The standard works, mentioned under Chapter V, by Dewey, Hepburn and Noyes continue valuable. The attitude of Hayes and of succeeding Presidents is found in J.D. Richardson, _Messages and Papers of the Presidents_; F.W. Taussig, _The Silver Situation in the United States_ (1892), is concise; _Political Science Quarterly_, III, 226, discusses the surplus revenue; _Quarterly Journal of Economics_, III, 436, on the direct tax; W.H. Glasson, _Federal Military Pensions_, has already been mentioned. W.J. Lauck, _Causes of the Panic of 1893_ (1907), lays the blame for the industrial distress of 1893 wholly on the silver law of 1890. On the gold reserve, consult Grover Cleveland, _Presidential Problems_; D.R. Dewey, _National Problems_ (1907); _Political Science Quarterly_, X, 573; and _Quarterly Journal of Economics_, XIII, 204. "The Silver Debate of 1890," in _Journal of Political Economy_, I, 535, contains a detailed account of the discussion in Congress. W.J. Bryan, _First Battle_ (1897), should be consulted. * * * * * [1] According to the principle known as Gresham's law, bad money tends to drive out good; or overvalued money to drive out undervalued money. If the face value of a coin is more than its worth as bullion, it is "overvalued." Thus, if coins of equal face value, but of different bullion value, circulate side by side, there will be a tendency for the possessors of the coins to pass on the currency with the smaller bullion value and to withdraw the others for sale as bullion and for use in the arts. [2] Above, p. 164. [3] Above, pp. 238-240. [4] The law remained in force about three years. During that interval nearly $156,000,000 worth of silver bullion was purchased with the new treasury notes. The government began retiring these notes in 1900. [5] The call for the extra session, together with news of the suspension of free-coinage in India, sent the bullion price of silver down twenty-one cents per ounce in two weeks. The President was seriously handicapped at this time by a cancerous growth in the jaw, necessitating an operation, news of which was withheld from the public for fear of its ill effect on the financial situation. Cf. _Saturday Evening Post_, 22 Sept., 1917. [6] Above, p. 274. CHAPTER XVI 1896