Chapter 136

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.

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"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."