Contemporary American History, 1877-1913Beard, Charles A. (Charles Austin)
History
Contemporary American History, 1877-1913
Beard, Charles A. (Charles Austin)
United States -- History -- 1865-1921
In the second contest with Cleveland, Harrison was badly worsted,
receiving only 145 electoral votes against 277 cast for the Democratic
candidate and 22 for the Populist, Weaver. The campaign was marked by no
special incidents, for both Cleveland and Harrison had been found safe
and conservative and there was no very sharp division over issues. The
tariff, it is true, was vigorously discussed, but Cleveland made it
clear that no general assault would be made on any protected interests.
The million votes cast for the Populist candidate, however, was a solemn
warning that the old game of party see-saw over personalities could not
go on indefinitely. The issues springing from the great economic
revolution were emerging, not clearly and sharply, but rather in a vague
unrest and discontent with the old parties and their methods.
President Cleveland went into power for the second time on what appeared
to be a wave of business prosperity, but those who looked beneath the
surface knew that serious financial and industrial difficulties were
pending. Federal revenues were declining and a deficit was staring the
government in the face at a time when there was, for several reasons, a
stringency in the gold market. The Treasury gold reserve was already
rapidly diminishing, and Harrison was on the point of selling bonds when
the inauguration of Cleveland saved the day for him. Congress was
deadlocked on the money question, though called in a special session to
grant relief; and Cleveland at length resorted to the sale of bonds
under an act of 1875 to procure gold for the Treasury. The first sale
was made in January, 1894, and the financiers, to pay for the bonds,
drew nearly half of the amount of gold out of the Treasury itself.
The "endless chain" system of selling bonds to get gold for the
Treasury, only to have it drawn out immediately, aroused a great hue and
cry against the financial interests. In November, 1894, a second sale
was made with similar results, and in February, 1895, Cleveland in sheer
desperation called in Mr. J. P. Morgan and arranged for the purchase of
gold at a fixed price by the issue of bonds, with an understanding that
the bankers would do their best to protect the Treasury. To the silver
advocates and the Populists this was the climax of "Cleveland's
iniquitous career of subserviency to Wall Street," for it seemed to show
that the government was powerless before the demands of the financiers.
This criticism forced the administration to throw open the issue of
January 6, 1896, to the public, and the result was decidedly
advantageous to the government--apparently an indictment of Cleveland's
policy. Congress in the meantime did nothing to relieve the
administration.
Public-domain text, read in full here on John Shaqi.
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