History of the United States, Volume 5Andrews, Elisha Benjamin
History
History of the United States, Volume 5
Andrews, Elisha Benjamin
United States -- History
In the special session beginning August 7, 1893, a Democratic Congress
met under a Democratic President for the first time since 1859. The
results were disappointing. Divided, leaderless, in large part at bitter
variance with the Administration, the Democrats trooped to their
overthrow two years later.
During his second Administration Mr. Cleveland considerably extended the
merit system in the civil service. Candidates for consulships were
subjected to (non-competitive) examination. Public opinion commended
these moves, as it did the President's prompt signing of the
Anti-Lottery Bill, introduced in Congress when it was learned that the
expatriated Louisiana Lottery from its seat under Honduras jurisdiction
was operating in the United States through the express companies. The
bill prohibiting this abuse was passed at three in the morning on the
last day of the Congressional session, and received the President's
signature barely five minutes before the Congress expired.
[Illustration: Cleveland seated at a cluttered desk.]
Grover Cleveland.
From a photograph by Alexander Black.
At the opening of the Special Session, in August, 1893, the President
demanded the repeal of that clause in the Sherman law of 1890 requiring
the Government to make heavy monthly purchases of silver. The suspension
in India of the free coinage of silver the preceding June had
precipitated a disastrous monetary panic in the United States. Gold was
hoarded and exported, vast sums being drained from the Treasury. Credits
were refused, values shrivelled, business was palsied, labor idle. It
was this situation which led the President to convoke Congress in
special session.
Though achieving the repeal on November 1st, after Congressional
wrangles especially long and bitter in the Senate, President Cleveland,
pursuing the policy of paying gold for all greenbacks presented at the
Treasury, was unable, even by the sale of $50,000,000 in bonds, to keep
the Treasury gold reserve up to the $100,000,000 figure. Both old
greenbacks and Sherman law greenbacks, being redeemed in gold, reissued
and again redeemed, were used by exchangers like an endless chain pump
to pump the Treasury dry. In February, 1895, the reserve stood at the
low figure of $41,340,181. None knew when the country might be forced to
a silver basis. In consequence, business revived but slightly, if at
all, after the repeal.
Public-domain text, read in full here on John Shaqi.
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