R. McLean, +upon 'Contract No. 1,000,' a copy of which is to be given to each +subscriber upon payment of any part of the money hereby subscribed. + +"It is understood that each subscription of five thousand dollars +shall entitle the subscriber thereof to a one-twentieth interest +in said contract. + + 1. J. E. Campbell . . . . . . . . Five Thousand Dollars. + 2. J. E. Campbell . . . . . . . . Five Thousand Dollars. + 3. J. E. Campbell . . . . . . . . Five Thousand Dollars. + 4. Wm. McKinley . . . . . . . . . Five Thousand Dollars. + 5. Justin R. Whiting . . . . . . Five Thousand Dollars. + 6. Justin R. Whiting . . . . . . Five Thousand Dollars. + 7. B. Butterworth . . . . . . . . Five Thousand Dollars. + 8. John Sherman . . . . . . . . . Five Thousand Dollars. + 9. John Sherman . . . . . . . . . Five Thousand Dollars. + 10. S. S. Cox . . . . . . . . . . Five Thousand Dollars. + 11. Wm. C. P. Breckinridge . . . . Five Thousand Dollars. + 12. Wm. McAdoo . . . . . . . . . . Five Thousand Dollars. + 13. John R. McPherson . . . . . . Five Thousand Dollars. + 14. John R. McPherson . . . . . . Five Thousand Dollars. + 15. John R. McPherson . . . . . . Five Thousand Dollars. + 16. F. B. Stockbridge . . . . . . Five Thousand Dollars. + 17. F. B. Stockbridge . . . . . . Five Thousand Dollars. + 18. ................. . . . . . . Five Thousand Dollars. + 19. ................. . . . . . . Five Thousand Dollars. + 20. ................. . . . . . . Five Thousand Dollars. + +The paper referred to in this alleged agreement as "Contract No. +1,000" purported to be a contract for the manufacture and introduction +of the Hall and Wood ballot box, to be used by the United States +government whenever it had the authority to use ballot boxes. The +merit claimed for the box was that it was constructed in such a +manner as to prevent fraudulent voting. This alleged agreement +and contract, taken in connection with a bill introduced July 23, +1888, by Mr. Campbell, in the House of Representatives, "regulating +Federal elections and to promote the purity of the ballot," which +required the purchase by the government of the ballot box mentioned, +would of course, if true, present a clear case of corruption on +the part of the Members of Congress signing the agreement, so grave +as to justify their expulsion. + +A copy of this paper was handed by Governor Foraker to Murat Halstead +on the 28th of September, and on the evening of that day the governor +made a speech at the Music Hall, Cincinnati, in which he referred +to Mr. Campbell having introduced the bill for the purchase of the +ballot box. On the 4th of October, Halstead published in the +"Commercial-Gazette" a fac-simile of the false paper, with the name +of Campbell alone, the names of the other apparent signers not +being given in the fac-simile and nothing being said about them. +On the 8th of October I was informed that it was whispered about +Cincinnati that my name, with many others, was attached to the +paper. I at once telegraphed that if this were so the signature +was a forgery. + +When I spoke at Orrville two days later I did not allude to the +subject, regarding the whole thing as an election canard which +would correct itself. In a brief time this became true. The whole +paper was proven to be a forgery. The alleged signatures were made +on tracing paper, from franks on documents distributed by Congressmen. +All this was done by Wood, or by his procurement, in order to get +an office through Governor Foraker. Halstead, on the 11th of +October, published in his paper, over his own name, a statement +that Mr. Campbell's signature was fraudulent, no mention being made +of the other alleged signers of the paper. Subsequently, on the +10th of November, after the election, Foraker wrote a letter to +Halstead giving a narrative of the mode by which he was misled into +believing the paper to be genuine. + +It has always seemed strange to me that Foraker, having in his +possession a paper which implicated Butterworth, McKinley and +myself, in what all men would regard as a dishonorable transaction, +did not inform us and give us an opportunity to deny, affirm or +explain our alleged signatures. An inquiry from him to either of +the persons named would have led to an explanation at once. No +doubt Foraker believed the signatures genuine, but that should not +have deterred him from making the inquiry. + +On the 12th of November, I wrote the following letter to Halstead: + + "Senate Chamber, } + "Washington, November 12, 1889.} +"My Dear Sir:--Now that the election is over, I wish to impress +upon you the importance of making public the whole history of the +'forged paper' about ballot boxes. + +"While you believed in the genuineness of Campbell's signature you +were entirely right in exposing him and the signers of the paper, +for if it was genuine it was a corrupt and illegal transaction. +I only wonder that seeing the names upon it did not excite your +doubt and cause inquiry, but, assuming they were genuine, you had +no right to suppress the paper because it involved your friends in +a criminal charge. But now, since it is shown to be a forgery, a +crime of the greatest character, it seems to me you ought at once +to exercise your well-known energy and independence in exposing +and denouncing, with equal severity, the man or men who forged, or +circulated, or had anything to do with, the paper referred to. No +delicacy or pity ought to shield them from the consequences of a +crime infinitely greater than the signing of such a paper would +have been. I know in this I speak the general sentiment of many +prominent men, and you will appreciate the feeling of honor and +fairness which appeals to you to denounce the men who, directly or +indirectly, were connected with the fabrication of this paper. If +my name was forged to it I will consider it my duty to prosecute +all men who took that liberty. I will certainly do so whenever I +have tangible evidence that my name was forged. + + "Very truly yours, + "John Sherman." + +A fac-simile of the paper was then published with all the alleged +signatures. The subject-matter was fully investigated by a committee +of the House of Representatives, during which all the persons named +in connection with it were examined under oath. It resulted in +the unanimous finding of the committee as follows: + +"In response to the first inquiry directed by the resolution, viz.: + +'By whom said alleged contract was prepared, and whether the several +signatures appended thereto are forged or genuine,' + +"We find that said alleged contract was dictated (prepared) by +Richard G. Wood, and that all the signatures thereto are forged. + +"In response to the second inquiry directed by the resolution, viz.: + +'If forged, what person or persons, if any, were directly or +indirectly aiding, abetting, assisting, or knowingly consenting to +the preparation and uttering of said forgery, and for what purpose,' + +"We find that Richard G. Wood, Frank and L. Milward, and Frank S. +Davis were the only persons directly or indirectly aiding, abetting, +assisting, or knowingly consenting to the preparation of said +forgery with knowledge of its character. + +"We further find that J. B. Foraker and Murat Halstead aided in +uttering said forgery, Mr. Foraker by exhibiting the paper to +several persons and thereafter delivering it to Mr. Halstead, and +Mr. Halstead aided in uttering said forgery by publishing the forged +paper on October 4, 1889, in the Cincinnati 'Commercial Gazette;' +but we find that neither of said parties, Foraker and Halstead, in +uttering said paper, knew the same was a forgery. + +"In response to the third inquiry directed by the resolution, viz.: + +'Whether any of the Members whose names appeared on said alleged +contract had or have, either directly or indirectly, any unlawful, +corrupt or improper connection with, or interest in, the ballot +boxes which are the subject-matter of said alleged contract.' + +"We find that no one of the persons whose names appear on said +alleged contract had or has, either directly or indirectly, any +unlawful, corrupt, or improper, or any other connection with, or +interest in, the ballot boxes which are said to be the subject of +said alleged contract, and that there never was any other contract +relating to said ballot boxes in which either of these persons, +alone or jointly with others, was in any way interested." + +William E. Mason, chairman of the committee, added to the report +quoted the following just and true statement, which relieved Foraker +and Halstead from the implication stated in the report: + +"If our unanimous finding is correct that Messrs. Halstead and +Foraker did not know the paper was forged when the uttered it, then +they were deceived by some one, for we have found it was a forgery. +Being deceived, then, is their only offense. + +"They each have made reputation and character equal perhaps to any +of the gentlemen who were outraged by the forgery. Since they +found they were deceived, they have done all in their power, as +honorable men, to make amends. To ask more seems to me to be most +unjust, and, believing as I do that the evidence does not warrant +the censure indulged in by my associates on the committee in their +above additional findings, I most respectfully, but most earnestly, +protest." + +This unfortunate incident, not fully explained before the election, +created sympathy for Campbell and naturally displeased friends of +McKinley, Butterworth and myself. I did not feel the least resentment +after Halstead denounced the forgery, but entered with increased +energy into the canvass. During this period I had promised to +attend, on the 15th of October, a banquet given by the citizens of +Cleveland to the delegates to the Pan-American Congress, then making +a progress through the United States, to be presided over by my +colleague, Senator Payne. As this speech is outside of the line +of my usual topics, the toast being "The Congress of American +States," and yet relates to a subject of vital importance, I +introduce it as reported in the Cleveland "Leader:" + +"Mr. Chairman and Gentlemen:--The toast you ask me to respond to +is the expression of a hope indulged in by many of the ablest +statesmen of the United States ever since our sister American states +dissolved their political connections with European powers. Henry +Clay, as early as 1818, when proposing to acknowledge the independence +of the South American states, eloquently depicted the mutual +advantage of closer commercial relations with those states. Mr. +Monroe proclaimed to the world the determination of the United +States not to suffer any European power to interfere with the +internal concerns of independent American states. Still no effective +measures were adopted to promote intercourse between them. The +hope of closer union has not been realized, mainly because of the +neglect of the government of the United States. We have been too +much engaged in political disputes and in the development of our +own resources. Then we have had a serious unpleasantness among +ourselves, which, if it had terminated differently, would have made +us very unacceptable partners. But, now, all this is past and +gone, and I can give assurance to our guests that not only the +government of the United States, but the people of the United +States, all parties and of every section, have united heartily in +inviting you here, that they will do their full share in carrying +out your recommendations, and sincerely hope that your conference +will lead to a congress of American nations. + +"I look upon this conference as having the same relation to the +future of America as the conference of the thirteen British colonies, +in 1774, had to the declaration of American independence. That +conference led to the constitution of the United States and was +the beginning of the independence of all the American states. Your +conference is of infinitely greater importance, for your deliberations +affect the interests of more than one hundred million people, while +theirs only affected three million. But, more important still, +your conference contemplates only peaceful aids for mutual benefit; +theirs provided for war and a desperate struggle with superior +forces. + +"I do not recall, in the annals of man, a meeting of the selected +representatives of any nations with nobler aims or with greater +opportunity for good than this conference of American states. You +seek to prevent war by peaceful negotiations and arbitration; you +seek to promote intercourse with each other by land and by sea; +you seek, as far as the wants and interests of each nation will +permit, to remove unnecessary restrictions to trade and commerce; +you seek to bring into closer union sixteen republics and one +empire, all of them governed by free institutions. You do not +unite to conquer, but to help each other in developing your resources +and in exchanging your productions. + +"If your conference deals wisely with your opportunity you will +light a torch that will illuminate the world. You will disband +armies, you will convert ships of war into useful agencies of +commerce; you will secure the construction of a continuous line of +railways from New York to Buenos Ayres, with connections to the +capital city of every American country; you will contribute to the +construction of the Nicaraguan Canal and all other feasible methods +of transportation between the Atlantic and Pacific; you will unite +in a generous rivalry of growth and progress all the American +states. And, more important than all, you will pave the way for +a congress in which all these states will be represented in a +greater than an Amphictyonic council, with broader jurisdiction +and scope than the rulers of ancient Greece conceived of. + +"Is this to be only a dream? I do not think so. The American +states are now more closely united in interest than any other part +of the world. Our institutions are similar. We nourish no old- +time feuds to separate us. Our productions do not compete with, +but supplement, each other. Their direct exchange in American +vessels is the natural course of trade. The diversity of language +is less marked than in any other continent. The sentiment is +universal in America that America belongs to Americans, that no +European power should vex us with its policy or its wars; that all +parts of America have been discovered and are not open to further +discovery; each country belongs to the people who occupy it, with +the clear and unquestioned right of home rule. Such, at least, is +the feeling in the United States. + +"And now, looking back with pride over a century of growth, exhibiting +to you, as we are doing by a rather tiresome journey, what we have +done, and appreciating fully the rapid progress and enormous +resources of our sister American states, recognizing your equality +and absolute independence, whatever may be your population or extent +of territory, we say to you, in all frankness, that we are ready +and willing to join you in an American congress devoted exclusively +to the maintenance of peace, the increase of commerce, and the +protection and welfare of each and all the states of the American +continents." + +On the 19th of October I addressed a great audience in Music Hall, +Cincinnati, at which Butterworth and Grosvenor also made speeches. +In this speech I especially urged the election of Governor Foraker +and answered the cry against him for running for a third term. I +said: + +"Now, you have a good ticket, as I said, from top to bottom. I +need not add anything more with respect to Governor Foraker, who, +I believe, ought to be elected, not only because he has been a good +soldier, but because he has been a good governor. Nor do I fear +that cry about a third term. How should I fear it, when I am an +example of a man serving on the fifth term of six years each? If +Foraker has done his duty well for two terms, it is a good reason +why he would do better the next time. If he made any mistakes in +the past, he will have a chance to correct them in the future, and +I believe he will do so if he has made any; and I don't believe he +has." + +On the 24th of October I was to address a meeting in Columbus, and +hearing that Governor Foraker was sick, at his residence, I called +upon him, and we had a free and friendly conversation. I did not +introduce the subject of the ballot box forgery, but assured him +that I was doing, and intended to do, all I could to promote his +election. He thanked me heartily, expressed his regret that he +was unable to take part in the canvass, but hoped to do so before +its close. At one of the largest indoor meetings ever held in +Columbus, that evening, I especially urged the importance of Governor +Foraker's election, and ridiculed, to the best of my ability, the +cry that was made for a third term. I called attention to the fact +that all that could be said against Governor Foraker was that he +was running for a third term. Continuing, I said: + +"Why for a third term? Because he did so well in both his previous +terms that the Republican party of Ohio was willing to sanction +him as its candidate for a third term--and intend to elect him. +Why should not a man be nominated by the Republicans for a third +term as Governor of Ohio? What is there in the office that prevents +his full and free and complete performance of all the duties imposed +upon him as Governor of Ohio? Why, they say the President, by a +prescriptive rule that has been established since the time of +Washington, cannot be nominated for a third term. What of that? +The powers of the Governor of Ohio and the President of the United +States are as different as a and z, and are as wide apart as heaven +and earth. The President of the United States is armed with more +power during his four years than any prince or potentate of Europe; +he exercises a power greater than any man in any country of the +world, whether a monarchy or empire. But is there any similitude +between the Governor of Ohio and the President of the United States? +What power has he? The Governor of Ohio has less power than almost +any other governor of the United States." + +I spoke on the 2nd of November in the Music Hall at Cleveland, and +there again urged the election of Foraker. I give a short extract +of the description of the speech as it appeared in the papers of +that city: + +"He ridiculed the third term scare of the Democracy and then paid +a glowing tribute to the worth and integrity of Governor Foraker. +'Has any man said,' he asked, 'that Governor Foraker is a bad man; +that he is not a good man? My countrymen, no one has said that. +He was a brave soldier. He is a self-made man; the son of good, +plain people. He is self-educated. By integrity and toil he +mounted, step by step, on the ladder of fame. Nearly every man +who has arisen to prominence in our country has arisen from the +ranks by toil. Such a man is Governor Foraker.'" + +I spoke daily during the last two weeks of the canvass and everywhere +made the same appeal in behalf of Governor Foraker and the state +ticket. The result of the election was that Campbell received a +plurality of 10,872 votes and was elected. A majority of the +legislature was Democratic, and subsequently elected Calvin S. +Brice United States Senator. + +Elbert L. Lampson, the Republican candidate for lieutenant governor, +was elected by a plurality of 22. The other candidates on the +Republican state ticket were elected by an average plurality of +about 3,000. + + +CHAPTER LVII. +HISTORY OF THE "SHERMAN SILVER LAW." +President Harrison's First Annual Message--His Recommendations +Regarding the Coinage of Silver and Tariff Revisions--Bill Authorizing +the Purchase of $4,500,000 Worth of Silver Bullion Each Month-- +Senator Plumb's "Free Silver" Amendment to the House Bill--Substitute +Finally Agreed Upon in Conference--Since Known as the "Sherman +Silver Law"--How It Came to Be so Called--Chief Merit of the Law-- +Steady Decline of Silver After the Passage of the Act--Bill Against +Trusts and Combinations--Amendments in Committee--The Bill as Passed +--Evils of Unlawful Combinations--Death of Representative Wm. D. +Kelley and Ex-Member S. S. Cox--Sketch of the Latter--My Views +Regarding Immigration and Alien Contract Labor--McKinley Tariff +Law--What a Tariff Is--Death of George H. Pendleton--Republican +Success in Ohio--Second Session of the 51st Congress--Failure of +Senator Stewart's "Free Coinage Bill." + +The first session of the 51st Congress convened on the 2nd of +December, 1889, both branches being Republican. President Harrison, +in his message, reported a very favorable condition of the national +finances. The aggregate receipts from all sources, for the fiscal +year ending June 30, 1889, were $387,050,058. The total expenditures, +including the sinking fund for that year, were $329,579,929. The +excess of receipts over expenditures was $57,470,129. The estimated +surplus for the current year was $43,678,883. This would justify, +and the President recommended, a reduction of taxation to that +amount. He called attention to the reduction of the circulation +of national banks amounting to $114,109,729, and the large increase +of gold and silver coin in circulation and of the issues of gold +and silver certificates. The law then in force required the purchase +of two million dollars worth of silver bullion each month, to be +coined into silver dollars of 412˝ grains of standard silver nine- +tenths fine. When this law was enacted, on the 28th of February, +1878, the price of silver in the market was $1.20 per ounce. Since +that time to the date of his message the price had fallen to 70.6 +cents an ounce. He expressed a fear of a further reduction of the +value of silver, and that it would cause a difference in the value +of the gold and silver dollars in commercial transactions. He +called the attention of Congress to these three subjects of national +importance--the reduction of taxation, the circulation of the +national banks, and the further issue of silver coin and silver +certificates, and invoked for them the considerate action of +Congress. + +He recommended the revision of the tariff law in such a way as not +to impair the just and reasonable protection of our home industries, +the free list to be extended to such domestic productions as our +home industries did not supply. He referred approvingly to a plan +for the increased use of silver, which would be presented by +Secretary Windom. + +The plan, submitted by Secretary Windom in his report, for increasing +the use of silver in the circulation, provided that the treasury +department should purchase silver bullion every month to a limited +extent, paying therefor treasury notes receivable for government +dues and payable on demand in gold, or in silver bullion at the +current market rate at the time of payment, and that the purchase +of silver bullion and the compulsory coinage of silver dollars +under the act of 1878 should cease. + +On the 28th of January, 1890, Senator Morrill introduced, by request, +a bill which had been prepared by, and embodied the views of the +Secretary of the Treasury. This bill was referred to the committee +on finance, and was reported back by Senator Jones, of Nevada, +February 25, with amendments. The first section of the amended +bill authorized the Secretary of the Treasury to purchase $4,500,000 +worth of silver bullion each month, and to issue in payment therefor +treasury notes receivable for customs and all public dues, and when +so received they might be reissued. They were also redeemable on +demand in lawful money of the United States, and when so redeemed +should be canceled. Such portion of the silver was to be coined +as might be necessary to meet the redemptions authorized. Other +sections provided for details by which the plan was to be effected. + +To this bill I proposed an additional section authorizing the +deposits of legal tender notes by national banks with the United +States treasurer, to meet the redemption of the notes of such banks +which had failed, gone into liquidation, or were reducing their +circulation, to be covered into the treasury to the credit of an +appropriation from which the money could be withdrawn as necessary +to meet the payments of the notes for which the deposits had been +made. The deposits of this character often exceeded $50,000,000, +but under the plan proposed the money became immediately available +in current disbursements, thus avoiding a hoarding of the notes in +the treasury or the creating of a stringency in the circulation, +and, at the same time, giving the government the use of the deposits +until needed, by which the issue of bonds to a considerable extent +would be avoided. This arrangement was accepted and eventually +became section 6 of the law which is now in satisfactory operation. + +In the progress of the debate on this bill every question connected +with the financial operations of the government for twenty years +was introduced and made the subject of debate, and especially the +coinage act of 1873, and the dropping of the old silver dollar from +coinage. Although this coin has been restored by the act of 1878, +and hundreds of millions of such dollars had been coined, yet the +Senators from the silver producing states, and especially Stewart, +were continually harping on "the crime of 1873," as they called +the coinage act of that year, a careful statement of which has +already been made in these volumes. + +The only new allegation made was that the amendment recommended by +the Senate committee on finance, to strike out the franc dollar of +384 grains, provided for in the bill as it came from the House, +and insert the trade dollar, was not agreed to in the Senate, but +that the change was made in committee of conference, and passed +without the knowledge of the Senate. A conclusive answer was made +to this statement by the production, from the files of the secretary's +office, of the original bill as it stood after its passage in the +Senate and before it was sent to conference. As similar statements +have been frequently made, I reproduce the portion of this original +bill showing the section in question, with the printer's note +accompanying the bill explaining the different type used in printing +it. The word "AGREED" on the bill is in the handwriting of the +journal clerk of the Senate, Mr. McDonald, who held that position +many years until his death. It shows that the Senate adopted the +recommendation of the committee on finance before the bill was sent +to conference. This amendment was agreed to by the House conferees. + +[Note in explanation of the bill (H. R. 2934).] +1. The body of the bill, printed in brevier, is as it came from +the House. +2. Amendments to insert, reported by the Committee on Finance, +are in _italics_. +3. Amendments to strike out, reported by the Committee on Finance, +are in [brackets]. +4. Amendments made by the Senate striking out words are in brevier, +with brackets, and the words inserted in lieu thereof in the +handwriting of the Clerk, are in SMALL CAPS. + +IN THE SENATE OF THE UNITED STATES. +May 29, 1872. +Read twice and referred to the Committee on Finance. +December 16, 1872. +Reported by Mr. Sherman with amendments, viz.: Strike out the +parts in [brackets] and insert the parts printed in _italics_. +January 7, 1873. +Mr. Sherman, from the Committee on Finance, reported additional +amendments, which were ordered to be printed with the bill. + +AN ACT +Revising and amending the laws relative to the mints, assay-offices, +and coinage of the United States. +1 _Be it enacted by the Senate and House of Representatives of the +2 United States of America in Congress assembled_, +1 Sec. [16] 15. [That the silver coins of the United States shall + be +2 a dollar, a half-dollar or fifty-cent piece, a quarter-dollar + or twenty- +3 five-cent piece, and a dime or ten-cent piece; and the weight + of the +4 dollar shall be three hundred and eighty-four grains; the half- + dol +5 lar, quarter-dollar, and the dime shall be, respectively, one- + half, +6 one-quarter, and one-tenth the weight of said dollar; which coins +7 shall be a legal tender, at their nominal value, for any amount + not +8 exceeding five dollars in any one payment.] _That the silver + coins +9 of the United States shall be a trade-dollar, a half-dollar or + fifty- +AGREED A DIME OR TEN-CENT PIECE +10 cent piece, a quarter-dollar or twenty-five-cent piece ^; and the +11 weight of the trade-dollar shall be four hundred and twenty + grains +12 troy; the weight of the half-dollar shall be twelve grams and + one- +13 half of a gram; the quarter-dollar and the dime shall be, respec- +14 tively, one-half and one-fifth of the weight of said half-dollar; +15 and said coins shall be a legal tender at their nominal value for +16 any amount not exceeding five dollars in any one payment_. +AGREED + +On the 5th of June I made a speech covering not only the pending +bill, and the cognate questions involved, but all the irrelative +topics introduced by other Senators. I said: + +"I approach the discussion of this bill, and the kindred bills and +amendments pending in the two Houses, with unaffected diffidence. +No problem is submitted to us of equal importance and difficulty. +Our action will affect the value of all property of the people of +the United States, and the wages of labor of every kind, and our +trade and commerce with all the world. In the consideration of +such a question we should not be controlled by previous opinions +or bound by local interests, but, with the lights of experience +and full knowledge of all the complicated facts involved, we should +give to the subject the best judgment which imperfect human nature +allows. With the wide diversity of opinion that prevails, each of +us must make concessions in order to secure such a measure as will +accomplish the objects sought for without impairing the public +credit or the general interests of our people. This is no time +for visionary theories of political economy. We must deal with +facts as we find them and not as we wish them. We must aim at +results based upon practical experience, for what has been probably +will be. The best prophet of the future is the past. + +"To know what measures ought to be adopted we should have a clear +conception of what we wish to accomplish. I believe a majority of +the Senate desire, first, to provide an increase of money to meet +the increasing wants of our rapidly growing country and population, +and to supply the reduction in our circulation caused by the retiring +of national bank notes; second, to increase the market value of +silver, not only in the United States, but in the world, in the +belief that this is essential to the success of any measure proposed, +and in the hope that our efforts will advance silver to its legal +ratio with gold, and induce the great commercial nations to join +with us in maintaining the legal parity of the two metals, or in +agreeing with us in a new ratio of their relative value; and, third, +to secure a genuine bimetallic standard, one that will not demonetize +gold or cause it to be hoarded or exported, but that will establish +both gold and silver as standards of value, not only in the United +States, but among all the civilized nations of the world. + +"Believing that these are the chief objects aimed at by us all, +and that we differ only as to the best means to obtain them, I will +discuss the pending propositions to test how far they tend, in my +opinion, to promote or defeat these objects." + +Those of us who were in favor of good money, whether of gold or +silver, or whether issued by the government in the form of notes +or currency by the national banks, all to be maintained at par with +each other and of equal purchasing power, were constantly charged +with reducing the volume of money. I showed that since the resumption +of specie payments, January 1, 1879, there had been a constant +annual increase in the total circulating medium of the country. +I furnished a table showing the steady increase of circulation +during the period named, which I here insert: + +THE AMOUNT AND KINDS OF MONEY IN ACTUAL CIRCULATION ON CERTAIN +DATES FROM 1878 TO 1889. + +Year. Date. Total circula- Gold coin. Standard sil- Subsidiary + tion. ver dollars. silver. +1878. March 1. $805,793,807 $82,530,163 ........... $53,573,833 +1879. October 1. 862,579,754 123,698,157 $11,074,230 54,088,747 +1880. October 1. 1,022,033,685 261,320,920 22,914,075 48,368,543 +1881. October 1. 1,147,892,435 328,118,146 32,230,038 47,859,327 +1882. October 1. 1,188,752,363 358,351,956 33,801,231 47,153,750 +1883. October 1. 1,236,650,032 346,077,784 39,783,527 48,170,263 +1884. October 1. 1,261,569,924 341,485,840 40,322,042 45,344,717 +1885. October 1. 1,286,630,871 348,268,740 45,275,710 51,328,206 +1886. October 1. 1,264,889,561 364,894,599 60,170,793 48,176,838 +1887. October 1. 1,353,485,690 391,090,890 60,614,524 50,414,706 +1887. October 1. 1,384,340,280 377,329,865 57,959,356 52,020,975 +1888. October 1. 1,405,018,000 375,947,715 57,554,100 52,931,352 + +Year. Date. Gold certifi- Silver cer- United States National + cates. tificates. Notes.* bank notes. +1878. March 1. $44,364,100 ........... $311,436,971 $313,888,740 +1879. October 1. 14,843,200 $ 1,176,720 327,747,762 362,950,938 +1880. October 1. 7,480,100 12,203,191 329,417,403 340,329,453 +1881. October 1. 5,239,320 52,590,180 327,655,884 354,199,540 +1882. October 1. 4,907,440 63,204,780 325,272,858 356,060,348 +1883. October 1. 55,014,940 78,921,961 321,356,596 347,324,961 +1884. October 1. 87,389,660 96,491,251 325,786,143 324,750,271 +1885. October 1. 118,137,790 93,656,716 318,736,684 311,227,025 +1886. October 1. 84,691,807 95,387,112 310,161,935 301,406,477 +1887. October 1. 97,984,683 154,354,826 329,070,804 269,955,257 +1887. October 1. 134,838,190 218,561,601 306,052,053 237,578,240 +1888. October 1. 116,675,349 276,619,715 325,510,758 199,779,011 + +*Includes outstanding clearing house certificates of the act of +June 8, 1872. + +Meanwhile, the House passed a bill of like import to the one under +consideration in the Senate, differing therefrom mainly in that it +made the notes to be issued a full legal tender, and authorized +the Secretary of the Treasury to redeem them in gold coin or silver +bullion at current market rate. When this bill reached the Senate +it was, by unanimous consent, accepted as a substitute for the +Senate bill, and the discussion of the measure continued, occupying +much of the time and attention of the Senate until June 17, 1890, +when a vote was taken on an amendment proposed by Senator Plumb to +strike out the first section authorizing the issue of notes and +inserting the following: + +"That from and after the date of the passage of this act, the unit +of value in the United States shall be the dollar, and the same may +be coined of 412˝ grains of standard silver, or of 25.8 grains of +standard gold, and the said coins shall be legal tender for all +debts, public and private. + +"That hereafter any owner of silver or gold bullion may deposit +the same in any mint of the United States, to be formed into standard +dollars, or bars, for his benefit, and without charge, but it shall +be lawful to refuse any deposit of less value than $100, or any +bullion so base as to be unsuitable for the operations of the mint." + +This amendment was adopted by a vote of 43 to 24, the yeas being +made up of Democrats and the Republicans from the silver producing +states. + +The adoption of this free silver amendment clearly indicated that +a large majority of the Senate favored the free coinage of silver +at the ratio of sixteen to one. + +The other sections of the bill were then made to harmonize with +this new provision, and the bill was passed and returned to the +House, where the amendments were nonconcurred in, and a conference +asked for. + +The Senate granted this request, and Senators Sherman, Jones, of +Nevada, and Harris were appointed to meet Representatives Conger, +Walker, and Bland, of the House, in conference, to adjust the wide +disagreements. On July 7 a bill agreed upon in conference was +reported to the Senate, Messrs. Harris and Bland not joining in +the report. The bill agreed to became a law July 12, 1890, and +was as follows: + +"That the Secretary of the Treasury is hereby directed to purchase, +from time to time, silver bullion to the aggregate amount of +4,500,000 ounces, or as much thereof as may be offered in each +month, at the market price thereof, not exceeding one dollar for +371.25 grains of pure silver, and to issue, in payment for such +purchases of silver bullion, treasury notes of the United States +to be prepared by the Secretary of the Treasury, in such form and +of such denominations, not less than one dollar nor more than +$1,000, as he may prescribe, and a sum sufficient to carry into +effect the provisions of this act is hereby appropriated out of +any money in the treasury not otherwise appropriated. + +"Sec. 2. That the treasury notes issued in accordance with the +provisions of this act shall be redeemable on demand, in coin, at +the treasury of the United States or at the office of any assistant +treasurer of the United States, and when so redeemed may be reissued; +but no greater or less amount of such notes shall be outstanding +at any time than the cost of the silver bullion, and the standard +silver dollars coined therefrom, then held in the treasury, purchased +by such notes; and such treasury notes shall be a legal tender in +payment of all debts, public and private, except where otherwise +expressly stipulated in the contract, and shall be receivable for +customs, taxes, and all public dues, and when so received may be +reissued; and such notes, when held by any national banking +association, may be counted as a part of its lawful reserve. That, +upon demand of the holder of any of the treasury notes herein +provided for, the Secretary of the Treasury shall, under such +regulations as he may prescribe, redeem such notes in gold or silver +coin, at his discretion, it being the established policy of the +United States to maintain the two metals on a parity with each +other upon the present legal ratio, or such ratio as may be provided +by law. + +"Sec. 3. That the Secretary of the Treasury shall each month coin +2,000,000 ounces of the silver bullion purchased under the provisions +of this act into standard silver dollars until the 1st day of July, +1891, and after that time he shall coin of the silver bullion +purchased under the provisions of this act as much as may be +necessary to provide for the redemption of the treasury notes herein +provided for, and any gain or seigniorage arising from such coinage +shall be accounted for and paid into the treasury. + +"Sec. 4. That the silver bullion purchased under the provisions +of this act shall be subject to the requirements of existing law +and the regulations of the mint service governing the methods of +determining the amount of pure silver contained, and the amount of +charges or deductions, if any, to be made. + +"Sec. 5. That so much of the act of February 28, 1878, entitled +'An act to authorize the coinage of the standard silver dollar and +to restore its legal tender character,' as requires the monthly +purchase and coinage of the same into silver dollars of not less +than $2,000,000 nor more than $4,000,000 worth of silver bullion, +is hereby repealed. + +"Sec. 6. That upon the passage of this act the balances standing +with the treasurer of the United States to the respective credits +of national banks, for deposits made to redeem the circulating +notes of such banks, and all deposits thereafter received for like +purpose, shall be converted into the treasury as a miscellaneous +receipt, and the treasurer of the United States shall redeem, from +the general cash in the treasury, the circulating notes of said +banks which may come into his possession subject to redemption; +and upon the certificate of the comptroller of the currency that +such notes have been received by him, and that they have been +destroyed and that no new notes will be issued in their place, +reimbursement of their amount shall be made to the treasurer, under +such regulations as the Secretary of the Treasury may prescribe, +from an appropriation hereby created, to be known as 'National bank +notes: Redemption account,' but the provisions of this act shall +not apply to the deposits received under section 3 of the act of +June 20, 1874, requiring every national bank to keep in lawful +money, with the treasurer of the United States, a sum equal to five +per cent. of its circulation, to be held and used for the redemption +of its circulating notes; and the balance remaining of the deposit +so covered shall, at the close of each month, be reported on the +monthly public debt statement as debt of the United States bearing +no interest. + +"Sec. 7. That this act shall take effect thirty days from and +after its passage." + +The authorship of this law has been generally credited to me, and +it was commonly called the "Sherman silver law," though I took but +little part in framing the legislation until the bill got into +conference. The situation at that time was critical. A large +majority of the Senate favored free silver, and it was feared that +the small majority against it in the other House might yield and +agree to it. The silence of the President on the matter gave rise +to an apprehension that if a free coinage bill should pass both +Houses he would not feel at liberty to veto it. Some action had +to be taken to prevent a return to free silver coinage, and the +measure evolved was the best obtainable. I voted for it, but the +day it became a law I was ready to repeal it, if repeal could be +had without substituting in its place absolute free coinage. + +It will be noticed that the act varied greatly from the House bill +before the free coinage amendment was attached. The amount of +silver bullion to be purchased was changed from $4,500,000 worth +per month to 4,500,000 ounces per month. This change, owing to +the fall in price of silver, not then anticipated, greatly reduced +the quantity to be purchased. The House conferees yielded reluctantly +to the striking out of the section in the bill providing for the +redemption of the notes in bullion, a plan that had been urged by +Secretary Windom. In lieu thereof, however, a clause declaring +that it was the purpose of the government to maintain the parity +of the metals was inserted. This was a most important amendment +and one that has been generally accepted as indicating the purpose +of the country to maintain all dollars at par with each other. + +The chief merit of this law was that it suspended the peremptory +coinage of the silver purchased under it into silver dollars which +could not be circulated, but were hoarded in the treasury at great +cost and inconvenience. It required the monthly purchase of a +greater amount of silver than before, but that could be held in +the form of bullion, and could be paid for by treasury notes equal +in amount to the cost of the bullion, the whole of which was held +in the treasury as security for the payment of the notes. If silver +bullion did not decline in market value it could, if necessary, be +coined without loss, and thus the parity of the notes with gold +could be readily maintained according to the declared policy of +the law. The friends of free coinage stoutly asserted that this +purchase of silver bullion would not only prevent its depreciation, +but would advance its market value, and thus be a gain to the +government. I did not believe this but hoped that it would not +decline in value, and, in any event, it was better to stop the +compulsory coinage of the bullion into dollars, as to force them +into circulation would reduce the purchasing power of the dollar +and bring the United States to the single standard of silver. +Being compelled to choose between the measure proposed and the free +coinage of silver I preferred the former, and voted for the bill +and, thus, with others, became responsible for it. + +Contrary to the expectation of the friends of silver it steadily +declined in market value. The compulsory purchase of the enormous +aggregate of fifty-four million ounces, or 2,250 tons Troy, each +year, did not maintain the market value of silver, but it steadily +declined so that the silver purchased each year entailed an annual +loss of more than $10,000,000. + +When the result became apparent I was anxious to arrest the purchase +of silver, and I never could comprehend why anyone not directly +interested in the mining of silver could favor a policy involving +so heavy a loss to the people of the United States. Long before +the second election of Mr. Cleveland I advocated the repeal of what +became known as the "Sherman act," and heartily supported and voted +for the repeal he recommended. + +In the previous Congress I had introduced a bill "to declare +unlawful, trusts and combinations in restraint of trade and +production," but no action was taken upon it. On the 4th of December +I again introduced this bill, it being the first Senate bill +introduced in that Congress. It was referred to the committee on +finance, and, having been reported back with amendments, I called +it up on the 27th of February, and said that I did not intend to +make any extended remarks upon it unless it should become necessary +to do so. Senator George made a long and carefully prepared speech, +from which it appeared that while he favored the general purpose +of the bill he objected to it on the ground that it was not +constitutional. This objection was shared by several Senators. +I subsequently reported from the committee on finance a substitute +for the bill, and on the 21st of March made a long speech in support +of it in which I said: + +"I did not originally intend to make any extended argument on the +trust bill, because I supposed that the public facts upon which it +is founded and the general necessity of some legislation were so +manifest that no debate was necessary to bring those facts to the +attention of the Senate. + +"But the different views taken by Senators in regard to the legal +questions involved in this bill, and the very able speech made by +the Senator from Mississippi [Mr. George] relative to the details +of the bill, led me to the conclusion that it was my duty, having +reported the bill from the committee on finance, to present, in as +clear and logical a way as I can, the legal and practical questions +involved in the bill. + +"The object of the bill, as shown by the title, is 'to declare +unlawful, trusts and combinations in restraint of trade and +production.' It declares that certain contracts are against public +policy, null and void. It does not announce a new principle of +law, but applies old and well-recognized principles of the common +law to the complicated jurisdiction of our state and federal +government. Similar contracts in any state in the Union are now, +by common or statute law, null and void. Each state can and does +prevent and control combinations within the limit of the state. +This we do not propose to interfere with. The power of the state +courts has been repeatedly exercised to set aside such combinations +as I shall hereafter show, but these courts are limited in their +jurisdiction to the state, and, in our complex system of government, +are admitted to be unable to deal with the great evil that now +threatens us. + +"Unlawful combinations, unlawful at common law, now extend to all +the states and interfere with our foreign and domestic commerce +and with the importation and sale of goods subject to duty under +the laws of the United States, against which only the general +government can secure relief. They not only affect our commerce +with foreign nations, but trade and transportation among the several +states. The purpose of this bill is to enable the courts of the +United States to apply the same remedies against combinations which +injuriously affect the interests of the United States that have +been applied in the several states to protect local interests. + +* * * * * + +"This bill, as I would have it, has for its single object to invoke +the aid of the courts of the United States to deal with the +combinations described in the first section, when they affect +injuriously our foreign and interstate commerce and our revenue +laws, and in this way to supplement the enforcement of the established +rules of the common and statute law by the courts of the several +states in dealing with combinations that affect injuriously the +industrial liberty of the citizens of these states. It is to arm +the federal courts within the limits of their constitutional power, +that they may co-operate with the state courts in checking, curbing, +and controlling the most dangerous combinations that now threaten +the business, property, and trade of the people of the United +States. And for one I do not intend to be turned from this course +by finespun constitutional quibbles or by the plausible pretexts +of associated or corporate wealth and power. + +"It is said that this bill will interfere with lawful trade, with +the customary business of life. I deny it. It aims only at unlawful +combinations. It does not in the least affect combinations in aid +of production where there is free and fair competition. It is the +right of every man to work, labor, and produce in any lawful +vocation, and to transport his production on equal terms and +conditions and under like circumstances. This is industrial liberty, +and lies at the foundation of the equality of all rights and +privileges." + +I then recited the history of such legislation in England, from +the period of Coke and Littleton to the present times. I also +quoted numerous decisions in the courts of the several states, and +explained the necessity of conferring upon the courts of the United +States jurisdiction of trusts and combinations extending over many +states. + +Various amendments were offered, and a long debate followed, until, +on the 25th of March, Mr. George moved to refer the whole subject +to the committee on the judiciary. I opposed this motion on the +ground that such a reference would cause delay and perhaps defeat +all action upon the bill. I stated that I desired a vote upon it, +corrected and changed as the Senate deemed proper. The motion was +defeated by the vote of yeas 18, nays 28. Subsequently, however, +the bill was referred to the committee on the judiciary, with +instructions to report within twenty days. On the 2nd of April +Mr. Edmunds, chairman of that committee, reported a substitute for +the bill, and stated that, while it did not entirely meet his views, +he was willing to support it. Mr. Vest, Mr. George and Mr. Coke, +members of the committee, also made statements to the same effect. +When the bill was taken up on the 8th of April I said I did not +intend to open any debate on the subject, but would state that +after having fairly and fully considered the substitute proposed +by the committee on the judiciary, I would vote for it, not as +being precisely what I wanted, but as the best thing, under all +the circumstances, that the Senate was prepared to give in that +direction. The bill passed by the vote of 52 yeas and 1 nay, +Senator Blodgett, of New Jersey, alone voting in the negative. It +was passed by the House and after being twice referred to committees +of conference was finally agreed to, its title having been changed +to "An act to protect trade and commerce against unlawful restraints +and monopolies," and was approved by the President June 26, 