The United States Since the Civil WarLingley, Charles Ramsdell
History
The United States Since the Civil War
Lingley, Charles Ramsdell
United States -- History -- 1865-1921
As effective as new expenditure was the McKinley tariff act of 1890,
the details of which from the point of view of tariff history have
already been noted.[3] The extremely high rates levied under that
legislation caused a slight reduction in customs revenue in 1891 and a
sharp decline in 1892. Moreover the coincidence of instability in the
currency system, business depression and the relatively high
Wilson-Gorman tariff schedules of 1894 continued the decline of income
from customs during the middle nineties.
In the meantime the silver agitation, which had been somewhat repressed
by the well-known attitude of Cleveland during his first administration
revived with increased vigor. The election of 1888, it will be
remembered, had turned wholly on the tariff and had been a victory for
the Republicans. The western states had almost uniformly supported
Harrison in the election and during 1889 four more were admitted to the
Union. Their representatives in Congress were mainly silver advocates.
In his first message to Congress the President declared that the evil
anticipations which had accompanied the use of the silver dollar had
not been realized but he feared nevertheless that either free coinage
or any "considerable increase" of the present rate of coinage would be
"disastrous" and "discreditable." He announced that a plan would be
presented by the Secretary of the Treasury, to which he had been able
to give only a hasty examination. The scheme for expanding the silver
coinage which the Secretary, William Windom, presented was not
acceptable to Congress, but the result of the agitation was the law
generally known as the Sherman silver purchase act, which was passed on
July 14, 1890. It directed the secretary of the treasury to purchase
4,500,000 ounces of silver bullion per month and to issue in payment
"Treasury notes of the United States." These notes were legal tender
for all debts and were receivable for customs and all public dues.
Further, the secretary was directed to redeem the notes in gold or
silver at his discretion, "it being the established policy of the
United States to maintain the two metals on a parity with each other."
[Illustration:
Total Silver Coinage, 1873-1894, in millions of dollars]
Public-domain text, read in full here on John Shaqi.
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