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
None of the disasters prophesied by the gold advocates followed the
enactment of the Bland-Allison bill, but no one was satisfied with it.
The value of silver as compared with gold steadily declined, until the
ratio was twenty-two to one in 1887. The silver party claimed that the
trouble was not with silver, but that the appreciation of gold had been
largely induced by the government's discriminating policy. The gold
party pointed to the millions of silver dollars coined and unissued
filling the mints and storage vaults to bursting, all for the benefit of
the silver mine owners. The retort of the silver party was a law issuing
silver certificates in denominations of one, two, and five dollars, in
1886. This was supplemented four years later by the Sherman silver
purchase act of 1890 (repealed in 1893), which provided for the purchase
of 4,500,000 ounces of silver monthly and the issue of notes on that
basis redeemable in gold or silver at the discretion of the Treasury.
Congress took occasion to declare also that it was the intention of the
United States to maintain the two metals on a parity--a vague phrase
which was widely used by both parties to conciliate all factions.
Neither the Republicans nor the Democrats were as yet ready for a
straight party fight on the silver issue.
_Tariff Legislation_
At the opening of Hayes' administration the Civil War tariff was still
in force. It is true, there had been some slight reduction in 1872, but
this was offset by increases three years later. During the two decades
following, there was much political controversy over protection, as we
have seen, and there were three important revisions of the protective
system: in 1883 on the initiation of the Senate, in 1890 when the
McKinley bill was passed, and in 1894 when the Wilson bill was enacted
under Democratic auspices.
The first of these revisions was induced largely by the growing surplus
in the Federal Treasury and the inability of Congress to dispose of it,
even by the most extravagant appropriations. In 1882, the surplus rose
to the startling figure of $145,000,000, and a tariff commission was
appointed to consider, among other things, some method of cutting down
the revenues by a revision of duties. This commission reported a revised
schedule of rates providing for considerable reductions, but still on a
highly protective basis. The House at that time was Republican, and the
Senate was equally divided, with two independents holding the balance of
power. The upper house took the lead in the revision and escaped the
constitutional provision requiring the initiation of revenue bills in
the lower house by tacking their measure to a bill which the House had
passed at the preceding session.
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