1890. + +The law as finally agreed to is as follows: + +"Sec. 1. Every contract, combination in the form of a trust or +otherwise or conspiracy, in restraint of trade or commerce among +the several states, or with foreign nations, is hereby declared to +be illegal. Every person who shall make any such contract, or +engage in any such combination or conspiracy, shall be deemed guilty +of a misdemeanor, and, on conviction thereof, shall be punished by +fine not exceeding five thousand dollars, or by imprisonment not +exceeding one year, or by both said punishments, in the discretion +of the court. + +"Sec. 2. Every person who shall monopolize, or attempt to monopolize, +or combine or conspire with any other person, or persons, to +monopolize, any part of the trade or commerce among the several +states, or with foreign nations, shall be deemed guilty of a +misdemeanor, and, on conviction thereof, shall be punished by fine +not exceeding five thousand dollars, or by imprisonment not exceeding +one year, or by both said punishments, in the discretion of the +court. + +"Sec. 3. Every contract, combination in form of trust or otherwise, +or conspiracy, in restraint of trade or commerce in any territory +of the United States or of the District of Columbia, or in restraint +of trade or commerce between any such territory and another, or +between any such territory or territories and any state or states +or the District of Columbia, or with foreign nations, or between +the District of Columbia and any state or states or foreign nations, +is hereby declared illegal. Every person who shall make any such +contract, or engage in any such combination or conspiracy, shall +be deemed guilty of a misdemeanor, and, on conviction thereof, +shall be punished by a fine not exceeding five thousand dollars, +or by imprisonment not exceeding one year, or by both said punishments, +in the discretion of the court. + +"Sec. 4. The several circuit courts of the United States are hereby +invested with jurisdiction to prevent and restrain violations of +this act; and it shall be the duty of the several district attorneys +of the United States, in their respective districts, under the +direction of the attorney general, to institute proceedings in +equity to prevent and restrain such violations. Such proceedings +may be by way of petition setting forth the case and praying that +such violation shall be enjoined or otherwise prohibited. When +the parties complained of shall have been duly notified of such +petition the court shall proceed, as soon as may be, to the hearing +and determination of the case; and pending such petition, and before +final decree, the court may at any time make such temporary +restraining order or prohibition as shall be deemed just in the +premises. + +"Sec. 5. Whenever it shall appear to the court before which any +proceeding under section four of this act may be pending, that the +ends of justice require that other parties should be brought before +the court, the court may cause them to be summoned, whether they +reside in the district in which the court is held or not; and +subpoenas to that end may be served in any district by the marshal +thereof. + +"Sec. 6. Any property owned under any contract of any combination, +or pursuant to any conspiracy (and being the subject thereof) +mentioned in section one of this act, and being in the course of +transportation from one state to another, or to a foreign country, +shall be forfeited to the United States, and may be seized and +condemned by like proceedings as those provided by law for the +forfeiture, seizure, and condemnation of property imported into +the United States contrary to law. + +"Sec. 7. Any person who shall be injured in his business or property +by any other or corporation, by reason of anything forbidden or +declared to be unlawful by this act, may sue therefor in any circuit +court of the United States in the district in which the defendant +resides or is found, without respect to the amount in controversy, +and shall recover threefold the damages by him sustained, and the +costs of the suit, including a reasonable attorney's fee. + +"Sec. 8. That the word 'person,' or 'persons,' wherever used in +this text, shall be deemed to include corporations and associations +existing under or authorized by the laws of either the United +States, the laws of any of the territories, the laws of any state, +or the laws of any foreign country." + +Since the passage of this act I have carefully studied and observed +the effect, upon legitimate trade and production, of the combination +of firms and corporations to monopolize a particular industry. If +this association is made merely to promote production or to create +guilds for friendly intercourse between persons engaged in a common +pursuit, it is beneficial, but such is not the object of the great +combinations in the United States. They are organized to prevent +competition and to advance prices and profits. Usually the capital +of several corporations, often of different states, is combined +into a single corporation, and sometimes this is placed under the +control of one man. The power of this combination is used to +prevent and destroy all competition, and in many cases this has +been successful, which has resulted in enormous fortunes and +sometimes a large advance in prices to the consumer. This law may +not be sufficient to control and prevent such combinations, but, +if not, the evil produced by them will lead to effective legislation. +I know of no object of greater importance to the people. I hope +the courts of the United States and of the several states, will +deal with these combinations so as to prevent and destroy them. + +On the 13th of May, 1890, I was drawn into a casual debate with +Mr. Eustis, of Louisiana, which extended to others, on the relations +of the north and south, or, rather, between Union and Confederate +soldiers. The subject before the Senate was a bill to aid the +illiterate in obtaining a common school education. The chief +benefit of the measure would have inured to the south, especially +to the negroes of the south. Mr. Eustis complained of the 15th +amendment to the constitution. I explained to him that this +amendment would never have been adopted but for the action of the +south in depriving the enfranchised voter, not only of his rights +of citizenship, but of the ordinary rights of humanity. I gave +the history of the reconstruction acts, the first of which was +framed by a committee of which I was chairman. It was based upon +the restoration of the southern states to all the rights and +privileges they enjoyed before the war, subject to such changes as +were made necessary by the abolition of slavery as the result of +the war. There was then no feeling of hostility to the people of +the south. I had heard at that time no expression of opinion except +of kindness to them. There was a universal appreciation of the +fact that while they were wrong--radically wrong, as we thought, +in waging a useless and bloody war against the Union of this country +--yet they were honest in their convictions, they believed the +doctrines they fought for were the doctrines of the constitution, +and there was, therefore, a spirit of generosity, of forbearance, +of kindness, to these people, and everything they could ask for in +reason would have been granted to them. + +It was not then contemplated to arm the negroes with suffrage. A +few, and but a few, Senators made such a proposition, but it was +scouted and laid aside. It was at this time that the Ku-Klux crimes +and violence broke out, and the laws of the southern states were +so cruel, so unjust, so wrong in our view of the rights of the +colored people, and of white Republicans as well, that the people +of the north resented this injustice. These laws burned like coals +of fire in the northern breast. This led to the reconstruction +acts, and the adoption of the 15th amendment. The 14th amendment +was the act of the conservative Senators and Members, such as +Fessenden, Trumbull and Doolittle. The 15th amendment was the +natural result of cruelty and outrage in the south. This amendment +has been practically nullified by the conservatives of the north, +and now the people of the south have increased political power by +reason of the abolition of slavery, while, backed by public opinion +in the south, they deprive the colored people, by whom they gained +this power, of their political rights, and that by processes that +are denounced as criminal by every free state. Time, no doubt, +will correct this evil. If justice is done to the negroes they +will advance in intelligence with the improvement of their condition, +and with the benefit of their labor the south will become more +prosperous by the diversity of employments. There is reason to +believe that in a brief period the south will engage in manufactures +and become more prosperous than in the days of slavery. + +On the 20th of May, the death of William D. Kelley was announced +in the Senate. He entered the House of Representatives as I left +it to take my seat in the Senate, but our frequent meetings in the +consideration of bills of a financial character led to a friendship +which was unbroken, and which imposed on me the duty of responding +to the usual resolutions presented on the death of a Member. When +Mr. Kelley entered the House as a Member from the city of Philadelphia, +he had arrived at the mature age of forty-six, and had an established +reputation for ability, industry, and fidelity to duty. He had +been trained in the school of poverty, making his own way in the +world, gathering knowledge by the wayside. He labored for several +years at his trade as a mechanic, but, prompted by a restless thirst +for knowledge, studied law, and for several years practiced the +legal profession. In due time he became a judge and served as such +for ten years, so that when he entered public life as a Member of +the House he was a trained lawyer, with strong convictions upon +economic questions, and bold and earnest on all the stern issues +of the Civil War. + +The creed to which he devoted himself consisted of but three +articles: That the Union must be preserved at all hazards, that +the national government should exercise its exclusive power to +provide money for the people of the United States, and that the +laborer of our country should be protected in his industry from +undue competition. To the establishment of each of these theories +as the public policy of the country he contributed his full measure +of effort and success. By instinct he was opposed to slavery. +All his early struggles and his innate perceptions of the rights +of man made him an enemy to all forms of oppression. Still, he +would have respected the right of each state to deal with this +question, but when it became manifest that slavery was the real +cause of the attempt at secession, he was among the first and +foremost to demand that it should be abolished. But especially as +the recognized leader in the support of protection to American +industry he exercised commanding influence and authority. + +Whatever opinions might be honestly entertained by others as to +the nature and extent of this protection, Judge Kelley had no doubt, +but impartially and freely extended it to every industry, without +regard to its nature, or the section in which it was pursued. On +all economic questions he had accurate knowledge of details. His +patient industry enabled him to master every shade and side of such +a question, and especially so as to the policy of protection by +discriminating duties. On other matters he was a follower, but in +this always a leader. His writings and speeches upon this and +kindred questions constitute a storehouse of information, and +furnish the best evidence of his industry and ability. + +From the time he entered public life until the hour of his death +he commanded the full confidence of his people. No fluctuation of +opinion, no personal rivalries, no contests for patronage or office, +could weaken their confidence in his integrity and justice. These +obstructions in the paths of public men, often fatal, did not affect +him. For thirty years he was the chosen Representative of one +constituency, in our country an unexampled event. In the House of +Representatives, famous for its sudden changes, he was for many +years "the father of the House," and no doubt, if his life had been +prolonged to the extreme period allotted to man, his seat in the +House would have been safe for him. + +On the 8th of July a similar announcement was made of the death of +Samuel S. Cox, late a Representative of the city of New York. He +had been a Member of Congress from Ohio before the Civil War, and +shared in the exciting and dangerous scenes in Congress at that +time, and I felt it became my duty, as one of the few surviving +actors in those events, to pay a just tribute to the qualities of +head and heart that made him and kept him a leader among the public +men of our country for a period of more than thirty-three years, +longer than the average life of a generation. This duty was the +more imperative upon me as he was a native of Ohio, for forty years +a resident, and for eight years a Representative in Congress from +that state, honored and respected by all of whatever party or creed, +and beloved by his associates as but few in political life can hope +to be. + +I could also speak of him from a longer personal acquaintance than +anyone in either House, for I had known him or his kindred from +almost the days of my boyhood. We were born in neighboring counties, +he one year later than I. My father and his were associated as +judge and clerk of the supreme court of Ohio. I knew of him as +early as 1853, as the editor of the "Ohio Statesman," a Democratic +paper published at Columbus, the organ of that party in Ohio, but +my personal acquaintance and association with him commenced with +his election, in 1856, as a Member of the House of Representatives. + +While Mr. Cox was a successful leader in political life, and rendered +his party due fealty on purely political questions, he was not +always in harmony with the majority of his party. In his first +speech in Congress, which was the first one made in the new hall +of the House of Representatives, an opportunity carefully chosen +by him with the skill of an actor, he took ground against the +Lecompton constitution, strongly recommended by Mr. Buchanan's +administration. He supported several measures during the war not +approved by his political associates. He spoke in favor of the +amendment abolishing slavery, though he did not vote for it. By +instinct, education and association, especially by family ties, he +was against slavery. On all other questions of a political character +he was, by inheritance, and no doubt by conviction, a Democrat, +and faithfully followed the tenets of his party. I do not consider +this a fault, but a virtue. + +We constantly forget in our political contests that the great body +of the questions we have to decide are nonpolitical. Upon these +we divide without feeling and without question of motives. On all +such matters Mr. Cox was always on the humanitarian side. He has +linked his name in honorable association with many humane, kindly, +and reformatory laws. If not the founder or father of our life- +saving service, he was at least its guardian and guide. He took +an active part in promoting measures of conciliation after the war. +He supported the policy of the homestead law against the veto of +Mr. Buchanan. He was the advocate of liberal compensation to letter +carriers, of reducing the hours of labor, and of liberal pensions +to Union soldiers. I doubt if there was a single measure placed +on the statute book, during his time, which appealed to sympathy, +charity, justice, and kindness for the poor, the distressed or the +unfortunate, which did not receive his hearty support. If kindness +bestowed is never lost, then Mr. Cox has left an inheritance to +thousands who will revere his memory while life lasts. + +Perhaps his most pleasing trait was his genial, social manner. +Always gay, cheerful, and humorous, he scattered flowers on the +pathway of his friends and acquaintances. His wit was free from +sting. If in the excitement of debate he inflicted pain, he was +ready and prompt to make amends, and died, as far as I know, without +an enemy or an unhealed feud. I had with him more than one political +debate and controversy, but they left no coolness or irritation. +In our last conversation in the spring of 1889, we talked of old +times and early scenes more than thirty years past and gone, and +he recalled them only to praise those who differed with him. He +had malice for none, but charity for all. In that endearing tie +of husband and wife, which, more than any other, tests the qualities +of a man, both he and his wife were models of unbroken affection +and constant help to each other. + +He was fond of travel, and wrote several books descriptive of scenes +and incidents of his journeys. He also wrote historical works. +He entered, as an author, a lecturer, and a speaker, many fields +of research, and in all sustained his reputation as a brilliant +writer and speaker, always interesting and often eloquent, a close +student who fully mastered his subject, and withal a man of generous +impulses, kind and cheerful nature, a true friend, and a faithful +public servant. This all can be said truly and without exaggeration +of Mr. Cox. He did not contemplate death when I saw him last. +His untimely death was the first news I received on my arrival in +New York from a journey abroad. I am told that he met the common +fate of all with patient confidence and an assured hope and belief +in the doctrines of the Christian faith and the promise of future +life. + +It is fortunate that man cannot know the future, and especially +that future beyond human life. Socrates, when condemned to death, +consoled himself with the inconceivable happiness in a future state +when he would converse and associate with and question the mighty +array of heroes, patriots, and sages who had preceded him. He said +to his judges, "It is now time to depart--for me to die, for you +to live. But which of us is going to a better state is unknown to +everyone but God." We cannot lift the veil, but may we not share +the hope of the wisest of men that our farewell to associates who +go before us is but a brief parting for a better life? + +I have been frequently assailed for my part in the passage, in the +spring of 1864, of a law to encourage immigration. In reporting +this bill from the committee on finance, on the 18th of February +of that year, I said: + +"The special wants for labor in this country at the present time +are very great. The war has depleted our workshops, and materially +lessened our supply of labor in every department of industry and +mechanism. In their noble response to the call of their country, +our workmen in every branch of the useful arts have left vacancies +which must be filled, or the material interest of the country must +suffer. The immense amount of native labor occupied by the war +calls for a large increase of foreign immigration to make up the +deficiency at home. The demand for labor never was greater than +at present, and the fields of usefulness were never so varied and +promising. + +"The south, having torn down the fabric of its labor system by its +own hands, will, when the war shall have ceased, present a wide +field for voluntary white labor, and it must look to immigration +for its supply. + +"The following may be mentioned as the special inducements to +immigration: + +"First. High price of labor and low price of food compared with +other countries. + +"Second. Our land policy, giving to every immigrant, after he +shall have declared his intentions to become a citizen, a home and +a farm substantially as a free gift, charging him less for 160 +acres in fee-simple than is paid as the annual rent of a single +acre in England. + +"Third. The political rights conferred upon persons of foreign +birth. + +"Fourth. Our system of free schools, melting in a common crucible +all differences of religion, language, and race, and giving to the +child of the day laborer and the son of the millionaire equal +opportunities to excel in the pursuit and acquirement of knowledge. +This is an advantage and a blessing which the poor man enjoys in +no other country." + +The committee rejected several plans to aid immigration, and closed +its report as follows: + +"Your committee are of the opinion that the only aid to immigration +the United States can now render would be, first, to disseminate +in Europe authentic information of the inducements to immigration +to this country; second, to protect the immigrant from the impositions +now so generally practiced upon him by immigrant runners and the +like, and, third, to facilitate his transportation from New York +to the place of his destination, or to the place where his labor +and skill will be most productive. These objects may be accomplished +without great expenditure, and without changing the relation +heretofore held by the United States to the immigrant. + +"With this view your committee report the following bill and +recommend its passage." + +When, on the 27th of September, 1890, a bill was pending to restrict +alien contract labor, I heartily supported it, and, after referring +to the conditions which justified the act of 1864, said that since +that time the class of immigration coming from some foreign countries +had been such as would make it proper to exclude a portion of it, +and therefore I was in favor of the bill or any other bill that +would prevent the poisoning of the blood of our people in any way +whatever by the introduction of either disease, crime, or vice into +our midst, and would vote to exclude all paupers or persons who +were unable to earn an honest livelihood by labor. That is the +correct principle. I think we did, during the war, go to the +extreme in one direction to induce people to come among us to share +our benefits and advantages, and we gave the reasons why we did +so; but now the period has arrived when men of all parties, all +conditions of life, all creeds, ought to be willing to limit and +regulate immigration, so that only those who are able to labor and +toil in the ordinary occupations of life and to earn a livelihood +should be allowed to come. It is a high privilege to enter into +American citizenship. Neither a pauper, in the strict legal sense +of the word, nor an imbecile, nor one who has a defect or imperfection +of body or mind which lowers him below the standard of American +citizenship should be allowed to immigrate to this country. + +The most important measure adopted during this Congress was what +is popularly known as the McKinley tariff law. I had not given as +much care and attention to this bill as other Senators on the +committee on finance had, nor did I participate in its preparation +as fully as they. When the Mills bill came to the Senate in 1888, +the work of preparing amendments to, or a substitute for, that bill +was intrusted to Messrs. Allison, Aldrich and Hiscock. Their work +was submitted to the full committee on finance, and, after careful +examination, was reported to the Senate, and was known as "the +Senate bill" to distinguish it from the "Mills bill," for which it +was substituted. When the McKinley tariff bill came to the Senate +on the 21st of May, 1890, it was referred to the committee on +finance and was there submitted to the same sub-committee that had +considered the Mills bill. The McKinley bill, as amended by the +committee on finance, was in substance the Senate bill of 1888. + +It is not necessary here to refer to the long debate in the Senate +on the McKinley tariff bill and the amendments proposed in the +Senate. The result was a disagreement between the two Houses and +the reference of the disagreeing votes to a committee of conference, +of which I was a member. When the report of the committee of +conference came before the Senate I made a long speech justifying, +as I thought, the public policy involved in the proposed tariff +taxation. I stated that the sub-committee named was entitled to +the credit of all the labor expended on the bill, that as a member +of the committee of ways and means or on finance I had participated +in framing all the former revenue laws since 1858, but as to this +bill I had only done what I thought was my duty in keeping pace +with the labor of the sub-committee, and in examining the bill as +far as I could consistently with other duties, and giving my judgment +upon its details whenever I thought it necessary. + +My speech was turned into a colloquial debate by the interruptions +of several Senators, among whom were Gray, Carlisle, Gibson and +Paddock, but this enabled me to meet the chief objections to the +conference report. More than four-fifths of the provisions of the +bill, as reported by the conference, were precisely in the language +of the bill as passed by the House. The residue was chiefly taken +from the Senate bill, fully discussed in the previous session. +The rates of duties must necessarily be changed from time to time +to meet the change in prices, the course and balance of trade, the +relative amounts of exports and imports, and the amount of revenue +required. These changes are rapid and unforseen, so that under +any system of taxation the revenue may rise or fall, whatever may +be the rates of duty or taxes. Parties and politicians, in defining +their political creeds, talk about a tariff for revenue and a tariff +for protection. These are misleading phrases, for every tariff +for revenue imposed on any imported article necessarily protects +or favors the same article produced in the United States, which is +not subject to the tariff tax. + +The real struggle in tariff legislation is one of _sections_, or, +as General Hancock truly said, it is "a local question." The +Republican party affirms that it is for a protective tariff. The +Democratic party declares that it is for a tariff for revenue only; +but generally, when Republicans and Democrats together are framing +a tariff, each Member or Senator consults the interest of his +"deestrict" or state. It so happens that by the constitutional +organization of the Senate, two sections have an unequal allotment +of Senators in proportion to population. The New England States +have twelve able and experienced Senators, with a population, +according to the census of 1890, of 4,700,745, or one Senator for +less than 400,000 inhabitants. The nine states west of the Missouri, +commonly classified as the silver or western states, have eighteen +Senators, with a population of 2,814,400, or one Senator for less +than 160,000 inhabitants. This representation in the Senate gives +these groups of states a very decided advantage in tariff legislation. +The average of Senators to the whole population is one for 712,000 +inhabitants. This inequality of representation cannot be avoided. +It was especially manifest in framing the tariff of 1883, when New +England carried a measure that was condemned by public opinion from +the date of its passage. + +I undertook, in my speech, to define the condition of tariff +legislation, and the position of each party in regard to it. I +said: + +"A change and revision has been demanded by both parties since +1883. The tariff law of 1883 did not give satisfaction to the +people of the United States. It had many imperfections in it. I +always thought the great error was made in 1883 in not making, as +the substantial basis, as the real substance of the tariff law of +that year, the report of the tariff commission. Whether that was +wise or unwise, it is certain that the tariff of 1883 never gave +satisfaction. There were defects found in it in a short time, and +from then till now the subject of the revision of the tariff has +been a matter of constant debate in both Houses. It has been the +subject of political debate before the people of the United States +in two several presidential campaigns, and the election of at least +two Congresses depended upon questions arising out of the tariff, +until finally the Republican party, controlling in the Senate, and +the Democratic party, controlling in the other House, undertook to +bring before the people of the United States their rival theories +as to the tariff. We had the Mills bill two years ago. It was +very carefully examined and sent to us as a Democratic production. +It came here and in place of it there was substituted what was +called the Senate bill of 1888. That was sent back to the House, +and the House disagreed to it, and thus this controversy was at +once cast into the presidential election. Here were the platforms +of the two great parties embodied in the form of bills, and the +choice between them, not having been decided in Congress, was +submitted to the people, and the people of the United States passed +their judgment upon the general principles involved in these bills. + +"Now, what are those general principles? I think I can state them +very clearly and very briefly. On the one hand, the Democratic +party believe in a tariff for revenue only, sometimes, as they say, +with incidental protection, but what they mean is a tariff intended +solely to raise money to carry on the operations of the government. +On the other hand, the Republican party believes that we should do +something more besides merely providing revenue, but that we should +so levy the duties on imported goods that they would not only yield +us an ample revenue to carry on the operations of the government, +but that they would do more; that they would protect, foster and +diversify American industry. This broad line of demarkation entered +into the presidential contest. + +"Mr. president, the result of it all is that the Republican party +carried not only both Houses of Congress, but they carried the +popular voice, elected the President, and now all branches of the +government are governed by the Republican ideas and not by the +Democratic ideas. + +"What then was done? The House of Representatives took up the +Senate bill of 1888, revised it, modified it, and changed it so as +to suit the popular will of the present day, and sent it to us, +and we made some changes in it, and that is the bill now before +us. To say that anyone can be misled or may be deceived or does +not know the contents of this bill is to confess a degree of +ignorance that I would not impute to any Senator of the United +States or to any Member of Congress. + +"There are two or three principles involved in this bill; first, +that it is the duty of Congress to foster, protect and diversify +American industry. We believe that whenever a new industry can be +started in our country with a successful hope of living, with a +reasonable protection against foreign manufactures, we ought to +establish it here, and that this is a good policy for the country. +It is not necessary for me to show that this policy is as old as +our constitution; that Washington proclaimed it; that even Jefferson +and Madison and the old Republican Presidents of the former times +were in favor of that doctrine, and that General Jackson advocated +it in the most emphatic way in many different forms of speech. It +has come down to us, and we are trying now to carry out that idea, +to encourage home productions by putting a tax upon foreign +productions. As this tax does not apply to home production, +therefore it is a protection against the importation of foreign +goods to the extent of the tax levied. We think that this tax +ought to be put at such a rate as will give to our people here a +chance to produce the articles and pay a fair return for the +investment made and for the labor expended at prices higher in this +country than in any country in the world. That is the first rule, +and I believe that that rule has been carried out, and I think +liberally, and so as to secure increased production at home and a +larger market." + +I am not entirely content with this statement of the position of +the two great parties, nor do I believe that any line of demarkation +between them can be made, nor ought it to be made. If any proof +of this is required I need only refer to the unhappy result of the +tariff law of the last Congress, which left the country without +sufficient revenue to meet current expenses of the government, and +caused the absorption for such expenses of the gold reserved for +the maintenance of resumption, which now endangers our financial +system. I will have occasion to refer to this subject hereafter. + +The conference report was adopted by the Senate on the 30th of +September by the vote of yeas 33 and nays 27. The bill was approved +by the President on the 1st of October, and on the same day Congress +adjourned. + +Many other measures of importance were considered during this long +session of ten months, but my space will not allow me to refer to +them. + +When in Frankfort, in the summer of 1889, I learned that George H. +Pendleton, my former colleague in the Senate and then our minister +in Berlin, was sick at Homburg. I called upon him there, and, +though he was able to receive me at his lodgings, I noticed the +marks of death on his face. He was cheerful, and still preserved +the kindly manners that gave him the name of "Gentleman George." +He still hoped that he would be able to return home, and inquired +in regard to mutual friends, but his hope was delusive and he died +on November 24, 1889. In February, 1890, his body was conveyed to +his home in Cincinnati and was buried in Spring Grove Cemetery. +I was invited to his funeral but was compelled to decline, which +I did in the following note, which faintly expressed my high respect +and affection for him: + + "U. S. Senate, } + "Washington, D. C., February 26, 1890.} +"My Dear Sir:--Your note of the 24th, in respect to the funeral of +Mr. Pendleton, has been received. + +"Yesterday, when Mayor Mosby invited me to attend the funeral +ceremonies at Cincinnati, I felt both willing and eager to express +my warm affection and appreciation of my old colleague. I know no +one among the living or the dead of whom I could speak more kindly, +and for whom I felt a more sincere respect; but find that I have +engagements and public duties that I cannot avoid, and, besides, +while reasonably well, the lingering effects of the grippe still +hang on me, and my doctor advises against a long and wearisome +journey. + +"Under the circumstances I felt compelled, though reluctantly, to +telegraph Mayor Mosby the withdrawal of my acceptance, and proffered +to assist him in every way to find some acceptable person to perform +the gracious duty assigned to me. This I will do. Lengthy orations +in the presence of the dead are out of place and out of time. A +brief, warm, hearty, kindly statement of the character and life of +Mr. Pendleton is all that is needed. + + "Very truly yours, + "John Sherman." + +On the 10th day of May, 1890, I reached the age of sixty-seven +years. My wife determined to celebrate the event and invited a +distinguished party, among whom were President Harrison, Vice +President Morton, Sir Julian Pauncefote and General Sherman, to +dine with us on the evening of that day, the dinner to be followed +by a general reception. I was accustomed to pass each milestone +of my journey in life without notice, but as we were both in good +health I readily yielded to her wish. Undue importance was given +by the papers to the social gathering and I received many letters +of congratulation and read many kindly notices in papers representing +each of the two great parties. I looked upon this as evidence that +I had arrived at that period of life when a difference in political +opinions was no longer regarded as a ground of personal disfavor. + +Soon after the adjournment of Congress I returned to Ohio and +entered actively into the political canvass. The election was for +secretary of state and a few state officers, but the chief contest +was upon the election of Members of Congress. I made my first +speech in the Ohio canvass at Wilmington on the 16th of October. +It was a prepared speech and dealt mainly with the recent acts of +Congress. I opened with a general comparison of the two great +parties of the country. The subjects discussed were the trust law, +the pension legislation, the silver law and the McKinley tariff +law. I defended the latter as a protective measure that, while +reducing taxation, maintained the protection of all American +industries impartially. I continued in the canvass diligently, +speaking almost every day until the election. Among the largest +meetings was one at Findlay on the 28th of October and one at Music +Hall, Cincinnati, on the 31st, where Governor Foraker and I spoke +together. The meeting at Music Hall was especially notable for +the number and enthusiasm of those present. + +During this canvass, on the 25th of October, I attended a meeting +at the city hall, Pittsburg, which was largely attended. The chief +interest in this busy, thriving city was the tariff question, to +which I mainly confined my speech. In opening I said: + +"While on my way here I wondered what in the world the people of +Pittsburg wanted to hear me for--why they should invite a Buckeye +from Ohio to talk to them about Republican principles? This city +of Pittsburg is the birthplace of the Republican party. Here that +grand party commenced its series of achievements which have +distinguished it more than any other party that ever existed in +ancient or modern times; because it has been the good fortune of +the Republican party to confer upon the people of the United States +greater benefits than were ever conferred by any other political +organization on mortal men. We have had periods in our existence +which demonstrated this. When, in 1853, you or your ancestors +organized the Republican party, our only object was to resist the +extension of slavery over our western territory. Afterward, in +1861, the only object of the Republican party was to maintain the +union of these states, to preserve our country as an inheritance +for your children and your children's children. In 1876 the object +of the Republican party was to make good the promises contained in +our notes, and to make all our money as good as gold and silver +coin. Now, the great issue between the parties, not so great as +in the past, but still worthy of discussion, is how shall we levy +the taxes to support the national government? That is the question +that is to be discussed mainly to-night." + +The mention of the McKinley tariff law was received with immense +applause and cheers. Continuing, I said: + +"That bill is very well named. It is named after Wm. McKinley, a +kind of Pennsylvania-Ohio Dutchman, with a little Scotch-Irish +mixed in him, too--a brilliant neighbor of mine, whom, I am told, +you have had the pleasure of hearing. It is true that this bill +was made up largely of what was called the Senate bill of the year +before, and new lines had contributed toward the formation of that +bill; but it was properly named after Mr. McKinley because of his +indomitable pluck, his ability, his energy. + +"It was pushed through the House after great opposition, because +the Democrats, as usual, opposed that, as they opposed everything +else." + +The election in Ohio resulted in Republican success, Daniel J. +Ryan, the head of the ticket, being elected secretary of state by +about 11,000 majority. + +Shortly after the election I was in the city of New York, and was +there interviewed. I was reported to have said: + +"The Republican defeats do not bother me at all, I have seen many +such revulsions before and we get around all right again. It does +us good, we become more active and careful. It will be all right. + +"I will cite an instance in my own state, Ohio. Last year we lost +our governor, this year we carry the state by a splendid majority. +The Democrats fixed up the congressional districts so we would get +six Congressmen only, but we got eight." + +"What of Major McKinley's election to Congress?" + +"Major McKinley is, I fear, defeated, though when I left Ohio it +was thought that he had succeeded by a small majority. If he should +have run in his old district his majority would have been 3,500 or +4,000 against 2,000 received by him two years ago. But they placed +him in a district of three Democratic counties and only one Republican +county, in which the Democratic majority is upward of 2,000. It +looks now as if he is defeated by about 130 votes. It simply means +that the major will be the next Governor of Ohio. He made a splendid +canvass and a magnificent run, and defeat is not the proper name +for the result. Mr. McKinley told me before the election that he +did not expect to succeed with such odds against him. + +"As to the general result of the congressional elections, I have +seen such convulsions a dozen times or more, but they have had no +permanent effect. In 1878, when I was Secretary of the Treasury, +we lost the House and Senate both, but two years later, in 1880, +we rallied and recovered all that we had lost and elected a Republican +President besides. I do not regard the present situation with +apprehension. The country will be wiser by next year and better +able to pass upon the issues." + +The second session of the 51st Congress met on the 1st of December, +1890. The annual message of the President dealt with the usual +topics. The surplus for the fiscal year ending June 30, 1890, +including the amount applied to the sinking fund, was $105,344,496. +In referring to the act "directing the purchase of silver bullion +and the issue of treasury notes thereon," approved July 14, 1890, +the President said: + +"It has been administered by the Secretary of the Treasury with an +earnest purpose to get into circulation, at the earliest possible +dates, the full monthly amount of treasury notes contemplated by +its provisions, and at the same time to give to the market for +silver bullion such support as the law contemplates. The recent +depression in the price of silver has been observed with regret. +The rapid rise in price which anticipated and followed the passage +of this act was influenced in some degree by speculation, and the +recent reaction is in part the result of the same cause and in part +of the recent monetary disturbances. Some months of further trial +will be necessary to determine the permanent effect of the recent +legislation upon silver values, but it is gratifying to know that +the increased circulation secured by the act has exerted, and will +continue to exert, a most beneficial influence upon business and +upon general values." + +On the 18th of December I reported, from the committee on finance, +a bill to provide against the contraction of the currency, and for +other purposes. This bill embodied several financial bills on the +calendar which had been reported by the committee, and it was deemed +best to include them in a single measure. The bill was recommitted +and again reported by me on the 23rd of December, when Mr. Stewart +gave notice of and had read an amendment he intended to offer +providing for the free coinage of silver. + +On January 5, 1891, at the expiration of the morning hour, Mr. +Stewart moved to proceed to the consideration of this bill. By a +combination of seven Republican with the Democratic Senators the +motion was carried, thus displacing the regular order of business, +which was a bill relating to the election of Members of Congress, +and which had been under discussion for several days. + +Mr. Stewart than offered, as an amendment to the amendment of the +committee, then pending, the following provision: + +"That any owner of silver bullion, not too base for the operations +of the mint, may deposit the same in amount of the value of not +less than $100, at any mint of the United States, to be formed into +standard dollars or bars, for his benefit and without charge, and +that, at the said owner's option, he may receive therefor an +equivalent of such standard dollars in treasury notes of the same +form and description, and having the same legal qualities, as the +notes provided for by the act approved July 14, 1890, entitled, +'An act directing the purchase of silver bullion, and the issue of +treasury notes thereon, and for other purposes.' And all such +treasury notes issued under the provisions of this act shall be a +legal tender for their nominal amount in payment of all debts, +public and private, and shall be receivable for customs, taxes, +and all public dues, and when so received may be reissued in the +same manner, and to the same extent, as other treasury notes." + +This being an amendment to an amendment, no further modification +or change could be made to the bill until it was disposed of. Mr. +Stewart made some remarks, and in conclusion said: + +"I do not intend further to comment, at this time, on the amendment +to the bill which I have offered. If it shall be adopted, then +there are other portions of the bill which can be stricken out. +The amendment I have offered presents the question naked and simple. +Will you remonetize silver and place it back where it was before +it was excluded from the mints of the United States and Europe?" + +I was taken by surprise at the sudden presentation of the question, +but promptly took the floor and said: + +"The sudden and unexpected change of the scene, the introduction +of an entirely new topic into our debate, must not pass by without +the serious and sober attention of every Senator on the floor to +the revolutionary measure now proposed. I do not wish to, nor will +I, nor can I, regard this as a political question, because we know +that the local interests of a certain portion of our number--and +I do not object to Senators representing the interest of their +constituents--lead them to opinions different from the opinions of +Senators from the larger states containing the great mass of the +population of this country, not only in the north, but in the south; +and therefore, while the Republican party may be weakened by the +unexpected defection of a certain portion of our number who agree +with us in political opinions generally, yet that will not relieve +the minority in this body, our Democratic associates, from the +sober responsibility which they will assume in aiding in the adoption +of this measure. At the very outset of this discussion I appealed +to the sober judgment of Senators to consider the responsibility +which they take in adopting what I regard as a revolution more full +of injury, more dangerous in its character, and more destructive +in its results, than any measure which has been proposed for years. + +"Now, what is this question? The Senator from Nevada [Mr. Stewart], +representing a state whose chief production is silver, offers an +amendment to change entirely the standard of valuation of all the +property of the United States. At present all contracts are founded +upon what is called the gold standard. Every particle of property +we enjoy, every obligation of contract, whether by the national +government or by each individual, is now based in actual fact upon +the gold standard of 25.8 grains. That is the standard of all the +commercial nations of the world. It is the standard of France, +which, like ourselves, has used silver to a large extent. It is +the standard of value of France and every country of Europe." + +I then, at considerable length, stated the objections to the free +coinage of silver and the revolution it would create in the financial +condition of the country. This led to a long debate, participated +in by many Senators. On the 13th of January I made a long and +carefully considered speech, extending through fourteen pages of +the "Record," in which I entered into detail in reply to the speeches +that had been made, and stated the objections to the free coinage +of silver. It is too long to insert even an abstract of it here. +I have carefully read this speech and refer to it as the first of +three speeches, the second being delivered on the 30th of June, +1892, and the third on August 30, 1893, as the best presentation +I have ever made of the question involved, and as containing all +the material facts bearing upon the question of free coinage and +the folly of its adoption. + +It was manifest that the combination that had been made intended +to force the adoption of the amendment. The vote on it was taken +on the 14th of January and the result was yeas 42 and nays 30. +Nearly all the Senators from the western group of states, though +Republicans, voted for the amendment in favor of free coinage. +Only four voted against it. So the amendment of Mr. Stewart was +agreed to. The bill was further discussed and changed to conform +to the amendment and finally passed the Senate by the vote of yeas +39, nays 27, but failed to pass the House. + +Thus the debate and the adoption by the Senate of free coinage +defeated all financial legislation during that session. + + +CHAPTER LVIII. +EFFORTS TO CONSTRUCT THE NICARAGUAN CANAL. +Early Recognition of the Need of a Canal Across the Isthmus +Connecting North and South America--M. de Lesseps Attempts to Build +a Water Way at Panama--Feasability of a Route by Lake Nicaragua-- +First Attempts in 1825 to Secure Aid from Congress--The Clayton- +Bulwer Convention of 1850--Hindrance to the Work Caused by This +Treaty--Report of the Committee on Foreign Relations in 1891-- +Failure to Secure a Treaty Between the United States and Nicaragua +in 1884--Cleveland's Reasons for Withdrawing This Treaty--Incorporation +of the Maritime Canal Company of Nicaragua--Inevitable Failure of +Their Attempts Unless Aided by the Government--Why We Should Purchase +Outright the Concessions of the Maritime Company--Brief Description +of the Proposed Canal--My Last Letter from General Sherman--His +Death from Pneumonia After a Few Days' Illness--Messages of President +Harrison--Resolution--My Commemorative Address Delivered Before +the Loyal Legion. + +One of the most important subjects considered by the Senate within +the last ten years, to which I have given special attention, is +the construction of a ship canal across Central America. The +American continents, stretching from the polar regions of the north +to the Straits of Magellan, south of the 50th parallel of south +latitude, present a barrier to navigation from the east to the +west, to overcome which has been the anxious desire of mankind ever +since the discovery of America by Columbus. It was the object of +his memorable voyage to find a water way from Spain to China and +India. While his discovery was an event of the greatest importance, +yet it was a disappointment to him, and in all his subsequent +voyages he sought to find a way through the newly-found land to +the Indian Ocean. The spirit of enterprise that was aroused by +his reports led many adventurers to explore the new world, and +before many years the peculiar formation of the long strip of land +connecting North and South America was clearly defined. The +Spaniards conquered Mexico and Peru, and at this early period +conceived the idea of a canal across the isthmus, but the obstruction +could not be overcome by the engineering of that day. The region +of Central America was soon occupied by Spain, and was divided into +many colonies, which, in process of time, became independent of +Spain, and of each other. + +During the four centuries that have elapsed since the discovery, +the construction of a canal across the isthmus has been kept in +view, and by common consent the routes at Panama and through Lake +Nicaragua