A liberal and just Southern policy, the beginning of a genuine reform in the civil service and the resumption of specie payments, are measures which distinguish and glorify President Hayes's administration, but in July, 1877, public attention was diverted from all these by a movement which partook of the nature of a social uprising. The depression following the panic of 1873 had been widespread and severe. The slight revival of business resulting from the Centennial Exposition of 1876 and the consequent large passenger traffic had been succeeded by a reaction in 1877 that brought business men to the verge of despair. Failures of merchants and manufacturers, stoppage of factories, diminished traffic on the railroads, railroad bankruptcies and receiverships, threw a multitude of laborers out of employment; and those fortunate enough to retain their jobs were less steadily employed, and were subject to reductions in wages. The state of railroad transportation was deplorable. The competition of the trunk lines, as the railroads running from Chicago to the seaboard were called, was sharp, and, as there was not business enough for all, the cutting of through freight rates caused such business to be done at an actual loss, while the through passenger transportation afforded little profit. Any freight agent knew the remedy: an increase of freight rates by agreement or through a system of pooling earnings. Agreements were made, but not honestly kept, and, after a breach of faith, the fight was renewed with increased fury. As the railroad managers thought that they could not increase their gross earnings, they resolved on decreasing their expenses, and somewhat hastily and jauntily they announced a reduction of ten per cent in the wages of their employees. This was resisted. Trouble first began on the Baltimore and Ohio Railroad, where the men not only struck against the reduction, but prevented other men from taking their places, and stopped by force the running of trains. The militia of West Virginia was inadequate to cope with the situation, and the governor of that state called on the President for troops, which were sent with a beneficial effect. But the trouble spread to Maryland, and a conflict in Baltimore between the militia and rioters in sympathy with the strikers resulted in a number of killed and wounded. The next day, Saturday, July 21, a riot in Pittsburg caused the most profound sensation in the country since the draft riots of the Civil War. The men on the Pennsylvania and the Pittsburg, Fort Wayne and Chicago railroads, had struck, and all freight traffic was arrested. On this day six hundred and fifty men of the first division of the Pennsylvania national guard at Philadelphia arrived in Pittsburg, and, in the attempt to clear the Twenty-eighth Street crossing, they replied to the missiles thrown at them by the mob with volleys of musketry, killing instantly sixteen of the rioters and wounding many.