Autobiography of Andrew Dickson White — Volume 1

by Andrew Dickson White

Somewhat later I again met him in Paris, had several walks and talks with him in which he discussed American affairs, and I remember that he dwelt with especial admiration, and even affection, upon his colleagues Sherman and Sheridan.

I trust that it may not be considered out of place if, in this retrospect, which is intended, first of all, for my children and grandchildren, I state that a personal fact, which was known to many from other sources, was confirmed to me in one of these conversations: General Grant informing me, as he had previously informed my wife, that he had fully purposed to name me as Secretary of State had Mr. Fish carried out his intention of resigning. When he told me this, my answer was that I considered it a very fortunate escape for us both; that my training had not fitted me for such duties; that my experience in the diplomatic service had then been slight; that I had no proper training as a lawyer; that my knowledge of international law was derived far more from the reading of books than from its application; and that I doubted my physical ability to bear the pressure for patronage which converged upon the head of the President's cabinet.

In the Washington of those days my memory also recalls vividly a dinner with Senator Conkling at which I met a number of interesting men, and among them Governor Seymour, who had been the candidate opposed to Grant during his first presidential campaign; Senator Anthony, Senator Edmunds, the former Vice-President Mr. Hamlin, Senator Carpenter, and others. Many good stories were told, and one amused me especially, as it was given with admirable mimicry by Senator Carpenter. He described an old friend of his, a lawyer, who, coming before one of the higher courts with a very doubtful case, began his plea as follows: ``May it please the court, there is only one point in this case favorable to my client, but that, may it please the court, is a chink in the common law which has been worn smooth by the multitude of scoundrels who have escaped through it.''

During the year 1878 I was sent as an honorary commissioner from the State of New York to the Paris Exposition, and shall give a more full account of this period in another chapter. Suffice it that, having on my return prepared my official report on the provision for political education made by the different governments of Europe, I became more absorbed than ever in university affairs, keeping aloof as much as possible from politics. But in the political campaign of 1878 I could not but be interested. It was different from any other that I had known, for the ``Greenback Craze'' bloomed out as never before and seemed likely to poison the whole country. Great hardships had arisen from the fact that debts which had been made under a depreciated currency had to be paid in money of greater value. Men who, in what were known as ``flush times,'' had bought farms, paid down half the price, and mortgaged them for the other half, found now, when their mortgages became due, that they could not sell the property for enough to cover the lien upon it. Besides this, the great army of speculators throughout the country found the constant depreciation of prices bringing them to bankruptcy. In the cry for more greenbacks,— that is, for continued issues of paper money,— demagogism undoubtedly had a large part; but there were many excellent men who were influenced by it, and among them Peter Cooper of New York, founder of the great institution which bears his name, one of the purest and best men I have ever known.

This cry for more currency was echoed from one end of the country to the other. In various States, and especially in Ohio, it seemed to carry everything before it, nearly all the public men of note, including nearly all the leading Democrats and very many of the foremost Republicans, bowing down to it, the main exceptions being John Sherman and Garfield.

In central New York the mania seemed, early in the summer, to take strong hold. In Syracuse John Wieting, an amazingly fluent speaker with much popular humor, who had never before shown any interest in politics, took the stump for an unlimited issue of government paper currency, received the nomination to Congress from the Democrats and sundry independent organizations, and for a time seemed to carry everything before him. A similar state of things prevailed at Ithaca and the region round about Cayuga Lake. Two or three people much respected in the community came out for this doctrine, and, having a press under their control, their influence seemed likely to be serious. Managers of the Republican organization in the State seemed at first apathetic; but at last they became alarmed and sent two speakers through these disaffected districts—only two, but each, in his way, a master. The first of them, in order of time, was Senator Roscoe Conkling, and he took as his subject the National Banking System. This had been for a considerable time one of the objects of special attack by uneasy and unsuccessful people throughout the entire country. As a matter of fact, the national banking system, created during the Civil War by Secretary Chase and his advisers, was one of the most admirable expedients ever devised in any country. Up to the time of its establishment the whole country had suffered enormously from the wretched currency supplied from the State banks. Even in those States where the greatest precaution was taken to insure its redemption all of it was, in time of crisis or panic, fluctuating and much of it worthless. But in other States the case was even worse. I can recall perfectly that through my boyhood and young manhood every merchant and shopkeeper kept on his table what was called a ``bank-note detector,'' which, when any money was tendered him, he was obliged to consult in order to know, first, whether the bill was a counterfeit, as it frequently was; secondly, whether it was on a solvent bank; and thirdly, if good, what discount should be deducted from the face of it. Under this system bank-notes varied in value from week to week, and even from day to day, with the result that all buying and selling became a sort of gambling.

When, then, Mr. Chase established the new system of national banks so based that every bill-holder had security for the entire amount which his note represented, so controlled that a bill issued from any little bank in the remotest State, or even in the remotest corner of a Territory, was equal to one issued by the richest bank in Wall Street, so engraved that counterfeiting was practically impossible, there was an immense gain to every man, woman, and child in the country.

To appreciate this gain one must have had experience of the older system. I remember well the panic of 1857, which arose while I was traveling in eastern and northern New England, and that, arriving in the city of Salem, Massachusetts, having tendered, in payment of my hotel bill, notes issued by a leading New York city bank, guaranteed under what was known as the ``Safety Fund System,'' they were refused. The result was that I had to leave my wife at the hotel, go to Boston, and there manage to get Massachusetts money.

But this was far short of the worst. Professor Roberts of Cornell University once told me that, having in those days collected a considerable debt in one of the Western States, he found the currency so worthless that he attempted to secure New York funds, but that the rate of exchange was so enormous that, as the only way of saving anything, he bought a large quantity of cheap clothing, shipped it to the East, and sold it for what it would bring.

As to the way in which the older banking operations were carried on in some of the Western States, Governor Felch of Michigan once gave me some of his experiences as a bank examiner, and one of them especially amused me. He said that he and a brother examiner made an excursion through the State in a sleigh with a pair of good horses in order to inspect the various banks established in remote villages and hamlets which had the power of issuing currency based upon the specie contained in their vaults. After visiting a few of these, and finding that each had the amount of specie required by law, the examiners began to note a curious similarity between the specie packages in these different banks, and before long their attention was drawn to another curious fact, which was that wherever they went they were preceded by a sleigh drawn by especially fleet horses. On making a careful examination, they found that this sleigh bore from bank to bank a number of kegs of specie sufficient to enable each bank in its turn to show the examiners a temporary basis in hard money for its output of paper.