have been regarded as the best. That at Panama is the +shortest, but is impracticable, as was shown by the abortive attempt +of M. de Lesseps. The route by Lake Nicaragua was early regarded +by the American people as the only adequate, efficient and practicable +passage. Though burdened with the delays of lockage, it is more +practical, less costly, and more useful than the one at Panama +would have been, and will accomplish the same object. When, in +1825, the independence of the republic of Nicaragua was secured, +that government appealed to the United States for assistance in +executing the work of a canal by that route. Mr. Clay, then +Secretary of State, took an active interest in the subject, and +said, in a letter to the commissioners of the United States to the +congress of Panama: + +"A canal for navigation between the Atlantic and Pacific Oceans +should form a proper subject of consideration at the congress. +The vast object, if it should ever be accomplished, will be +interesting in a greater or less degree to all parts of the world; +but especially to this continent will accrue its greatest benefits; +and to Colombia, Mexico, Central America, Peru, and the United +States, more than any other of the American nations." + +No action was taken, as the discordant interests of the several +Central American states prevented. When California was acquired +as the result of the Mexican War, and gold was discovered in its +soil, the necessity for some means of speedy transit from the +Atlantic to the Pacific coast became imperative. The route by +Panama, being the shortest line across the isthmus, was naturally +taken by the eager gold seekers and a railroad was soon after +constructed over this route. The movement of travel and transportation +across the isthmus tempted M. de Lesseps and his associates to +undertake the task of constructing a canal, with the result already +stated. + +Prior to 1850 the movements of the British government to seize the +country at the mouth of the San Juan River in Nicaragua, with the +evident view of controlling the construction of a canal by way of +Lake Nicaragua, excited in this country the deepest interest and +apprehension. This led to the Clayton-Bulwer convention of 1850, +by which the United States and Great Britain stipulated that neither +of the governments "will ever obtain for itself any exclusive +control over the canal or colonize or assume or exercise any domain +over Nicaragua, Costa Rica, the Mosquito Coast, or any part of +Central America." + +It provided for the exertion of the influence of the two governments +in facilitating the construction of the work by every means in +their power, and that after completion they would defend its +neutrality, with the privilege of withdrawing such guaranty on +notice. It also provided for inviting other governments to come +into the same arrangement, and that each party should enter into +treaty stipulations with such of the Central American states as +might be deemed advisable for carrying out the great design of the +convention. It declared that no time should be unnecessarily lost +in commencing and constructing the canal, and, therefore, that the +two governments would give their support and encouragement to such +persons as might first offer to commence the same with the necessary +capital, and that, if any persons then already had obtained the +right to build it from the Central American government and should +fail, each of the two governments should be free to afford its +protection to any other company that should be prepared to proceed +with the work. + +This treaty has given rise to much discussion, and has ever since +been a hindrance to the great work it proposed to advance. The +British government has repeatedly violated the treaty by extending +its possessions and strengthening its influence in that part of +the world. The report made by me, as chairman of the committee on +foreign relations, on the 10th of January, 1891, in response to a +resolution of the Senate, contains a full statement of the results +of that treaty. As this report has been widely circulated and was +considered an important document, it is but just for me to say +that, while I presented it, two other members of the committee +participated in its preparation. The first part, relating to +negotiations, was written by Senator Edmunds; the second part, +relating to the then condition of the work on the Nicaragua Canal +and its value, tonnage and business, by Senator Morgan; and the +residue, in respect to the financial aspect of the subject, the +cost of the work proposed and the aid that should be given by the +United States in its construction, by me. The framing of a bill +to carry into effect the recommendations of the committee was the +work of the full committee. I do not think it necessary to restate +here the position of the committee, as no definite action has been +taken by Congress on the bill reported. The report was signed by +each member of the committee, as follows: John Sherman, Chairman, +Geo. F. Edmunds, Wm. P. Frye, Wm. M. Evarts, J. N. Dolph, John T. +Morgan, Joseph E. Brown, H. B. Payne, J. B. Eustis. + +There are, however, questions connected with this subject which +are of vital interest to the United States, and not presented in +that report. By the treaty negotiated in 1884, between the United +States and Nicaragua, the canal was to be built by the United +States. This treaty was sent to the Senate on December 10, 1884, +by President Arthur, who, in strong and earnest language, recommended +its ratification. It had been frequently debated, but was still +pending in the Senate when Mr. Cleveland became President. I do +not feel at liberty to state the causes of delay, nor the ground +taken, nor the votes given either for or against it, as the injunction +of secrecy in respect to it has not been removed, but I have regarded +as a misfortune its practical defeat by the want of a two-thirds +vote, required by the constitution to ratify a treaty. The terms +granted in it by Nicaragua were liberal in the broadest sense. +The complete control of the canal and its appurtenances, and the +manner of its construction, were invested in the United States. +The conditions proposed would have made it an international work +of great importance to all commercial nations, while ample authority +was reserved on the part of the United States to protect its +investment with tolls sufficient to pay the interest and refund +the principal. + +At the called session of March, 1885, Mr. Cleveland withdrew the +treaty, not from opposition to its general purposes, but because, +as he stated in his annual message in December, 1885, it was "coupled +with absolute and unlimited engagements to defend the territorial +integrity of the states where such interests lie." He held that +this clause was an "entangling alliance inconsistent with the +declared policy of the United States." This objection to the treaty +could have been easily removed by negotiation, as Mr. Bayard, a +Member of the Senate when the treaty was pending, and Secretary of +State under President Cleveland, very well knew. Thus, by an +unfortunate division in the Senate and the action of the President, +the construction of the canal by the United States was prevented. +Subsequently, in 1887, concessions were made by Nicaragua and Costa +Rica to a private association of citizens of the United States, +which led to the incorporation, by Congress, of the Maritime Canal +Company of Nicaragua. + +The interposition of a private corporation between the United States +and Nicaragua has created all the delays and embarrassments that +have followed. Such a corporation can obtain money only be selling +its bonds bearing a high rate of interest, secured by a mortgage +of all its property and concessions, and its stock must accompany +the bonds. Experience has shown that such a work cannot be executed, +especially on foreign soil, without the support and aid of a powerful +government. If such aid is rendered it must be to the full cost +of the work, and all the benefits should inure to the people and +not to the corporation or its stockholders. The experience of the +United States in the construction of the Pacific railroads is an +example of the inevitable result of copartnership. The attempt of +the Maritime Company to construct such a work as the Nicaraguan +canal without the aid of the government will end either in failure +or at a cost, in bonds and stock, the interest of which would be +so great that the cost of the transit of vessels through the canal +would deter their owners from using it, and goods would be, as now, +transferred by rail to and from Panama. + +The method of aiding the Maritime Canal Company proposed in the +bill reported by me, and again recently by Senator Morgan, is as +good as any that can be devised, but I greatly prefer the direct +and absolute purchase of the concessions of that company, and the +negotiation of new treaties with Nicaragua and Costa Rica upon the +basis of the former treaty, and the execution of the work under +the supervision of the engineer corps of the United States in the +same manner that internal improvements are made in this country. +The credit of the United States will secure a loan at the lowest +possible rate of interest, and with money thus obtained, and with +the confidence of contractors that they will receive their pay for +work done, the cost will be reduced to the actual sum needed. It +is the interest of the commercial world as well as of the United +States that the tolls charged on the passage of vessels should be +as low as possible, and this will be secured by the construction +of the work by the government. + +If the present owners of the concessions from Nicaragua and Costa +Rica will not accept a reasonable price for their privileges and +for the work done, to be fixed by an impartial tribunal, it is +better for the United States to withdraw any offer of aid; but if +they will accept such an award the United States should take up +the work and realize the dream and hopes of Columbus. At present +the delay of action by Congress grows out of the fact that no +detailed scientific survey of the route has been made by the engineer +corps of the United States. The only approach to such a survey +was the one made by A. G. Menocal, an accomplished civil engineer +of the navy, but it was felt that this was not sufficient to justify +the United States in undertaking so great and expensive a work. +In accordance with this feeling the 53rd Congress directed the +Secretary of War to cause a thorough survey to be made and to submit +a full report to the next Congress, to convene December 2, 1895. +This survey is now in progress and will no doubt largely influence +the future action of Congress. + +A brief description of the canal proposed may be of interest to +those who have not studied the geography and topography of its +site, though it is difficult to convey by writing and without maps +an adequate conception of the work. It is apparent, according to +Menocal's surveys, that the physical difficulties to be overcome +are not greater than those of works of improvement undertaken within +our own country, for the highest part of the water way is to be +only 110 feet above the two oceans--a less altitude than that of +the base of the hills which surround the city of Washington. The +works proposed include a system of locks, similar in character to +the one built by the United States at the falls of Sault Ste. Marie +and to those constructed by Canada around the falls of Niagara. +A single dam across the San Juan River, 1,250 feet long and averaging +61 feet high, between two steep hills, will insure navigable water, +of sufficient depth and width for the commerce of the world, to a +length of 120 miles. The approaches to this level, though expensive, +are not different from similar works, and will be singularly +sheltered from floods and storms. Of the distance of 169.4 miles +from ocean to ocean, 142.6 miles are to be accomplished by slack- +water navigation in lake, river, and basins, and only 26.8 miles +by excavated canal. The greatest altitude of the ridge which +divides Lake Nicaragua from the Pacific Ocean does not exceed, at +any point, 42 feet above the lake. + +Perhaps the chief engineering difficulty is in the construction of +harbors at the Pacific and Atlantic termini of the canal, but that +at Greytown, on the Atlantic coast, which is considered the most +formidable, has already been partially built. The obstacles are +not to be compared with those encountered in the attempted construction +of the Panama canal, or with those which were easily overcome in +the construction of the Suez Canal; and the whole work, from ocean +to ocean, is free from the dangers of moving sand and destroying +freshets. Lake Nicaragua itself is one of the most remarkable +physical features of the world. It fills a cavity in the midst of +a broken chain of mountains, whose height is reduced, at this point, +nearly to the level of the sea, and it furnishes not only the means +of navigation at a low altitude, but enormous advantages as a safe +harbor. + +If the survey ordered and now (1895) being made should confirm the +reports of Menocal there is no reason why the United States should +not assume and execute this great work without ultimate loss, and +with enormous benefit to the commerce of the world. It will be a +monument to our republic and will tend to widen its influence with +all the nations of Central and South America. + +The last letter I received from General Sherman was as follows: + + "No. 75 West 71st Street, New York,} + "Tuesday, February 3, 1891. } +"Dear Brother:--I am drifting along in the old rut--in good strength, +attending about four dinners out per week at public or private +houses, and generally wind up for gossip at the Union League club. +Last night, discussing the effect of Mr. Windom's death and funeral, +several prominent gentlemen remarked that Windom's fine speech just +preceding his death was in line with yours on the silver question +in the Senate, and also with a carefully prepared interview of you +by George Alfred Townsend which I had not seen. I have ordered of +my book man the New York 'Sun' of Sunday, February 1st, which +contains the interview. + +"You sent me a copy of your speech in pamphlet form which was begged +of me, and as others naturally apply for copies, I wish you would +have your secretary send me a dozen, that I may distribute them. + +"All well here and send love. + + "Your brother, + "W. T. Sherman." + +Soon after the receipt of this letter I was notified of the dangerous +illness of my brother at his residence in the city of New York. +I at once went to his bedside, and remained with him until his +death, at two o'clock of Saturday, the 14th of February. In his +later years, after his removal to New York, he entered into the +social life of that city. He was in demand at weddings, dinners, +parties, reunions of soldiers, and public meetings, where his genial +nature and ready tact, his fund of information and happy facility +of expression, made him a universal favorite. He was temperate in +his eating and drinking, but fond of companionship, and always +happy when he had his old friends and comrades about him. He +enjoyed the society of ladies, and did not like to refuse their +invitations to social gatherings. In conversation with men or +women, old or young, he was always interesting. He was often warned +that at three score and ten he could not endure the excitement of +such a life, and he repeatedly promised to limit his engagements. +Early in February he exposed himself to the inclement weather of +that season, and contracted a cold which led to pneumonia, and in +a few days to death. He was perfectly conscious of his condition +and probable fate, but had lost the power of speech and could only +communicate his wishes by signs. His children were with him, and +hundreds daily inquired about him at his door; among them were +soldiers and widows whom he had aided. + +During the last hours of General Sherman, his family, who had been +bred in the Catholic faith, called in a Catholic priest to administer +extreme unction according to the ritual of that church. The New +York "Times," of the date of February 13, made a very uncharitable +allusion to this and intimated that it was done surreptitiously, +without my knowledge. This was not true but the statement deeply +wounded the feelings of his children. I promptly sent to the +"Times" the following letter, which was published and received with +general satisfaction: + +"A paragraph in your paper this morning gives a very erroneous view +of an incident in General Sherman's sick chamber, which wounds the +sensitive feelings of his children, now in deep distress, which, +under the circumstances, I deem it proper to correct. Your reporter +intimates that advantage was taken of my temporary absence to +introduce a Catholic priest into General Sherman's chamber to +administer the rite of extreme unction to the sick man, in the +nature of a claim that he was a Catholic. It is well known that +his children have been reared by their mother, a devoted Catholic, +in her faith, and now cling to it. It is equally well known that +General Sherman and myself, as well as all my mother's children, +are, by inheritance, education, and connection, Christians, but +not Catholics, and this has been openly avowed, on all proper +occasions, by General Sherman; but he is too good a Christian, and +too humane a man, to deny to his children the consolation of their +religion. He was insensible at the time and apparently at the +verge of death, but if he had been well and in the full exercise +of his faculties, he would not have denied to them the consolation +of the prayers and religious observances for their father of any +class or denomination of Christian priests or preachers. Certainly, +if I had been present, I would, at the request of the family, have +assented to and reverently shared in an appeal to the Almighty for +the life here and hereafter of my brother, whether called a prayer +or extreme unction, and whether uttered by a priest or a preacher, +or any other good man who believed what he spoke and had an honest +faith in his creed. + +"I hear that your reporter uttered a threat to obtain information +which I cannot believe you would for a moment tolerate. We all +need charity for our frailties, but I can feel none for anyone who +would wound those already in distress." + +President Harrison announced General Sherman's death to both Houses +of Congress in the following words: + +"_To the Senate and House of Representatives:_ The death of William +Tecumseh Sherman, which took place to-day at his residence in the +city of New York, at 1 o'clock and 50 minutes p. m., is an event +that will bring sorrow to the heart of every patriotic citizen. +No living American was so loved and venerated as he. To look upon +his face, to hear his name, was to have one's love of country +intensified. He served his country, not for fame, not out of a +sense of professional duty, but for love of the flag and of the +beneficent civil institutions of which it was the emblem. He was +an ideal soldier, and shared to the fullest the _esprit de corps_ +of the army; but he cherished the civil institutions organized +under the constitution, and was a soldier only that these might be +perpetuated in undiminished usefulness and honor. He was in nothing +an imitator. + +"A profound student of military science and precedent, he drew from +them principles and suggestions, and so adapted them to novel +conditions that his campaigns will continue to be the profitable +study of the military profession throughout the world. His genial +nature made him comrade to every soldier of the great Union army. +No presence was so welcome and inspiring at the camp-fire or +commandery as his. His career was complete; his honors were full. +He had received from the government the highest rank known to our +military establishment, and from the people unstinted gratitude +and love. No word of mine can add to his fame. His death has +followed in startling quickness that of the Admiral of the Navy; +and it is a sad and notable incident that, when the department +under which he served shall have put on the usual emblems of +mourning, four of the eight executive departments will be simultaneously +draped in black, and one other has but to-day removed the crape +from its walls + + "Benj. Harrison. +"Executive Mansion, February 14, 1891." + +The following resolutions were offered in the Senate and unanimously +agreed to: + +"_Resolved_, That the Senate received with profound sorrow the +announcement of the death of William T. Sherman, late general of +the armies of the United States. + +"_Resolved_, That the Senate renews its acknowledgments of the +inestimable services he rendered its country in the day of its +extreme trial, laments the great loss the country has sustained, +and deeply sympathizes with his family in their bereavement. + +"_Resolved_, That the presiding officer is requested to appoint a +committee of five Senators to attend the funeral of the late General +Sherman. + +"_Resolved_, That a copy of these resolutions be forwarded to the +family of the deceased." + +Eloquent and appropriate speeches were made by Senators Hawley, +Manderson, Morgan and Pierce. + +In the House of Representatives the message of the President was +referred to the committee on military affairs, for appropriate +action thereon and the following resolutions were reported by Mr. +McCutcheon and adopted: + +"_Resolved_, That the House of Representatives has heard with +profound sorrow of the death, at his home in New York City, on the +14th instant, of William Tecumseh Sherman, the last of the generals +of the armies of the United States. + +"_Resolved_, That we mourn him as the greatest soldier remaining +to the republic and the last of that illustrious trio of generals +who commanded the armies of the United States--Grant, Sherman, and +Sheridan--who shed imperishable glory upon American arms, and were +the idolized leaders of the Union army. + +"_Resolved_, That we hereby record the high appreciation in which +the American people hold the character and services of General +Sherman, as one of the greatest soldiers of his generation, as one +of the grandest patriots that our country has produced, and as a +noble man in the broadest and fullest meaning of the word. + +"We mingle our grief with that of the nation, mourning the departure +of her great son, and of the survivors of the battle-scarred veterans +whom he led to victory and peace. We especially tender our sympathy +and condolence to those who are bound to him by the ties of blood +and strong personal affection. + +"_Resolved_, That the speaker appoint a committee of nine Members +of the House to attend the funeral of the late general as +representatives of this body. + +"_Resolved_, That a copy of these resolution be forwarded by the +clerk of the House to the family of General Sherman." + +Eloquent tributes were paid to his memory by Messrs. Cutcheon, +Grosvenor, Outhwaite, Henderson, Cogswell, Vandever, Wheeler and +Williams. + +General Sherman had expressed the desire that his body be buried +by the side of his wife in a cemetery in St. Louis. In February, +1890, on the occasion of his seventieth birthday, the members of +Ransom Post, Grand Army of the Republic, of which he was the first +commander, sent him many congratulatory letters and telegrams. In +replying to these, among other things he wrote: + +"I have again and again been urged to allow my name to be transferred +to the roster of some one of the many reputable posts of the Grand +Army of the Republic in New York, but my invariable answer has been +'no;' that Ransom Post has stood by me since its beginning and I +will stand by it to my end, and then that, in its organized capacity, +it will deposit my poor body in Calvary Cemetery alongside my +faithful wife and idolized 'soldier boy.' My health continues +good, so my comrades of Ransom Post must guard theirs, that they +may be able to fulfill this sacred duty imposed by their first +commander. God bless you all." + +I vividly recall the impressive scene in the city of New York when +his body was started on its long journey. The people of the city, +in silence and sadness, filled the sidewalks from 71st to Courtland +street, and watched the funeral train, and a countless multitude +in every city, town and hamlet on the long road to St. Louis +expressed their sorrow and sympathy. His mortal remains were +received with profound respect by the people of that city, among +whom he had lived for many years, and there he was buried by the +side of his wife and the children who had gone before him. + +In February, 1892, I was requested, by the New York Commandery of +the Military Order of the Loyal Legion, to deliver an address +commemorative of General Sherman. I did so, on the 6th of April +of that year but, as many of the incidents therein mentioned have +been already stated, I only add a few paragraphs from its close: + +"And here I might end, but there are certain traits and characteristics +of General Sherman upon which I can and ought to speak with greater +knowledge and confidence than of his military career. He was +distinguished, first of all, from his early boyhood, for his love +and veneration for, and obedience to, his mother. There never was +a time--since his appointment as a cadet, to her death--that he +did not insist upon sharing with her his modest pay, and gave to +her most respectful homage and duty. It is hardly necessary in +this presence to refer to his devotion to his wife, Ellen Ewing +Sherman. They were born in neighboring households, reared from +childhood in the same family, early attached and pledged to each +other, married when he reached the grade of captain, shared in +affection and respect the joys and sorrows of life, and paid the +last debt to nature within a few months of each other. + +"The same affection and care were bestowed upon his children. Many +of his comrades will recall the visit of his wife and his son +Willie, a lad of thirteen, at his camp on the Big Black, after the +surrender of Vicksburg. Poor Willie believed he was a sergeant in +the 13th United States Infantry. He sickened and died at Memphis +on his way home. No one who reads it but will remember the touching +tribute of sorrow his father wrote, a sorrow that was never dimmed, +but was often recalled while life lasted. + +"General Sherman always paid the most respectful attention to women +in every rank and condition of life--the widow and the orphan, the +young and the old. While he was often stern and abrupt to men, he +was always kind and gentle to women, and he received from them the +homage they would pay to a brother. His friendship for Grant I +have already alluded to, but it extended in a lesser degree to all +his comrades, especially those of West Point. No good soldier in +his command feared to approach him to demand justice, and everyone +received it if in his power to grant it. He shared with them the +hardships of the march and the camp, and he was content with the +same ration given to them. Simple in his habits, easy of approach, +considerate of their comfort, he was popular with his soldiers, +even while exacting in his discipline. The name of 'Uncle Billy,' +given to him by them, was the highest evidence of their affection. + +"He was the most unselfish man I ever knew. He did not seek for +high rank, and often expressed doubts of his fitness for high +command. He became a warm admirer of Abraham Lincoln as the war +progressed, and more than once expressed to him a desire for +subordinate duty. He never asked for promotion, but accepted it +when given. His letters to me are full of urgent requests for the +promotion of officers who rendered distinguished service, but never +for his own. When the bill for the retirement of officers at the +age of sixty-three was pending, he was excepted from its operation. +He telegraphed me, insisting that no exception should be made in +his favor, that General Sheridan should have the promotion and rank +of general, which he had fairly earned. This was granted, but +Congress with great kindness continued to General Sherman the full +pay of a general when he was placed on the retired list. + +"In his business relations he was bound by a scrupulous sense of +honor and duty. I never knew of him doing anything which the most +exacting could say was dishonorable, a violation of duty or right. +I could name many instances of this trait, which I will not, but +one or two cases will suffice. When a banker in California, several +of his old army friends, especially from the south, trusted him +with their savings for investment. He invested their money in good +faith in what were considered the very best securities in California, +but when Page, Bacon & Co., and nearly every banker in San Francisco, +failed in 1855, all securities were dishonored, and many of them +became worthless. General Sherman, though not responsible in law +or equity for a loss that common prudence could not foresee, yet +felt that he was 'in honor' bound to secure from loss those who had +confided in him, and used for that purpose all, or nearly all, of +his own savings. + +"So, in the settlements of his accounts in Louisiana, when he had +the entire control of expenditures, he took the utmost care to see +that every dollar was accounted for. He resigned on the 18th of +January, and waited until the 23rd of February for that purpose. +The same exact accountability was practiced by him in all accounts +with the United States. In my personal business relations with +him, I found him to be exact and particular to the last degree, +insisting always upon paying fully every debt, and his share of +every expense. I doubt if any man living can truly say that General +Sherman owes him a dollar, while thousands know he was generous in +giving in proportion to his means. He had an extreme horror of +debt and taxes. He looked upon the heavy taxes now in vogue as in +the nature of confiscation, and in some cases sold his land, rapidly +rising in value, because the taxes assessed seemed to him +unreasonable. + +"While the war lasted, General Sherman was a soldier intent upon +putting down what he conceived to be a causeless rebellion. He +said that war was barbarism that could not be refined, and the +speediest way to end it was to prosecute it with vigor to complete +success. When this was done, and the Union was saved, he was for +the most liberal terms of conciliation and kindness to the southern +people. All enmities were forgotten; his old friendships were +revived. Never since the close of the war have I heard him utter +words of bitterness against the enemies he fought, nor of the men +in the north who had reviled him. + +"To him it was a territorial war; one that could not have been +avoided. Its seeds had been planted in the history of the colonies, +in the constitution itself, and in the irrepressible conflict +between free and slave institutions. It was a war by which the +south gained, by defeat, enormous benefits, and the north, by +success, secured the strength and development of the republic. No +patriotic man of either section would willingly restore the old +conditions. Its benefits are not confined to the United States, +but extend to all the countries of America. Its good influence +will be felt by all the nations of the world, by opening to them +the hope of free institutions. It is one of the great epochs in +the march of time, which, as the years go by, will be, by succeeding +generations of freemen, classed in importance with the discovery +of America and our Revolutionary War. It was the good fortune of +General Sherman to have been a chief actor in this great drama, +and to have lived long enough after its close to have realized and +enjoyed the high estimate of his services by his comrades, by his +countrymen, and by mankind. To me, his brother, it is a higher +pride to know and to say that in all the walks of private life--as +a son, a brother, a husband, a father, a soldier, a comrade, or a +friend--he was an honorable gentleman, without fear and without +reproach." + + +CHAPTER LIX. +THE CAMPAIGN OF 1890-91 IN OHIO. +Public Discussion of My Probable Re-election to the Senate--My +Visit to the Ohio Legislature in April, 1891--Reception at the +Lincoln League Club--Address to the Members--Appointed by the +Republicans as a Delegate to the State Convention at Columbus--Why +My Prepared Speech Was Not Delivered--Attack on Me by the Cincinnati +"Enquirer"--Text of the Address Printed in the "State Journal"-- +Beginning of a Canvass with Governor Foraker as a Competitor for +the Senatorship--Attitude of George Cox, a Cincinnati Politician, +Towards Me--Attempt to Form a "Farmers' Alliance" or People's Party +in Ohio--"Seven Financial Conspiracies"--Mrs. Emery's Pamphlet and +My Reply to It. + +During the winter of 1890-91 the question of my re-election to the +Senate was the subject of newspaper discussion not only in Ohio, +but in other states. As a rule the leading newspapers in the +eastern states strongly favored my return to the Senate, and much +the larger number of Republican papers in Ohio expressed the same +desire. In the west, wherever the free coinage of silver was +favored, a strong opposition to me was developed. I had not +expressed any wish or intention to be a candidate and turned aside +any attempt to commit me on the subject. I could quote by the +score articles in the public prints of both political parties highly +complimentary to me, but most of these turned upon free coinage of +silver, which I did not regard as a political issue. + +After the adjournment of Congress on the 4th of March the Cincinnati +"Enquirer" formally announced, as "upon the assurance of the Senator +himself," that I would not again be a candidate for re-election. +The next day that paper repeated that a well-known Sherman man, +whose name was not given, said: "Your article is correct. Mr. +Sherman is not, nor will he be again, a candidate for the Senate." +Both declarations were without foundation, and I supposed the +intention of the "Enquirer" was to force a contest among Republicans +for the nomination. I paid no attention to these publications, +but they were the basis of comment in the newspapers in Ohio. The +discussion of this question extended to other states, and indicated +the desire of a large majority of the papers, east of the Mississippi +River, that I be re-elected. I insert an extract from a long +article in the Chicago "Inter-Ocean" of the 22nd of March, 1891: + +"The most important event looked for in 1892 is that of a successor +to John Sherman in Ohio, and already the matter is being discussed, +as well it might be, and the interest is by no means confined to +that state. John Sherman belongs to the whole country, and it is +no reflection upon the usefulness of any other public man to say +that his retirement to private life would be the greatest strictly +personal loss the nation could now maintain." + +I do not care to quote the many kindly opinions expressed of me at +that period. + +I returned to Ohio early in April on a brief visit to Mansfield, +and to pay my respects to the general assembly, then in session at +Columbus. At Mansfield I was met by a correspondent of the "Enquirer" +and answered a multitude of questions. Among others I was asked +if I would respond to the call of the members of the Ohio legislature +to meet them at Columbus. I answered: "Yes, I will go to Columbus +on Tuesday next, and from there to Washington, to return here with +my family in May for the summer." He said: "Is there any significance +in this Columbus visit?" I answered: "None whatever so far as I +know." In leaving he said: "Tell me, did your trip here at this +time have any reference to your fences, their building or repair?" +"No," I said, "I came here to build a barn. I am just about to +commence it." He bade me good-bye without saying a word about my +declining or being elected as Senator. + +I went to Columbus on the 7th, arriving late in the evening, but +not too late to meet many gentlemen and to give to a correspondent +of the "Commercial Gazette" an interview. On the next day, in +pursuance of a custom that has existed in Ohio for many years, I, +as a Senator elected by the legislature, was expected to make a +formal call upon that body when in session, and during my visit to +eschew politics. Accompanied by a committee of the senate I called +upon Governor Campbell. We were then and had always been personal +friends. He accompanied me to the senate, which took a recess, +when brief and complimentary addresses were made, and I thanked +the senate for the reception. After handshaking and pleasant talk +I was escorted to the house of representatives, where the same +simple ceremony was observed. I visited the state board of +equalization, then engaged in the important duty of equalizing the +taxes imposed in the several counties and cities of the state. At +their request I expressed my opinion of the system of taxation in +existence in Ohio, which I regarded as exceedingly defective by +reason of restrictive clauses in the constitution of the state +adopted in 1851. + +In the evening of this day I was invited to a reception at the +Lincoln League club. I insert the report published the next morning +in the "State Journal." + +"The reception to Senator John Sherman at the Lincoln League club +rooms last night was a rousing enthusiastic affair. The rooms were +crowded with members of the league and their friends, while most +of the state officials, members of the general assembly and the +state board of equalization were present. Several Democrats were +conspicuous in the crowd, and all parties, old men and young, vied +with each other in doing honor to Ohio's great statesman. During +the evening Governor Campbell, accompanied by his daughter, came +in to pay his respects to the distinguished guest and was cordially +received. He was called upon for a speech and responded briefly +in his usual happy vein. He expected to meet with the Republicans +this fall again and would assist at some one's obsequies, but just +whose it would be he did not know. + +"During the short visit the governor's daughter was the recipient +of marked attention, and divided honors with her father in +handshaking. + +"The feature of the evening was the welcome accorded Senator Sherman +and his speech. Everybody was eager to shake hands with him, and +for over an hour he was so engaged. + +"He was introduced by President Huling in his usual happy manner, +and responded feelingly in a short speech, which was received with +enthusiasm. Senator Sherman said: + +'Gentlemen:--I appear before you to-night, not as a partisan, not +as a Republican, although I do not deny my fraternity, nor as a +Democrat, but simply as a native son of Ohio. My friend has made +a very eloquent speech to you, but I have come to greet you all, +to thank you for the support that has been extended to me by the +people of Ohio, not only by those of my political faith, but also +those who have differed from me. I have often been brought in +contact with Democrats whom I cherish as my friends. You all know +your honored and venerable statesman, Allen G. Thurman. We differed +on political issues, but we never quarreled with each other. When +any question affecting the interests or prosperity of Ohio was +concerned we were like two brothers aiding each other. When we +came to discuss political questions, upon which parties divided, +we put on our armor. I knew that if I made the slightest error, +he would pick me up and handle me as roughly as anyone else, and +he expected the same of me. And so with Mr. Pendleton, who is now +dead. I regarded him as one of the most accomplished men I ever +met; always kind, always genial, possessing all the attributes of +a gentleman. When discussing any question affecting the interest +or honor of Ohio there was no difference of opinion between us. +When I met him a short time before his death, at Homburg, I felt +that I would not see him again. In politics there ought to be +kindness and fairness. Men of adverse opinions may be true friends +while they honestly differ on great public questions. + +'Now, gentlemen, I think I have said all I ought to say. This is +a social meeting and, as I understand it, you came here to greet +me as one of your public servants. I wish to express my obligations +to the people of Ohio for their generosity and for their long- +continued support. I am glad indeed to greet you and give you a +good Buckeye greeting. All I can do is to thank you.'" + +On the 6th of June I was appointed by the Republicans of Richland +county as a delegate to the state convention. In a brief speech +to the county convention, I said: + +"The next state convention will be a very important one in many +respects. In one or two matters the business has already been done. +It has been settled that Major McKinley will be nominated Governor +of Ohio, and that he will be elected. Of the balance of the ticket +I say nothing. There are so many good men for candidates that we +can make no mistake in any of them." + +Resolutions were adopted indorsing the platforms of the last state +and national conventions, declaring a belief in the doctrine of +protection to labor and American industries, and indorsing the +wisdom of the Republican party in continuing the advocacy of the +protective tariff. I was remembered by resolutions thanking me +for services rendered to the country, and Senators W. S. Kerr and +W. Hildebrand were complimented for their efficiency in the state +senate. + +A resolution indorsing William McKinley for unanimous nomination +for governor passed amidst enthusiastic applause. + +Upon attending the state convention at Columbus, on the 17th of +June, I was advised that objection would be made to my designation +as chairman, and that Mr. Bushnell would be pressed for that honor. +I promptly said I did not wish the position, and urged the selection +of Bushnell, who was fairly entitled to it for his active agency +as chairman of the state committee. The central committee had +invited me to address the convention, and I was prepared to do so, +but, feeling that after McKinley was unanimously nominated for +governor my speech would delay the convention in completing the +ticket, I declined to speak, but the convention insisted upon it, +and I did respond very briefly, saying I would hand my speech to +the "State Journal." Out of this incident the "Enquirer" made the +story that I had been "snubbed" by the convention, through the +influence of Governor Foraker and other gentlemen named by it. +The correct account of my action was stated in the "State Journal" +as follows: + +"After Major McKinley had finished speaking there were enthusiastic +calls for Senator Sherman. The demand became so vigorous that +General Bushnell was unable to secure quiet. Senator Sherman +marched down the middle aisle from his seat in his delegation just +under the balcony. Perhaps no one received such generous recognition +as did the senior Senator from Ohio. Although Senator Sherman had +prepared a speech he did not attempt to deliver it. He said he +had intended to insist on his right as a delegate not to hear any +more oratory, but, to proceed with the business of the convention. +He gave the 'State Journal' an appreciated compliment by advising +all the delegates who desired to know what his speech contained to +buy this morning's 'State Journal.' His remarks were felicitous +and he was frequently interrupted by applause." + +The prepared speech as published in the "Journal" gave satisfaction, +not only to the Republicans in Ohio, but was printed in many of the +leading journals of the United States. My refusal to deliver it +in the sweltering heat of the convention enabled that body to +rapidly clear the business it met to transact, and the unfounded +imputations about leading Republicans fell harmless. I insert this +speech: + +"My Fellow Republicans:--When I was invited with others to address +this convention, I felt that the best speech that could be made +was the convention itself. You are here to speak the voice of Ohio +in the choice of the chief officers of the state and to announce +the creed of a great party. Such bodies as this are the convenient +agencies of a free people to mark out the line of march and to +select their leaders. + +"When I look upon this great body of representative Republicans, +animated by a common purpose and inspired by a common faith in the +party to which we belong, my mind instinctively reverts to the +first Republican convention of Ohio, held in this city thirty-six +years ago. Then, under the impulse of a great wrong--the repeal +of the restriction of slavery north and west of Missouri--that +convention, remarkable in numbers and ability, composed of +representatives of all parties then in existence, pledged themselves, +that come what may, they would resist the extension of slavery over +every foot of territory where it was not then established by law. +There was no doubt or hesitation or timidity in their resolution, +though they knew they were entering into a contest with an enemy +that had never been defeated, that had dominated all parties, and +would resist to the uttermost, even to war, any attempt to curb +the political power of the most infamous institution that ever +existed among men. This was the beginning of the Republican party. + +"It was also the beginning of the most remarkable events of American +history. Since that day the Republican party has abolished slavery, +not only in the United States, but, by its reflected influence, in +nearly all the countries of the world. It has conducted a war of +gigantic proportions with marked success, demonstrating in the +strongest way the ability of a free people to maintain and preserve +its government against all enemies, at home and abroad. It has +established the true theory of national authority over every citizen +of the republic, without regard to state lines, and has forever +put at rest the pretense of the right of secession by a state or +any portion of our people. It has placed our country, in its +relations to foreign nations, in so commanding a position that none +will seek a controversy with us, while empires and kingdoms profit +by our example. It has, for the necessities of the time and the +warnings and follies of the past, marked out a financial system +which secures us a currency safe beyond all possibility of loss, +a coinage of silver and gold received at par in every commercial +mart of the world, and a public credit equal, if not superior, to +that of the oldest, richest and most powerful nations. It has, by +a policy of fostering and protecting our home industries, so +diversified our productions that every article of necessity, luxury, +art or refinement can be made by American labor, and the food and +fruits of a temperate climate, and cotton, wool and all the textile +fibres, can be raised on the American farm. + +"Under Republican policy, sometimes embarrassed but never changed, +our country has become _free_, without a slave; strong, without +standing armies or great navies; rich, with wealth better distributed, +labor better paid, and equality of rights better secured, than in +any country in the world. All the opportunities of life, without +distinction of birth or rank or wealth, are open to all alike. +Education is free, without money or price. Railroads, telegraphs +and all the wonderful devices of modern civilization are at our +command. Many of these blessings are the natural results of our +free institutions, the work of our fathers, but they have been in +every case promoted and fostered by the policy of the Republican +party. We, therefore, can honestly claim that our party has been +a faithful servant of the people and is fairly entitled to their +confidence and support. + +"But we do not rest our claims upon this fact alone. We do not +need to muster the great names that have marched at the head of +our columns to their final rest to invoke your approval. We invite +the strictest scrutiny into the conduct of the present Republican +administration of Benjamin Harrison. He was not as well known to +the people at large, at the time of his election, as many former +Presidents, for the politics of Indiana do not give a Republican +of that state a fair chance to demonstrate his capacity and ability, +but my intimate acquaintance and companionship with him, sitting +side by side for six years in the Senate Chamber, impressed me with +the high intellectual and moral traits which he has exhibited in +his great office. + +"The issues now involved are not so great and pressing as in the +days of Abraham Lincoln and Ulysses Grant, but they do directly +affect the life, comfort and happiness of every citizen of the +United States. The recent Republican Congress, in connection with +President Harrison, has dealt with all leading domestic questions +of the time and with the most important questions with foreign +nations. Every one of these has either been settled or is in the +way of settlement. + +"The administration of Mr. Cleveland settled nothing but the sublime +egotism of Mr. Cleveland, his opposition to the protection policy, +his want of sympathy for the Union soldiers and his narrow notions +of finance and the public credit. He devised nothing and accomplished +nothing. A Democratic House passed the Mills tariff bill, but it +was rejected by the Senate and by the people in the election of +1888. It was neither a protective tariff nor a revenue tariff, +but a mongrel affair made up of shreds and patches furnished here +and there by Democratic Members to suit their local constituencies. +This abortive measure was the only one of any mark or importance +proposed by Mr. Cleveland, or passed by a Democratic House of +Representatives. + +"In marked contrast with this is the Republican administration of +Harrison and the recent Republican Congress. Mr. Harrison, with +the slow, thoughtful, conservative tendencies of his mind, gave +careful consideration to every proposition that came before him, +and announced his opinion in his messages to Congress. The House +of Representatives, having cleared the way by the decision and +courage of Speaker Tom Reed that the majority should rule, proceeded +to transact the public business, and the Senate, in hearty concurrence +and co-operation, acted upon every important measure pending before +Congress. The first in importance, though not in point of time, +was an entire revision of our revenue laws. This bill was subjected +to the most careful scrutiny in both Houses, and was passed as a +Republican measure, and approved by the President. It is the law +of the land, though some of its provisions have not yet taken +effect. It is, in my judgment, a wise law, and will bear the most +careful scrutiny. It may be that in its details, in the rates of +duty, the precise line between enough to protect and more than is +necessary, is not observed, but this error in detail does not weaken +the essential merits of this great measure. I do not intend to +discuss it in the presence of a gentleman now before me, who had +charge of the bill in the House, who is, in a great measure, the +author of it, and whose effective advocacy carried it over the +shoals and rocks in the House of Representatives. You will greatly +and justly honor him this day, but not more than he deserves, and +you will have a chance to hear from him as to its merits. It is +sufficient now