Chapter 132

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.