for me to state, very briefly, why I heartily +supported it in the Senate. + +"In the first place it is a clear-cut, effective measure that will +make explicit the rates of duties proposed; will prevent, as far +as the law can, any evasion or undervaluation. It is in every line +and word a protective tariff. It favors, to the extent of the +duty, the domestic manufacturer, and will induce the production +here of every article suited to our condition and climate. It is +a fair law, for it extends its benefits not only to the artisan, +but, to the farmer and producer in every field of employment. I +know, by my long experience in passing upon tariff bills, that the +McKinley bill more carefully and beneficially protects the farmer +in his productions than any previous measures of the kind. And +its inevitable effect in encouraging manufactures will give to the +farmer the best possible market for his crops. The bill has +received, and will bear, discussion, and will improve on acquaintance. +The new features of the bill relating to sugar and tin plate will +soon demonstrate the most satisfactory results. Sugar will be +greatly lowered in cost to the consumer, while the bounty given to +the domestic producer will soon establish the cultivation of beet +and sorghum sugar in the United States, as the same policy has done +in Germany and France. The increased duty soon to be put upon tin +plate will develop, and has already developed, tin mines in several +states and territories, so that we may confidently hope that in a +short period we will be sweetened by untaxed home sugar, and +protected by untaxed tin plate. The arts of the demagogue, which +were at the last election played upon the credulous to deceive them +as to the effects of the McKinley bill, will return to plague the +inventors, and this Republican measure, with its kindred measures, +reciprocity and fair play to American ships, will be among the +boasted triumphs of our party, in which our Democratic friends +will, as usual, heartily acquiesce. + +"There is another question in which the people are vitally interested, +and that is the currency question. They want good money and plenty +of it. They want all their money of equal value, so that a dollar +will be the same whether it is made of gold or silver or paper. +We have had this kind of money since the resumption of specie +payments in January, 1879. Nobody wants to go back to the old +condition of things when it was gold to the bondholders and paper +to the pensioners. When the outstanding government bonds were +fifteen hundred millions, and banks could issue paper money upon +the deposit of bonds, the volume of currency could expand upon the +increase of business. But that condition is passing away. The +bonds are being paid, and the time is coming, and has come, when +the amount of bonds is so reduced and their value is so increased +that banks cannot afford to buy bonds upon which to issue circulating +notes. + +"We must contemplate the time when the national banks will not +issue their notes, but become banks of discount and deposit. The +banks are evidently acting upon this theory, for they have voluntarily +largely reduced their circulation. How shall this currency be +replaced? Certainly not by the notes of state banks. No notes +should circulate as money except such as have the sanction, authority +and guarantee of the United States. The best for of these is +certificates based upon gold and silver of value equal to the notes +outstanding. Nor should any distinction be made between gold and +silver. Both should be received at their market value in the +markets of the world. Their relative value varies from day to day +and there is no power strong enough to establish a fixed ratio of +value except the concurrence of the chief commercial nations of +the world. We coin both metals at a fixed ratio, but we maintain +them at par with each other by limiting the amount of the cheaper +metal to the sum needed for subsidiary coin and receiving and +redeeming it. + +"The demand for the free coinage of silver without limit, is a +demand that the people of the United States shall pay for silver +bullion more than its market price; a demand that is not and ought +not to be made by the producer of any commodity. There is no +justice or equity in it. If granted by the United States alone it +will demonetize gold and derange all the business transactions of +our people. What we ought to do, and what we now do under the +silver law of the last Congress, a conservative Republican measure, +is to buy the entire product of silver mined in the United States +at its market value, and, upon the security of that silver deposited +in the treasury, issue treasury notes to the full amount of the +cost of the bullion. In this way we add annually to our national +currency circulating notes of undoubted value, equal to gold to an +amount equal to or greater than the increase of our population and +the increasing business for our growing country. + +"There is another measure to which the Republican party is bound +by every obligation of honor and duty, and that is to grant to the +Union soldiers of the late war, their widows and orphans, liberal +pensions for their sacrifices and services in the preservation of +the Union. In the language of Lincoln, 'To bind up the nation's +wounds, to care for him who shall have borne the battle and for +his widow and his orphan.' Impressed with this obligation, the +Republican party has gone as far as prudence will allow. We +appropriate $135,000,000 a year for this purpose. Though the sum +is large, it is not the measure of our obligation. The rising +generation who will bear this burden must remember the immeasurable +blessings they enjoy by the sacrifices and services of Union soldiers +in the preservation of the Union and in a strong republican government +and free institutions. + +"There is another obligation which we, as Republicans, cannot ignore +without being false to our party pledges, and that is to use every +legal means to secure all citizens their constitutional rights and +privileges as such, without respect to race and color. Fortunately, +time is promoting this great duty, but it must never be forgotten +or neglected until every lawful voter shall freely exercise his +right to vote without discrimination or favor. + +"This is not the time for a fuller discussion of the many political +questions which will enter into the canvass. The great tribunal +of the people must pass upon them in their assemblages. I hope we +will go back to the old-fashioned mass meetings in the beautiful +groves of our state, where old and young, women as well as men, +can gather together with their baskets well-filled, their minds +open to conviction, their hearts full of patriotism, to listen and +judge for themselves the path of duty, the lines of wisdom, the +proper choice between the parties claiming their suffrages. +Fortunately, there is now no bitterness between parties, nothing +that can justify abuse, or reproach, for we must all concede the +honesty and desire of members of all parties to do what is best +for the common good. We must not meet as farmers, mechanics, or +partisans, but as fellow-citizens and patriots, alike interested +in all measures of national or state legislation. If any public +measure bears unjustly upon any class of our population we are all +interested in providing a remedy. The farmers of our country +sometimes complain that they do not share in the common prosperity, +that the prices they receive for their products are too low, that +they pay more than their share of the taxes. + +"So far as these complaints may be met by wise legislation it should +be done by Congress and our state legislature. The Republican +party is wise enough and liberal enough to meet the just demands +of all classes, and, especially, of the farmers, the great conservative +and controlling portion of our population, and they are patriotic +enough not to demand measures not sanctioned by reason and experience, +and not consistent with the common good or the credit and honor of +our country. The Republican party has shown its capacity to deal +wisely with many more difficult questions of the past, and may be +relied upon to solve wisely the questions of a peaceful and prosperous +future. Strong now at home our country may extend its moral +influence to neighboring republics, encourage trade and intercourse +with them, and invite a broader union founded upon common interests, +sympathies, and free institutions. + +"The State of Ohio is an important factor in this great union of +states and people. Ohio is a Republican state, one that has taken +a conspicuous part in the great drama of the past. In an evil +hour, and under wild delusions, Ohio elected the recent Democratic +legislature. With this warning behind us let us not be backward +or laggard in the civic contest in November; but, with a ticket +worthy of our choice, let us appeal to our fellow-citizens to place +again our honored state at the head of the Republican column." + +While the statement in the "Enquirer" and in other Democratic papers +was not, in my opinion, true, yet the charge of a purpose on the +part of the members of the convention to humiliate or "snub" me, +by inviting me to address the convention and then denying me the +opportunity, led to a very general popular discussion of the +selection of United States Senator by the legislature then to be +elected. The choice seemed, by general acquiescence, to rest +between Governor Foraker and myself in case the Republicans should +have a majority of the legislature. There could be no difference +as to the weight of public opinion outside of Ohio, as represented +by the leading journals of both political parties. Even such +independent papers as the Chicago "Evening Post," the "Boston +Herald," the Springfield (Massachusetts) "Republican" and the New +York "Evening Post," and I can say the great body of the Republican +journals in the State of Ohio, warmly urged my re-election. With +this general feeling prevailing I considered myself a candidate, +without any announcement, and entered into the canvass as such. +I also regarded Governor Foraker as my competitor fairly entitled +to aspire to the position of Senator, though he did not, at first, +publicly announce his candidacy. Young, active and able, with a +brilliant military record vouched for by General Sherman, twice +elected Governor of Ohio, he was justified in entering the contest. +In the latter part of June he was reported to have said that I +would be re-elected, but this was regarded in a Pickwickian sense. +Candidates for the legislature were chosen in many counties according +to senatorial preferences, but, so far as I recall, there was no +contest over such nominations bitter enough to cause the defeat of +any nominee. + +No serious difficulty arose until the latter part of July, when I +was advised that George B. Cox, a well-known politician in Cincinnati, +who, it was understood, controlled the Republican primaries in that +city, would not allow any man to be nominated for either branch of +the legislature who did not specifically agree to vote for whoever +he (Cox) should designate as United States Senator. This I regarded, +if the statement were true, as a corrupt and dangerous power to be +conferred upon any man, which ought not to be submitted to. I went +to Cincinnati, partly to confer with Foraker, and chiefly in +pursuance of a habit of visiting that city at least once a year. +I met Foraker, and he promptly disclaimed any knowledge of such a +requirement in legislative nominations. Cox also called upon me, +and said the delegation would probably be divided between Foraker +and myself. I could say nothing more to him. Foraker gave a +written answer to an inquiry of the "Commercial Gazette," in which +he said he was a candidate, and no one knew it better than I. This +was quite true and proper. In a published interview I said: + +"Governor Foraker and I have always been friends, and I am always +glad to see him. He has a right to the position he has taken in +regard to the senatorship, and it is a proper one. One man has +just as much right to try it as another." + +"Are McKinley and Butterworth candidates for Senator?" + +"I do not know, but they have a right to be." + +The only question that remained was whether Cox had a delegation +pledged to obey his wish, and this was to be ascertained in the +future. + +During the spring and summer of 1891 there was an attempt to organize +a new party in Ohio, under the name of the Farmers' Alliance, or +People's party, based mainly upon what were alleged to be "seven +financial conspiracies." These so-called "conspiracies" were the +great measures by which the Union cause was maintained during and +since the war. The Alliance was greatly encouraged by its success +in defeating Senator Ingalls and replacing him by Senator Peffer, +and proposed that I should follow Ingalls. Pamphlets were freely +distributed throughout the state, the chief of which was one written +by a Mrs. Emery, containing ninety-six pages. I was personally +arraigned in this pamphlet as the "head devil" of these conspiracies, +and the chief specifications of my crimes were the laws requiring +the duties on imported goods to be paid in coin, the payment in +coin of the principal and interest of the public debt, the act to +strengthen the public credit, the national banking system, and, in +her view, the worst of all, the resumption of specie payments. + +At first I paid no attention to this pamphlet, but assumed that +intelligent readers could and would answer it. In October I received +a letter calling my attention to it and asking me to answer it. +This I did by the following letter which I was advised had a +beneficial effect in the western states, where the pamphlet was +being mainly circulated: + + "Mansfield, O., October 12, 1891. +"Mr. Charles F. Stokey, Canton, O. + +"My Dear Sir:--Yours of the 8th, accompanied by Mrs. S. E. V. +Emery's pamphlet called 'Seven Financial Conspiracies Which Have +Enslaved the American People,' is received. + +"Some time since, this wild and visionary book was sent to me, and +I read it with amusement and astonishment that anyone could approve +of it or be deceived by its falsehoods. + +"The 'seven financial conspiracies' are the seven great pillars of +our financial credit, the seven great financial measures by which +the government was saved from the perils of war and by which the +United States has become the most flourishing and prosperous nation +in the world. + +"The first chapter attributes the Civil War to an infamous plot of +capitalists to absorb the wealth of the country at the expense of +the people, when all the world knows that the Civil War was organized +by slaveholders to destroy the national government and to set up +a slaveholding confederacy in the south upon its ruins. The +'Shylock,' described by Mrs. Emery, is a phantom of her imagination. +The 'Shylocks of the war' were the men who furnished the means to +carry on the government, and included in their number the most +patriotic citizens of the northern states, who, uniting their means +with the services and sacrifices of our soldiers, put down the +rebellion, abolished slavery, and preserved and strengthened our +government. + +"The first of her 'conspiracies' she calls the exception clause in +the act of February 25, 1862, by which the duties on imported goods +were required to be paid in coin in order to provide the means to +pay the interest on coin bonds in coin. This clause had not only +the cordial support of Secretary Chase, but of President Lincoln, +and proved to be the most important financial aid of the government +devised during the war. Goods being imported upon coin values, it +was but right that the duty to the government should be paid in +the same coin. Otherwise the duties would have been constantly +diminishing with the lessening purchasing power of our greenbacks. +If the interest of our debt had not been paid in coin, we could +have borrowed no money abroad, and the rate of interest, instead +of diminishing as it did, would have been largely increased, and +the volume of our paper money would necessarily have had to be +increased and its value would have gone down lower and lower, and +probably ended, as Confederate money did, in being as worthless as +rags. This exception clause saved our public credit by making a +market for our bonds, and the coin was paid by foreigners for the +privilege of entering our markets. + +"As for the national banking system--the second of her 'conspiracies' +--it is now conceded to have produced the best form of paper money +issued by banks that has ever been devised. It was organized to +take the place of the state banks, which, at the beginning of the +war, had outstanding over $200,000,000 of notes, of value varying +from state to state, and most of them at a discount of from five +to twenty-five per cent. It was absolutely necessary to get rid +of these state bank notes and to substitute for them bank notes +secured beyond doubt by the deposit of United States bonds, a system +so perfect that from the beginning until now no one has lost a +dollar on the circulating notes of national banks. The system may +have to give way because we are paying off our bonds, but no sensible +man will ever propose in this country to go back to the old system +of state banks, and if some security to take the place of United +States bonds can be devised for national bank notes, the system +will be and ought to be perpetuated. + +"The third 'conspiracy' referred to is contraction of the currency. +It has been demonstrated by official documents that from the +beginning of the war to this time the volume of our currency has +been increasing, year by year, more rapidly than our population. +In 1860 the total amount of all the money in circulation was +$435,000,000, when our population was 31,000,000, and half of this +was money of variable and changing value. Now we have in circulation +$1,500,000,000, with a population of 64,000,000, and every dollar +of this money is good as gold, all kinds equal to each other, +passing from hand to hand and paid out as good money, not only in +the United States but among all the commercial countries of the +world. Our money has increased nearly fourfold, while our population +has only doubled. + +"The statements made by Mrs. Emery about the contraction of our +currency are not only misleading but they are absolutely false. +She states that in 1868 $473,000,000 of our money was destroyed, +and in 1869 $500,000,000 of our money passed into a cremation +furnace, and in 1870 $67,000,000 was destroyed. Now these statements +are absolutely false. What she calls money in these paragraphs +was the most burdensome form of interest-bearing securities, treasury +notes bearing seven and three-tenths per cent. interest, and compound +interest notes. These were the chief and most burdensome items of +the public debt. They were paid off in the years named and were +never at any time for more than a single day money in circulation. +When issued they were received as money, but, as interest accrued +they became investments and were not at all in circulation. + +"These statements of Mrs. Emery are palpable falsehoods, which if +stated by a man would justify a stronger word. It is true that in +1866 Mr. McCulloch, Secretary of the Treasury under the administration +of Andrew Johnson, wished to bring about resumption by contraction, +and a bill was passed providing for a gradual reduction of the +greenbacks to $300,000,000, but this was very soon after repealed +and the greenbacks retained in circulation. I was not in favor of +the contraction of the greenbacks, and the very speech that she +quotes, in which I described the effects of contraction and the +difficulty of resuming, was made against the bill providing for +the reduction of the greenbacks. + +"The next 'conspiracy' to which she refers was the first act of +General Grant's administration 'to strengthen the public credit.' +A controversy had existed whether the 5-20 bonds could be paid in +greenbacks. I maintained and still believe that by a fair construction +of the loan laws we had a right to pay the principal of the bonds +as they matured in greenbacks of the kind and character in existence +when the bonds were issued, but I insisted that it was the duty of +the government to define a time when the greenbacks should be either +redeemed or maintained at par in coin, that this was a plain +obligation of honor and duty which rested upon the United States, +and that it was not honorable or right to avail ourselves of our +own negligence in restoring these notes to the specie standard in +order to pay the bonds in the depreciated money. This idea is +embodied in the credit-strengthening act. + +"The fifth 'conspiracy' of what she calls 'this infernal scheme' +was the refunding of the national debt. This operation of refunding +is regarded by all intelligent statesmen as of the highest value, +and was conducted with remarkable success. At the date of the +passage of the refunding act, July 14, 1870, we had outstanding +bonds bearing five and six per cent. interest for about $1,500,000,000. +By the wise providence of Congress, we had reserved the right of +redeeming a portion of this debt within five years, and a portion +of it within ten years, so that the debt was, in the main, then +redeemable at our pleasure. It was not possible to pay it in coin +and it was not honorable to pay it in greenbacks, especially as +that could only have been done by issuing new greenbacks far beyond +the volume existing during the war, and which would at once depreciate +in value and destroy the public credit and dishonor the country. +We, therefore, authorized the exchange, par for par, of bonds +bearing four, four and a half, and five per cent. interest for the +bonds bearing a higher rate of interest. The only contest in +Congress upon the subject was whether the new bonds should run +five, ten and fifteen years, or ten, fifteen and thirty years. I +advocated the shorter period, but the House of Representatives, +believing that the new bonds would not sell at par unless running +for a longer period, insisted that the four per cent. bonds should +run for thirty years. Greenbackers, like Mrs. Emery, who now +complain that the bonds run so long and cannot be paid until due, +are the same people who insisted upon making the bonds run thirty +years. It required some ten years to complete these refunding +operations--of which the larger part was accomplished when I was +Secretary of the Treasury--and they resulted in a saving of one- +third of the interest on the debt. So far from it being in the +interest of the bondholders, it was to their detriment and only in +the interest of the people of the United States. + +"The next 'conspiracy' complained of is the alleged demonetization +of silver. By the act revising the coinage in 1873, the silver +dollar, which had been suspended by Jefferson in 1805 and practically +demonetized in 1835 and suspended by minor coins in 1853, and which +was issued only in later years as a convenient form in which to +export silver bullion, and the whole amount of which, from the +beginning of the government to the passage of the act referred to, +was only eight million dollars, was, by the unanimous vote of both +Houses of Congress, without objection from anyone, dropped from +our coinage, and in its place, upon the petition of the legislature +of California, was substituted the trade dollar containing a few +more grains of silver. A few years afterwards, silver having fallen +rapidly in market prices, Congress restored the coinage of the +silver dollar, limiting the amount to not exceeding four million +nor less than two million a month, and under ths law in a period +of twelve years we issued over 400,000,000 silver dollars, fifty +times the amount that had been coined prior to 1873. And now under +existing law we are purchasing 54,000,000 ounces of silver a year; +so that what she calls the demonetization of silver has resulted +in its use in our country to an extent more than fiftyfold greater +than before its demonetization. + +"In spite of this, in consequence of the increased supply of silver +and the cheapening processes of its production, it is going down +in the market and is only maintained at par with gold by the fiat +of the different governments coining it. Now the deluded people +belonging to the class of Mrs. Emery are seeking to cheapen the +purchasing power of the dollar, in the hands of the farmer and +laborer, by the free coinage of silver and the demonetization of +gold. Silver and gold should be used and maintained as current +money, but only on a par with each other, and this can only be done +by treating the cheaper metal as subsidiary and coining it only as +demanded for the use of the people. + +"The seventh 'financial conspiracy' is the pride and boast of the +government of the United States, the restoration of our notes, long +after the war was over, to the standard of coin; in other words, +the resumption of specie payments. This measure, which met the +violent opposition of such wild theorists as Mrs. Emery, has +demonstrated its success, in the judgment of all intelligent people, +not only in the United States, but in all the countries of the +world. There is no standard for paper money, except coin. The +United States postponed too long the restoration of its notes to +coin standards. Since it had the courage to do this under the +resumption act, on the 1st day of January, 1879, we have had in +the United States a standard of gold with coins of silver, nickel +and copper, maintained at that standard by the fiat of the government, +and paper money in various forms, as United States notes, national +bank notes, gold certificates, silver certificates, and treasury +notes, all at par with gold. + +"To call this a 'conspiracy' or an 'infamous plot' is a misnomer +of terms which will not deceive any intelligent man, but it is +rather the glory and pride of the people of the United States that +it not only has been able, in the past thirty years, to put down +a great rebellion and to abolish slavery, but to advance the credit +of the United States to the highest rank among nations, to largely +increase the currency of the country, to add enormously to our +productive interests, and to develop the resources of the mine, +the field, and the workshop, to a degree unexampled in the history +of nations. Intelligent people, who reason and observe, will not +be deceived or misled by the wild fanaticism and the gloomy prophecies +of Mrs. Emery. Temporary conditions growing out of the failure of +any portion of our crops will not discourage them; the exaggerations +of the morbid fancy will not mislead them. + +"A candid examination of the great financial measures of the last +thirty years will lead people to name what Mrs. Emery calls 'the +seven financial conspiracies' as the seven great, wise and +statesmanlike steps which have led the people of the United States, +through perils and dangers rarely encountered by any nation, from +a feeble confederacy with four millions of slaves, and discordant +theories of constitutional power, to a great, free republic, made +stronger by the dangers it has passed, a model and guide for the +nations of the world. + +"As for Mrs. Emery's criticisms upon me personally, I do not even +deem them worthy of answer. She repeats the old story that I was +interested in the First National Bank of New York and gave it the +free use of the people's money. This is a plain lie, contradicted +and disproved over and over again. I never had the slightest +interest in the bank, direct or indirect, and, as the public records +will show, gave it no favors, but treated it like all other +depositaries of public money and held it to the most rigid +accountability; nor have I in any case derived the slightest +pecuniary benefit from any measure either pending in or before +Congress since I have been in public life. + + "Very truly yours, + "John Sherman." + +I had faith in the good sense and conservative tendencies of the +people, and believed they would not be deluded by such fantasies +and fallacies as were contained in the platform of the People's +party. That party made a very active canvass, and expected, as a +prominent member of it said, "to hold the balance of power in the +legislature and dictate who the next United States Senator from +Ohio shall be, and you may depend upon it that that man will not +be John Sherman." + +This Alliance subsequently changed its ground from irredeemable +paper money to the free coinage of silver. Professing to care +for the farmers and laborers it sought in every way to depreciate +the purchasing power of their money. + + +CHAPTER LX. +FREE SILVER AND PROTECTION TO AMERICAN INDUSTRIES. +My Views in 1891 on the Free Coinage of Silver--Letter to an Ohio +Newspaper on the Subject--A Problem for the Next Congress to Solve +--Views Regarding Protection to American Industries by Tariff Laws +--My Deep Interest in This Campaign--Its Importance to the Country +at Large--Ohio the Battle Ground of These Financial Questions-- +Opening the Campaign in Paulding Late in August--Extracts from My +Speech There--Appeal to the Conservative Men of Ohio of Both Parties +--Address at the State Fair at Columbus--Review of the History of +Tariff Legislation in the United States--Five Republican Principles +Pertaining to the Reduction of Taxes--Speeches at Cleveland, Toledo, +Cincinnati and Elsewhere--McKinley's Election by Over 21,000 +Plurality. + +In the progress of the canvass of 1891 it was apparent that the +farmers of Ohio would not agree to free coinage of silver, and +divided as usual between the two great parties. In the heat of +this contest I wrote to the "Cyclone" the following letter: + + "Mansfield, O., July 7, 1891. +"Editors 'Cyclone,' Washington C. H. + +"My Dear Sirs:--In answer to your letter of the 6th, I can only +say that my views on the question of the free coinage of silver +are fully stated in the speech I made at the last session of the +Senate, a copy of which I send you, and I can add nothing new to it. + +"I can appreciate the earnest demand of the producers of silver +bullion, that the United States should pay $1.29 an ounce for silver +bullion which in the markets of the world has been for a series of +years worth only about one dollar an ounce--sometimes a little +more, sometimes a little less, but I cannot appreciate why any +farmer or other producer should desire that the government should +pay for any article more than its market value. The government +should purchase the articles it needs, like all other purchasers, +at the market price. The distinction sought to be made in favor +of silver is without just foundation. The government now buys in +the open market more than the entire domestic production of silver +bullion, because it needs it for coinage and as the basis of treasury +notes. I gladly contributed my full share to this measure, and +would do anything in my power to advance the market value of silver +to its legal ratio to gold, but this can only be done in concert +with other commercial nations. The attempt to do it by the United +States alone would only demonstrate our weakness. + +"To the extent that the enormous demand made by the existing law +advances the price of silver, the producer receives the benefit, +and to-day the production of silver is probably the most profitable +industry in the United States. To ask more seems to me unreasonable, +and, if yielded to, will bring all our money to the single silver +standard alone, demonetize gold and detach the United States from +the standards of the great commercial nations of the world. The +unreasonable demand for the free coinage of silver has nothing to +do with the reasonable demand for the increase of the volume of +money required by the increase of business and population of the +United States. + +"We have provided by existing laws for the increase of money to an +amount greater than the increase of business and population; but, +even if more money is required, there are many ways of providing +it without cheapening its purchasing power, or making a wide +difference between the kinds of money in circulation based on silver +and gold. More than ninety-two per cent. of all payments is now +made in checks, drafts and other commercial devices. All kinds of +circulating notes are now equal to each other and are kept at the +gold standard by redemption and exchange. Our money and our credit +are now equal to or better than those of the most civilized nations +of the world, our productions of every kind are increasing, and it +seems to me almost a wild lunacy for us to disturb this happy +condition by changing the standard of all contracts, including +special contracts payable in gold, and again paying gold to the +capitalists, and silver (at an exaggerated price) to the farmer, +laborer and pensioner. + +"I would not be true to my conviction of what is best for the good +of my constituents if I did not frankly and firmly stand by my +opinions, whatever may be the effect upon me personally. My greatest +obligations have been to the farmers of Ohio, and I would be unworthy +of their trust and confidence if I did not beseech them to stand +by the financial policy which will secure them the best results +for their labor and productions, and the comfort and prosperity of +all classes alike. + + "Very truly yours, + "John Sherman." + +When this letter was written the demand for the free coinage of +silver was at its height. I knew that my position was not a popular +one, yet felt confident that in the end the people would become +convinced that no change should be made in the standard of value +then existing, and that the use of silver as money should be +continued and it should be maintained at par with gold, but that +when the volume of it became so great as to threaten the demonetization +of gold, its coinage should be discontinued and silver bullion in +the treasury should be represented by treasury notes in circulation +equal in amount to the cost of the silver bullion. This was the +basis of the act of 1890, but, unfortunately, the amount of silver +bullion produced in the United States and in the world at large so +rapidly increased that it continually declined in market value. +Every purchase of it entailed great loss to the United States. +How to deal with this condition was the problem for the next Congress +to solve. + +On the 31st of August, in response to an inquiry from the editor +of the "Citizen," a newspaper published in Urbana, Ohio, I wrote +the following letter in regard to the policy of protection to +American industries by tariff laws: + +"A protective tariff was the first measure provided by the first +Congress of the United States. No nation can be independent without +a diversity of industries. A single occupation may answer for an +individual, but a nation must be composed of many men of many +employments. Every nation ought to be independent of other nations +in respect to all productions necessary for life and comfort that +can be made at home. These are axioms of political economy so +manifestly true that they need no demonstration. The measure of +protection is a proper subject of dispute, but there should be no +dispute as to the principle of protection in a country like ours, +possessing almost every raw material of nature and almost every +variety of productions. We have prospered most when our industries +have been best protected. The vast variety of our manufactures, +now rivaling in quantity those of countries much older than ours, +is the result of protection. + +"Every President, from Washington down to Jackson, inclusive, +declared in favor of the principle of protection. Every eminent +statesman of the early period, including Calhoun, favored this +policy. The owners of slaves, engaged chiefly in the production +of cotton, became hostile to protection, and, with those engaged +in foreign commerce, were the representative free traders of the +United States. Now that slavery is abolished and the south has +entered upon the development of her vast natural resources, and it +has been proven that our foreign commerce is greater under protective +laws, there should be no opposition in any portion of our country +to the protection of American industry by wise discriminating +duties. + +"The principle of protection should be applied impartially and +fairly to all productions, whether of the workshop or the farm. +The object is to diversify employment and to protect labor, and +this protection should be impartially applied without respect to +the nature of the production. All experience has established the +invariable fact that domestic production, by inducing competition, +in a brief period, lowers the price of all protected articles. In +the whole range of productions this result has been universal. +Whenever it is apparent that a new industry can be established, as +is the case now with the manufacture of tin plate, it is good policy +to give to the industry a liberal degree of protection, with the +assurance that if we have the raw material on equal conditions we +can after a time compete with the imported article. + +"The policy of a nation upon economic questions should be fixed +and stable. The McKinley law, as now framed, though it may be open +to criticism as to details, is a strictly protective measure, fair +and just as applied to all industries, with ample provisions to +secure reciprocity in the exchange of domestic productions for +articles we cannot produce. It ought to be thoroughly tested by +the experience of several years. It is not good policy to disturb +it or keep the public mind in suspense about it. It will, as I +think, demonstrate its wisdom, but if not, with the light of +experience, it can be modified. The highest policy and the greatest +good to our people lie in the full trial of this effort, to establish, +upon a firm foundation, the domestic production of every article +essential to American life and independence." + +These two letters, on the "free coinage of silver" and the "McKinley +tariff law," frankly expressed my opinions on the salient questions +of the day. With respect to the principles that underlie the policy +of protection, I have already stated my opinions in commenting upon +the Morrill tariff law. No general tariff bill has passed during +my service in Congress that met my entire approval. It is easy to +formulate general principles, but when we come to apply them to +the great number of articles named on the tariff list, we find that +the interests of their constituents control the action of Senator +and Members. The McKinley tariff bill was not improved in the +Senate. The compact and influential delegation from New England +made its influence felt in support of industries pursued in that +section, while the delegations from other sections were divided on +party lines. The tariff law was not, therefore, consistent with +any general principle, but it was nearer so than the one in force +before its passage, and the necessity of passing some law that +would reduce taxation was so imperative that the differences between +the two Houses were readily compromised. The execution of the +McKinley law under President Harrison demonstrated that it would +furnish ample revenue to support the government, and it should have +remained on the statute book with such slight changes as experience +might have shown to be necessary. The Democratic party, however, +was opposed to the protective features of this law, took advantage +of its defects, and, subsequently, when that party came into power, +it unwisely undertook to make a new tariff which has proven to be +insufficient to yield the needed revenue, and thus created the +necessity of using, for current expenses, the reserve of gold +specially accumulated in the treasury for the redemption of United +States notes. + +I felt the deepest interest in this campaign, not from the selfish +desire to hold longer an office I had held for nearly thirty years, +but I thought that in Ohio we were to have a great financial battle, +upon the result of which might depend the monetary system of the +United States. On the 17th of August I said to a reporter: + +"The people of the east do not seem to understand this campaign. +They do not appear to have any comprehension of what it means to +them as well as the country. No matter what their differences upon +the tariff question may be, every Republican who wishes the success +of his party should be made to understand that there is another +and perhaps a graver question to be settled in Ohio this year. +While our politics for the past few campaigns have hinged upon +minor questions, we are to-day brought back to the financial problem +which we all thought had been settled, in 1875, when Mr. Hayes won +the fight for an honest dollar against Governor Allen, who represented +the liberal currency idea. Then it came in the guise of greenbacks, +and now it comes in the garb of free silver. That conflict made +Mr. Hayes President of the United States. What the decision may +be this year no man can tell." + +I further said the arguments that year were identically the same +as in the Hayes and Allen contest if the word "silver" were +substituted for "greenbacks." The Democrats had declared for +unlimited coinage, and we had declared against it. The Farmers' +Alliance came in as allies of the Democracy, but, while they were +an unknown quantity, they did not appear to be very dangerous. I +could not find that they made much impression on Republican farmers. +It had fallen to the lot of Ohio to be the battle ground on which +these financial question were fought, but we had never been saddled +with so grave a conflict as that year, not merely for the reason +that we had both the financial and economic questions depending +upon the result, but because of the lack of action and moral force +which did not seem to come to us from outside the state, as it +should and had years before. I had too much faith in the Republicans +of the country to believe that when they understood the situation +they would fail to arouse themselves to the necessities of the hour. + +In answer to a question as to how the canvass would be conducted, +I said that Major McKinley and those close to him were perfectly +competent to deal with the management of the campaign and would do +so. I should in my opening speech devote myself entirely to a +presentation of the financial part of the contest, which was equal +in importance with the tariff. It was perhaps unfortunate for both +that two such questions should come up for discussion at the same +time, but they did and the issue had to be met. The only thing +that was necessary to insure a crowning success was that the +Republicans of the country should understand that, no matter what +their differences upon the tariff were, they had a vital interest +in settling the financial question for all time at the next election +in the State of Ohio. The prosperity in Ohio was a great aid to +the Republicans. The crops in that state and the west were larger +than for many years. Prices were good and the farmers as a rule +prosperous. This naturally made them regard with grim humor the +talk of the Alliance lecturers about poverty and distress. Another +thing which helped us was the fact that short crops were the rule +in Europe. In reply to a question as to the senatorial issue, I +said in one of my speeches: + +"I have no regret that this character of battle is prominent. I +am rather complimented than otherwise to be again selected as the +target of this crusade against a sound currency. It is a question +that has been nearest my heart for a good many years, and I am +perfectly willing to abide the result upon my position thereon. +As I said before, I have no fears as to the decision for the right. +I have less opposition to encounter than I have ever had before, +and should we carry the legislature, which I believe we will, I am +content to stand by the judgment of the Republicans of that body, +no matter what it may be." + +I made my opening speech in this campaign at Paulding, on the 27th +of August. It was mainly confined to the silver question. I quote +a few extracts from it: + +"It has been said by many persons of both political parties that +this is to be a campaign of education. I believe it ought to be +so, for the leading questions involved are purely business questions, +affecting material interests common alike to men of all parties. + +"Upon two great measures of public policy the Republican and +Democratic parties have made a formal and distinct issue, and these +are to be submitted to the people of Ohio in November, and your +decision will have a marked effect upon public opinion throughout +the United States. One is whether the holder of silver bullion +may deposit it in the treasury of the United States, and demand +and receive for it one dollar of coined money for every 371 grains +of fine silver deposited. The market value of so much silver +bullion is now about 77 cents, varying, however, from day to day, +like other commodities, sometimes more and sometimes less. The +other question is whether the policy of taxing imported goods by +the government of the United States, embodied in our existing tariff +law, known as the McKinley tariff, is a wise public policy, or +whether it should be superseded by what is called a tariff for +revenue only, as embodied in what is known as the Mills bill, which +passed the House of Representatives in 1888, and was rejected by +the Senate. + +* * * * * + +"I propose upon this occasion to confine myself mainly to a frank +and homely discussion of the money question, as the most pressing, +not that the tariff question is not equally important, but for the +reason that I can only do one thing at a time, and the money question +is a newer one, is now before us, upon which Republicans and +Democrats alike are somewhat divided. I wish to appeal to the +reason and common sense of the people who hear me, for that is said +to be the highest wisdom. + +* * * * * + +"Now, you all know that the money in circulation in the United +States--all of it--is good, good as gold. It will pass everywhere +and buy as much as the same amount of any other money in the world. +Our money is of many kinds--gold, silver, nickel and copper are +all coined into money. Then we have United States notes, or +greenbacks, gold certificates, silver certificates, treasury notes +and national bank notes. But the virtue of all these many kinds +of money is that they are all good. A dollar of each is as good +as a dollar of any other kind. All are as good as gold. But, and +here comes the first difficulty, the silver in the silver dollar +is not worth as much as the gold in the gold dollar. The nickel +in that coin is worth but a small part of five cents' worth of +silver. And the copper in the cent is not worth one-fifth of the +nickel in a five cent piece. How then, you may ask me, can these +coins be made equal to each other? The answer is that coinage is +a government monopoly, and though the copper in five cents is not +worth a nickel, and the nickel in twenty pieces is not worth a +silver dollar, and the silver in sixteen dollars is not worth +sixteen dollars in gold, yet, as the government coins them, and +receives them, and maintains them at par with gold coin, they are, +for all purposes, money equal to each other, and wherever they go, +even into foreign countries, they are received and paid out as +equivalents. + +"The reason of all this is that the United States limits the amount +of all the coins to be issued except gold, which, being the most +valuable, is coined without limit. If coinage of all these metals +was free, and any holder of copper, nickel, silver or gold could +carry it to the mint to be coined, we would have no money but copper +and nickel, because they are the cheaper metals, worth less than +one-fourth of what, as coin, they purport to be. For the same +reason, if the coinage of silver was free at the ratio of sixteen +of silver to one of gold, no gold would be coined, because sixteen +ounces of silver are not worth one ounce of gold. + +* * * * * + +"The one distinctive, striking feature of the law of 1890 is, that +the United States will not pay for silver bullion more than its +market value. And why should we? What is there about silver +bullion that distinguishes it from any other product of industry +that the government needs? When the government needs food and +clothing for the army and navy it pays only the market price to +the farmer and manufacturer. The value of silver produced is +insignificant compared with the value of any of the articles produced +by the farmer, the miner and manufacturer. Nearly all the silver +produced in the United States is by rich corporations in a few new +states, and its production at market price is far more profitable +than any crop of the farmer, and yet it is the demand of the producer +of silver bullion that the United States should pay him twenty-five +per cent. more than its market value that lies at the foundation +of the difference between the Republican and Democratic parties. + +* * * * * + +"Our Democratic friends differ from us in this particular. They +are in favor of allowing any holder of silver bullion, foreign or +domestic, any old silverware or melted teapot, any part of the vast +accumulated hoard of silver in India, China, South America and +other countries of the world, estimated by statisticians to be +$3,810,571,346, to present it to the treasury of the United States +and demand one dollar of our money, or our promises to pay money, +for 371 grains of silver, or any multiple of that sum, though this +amount of silver is now worth only 77 cents, and has for a period +of years been as low as 70 cents. If with free silver we receive +only the quantity of silver we are required to purchase by existing +law, the United States would pay over $13,000,000 a year more than +if purchased at the market value, and this vast sum would be paid +annually as a bounty to the producers of silver bullion. + +"But this is not the worst of it. Free coinage means that we shall +purchase not merely four and a half million ounces a month, but +all the silver that is offered, come from where it may, if presented +in quantities of one hundred ounces at a time. We are to give the +holder either coin or treasury notes, at his option, at the rate +of one dollar for every 371 grains, now worth in the market 77 +cents. Who can estimate the untold hoards of silver that will come +into the treasury if this policy is adopted? + +* * * * * + +"But it is said that free coinage will not have the effect I have +stated; that the silver in sight is so occupied where it is that +it will not come to us. They said the same when the present law +was passed, that foreign silver would not come to us. Yet our +purchase of 4,500,000 ounces, troy weight, or 187 tons, of silver +a month, at market price, brought into the United States large +amounts of silver from all parts of the world. If that is the +effect of limited purchases at one dollar an ounce, the market +price, what will be the effect of unlimited purchases at 29 cents +an ounce more than market price? It would inundate us with the +vast hoards of silver in countries where silver alone is the current +money, and draw to us all the rapidly-increasing production of +silver mines in the world. + +"But they say with free coinage the price of silver will rise to +the old ratio with gold. The experience of all the world belies +this statement. In no country in the world where free coinage +exists is sixteen ounces of silver equal to one ounce of gold. +France and the United States maintain the parity between the two +by carefully limiting the coinage and receiving and redeeming silver +coins as the equivalent of gold. But wherever free coinage exists +that is impossible. With free coinage the market value of the +bullion fixes the value of the dollar. The Mexican dollar contains +more silver than the American dollar, and yet the Mexican dollar +is worth about 78 cents, because in Mexico coinage is free. And +the American dollar is worth 100 cents because in the United States +coinage is limited. So in all free coinage countries where silver +alone is coined it is worth its market value as bullion. In all +countries where gold circulates the coinage of silver is limited, +but is used as money in even greater amounts than in countries +where coinage is free. This is the case in France and the United +States. The free coinage of silver in either would stop the coinage +of gold. + +* * * * * + +"It is claimed that if we adopt the silver standard we will get +more money for our labor and productions. This does not follow, +but, even if it be true, the purchasing power of our money will be +diminished. All experience proves that labor and the productions +of the farm are the last to advance in price. + +* * * * * + +"Some say that we want more money to transact the business of the +country. Do we get more money be demonetizing one-half of all we +have?--for the gold now in circulation is more than one-half of +the coin in circulation." + +In closing this speech I said: + +"I appeal to the conservative men of Ohio of both parties to repeat +now the service they rendered the people of the United States in +1875, by the election of Governor Hayes, in checking the wave of +inflation that then threatened the country. You can render even +a greater service now in the election of Governor McKinley, in +defeating the free coinage of silver, and strengthening the hands +of President Harrison and the Republican Senate in maintaining +American industries, a full dollar for all labor and productions, +the untarnished credit of the American people, and the advancing +growth and prosperity of our great republic. I have endeavored in +a feeble way to promote these objects of national policy, and now +that I am growing old, I have no other wish or ambition than to +inspire the young men of Ohio to take up the great work of the +generation that is passing away, and to do in their time as much +as, or more than, the soldiers and citizens of the last forty years +have been able to do to advance and elevate our government to the +highest standard and example of honor, courage and industry known +among men." + +These extracts give an imperfect idea of the speech, which entered +into many details, and stated the effect of the cheapening of the +dollar on the wages of men employed as laborers, and on farmers +who would be cheated by the diminished power of money. + +Being confined to one subject, and that one which at the time +excited the attention of the people, this speech was widely copied, +and received general approbation from the press of the north and +east, and was commented upon favorably in countries in Europe, +where the fall in the price of silver was the subject of anxious +interest. It also excited the denunciation of the free silver states +in the west. The Democratic platform of Ohio had unfortunately +committed that great party to the ideas of the new party calling +itself the People's party, represented mainly by the disciples of +the old greenback fiat money craze, some of whom, while claiming +to be farmers, do their planting in law offices, and whose crops, +if they have any, are thistles and ragweeds. That part of the +platform had been adopted by but a bare majority of the Democratic +convention, and Campbell, their candidate, tried to evade it. + +McKinley promptly recognized the importance of the money question +in the pending canvass, and at once presented in all his speeches +the two vital measures of his party--good money and a protective +tariff. On these two issues the Republican party was united and +the Democratic party divided. + +Early in September, I was invited by the managers of the state fair +to make a speech on the 17th of that month at their grounds in +Columbus, on the political issues of the day, and accepted the +invitation. As usual during the fair great crowds assembled, most +of whom no doubt felt more interested in the horse races and sight- +seeing than in coinage or tariff, but many thousands, mostly farmers +from all parts of the state, were gathered around the east front +of the main building. At the time appointed I was introduced by +E. W. Poe, the state auditor, with the usual flattering remarks, +and commenced my speech as follows: + +"When I was invited to speak to you here I was informed that I was +expected to present my views on the leading issues of the day, and +that a like invitation had been given to Governor Campbell and +other gentlemen holding public trusts from the people of Ohio. +While this invitation relieves me from the charge of impropriety +in introducing a political question on the fair grounds, yet I am +admonished by the presence of gentlemen of all parties and all +shades of opinion that common courtesy demands that, while frankly +stating my convictions, I will respect the opinions of others who +differ from me. I propose, therefore, in a plain way to give you +my views on the tariff question, now on trial between the two great +political parties of the United States. It is somewhat unfortunate +that this purely business question of public policy is being +discussed on party lines, but it is made a party question by the +State conventions of the Republican and Democratic parties of Ohio, +and we must accept it as such, though I would greatly prefer, and +I intend to treat it here, as far as I can, as a purely economic +question." + +I briefly stated the history of tariff legislation in the United +States, what was meant by a tariff and the objects sought by it, +and that for the first fifty years of our history the lines were +not drawn between a revenue tariff and a protective tariff. It +was in those days the common desire of all sections to obtain +revenue and to encourage domestic industries. This unity of purpose +existed until 1831, when the south had become almost exclusively +an agricultural region, in which cotton was the chief product of +the plantation with negro slaves as the laborers, and when the +north, under the protective policy, had largely introduced +manufactures, and naturally wished to protect and enlarge their +industries. The tariff question grew out of a contest between free +and slave labor. I referred to the various measures adopted, the +compromise measure of 1833, the Whig tariff of 1842, the Walker +tariff of 1846, and the Morrill tariff of 1861. During and after +the war, for many years, any tariff that would produce enough +revenue to meet current expenditures and pay the interest of the +public debt, would necessarily give ample protection to domestic +industries. To meet these demands we had to levy not only high +duties on nearly all imported goods, but to add internal taxes, +yielding $300,000,000 annually, on articles produced in this country. +When this large revenue was no longer necessary, many of these +taxes were repealed, and then the tariff again became a political +question between the Republican and Democratic parties. I then +stated the five principles or rules of action adopted by the +Republican party in the reduction of taxes, all of which were +applied in the framing of the McKinley tariff law, as follows: + +"First. To repeal all taxes on home production, except on spirits, +tobacco, and beer. + +"Second. To levy the highest rates of duties that will not encourage +smuggling, on articles of luxury which enter into the consumption +of the rich. + +"Third. To place on imported articles which compete with articles +that can be manufactured or produced in the United States, such a +rate of duty as will secure to our farmers and laborers fair prices, +fair wages, and will induce our people to engage in such manufacture +and production. + +"Fourth. To repeal all duties on articles of prime necessity which +enter into the consumption of the American people and which cannot +be produced in sufficient quantity in this country. + +"Fifth. To grant to foreign nations the reciprocal right of free +importation into our ports of articles we cannot produce, in return +for the free introduction into their ports of articles of American +production." + +I entered into full details of the tariff and contrasted the McKinley +act with the Mills bill proposed by the Democratic party, but which +never became a law, and in conclusion said: + +"And now, gentlemen, it is for you to say whether it is better for +you, as farmers, or producers, or consumers, to give this law a +fair trial, with the right at all times to make amendments, or to +open it up and keep it in a contest between two political parties. +If we could all divest ourselves of the influence of party feeling +we would have no difficulty in agreeing that either bill is better +than a constant agitation and change of our tariff system. I say +to you that if the Mills bill had become a law in 1888, I should +have been disinclined to agitate its repeal until it had a fair +trial, though my study, both in the Senate and committee on finance, +led me to oppose it. It seemed to me a retrograde measure, born +of the ideas of the south, narrow in its scope, and not suited to +a great country of unbounded but undeveloped resources. Still, as +I say, if it was the law, I would not repeal it without trial. +Now, this McKinley bill does meet, substantially, my views of public +policy. Some items I would like to change, but, on the whole, it +is a wise measure of finance. It will give enough revenue to +support the government. It is an American law, looking only to +American interests. It is a fair law, dealing justly by all +industries. It is an honest law, preventing, as far as law can, +fraud and evasion. It is a comprehensive law covering the whole +ground. It will undoubtedly establish new branches of industry in +our country not now pursued. It will strengthen others now in +operation. It will give to thousands of our people now idle, +employment at fair wages. It will give to our farmers a greatly +enlarged market for their productions, and encourage them in +producing articles not now produced, and to increase their flocks, +herds and horses to meet the new demands." + +My speech was as free from partisanship as I could make it, and I +am quite willing to stand upon the policy I defined. + +I visited Cleveland a few days later and met many of the active +Republicans of that city, and was glad to learn that they were +practically unanimous for my re-election. Among other callers was +a correspondent of the "Plain Dealer" of that city, who treated me +fairly in stating correctly what I said in answer to his questions. +The "Commercial Gazette" and the "Enquirer," of Cincinnati, also +published long interviews with me, and incidents of my life given +by my neighbors. I began to believe that these interviews, fairly +reported, were better modes of expressing my opinions than formal +speeches, and were more generally read. + +During the month of October I made many speeches in different parts +of the state, several of which were reported in full, but the +general tenor of all may be gathered from those already referred to. + +Among the largest meetings I attended in this canvass was one at +Toledo, on the evening of the 14th of October. Here again I +discoursed about currency and the tariff, but the salient points +had become so familiar to me that I could speak with ease to my +audience and to myself. As soon as this meeting was over, I took +the midnight train for Dayton, where a "burgoo" feast was to be +held the next day on the fair grounds. This was by far the largest +meeting of the campaign. There was an immense crowd on the grounds, +but it was a disagreeable day, with a cloudy sky, a chilly atmosphere +and a cold raw wind. McKinley, Foraker and I spoke from the same +stand, following each other. As I was the first to speak I had +the best of it, and as soon as I finished left the grounds, but +they held the great audience for several hours. I insert what the +Dayton "Journal" reported of the speakers as a specimen of friendly +journalism: + +"Sherman renewed his youth and even exceeded the best efforts of +his earlier days. Neither man nor woman left their place while +Sherman was speaking. At 2 o'clock, when McKinley, our gallant +leader, took the platform, the crowd seemed so great that no man's +voice could reach them, but they listened for every syllable and +made the hills echo with their appreciative applause. Then came +Foraker. It seemed as if the great meeting had been magnetized +with an electric power of ten thousand volts. There were continuous +shouts of approbation and applause from his beginning to the close. +His mingling of wit and wisdom, a burgoo combination of powerful +and telling arguments, with sandwiches of solid facts, completed +a political barbecue which will be a historical memory that will +be almost as famous as the gathering of the people of this splendid +valley in 1842, when Henry Clay spoke to our fathers on the same +sod and under the shade of the same trees on the same subjects. +The memory of the magnificent Republican demonstration at the +Montgomery fair grounds on the 15th day of October, 1891, will +remain with all who participated in it as long as they shall live." + +On the evening of October 17, Foraker and I appeared together before +a great audience in Music Hall, Cincinnati. I insert a few sentences +of a long description in the "Commercial Gazette" of the next day: + +"Music Hall was the scene last night of the greatest Republican +gathering of the campaign. Senator Sherman and Governor Foraker +were the speakers. + +"The meeting was an immense one. That was a magnificent assemblage. +It was an ovation. It was a recognition of brains and integrity. +It was an evidence that honesty and justice prevail. It showed +that the people believe in the Republican party. It proved that +they appreciate that the party still has a mission. It evinced an +appreciation of the past and a hope for, and a belief in, the +future. It was a great outpouring of Republicans. It was a +gathering of the supporters of right as against wrong. It was a +regular Republican crowd. Personal feeling and personal ambition +were laid aside. + +* * * * * + +"Sherman and Foraker were on the stage together. Their presence +on the same stage was a noteworthy fact. It was an evidence of +harmony and of strength. Then, again, the united marching of the +Lincoln and Blaine clubs was a further proof of harmony. In fact, +the entire meeting, and the pleasant feeling manifest, proved that +the party is united as one man against its old foe, the Democracy; +that, as many a time before, it is ready and anxious to do battle +with the ancient enemy. No deceits, no frauds, can defeat it--the +Republican party. This the meeting proved conclusively." + +I closed my part in this canvass at Toledo and Cleveland in the +week before the election, and these speeches were fairly and fully +reported. During the whole contest between Foraker and myself +there was nothing said to disturb our friendly relations. The +election resulted in the success of the Republican ticket and a +Republican legislature, McKinley receiving over 21,000 plurality. +Immediately after the election it was announced that the members +of the legislature from Hamilton county were unanimously in favor +of Foraker for Senator. This announcement, and especially the +manner of it, created a good deal of bad feeling in the state, +especially as it was alleged and believed that George Cox had full +control of the delegation and had required the pledges of each +senator and member to vote for United States Senator as he dictated. + +During the entire canvass there was a full and free discussion, +not only in Ohio but throughout the United States, as to the choice +between Foraker and myself. It was known that the vote in the +legislature would be close and the friends of each were claiming +a majority for their favorite. It is not necessary to follow the +progress of the contest, but I became satisfied that I would be re- +elected, although the most positive assurances were published that +Foraker, with the aid of his solid delegation from Hamilton county, +would be successful. Many things were said during the brief period +before the election that ought not to have been said, but this is +unavoidable in choosing between political friends as well as between +opposing parties. Every Republican paper in Ohio took sides in +the contest. Meetings were held in many of the counties and cities +of the state, and resolutions adopted expressing their preference. + +I was urged by some friends to go to Columbus some time before the +meeting of the legislature on the first Monday in January, but +delayed my departure from Washington until after the wedding of my +niece, on the 30th of December, a narrative of which was given by +the "Ohio State Journal" as follows: + +"The marriage of Miss Rachel Sherman, daughter of the late General +William T. Sherman, and Dr. Paul Thorndike, of Boston, was solemnized +at high noon to-day at the residence of Senator Sherman, in the +presence of a distinguished audience of relatives and officials. +It was a gathering composed chiefly of intimate friends of the late +General Sherman, many of whom came from afar to witness the nuptials +of the favorite daughter of the deceased chieftain. + +"The house was gay with music and fragrant with flowers. The +ceremony took place in the front parlor of the residence. A canopy +of asparagus and smilax was twined over the recess where the ceremony +was performed. A background of foliage and palms massed together +made the couple standing in front all the more effective and +attractive. On the mantel were banked white blossoms in profusion, +and hanging from the chandeliers wreaths of smilax intertwined with +white chrysanthemums and carnations. The ushers were Mr. Allen +Johnston, of the British legation, Mr. Ward Thorou, Mr. William +Thorndike, Dr. Augustine Thorndike and Mr. Tecumseh Sherman, the +bride's brother. Preceding the bride came her little niece, Miss +Elizabeth Thackara, in a gown of white muslin, carrying a basket +of white lilies. Senator Sherman escorted the bride, who was met +by the groom and his best man, Mr. Albert Thorndike. The party +grouped about Father Sherman, brother of the bride, who, with much +impressiveness, performed the marriage rites of the Catholic church. + +"After the ceremony the bride and groom held a reception. A wedding +breakfast was next served to the invited guests. Among those +present were the President and Mrs. Harrison, Mrs. McKee, the Vice +President and Mrs. Morton, Secretary Blaine, Mr. and Mrs. Damrosch, +Secretaries Rusk and Tracy, Senator and Mrs. Stanford, Sir Julian +Pauncefote and others." + + +CHAPTER LXI. +ELECTED TO THE UNITED STATES SENATE FOR THE SIXTH TIME. +I Secure the Caucus Nomination for Senator on the First Ballot-- +Foraker and Myself Introduced to the Legislature--My Address of +Thanks to the Members--Speech of Governor Foraker--My Colleague +Given His Seat in the Senate Without Opposition--Message of President +Harrison to the 52nd Congress--Morgan's Resolutions and Speech for +the Free Coinage of Silver--Opening of the Silver Debate by Mr. +Teller--My Speech on the Question--Defeat of the Bill in the House +--Discussion of the Chinese Question--My Opposition to the Conference +Report on Mr. Geary's Amended Bill--Adopted by the Senate After a +Lengthy Debate--Effect of the Tariff Laws Upon Wages and Prices-- +Senator Hale's Resolution--Carlisle's Speech in Opposition to High +Prices--My Reply--Résumé of My Opinions on the Policy of Protection +--Reception by the Ohio Republican Association--Refutation of a +Newspaper Slander Upon H. M. Daugherty--Newspaper Writers and +Correspondents--"Bossism" in Hamilton County. + +Upon the meeting of the Ohio legislature, on the 4th of January, +1892, Foraker and I were in attendance, stopping at the same hotel +and meeting daily. There was much excitement and great diversity +of opinion as to the result of the senatorial election. Several +of the members, whose preference I knew, would not declare their +vote, with the mistaken idea that to remain silent would relieve +them from importunity, but before the decisive vote was taken in +caucus I was confident of success. + +The caucus met on Wednesday evening, the 6th of January. It was +composed of the Republican members of both houses. L. C. Laylin, +a friend of mine, who had been elected speaker of the house of +representatives, was made chairman of the caucus. An attempt was +made by the friends of Foraker to secure a secret ballot, but this +was defeated. The decisive vote was then taken, in which I received +53 votes, Foraker 38, Foster 1 and McKinley 1. My nomination was +then made unanimous, and I was subsequently elected by the legislature +for the term ending March 4, 1899. + +The caucus appointed a committee of its members to escort Foraker +and myself to the hall of the house of representatives, where we +were received with hearty applause. We were introduced by Speaker +Laylin, and our speeches will show that if we were combatants we +appreciated the merits of our respective adversaries. I said: + +"Senators, Representatives and Fellow Citizens:--I return to you +my most grateful thanks for the very high honor you have conferred +upon me. Long trusted by the people of Ohio, I am under obligations +that I cannot express in any language at my command. I owe to them +--I owe to you--all that could be said from a heart overflowing. + +"We have just passed through quite a contest, the most formidable +that I have ever encountered in Ohio, and I hope more formidable +than I will ever be called upon to encounter hereafter. I know, +gentlemen, that you have been called upon to make a choice which +was unpleasant to you because you would have liked to vote for both +of us, and would have been glad to have two Senators to elect +instead of one. + +"I am glad to say that in this contest I have held, in my language +and in my heart, the highest feelings of respect and honor for the +gentleman who was my competitor, and who is now before you. He is +entitled to the love and affection of the people of Ohio, and if +you have given me this high honor because of my experience, you +have not underrated the high qualities, mental and moral, of Governor +Foraker. Although you have been engaged in this friendly contest, +we are all Republicans and I trust ever will be Republicans, true +to our cause, and true to the principles we advocate. I again +return to you, as the senators and representatives of our state, +my thanks for this almost unequaled honor." + +Governor Foraker said: + +"Mr. Chairman and Gentlemen of the Caucus and Fellow Citizens:--I +am informed that, so far as you are concerned, the senatorial +contest is ended, and I have come here in response to your kind +invitation to say that so far as I am concerned it is ended also. + +"You did not end it as I had hoped you might, but you are the duly +accredited and authorized representatives of the Republicans of +Ohio, and your will is law unto me and mine. + +"As Senator Sherman has said, we have been having something of a +contest. For the last ten days we have been divided into Sherman +men and Foraker men, and we have been striving against each other. +There has been possibly some rasping and some friction, but at this +hour it is our highest duty to remember that from now on henceforth, +in the language again of the Senator, we must remember that we are +no longer Sherman men nor Foraker men, but Republicans all. + +"Let us here and now put behind us, with the contest to which it +belongs, whatever unkindliness of feeling, if there be any at all, +that may have been engendered. So far as I am concerned, I am glad +to be able to say to you, gentlemen of the 70th general assembly, +that I have not an unkind thought toward any one of you, no matter +whether he has been friend or foe. I have no resentments, no +bitterness of feeling to carry with me. On the contrary, I shall +go back to the pursuit of my profession with my mind and my heart +filled with only grateful recollection and a pleasurable, and I +trust a pardonable, pride for the gallant, intrepid band who have +honored me with their support in this contest. Without any +disposition to criticise or find fault in the slightest degree, +but only as an excuse in so far as that may be necessary for +enlisting in a cause than has been crowned, not with success, but +with defeat, let me say to these friends that when we entered upon +it I did not foresee some of its features. I was not aware then, +as we have since come to know, that we have had to fight, not only +the Republicans of Ohio who were against us, but, because it was +grand old John Sherman on the other side, and with him the whole +United States of America. The Senator has said he don't want any +more contests like this. I thank him for the compliment, and vouch +to you that I don't want ever against to cross swords with a +Sherman." + +The 52nd Congress met on the 7th of December, 1891. The credentials +of my colleague, Calvin S. Brice, in the usual form, were presented +and upon them he was entitled to be sworn into office. If his +right to a seat was to be contested the grounds of the contest +might be afterwards presented, when the case would be decided on +its merits, but, until it should be determined by the Senate that +he was not duly elected, he could perform the duties of a Senator. +I was urged to object to his taking the oath of office on the ground +that he was not a resident of the State of Ohio when elected. This +I declined to do, but simply gave notice of his alleged disability, +so that it would not be waived in the case the legislature or +citizens of Ohio should establish the fact that he was not an +inhabitant of that state when elected. This was not done and no +attempt was made to contest his seat, but I was reproached by +unreasonable partisans for the neglect to do so. + +The annual message of President Harrison, sent to Congress on the +9th of December, strongly recommended the aid of the government in +the construction of he Nicaragua Canal. He highly commended the +McKinley tariff bill, and said that its results had disappointed +the evil prophecies of its opponents, and, in a large measure, +realized the predictions of its friends. He referred to the large +increase of our exports and imports, and, generally, gave a hopeful +view of our financial condition. He recommended that the experiment +of purchasing 4,500,000 ounces of silver bullion each month, under +the act of July 14, 1890, be continued. Though silver had fallen +in value from $1.20 an ounce to 96 cents, yet he hoped a further +trial would more favorably affect it. He was still of opinion that +the free coinage of silver under existing conditions would disastrously +affect our business interests at home and aborad. He approved the +application of the surplus revenue to the reduction of the public +debt, and stated that since the 1st of March, 1889, there had been +redeemed of interest-bearing securities $259,079,350, resulting in +a reduction of the annual interest charge of $11,684,675. On the +whole the message of the President and the report of Secretary +Foster presented a favorable state of our national finances. + +The disposition of the 52nd Congress was not to engage in political +debate, especially on financial questions, as it was divided on +political lines, the Senate being Republican, and the House +Democratic. The current business did not present such questions +until Senator Morgan, on the 30th of March, 1892, introduced +resolutions directing the committee on finance to make examinations +and report upon six different propositions, embracing the whole +financial system of the United States, and to do it promptly. I +had no objection to the passage of the resolutions, though they +were imperative in tone, but naturally supposed they were brought +in merely as a text for a speech, and suggested to Morgan that he +prepare a bill that would carry out his views and have that referred +to the committee. He said: "I do not expect to refer them. I +expect to instruct your committee what to do. That is what I +propose." In introducing his resolutions he said: "There is an +evil in the land, a difficulty of most serious embarrassment. . . . +The people cannot afford to wait without encountering all the +hardships of bankruptcy and ruin. . . . Our differences will not +permit our people to wait further adjustment when they are in a +death struggle with poverty and wretchedness." + +I replied: "If there is such distress as the Senator imagines it +ought to be met by specific measures and not by a debating school." +I knew that what he wanted was the free coinage of silver. Upon +this question both parties were divided. The states producing +silver were represented by Republicans who favored a measure that, +in my opinion, would lead to the single standard of silver, and if +the Senate was to consider that subject I wished it to be distinctly +presented and debated, rather than to enter upon the discussion of +a multitude of theories that would lead to no result. He expressed +the desire that he and others should have an opportunity to speak +on the resolutions, and, in conformity with the usages of the +Senate, they were left on the table for indefinite debate. + +On the 14th of April, Morgan made an elaborate speech covering +twelve pages of the "Record," in which, as I expected, he elaborated +his views in favor of the free coinage of silver, and closed as +follows: + +"We are very nearly out of the woods now, and if you will add the +free coinage of silver on equal terms with gold, and will cause +the treasury of the United States to coin the silver that is there +on the same terms that it does gold, I believe that we shall soon +master every difficulty in our way. Then the honorable Senator +from Ohio would have the right to rejoice, and, contrary to his +will, he would be led up into such high positions that he would be +able, at last, to bless the country when he did not expect to do +it." + +Believing, as I did, that to continue this debate would be a +fruitless waste of time, and interfere with the current business +of Congress, I said: + +"I do not intend to engage in this discussion, but still I wish to +ascertain the sense of the Senate. If we are to have a general +silver debate now, to the displacement of all other business, I +should like to have that point tested; and, in order to settle it +definitely, without engaging in the debate at all, I move to lay +the pending resolutions on the table." + +Mr. Teller, the leader of the "silver Senators," as they are called, +with some excitement, said: + +"The Senator from Ohio, flushed, perhaps, with the victory apparently +in the other House against silver, seems to think he can down the +debate in this body on the subject. I want to say to the Senator +that we spent some time during the last session to prevent him, +and others who thought with him, from securing a rule that would +cut off debate in this body, and the Senator might as well meet +the question now as at any time; that this question will be debated, +and if not upon this, upon some other resolution. . . . I give +notice that, under the rules of the Senate, we are able to be heard, +and that we will be heard, in despite of the honorable Senator from +Ohio, who appears to be so anxious to stifle debate." + +To this I replied: + +"I deny, in the most emphatic terms, that I have endeavored to +stifle debate. There is no ground for such an assertion. There +is not an iota of ground upon which such an assertion can be made. +I never objected in my life, and I have been here longer than any +of you, to any Senator speaking at any time when he chose upon any +subject; and every man here knows it. . . . I am willing to discuss, +and I never shrink from debate on, the silver question, or the gold +question, or the currency question. I have not been willing, at +all times, to talk at all hours, and reply to every gentleman who +might choose to make a speech; but whenever the Senate undertakes +to engage in this debate, I will take my share of it, and I will +take my responsibility for it." + +I then proceeded at some length to reply to Morgan. The debate +was suspended by the order of business, but it continued from day +to day as opportunity offered, on a motion to refer the resolutions +to the committee on finance, until the 25th of May, when the Senate +rejected the motion by a vote of 17 yeas to 28 nays. This vote +was a clear indication that a majority of the Senate favored the +free coinage of silver. I then, while criticising the terms of +the resolutions, expressed my desire that they should be adopted. +This led to a desultory debate in which I took part, and on the +morning of the next day, having the floor, said: + +"I regret as much as anyone can the unusual and remarkable +interposition of this question, by the Senator from Alabama, at +every stage of our business. Now, the whole of the morning hour +had been wasted except the ten minutes which I shall occupy, and +probably nothing could have been done in that time. + +"An arraignment has been made of the committee on finance as if it +had neglected to perform its duty. I am not authorized to speak +for the committee except as one of its members. Its chairman, the +Senator from Vermont, Mr. Morrill, is here to speak for it, but +the committee on finance has never for a moment evaded or avoided +the issue of the free coinage of silver. It has never delayed a +bill, so far as my knowledge extends, upon that subject. Very soon +after the bill of the Senator from Nevada was introduced it was +considered and reported adversely. I believe two-thirds of the +members of the committee were opposed to the bill as it stood. +There has not been a day nor an hour, in the ordinary course of +business of the Senate, when, upon the motion of anyone, that bill +could not have been taken up if a majority of Senators were in +favor of it, but, unfortunately for the Senator, a majority of the +Senators were not in favor of taking it up and interposing it in +place of all the other business. Therefore, this mode is adopted +to bring it here before the Senate." + +At two o'clock I gave way to the regular order of business. Mr. +Stewart then moved to take up his bill, introduced early in the +session, to provide for the free coinage of gold and silver bullion. +It had been referred to the committee on finance, reported adversely, +and was on the calendar, subject to a motion to take it up at any +time. This again presented directly to the Senate the policy of +the free coinage of silver. The motion was agreed to by the vote +of yeas 28, nays 20. The resolutions of Morgan were practically +suspended and the vote on taking up the silver bill indicated its +passage. Mr. Teller opened the debate for free coinage. On the +31st of May I commenced a very long speech, opening as follows: + +"I do not regard the bill for the free coinage of silver as a party +measure or a political measure upon which parties are likely to +divide. It is in many respects a local measure, not exactly in +the sense in which General Hancock said in regard to the tariff +that it was a local question, but it is largely a local question. +Yet, at the same time, it is a question of vast importance. No +question before the Senate of the United States at this session is +at all to be compared with it in the importance of its effects upon +the business interests of the country. It affects every man, woman +and child in our broad land, the rich with his investments, the +poor with his labor. Everybody is deeply interested in the standard +of value by which we measure all the productions of the labor and +all the wealth of mankind. + +"Five states largely interested in the production of silver are +very ably and zealously represented on this floor. They are united +by their delegations, ten Senators, in favor of the free coinage +of silver. The south seems also to have caught something of the +spirit which actuates the mining states, because they desire, not +exactly the free coinage of silver, but an expansion of the currency, +cheaper money, and broader credit, and they also are largely +represented on this floor in support of the proposition in favor +of the free coinage of silver. So in other parts of the country, +those who have been taught to believe that great good can come to +our country by an unlimited expansion of paper credit, with money +more abundant than it is now, also believe in the free coinage of +silver. + +"I, representing a state nearly central in population, have tested +the sense of the people of Ohio, and they, I believe, are by a +great majority, not only of the party to which I belong but of the +Democratic party, opposed to the free coinage of silver. They +believe that that will degrade the money of our country, reduce +its purchasing power fully one-third, destroy the bi-metallic system +which we have maintained for a long period of time, and reduce us +to a single monometallic standard of silver measured by the value +of 371ź grains of pure silver to the dollar." + +I will not attempt to give an epitome of this speech. It covered +seventeen pages of the "Record," and dealt with every phase of the +question of silver coinage, and, incidentally, of our currency. +No part of it was written except the tables and extracts quoted. +Its delivery occupied parts of two days, May 31 and June 1. After +a careful reading I do not see what I could add to the argument, +but I might have condensed it. The question involved is still +before the people of the United States, and will again be referred +to by me. I closed with the following paragraph: + +"But, sir, closing as I began, let me express my earnest belief +that this attempt to bring this great and powerful nation of ours +to the standard of silver coin alone is a bad project, wrong in +principle, wrong in detail, injurious to our credit, a threat to +our financial integrity, a robbery of the men whose wages will be +diminished by its operation, a gross wrong to the pensioner who +depends upon the bounty of his government, a measure that can do +no good, and, in every aspect which it appears to me, a frightful +demon to be resisted and opposed." + +The debate continued with increasing interest until the 1st of July, +when the bill passed the Senate by the vote of yeas 29, nays 25. +It was sent to the House of Representatives for concurrence, but +a resolution providing for its consideration was there debated, +and rejected by a vote of yeas 136, nays 154. + +During this session of Congress the policy of restricting Chinese +immigration was strongly pressed by the Senators and Representatives +from California and Oregon. They were not content with an extension +of the restrictions imposed by the act of 1882, which, by its terms, +expired in ten years from its approval, but demanded a positive +exclusion of all Chinese except a few merchants and travelers +especially defined and excepted, to be enforced with severe penalties +almost savage in their harshness. The position of the two countries +in respect to migration from one to the other had been directly +reversed. In common with European nations the United States had, +several years before, compelled the opening of Chinese ports to +Americans, insured the protection of its citizens in that country, +and had invited and encouraged Chinese laborers to migrate to the +United States. This was especially so as to the Pacific states, +where Chinese were employed in large numbers in the grading and +construction of railways and as farmers in cultivating the soil. +These people were patient, economical and skillful. Very many of +them flocked to San Francisco, but they soon excited the bitter +opposition of laborers from other countries, and no doubt of some +American laborers. This led to the restriction act of 1882 and to +a treaty with China, by which that country consented to the exclusion +of Chinese laborers, a degraded class of population known as +"coolies." It was complained in 1892, and for several years +previously, that the provisions of the law of 1882 and of the treaty +were evaded by fraud and perjury. Senator Dolph, of Oregon, had +introduced a bill extending the restriction to all Chinese laborers, +with provisions to prevent evasion and fraud. A number of other +bills were introduced in each House of a like character. The +committee on foreign relations considered the subject-matter very +carefully and directed Mr. Dolph to report a bill extending for +five years the act of 1882, with several amendments providing +against frauds. This bill was passed and sent to the House, but +was not acted upon there. + +On the 18th of February, Thomas J. Geary, a Member from California, +reported to the House of Representatives, from the committee on +foreign affairs, a bill to absolutely prohibit the coming of Chinese +persons into the United States. On the 4th of April he moved to +suspend the rules and pass the bill. After a debate of one hour, +and without amendment, this drastic bill passed. It came to the +Senate and was referred to the committee on foreign relations, On +the 13th of April it was reported to the Senate with an amendment +in the nature of a substitute, which was the bill that had previously +passed the Senate. + +On the 21st of April I made a full statement of the action of the +committee and the scope of the amendment proposed by it. I had no +sympathy with the outcry against the Chinese, but was quite willing +to restrict their migration here to the extent proposed by the +committee. On the 25th of April the amendment was agreed to after +full debate, by the strong vote of yeas 43 and nays 14. In this +form the bill passed. The House disagreed to the Senate amendment +and a committee of conference was appointed, consisting of Dolph, +Sherman and Morgan on the part of the Senate, and Geary, Chipman +and Hall on the part of the House. This committee recommended the +adoption of the House bill with certain amendments. The report +was signed by Dolph and Morgan on the part of the Senate, and Geary +and Chipman on the part of the House. I stated my dissent from +the conference report, as follows: + +"Though a member of the conference committee, I was not able to +get the consent of my own judgment to sign this report. I simply +wish to state very briefly the reasons why I did not do it. + +"I was very willing to provide for any legislation necessary to +continue in force the existing restrictions against Chinese laborers +coming to this country. The Senate bill did this, I thought, very +broadly. It continued in force the old laws. It provided some +penal sections to punish Chinamen coming into the country in +opposition to the law, especially through Canada. I look upon the +introduction of Chinese laborers through Canada as not only an +insult to our country, but it seems to me an almost designed insult +by the Canadian authorities to allow a class of people who are +forbidden by our laws to come here, to enter a port right on our +border. They are charged $50 for the privilege of landing on +Canadian soil with the privilege to enter our country in violation +of our laws. It is not courteous treatment by the Canadian +authorities, and it is incidents like this which tend to create +excitement all along the border, and which some time or other will +no doubt be the cause of great difficulty, because unfriendly +legislation of that kind, constantly repeated, must tend to create +irritation. + +"The objection I have to this measure is in the addition that has +been made to the Senate bill, which provides for a certificate to +be taken out by every Chinaman lawfully in this country, here under +virtue of our treaty and by our laws; that they must apply to the +collector of internal revenue of their respective districts, within +one year after the passage of this act, for a certificate of +residence, and severe penalties are provided for neglect or refusal +to do so. This inaugurates in our system of government a new +departure, one I believe never before practiced, although it was +suggested in conference that some such rules had been adopted in +the old slavery times to secure the peaceful and quiet condition +of society. It is suggested that we act daily upon the same rule +in regard to the Indian tribes on reservations, but that is upon +very different ground. The Indians are in our country, they are +confined to reservations, and treaties have been made, and those +treaties require them to stay on their reservations. So we are +simply enforcing the treaties, and the Indians do not have to get +a certificate or be punished. + +"Now, whether this exceptional legislation, never before introduced +into our country, except in the possible cases I have mentioned, +is in violation of the treaty, is the real question and the real +doubt upon which I stand. I care nothing about the exclusion of +Chinese laborers from our country, because I believe their habits +are inconsistent with our civilization, and, as soon as we can get +rid of them properly, according to the treaty, I am willing to do +so. The question is now whether, in the fact of the language of +the treaty of 1880, it is our right--not our power, but our right +according to the treaty--to make this exceptional legislation for +people who are now here under existing law. The treaty provides +that the United States may, whenever in its opinion the coming or +residence of Chinese laborers injuriously affects the interests of +this country, 'regulate, limit or suspend such coming or residence, +but may not absolutely prohibit it.' In violation of that article +of the treaty we expressly provide that these people shall only +have the right to remain here upon applying, on certain terms and +conditions, for a certificate; that if they lose their certificate +they are not to be governed by the laws as to other persons; they +are here ticket-of-leave men. Precisely as under Australian law +a convict is allowed to go at large upon a ticket-of-leave, these +people are allowed to go at large and earn their livelihood, but +they must have this ticket-of-leave in their possession. We have +agreed by this treaty not only that we would not discriminate +against them in our legislation, but that we would permit these +laborers to remain in the position of persons 'of the most favored +nation.' . . . Here is a treaty by which China, the most populous +nation in the world, agreed that the United States may exclude the +class of people of China that we do not want here, making a +discrimination against them among all nations of the world. But +it is done upon certain terms and conditions, that in respect to +those who are here now they shall be treated as all other peoples +are treated; that no discrimination shall be made against them; +that no prejudicial mark shall be put upon them. By the terms of +this bill I think the treaty is violated, and I, for one, do not +propose to vote for the conference report on that ground." + +After a lengthy debate in the Senate the report of the conference +committee was agreed to, and the bill became a law. + +An interesting debate occurred during this session in respect to +the effect of the tariff laws upon wages and prices. No tariff +bill was then pending, but a sub-committee of the committee on +finance had been engaged for the past year in investigating this +subject, and had accumulated a mass of testimony in regard to it. +Senator Eugene Hale, on the 27th of June, offered the following +resolution, which gave rise to the debate: + +"Whereas, At no time has so large a proportion of the American +people been employed at so high wages, and purchasing the necessities +and comforts of life at so low prices, as in the year 1892; and + +"Whereas, The balance of the trade with foreign countries has never +been so large in favor of the United States as in the last year; and + +"Whereas, Those conditions exist and are largely due to the Republican +policy of 'protection:' Therefore, + +"_Resolved_, That the committee on finance be, and is hereby, +directed to inquire into the effect of a policy of 'tariff for +revenue only' upon the labor and the industries of the United +States, and to report upon the same to the Senate." + +The next day Mr. Hale made a brief speech upon the resolution, and +was followed by Senator Vest, who quoted many documents, which were +printed in the "Record," in support of his views. Several other +Senators participated in the debate which continued from day to day. + +The full report of the committee referred to, embracing three +volumes of over six hundred pages each, was submitted to the Senate +on the 19th of July, and on the 29th Senator John G. Carlisle, who, +as a member of the committee, had taken much interest in the inquiry, +and had participated in the conversational debate during the +preceding month, made an elaborate speech upon the resolution and +mainly upon the proposition advanced by him, that the result of +the McKinley law was to increase the prices of commodities, while +it did not increase wages. His speech was certainly a good specimen +of logic by a well trained mind. His first proposition was that +it was the unanimous opinion of scientists and statisticians, in +all the great industrial and commercial countries of the world, +that the prices of commodities had been decreasing, and the rates +of wages, especially in those occupations requiring skill and +intelligence, had been increasing; that capital had been receiving, +year after year, a smaller percentage of the total proceeds of the +product, and labor a larger percentage. He insisted that the +tendency toward a decline in prices of commodities and an increase +in the rates of wages is the necessary result of our improved +methods of production, transportation and exchange. He said that +anyone who contends in this day that high prices of commodities +are beneficial to the community at large, is at war with the spirit +of the age in which he lives, and with the genius of discovery and +invention, which, during the last half century, has ameliorated +the condition of mankind by bringing all the necessaries of life, +and many of its luxuries, within the reach of every man who is +willing to work. He then entered into an elaborate argument to +show that the McKinley act interfered with this natural tendency +towards a decline in the prices of commodities and a rise in the +rates of wages, and made it harder and more expensive for the masses +of the people of the United States to live. + +I do not follow his argument, as, to treat him fairly, it would be +necessary to state it in full. It was illustrated by carefully +prepared tables. + +On the same day, without preparation, I said I would not undertake +to reply to the precise and fair argument made by the Senator from +Kentucky, but took exception to the basis of his argument, that +the cheapness of things is the great object of desire. I did not +think so, though the report of the committee did not bear out his +argument as to the effect of the McKinley law, but, on the contrary, +showed that prices had declined and wages increased since its +enactment. When cheapness comes by discoveries, by inventions, or +by new industrial processes, the people ought to share in those +benefits, but as a rule mere cheapness of things is not a benefit +to the people of the United States, especially when they are the +productions of the people of the United States. When the wheat of +a farmer is worth only fifty cents a bushel or his cotton only +seven cents a pound it is to him a calamity, not an object of desire +but a misfortune. I proceeded at some length to answer the points +made by Mr. Carlisle as I recalled them. I insisted that the +magnitude of domestic production and the opportunities to labor +were matters of greater importance than the prices of commodities. +If our needs can be supplied by American labor it is a mutual +advantage to both the laborer and producer. The larger the product +of American labor the greater is the wealth and comfort of American +citizens. If American labor is actively employed there can be no +difficulty in the laborer obtaining the necessaries of life. I +quoted the opinions of the Presidents of the United States, including +Jefferson, Madison, Monroe and Jackson, as the friends and supporters +of the doctrine of the present Republican party on the subject of +protection. Mr. Jefferson, especially, announced, as among the +first and vital principles of his party, the protection of American +industries, the diversity of employment and the building up of +manufactures. Andrew Jackson repeatedly made the same declaration. +The platform upon which he was elected was "That an adequate +protection to American industry is indispensable to the prosperity +of this country; and that an abandonment of the policy at this +period would be attended with consequences ruinous to the best +interest of the nation." + +I insisted that the object of protection--the employment of American +labor--was of more importance than the price of food or clothing, +though I believed, with Mr. Carlisle, that the tendency of a constant +falling of the prices of the necessaries of life would go on without +regard to the duties on imported goods, as the natural result of +invention and skill. + +My speech of an hour or two was frequently interrupted, but it +contains the substance of opinions I have always entertained in +respect to protective duties. My object has always been to seek +to advance the interests of American workingmen in all kinds of +industries, whether mechanical, agricultural, scientific or otherwise. +Whether the cost of the necessities are increased or diminished by +this policy is a matter of comparative indifference, so that the +people are employed at fair wages in making or producing all the +articles that can be profitably produced in the United States. +The gist of my opinions on the policy of protection is contained +in the following paragraphs of this speech: + +"Whenever tariff duties are levied at a higher rate than sufficient +to compensate our laboring men in the different rates of wages they +are fairly entitled to receive, then I am against the tariff act. +I have never favored any tariff that, in my judgment, did not +furnish sufficient and ample protection to American labor. As to +American capital, it needs no protection. The capital of our +country has grown so fast, so large, so great, that it does not +need protection. We are able to engage in any kind of manufacturing +industry. We are able, so far as the capital of our country is +concerned, to compete with foreign production. The rates of interest +on money in this country have fallen very nearly, though not quite, +to the European rates. Therefore, capital needs no protection. +It ought to demand no protection, but it ought to demand, and it +ought to receive, in every branch of American industry which can +be carried on here with profit, that degree of protection which +will enable the manufacturer to pay to the American laborer American +wages, according to American standards, to satisfy the wants which +are required by the average American citizen, and that is all that +is desired." + +Having referred to the principal measures of Congress during the +long session of 1891-92, I recur to some of the personal events +that followed my re-election. It was received with general approval +by the press of the United States. On the evening of the 30th of +January, 1892, the Ohio Republican Association, at Washington, +extended to me a reception at the National Rifles' Armory. Several +hundred invitations had been issued, and very few declined. The +hall was beautifully decorated with flags, and in the gallery the +Marine Band was stationed and rendered patriotic airs. I was +introduced to the audience by Thomas B. Coulter, the president of +the association. He deplored the illness of Secretary Charles +Foster, who was to have delivered the address of welcome, and then +introduced S. A. Whitfield, who made a complimentary address, +closing as follows: + +"You have gone through all these years of public life without a +stain upon your honored name. The recent election in Ohio demonstrated +the honor in which you are held by the people of your state. It +was that which has given us this opportunity to pay you this respect, +we, of the Ohio Association, who are here to welcome you." + +To this I made a brief reply, expressing my hearty thanks. John +Wanamaker, Postmaster General, made an interesting address, full +of humor and kindness, and was followed by several Members of +Congress, among whom was my neighbor, Michael D. Harter. + +The only incident of an unpleasant nature growing out of the +senatorial contest was an unfounded charge against H. M. Daugherty, +an active and able member of the house of representatives of Ohio, +who was accused by a newspaper with being corruptly influenced to +cast his vote for me. He promptly denounced the slander, and +demanded an investigation. Noticing the publication and his denial, +I wrote him as follows: + + "Senate Chamber, } + "Washington, January 18, 1892.} +"Hon. H. M. Daugherty. + +"My Dear Sir:--I notice in Saturday's 'Journal' that you intend to +push to a trial some of the men who most unjustly libeled you, and +indirectly libeled me. I think so clear and strong a case of gross +injustice ought to be punished if the law can furnish any relief, +and I sympathize with you, and will stand by you in the effort to +reach the guilty parties. + +"No one can know better than I the frank, manly and disinterested +course you pursued in the contest for the organization of the house, +and the election of Senator, and no one can know better than I how +false the imputation made against you was. + +"I am glad to say that in the whole contest I never used one dollar +of money to corrupt or influence the vote or judgment of any member +of the legislature, and that the charge that you received, or were +to receive, $3,500, or any other sum of money, is absolutely false +and malicious. Whenever you desire me to testify to this, I will +gladly do so. + + "Very sincerely yours, + "John Sherman." + +A committee was appointed by the general assembly, who examined +witnesses, and, after reciting the evidence, reported as follows: + +"We are unable to find one iota of evidence that would lead us to +believe that the said H. M. Daugherty either received, or asked, +or was offered, any consideration for his vote for John Sherman, +for United States Senator, or that anyone received, or asked, or +was offered, the same for him, or that he was in any way unduly or +corruptly influenced to cast his vote for the said John Sherman, +but that, in voting for the said John Sherman, Mr. Daugherty followed +the instructions received by him from his constituents. We herewith +submit all the evidence taken by us in this examination, and make +the same a part of this report. + + "Respectfully submitted, + "A. H. Strock, + "J. C. Heinlein, + "W. A. Reiter, + "John D. Beaird." + +The "State Journal" said: + +"After the report was read and adopted members crowded around Mr. +Daugherty and congratulated him. These expressions of good will +were too much for Mr. Daugherty's composure, and tears came unbidden +to his eyes. He felt the stigma placed upon his good name by the +insinuations of the Democratic newspapers very keenly, although +not one member of the house believed the stories." + +At this period many interviews with me were published. It is the +custom of newspaper letter writers, who are generally bright +intelligent men, to call upon a Senator or Member with some current +story of the hour and then interview him. A brief interview is +often expanded into a long article in a newspaper, founded sometimes +not upon the conversation but upon speeches, writings and known +opinions of the person interviewed. When this is fairly and truly +done it answers the purpose of the letter writer, and the person +interviewed has no cause of complaint. This was especially the +case with the letters of George Alfred Townsend. His letter of +February 26, 1892, was but one of many which entered into details +that I could not deny, embracing anecdotes and incidents hardly +worthy of preservation, but forming a part of the gossip of the +hour. The newspaper reporter, as distinguished from the letter +writer, does not seek as a rule to verify his views, but flashes +by telegraph the current report of the moment. In this way it was +stated in the New York "World," on the 29th of February, that I +was about to resign and that Foster was to take my place, that I +was to edit General Sherman's letters, and ample details were given +of arrangements for the future--not a word of which was true. + +In the latter part of February, I received a letter from the +Citizens' Republican Association of Cincinnati, of which Lewis +Voigt was president, the occasion of which is stated in my reply. +I knew, from my observation in the summer and fall previous, that +a single man held and controlled the Republican nominations in +Hamilton county and that he, in effect, had cast ten votes in the +Ohio house of representatives--one refusing to obey instructions-- +and three votes in the senate on the election of a United States +Senator, when I knew and they knew that the people of that county +were divided in opinion between Foraker and myself, but they had +committed themselves to their "boss" to vote for Senator as he +should direct, in order to secure his "influence" in the primaries. +I knew that if I answered the letter of the association truly I +would be reproached by the timid with the cry "Hush," "Hush," but +I felt it was my duty to answer and I did, as follows: + + "Washington, D. C., February 29, 1892. +"Messrs. Lewis Voigt, Chairman; Evan Evans, Secretary, and others: + +"Gentlemen:--Your note of the 22nd inst. is received. You state +that you were appointed by a Republican meeting, held at the Lincoln +club, that had 'for its object' the overthrow of a gang in Hamilton +county who have seized and degraded the 'Republican organization.' +You inclose the circular of your executive committee to the +Republicans of Hamilton county, proposing an organization of the +'Citizens' Republican Association,' with a view of rebuking corruption +and purifying our party 'affairs from offenses and scandalous +methods,' and request me to give my opinion of your movement. + +"While I do not wish to interfere in any way with the methods +adopted by the people of Hamilton county to ascertain the popular +will, yet I cannot refuse to answer frankly the inquiry of so +respectable a body of Republicans who complain that the popular will +is defeated by a corrupt gang, using offensive and scandalous +methods. My opinion is founded upon information gathered from many +of your citizens and the public press of Cincinnati, as well as +from your own statement. If I am in error as to existing methods +for the control of nominations and the corrupt practices of political +managers, your people can correct me and I will be gladly convinced +of my error. + +"I do not see how any self-respecting Republican can differ with +you in your effort to secure to the Republican voters of Hamilton +county the free and unimpeded selection of candidates for office, +without the intervention of a boss or the corrupt use of money to +purchase the nominations. As I understand, the substantial control +of all local Republican appointments, and nominations to public +offices or employments of every grade in Hamilton county, is +practically in one man, that it is rare that anyone can secure any +place on the Republican ticket, from judge of the highest court in +your county, to the least important office, without his consent, +that this consent is secured in most cases by the payment of a +specific sum of money, that the money so collected is apportioned +between the 'boss' and what is called the 'gang,' and used to +control the primaries for the election of delegates to your county, +state and congressional conventions, and that when any office +carries with it patronage it is made the express and implied +condition in the nomination of the candidate that this patronage +must be transferred to the 'boss.' + +"I understand also that the appointments made by your local boards, +and even some federal offices, are in effect transferred to the +same person to whom applicants are sent and whose recommendation +decides the appointment, so that one man controls by corrupt methods +nearly all nominations and appointments in Hamilton county, and +this rule is only tempered by occasional respect to public opinion, +when the boss thinks it unsafe to disregard it. These methods were +strikingly exemplified in the last county convention, when a decided +majority of a delegation of ten representatives and three senators +were nominated for the Ohio legislature, pledged beforehand to vote +for the person to be designated by the boss when the time came for +the election of the Senator of the United States. His decision +was carefully withheld until the election was over and was then +announced. In this way the vote for United States Senator of the +most populous city and county in Ohio was, during the canvass, +held, as I believe, for sale, not by the persons nominated as +Senators and Representatives, who are highly reputable citizens, +but by a corrupt organization which was able to control the +nominations and practically to exercise the power to vote for United +States Senator intrusted to its nominees. + +"Surely such a condition of public affairs in Hamilton county not +only justifies, but makes it imperative, that the Republicans of +the county should promptly and fearlessly correct these practices. +It does not diminish their responsibility that similar methods are +adopted by the Democratic party. A reform by Republicans will +compel a reform by Democrats, or leave them in a hopeless minority. +Public attention has been called by you to these conditions, but +the people alone can furnish the remedy; that is, by general +attendance of lawful voters at the primaries, and by the election +of delegates who will be controlled in their votes by the wishes +of their constituents, and not by the dictates of a boss for a +slate ticket prepared and arranged by him, as was done in the last +county conventions. There is no rule so obnoxious, so easy to +break, as boss rule, and there is no rule so enduring, or so wise, +as the unbiased choice and action of a popular assemblage. Since +I have been in public life, I have not sought to influence nominations +and conventions, and do not wish by this letter to do so, except +to join in your appeal to the electors of Hamilton county to assert +their right to make nominations and hold conventions, a right too +sacred to be delegated to anyone, and especially to one who would +sell nominations to elective offices. When the innumerable offices, +employments, contracts and labor of a great city, and all the public +improvements, are made to contribute to a great corruption fund +which is used by a single manager, or, as is apt to be the case, +by two managers, one of each party, it tends to destroy the power +of the people, to promote extravagance, to increase taxes, and +finally to produce riots and violence. Whenever such methods appear +in municipal governments, it is the duty of good citizens, without +respect to party, to depose the boss and enthrone the people. + + "Very respectfully yours, + "John Sherman." + +I have never regretted writing this letter and its broad publication. +Whether a reform has been effected in Hamilton county I do not +know, but my caution against bossism in politics may be useful. + + +CHAPTER LXII. +SECOND ELECTION OF GROVER CLEVELAND. +Opposition to General Harrison for the Presidential Nomination--My +Belief That He Could Not Be Elected--Preference for McKinley-- +Meeting of the National Republican Convention at Minneapolis-- +Meeting of Republicans at Washington to Ratify the Ticket--Newspaper +Comment on My Two Days' Speech in the Senate on the Silver Question +--A Claim That I Was Not in Harmony with My Party on the Tariff-- +My Reply--Opening Speeches for Harrison and Reid--Publication of +My "History of the Republican Party"--First Encounter with a "Kodak" +--Political Addresses in Philadelphia, New York, Cincinnati, Chicago +and Milwaukee--Return to Ohio--Defeat of Harrison. + +During the spring and summer of 1892, prior to the renomination of +General Harrison for President and Whitelaw Reid for Vice President, +the choice of candidates was the general subject of comment. A +good deal of opposition to General Harrison was developed, mainly, +I think, from his cold and abrupt manners in his intercourse with +those who had business with him. His ability and integrity were +conceded, but he was not in any sense popular. This was apparent +especially in New York, that state that nominated him in 1888. +During all the period mentioned many names were canvassed, mine +among others, but I uniformly declined to be a candidate, and said +if I had a vote in the convention it would be cast for Harrison. +Some of his friends, especially Charles Foster, complained in +published interviews that I had not taken a more active part in +securing his nomination. From later developments I became satisfied +that Harrison could not be elected, that Platt and a powerful New +York influence would defeat him if nominated. I therefore preferred +the nomination of a new man, such as William McKinley, but he had +committed himself to Harrison, and, according to my code of honor, +could not accept a nomination if tendered him. + +The Republican national convention met at Minneapolis on the 7th +of June. On the first ballot, Harrison received 535 votes, Blaine +182, McKinley 182, Reed 4, Lincoln 1. The southern states gave +Harrison 229 votes and other candidates 69, thus securing to Harrison +the nomination. Both Blaine and McKinley promptly acquiesced in +the result. I did not think the nomination wise, but was reported, +no doubt correctly, as saying to an interviewer: + +"The nomination is one I expected to be made in the natural order +of things. The attempt to bring out a dark horse against two +persons evenly matched, or supposed to be so, is an extremely +difficult feat, because any break from one of the leaders would +naturally carry a portion of his followers to the other leader. +Therefore, the nomination of Harrison seemed to be the natural +sequence as soon as it appeared that he had a majority over Blaine, +which, I think, was apparent from the very beginning. I think that +the nomination being made, all will acquiesce in it and try to +elect the ticket. There was far more discontent with the nomination +four years ago than there is now. Then there were rapid changes +made that were to be accounted for only by agreements and compacts +made among leading delegates, but that was impossible in this case +because the convention was divided between prominent candidates. +I think the Republicans in every state will cheerfully acquiesce +in the result, and hope and expect that we can elect the ticket." + +Soon after the nominations were made, Ohio Republicans in Washington, +held a ratification meeting. Alphonso Hart acted as president of +the meeting. He said it was not a matter of surprise that there +had been a difference of opinion as to candidates at Minneapolis, +when the choice was to be made between Harrison, Blaine, McKinley, +Reed and Lincoln. To-day their followers were all Harrison men. +I entered the hall as he was closing and was loudly called upon +for a speech. I said I had come to hear the young Republicans, +McKinley and Foster. I congratulated my hearers upon the bright +prospect of Republican success, and declared that Harrison would +be elected because he ought to be. The following synopsis of what +I said was published in the papers: + +"President Harrison was all right. Personally, perhaps, he (the +Senator) would have been in favor of McKinley, but there was time +enough ahead for him; the future would witness his exaltation. He +eulogized McKinley most eloquently and declared him to be one of +the greatest and best men in public life. It was the best thing +to nominate Benjamin Harrison and the next thing to do would be to +elect him. It made no difference whom the Democrats trotted out +against him, he could and would win. + +"The Senator said he was getting old now and did not feel like +working as he once did. He wanted to take things easy and let the +young men exert themselves. 'Let me,' he said, 'play the part of +Nestor and talk to you in a garrulous sort of a way; give you good +advice, which you do not always heed. Let me wander around like +the old farmer and watch the young men toil, but if I can mend an +old spoke or repair a broken wheel call upon John Sherman--he will +do his best.'" + +On the 1st of July I started from Baltimore, by boat, for Boston, +for the recreation and air of a short sea voyage. I arrived on +the 3rd, and met, as usual, a reporter who asked many questions, +among others as to the condition of the silver bill and whether +Harrison would approve it if it should pass. I answered, I believed +Harrison would veto it, and also believed that if Cleveland was in +the chair he would do the same. + +Pending this presidential nomination, my mind was fully occupied +by my duties in the Senate. I made my two days' speech on the +silver question, already referred to, when the active politicians +were absorbed in what was to happen in the convention at Minneapolis. +I quote what was said in papers of different politics, not only as +their estimates of the speech, but also of the state of my mind +when it was made: + +"The two days' speech of Senator Sherman on the Stewart silver bill +is undoubtedly the greatest speech he has ever made. More than +that, it is probably the greatest speech that ever was made in the +Senate on any financial question. It is interesting to note that +Mr. Sherman, after speaking two hours and a half on Tuesday, said +that he was not at all tired, and was ready to go on and finish +then. This was said in reply to a suggestion that the Senate should +adjourn. For one who has passed his sixty-ninth year, this is +surely a remarkable exhibition of mental and physical powers. + +"Such a speech, covering not only the silver question, but the +whole range of national finance, cannot be reviewed in detail within +the limits of a newspaper article. All that can be said about +details is that Mr. Sherman has not merely a well furnished mind +on the whole range of topics embraced in his discourse, but so well +furnished that there is no point too small to have escaped his +attention or his memory. + +"Give him a clear field, such as the statesmen and financiers of +Europe have, where there are no wrongheaded and befooled constituencies +to be reckoned with, and he would be _facile princeps_ among them." +--New York "Evening Post," June 2, 1892. + +"In his latest great speech on free coinage, Senator Sherman, after +depicting the inevitable disaster which the silver standard would +bring upon the United States--drawing an impressive lesson from +the experience of countries having a depreciated silver currency-- +deals with the subject of bimetallism in his usual lucid way. He +has been called a 'gold bug,' and is no doubt willing to accept +the epithet if it signifies a belief in the gold standard under +present conditions. But he declares himself to be a bimetallist +in the true sense of the term. + +"What the Senator means by bimetallism is the use of gold and silver +and paper money maintained at par with each other; more definitely, +the different forms of money of different temporary values must be +combined together by the law in some way to make them circulate as +equal with each other. This is accomplished now by our laws and +the pledge of the government to keep all forms of money at a parity +with that form having the greatest intrinsic value. Whether, under +the law requiring the purchase of 54,000,000 ounces of silver a +year, silver and gold could permanently be maintained at the same +value as money, at the existing ratio of sixteen to one, is a matter +concerning which the Senator expresses doubt. He would repeal or +materially amend the law of 1890. Furthermore, he would change +the ratio. The increased production of silver and the consequent +decline in price warrant this course, and it is a financial and +business necessity if silver is to enter more largely into circulation +or into use as the basis of paper."--Cincinnati "Times Star," June +4, 1892. + +"In a conspicuous degree Senator Sherman, of Ohio, represents the +noblest principles and traditions of the Republican party. He is +an astute politician; but, much better than that, he is a wise, +public-spirited, broad-minded statesman. + +"With regard to the financial and economic principles, which are +vital ones, and which must be made the dominating ones of the +Republican campaign, Mr. Sherman's opinions and convictions are +known to be in harmony with those of shrewdest judgment and wisest, +safest counsel. Mr. Sherman is the strongest, most effective +defender of the principle of honest money now in public life, and +a consistent supporter of the policy of protection. + +"Within the last few days Mr. Sherman, in one of the most masterly +and cogent arguments ever made in the Senate, has indisputably +proved the length, depth and breadth of his perception of true, +just, safe financial principles and his unconquerable loyalty to +them. At a time when the enemies of an honest, stable currency +are seeking to destroy it and to set up in its place a debased, +unstable, dishonest currency, the country would accept this exponent +of sound, wise finance and a reliable, steadfast currency with +extraordinary satisfaction."--Philadelphia "Ledger and Transcript," +June 8, 1892. + +"While Senator John Sherman's mail is loaded down with letters from +all parts of the country in reference to the presidency, while a +thousand suggestions reach him from all quarters that after all +_he_ is not unlikely to be the man upon whom the Minneapolis +nomination will light, and while the mass of people are listening +with feverish interest for news from the convention, Sherman calmly +rises in his place in the Senate and delivers a five hours' speech +upon the coinage and the currency, which will not only rank as +perhaps the greatest effort of his own life, but will constitute +a text-book upon the subject for half a dozen generations to come. + +"Men will not read the speech this week; but the unusual circumstances +under which it was delivered and the curious spectacle of a great +mind discussing so abstract a subject amid the fervid heat and +excitement attending a national convention of his own party, will +make everybody look up the speech after the convention is over and +give it more readers, perhaps, than any speech upon the coinage +and the currency ever had since the foundation of the government." +--"Ohio State Journal," June 9, 1892. + +Soon after the adjournment of Congress, on the 5th of August, I +returned to Mansfield. At this time the Boston "Herald" alleged +that I was not in harmony with my party on the tariff. This was +founded upon an erroneous construction of my reply to Carlisle. +The article was called to my attention by W. C. Harding, of Boston, +to whom, in reply, I sent the following letter on August 29: + +"Your note of the 27th is received. In answer I have to say that +the Boston 'Herald' in the article you inclose, has totally +misconstrued my position on the tariff. I am decidedly in favor +of a protective tariff; one framed with a view not only to secure +ample revenue for the support of the government, but with a distinct +purpose to encourage and protect all productions which can be +readily produced in our country. I do not believe that a tariff +framed under the doctrine now announced and proclaimed by the +Democratic party in its national platform can protect and foster +our home industries. + +"Mr. Tilden, and the men of his school, believed that the old +doctrines of the Democratic party, proclaimed in former national +platforms and supported by the declarations of Jefferson, Madison +and Jackson, was a wise and constitutional exercise of national +power. This doctrine has been abandoned and denounced by the +Democratic platform recently adopted by the Chicago convention. +A tariff framed in accordance with this new doctrine would be +confined simply to levying revenue duties, excluding the idea of +protection, and that is the purpose and object of the men who made +the platform, and of the men in the Democratic convention that +adopted it by a large majority. + +"Such a tariff might be levied exclusively on articles we cannot +produce in this country, such as sugar, coffee and tea. I have +believed that as to certain items in different tariffs we have gone +beyond the line of protection which is necessary to foster American +industries. A few rates have been adopted that I think will exclude +competition between foreign and American productions and secure a +monopoly to the American manufacturer. This I do not believe to +be a wise policy. There are some details of the McKinley tariff +bill that may be subject to this objection, but on the whole it is +the fairest and best tariff, not only for revenue, for the protection, +that has had a place on our statute book. The tariff plank of the +Republican convention at Minneapolis is the clearest statement of +the extent of protection favored by the great mass of the Republicans +of this country. + +"The actual result of the McKinley bill has been not only to give +to all American industries reasonable protection, but has increased +our foreign trade, enlarged our exports and our imports, and greatly +encouraged and added to all kinds of American productions, whether +of the field or of the workshop. I fear the Boston 'Herald' has +overlooked the striking difference between the old position of the +Democratic party and the one now proclaimed by that party. The +tendency and drift of the Democratic party is now more and more in +favor of free trade, and in open opposition to any favor shown by +discriminating duties to foster, encourage and diversify American +industries." + +I attended the state fair at Columbus early in September and met +the leading Republicans of the state. I noticed an apparent apathy +among them. The issue between the parties was for or against the +McKinley tariff. The parties did not differ materially on the +silver question, but did differ as between national and state banks. +The Democratic party had resolved in favor of the repeal of the +tax on state bank circulation, but it was believed that Cleveland +would repudiate or evade this dogma. There seemed to be no enthusiasm +on either side, but there was less dissatisfaction with the existing +administration than is usual during the incumbency of a President. +The country was prosperous. The people had confidence in Harrison +and the general drift seemed to be in his favor. + +In September I wrote an article for the New York "Independent" on +"The History of the Republican Party." It was confined chiefly to +the contention that the Republican party was an affirmative party, +adopting, declaring and executing great public measures of vital +importance, while the Democratic party was simply a negative party, +opposing all the Republican party's measures but acquiescing in +its achievements. I insert the closing paragraph: + +"Republicanism, on the other hand, holds fast to everything that +is ennobling and elevating in its history. It is the party of +national honor, which has removed the foul reproach of slavery, +and redeemed the plighted faith of the government in financial +legislation and administration. It is the party of equal rights, +an unsullied ballot and honest elections. It is the party of +national policies, of comprehensive scope and enlightened self- +interest, by which industry is diversified, labor systematically +protected, and the prosperity of all classes and sections promoted. +Between its present policies and the traditions of its glorious +past there is unbroken continuity of patriotic action." + +On the 30th of September, I made my first speech in this canvass +at North Fairfield. The place, audience, and surroundings gave me +a special interest in the meeting. Thirty-eight years before, I, +then a young man, spoke at the same place, before a similar audience, +as a candidate for Congress, nominated by a party then without a +name. Now I was about to address an audience chiefly composed of +men and women, the children of my old constituents, who had been +born since my first appearance there. It is a farming region, well +cultivated, and but little changed in appearance by the lapse of +years. The great change was the absence, in the grave, of the +leading men I had met on my first visit, but they were represented +by descendants so numerous that they had to meet in the open grove +instead of the simple meeting-house of the olden time. The +comparatively few old settlers present who had attended the former +meeting, many of whom had been soldiers in the army, greeted me +warmly and reminded me of incidents that then occurred. It was +natural, under these circumstances, that my speech should be +reminiscent; but, in addition to the history of events, I stated-- +I think fairly--the issues immediately involved--of tariff, currency +and coin. I closed my speech with the following reference to the +presidency: + +"As to your vote for President I do not believe any Republican has +any doubt. It does not follow that because a man is President, or +nominated as such, he ought to be lauded to the skies. We have in +this republic no gods or demigods. I know General Harrison as well +as one man ever knew another after an intimate acquaintance for +ten years. He is a man of fine character, so far as I understand, +without blemish or reproach. His ability is marked and is now +recognized by all parties, I may say, in all parts of the world. +He has the lawyer's habit of taking the opposite side of a question, +but before he acts he is apt to be on the right side. When in the +Senate he did not show the versatility of talent he has exhibited +as President. All his utterances have been marked with dignity +suited to his high position, yet with delicate appropriateness and +precision that will admit no criticism. I have no controversy with +Mr. Cleveland. I think he is better than his party. On important +and critical questions he has been firmly right. But in the choice +between them for the high office to which they aspire no Republican +should hesitate to vote for Harrison, and an honest Democrat should, +in view of the tendencies of the Democratic party on the questions +I have discussed, decide to go and do likewise." + +The next meeting of note that I attended was at the Academy of +Music in Philadelphia. I do not recall any meeting that I ever +addressed within four walls more striking and impressive than this, +not only in numbers and intelligence, but in apparent sympathy with +the speaker. Of the persons mentioned by me those who received +the loudest applause were in their order Blaine, McKinley and +Harrison. In opening I said: + +"When I was invited to speak to you I was told that this was to be +a meeting of business men, to consider business questions involved +in a presidential election. I will, therefore, confine myself to +business issues distinctly made between the two great political +parties of our country. The people of this city of Philadelphia, +the greatest manufacturing city on the American continent, are as +well, or better, prepared to decide these issues wisely as any +other equal number of American citizens. I assume you are not much +troubled with third parties. The temperance question will be +settled by each individual to suit himself. The only Farmers' +Alliance I know of here is the Farmers' club, who dine sumptuously +with each other as often as they can and differ with each other on +every subject. I assume that you are either Republicans or Democrats, +that you are for Benjamin Harrison or Grover Cleveland. + +"The questions involved, in which you are deeply interested, are +whether duties on imported goods should be levied solely with a +view for revenue to support the government, or with a view, not +only to raise revenue, but to foster, encourage and protect American +industries; whether you are in favor of the use of both gold and +silver coins as money, always maintained at parity with each other +at a fixed ratio, or of the free coinage of silver, the cheaper +money, the direct effect of which is to demonetize gold and reduce +the standard of value of your labor, productions and property +fully one-third; whether you are in favor of the revival and +substitution of state bank paper money in the place of national +money now in use in the form of United States notes, treasury notes +and certificates, and the notes of national banks. + +"These are business questions of vital interest to every wage +earner, to every producer and to every property owner, and they +are directly involved in the election of a President and a Congress +of the United States. Surely they demand the careful consideration +of every voter. They are not to be determined by courts or lawyers +or statesmen, but by you and men like you, twelve million in number, +each having an equal voice and vote." + +The body of my speech was confined to the topics stated. I closed +with the following reference to Harrison and Cleveland: + +"The Republican party has placed Benjamin Harrison in nomination +for re-election as President of the United States. He is in sympathy +with all the great measures of the Republican party. He fought as +a soldier in the ranks. His sympathies are all with his comrades +and the cause for which they fought. + +"He has proven his fitness for his high office by remarkable ability +in the discharge of all its duties. He heartily supports the +principles, past and present, of his party. He has met and solved +every question, and performed every duty of his office. His +administration has been firm, without fear and without reproach. +I do not wish to derogate in the slightest degree from the merits +of Mr. Cleveland. His highest merit is that he has checked, in +some respects, the evil tendencies of his party; but he was not in +active sympathy with the cause of the Union in the hour of its +peril, or with the men who fought its battles. He is opposed to +the protection of American industries. He supports, in the main, +the doctrines and tendencies of the Democratic party. + +"We believe that the honor, safety, and prosperity of our country +can be best promoted by the election of a Republican President and +Vice President, and a Republican Congress, and, therefore, I appeal +to you to give to Benjamin Harrison and Whitelaw Reid, his worthy +associate, and to your candidates for Congress, your hearty and +disinterested support." + +It was at this meeting that for the first time I encountered the +kodak. The next morning the "Press," of Philadelphia, illustrated +its report of the speech with several "snap shots" presenting me +in various attitudes in different parts of the speech. I thought +this one of the most remarkable inventions of this inventive age, +and do not yet understand how the pictures were made. The comments +of the daily papers in Philadelphia were very flattering, and +perhaps I may be excused for inserting a single paragraph from a +long editorial in the "Press" of the next day, in respect to it: + +"His speech is a calm, luminous and dispassionate discussion of +the business questions of the canvass. It is pre-eminently an +educational speech which any man can hear or read with pride. +Senator Sherman excels in the faculty of lucid and logical statement. +His personal participation in all our fiscal legislation gives him +an unequaled knowledge both of principles and details, and he is +remarkably successful in making them clear to the simplest +intelligence. The contrast between his candid, sober and weighty +treatment of questions, and the froth and fustian which supply the +lack of knowledge with epithets of 'fraud' and 'robbery' and 'cheat,' +is refreshing." + +On Monday evening, the 11th of October, I spoke in Cooper Union in +the city of New York. It was an experiment to hold a political +meeting on the eve of a day devoted to Columbian celebrations and +a night to magnificent fireworks, but the great auditorium was +filled, and among the gathering was a large number of bankers and +business men interested in financial topics. I was introduced to +the audience in a very complimentary manner by Mr. Blanchard, +president of the Republican club, and was received with hearty +applause by the audience. I said: + +"Ladies and gentlemen, I congratulate the Republicans of the State +of New York that at last we have brought the Democratic party to +a fair and distinct issue on questions involved in the presidential +campaign. Now for more than thirty years that party has been merely +an opposition party, opposed to everything that we proposed, and +having no principles or propositions of their own to present. They +declared the war a failure; they were opposed to the homestead law, +they were opposed to the greenback; they were opposed to everything +that we did, but now, thank God, they have agreed to have one or +two or three issues to be determined by the people." + +I then stated the issues involved in the canvass in very much the +same terms as in Philadelphia, but the speech in New York was made +without notes and was literally reported in the "Tribune," while +the Philadelphia speech was prepared and followed as closely as +possible, without reference to manuscript. I have now read the +two speeches carefully, and while the subject-matter is the same +in both, the language, form and connection are as different as if +delivered by two distinct persons who had not conferred with each +other. My long experience convinces me that while it is safe for +a person to write what he intends to say, yet it is better to +carefully study the subject and then to speak without reference to +notes or manuscript. This depends, however, upon the temperament +and poise of the speaker. Nothing is more discouraging to an +audience than to hear a speech read, except it be the attempt to +speak offhand by a person who has not acquired a full knowledge of +the subject-matter and does not possess the art of recalling and +arranging the method of his address. + +I believe my speech in New York covered all the issues involved in +the canvass fairly and fully stated. I arraigned the Democratic +party, especially for its declaration in 1864 that the war was a +failure, when Grant was holding on with his deadly grip, and when +Sherman and Sheridan were riding to battle and to victory. This +declaration was more injurious to the Union cause than any victory +by the Confederates during the war. I closed with the following +reference to the respective candidates: + +"The Republican party has nominated for President, Benjamin Harrison. +When a lawyer in full practice, the sound of the enemy's guns came +to his ears, the call of Lincoln filled his heart, and he entered +the army. He fought through the war, a brave and gallant soldier. +He returned again to his profession and to his wife and child, +living in a quiet suburb of Indianapolis. He gradually became +recognized as an able lawyer, and was finally sent to the Senate. +For six years he sat by my side. I know him as well as I know any +man. He is without stain or blemish. He is a man of marked ability, +an able debater. He has grown greatly since he has been President +of the United States. His speeches are models of propriety and +eloquence. In every act of his life while President he had come +up to the full standard and measure of that great office. If there +was a controversy with foreign powers, the strongest in the world +or the weakest, he was fair and just, but firm and manly. + +"His worthy associate is Whitelaw Reid, of your city. He has been +placed on the ticket by the side of Harrison. He is an honorable +man. I knew him when he was a young reporter, making his living +as best he could, and helping his father and mother. He has shown +himself worthy the honor conferred upon him by the Republican party. + +"Now, I have nothing to say against Mr. Cleveland. I am not here +to belittle any man. I have sometimes thought he is better than +his party, because he has stood up firmly on occasion in resistance +of some of their extreme demands; but there is this to be said of +him, that he was a man full grown at the opening of the war, an +able-bodied man when the war was on. I have never known, nor has +it ever been proved, that he had any heart for or sympathies with +the Union solider or the Union cause. + +"I know Harrison, from the top of his head to the bottom of his +feet, was in that cause. I do not see how any patriotic man, who +was on the side of his country in the war, can hesitate to choose +Harrison rather than Cleveland." + +I returned from New York to Cincinnati, where I had agreed to speak +in Turner Hall on the 14th of October. This hall had long been a +place for public meetings. It is situated in the midst of a German +population and is their usual place for rendezvous. They had +recently greatly improved and enlarged it, and wished me to speak +in it as I had frequently spoken in the old hall. It was well +filled by an intelligent audience, nearly all of whom were of German +birth or descent. They were, as a rule, Republicans, but they were +restive under any legislation that interfered with their habits. +They drank their beer, but rarely consumed spirituous liquors, and +considered this as temperance. With their wives and children, when +the weather was favorable, they gathered in open gardens and listened +to music, in which many of them were proficient. Such was my +audience in Turner Hall. I spoke to them on the same topics I did +to purely American audiences, and to none who had a better +comprehension and appreciation of good money of uniform value, +whether of gold, silver or paper. + +From Cincinnati I went to Chicago. I had been invited by Jesse +Spaulding, a leading business man of that city, to make an address +at Central Music Hall on the evening of the 22nd of October. As +I was to attend the dedication, on that day, of the Ohio building +in the grounds of the World's Columbian Exposition, I accepted the +invitation of Mr. Spaulding. I regarded it as a bold movement on +the part of business men to call such a meeting in the midst of +the excitement and hurry of the dedication of the great buildings +of the World's Fair. Still, that was their business and not mine. +I carefully outlined the points I wished to make, something like +a lawyer's brief, and had the order of topics clearly arranged and +engraved on my mind. I determined to use no word that would not +be understood by every man who heard me, and to avoid technical +phrases. + +When the hour appointed arrived I was escorted to the place assigned +me, and faced an audience that filled the hall, composed of men of +marked intelligence who could and would detect any fault of logic +or fact. The speech was fairly reported in the Chicago papers, +and was kindly treated in their editorial columns. After a brief +reference to the Exposition buildings and the great crowd that had +witnessed their dedication, and the wonderful growth of Chicago, +I said: + +"You will be called upon in a short time to elect a President of +the United States who will be armed with all the executive authority +of this great government, and also a Congress which will have the +delegated power, for two years, to make laws for the people of the +United States. + +"Now, there is a contest in this country, not between small parties, +but between great parties. I take it that in this intelligent +audience it is not necessary for me to discuss the temperance party +or the farmers' party. The best temperance party is the individual +conscience of each citizen and inhabitant of the United States. +As for the farmers' party, the Republican party has been the farmers' +party as well as the people's party since the beginning of its +organization in 1856. The controversy is between the two, the +Democratic and Republican parties, as they have named themselves. + +"The Democratic party has a very popular name. It means a government +through the people. But the Republican party has a still more +popular name. It is a government by the representatives of the +people, and that name expresses more distinctly the true nature of +our government than the name Democratic, but the Democratic party +has forfeited for more than thirty years the very name of the +Democratic party, and ought now to be christened the Confederate +Democracy of America." + +The "Tribune" and "Inter-Ocean" had friendly editorial articles +about the meeting, and the "Tribune" especially, which in times +past was very far from being partial to me, expressed this opinion +of the meeting and speech: + +"It was a test of the capacity of Chicago for great popular +gatherings, and a demonstration of its interest in political affairs, +that, after a week of civic celebration, upon a scale more colossal +than this country has ever witnessed before and calling for a +maximum of effort and endurance, Central Music Hall was crowded +from gallery to parquet, Saturday night, with thousands of business +men and others who are interested in the great issues of the +political campaign, to listen to the address of the Hon. John +Sherman, of Ohio. It was something more than an exposition of +Chicago's vital interest in these issues. It was a personal +compliment and a rare expression of the popular confidence in the +veteran Senator, this immense and enthusiastic gathering of +substantial citizens after the absorbing and exacting duties of +the week. It testifies eloquently to the enthusiasm and determination +of Chicago Republicans in the pending campaign. + +"It is no derogation of Senator Sherman's abilities to say one does +not look to him for the eloquent periods of the orator that carry +away audiences on waves of enthusiasm. His strength lies in his +convincing statement, his cogency of argument, his array of facts, +and his powerful logic. No man in the United States, perhaps, is +better qualified to speak upon the issues of this campaign than +Senator Sherman. He appeals to the thought and reason of his +hearers, and he never appeals in vain, and rarely has he made a +stronger appeal than in his Music Hall speech. The three issues +discussed by him were wildcat currency, the silver question, and +the protective tariff question. His discussion of the wildcat +currency was exhaustive, and he pictured the evils that must flow +from its resumption in forcible and convincing terms." + +On the 25th of October, Senator W. P. Frye, of Maine, and I spoke +at Schlitz's amphitheater in Milwaukee. The notice had been brief, +but the attendance was large. The audience was composed chiefly +of German Republicans. Frye and I had divided the topics between +us. He spoke on the tariff and I on good money. On the latter +subject the people before us were united for a sound currency, all +as good as gold and plenty of it. I made my speech first, but Frye +made a better one on the tariff, upon which they were somewhat +divided. Such a division of opinion is an advantage to the speaker, +and Frye availed himself of it by making an excellent and interesting +address. The speeches were well reported the next morning, an +evidence of enterprise I did not expect. + +After my return from Milwaukee to Ohio I made several speeches +prior to the election. While the Republican meetings were large, +I could not overlook the fact that the Democratic meetings were +also large, that the personality of Cleveland, and his autocratic +command of his party, kept it in line, while his firm adherence to +sound financial principles, in spite of the tendency of his party +to free coinage and irredeemable money, commanded the respect of +business men, and secured him the "silent vote" of thousands of +Republicans. + +In Ohio the Republican party barely escaped defeat, the head of +the ticket, Samuel M. Taylor, the candidate for secretary of state, +receiving but 1,089 plurality. The national ticket did not fare +quite so well, receiving but 1,072 plurality, and, for the first +time since the election of Franklin Pierce in 1852, Ohio cast one +Democratic electoral vote, the remaining twenty-two being Republican. +Cleveland and Stevenson received 277 electoral votes, and Harrison +and Reid 145. + +Harrison did not receive the electoral vote of any one of the +southern states that were mainly responsible for his nomination, +nor any one of the doubtful states in the north that contributed +to his result, including Indiana, where he resided, and which went +Democratic by a plurality of 7,125. + +As a rule the states that voted in the convention for Blaine and +McKinley gave Harrison their electoral vote. The Democrats elected +220 Members of the House of Representatives, the Republicans 126 +and the People's party 8. + +The result was so decisive that no question could be made of the +election of Cleveland. The causes that contributed to it might +have defeated any Republican. It is not worth while to state them, +for a ready acquiescence in the result of an election by the American +people is the conservative element of our form of government that +distinguishes it from other republics of ancient or modern times. + + +CHAPTER LXIII. +ATTEMPTS TO STOP THE PURCHASE OF SILVER BULLION. +My Determination to Press the Repeal of the Silver Purchasing Clause +of the "Sherman Act"--Reply to Criticisms of the Philadelphia +"Ledger"--Announcement of the Death of Ex-President Hayes--Tribute +to His Memory--Efforts to Secure Authority to the Secretary of the +Treasury to Sell Bonds to Maintain the Resumption of United States +Notes--The Senate Finally Recedes from the Amendment in Order to +Save the Appropriation Bill--Loss of Millions of Dollars to the +Government--Cleveland Again Inducted Into Office--His Inaugural +Address--Efforts to Secure an Appropriation for the "World's Fair" +--Chicago Raises $1,000,000--Congress Finally Decides to Pay the +Exposition $2,500,000 in Silver Coin--I Attend the Dedication of +the Ohio Building at the Fair--Address to the Officers and Crew of +the Spanish Caravels. + +Soon after the election, and before the meeting of Congress, I +announced my purpose to press the repeal, not of the entire law +misnamed the "Sherman act," but of the clause of that act that +required the purchase by the United States of 4,500,000 ounces of +silver bullion each month. I had, on July 14, 1892, introduced a +bill for that purpose which was referred to the committee on finance. +I feared to press it pending the presidential election, lest the +agitation of the subject at that time should lead to the adoption +of free coinage. During the short session of that Congress, which +met on the 5th of December, I did not think it wise to urge this +bill though strongly pressed to do so. A majority of the Senate +were in favor of free coinage, and I was not sure but the House, +disorganized by the recent election, might not concur, and the +President either approve it or permit it to become a law without +his signature. When criticised for my delay by the "Ledger" of +Philadelphia, I replied, on the 14th of January, 1893, as follows: + +"It is as well known as anything can be that a large majority of +the Republican Senators, including myself, are decidedly in favor +of the repeal or suspension of the purchase of silver bullion. +They are ready to-day, to-morrow, or at any moment, to vote for +such repeal. It is equally well known that not more than one-fourth +or one-fifth of the Democratic Senators are in favor of such repeal, +and they will resort to extreme measures to prevent it. They are +openly pronounced for the free coinage of silver or the continuation +of the existing law. The pretense made that Republican Senators +would sacrifice the public interests for a mere political scheme +is without foundation, and I feel like denouncing it. If the +Democratic party will furnish a contingent of ten Senators in +support of the repeal of the silver act of 1890, it will pass the +Senate within ten days. The Democratic party as now represented +in the Senate is, and has been, for the free coinage of silver. +I hope the eastern Democracy and Mr. Cleveland may have some +influence in changing their opinions." + +Subsequent events proved the wisdom of this delay. + +On January 17, 1893, I reported from the committee on finance the +bill referred to. On the 3rd of February the question of the repeal +of this silver purchasing clause was incidentally brought to the +attention of the Senate by Mr. Teller, who announced that it was +not among the possibilities that it would be repealed at that +session. I took this occasion to explain that the reason why I +had not previously moved to take this bill up was that I was not +satisfied there was a majority in favor of its passage. The question +why it was not taken up had been frequently discussed in the +newspapers, but I did not consider it my duty to make such a motion +when it would merely lead to debate and thus consume valuable time, +though any other Senator was at liberty to make the motion if he +chose to do so. A motion to take it up was subsequently made by +Senator Hill and defeated by a vote of yeas 23, nays 42. + +No action was taken on the bill, and I only mention it in view of +subsequent events. + +Immediately after the Senate convened on the 18th of January, 1893, +I arose and announced the death of ex-President Hayes in the +following terms: + +"It becomes my painful duty to announce to the Senate the death of +Rutherford Birchard Hayes, at his residence in Fremont, Ohio, last +evening at eleven o'clock. By the usage of the Senate, when one +who has been President of the United States dies during the session +of the Senate, it has been, as a mark of respect to his memory, +recorded his death upon its journal and suspended its duties for +the day. + +"President Hayes held high and important positions during his life, +having been a gallant and distinguished Union soldier during the +war, a Member of Congress, three times Governor of the State of +Ohio, and President of the United States. He was a man of marked +ability, untarnished honor, unblemished character, and faithful in +the discharge of all his duties in every relation of life, against +whom no word of reproach can be truthfully uttered. + +"It was my good fortune to know President Hayes intimately from +the time we were law students until his death. To me his death is +a deep personal grief. All who had the benefit of personal +association with him were strengthened in their attachment to him +and in their appreciation of his generous qualities of head and +heart. His personal kindness and sincere, enduring attachment for +his friends, was greater than he displayed in public intercourse. +He was always modest, always courteous, kind to everyone who +approached him, and generous to friend or foe. He had no sympathy +with hatred or malice. He gave every man his due according to his +judgment of his merits. + +"I, therefore, as is usual on such occasions, move that the Senate, +out of respect to the memory of President Hayes, do now adjourn." + +In this formal announcement of the death of ex-President Hayes, I +followed the usual language, but it did not convey my high appreciation +of his abilities, nor my affectionate regard for him. This I have +done in previous pages. His life was stainless; his services in +the army and in civil life were of the highest value to his state +and country; he was an affectionate husband, father and friend, +and, in all the relations of life, was a honorable man and a +patriotic citizen. + +On February 17, I offered an amendment to the sundry civil +appropriation bill authorizing the Secretary of the Treasury, at +his discretion, to sell three per cent. bonds, redeemable in five +years from date, to enable him to provide for and maintain the +redemption of United States notes, according to the provisions of +the resumption act of January 14, 1875, to the extent necessary to +carry that act into full effect. I stated in explanation of this +provision that its object was to enable the Secretary of the +Treasury, in case an emergency should arise making a sale of bonds +necessary, to issue a three per cent. bond redeemable at the pleasure +of the United States after five years instead of a four per cent. +bond running thirty years, or a four and a half per cent. bond +running fifteen years, or a five per cent. bond running ten years, +which were the only bonds he could sell under existing law. + +After a long debate the amendment was agreed to by the vote of 30 +yeas and 16 nays. It was not agreed to by the House and the question +presented was whether the Senate would recede from the amendment. +I regarded this provision as of vital importance, and urged the +Senate to insist upon the amendment, not only as an act of wise +public policy, but as one of justice to the incoming administration. +In discussing this proposition, on the 1st of March, I said: + +"This conference report presents for our consideration again a +question of the importance, necessity, and propriety of the amendment +known as the bond amendment which I had the honor to offer, and +which had the sanction of the committee on finance of this body +and of a very large majority of the Senate; but for want of time +and the multitude of amendments pending there has been no vote in +the House of Representatives which enables us to know what is the +real opinion of that body on the subject. I can say no more on +that point except to express the confident belief that if the vote +had been taken the House would have concurred in the amendment. + +"I think it is due to us and due to the committee of which I am a +member that the exact history of that amendment shall be stated, +and then the Senate may act upon it as it sees proper." + +I then quoted the amendment as follows: + +"To enable the Secretary of the Treasury to provide for and to +maintain the redemption of United States notes according to the +provisions of the act approved January 14, 1875, entitled 'An act +to provide for the resumption of specie payments,' and, at the +discretion of the secretary, he is authorized to issue, sell, and +dispose of, at not less than par in coin, either of the description +of bonds authorized in said act, or bonds of the United States +bearing not to exceed three per cent. interest, payable semi-annually +and redeemable at the pleasure of the United States after five +years from their date, with like qualities, privileges, and exemptions +provided in said act for the bonds therein authorized, to the extent +necessary to carry said resumption act into full effect, and to +use the proceeds thereof for the purposes provided in said act and +none other." + +Continuing, I said that the resumption act referred to in the +amendment contained an important stipulation, the clause of the +resumption act which enabled the secretary to maintain specie +payments, and which is as follows: + +"To enable the Secretary of the Treasury to prepare and provide +for the redemption in this act authorized or required, he is +authorized to use any surplus revenues, from time to time, in the +treasury, not otherwise appropriated, and to issue, sell, and +dispose of, at not less than par, in coin, either of the descriptions +of bonds of the United States described in the act of Congress +approved July 14, 1870, entitled 'An act to authorize the refunding +of the national debt,' with like qualities, privileges, and +exemptions, to the extent necessary to carry this act into full +effect, and to use the proceeds thereof for the purposes aforesaid." + +I then had read to the Senate the character and description of +bonds authorized to be issued under what is called the refunding +act, referred to in the resumption act, as follows: + +"That the Secretary of the Treasury is hereby authorized to issue, +in a sum or sums not exceeding in the aggregate $200,000,000, coupon +or registered bonds of the United States, in such form as he may +prescribe, and of denominations of $50, or some multiple of that +sum, redeemable in coin of the present standard value, at the +pleasure of the United States, after ten years from the date of +their issue, and bearing interest, payable semi-annually in such +coin, at the rate of five per cent. per annum; also, a sum or sums +not exceeding in the aggregate $300,000,000 of like bonds, the same +in all respects, but payable, at the pleasure of the United States, +after fifteen years from the date of their issue, and bearing +interest at the rate of four and a half per cent. per annum; also, +a sum or sums not exceeding in the aggregate $1,000,000,000 of like +bonds, the same in all respects, but payable, at the pleasure of +the United States, after thirty years from the date of their issue, +and bearing interest at the rate of four per cent. per annum." + +Resuming my argument, I said: + +"It is apparent from these laws, which are fundamental in their +character, that the secretary has imposed upon him not merely the +privilege but the duty of maintaining or providing for the resumption +of specie payments and the maintenance of the specie standard in +gold and silver coin. He is also authorized by a subsequent act, +which I do not care to have read because it is not necessary, to +maintain $100,000,000 in gold in the nature of a redemption fund, +or rather that was the minimum limit provided in the law. In order +to perform this grave duty the Secretary of the Treasury was +authorized, at his discretion, whenever necessary to obtain the +coin required, to issue a bond bearing four per cent. interest +running for thirty years, or a bond bearing four and a half per +cent. interest running fifteen years, or a bond bearing five per +cent. interest running ten years. + +"It has been feared--I do not say that there has been occasion for +this fear--that the Secretary of the Treasury cannot maintain the +necessary resumption fund; that he may have to resort to the credit +of the government, upon which all the greenback issues of the United +States notes and bonds are founded; that he might have to resort +to the sale of bonds to obtain money, in order to maintain the +parity of the different forms of money in this country and the +redemption or payment in coin, when demanded, of the obligations +of the United States, especially the United States notes, commonly +called greenbacks. + +"When I came, in examining this question, to see whether or not +the law enacted in 1875 was applicable to the condition of affairs +in 1893, it was apparent to me, as it must have been to every man, +however ignorant he might be of the principles of finance, that +the conditions of our country were such that we would not be +justified, by public opinion or by the interests of our people, to +sell a bond bearing four or four and a half or five per cent. +interest. + +"Therefore, it was manifest to me, as it would be manifest to anyone +who would look at the question without any feeling about it at all, +that if we could borrow money at three per cent. on bonds running +for five years or for a short period of time, always reserving our +right to redeem these bonds within a short period, it would save +a vast sum to the people of the United States, at least one-fourth +of the interest on the bonds, and we would save more by the right +to redeem them if a favorable turn in the market should enable us +to do so. + +"I feel that it is a matter of public duty which I am bound to +perform, as being connected with the refunding laws and the resumption +act, that I should endeavor to make suitable provision for the next +Secretary of the Treasury. I knew this law could not take effect +until about the time the present secretary would go out, when the +new secretary would come in. Therefore, I drew this amendment as +it now stands, and it was submitted to the incoming Secretary of +the Treasury. He having been formerly a member of the committee +on finance and a Member of the Senate, and being familiar with us +all, came before the committee on finance and there stated the +reasons why, in his judgment, it might become, in case of exigency, +important for him to have the power to issue a cheaper bond. + +"He expressed the hope and belief, and I am inclined to agree with +him, that it might not be necessary to issue these bonds at all, +but that when the emergency came he must meet it as quickly as a +stroke of lightning; there must be no hesitation or delay; if there +should be a disparity between the two metals, or a run upon the +government for the payment of the United States notes, he must be +prepared to meet this responsibility in order to obtain coin with +which to redeem the notes. That statement was submitted to the +committee on finance in the presence of the honorable gentleman +who is to hold the high and distinguished office of Secretary of +the Treasury." + +I proceeded at considerable length to state the difficulties the +treasury must meet in consequence of the large increase of treasury +notes issued for the purchase of silver bullion. The Senate fully +appreciated the importance of the amendment, but in the hurry of +the closing days of the session it was said that to attempt to +reach a vote upon it in the House of Representatives would endanger +the passage of the appropriation bill, and therefore the Senate +receded from the amendment. It is easy now to see that its defeat +greatly embarrassed the new administration and caused the loss of +many millions by the sale of long term bonds at a higher rate of +interest than three per cent. + +On the 4th of March, 1893, Grover Cleveland was sworn into office +as President of the United States, and delivered his inaugural +address. It was a moderate and conservative document, dealing +chiefly with axioms readily assented to. Its strongest passages +were in favor of a sound and stable currency. He said that the +danger of depreciation in the purchasing power of the wages paid +to toil should furnish the strongest incentive to prompt and +conservative precaution. He declared that the people had decreed +that there should be a reform in the tariff, and had placed the +control of their government, in its legislative and executive +branches, with a political party pledged in the most positive terms +to the accomplishment of such a reform, but in defining the nature +or principles to be adopted he was so vague and indefinite that +either a free trader or a protectionist might agree with him. He +said: + +"The oath I now take to preserve, protect, and defend the constitution +of the United States, not only impressively defines the great +responsibility I assume, but suggests obedience to constitutional +commands as a rule by which my official conduct must be guided. +I shall, to the best of my ability, and within my sphere of duty, +preserve the constitution by loyally protecting every grant of +federal power it contains, by defending all its restraints when +attacked by impatience and resentment, and by enforcing its +limitations and restrictions in favor of the states and the people." + +This was a promise broad enough to cover the McKinley bill or the +Wilson bill. I do not criticise the address, for an inaugural +should contain nothing but thanks and patriotism. + +The chief interest at this period centered in the World's Fair at +Chicago, to celebrate the quadro-centennial of the discovery of +America by Columbus. Such a celebration was first proposed as +early as 1887, to be in the nature of an intellectual or scientific +exposition that would exhibit the progress of our growth, and to +take place at Washington, the political capital, under the charge +of the national authorities. As the matter was discussed the +opinion prevailed that the exposition should be an industrial one, +and the choice of location lay between Chicago, New York and St. +Louis. I was decidedly in favor of Chicago as the typical American +city which sprang from a military post in 1837, survived the most +destructive fire in history, and had become the second city of the +continent, and, more than any other, represented the life, vigor +and industry of the American people. The contention about the site +delayed the exposition one year, so that the discovery of 1492 was +not celebrated in 1892, but in the year following. This was the +first enterprise undertaken by Chicago in which it was "behind +time," but it was not the fault of that city, but of Congress, +which delayed too long the selection of the site. I was a member +of a select committee on the quadro-centennial appointed in January, +1890, composed of fifteen Members of the Senate. On the 21st of +April, 1890, a bill was pending in the Senate appropriating $1,500,000 +from the treasury of the United States to pay the expense of +representing the government of the United States in an exposition +in Chicago, in 1893. I made a speech in defense of the appropriation +and stated the benefits of such an exposition as shown by the one +in London and two in Paris that I had attended. While the receipts +at the gates for attendance did not in either case cover the expense, +yet the benefits derived greatly exceeded all expenses and left +great buildings of permanent value, such as the Crystal Palace at +Sydenham, and still more valuable buildings at Paris. I referred +to the centennial exposition at Philadelphia in 1876, and to the +innumerable state, county and city fairs in all parts of the United +States, all of which were of great value to the places where held. +These gatherings had revolutionized the social habits and greatly +improved the manners and intelligence of our people, and are likely +to increase in number in the future. The bill passed, but not +without serious opposition, and upon terms extremely onerous to +Chicago. + +This course of opposition continued until August, 1892. The people +of Chicago had raised the enormous sum of $11,000,000 without the +certainty of any return. All nations had been invited, and were +preparing to be represented at this exposition. The attention of +mankind was excited by the enterprise of a city only fifty years +old, of more than a million inhabitants, erecting more and greater +buildings than had ever been constructed for such a purpose. The +United States had not contributed to the general expense, but had +appropriated a sum sufficient to provide for its own buildings in +its own way, precisely on the footing of foreign powers. It became +necessary to borrow more money, and Congress was requested to loan +the exposition the sum of $5,000,000, to be refunded out of receipts, +in the same proportion as to other stockholders. This was declined, +but it was enacted that the United States would coin $2,500,000 in +silver, and pay the exposition that coin. Whether this was done +because silver bullion could be purchased for about $1,500,000 +sufficient to coin $2,500,000, or to make a discrimination against +the fair, I do not know. On the 5th of August, 1892, I expressed +my opposition to this measure. Both Houses were remaining in +session to settle the matter, and the President was delayed in +Washington, when, by reason of domestic affliction, he ought to +have been elsewhere. I said: "Under the circumstances, I do not +see anything better to be done than to allow the bill to pass. If +I was called upon on yea and nay vote I should vote against it." + +On the 22nd of October, 1892, I attended the dedication of the +building erected by the State of Ohio, on the exposition grounds. +The structure, though not entirely completed, was formally dedicated, +and the keys were duly delivered to Governor McKinley. On receiving +the keys he made a very appropriate address. I was called for by +the crowd, and was introduced by Major Peabody, president of the +State Board of Managers. I do not recall the words of my speech, +nor was it, or the various speeches made on this occasion, reported; +but I no doubt said that the United States was the greatest power +on earth, and Ohio was its garden spot. I made a political speech +that evening at Central Music Hall, as previously stated. + +Among the objects of the greatest interest at the exposition were +three Spanish caravels, the exact counterparts of the Santa Maria, +the Nina and the Pinta, the vessels with which Columbus made his +memorable voyage of discovery. These reproductions were made by +Spaniards at the place from which the original vessels sailed, and, +manned by Spanish sailors, followed the same course pursued by +Columbus to the islands he discovered and from thence sailed to +the mouth of the St. Lawrence, and following up that stream passed +through Lake Ontario, the Welland Canal, Lakes Erie, Huron and +Michigan, to Chicago, more than 1,000 miles from the Atlantic Ocean. +I had been invited by the managers of the exposition to deliver an +address of welcome to the officers and sailors of these vessels, +on their arrival at Chicago on the 7th of July, 1893. They were +received by the managers and a great crowd, and conducted to a +stand in the park of the exposition, where I made my address, too +long to insert here, but I quote a few paragraphs: + +"Mr. President, Captain Concas and the Officers and Mariners Under +His Command:--You have before you men and women of all races and +climes. They have met to share in this great exposition of the +industries of all nations. To-day they celebrate the discovery of +America by Christopher Columbus and the arrival here of the marine +fleet under your command, manned by the countrymen of those who +made the discovery of the new world. + +* * * * * + +"We have before us the reproduction of the Santa Maria, the Pinta +and the Nina, the three vessels that made this memorable voyage. +They are sent to us by the same chivalrous and gallant people who +built the original craft and manned and sailed them under the +command of Columbus. They are striking object lessons that speak +more eloquently than voice or words. We welcome them to this +exposition of the industries of the world. Here, on the waters of +this inland sea, 1,000 miles from the ocean traversed by Columbus, +in this city, the most marvelous result of the industry and energy +of mankind, we place this mimic fleet side by side with the monsters +that have come from the inventive genius of the American people, +not to extol our handiwork, but to extol the men who, four hundred +years ago, with such feeble means and resources, opened the way to +all the achievements of succeeding generations. You can look at +them where they quietly rest upon the waters of the great northwest. +In such as these one hundred and twenty men sailed on an unknown +ocean, they knew not where. They lived where for two thousand +years the pillars of Hercules had marked the end of the world. +They had been taught to believe in the four corners of the earth, +and that all beyond was a boundless waste of waters, into which no +one had ventured beyond the Canary Islands and the coast of Africa. + +* * * * * + +"We welcome all the peoples of the earth, with their varied +productions, to the full and free enjoyment of their habits at +home, and in return exhibit to them the results of our growth and +industry. In no boastful spirit this new and marvelous city, which +has sprung into existence within the life of men who hear me, has, +with the aid of the general government and the states that comprise +it, built these great palaces, adorned these lately waste places +and brought into them the wonderful facilities of transportation +invented in modern times. Welcome all, but on this day we doubly +welcome these mementoes of the voyage of Columbus to this western +world. + +"In the name of the managers of this exposition I give thanks and +welcome to all who have brought them here, and especially to the +government and people of Spain, who have thus contributed to the +interest and success of this exposition." + + +CHAPTER LXIV. +REPEAL OF PART OF THE "SHERMAN ACT" OF 1890. +Congress Convened in Extraordinary Session on August 7, 1893--The +President's Apprehension Concerning the Financial Situation--Message +from the Executive Shows an Alarming Condition of the National +Finances--Attributed to the Purchase and Coinage of Silver--Letter +to Joseph H. Walker, a Member of the Conference Committee on the +"Sherman Act"--A Bill I Have Never Regretted--Brief History of the +Passage of the Law of 1893--My Speech in the Senate Well Received +--Attacked by the "Silver Senators"--General Debate on the Financial +Legislation of the United States--Views of the "Washington Post" +on My Speech of October 17--Repeal Accomplished by the Republicans +Supporting a Democratic Administration--The Law as Enacted--Those +Who Uphold the Free Coinage of Silver--Awkward Position of the +Democratic Members--My Efforts in Behalf of McKinley in Ohio--His +Election by 81,000 Plurality--Causes of Republican Victories +Throughout the Country. + +On the 30th of June, 1893, the President issued a proclamation +convening Congress in extraordinary session on the 7th of August. +In reciting the reasons for this unusual call, only resorted to in +cases of extreme urgency, he said that "the distrust and apprehension +concerning the financial situation which pervades all business +circles have already caused great loss and damage to our people, +and threaten to cripple our merchants, stop the wheels of manufacture, +bring distress and privation to our farmers, and withhold from our +workingmen the wage of labor;" that "the policy which the executive +branch of government finds embodied in unwise laws which must be +executed until repealed by Congress;" and that Congress was convened +"to the end that the people may be relived, through legislation, +from present and impending danger and distress." + +Congress met in pursuance of the proclamation, and on the 8th of +August the President sent a message to each House, in which he +depicted an alarming condition of the national finances, and +attributed it to congressional legislation touching the purchase +and coinage of silver by the general government. He said: + +"This legislation is embodied in a statute passed on the 14th day +of July, 1890, which was the culmination of much agitation on the +subject involved, and which may be considered a truce, after a long +struggle, between the advocates of free silver coinage and those +intending to be more conservative." + +He ascribed the evil of the times to the monthly purchase of +4,500,000 ounces of silver bullion, and the payment therefor with +treasury notes redeemable in gold or silver coin at the discretion +of the Secretary of the Treasury, and to the reissue of said notes +after redemption. He stated that up to the 15th of July, 1893, +such notes had been issued for the purpose mentioned to the amount +of more than $147,000,000. In a single year over $40,000,000 of +these notes had been redeemed in gold. This threatened the reserve +of gold held for the redemption of United States notes, and the +whole financial system of the government. No other subject was +presented in the message of the President, and Congress had to face +the alternative of the single standard of silver, or the suspension +of the purchase of silver bullion. + +I had foreseen this inevitable result and had sought, as far as +possible, to avoid it by the inserting of sundry provisions in the +act of July 14, 1890. No portion of that act was objected to by +the President except the clause requiring the purchase of silver +bullion and the issue of treasury notes in payment for it. In this +I heartily concurred with him. From the date of the passage of +that law, to its final repeal, I was opposed to this compulsory +clause, but yielded to its adoption in preference to the free +coinage of silver, and in the hope that a brief experience under +the act would dissipate the popular delusion in favor of free +coinage. Joseph H. Walker, of Massachusetts, a prominent Member +of the House of Representatives, who was one of the conferees with +me on the bill referred to, and agreed with me in assenting to it, +wrote me a letter, my reply to which was in substantial accordance +with the subsequent message of the President and with the action +taken by Congress. I insert it here: + + "Mansfield, O., July 8, 1893. +"Hon. J. H. Walker. + +"My Dear Sir:--Yours of 28th ult., inclosing a copy of your statement +of the causes that led Mr. Conger, yourself and me to agree with +reluctance to the silver act of 1890, is received. An answer had +been delayed by my absence at Chicago. You clearly and correctly +state the history of that act. The bill that passed the House +provided for the purchase of $4,500,000 worth of silver at gold +value. The Senate struck out this provision and provided for the +free coinage of silver or the purchase of all that was offered at +the rate of 129 cents an ounce. As conferees acting for the two +Houses, it was our duty to bring about an agreement, if practicable, +without respect to individual opinion. The result of the conference +was to reject free coinage and to provide for the purchase of four +million five hundred thousand ounces of silver at its gold price-- +a less amount than was proposed by the House, the provisions +declaring the public policy of the United States to maintain the +parity of the two metals or the authority to stipulate on the +contracts for payments in gold, the limit of the issue of treasury +notes to the actual cost of silver bullion at gold value, and the +repeal of the act providing for the senseless coinage of silver +dollars when we already had 300,000,000 silver dollars in the +treasury we could not circulate, were all in the line of sound +money. + +"Another object I had in view was to secure a much needed addition +to our currency, then being reduced by the compulsory retirement +of national bank notes in the payment of United States bonds. This +would have been more wisely provided by notes secured by both gold +and silver, but such a provision could not then be secured. These +reasons fully justified the compromise. + +"But the great controlling reason why we agreed to it was that it +was the only expedient by which we could defeat the free coinage +of silver. Each of us regarded the measure proposed by the Senate +as a practical repudiation of one-third of the debts of the United +States, as a substantial reduction of the wages of labor, as a +debasement of our currency to a single silver standard, as the +demonetization of gold and a sharp disturbance of all our business +relations with the great commercial nations of the world. To defeat +such a policy, so pregnant with evil, I was willing to buy the +entire product of American silver mines at its gold value. + +"And that was what we provided, guarded as far as we could. To +accomplish our object we had to get the consent of the Republican +Representatives from the silver-producing states. This we could +only do by buying the silver product of those states. It was a +costly purchase. The silver we purchased is not worth as much as +we paid for it, but this loss is insignificant compared to our gain +by the defeat of the free coinage of silver. It is said there was +no danger of free coinage, that the President would have vetoed +it. We had no right to throw the responsibility upon him. Besides, +his veto would leave the Bland act in force. We did not believe +that his veto would dispel the craze that then existed for free +coinage. Many people wanted the experiment tried. The result of +the experiment of buying four and a half million ounces of silver +a month at its market value will be the best antidote against the +purchase of the silver of the world at one-third more than its +market value. + +"I never for a moment regretted the passage of the act of 1890, +commonly called the 'Sherman act,' though, as you know, I had no +more to do with it than the other conferees. There is but one +provision in it that I would change and that is to strike out the +compulsory purchase of a given quantity of silver and give authority +to the Secretary of the Treasury to buy silver bullion at its market +price when needed for subsidiary coinage. The only position we +can occupy in the interests of our constituents at large is one +fixed standard of value and the use of both metals at par with each +other, on a ratio as near as possible to their market value. + +"Such a policy I believe is right. With reserves both of gold and +silver in the proper proportions we can maintain the entire body +of our paper money, including coin, at par with each other. For +one I will never agree to the revival of state bank paper money, +which cannot be made legal tender, and which, on the first sign of +alarm, will disappear or be lost in the hands of the holder. + + "Very respectfully yours, + "John Sherman." + +I had expressed similar views in speeches in Congress and before +the people and in numerous published interviews, and in the previous +Congress had introduced a bill to suspend the purchase of silver +bullion, substantially similar in terms to the bill that became a +law in November, 1893. During the month of August I took a more +active part in the proceedings than usual. On the 8th, the 16th +and the 18th I made speeches in the current debate. + +A brief statement of the passage of this law of 1893 may be of +interest. It was introduced as a bill by William L. Wilson, of +West Virginia, in the House of Representatives, in the words of +the bill introduced by me in the Senate on the 14th of July, 1892, +as already stated, and passed the House on the 28th of August, by +the decisive vote of 239 yeas and 108 nays. It was referred in +the Senate to the committee on finance, of which Daniel W. Voorhees +was then chairman. It was on the next day reported by him from +that committee, with an amendment in the nature of a substitute, +but substantially similar in legal effect to the House bill. + +On the next day, August 30, I took the floor and made one of the +longest speeches in my congressional life, covering more than forty +closely printed pamphlet pages. I quote a few of the opening +paragraphs: + +"The immediate question before us is whether the United States +shall suspend the purchase of silver bullion directed by the act +of July 14, 1890. It is to decide this question the President has +called Congress together in special session at this inconvenient +season of the year. If this was the only reason for an extraordinary +session it would seem insufficient. The mere addition of eighteen +hundred million ounces of silver to the vast hoard in the treasury, +and the addition of fourteen millions of treasury notes to the one +thousand millions of notes outstanding, would hardly justify this +call, especially as Congress at the last session neglected or +refused to suspend the purchase of silver. The call is justified +by the existing financial stringency, growing out of the fear that +the United States will open its mints to the free coinage of silver. +This is the real issue. The purchase of silver is a mere incident. +The gravity of this issue cannot be measured by words. In every +way in which we turn we encounter difficulties. + +"If we adopt the single standard of gold without aid from silver, +we will greatly increase the burden of national and individual +debts, disturb the relation between capital and labor, cripple the +industries of the country, still further reduce the value of silver, +of which we now have in the treasury and among our people over +$593,000,000, and of which we are the chief producers, and invite +a struggle with the great commercial nations for the possession of +the gold of the world. + +"On the other hand, if we continue the purchase of 54,000,000 ounces +of silver a year, we will eventually bring the United States to +the single standard of silver--a constantly depreciating commodity, +now rejected by the great commercial nations as a standard of value; +a commodity confessedly inconvenient, by its weight, bulk, and +value, for the large transactions of foreign and domestic commerce, +and detach us from the money standard now adopted by all European +nations, with which we now have our chief commercial and social +relations. In dealing with such a question we surely ought to +dismiss from our minds all party affinities or prejudices; all +local or sectional interests, and all preconceived opinions not +justified by existing facts and conditions. + +"Upon one thing I believe that Congress and our constituents agree: +That both these extreme positions shall be rejected; that both +silver and gold should be continued in use as money--a measure of +value; that neither can be dispensed with. Monometallism, pure +and simple, has never gained a foothold in the United States. We +are all bimetallists. But there are many kinds of bimetallism. +One kind favors the adoption of the cheaper metal for the time +being as the standard of value. Silver being now the cheaper metal, +they favor its free coinage at the present ratio, with the absolute +certainty that silver alone will be coined at our mints as money; +that gold will be demonetized, hoarded at a premium, or exported +where it is maintained as standard money. The result would be +monometallism of silver. + +* * * * * + +"The two metals, as metals, never have been, are not now, and never +can be, kept at par with each other for any considerable time at +any fixed ratio. This necessarily imposes upon the government the +duty of buying the cheaper metal and coining it into money. The +government should only pay for the bullion its market value, for +it has the burden of maintaining it at par with the dearer metal. +If the bullion falls in price the government must make it good; if +it rises in value the government gains. + +"The government is thus always interested in advancing the value +of the cheaper metal. This is the kind of bimetallism I believe +in. It is the only way in which two commodities of unequal value +can be maintained at parity with each other. The free coinage of +silver and gold at any ratio you may fix means the use of the +cheaper metal only. This is founded on the universal law of +humanity, the law of selfishness. No man will carry to the mint +one ounce of gold to be coined into dollars when he can carry +sixteen ounces of silver, worth but little more in the market than +half an ounce of gold, and get the same number of dollars. + +"The free coinage of silver means the single standard of silver. +It means a cheaper dollar, with less purchasing power. It means +a reduction in the wages of labor; not in the number of dollars, +but in the quantity of bread, meat, clothes, comforts he can purchase +with his daily wage. It means a repudiation of a portion of all +debts, public and private. It means a bounty to all banks, savings +institutions, trust companies that are in debt more than their +credits. It means a nominal advance in the prices of the produce +of the farmer, but a decrease in the purchasing power of his money. +Its chief attraction is that it enables a debtor to pay his debt +contracted upon the existing standard with money of less value. +If Senators want cheap money and to advance prices, free coinage +is the way to do it; but do not call it bimetallism. The problem +we have to solve is how to secure to our people the largest use of +both gold and silver without demonetizing either. + +"Now, let us examine the situation in which we are placed. Our +country is under the pressure of a currency famine. Industries, +great and small, all suspended by the owners, not because they +cannot sell their products, but because they cannot get the money +to pay for raw material and the wages of their employees. Banks +conducted fairly are drained of their deposits and are compelled +not only to refuse all loans, but to collect their bills receivable. +This stringency extends to all trades and businesses; it affects +even your public revenues, all forms of public and private securities, +and, more than all, its stops the pay of a vast army of laboring +men, of skilled mechanics, and artisans, and affects the economy +and comfort of almost every home in the land. + +"The strange feature of this stringency is unlike that of any of +the numerous panics in our past history. They came from either an +irredeemable currency, which became worthless in the hands of the +holder, or from expanded credit, based upon reckless enterprises +which, failing, destroyed confidence in all industries. Stringency +followed failure and reckless speculation. This panic occurs when +money is more abundant than ever before. Our circulating notes to- +day are sixty millions more than one year ago. It is all good--as +good as gold. No discrimination is made between the gold and silver +dollar, or between the United States note, the treasury note, the +silver certificate, or the gold certificate. All these are +indiscriminately hoarded, and not so much by the rich as by the +poor. The draft is upon the savings bank, as well as the national +or state bank. It is the movement of fear, the belief that their +money will be needed, and that they may not be able to get it when +they want it. In former panics, stringency followed failures. In +this, failures follow stringency. + +"Now, as representatives of the people, we are called here in +Congress to furnish such measures of relief as the law can afford. +In the discharge of this duty I will sweep away all party bias, +all pride of opinion, all personal interest, and even the good will +of my constituents, if it were necessary; but, fortunately, I +believe their opinions concur with my own." + +In conclusion I said: + +"It is said that if we stop the coinage of silver it will be the +end of silver. I have heard that moan from some of my friends near +me. I do not think it will be the end of silver. We have proven +by our purchases that the mere purchase of silver by us in a +declining market, when all the nations of Europe are refusing to +buy silver and throwing upon us their surplus, is an improvident +use of the public money, and it ought to be abandoned, or at least +suspended until a time should come when we may, by an international +ratio or by some other provision of law, prevent the possible coming +to the single standard of silver. Now, that can be done. + +"What do we propose to do now? We simply propose to stop the +purchase. We do not say when we will renew it again, but we simply +say we believe, in view of a panic or any possibilities of a panic, +that it would be idle for us to waste either our credit money or +our actual money to buy that which must be put down into the cellar +of our treasury and there lie unused, except as it is represented +by promises to pay gold. I say that such a policy as that would +be foolish and delusive. + +"Senators say that this is a blow at silver. Why, silver is as +much a part of the industry of my country as it is a part of the +industry of the state of the Senator from Colorado, the able exponent +of this question. The production of silver is a great interest, +and the people of Ohio are as deeply interested in the success of +that interest as the people of Colorado. It is true we have not +the direct ownership of the property, but it enters into measures +of value of our property. There could be no desire on the part of +any portion of the people of the United States to strike down +silver. That idea ought to be abandoned at once. Therefore, in +order to at least give the assurance of honest men that we do not +intend to destroy an industry of America, we put upon this bill a +provision proposed now by the Senator from Indiana. + +"I say that instead of desiring to strike down silver we will likely +build it up; and any measure that could be adopted for an international +ratio that will not demonetize gold will meet my approbation and +favor. But I would not dissever the financial business of this +great country of ours, with its 65,000,000 of people, from the +standards that are now recognized by all the Christian nations of +Europe. I would not have our measure less valuable than the measure +of the proudest and haughtiest country of the world. + +"This is not a question of the mere interest of Nevada or Colorado. +It is not a question about what Wall street will do. They will +always be doing some deviltry or other, it makes no difference who +is up or who is down. We take that as a matter of course. The +question is what ought to be done for the people of the United +States in their length and breadth. If Congress should say that +in its opinion it is not now wise, after our experience, to continue +the purchase of silver bullion, is any injustice done to Colorado +or Nevada? Are we bound to build up the interest of one section +or one community at the expense of another or of the whole country? + +"No. I heartily and truly believe that the best thing we can now +do is to suspend for time, at least, the purchase of silver bullion. +We should then turn our attention to measures that are demanded +immediately to meet the difficulties of the hour. Let this be done +promptly and completely. It involves a trust to your officers and +great powers over the public funds. I am willing to trust them. +If you are not, it is a strange attitude in political affairs. I +would give them power to protect the credit of the government +against all enemies at home and abroad. + +"If the fight must be for the possession of gold, we will use our +cotton and our corn, our wheat and other productions, against all +the productions of mankind. We, with our resources, can then enter +into a financial competition. We do not want to do it now. We +prefer to wait awhile until the skies are clear and see what will +be the effect of the Indian policy, and what arrangements may be +made for conducting another international conference. In the +meantime let the United States stand upon its strength and credit, +maintaining its money, different kinds of money, at a parity with +each other. If we will do that I think soon all these clouds will +be dissipated and we may go home to our families and friends with +a conscientiousness that we have done good work for our country at +large." + +I was frequently interrupted, and this led to the discussion of +collateral questions and especially the dropping of the silver +dollar by the act of 1873, the history of which I have heretofore +stated. This speech was a temperate and nonpartisan presentation +of a business question of great importance, and I can say without +egotism that it was well received and commended by the public press +and by my associates in the Senate. Though I sought to repeal a +single clause of a bill of which I was erroneously alleged to be +the author, I was charged with inconsistency, and my speech was +made the text of the long debate that followed. The "silver +Senators," so called, attacked it with violence, and appeals were +made to Democratic Senators to stand by those who had defeated the +election law, and by the position the Democratic Senators had +previously taken in favor of free coinage. + +On the 28th of September, and on the 2nd, 13th, 17th and 28th of +October, I made speeches in the current debate, which extended to +every part of the financial legislation of the United States since +the formation of the government. I insert here the description +given by the Washington "Post" of the scene on the 17th: + +"The climax of the remarkable day was now at hand. There is no +man in the Senate for whom a deeper feeling of esteem is felt than +John Sherman. He saw the Republican party born, he has been its +soldier as well as its sage, he has sat at the council table of +Presidents. His hair is white, and his muscles have no longer the +elasticity of youth, but age has not dimmed the clearness of his +intellectual vision, while it has added to the wisdom of his +councils. Upon Mr. Sherman, therefore, as he arose, every eye was +turned. Personalities were forgotten, the bitterness of strife +was laid aside. In a picture which must live in the memory of him +who saw it, the spare and bowed form of Mr. Sherman was the central +figure. There was not the slightest trace of feebleness in his +impassioned tones. Except once or twice, as he hesitated a moment +or two for a word to express his thought, there was not a reminder +that the brain at seventy may be inert or the fire be dampened in +the veins. + +"Mr. Sherman spoke, as he himself said, neither in reproach nor +anger. It was the appealing tones that gave his speech its power +--its convincing earnestness, its lack of rancor, its sober truth +that gave it weight. Elsewhere it is printed in detail. Suffice +it to say here that he predicted that the rules would have to be +changed since they had been made the instrument of a revolutionary +minority. Never before had he seen such obstruction in the Senate, +never before the force bill had he known of a measure which failed, +after due deliberation, to come to a vote. The Republicans had +remained steadfast to the President, although under no obligation +to him, and now the time had come when the Democrats must take the +responsibility. + +"In times past, when the Republicans were in the majority, they +never shrank from responsibility. They were Republicans because +they believed in Republican principles and Republican men and +Republican measures, and whenever a question was to be decided they +never pleaded the 'baby act' and said 'we could not agree.' They +met together and came to an agreement, and in that way they passed +all the great measures which have marked the history of the last +thirty years of our country, and it was not done by begging votes +on the other side. + +"'They say they cannot agree, They must agree,' thundered Mr. +Sherman, drawing himself to his full height, and pointing his +quivering finger to the Democratic side, 'or else surrender their +political power!' + +"Then Mr. Sherman pointed out the important legislation that was +so sadly needed, not the least being some provision for the deficit +of the government, which, he quoted Secretary Carlisle as saying, +would be $50,000,000 this year. 'These things cannot be evaded,' +he said, while the Senate lingered on his words. 'We must decide +the silver question one way or the other. If you,' he added, +looking the Democrats in the fact, 'cannot do it, then retire from +the Senate Chamber, and we will fix it on this side, and do the +best we can with our silver friends who belong to us, who are blood +of our blood, and bone of our bone. But yours is the proper duty, +and, therefore, I beg of you, not in reproach or anger, to perform +it. You have the supreme honor of being able to settle this question +now, and you ought to do it.' + +"Mr. Sherman ceased, but the thrall of his words remained long +after his venerable form had disappeared. No Democrat answered +him. Mr. Voorhees, who had sat within arm's reach of him on the +Republican side, crossed the Chamber to his own seat, and sank down +as a man laden with deep care." + +The debate continued in the Senate until the 30th of October, when +the Senate substitute was adopted by the vote of 43 yeas and 32 +nays. Of the yeas 22 were Republicans, and of the nays 20 were +Democrats; so that the bill in the Senate was supported by a majority +of Republicans and opposed by a majority of Democrats. On this +important question the President was acting with a majority of +Republicans and a minority of Democrats, and it is to his credit +that he firmly held his ground in spite of the opposition in his +party. + +On the 1st of November, when the amended bill came to the House, +Mr. Wilson moved to concur in the amendment of the Senate. A casual +debate followed, mostly by Bland and Bryan against the bill, and +Wilson and Reed for it. The Senate amendment was agreed to and +the bill as amended passed by the decisive vote of yeas 194 and +nays 94, and was approved by the President on the same day. The +law thus enacted is as follows: + +"That so much of the act approved July 14, 1890, entitled 'An act +directing the purchase of silver bullion and issue of treasury +notes thereon, and for other purposes,' as directs the Secretary +of the Treasury to purchase from time to time silver bullion to +the aggregate amount of 4,500,000 ounces, or so much thereof as +may be offered in each month at the market price thereof, not +exceeding one dollar for 371.25 grains of pure silver, and to issue +in payment for such purchases treasury notes of the United States, +be, and the same is hereby, repealed. And it is hereby declared +to be the policy of the United States to continue the use of both +gold and silver as standard money, and to coin both gold and silver +into money of equal intrinsic and exchangeable value, such equality +to be secured through international agreement or by such safeguards +of legislation as will insure the maintenance of the parity in +value of the coins of the two metals, and the equal power of every +dollar at all times, in the markets and in the payment of debts. +And it is hereby further declared that the efforts of the government +should be steadily directed to the establishment of such a safe +system of bimetallism as will maintain at all times the equal power +of every dollar coined or issued by the United States, in the +markets and in the payment of debts." + +Thus the vital principles of the act of July 14, 1890, remained in +force, and the provisions for the purchase of silver bullion and +for the issue of treasury notes were repealed. The maintenance of +the gold standard, the parity of all money whether of gold, silver +or paper, and the payment of all bonds of the United States in +coin, were preserved. + +The free coinage of silver is still upheld by a large body of those +who are interested in mining it, or who want to pay their debts +with a depreciated coin; but the danger of the adoption of this +policy is lessening daily. It received a severe blow by the action +of the Ohio Democratic convention in 1895 in rejecting it by a vote +of more than two to one. The bimetallic system of maintaining all +forms of money at par with gold will probably soon be fully +established. To complete this system and to extend it to our paper +money it would be wise to gradually withdraw treasury notes and +silver certificates and replace them with United States notes +supported and maintained by large reserves of gold. Thus all kinds +of paper money issued by the United States would be of the same +form and value. The great mass of standard silver dollars, amounting +on August 1, 1895, to $371,542,531, now held in the treasury +represented by $320,355,188 of silver certificates in circulation, +is the one great disturbing element in our finances. But 51,746,706 +standard silver dollars are in circulation, and experience has +shown that a greater amount cannot be kept out among the people. +The certificates representing the silver dollars are in circulation +and a legal tender for customs dues as well as for all debts, public +and private. They must be treated as United States notes, and +maintained at par with gold coin, or the parity of our coin and +currency will be endangered. They now enter into the general +aggregate of our legal tender money and are largely used in the +payment of customs duties, and when received are paid out for the +current expenses of the government. While supported by the aggregate +silver dollars in the treasury, and the pledge of the public faith +to maintain them at par with gold coin and United States notes, +they are a safe and useful currency, but any measure to increase +these certificates, based upon the coining of more silver dollars +from bullion alleged to be gain or seigniorage, would seriously +impair the ability of the government to maintain their parity with +gold. The great depreciation of silver bullion has resulted in a +vast loss to the government and its disposition is the most serious +problem pending in Congress. + +During the entire extra session of 1893 the body of the Democratic +Senators and Members were placed in an awkward position. They were +desirous of aiding the President, but their constituents behind +them were generally in favor of the free coinage of silver. In +some of the northern states, especially in Ohio, the Democratic +party had declared, in its convention, in favor of free coinage, +and now their President demanded, in the strongest language, the +repeal of the only provision of law for the purchase or coinage of +silver. The House promptly responded to the appeal, but the +Democratic Senators hesitated and delayed action until after three +months of weary debate. Their party had a majority in each House, +and should have disposed of the only question submitted by the +President in thirty days. Voorhees was the first Democratic Senator +to announce his purpose to vote for the repeal, although previously +an advocate of free coinage, and he, as chairman of the committee +on finance, reported the bill of the committee, while others lingered +in doubt. The Republican Senators, except those representing silver +states, as a rule, promptly avowed their purpose to vote for repeal, +although they had voted for the law. + +After the call for the extra session was issued, I had expressed +my opinion of silver legislation, but I did not wish to embarrass +the President. When interviewed I refused to answer, saying the +people had called upon the present administration to handle these +questions, and neither I nor anyone should do aught to add +embarrassment, when so much already existed. When Congress met, +the Republicans remained quiet, and did not seek to embarrass the +administration, but it was soon ascertained that a decided majority +of them would vote for the repeal of the purchasing clause of the +act of 1890, but against any modification of any other provision +of that act. The position of the Republican Senators from the +states west of the Mississippi River was also known. They would +vote against any change of the law, unless they could secure the +free coinage of silver. During this period the position of the +Democratic Senators was unknown, but it was rapidly developed, with +the result already stated. + +Congress adjourned on the 3rd of November. The closing days were +memorable for their excitement. For fourteen consecutive days the +Senate did not adjourn, but from time to time took recesses. On +the 31st of October the journal had not been read for fourteen days. + +During this period I was requested by Governor McKinley to take +part in the pending canvass in Ohio, which involved his re-election +as governor. In the condition of the Senate I did not feel justified +in leaving, but immediately upon the passage of the repeal bill +started for Columbus to render such service as I could. It had +been falsely stated that I was indifferent about McKinley's election, +which I promptly denied. But a few days intervened before the +election. On the day of my arrival in Ohio, I spoke at Springfield. +On the evening of the next day, the 3rd of November, at Central +Turner Hall in Cincinnati, I spoke to a very large meeting. This +speech was fully reported. It was mostly devoted to the tariff, +a struggle over which was anticipated. After paying my usual visit +to the chamber of commerce and the Lincoln club, I proceeded to +Toledo, where I spoke at Memorial Hall on the evening before the +election, and then returned home to Mansfield, where I voted. The +result was even more decisive than expected. The 81,000 plurality +for McKinley was the best evidence of his popularity, and was +regarded as an indorsement of the McKinley tariff law. + +On the 8th of November I returned to Washington. Many interviews +with me were reported, in which I expressed my satisfaction with +the overwhelming victory gained by the Republicans all over the +United States, and especially with their success in New York. In +response to a request by a leading journal, before the meeting of +Congress, I carefully prepared a statement of the causes that led +to these results. I undertook to review the political changes in +the past four years, but will insert only two paragraphs of this +paper. + +"It is manifest that the causes of the defeat of the Democratic +party in the recent election were general and not local. They +extended to Colorado, Dakota, Iowa, Ohio, Pennsylvania, New York, +and Massachusetts. If the opposition to the Democratic party in +Virginia had been organized and conducted by the Republican party, +the results in that state would have been very different. The +ideas of the Populists are too visionary and impracticable to be +made the basis of a political organization. A canvass conducted +in Virginia upon the issues that prevailed in Ohio would, in my +judgment, have greatly changed the results in that state. Aside +from the memories of the war, the economic principles of the +Republican party have great strength in the southern states, and +whenever the images of the war fade away the people of those states +will be influenced by the same ideas that prevail in the northern +states. The leading cause of the enormous Republican majorities +in northern states I have mentioned was the united protest of the +unemployed against radical changes of our tariff laws. Whatever +theories may be proposed, it may be regarded as an axiom that the +protective principle is a well established principle in the United +States. It has been recommended by all the Presidents from Washington +to Harrison, and by none more emphatically than Jefferson, Madison, +Monroe, and Jackson. This is and has been the natural and instinctive +policy of a new nation with enormous undeveloped resources. While +the terms of our tariff laws provided for revenue, their foundation +and background were to encourage domestic manufactures and diversify +productions. The extent of protection was limited to the want of +revenue, but the duties were uniformly so adjusted as, while +producing revenue, to encourage manufactures. + +* * * * * + +"But, after all, we must place as the chief cause of Democratic +defeat the profound and settled distrust that the Democratic party +will now, having the President and a majority in both Houses, +disturb the enormous industries of our country developed by, and +dependent upon, our tariff laws, and will seek to substitute the +policy of Great Britain, of free trade, as against the example of +the leading nations of Europe as well as our own, of a wise and +careful protection, and encouragement by tariff laws of all forms +of domestic industry that can be conducted with a reasonable hope +of profit in this country. The future of parties will depend more +largely upon the manner in which this condition of things is met +by the present Congress than upon all other causes combined." + + +CHAPTER LXV. +PASSAGE OF THE WILSON TARIFF BILL. +Second Session of the 53rd Congress--Recommendations of the President +Concerning a Revision of the Tariff Laws--Bill Reported to the +House by the Committee of Ways and Means--Supported by Chairman +Wilson and Passed--Received in the Senate--Report of the Senate +Committee on Finance--Passes the Senate with Radical Amendments-- +These are Finally Agreed to by the House--The President Refuses to +Approve the Bill--Becomes a Law After Ten Days--Defects in the Bill +--Not Satisfactory to Either House, the President or the People-- +Mistakes of the Secretary of the Treasury--No Power to Sell Bonds +or to Borrow Money to Meet Current Deficiencies--Insufficient +Revenue to Support the Government--A Remedy That Was Not Adopted-- +Gross Injustice of Putting Wool on the Free List--McKinley Law +Compared with the Wilson Bill--Sufficient Revenue Furnished by the +Former--I Am Criticized for Supporting the President and Secretary. + +The second session of the 53rd Congress commenced on the 4th of +December, 1893. The President in his message was especially urgent +in his recommendation of a revision of the tariff laws. He said: + +"After a hard struggle tariff reform is directly before us. Nothing +so important claims our attention, and nothing so clearly presents +itself as both an opportunity and a duty--an opportunity to deserve +the gratitude of our fellow-citizens, and a duty imposed upon us +by our oft-repeated professions, and by the emphatic mandate of +the people. After a full discussion our countrymen have spoken in +favor of this reform, and they have confided the work of its +accomplishment to the hands of those who are solemnly pledged to it. + +"If there is anything in the theory of a representation in public +places of the people and their desires, if public officers are +really the servants of the people, and if political promises and +professions have any binding force, our failure to give the relief +so long awaited will be sheer recreancy. Nothing should intervene +to distract our attention or disturb our effort, until this reform +is accomplished by wise and careful legislation. + +* * * * * + +"Not less closely related to our people's prosperity and well-being +is the removal of restrictions upon the importation of the raw +materials necessary to our manufactures. The world should be open +to our national ingenuity and enterprise. This cannot be while +federal legislation, through the imposition of high tariffs, forbids +to American manufactures as cheap materials as those used by their +competitors." + +In view of this message, it was manifest that the tariff would be +the chief subject of legislation during the session. It was +understood that a bill had been prepared by the committee of ways +and means, which had been submitted to the President and Secretary +of the Treasury and approved by them. It was reported to the House +of Representatives, December 19, 1893. On the 8th of January, +1894, Mr. Wilson, chairman of the committee, made an elaborate +speech in its support. The debate continued until the 1st of +February, when, with some amendments, it passed the House. In the +Senate, on the next day, it was referred to the committee on finance. +On the 20th of March it was reported to the Senate, with amendments, +by Mr. Voorhees. Mr. Morrill said: + +"I desire to say that so far as the Republican members of the +committee on finance are concerned they did not object to the +reporting of the bill, while they are opposed not only to the +proposed income tax, but to the many changes of specifics to _ad +valorems_, and to the great bulk of the provisions of the bill." + +On the 2nd of April Voorhees made a carefully prepared speech in +support of the bill. The debate continued, occupying much the +larger part of the time until the 3rd day of July, when the bill +passed with radical amendments, which changed it in principle and +details. Two conferences of the two Houses were held on amendments +disagreed to, but failed to agree, and it appeared, after the long +struggle, that he bill would be defeated, when, on the 13th of +August, upon motion of Mr. Catchings, the House agreed to the Senate +amendments in gross and thus the bill passed Congress. The President +refused to approve it and it became a law after ten days without +his approval. + +This skeleton history of what is now known as the Wilson tariff +partly discloses its imperfections. Framed in the House as a tariff +for revenue only, and radically changed in the Senate to a tariff +with protection to special industries, it was not satisfactory to +either House, to the President or to the people. So far as it +copied the schedules and the legislative provisions of the McKinley +law, it met with approval. Its new features were incongruous, were +decidedly sectional, and many of its provisions were inconsistent +with each other. + +The vital defect of this bill is that it does not provide sufficient +revenue to carry on the government. This is the primary and almost +the only cause of the financial difficulties of the present +administration. The election of Mr. Cleveland in 1892, upon the +platform framed by him, naturally created distrust as to the ability +of the government to maintain the parity of the different forms of +money in circulation. Added to this, the broad declaration of the +purpose to reduce taxation led to the reduction of importations +and the diminution of the revenue from the McKinley tariff. Importers +and dealers naturally reduced their imports in view of the expectation +that duties would be reduced. By the 1st of July, 1893, when the +Wilson bill was in embryo, the revenues had been so diminished as +to yield a surplus of only $2,341,074 during the previous year. +It was apparent, when Congress met in August, that the administration, +having a majority in each House of Congress, was determined to +reduce duties, and yet it made no effort to reduce expenditures. +Soon after there was a large deficiency in the revenue, and the +Secretary of the Treasury was compelled either to refuse to pay +appropriations made by law in excess of receipts or to borrow money +to meet the deficiencies. + +In my judgment the better way for him would have been not to pay +appropriations not needed to meet specific contracts, for an +appropriation of money by Congress is not mandatory, but is +permissive, an authority but not a command to pay, nor does an +appropriation in itself authorize the borrowing of money. When +this authority is required Congress must grant it, and, upon its +failure to do so, all the Secretary of the Treasury should do is +to pay such appropriations as the revenues collected by the government +will justify. It is for Congress to provide such sums, by taxation +or loans, as are necessary to meet all appropriations made in excess +of revenue. If it refuses or neglects to do this, the responsibility +is on it, not on the secretary. All he can do is choose what +appropriations he will pay. This is a dangerous and delicate power, +but it has frequently been employed and has never been abused. +His failure to exercise this discretion was a grave mistake. + +As revenues diminished deficiencies increased. A doubt arose +whether, under the then existing conditions, the government would +be able to pay gold coin for United States notes and treasury notes. +These were supported by a reserve of $100,000,000 in gold coin and +bullion, but this reserve fund was not segregated from the general +balance in the treasury, as it ought to have been, but was liable +to be drawn upon for all appropriations made by Congress. There +was not then, and there is not now, any specific authority invested +in the Secretary of the Treasury to sell bonds or to borrow money +to meet current deficiencies, and he felt called upon to pay these +out of the general fund, embracing that created for the redemption +of United States notes under the act of 1875. The result was to +create an alarm that the government could not or would not pay such +notes and thus maintain the gold standard. The timid, and those +whose patriotism is in their purse, were making inroads on the gold +reserve, which fell below $100,000,000. + +By the resumption act of 1875 the Secretary of the Treasury was +authorized, to enable him to pay United States notes on demand, to +sell either of three classes of bonds bearing respectively five, +four and a half and four per cent. interest, but the question arose, +in 1894, whether he could sell these bonds to meet current +expenditures. All of them were worth a premium in the market. +Bonds bearing three per cent. running a short period could then +have been sold at par. In common with many others I foresaw, in +February, 1893, that the tariff policy of the then incoming +administration would reduce our revenue below our expenditures, +and sought to have Congress authorize the sale of bonds bearing +three per cent. interest instead of those at a higher rate already +authorized. I saw plainly that the incoming administration would +enter on precisely the same course as that adopted by Buchanan, of +providing insufficient revenue for the support of the government, +resulting in the gradual increase of the public debt and the +disturbance of our financial system. During each year of Buchanan's +administration the public debt increased, as it has been steadily +increasing during Cleveland's administration, and great embarrassment +grows out of this fact. My friendly suggestion was defeated and +the result has been the sale of four per cent. bonds at a sacrifice. + +The President recommended the removal of restrictions upon the +importation of the raw materials necessary to our manufactures. +The tariff bill, as it passed, imposed duties on nearly all raw +materials except wool. This important product of the farmer was +made duty free. I made every effort to prevent this injustice. +Free wool was the culminating atrocity of the tariff law. By it +a revenue of over eight millions a year was surrendered for the +benefit of woolen manufacturers. I appealed to the Senate to give +some protection to this great industry of our country. It was +generally classed as the fifth of the industries of the United +States, including the manufacture of woolens, and I have no doubt +it fully came up to that grade. Over a million farmers were engaged +in the growth of wool. It involved an annual product estimated at +$125,000,000 under the former prices, but probably under the prices +after the passage of the Wilson bill it was reduced to about eighty +or ninety million dollars. It was, therefore, a great industry. +And yet it was left solitary and alone without the slightest +protection given to it directly or indirectly. The manufacture of +woolen goods was amply protected. Amendments were proposed and +adopted without dissent, adding largely to the protection at first +proposed on manufactures of wool. + +The value of the wool in woolen goods as a rule is equal to the +cost of manufacturing the cloth. The duty on cloth under this law +averages 40 per cent., so that the domestic manufacturer of cloth +gets the benefit not only of a duty of 40 per cent. on the cost of +manufacture, but he gets a duty of 40 per cent. on the cost of the +wool in the cloth, thus getting a protection of 80 per cent. on +the cost of manufacture, while the farmer gets no protection against +foreign competition for his labor and care. This gross injustice +is done under the name of free raw materials. When I appealed to +the Senate for a duty on wool I was answered by one Senator that +free wool was all that was left in the bill of the Democratic +doctrines of free raw materials, and, if only for this reason, must +be retained. I made two speeches in support of a duty, but was +met by a united party vote, every Democrat against it and every +Republican for it. In the next tariff bill I hope this decision +will be reversed. + +On the 31st of May, 1894, I made a long speech in favor of the +McKinley law and against the Wilson bill. While the McKinley law +largely reduced the taxes and duties under pre-existing laws, yet +it furnished ample revenue to support the government. The object +of the act was declared to be to reduce the revenue. It was +impartial to all sections and to all industries. The south was +well cared for in it, and every reasonable degree of protection +was given to that section. In growing industries in the north, +which it is desirable to encourage, an increase of duty was given. +In nearly all the older industries the rates were reduced, and the +result was a reduction of revenue to the extent of $30,000,000. +There was no discrimination made in the McKinley act between +agriculture and mechanical industries. The Wilson bill sacrificed +the interests of every farmer in the United States, except probably +the growers of rice and of fruit in the south. The McKinley act, +I believe, was the most carefully framed, especially in its operative +clauses and its classification of duties, of any tariff bill ever +passed by the Congress of the United States. + +It has been said that the McKinley act was the cause of the deficiency +of revenue that commenced about three years after its passage. +That is a mistake. Until Mr. Cleveland was sworn into office, +March 4, 1893, there was no want of revenue to carry on the operations +of the government. Until July, 1893, there was a surplus of revenue, +and not a deficiency. The receipts during the fiscal years ending +June 30, 1891, 1892, 1893, under the McKinley act, furnished ample +means for the support of the government, and it was not until after +Cleveland had been elected, and when there was a great fear and +dread all over the country that our industries would be disturbed +by tariff legislation, that the revenues fell off. The surplus in +1891 was $37,000,000; in 1892, in the midst of the election, it +was $9,914,000, and in 1893, up to June 30, the surplus revenue +was $2,341,000. Yet in a single year afterwards, after this attempt +to tinker with the tariff had commenced, after the announcement as +to the tariff had been made by Mr. Cleveland, after the general +fear that sprang up in the country in regard to tariff legislation, +the revenues under the McKinley act fell off over $66,000,000, and +the deficiency of that year was $66,542,000. + +I believe that if Harrison had been elected President of the United +States the McKinley act would have furnished ample revenue for the +support of the government, because then there would have been no +fear of disturbance of the protected industries of our country. +Cleveland's election created the disturbances that followed it. +The fear of radical changes in the tariff law was the basis of +them. That law caused the falling of prices, the stagnation of +some industries, and the suspension of others. No doubt the fall +in the value of silver and the increased demand for gold largely +precipitated and added to the other evils that I have mentioned. + +If when Congress met in December, 1893, there had been a disposition +on the part of both sides to take up the tariff question and discuss +it and consider it as a pure question of finance, there would have +been no difficulty with the Republicans. We were all ready to +revise the rates contained in the McKinley tariff act. The body +of that act had been embodied in the Wilson bill as part of the +proposed law. Nearly all of the working machinery of the collection +of customs, framed carefully under the experienced eye of Senator +Allison, is still retained. All the schedules, the formal parts +of the act, which are so material, and the designation into classes +--all those matters which are so complicated and difficult to an +ordinary lawyer or an ordinary statesman, have been retained. + +If the bill had been taken up in the spirit in which it should have +been, and if an impartial committee of both parties in the Senate +and the House had gone over it, item by item, it would have passed +in thirty days without trouble. That was not the purpose; it was +not the object, and it was not the actual result. + +During the long session of 1893-94 I was the subject of much +controversy, debate, censure and praise. While distinctly a +Republican, and strongly attached to that party, I supported, with +the exception of the tariff law, the financial policy of the +President and Secretary Carlisle. Mr. Cleveland was a positive +force in sustaining all measures in support of the public credit. +Mr. Carlisle, who as a Member and Senator had not been always +equally positive on these measures, yet was regarded as a conservative +advocate of a sound financial policy, readily and heartily supported +the President in his recommendations. As these were in harmony +with my convictions I found myself indorsing them as against a +majority of the Democratic Senators. My Republican colleagues, +with scarcely an exception, favored the same policy. + + +CHAPTER LXVI. +SENIORITY OF SERVICE IN THE SENATE. +Notified That My Years of Service Exceed Those of Thomas Benton-- +Celebration of the Sons of the American Revolution at the Washington +Monument--My Address to Those Present--Departure for the West with +General Miles--Our Arrival at Woodlake, Nebraska--Neither "Wood" +nor "Lake"--Enjoying the Pleasures of Camp Life--Bound for Big +Spring, South Dakota--Return via Sioux City, St. Paul and Minneapolis +--Marvelous Growth of the "Twin Cities"--Publication of the "Sherman +Letters" by General Sherman's Daughter Rachel--First Political +Speech of the Campaign at Akron--Republican Victory in the State +of Ohio--Return to Washington for the Winter of 1894-95--Marriage +of Our Adopted Daughter Mary with James Iver McCallum--A Short +Session of Congress Devoted Mainly to Appropriations--Conclusion. + +On the 16th of June, 1894, I was notified by William E. Spencer, +the experienced journal clerk of the Senate, that I that day had +reached a term of service in the Senate equal in length to that of +Thomas Benton, whose service had previously held first rank in +duration, covering the period from December 6, 1821, to March 3, +1851, making 29 years, 2 months and 27 days. I had entered the +Senate March 23, 1861, and served continuously until March 8, 1877, +making 15 years, 11 months and 15 days, when I entered the cabinet +of President Hayes. My second term of service in the Senate began +March 4, 1881, and has continued until the present time. My service +since June 16, 1894, is in excess of that of Benton. + +On the 4th of July, 1894, the Sons of the American Revolution +celebrated the day by a ceremony held literally in the shadow of +the Washington monument. There, at the base of the great shaft, +the members and friends of this organization and several chapters +of the Daughters of the Revolution gathered at 10 o'clock to listen +to patriotic addresses. The societies had been escorted from the +Arlington hotel by the Marine Band, and gathered in seats around +a grand stand while a battery of artillery welcomed them with a +salute. The band played national hymns, and the audience sang +"America." General Breckinridge introduced me and I was heartily +greeted. After narrating the principal events of the American +Revolution, and especially incidents connected with the Declaration +of American Independence, I said: + +"It is a marvel of the world that these humble colonies, composed +of plain men, for there were no nobles or rich men in those times, +furnished genius which brought to mankind greater wisdom in the +framing of a government than ever elsewhere existed. It was of +these men that Lord Chatham said that they had prepared papers +stronger than ever emanated from any court of Europe. Our country +was built up on intelligence, obedience to law, desire for freedom +and the equal enjoyment of rights. Those who are gathered here to- +day are classified as sons and daughters of the Revolution, and +therefore they are under deeper obligations to be true and patriotic +citizens." + +I then spoke of the character of our people and our institutions, +and the Civil War, happily ended, and the increasing strength and +power of the republic. I narrated how the Washington monument came +to be completed. I said it was true it cost a million of dollars, +but what was that to 65,000,000 people! The occasion was enjoyable, +the speeches were suitable for the 4th of July, patriotism and love +of country being the watchwords. + +On the 28th of August, 1894, the second session of the 53rd Congress +closed. It was a laborious session. Its principal act was a +measure that did not satisfy anyone. It laid the foundations for +insufficient revenue, an increase of the public debt and the general +defeat of the party in power. + +I was much fatigued, and had already arranged to accompany General +Nelson A. Miles and his party on a military inspection in Nebraska +and South Dakota. I arrived in Chicago on the 2nd of September, +where General Miles was stationed. There I was met by the reporters +and told them all I knew about the intended trip. I got as much +information from them as they did from me. What they wanted was +prophecy of the future, and I wanted to get into the wilderness. +Here our little party was made up, consisting of General Miles, +his wife, daughter and son, a lad about thirteen years old, Dr. +Daly and brother, two staff officers, and myself. We had a car +and lived in it, and the cook supplied us bountifully with good +healthy food, largely of game. I cannot imagine a more delightful +change to a man weary with talk in the hot chambers of the capitol +at Washington in August than the free, fresh air of the broad plains +of Nebraska, with congenial company in a palace car, and with no +one to bother him. Our first stopping place was called Woodlake, +a small village on the railroad in the northwestern part of Nebraska. +We arrived there in the afternoon; our car was detached from the +train and became our home for a week. Around us in every direction +was a broad rolling plain as dry as a powder horn, with scarcely +any signs of habitation, but the air was pure and exhilarating and +imparted a sense of health and energy. My first inquiry to one of +the denizens was "Where is your wood and your lake which gave a +name to your town?" He said that when the railroad was located +there was a grove near by, and water in the low ground where we +stood, but the trees had been cut and utilized in constructing the +railroad, and the lake was dried up by a long drouth. Woodlake +had neither wood nor lake in sight! We took long walks without +fatigue, and our hunters, of whom General Miles was chief, supplied +us with prairie chickens, the only game of the country. + +After a few days thus spent we left our car and followed after a +company of United States Infantry, from Fort Niobrara, then engaged +in their usual drill, to a lake about twenty-five miles away, where +we lived in tents and had a taste of real camp life. With the +consent of the owner of the land we pitched our tents near his +house on the banks of the lake about three miles long and perhaps +half a mile wide. This sight of water was pleasing, but we were +warned not to drink it. We had a bountiful supply of pure healthy +water, however, from an artesian well driven over a hundred feet +into the earth and pumped by almost continuous winds into a great +basin, which furnished water in abundance for man and beast. The +only house in sight besides the one near our camp was occupied by +the brother of our host, three miles away at the other end of the +lake. The two brothers were the lords of all they surveyed. They +owned large herds of cattle that ranged over the plains around, +drank of the waters of the lake and fed upon the sparse herbage. +A few hundred of them were kept in a corral near the homesteads +for sale, but the larger portion roamed under the care of herdsmen +wherever the herbage seemed the best. + +Here our hunters, with a fine pack of dogs, pursued prairie chickens, +and not only supplied our table but contributed to the soldiers in +their shelter tents near by. Mrs. Miles and I, escorted by her +young son, Sherman Miles, on horseback, had the benefit of a horse +and buggy with which we could drive in any direction. There was +no fence or bog or obstruction in the way. We generally kept in +sight of our hunters, but if we lost the trail we could go to the +hills and soon locate our camp. This free and easy life soon cured +my languor and weariness and I was able to walk or ride long +distances as well as any of the party. + +Returning to Woodlake we attached our car to the train for Big +Spring in South Dakota. Here we spent two or three days, mainly +in riding through the picturesque country around. We intended to +extend our journey to Deadwood but the duties of General Miles +required him to visit St. Paul and the military post at Fort +Snelling. We returned by way of Sioux City, and thence to St. +Paul. This city and its sister Minneapolis, were familiar ground. +I had seen them when they were small towns, and had by frequent +visits kept pace with their growth, but the change noticed on my +last visit was a surprise to me. The two cities, but a few miles +apart when rival rural villages, were approaching each other and +no doubt are destined to blend into one great city of the north. +Here I met many friends, chief of whom I am glad to place Senator +Cushman K. Davis, of Minnesota. After a brief stay our little +party returned to Chicago and dispersed, I going back to Mansfield +to engage in the political campaign. + +At this period "The Sherman Letters" was published, and at once +attracted attention and general commendation. I though the experiment +was a risky one, but it was the desire of General Sherman's children +to publish them, and especially of his daughter, Rachel Thorndike, +who undertook to compile them. I have been in the habit of preserving +letters written to me on personal matters, or by members of my +family, and, as General Sherman was a copious writer, I placed his +letters in separate books. He did the same with mine, but many of +these had been lost by fire in California. Rachel arranged in +chronological order such letters as she thought worth preserving, +and they were published in a handsome volume. I have a multitude +of letters from almost every man with whom I have been associated +in political life, but will not publish them while the writers live +without their consent, nor even after their death if the letters +would tend to wound the feelings of surviving friends or relatives. +Letters are the best evidence of current thought or events, but +they ought to be guarded by the person to whom they are written as +confidential communications, not to be disclosed to the injury of +the writer. General Sherman's inmost thoughts could be disclosed +without fear of injury to him, and his letters, though rapidly +written, did not indicate a dishonorable thought or action. I have +seen nothing in the comments of the press on these letters but what +is kindly to the "two brothers." + +On the 5th of October I made my usual annual visit to Cincinnati. +I called at the chamber of commerce, and had the same hearty welcome +its members have always given me. I made the usual short speech, +and it was all about "King Corn." General surprise was expressed +at my healthy appearance. The remark was frequently made that I +was looking better and healthier than for years. The impression +of my failing health was gathered from the newspaper descriptions +of "the old man" in the debates in the Senate. The effect of the +pure, open air of Nebraska was apparent. While on this visit I +was greatly pleased with a drive to Fort Thomas, and the high lands +on the Kentucky side of the river. + +My first political speech of the campaign was made on the 12th of +October at Akron. It was confined almost exclusively to the tariff +and silver questions. The meeting was very large, composed chiefly +of men employed in the numerous factories and workshops of that +active and flourishing city. On the 18th I spoke at Sandusky upon +the same general topics as at Akron. Here I visited the Soldiers' +Home near that city. It is an interesting place, where I think +the old soldiers are better cared for than in the larger national +homes. + +I continued in the canvass, speaking at several places, until the +election on the first Tuesday of November. The result was the re- +election of Samuel M. Taylor, the Republican candidate for Secretary +of State, by the abnormal plurality of 137,086, and nineteen +Republicans were elected to Congress out of the twenty-one. Though +this was a state election, it turned mainly upon national issues, +and especially evidenced strong opposition to the Wilson tariff +bill. + +I was often asked by reporters, after my return to Washington, as +to the meaning of the election in Ohio. I uniformly expressed the +opinion that it meant the adoption of a nonpartisan tariff that +would, with a few internal taxes, yield revenue enough to pay +current expenses and the interest of the public debt and a portion +of the principal. I still hope that will be the result. The +framework of the McKinley law, with such changes as experience may +show to be essential, would remove the tariff from among the +political questions of the day and give reasonable encouragement +to American industries. + +On the 10th of November my family and I returned to Washington for +the winter. The chief interest and occupation of my wife and +myself, for the time being, was the preparation for the approaching +marriage of our adopted daughter, Mary Stewart Sherman, to James +Iver McCallum, of Washington. This was fixed for noon, the 12th +of December. Full details of all the preparations made, of the +dresses worn, of the members of the family in attendance, and of +the distinguished guests present, were given in the city papers. +It is sufficient for me to say that Mary has been carefully educated +and trained by us, and never for a moment has given us anxiety as +to her prudence, deportment and affection. We gave her in marriage +to a young gentleman, a native of Washington, and a clerk in the +supreme court, and entertain for her all the affection and solicitude +that a father or mother can bestow. + +Congress convened on the 3rd of December, 1894. The languor that +followed the excitement of the two previous sessions, and the defeat +suffered by the administration in the recent elections, no doubt +caused an indifference to political questions during the short +remaining session. But little was done except to consider and pass +the appropriations for the support of the government. I was often +annoyed by unfounded assertions that I had influence with the +administration, and especially with Carlisle, that I was in frequent +conference with the President and secretary. These stories were +entirely unfounded. Neither of these gentlemen ever consulted me +as to the business of their offices, nor did I ever seek to influence +them or even to converse with them on political questions. It was +a delicate matter for either of them or myself to deny such statements +when our personal relations were so friendly. + +And now these memoirs must end. I know there are many events not +noted that should have been referred to, and many persons whose +names should not have been omitted. I would be glad to mention +with honor and credit hundreds of men who participated with me in +the political events of public life, but this seemed impracticable +within reasonable limits. I might have omitted many events and +speeches as of not sufficient consequence to be preserved, but if +I had I would not have written the recollections of my public life. +The life of a civilian is in what he says or writes, that of a +soldier in what he does. What I have written is no doubt clouded +with partisanship, but I would not be honest if I did not express +my attachment to my party. This, however, never impaired my +patriotism or swerved me from the path of duty. + +To the people of Ohio I owe all the offices and honors that have +been conferred upon me. No constituency could have been more +forbearing and kind. During forty years of public life, though +many able men have aspired to the office I hold, the people of +Ohio, through their general assembly, have preferred me to represent +them. Though my grateful thanks are due to them and have been +often expressed, yet I have felt, as they do, that my duty was to +the whole country. Proud of Ohio, of its history and people, +willing at all times to sound its praise in the sisterhood of +states, yet, according to my convictions, the United States is +entitled to my allegiance, and all parts of it should receive equal +care and consideration. "Our country, our whole country, and +nothing but our country" has been the watchword and creed of my +public life. It was the opposite doctrine of "states' rights," +allegiance to a state, that led to the Civil War. It was settled +by this war that we have a country limited in its powers by the +constitution of the United States fairly construed. Since that +time our progress and development have been more rapid than any +other country's. + +The events of the future are beyond the vision of mankind, but I +hope our people will be content with internal growth, and avoid +the complications of foreign acquisitions. Our family of states +is already large enough to create embarrassment in the Senate, and +a republic should not hold dependent provinces or possessions. +Every new acquisition will create embarrassments. Canada and Mexico +as independent republics will be more valuable to the United States +than if carved into additional states. The Union already embraces +discordant elements enough without adding others. If my life is +prolonged I will do all I can to add to the strength and prosperity +of the United States, but nothing to extend its limits or to add +new dangers by acquisition of foreign territory. + + +INDEX +[omitted] + + + + + + + + +End of the Project Gutenberg EBook of Recollections of Forty Years in the +House, Senate and Cabinet, by John Sherman + +*** END OF THIS PROJECT GUTENBERG EBOOK JOHN SHERMAN'S RECOLLECTIONS *** + +***** This file should be named 22036-8.txt or 22036-8.zip ***** +This and all associated files of various formats will be found in: + http://www.gutenberg.org/2/2/0/3/22036/ + +Produced by Ed Ferris + +Updated editions will replace the previous one--the old editions +will be renamed. + +Creating the works from public domain print editions means that no +one owns a United States copyright in these works, so the Foundation +(and you!) can copy and distribute it in the United States without +permission and without paying copyright royalties. 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